>> welcome to "bloomberg west." is european central bank reportedly preparing a broad-based quantitative easing package for introduction next month. draghimes after mario said he will assess the need for further economic stimulus early next year. ecb staff and the relevant euro system committees have stepped up the technical preparations for further measures. which could, if needed, bl

lamented in a timely manner -- be implemented in a timely manner. >> european stocks lower but the euro higher. uber has raised $1.2 billion in additional funding. at aompany is now valued whopping $40 billion. it will use the money to expand in the asia-pacific region. it has hired goldman sachs to sell more than $1 billion of convertible debt to the banks will management clients. -- wealth management clients. it is auction day for bitcoin believers. the federal government will sell 50,000 bitcoins today. was seized currency from the silk road. 30,000 were brought in june by ken draper. building again. watch up and present huggies,

amazon is launching its own line of diapers and baby wipes and radio program called amazon elements. elements will only be available to amazon prime members. amazon says the products are transparent and will display detailed information on ingredients. facebook ceo mark zuckerberg wants to bring internet to the masses, from overcrowded towns in africa to the remotest part of the globe. i spoke with zuckerberg about his efforts to connect the world beyond facebook. it turns out that the biggest hurdle actually isn't either technical or affordability and interesting social jones were the majority people aren't connected are actually not in the range of a network and can't afford it. and don't know why they would want to use internet. it makes sense.

if you grew up and you never had a computer and you never used the internet and someone asked you if you wanted to buy a data plan, your response would be what is a data plan and why would i want to use this? >> facebook is a for-profit company. why call it.org? focused were primarily on profits, the most reasonable thing for us to do would be to really just focus on the first billion people who are using our product. the world doesn't set up equally. the first billion people using facebook have way more money than the rest of the world combined. from a business perspective, it doesn't make a huge amount of sense for us to put the emphasis in this that we are now. the reason why we are doing it is we're here to connect to the world and we take that really seriously. and to some degree, you can't really do that if two thirds of the world doesn't have access to the internet. -- over theterm long-term, think he can begin our company if you look at a 2030-your time horizon.

20 to-year time horizon. 30-year time horizon. have an interview with michael dell who tells us about the future of the cloud and what he thinks of dell's competitors. ♪

year sinceeen over a michael dell's bid was approved. the deal not only made some a lot of money, but the business

itself has rebounded. michael dell said down with erik schatzker in an exclusive interview. eric started by asking about increasing competition in the cloud. >> you have to have a very efficient supply chain. you have to be relentless on cost. it's an operational excellence business for sure. and you've got to keep moving up the food chain in terms of value and services.re >> you feel prepared for it. >> we are doing well. we have had a great year. we are absolutely energized to do that. we bought 40 companies in the last five or six years. we added german ip. we have the 15th largest software in the world. grew over 20% last quarter. so we are off and running. >> microsoft has been a good partner of yours and of hp over the years. azuref they move their

business to nonbranded boxes? will we see is the model is conventional wisdom. the public cloud grows and everything else shrinks. -- something a little different is happening. people want the benefits of the cloud. what is it? it's software that allows you to get better utilization over the sheer pool of resources. what is actually happening is you are starting to see a new in thesesoftware private data centers that is making them much more efficient. that efficiency over time is approaching the efficiency of the public cloud. if you go out there and you talk 500-person,, 1000-person, and you say, hey, what do you like about the cloud?

well, i like the efficiency and the cost. what don't you like? i am worried about security. i am worried about my data being stolen and the risk associated to that. so we are seeing real growth in the private cloud. and you are seeing a lot of energy being applied by microsoft and vmware, red hat, a number of new companies. >> private enterprises to do the public cloudgs the offers. >> exactly. >> these; all trends. if you look into the future, what do you see as they must disruptive technologies, the things that will change our lives as consumers, the things that are going to change the course of history for companies? silk and costs coming down dramatically. costsve got silicon

coming down dramatically. kinds ofnabling all new business model disruption beyond technology disruption. if you think about uber and airbnb. asy are not technology business model disruptions. >> at low cost. >> that is going to continue and only accelerate. and then of course, as you have -- you go from a billion to a trillion devices, you have enormous amounts of data. that data has to be analyzed and interpreted and let's do something with it and then you can enhance all kinds of businesses for better outcomes. not just businesses, but health care, education, the environment, energy, etc. there is just an enormous amount of opportunity in our sector and much moreing

important. it used to be just a big companies, very expensive. now it is every company can't do anything without technology. small businesses, they are able to go global much more rapidly. expanding pretty significantly in our sector. there are only about 10 companies on the planet that have more than 1% of this $3 trillion market. we happen to have 2% of it. 4%. like to have 3% or we will keep working on it. >> that was eric shocks to -- erik schatzker with michael dell. from apple into google search, silicon valley has taken a central role in innovation. but is it responsible for the most innovative product in history? you can watch us streaming on your phone, apple tv and amazon fire tv. ♪

in december 1940 seven, researchers at bell labs invented the transistor, the critical first step for the creation of the microchip. the forward 67 years in rest is history. still, the most disruptive idea. bloomberg businessweek is celebrating its 85th anniversary this week with a list of the 85 must disruptive ideas in our history. mesh on us are and give us the big highlights.

>> when we started working on this issue, which is about a year ago, we wanted to highlight ideas obviously that have changed the business landscape but also innovations that have changed the way ordinary people leave their lives. -- lead their lives. a lot of the technical innovations that we highlight are in many cases have become large multibillion-dollar public companies. but we really thought that the things that have been most disruptive and most influential are those things that have truly changed the way people organize their lives and in some ways have made their lives better. this list.ove it reminds me of all these things that we sometimes take for granted, like the birth control pill -- said the guy to another guy. i think it has changed the world around us injure medical ways been i like the way you dredged up some stories from the past, like the company that invested -- that invented powerpoint. issomething like powerpoint

an idea that no one really knew would have the kind of impact that it even shall he came to have. designed andally only often on macintosh and microsoft. purchased it and then it's ugly became they go to application in just about any business meeting you ever sat through. would you point out that a lot of these ideas that are not powerpoint necessarily, but a lot of these ideas are not necessarily things that everybody feels have been the greatest -- added the greatest benefits to their lives. but they nevertheless changed the way business operates and changed the way society works and that is why they are highlighted here. >> way through this word ,nnovation around ridiculously probably in the show in particular. but when we cover silicon valley, we cover innovation so much.

if you saw things that were truly innovative in their day and then look at things today and say, you know what, that is not innovative. >> there are a lot of things that we consider being on this list that follows exactly in that category. things that we pay period of time were important and widely used but then something else came along and replaced them. >> community. >> one thing we talked about was the fact machine. the fact machine was in some ways a very early form of social machine was inx some ways a very early form of social media. time, it was, over overtaken by other technologies and ultimately replaced. >> talk about some of the up and comers on the list, some companies that we should be watching for future narration. -- future innovation. >> we have some very young company's on this list.

it is hard to believe but companies like facebook and twitter are not that old compared to some of the other ideas that populate our list. we believe that sharing economy broadly speaking is in and of itself a highly wrist -- highly destructive idea. idea.highly disruptive we have a graphic that shows you how many different wage you can take advantage of companies and websites that are offering sharing opportunities and allowing people to monetize themselves in many ways. obviously, that is a huge new innovation, something that will be creating a lot of value over the next decade, century when welly, and maybe come back 85 years from now, we will see some of those companies on the list. >> what made the list that was the biggest fight within the hallways of business week with disagreement and angst and hair pulling? had a hugew that we

amount of disagreement. >> oh, come on. i know you people. [laughter] >> i think there was some dispute about the whole notion of ranking these ideas, which we decided to do only a couple of months ago. we had a list of 85 that was more or less set. but we decided, you know what, let's make people mad and actually rank these things 85 to one. number oneided the item would be the jet engine, which i guess i can disclose as the number one item on our list, i think there were some people who obviously thought there were other ideas that would be more important. the manhattan project, the birth control pill, as you mentioned, but we fill that they jet engine is this and will thing that made the willie better place. that is the dominant theme of the last 50 to 75 years, globalization and the growing integration of the world. and the jet engine, by

facilitating transportation, by bringing people together, allowing people to see parts of the world they could not have seen frankly 75 years ago, that is why we thought it was the most important, the most disruptive idea of the last 75 years. >> all right, thanks so much for joining us. issue is on stands. >> they skipped the velcro. [laughter] >> we have spoken with top innovators in technology, media, entertainment. tonight, i took with the john chen, technologies go to fix her. he is famously known for sky base.g now he is taking on blackberry. why did he take on the challenge? i asked him. people are telling you that blackberry is already dead.

>> yes. chrysler did you take this job? -- >> why did you take this job? >> that is a great question. in this reason about being iconic in the industry and it's a great company and has a lot of technology therefore i think there is a lot of potential. all of that is true. but that does not automatically answer the question why am i doing it. i started as the chairman of the company. the team ando find formulate a strategy. i thought i was too old and -- too old to travel around the world anti-cowboy then. i found that it is hard to just guide without just a doing. and we don't have a lot of time to find a team and think about the strategy. we just kind of have to get it done. indifferent, i

decided to become the ceo. >> so you are not crazy. >> i think there is a lot of good potential. it is not a done done deal. but i think we have done a lot of progress in the last six months. >> is it part of your personality? do you like to feel needed to fix things? >> i am a little paranoid about not being needed and wanted. [laughter] it is important to -- what i do every day, i know that it means something to people. >> history has been cruel to phone makers. pa -- gnocchi a -- motorola, palm. don't sit there and think i can make another really great fun and everything will be well. >> but you did vow to keep making found spirit >> of course. this is part of our strategy of

computing.obile >> have you ever had a single moment where you thought what did i get myself into? >> twice. [laughter] after the first 30 iys, i said to myself, like, am running against time on some new things. but then i did not dwell on it for too long. i started to put it in together and recruited a team and said, ok, just do one thing at a time or don't try to fix everything at once. i can feel when i am kind of like -- when my mind thought, you know, not very focused. i can feel it. right now, i am quite at ease with the plans we are working on. not miss more of my interview with john chen tonight at 8:30 p.m. eastern and pacific

." "studio 1.0 up next, nasa's next giant leap took a step back today. we discussed the goes of the all right mission and whether we could soon see humans on mars. >> it is to be six minutes after the hour which means bloomberg tv is on the markets. markets are doing much right now. the s&p 500 is literally unchanged. than 1%.tly off i less europe, mario draghi saying he will wait until early 2015 to reassess what stimulus measures he might move forward with. theaw european stocks drop most in seven weeks. the u.s. measures is really on the jobs report due tomorrow at 8:00 a.m. nine guess shares are by the most in three

months. the currentook for quarter fell short. shares down by 9% are now. in the meantime, more "bloomberg west" with emily chang and cory johnson.

>> "bloomberg west you are watching'where we focus on innovation, technology, and the future of innovation. of the orionlight spacecraft is scrapped for today but will try again tomorrow. the mission is to launch an unmanned caps on 3600 miles above earth and see if it can withstand the kind of extreme heat we expect to see if we hope to send humans to mars. at a cost of $370 million, there is a lot riding on tomorrow's flight. joining me now is the former nasa deputy administrator.

lori, you have spoken out against the funding of this project. why is that? has beenw is that nasa doing and is doing so many tremendous things over its history. we just talked about the jet engine. i would add to that the satellite. we also did apollo. i think this program focuses too much of their resources on a not reallyt does provide that broad benefit. if it goes forward, they are spending $60 billion that would get you a vehicle farther from earth, granted, then we have gone since apollo, but that was 50 years ago. nowre doing is commercially and we are spending $3 billion to get people to this day station using a private sector. a why would we be setting technology in place today and using engines that are already 40 years old to go on a trip to

mars that is 20 years away and we do not have any of the resources to fulfill that over that period of time? i think it is a mismatch of resources with the important overall work of nasa. >> they say this is a step toward landing on mars. how significant do you think it is? is that an incorrect characterization? >> i think it is. they say it is the first step to mars. we have rovers on mars, we have a space tatian wrote we are learning how to live and work in space to get us farther. this is a test of flight that , no go for four hours farther than satellites that we locked all the time, commercial rockets that we have launched, and testing a heat shield which is likely not to be used in 20 years when we go to mars. to think that technology of a heat shield would not advance in 20 years is not reality-based.

i understand that selects to launch things, this is something the contractors and politicians who sold this mission to the congress have decided they would like to proceed with, but it is not something that in my view is the best use of resources. >> you make it sound like boys and their toys. what is it about launches that private contractors like so much? >> these are dollars. this rocket contract was a couple hundred million dollars. these are taxpayer dollars. it is a bit like instead of focusing on the purpose, we focus on contract. that is a government program and inertia is extremely strong. >> especially in space. it seems to be holding true on earth as well. >> here in silicon valley, there benefitsnd of the side

of the space program, the other inventions that have been concurrent with the space program. i have always done this to be a little specious. the dollar amounts just spent on creating those things. is there a difference in this kind of technology for this program that you think will not benefit private industry and innovation at large? atof course, dollars spent nasa benefit the private sector and advance innovation, it's a question of balance and how much and where the emphasis. technologyt of this is older technology that we are piecing together to try to relive the glory days of apollo at a time when it is quite different. i agree with you, we should be investing in benefits primarily, things like the jet engine and the satellite were not spinoffs. they were what we chose to invest in. what are things that we can invest in today?

optical communications, technologies that will help to lower the cost and operation cost of traveling to space so more people can experience it. those are the things that i think will be more lasting. that should be the focus of nasa today. time, you have private companies in an aggressive race to space. elon musk and spacex. origin.os and blue richard branson and virgin galactic. should nasa and the in competition with these companies, partnering with these companies as they are in some cases? how does the country maintain its edge? >> this is a really important goal of the space program that i believe we are working to focus more on and we are partnering with some of those companies. that is where the excitement is, in my view. you leverage the government investment technology and allow the industry to innovate. that is how the jet engine when

and how the satellites have gone and launch vehicles as well. human spaceflight is that next that the space travel private sector wants to get in. there is no way nasa should try to compete with them, which is somewhat difficult for them. if we had this much excitement those commercial launches, the public would understand all the great things we are doing in space. nasa's pr to see machine do so well and talk about this as a flight that will eventually go to mars, but they do so many other things that we could be connecting with the public on in more ways. former deputy administrator at nasa, lori garver, thank you for being with us. we will be watching and continue to cover the race to space. twitter ceo dick costolo is selling off more of his shares

in his family trust. the third major sale in a month. what does it say about twitter's business, if anything? ♪

>> i'm emily chang. this is "bloomberg west." family trust belonging to twitter ceo dick costolo and his wife continued to unload shares. they sold off half of the remaining stake in twitter, selling 140,000 shares, this after they sold off 283,000 last month. so what does this mean? cory johnson has more. she would be concerned or curious about it? >> i am certainly curious. on the one hand, a pernicious side of you says, here is somebody telling you to buy shares in the company but he has

unloaded 75% of his stock in the last four weeks. that looks worrisome if you are a shareholder, perhaps. although there are lots of reasons to sell, only one to buy. >> mark zuckerberg cells facebook shares, marc benioff selling salesforce shares. they save for tax reasons. in the case of benioff, he is selling off a lot of stock he owns to make money with it, diversifying, but clearly taking some of his bets off of the sales force number. >> so why is dick costolo doing this? wouldre pernicious you say that it is because he does not believe in twitter. >> first off, i think he needs a new phone. we got a picture from him yesterday and the picture was pretty grainy. he is engaged, indeed. i think he is selling the stock that he owns but he has a vast

number of shares in the company in the form of options that he hasn't exercised. in terms of the percentage of the overall stake of the company, while he has sold 75 percent of his exercised shares, he has millions of options that he has not used. >> does this make him one of the biggest non-founder sellers in recent history? >> we had a guest on yesterday and they pull together some numbers about some of the big sellers of non-founders selling shares in the last year. there are some big names. sheryl sandberg, thomas kurian. seagate.zco at there has been some really big shareholdings of non-founders of other companies. what dick costolo does pales in comparison. >> twitter has been under a lot

of pressure lately, highly scrutinized about product issues, costello's leadership himself. widely differing opinions on how well twitter is doing. why is he doing this now? >> it is such a small amount it is overall holdings of the company it is not significant. you can also look at the stock and say it is very expensive, maybe take a little bit off the table. having been there, being a part of a company that went public, i owned shares, the company valued at over a billion dollars. by the time that i sold it, only worth a couple of million. >> so no big deal? >> probably not. these other companies, it is something to watch when you have 80 insiders selling when the company is not making money. i'm not sure that is the case here. >> we spoke with this tone, who expressed the -- biz stone, who

expressed the utmost confidence in him, so let's take it for what it's worth. cory.you, is coming out of the top of the hour. mark has a preview. itsongress has a lot on agenda, at the top of the list, avoiding a government shutdown. will anything get done with republicans in control of both houses? maya mcguiness will be joining me. >> thank you so much. need a loan? you are in luck. startups are taking on the challenge of consumer loans with new frictionless models to rival big banks. more on lending alternatives and what future think about next. ♪

>> this is "bloomberg west." i'm emily chang. peer to peer an online lending is growing as traditional banks remain tight. with a number of companies trying to get into online lending, is there enough interest to go around? we are back with cory johnson. take it away. >> there is this thing called lending that banks use to do. providing consumers with capital, but consumer loans from banks, since 2008, have really fallen by the wayside. so stepping in our silicon valley startups. joining me now from chicago is the avant credit ceo. tell me how your business works, what businesses -- problems are you trying to solve? me on.k you for having but we are doing is simple, the lower the cost to borrow money and reduce the friction in the process by creating a digital

bank that will solve their unique financial needs. >> the investors you have lined up are pretty amazing. tiger global, peter thiel, kkr. talk about what it is about your powerpoint deck that is so awesome? >> honestly, it's been a great run. our company is only two years old. we are nearing our two year anniversary on new year's eve. we have had great investors starting with august capital, tiger leading the last two rounds. we have had great support from peter thiel, kkr, etc. their belief in the future of revolutionizing the consumer banking industry is what is working. we have assembled a great team and we have executed. >> explained how the business works, what you do for consumers, how does it work on the backend? >> it is pretty simple.

we have a personal loan product that is unsecured. we allow consumers to spend a couple of minutes on the website to submit a simple application. in real time, we will give them a response that says if they are approved or declined. they can get funds the next is the state. over the long-term, we hope to continue to build the business in new products and markets to serve the customer needs. >> how big are the loans typically? >> on average $5,000, but we will lend up to $20,000. rates start at 19% and the goal is to use advanced analytics and technology. >> 19%? >> i don't know if that sounds high or not but that is actually lower than many credit card rates. >> i saw peter thiel earlier this week and he was talking about a lot of companies like yours, going after this notion of going over banks.

he had this interesting idea when talking about this type of investment -- he said if it sounds like another investment or software service, energy of whatr, another uber ever, it is probably not that original. so what is it about your business that is so whereentally different, peter thiel would invest in a company that is doing consumer lending? what's different about your business? >> what we are doing is a little different than the other peer to peer companies you have talked about. we are lending directly to consumers. we are focused on creating the customer experience that is best for them. things like allowing customers to be approved in real time or to get on the next business day just to not exist in the market today. using what we think is the best analytical models in the universe -- in the lending universe today, i think we have done a good job of creating

products that are unique. are the longer term, we going to be the big winners in this category. >> by most accounts you have a rising economy, things getting better. warren buffett always said that you can see who is swimming naked when the tide goes out. how can you test when that will be and how you will fare when things get bad again? >> that's a great question. we are really focused on our credit and underwriting looking at risk from a longer-term standpoint. we are a direct lender and not necessarily a peer marketplace, although that is part of our long-term strategy. we are focused on long-term performance, so i think we will continue to improve. time will tell. usage of loans, what is the principal usage you expect to see? >> our customers use loans for a bride of reasons. consolidate of them

other debt that is either more sensitive or less flexible or has some sort of fees. our products do not have any fees. the other half takes care of life events, which are pretty diversified. >> i have had a few myself. in terms of the questionnaire you use, is there a magic question, something that you think illustrates or that you know illustrates risk better than other questions typically asked? >> i think when you're talking about is metadata, which we use, as far as things like how a customer fills out a certain question. really we are focused on a wide variety of data sources. our credit models have hundreds of factors that help us to predict longer-term performance. the goal is to get as good as we can at predicting the performance. therefore passing on savings to the customer. >> what is the weirdest one? >> in the u.s., it is all about their lending.

a lot of the weird ones you cannot use. things like what time of day you submit your application, how you typed it in, whether it is all caps, are things that people have talked about. >> interesting stuff. thank you very much. >> thank you for having me. byte is time for the bwest . one number that tells us a whole lot. what do you have today? >> how about $175 million? that is the amount microsoft lost in its nook deal with barnes & noble. to company's buyback comes about $125 million. about $175 million or that adventure with the nook. >> we continue to see these black eyes on microsoft's record. bigere talking about the

job they have ahead of them and how they have missed so many of the great advances in technology over the last 10 years. at some point, do these add up? this is moref about them realizing the surface is working for them in ways that they wanted it to work and the nook was a way to hedge their bets. had a rough start but seems to be doing better now. maybe they think they do not need to be in the nook business. willing toble were pay them something, so maybe it was time to get out. >> the tablet market is suffering. how big of a role can the surface play in that? >> because the launch of the tablet was so big and so fast, some of the best use cases we probably cannot imagine yet, but we will start to see them soon. johnson, thank you. thank you all for watching this edition of "bloomberg west."

see you later. ♪

>> from bloomberg world headquarters in new york, i"m mark crumpton. this is "bottom line." to our viewers in the u.s. and those of you around the world, welcome. we have full coverage of the stocks and stories making headlines this thursday. olivia sterns monitors a mixed picture in equities after comments from the european central bank. emily chang has highlights of her exclusive interview with facebook ceo mark zuckerberg.