>> live from pier three in san francisco, welcome to bloomberg west where we cover innovation technology, and the future of business. i'm cory johnson. u.s. stocks rally with the s&p 500 erasing its loss for the year. this is after the european central bank announced a 1.1 trillion euro stimulus program. here is ecb president mario draghi. >> the ecb has done a step further, but it is now up to the governments to implement these reforms. and the more they do, the more

effective will be our monetary policy. >> 60 billion euros worth of bonds every month until 2016 to jumpstart the economy. amazon is beefing up the cloud business again. the e-commerce giant, the deal not closed. it would update the speed and performance of various data centers all over the world. the price tag is $370 million. dreamworks animation has cut 500 jobs. the company has also cut its output to two films a year instead of three. flops like the greats, "mr. peabody & sherman", "turbo". is tom brady a cheater? underinflated footballs, he says no way. >> i didn't alter the ball in

any way. i have a process before every game where i go in and pick the footballs that i want to use for the game. our guys do a good job of breaking the balls in. they have a process that they go through. when i take those footballs out, at that point, to me, they are perfect. i don't want anyone touching the balls after that. i don't want anyone rubbing them, putting air in them, taking air out. to me, those balls are perfect and that is what i expect when i show up on the field. >> earlier, belichick also denied any knowledge of under inflating footballs. now to the lead. a critical time for ebay, laying off 2400 employees, 7% of its workforce.

the market facing intense competition from amazon and beyond. may split into not two but three separate companies. they sold off their enterprise unit not too long ago. carl icahn, he got one of his nominees on the board. mark joins us right now. it's a really interesting quarter from ebay. slowdown was almost as dramatic as success at paypal. 1%? >> there was a heck of a lot of noise out of ebay this quarter. the stock is working off of corporate catalyst because the fundamentals are deteriorating. it's easy to be upfront about it when they are focused on it.

we have seen a spike in deflated footballs for sale on ebay. >> i want to separate the investor interest to what is going on in the business. they are going to cut some cost, may be etf will go up eventually and the paypal spinoff seems more certain. >> nobody on the street brought this up but there is clear competitive risk that is accelerating. amazon and ali baba. those companies are starting to have a material impact on ebay. this was a turnaround story. they led a very successful consumer pivot. >> five years ago, negative sales growth. >> he came in, turned it around. and this year, they hit a wall. our sense is that there were not any more low hanging fruit to pick.

those assets out there international markets like russia, it really started to snow ball and they are having a negative impact. they had a google algorithm change. >> you mentioned this in your wonderful note this morning. what is the relationship with ebay and google? >> ebay, showing up in the paid organic search results. the users that depended on google for a lot of traffic, when they make those tweaks, they view your traffic as lower quality, you will get less traffic. the google machine out there the ultimate arbiter of what good and bad on the internet some of these links were not high-quality.

>> it does not show up anymore because google made that change. can they adjust for that? can they change the way that they are listing or is this permanent damage? >> they may need to start putting money into facebook or twitter or other sites like that. they are going to that process now. they now say it has no real synergy with the rest of the business. >> that was the thing that was so important to them. they have said that they are now willing to strategic options. an outright ipo or sale to a bidder. it's a little bit of a black eye that they bought an asset and now they are selling it. and there is nothing gained or lost.

>> the fulfillment centers, it seems like a way to try to match what amazon is doing. >> that is probably the right point. they are cutting out of other things. ebay now, same day fulfillment. they did these baby steps getting into real fulfillment and realized that is not their core competency. >> keeping it with that business and having a ten-year horizon, ebay has three businesses with a one-year horizon. >> they've also talked about sharpening their focus and investments in a couple areas. they should be focusing more investments, spending more than paypal. and they should be doing whatever they can to turn around the marketplace business.

it's much more competitively challenged than the paypal business. >> are businesses like nancy --etsy also threatening ebay. >> going to the site, it's a massive marketplace business that once would have been an ebay kind of business. >> you get these marketplaces. etsy shows up as a top 10 e-commerce site in terms of traffic. all those are eating away at ebay's market share. >> always appreciated. thank you. this auto company is teaming up with technology companies to try to bring their next generation of cars with cool stuff inside. we will talk to the ford ceo. you can stream us on your phone, tablet, apple tv, or amazon fire

tv. ♪

>> i'm cory johnson and this is bloomberg west. salesforce ceo marc benioff says that companies need to work harder on cyber security. >> for many executives, they realize that cyber security has become an oxymoron. we live in a world where the internet is inherently unreliable. you will have to work harder to get that security to happen. >> a good interview. check out the whole thing.

he says that tech companies should be more philanthropic. they have a history of being cheap and stingy. whether it is self driving cars greater connectivity, or other stuff, automakers are paying more attention to technology. ford hopes to make innovations like economist driving widespread. matt miller spoke to mark fields earlier today and asked why it is so important to find a home in silicon valley. >> this is right for our business. we really want to be viewed as part of the ecosystem here. it just as important as the work that we do, we want to be viewed as part of the neighborhood. this is an area where it is a marketplace of ideas, and ideas come up in coffee shops, at meet ups.

for us to be here, we think it's important for us to drive innovation and drive a lot of progress that we have laid out. >> automakers and the media focus on the autonomous car and when i look around here, it's clear that you are focused on a lot more than just that. >> that's why we call it forward smart mobility. the holistic view includes mobility, vehicles, the connected car. customer experience and how technology will enable that going forward. by taking a holistic view, we can take the view of what is the whole experience. it is also a mobility company. not just an auto company. we want to drive the business forward.

we want to make the world a better place, and in that is there business opportunity? >> you're doing experiments all around the world. as far as different kind of mobility solutions, you are putting sensors on bicycles. and i asked my tour guide, is ford going to make a bicycle? he said electric bikes are very big in asia. is there a time where ford will make products that go beyond mustangs and explorers? >> potentially. potentially.it we will not be getting into the train business or large bus business, but we are thinking about mobility in a more holistic way. it may open opportunities to provide solutions to how they get around from point a to point b. it is very important for us to look at trends and project 15 years out. these cities of 10 million or

more people, we are seeing the trends are on the growth of the middle class around the world, around increased concerns about air quality. for us, we want to ask ourselves if there is a business opportunity beyond just selling more cars and trucks. but what we are doing, we are experimenting. and we will learn. we will succeed in some. some we won't. it will inform us. we wanted to make sure that they are accessible to everyone. >> i noticed a lot of different silicon valley brands in this building as well. you are partnering with people that make smoke alarms. so if i am driving my mustang it will pop up that there is smoke in the upstairs hallway. how key is that, partnering with

other silicon valley producers here? >> partnering is very important that is why we are moving here. as a company, we want to embrace the ideas from others as well as our own ideas. the old adage that you can make one plus one equals three. it's about how do we help customers with their home energy management? if they drive their car away, it will signal to the thermostat that it can lower the heat and reduce their bills. or when they are coming home, it will pop on. having those partnerships are so important because we can learn from each other and we can bring the best ideas together and go forward to serve customers better and provide a business opportunity. >> if i am driving home in my ford vehicle, the nest will know what temperature i have it in my raptor and put that temperature

on the thermostat in my house. >> we want to make lives better for folks. and how do we play a role in that? we are asking engineers and marketers to don't stop at traditional innovation. think broader than that. and think from a customer standpoint and see what happens. >> i noticed you hired a guy from apple. and i think a guy from apple also made the nest. are we going to see some apple type products and or type cars? -- in ford type cars? >> first off, we are hiring aggressively here. when we are done filling up the facility, we will have 125

folks. researchers, scientists, engineers. we will have one of the largest dedicated teams in the valley. we are looking for software engineers, designing. business development folks. i.t. professionals. we are really saying come to ford and not only will you have a great career but you can work on really important things. >> matt miller joins me now from palo alto. interesting stuff. i think about peter lynch's thing, de-horsification. when are they looking into the clouds and taking their eye off the ball? >> it's a question a lot of people asked. they have the majority of their folks in detroit working on cars. this will only be a few hundred people out there. ford has been into this technology thing, into this

future thing for a long time. now that mark is on board, it's a passion of his is well. they don't want to miss the boat going forward. a lot of carmakers are specifically focused on autonomous driving but they are not casting his broader net as ford does. they are doing a lot of experiments. not everything is going to work out. they may hit on something that becomes the one thing we all need in our cars going or word. -- going forward. it makes a lot of sense to me and they are not devoting much of their resources are that you need to worry that they are going to stop producing f150's in detroit. >> in the auto business, is there a thought of one thing that no one realized everyone is going to need and everyone wants now? >> when i think of stuff that i never thought i would need but now i don't think i could live without, i think of that little step in the back of the truck that helps you get up and balance when you are putting stuff in and out of the truck bed. it seems like something i

wouldn't have any use for and now i use it constantly. now they are finding things that have to do with technology. i got nest installed at home and i am changing the temperature every 30 minutes. i will be able to use my car to do that as well. >> you're torturing your dog all the way from palo alto. you know you are the only person in palo alto wearing a tie today? >> i realized that when i got here. but if i not wearing one, i feel like i'm not working and i've given up on life. >> kind of like me. matt miller, thank you very much. bloomberg west will be right back. ♪

>> the annual letter from the bill and melinda gates foundation is out and in it, the

microsoft cofounder says the flight --plight of the world's order will get dramatically better in the next 15 years. erik schatzker in an exclusive interview. >> if you look at the world as a whole, it is less unequal, more equal than in the past. that is because poor countries have had growth rates way above that of the rich countries. the inequality has gone up in almost every country. i think everybody believes in a balance that you should have progressive taxation. if you get wealthier, your consumption, your income, your estate ought to be subject to much higher taxes than, say, the middle class.

i think the u.s. could be more progressive in that. very critical is an equal opportunity in the inner-city schools are really good and the access to health so that it is not holding people back. there is an equal chance to becoming a lawyer, doctor, or becoming a good school. that is about freedom and about developing capacity as opposed to a zero sum transfer. you have fund the things that create that opportunity and taxes are absolutely necessary. it's those two operating together. taxes to fund it. and the execution of that equal opportunity. we don't have equal opportunity. it's what we aspire to as a

country, but education alone is so poor if you grow up in the inner-city compared to the suburbs that we are not being true to our basic credo. >> bloomberg west will be right back after this. ♪

aaron levie has ambition to dominate business to the cloud. he kids who would be his cofounders as far back as middle school. unlike facebook and twitter where early in fighting is