>> a blizzard bearing down on new york city and new england goods no as much as forges an hour. thousands of flights already been canceled as here is new jersey governor chris christie. >> this will be a significant storm. with snowfall today and tomorrow that will create really hazardous conditions, including dangerous conditions on our roadways. so i have declared a state of emergency in new jersey, and authorize the early closing of

government offices at a staggered dismissal of all nonessential state employees beginning at 1:00 p.m. today. >> the storm is expected to hit hardest from midnight to midmorning tomorrow. three feet of snow could fall in some areas. huber -- uber says it will cap prices. this is after the comely was criticized for charging extra high prices during hurricane sandy. and the big new york snowstorm in 2012. they are also donating the proceeds from elevated pricing to american red cross. the obama administration is making big changes in the way medicare pays the doctor and hospital bills. next year, medicare will base 30% on how well health care is provided, quality, not quantity of treatment. the goal is for half of payments to be tied to two quality of care by 2018.

that news is sending hospital stocks lower. technology is causing headaches for another traditional industry, this time, toys. mattel's ceo is out after five straight quarters of sales declined. the maker of barbie and hot wheels has struggled as kids lay more online games rather than international toys. breaking news right new york city mayor bill de blasio is speaking right now about the snow. we want to get to that. >> 11:00 p.m. tonight. we will continue that emergency declaration until the situation is safe. from 11:00 p.m. tonight on, no nonemergency vehicles on the streets, and that will be the policy until we stay -- state otherwise. we need to let sanitation, police fire do their jobs. this is the way will guarantee that. on the way home this evening,

again, the earlier you can leave the better. you can take mass transit, that is a priority to do so. if you are driving, expect tough conditions with each passing hour this evening. go slow, taking a lot of precautions. even walking, be careful, as the storm will intensify very quickly. if you have any evidence if you happen to take, for example, for higher vehicles, if you have any evidence of people taking advantage of this emergency, to unfairly and illegally raise the prices of their rides, it is important to call 311 and reported. price gouging in the context of emergency is illegal. if you experience it, please call 311 and the taxi and limousine commission will investigate right away. amplifying what i said yesterday, i want all new yorkers at the end of this afternoon at 6:00 p.m., to stay out of our parks. we will close the parks at 6:00

p.m., there will be the potential danger of falling tree branches, that could be very dangerous, especially if snow accumulates rapidly. from 6 p.m. on, all parks are closed. as for schools, we are officially announcing school be closed on tuesday. please emphasize to your audiences that schools will be closed tomorrow. in addition, the region's exams that were scheduled for tomorrow will be canceled tomorrow and rescheduled to a time shortly in the future. all afterschool programs this afternoon -- school trips evening adult education, all canceled. alternate side parking is canceled today canceled tomorrow, tuesday, canceled wednesday as well. garbage and recycling pickups will be suspended throughout the snow clearing operations.

today, tomorrow, likely into wednesday as well if not beyond. again, if new yorkers need information need to get more information about help available to them, 311 is the best bet, or go online at nyc.gov. anything life-threatening, that is when you call 911. in terms of the most vulnerable new yorkers, the department of homeless services is looking for those who are homeless who could be brought into safety. if you see someone homeless who is in danger, call 911. if it's an immediate urgent danger, and it's life-threatening -- call 311 if it is typical, if it's life-threatening, call 911. people who have any problems with heat and hot water please report immediately to 311, so we can act on it now. any heat and hot water disruptions, call 311 immediately. as i say every time we face one of these situations, we as new

yorkers can help our fellow new yorkers, our neighbors, by checking in on them particularly if they happen to be senior citizens or disabled. if you have any special need it's important to be there for your neighbors. >> mayor bill de blasio talking about what new yorkers can do as they prepare for this big storm talking about what to do for homeless people, people without heat, as well as interestingly, a callout to the surcharges that uber has had in the past. saying calling 311 if you have any evidence of that. that will be a big story for the entire nation. apple is the number one market china? perhaps. analysts speculate that china overtook iphone sales in the first quarter, that the first full quarter of iphone 6 and six plus sales. we find out tomorrow when apple reports earnings after the ballot. china is becoming increasingly

important for apple. a year into the partnership with the biggest carrier, china mobile, the largest carrier worldwide, just china. they have opened up a new store where huge crowds were drawn. that's just the start. cook said that apple plans to more than double its chinese store count to 40 by the end of 2016. joining us to talk about what this means is been and bob -- be n and bob from tech analysis. i river not too long ago apple saying that -- i remember saying that apple saying they had four stores in china. >> a couple of things about apple with the iphone in china. number one, the chinese market has been very focused on large phones. the iphone 6 in the six plus in particular really triggered this

interest. they are not interested in smaller phones. until apple had an offering, that was one of the big issues. the second thing to remember is that in a lot of the emerging upper middle and upper class they are incredibly brand conscious in china. apple is a luxury brand. you get the combination of this brand affinity as well as a phone in the size they are looking for, it makes perfect sense that the six and six plus are huge hit in china. it didn't surprise me. you showed you how the company is a moving and adjusting to business worldwide. >> there were thoughts that the six plus was launched specifically with china in mind i like the exercise. but the notion that the chinese characters require that come out of the phone is particularly attractive there -- has it played out where that has been the principal focus for the phone? or is it sold well worldwide. ?

>> look around. you and i both use the six a lot of other people use the six plus. i thinks the six plus is done surprisingly well. there were questions early on if they made enough six pluses where did they make enough sixes. we may not ever find out exactly. my gut says the six pluses done very well and lots of places, particularly in china. >> there was speculation that the iphone wouldn't do as well in china because it's not subsidize and it's so much more expensive. we seen the rise of shall mean -- shall mean -- xiaomi. what we know about market share in china? >> xiaomi is up new the top. we have samsung and lenovo. they are just introducing the motorola brand back into china. remember, they just closed motorola. you have a very interesting conflagration of things. the other thing to remember is

china is enormous. there is an enormous number of people in different parts of the country than act very differently. we can't think of it as one homogenous group. the coastal cities have much more money and act more like u.s. consumers as you move inland to different stories. xiaomi being a domestic brand really resonates with people. >> been with creative strategy. if we find out tomorrow that apple and iphone was number one in china, is that good news? and if it wasn't, is that bad news? >> not necessarily. i don't expect to break them out by region. they haven't historically done that. that's where all of us doing estimating coming to look at it. i think the key is it is increasing. it's going to be close, just from the data we saw in retail as well as network analytics. it was really unprecedented, the

things we saw in china. that goes back to bob's point about them wanting bigger devices. we didn't have historical precedent with a four inch phone as to how it was selling, even though we tracked them. we saw significant spikes for the six and six plus. this all talks to the upside for china. if you look at the u.s. market, which is traditionally lot -- the largest for apple, we are reaching saturation with individual ownership over 70% in the u.s.. it is still less than 50% in china. the upside in china is strong. when you look at what apple is doing there, and even things around lenovo and others the market there is so large there's a much market share to be distributed. each player is playing their role. the upside for apple remains to be the largest in the markets. whether it was close, which we think it was, or number one it's going to be at some point in time. apple is being extremely committed to growing their share in that region. it's all

positive signs for them. >> interesting. then -- bible donald -- bob o'donnell, thank you. larry ellison in hot water again. we talk about his pay package next on "bloomberg west." ♪

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>> a small drone crashed into the grounds of the white house, forcing the building to go on lockdown. it has been identified as a quad copter, a commercially available drone with four propellers. the president and first lady are in india, but their daughters were home. the secret service is trying to figure out where it came from as the faa is developing rules for drone flights. larry ellison is the world's seventh richest man, but he is

now under fire from oracle investors for the continuing elaborate pay package. digi g.m. and railway pension trust company wrote a letter in the latest of a for your campaign. they request a meeting of the board of directors, and they have been requesting a meeting with no luck. joining us now is aaron boyd. let me start with you. they have been after this for some time. is this unique among pay packages? and among shareholders demanding pay package changes? >> absolutely. shareholders want to have say in issues like this. you have already seen oracle make some concessions. i think the issue here is these pension funds are not feeling

heard. what they are telling us and the public is that oracle has not been receptive. oracle is not listening, not willing to sit down and talk. i think that would go a really long way towards assuaging their concerns oracle were to agree to a meeting. >> let me ask you, is this an unusual campaign by the shareholders outside of oracle? >> is a campaign we have seen that only a small handful of companies before. i think oracle is a unique company, in that the package they pay has been so consistently high for the last four years is a campaign that in going on quite some time. usually these only last a couple of years, and we see an immediate response from company and shareholders coming to some sort of conclusion. >> to add to that you have the character of larry ellison. there is no one like him.

there is no one who has ever been paid a public company like him. >> he is not going to engender a sympathy from other shareholders. the man is not hurting. you said he is the seventh richest person in the world according to the bloomberg index. but then again, you have to give him some kind of benefit of the doubt here. his interests are aligned with those of shareholders. he is the biggest shareholder in the company. he owns one quarter of a. it's not like he's going to act against what the shareholders want, given he is so self-interested. also, oracle has taken steps recently to align its pay -- bring it more in line with the performance of the company. these are the kinds of moves that are considered shareholder friendly. >> although, he has taken this pay package -- with these guys are arguing is that in a year when results are falling after spending billions and acquisition and revenues are barely rising, he is continuing

to get more money. they are giving him more and more every year, to the tune of tens of millions of dollars. they have made some tweaks. they cut the number of options for several of these key executives up there. but he is no longer the ceo. they brought in other people to be the ceos of the company. he is the chairman, he is obviously still going to be around. a lot of say on products. they have made changes. i think you are going to see changes in how he is compensated for the work he does at oracle. >> i love how you didn't call them co-ceos. aaron boyd, or we going to see more of this? this one has been underway for many years, or is oracle really unique in this? x oracle is pretty unique. there will be a few companies that there will be issues like this that pop up where shareholders will be taking specific issue with. and there is a handful of

companies that have lost the last several years that will certainly be worth looking at. none of them have the visibility that oracle has. like was already mention, that larry ellison's pay package has been for years one of the most unique pay packages out there. >> is certainly big. aaron boyd, thank you. with wi-fi able to be used with a smart phone i can use text, voice, data. new telik medications business models start to emerge. we talk about the new competition taking up the cellular market, next on "bloomberg west." ♪

>> i'm cory johnson, this is

"bloomberg west." google and the cable industry are working to disrupt the telecommunications industry. cablevision is rolling out a wi-fi only phone that will be just $10 a month. katie has been following the story. good to see. -- good to see you. wi-fi only phones have been seemingly a threat on the horizon for over a decade. why now? >> we are getting closer to a national wi-fi network. it's still far away, but more people are using wi-fi. there was a report that said in 2013, 90% of the data traveled through our mobile devices was on wi-fi. already, we are using wi-fi more and more reliable and a lot of spots. >> the desire to send more data across the backhaul is a great desire for phone companies.

is this a chance for the number three or number four phone carriers and sprint and t-mobile to start to get ahead? >> i think we are seeing a shift to mobile, which means more data over tablets and mobile phones. interesting thing like cablevision is done is they are trying to get in on the turf area they are trying to find a way to the mobile device because of the growing data stream. basically, the cable industry has already one -- won the broadband more. as you can't get wi-fi. >> we are seeing attempt at consolidation like comcast, time warner. half the people in america will get their high-speed internet from one sickle company. >> even without that, they already have regional monopolies. you don't see cable company's competing in different areas. there are only competing with at&t, verizon, etc..

those phone companies are losing because they don't offer content. why would you pay that much for broadband from verizon when you can pay time warner cable and also to your television channels ? >> will this replace -- the 90% but that action 10% is when he want your phone to work as well. >> when someone needs a reliable connection, is not going to work out. >> let's say, god for bid, you were someone in a car. >> they want to target places with wi-fi rich environments. college campuses, dense urban centers where it's easy to be connected by wi-fi. >> google is just getting more people online more of the time so they conserve more ads. >> they have so many different pieces of company connected to data and information, whether it's android, the operating system, or whether it's as you say, the search engine that wants to see more advertising. >> katie, thank you. the space race for private

travel to the moon is heating up. google is throwing millions to all kinds of scientists in the latest lunar x prize cup edition. bob weiss is here with the details next on "bloomberg west." ♪

>> welcome back to bloomberg television, i'm scarlet fu with the breaking news desk. went headlines from standard & poor's. it downgraded russia's sovereign debt rating to below investment rate to junk status for the first time in a decade. we know that s&p's downloaded -- downgraded russia in april. but now the sovereign rating is double d+. here's a move right there when asked him the headline cannot you could see the dollars biking in value versus the russian ruble. in the longer term, this is the

ruble has performed of the last five years. this sharp move in the dollar's value against the ruble over the next six months. basically rallying 90% against the ruble over the last six months as sanction heard -- sanctions hurt russia's economy. more "bloomberg west," is on the way. ♪ >> you are watching "bloomberg west," where the focus is innovation, technology, and the future of business. i'm cory johnson. spacex settle the lawsuit with the u.s. air force over military satellite launches trade. they called the bidding process unfair after all the contracts were awarded to a joint venture between boeing and lockheed martin. even though he had yet to launch a ship at all when he suited. under that agreement, spacex won't be getting a contract, but the air force as it will expand bidding opportunities for launch services and will work with make a -- work with spacex to make sure get certified for future gigs. google funded lunar x prize is a

campaign to revive space exploration. today, the organization announced five team winners will take home more than $5 million in a combined prize for making ketek and -- key tech advancements. the prizes are in imaging mobility, and landing systems. how far are we from a private mission to the moon? here's bob weiss. good to see you in real life, not in space. very intriguing, this whole x prize thing. it helped launch the spaceshipone deal about 10 years ago. interesting that you now you were going incremental with some of the prizes to get private spacecraft to the moon. >> we took a look at what it would take to promote us is a space sharing civilization. there are things you have to do to get out there. one of the things you have to do is make sure that space exploration is viable. it is not viable if it solely financed by the taxpayer all

express is have an element of private enterprise about them. you cannot use government funds or principally cannot use government funds to do the work. so the google x prize was launched to lower the cost of planetary exploration to interest young people, and science technology sus -- subjects and careers. and to extend the commercial here to the moon, which at this point, stop the geosynchronous orbit around earth, where telecoms work. >> let's talk about the companies you are working with spacex google, virgin galactic. are they competing with this as well as funding it? >> google is not a competitor they are the sponsor of the prize. they are making a possible. virgin galactic is an outgrowth, if you will, of our first x prize, which was the x for

suborbital spaceflight. when we have in a prize, our role is that it's the beginning of an effort, not the end. >> virgin galactic was a one-off, no pun intended, and now it's a business. >> we look to lead industries that start -- nascent industries or industries that have evolved as one of the results of x prices. that is what will make the innovation sustainable. without doing that, all you have is a stunt, if you will. we are looking for more than just a stunt demonstrations. >> so imaging, mobility, and landing systems. talk to me about what the prizes are today and what the innovations are. >> these are three important phases of the lunar mission. you have to get there, so you have to be able to land softly. landing is hard, getting there is harder. >> the getting there is mostly about capital.

it's not so much about technological information. we have the rocket, but you have to capitalize the venture. once you are in the area of the moon, you have to safely get to the surface. that is the landing. then you have to be able to get from place to place on the surface, that is the mobility. >> that is the mobility part. then you have the imaging. >> you want to be able to send back video, pictures, and data in a way that everyone can take in. as part of the google lunar x prize, they have to send back a moon cast of images, panoramic and interviews that prove they can do strong imaging from the surface of the moon. >> tell me about one of the innovations rewarding today? >> one of them is for mobility most people think of spacecraft that go to the surface of

another body, and other planets as something that roles on wheels. it is not the only way. people have spacecraft that hot from place to place. they have spacecraft that literally flying from one spot to the next. and not just roll on the wheels or treads. we look to award teams that have brought their mobility systems along far enough to be recognized. i do want to mention that important part of these milestone prizes is we are looking to have the reward match the risk curve it. if you wait till the final prizes run until you're actually on the moon, the reward curve is a huge hockey stick at the end it. we are looking to incentivize teams as they are on the journey themselves. most of these teams are still looking to capitalize, these milestone prizes are away for these teams to separate themselves from the rest of the pack, if you will.

>> it's interesting from a creativity standpoint, it seems like a really challenges the mind. bob weiss, express president. thank you. coming up, how can dana fox -- data fox rely on artificial intelligence for analysis. you can watch us on your tablet, phone, or amazon fire. ♪

>> i'm cory johnson, this is "bloomberg west." new companies are launching at an unprecedented pace. how can other companies keep track of who their new customers could be, and when business opportunities spring up out of nowhere? enter artificial intelligence. how is ai being used to qualify the new world order? joining me is bastion data

fox's ceo. essentially, i want to set up what's going on. you essentially have bots they go out and scrape the world of information for what? >> private companies are getting started is a rapid pace nowadays that the way we used to go about this was manually tracking business formation. that just doesn't keep up with the true face of business. we automated that process. >> there are over 40 companies that have over a $1 billion private violation, and they are spending that money on hiring people. they are raising rent all over the place, and that's attentional market opportunities, i don't care if you are pitney bowes or xerox. you could be calling on his people for business. >> especially for the large

conglomerates in the technology space. you look at samsung sitting on six $2 billion in cash surrounded by companies with the particles that are important to them that are rising so quickly. need to be inquisitive and partner with an acquired companies early to avoid being disrupted. >> i asked you to come up with data that shows us the pace of innovation. it's hard for people understand what goes on there. if you go back 150 years ago and talk about america becoming a big business, had to market to themselves for a long time. >> it to companies traditionally a long time to get access to the markets. >> data fox essentially measures employment, how many people they hire? >> we try and get it how similar companies look to either businesses that we have determined to be successful or businesses that we think of as successful.

>> if you look at the timeline the world to itself -- america the world was over 150 years. first they show up in another world to themselves, paypal five years, coin, apple paid, you have this rapid innovation with lots of hiring and lots of venture capital. >> we have seen as many payment companies be found in the last five years as in the entire history of payments before that. >> if you looked five years ago at all the payment companies in the whole world that got started at a long as hundred 50 years ago -- 150 years ago, there's been more in the last five in the last hundred 50? >> they are accessing big markets faster. look at coin base, for example. they reached 2 million users, or 2.1 million users, they were only founded in 2012. can you imagine visa or mastercard getting that kind of distribution in two years? >> what is the underlying trend letting this happen?

what is the thing that lets a company go from zero to 6000 -- why is that happening now? >> it really depends in the industry that you are in. bottom line is that in the digital age, it's just easy to reach consumers on grayscale very quickly. that makes it harder to identify these companies that are up-and-coming early enough that you as a large company can interact with them. >> in a jacada beanstalk world, with a beanstalk is growing so fast, it's hard to know what teens to pay attention to -- jack in a beanstalk world, it's hard to know what beanstalk's to pay attention to? is it about seeing them on your data streams? >> we are keeping track of the company's entire online footprint. think about milestones that are

important to the company success. they double their headcount, they bring on an impressive board member. these are little, very valuable nuggets of information that you will find a press release there in linkedin profile changes here. these are the kinds of things that you and i as analysts -- there is not enough hours in the day. but you can definitely and for that kind of signal at scale. >> it really does show there is an different happening. we hear it in every bubble, but there is something different this time around, and it's good to see your novels -- your numbers. bastiaan janmaat thank you. mark crumpton joins us now from new york. >> we continue our coverage of the massive snowstorm bearing down on the northeastern united states. several governors have already declared states of emergency and mass transit systems are scheduled to shut down early. i will also be speak into the german investor to united states. i will get his thoughts on this

weekend's victory in greece by a coalition that in -- opposes international austerity measures. germany says greek of it missed should remain in place. we also discuss u.s. german relations. i will see what the top of the hour. back to you in san francisco, making the jacada beanstalk reference, impressive great -- jack in the beanstalk reference. >> i work on the can regard level mostly. [laughter] -- kindergarten level mostly. we talk about the super bowl advertisement, next on "bloomberg west." ♪

>> i'm cory johnson, this is "bloomberg west." a 32nd spot in this year's super bowl costs $4.5 million.

become but is most important investment in a be the broadcast as people spent more time watching ads on youtube. what makes a super bowl ad successful on social media? zach joins us now,. . it's interesting, for as long as i can remember, super bowl ads have been the big deal in advertising. has that changed? >> we're talking about super bowl ads. they are the linchpin. everyone watches the game, sits down and has a beer, eat some chips, has a pizza watches the game and talks about it on social media. >> right now, there's tailgating going on. carl's jr., we had them on the show that week or two ago.

we were going to be talking about the carl's jr. approach. instead, we ended up talking about the famous ads in the super bowl and around the super bowl. he told me this amazing story of very direct targeting around this ad to go to a social media audience. it's like tailgating right now. happening long before the game. they are already getting play for this all over the internet. >> i think that's what makes super bowl ads work so well. the economics of the ad itself is not enough. if you are just getting the impressions from watching the game, you don't get the kind of reach and skill you need to afford $4.5 million. a because social media is talking about it, you get this tremendous reach. if you are good and innovative like carl's jr. is, and you know how to play into that, you know that it had let the audience you can just get exponential performance. >> nationwide has this very funny spot may have going on. they are great advertisers.

might nine-year-old is -- my nine-year-old is playing the nationwide theme on her recorder because it's so memorable. they are going with a very clever, very chaste ad. does that play well on social media? >> is the question of what your audience is, and how to reach them. the fact that we just talked about that will give it a little bit of lift. but the things that are really titillating, things that people will talk about get the most reach. if you get a lot of reach sometimes it's the wrong reach. think about what happened to groupon. they pushed on a commercial couple of years ago that pissed off everybody it was the wrong kind of reach. >> kind of like their ipo. [laughter] there are classics, we had budweiser, victoria's secret again, what makes -- maybe you have a great ad.

is the ad going to play in social media? in what ways do you have to tailor it to the medium of social media, but at the same time make it more appropriate for the medium but also following the same message? >> is the classic watercooler. if they want to talk about it around the watercooler cooler, he will play well on social media. if it's scary, funny exposes people in ways they don't want to be exposed or that we all want them to be exposed -- if it something that people want to talk about, he will play well in social media. the trick is how well does it work for the actual brand? they don't want a mismatch. >> the advantage of the super bowl is the audience is massive in one place. you don't have to appeal to one group. the advantage of being online is the audience is greatly dispersed, and the cost of creating an ad can be so much less than you can tailor it to a certain audience.

budweiser -- there is no more brand that i would argue is more connected with the super bowl in the last decade -- maybe pepsi or snickers, but budweiser. they are a huge advertiser in the super bowl. that is the name you associate with that. it becomes one medium, one message. does that work online? >> it does to the extent that you want people to share it. you don't have control over the sharing over line. when people start sharing it you don't know where we'll go over how far. you need something that can be broadly spread around. when you want to have a really targeted ad -- >> budweiser years ago did the talking frogs. it was the kind of thing you talk about, that would make its way onto twitter. what to do clydesdales and -- does that get talked about? >> i think people still talk about the dog and the clydesdale. apples of the heartstrings. people talk about that. -- that pulls at the

heartstrings. so many commercials are a dud. if you make a good commercial people will share it. >> we will be watching. on sunday, we will be watching. we will be also be watching the bwest byte. lucas shaw joins us from l.a. >> three. the number of awards the netflix won last night. the latest example of necklaces growing clout -- netflix's growing clout. these services are competing with hbo, showtime, everyone else. >> they are raising prices of everything made in hollywood. that may be good moves -- good news for the netflix group, they

can get subscriber to the company whether the views are higher not. >> amazon just tried it with "transparent." on saturday, you can watch the show for free, and become a prime subscriber for a much lower price. i don't anticipate netflix offering discounts, but the awards anticipation helps. they said that "house of cards," alone has 100,000 subscribers when new season appears. >> i didn't see the number. i think that's a key number for netflix. >> for them, it's all about growth. especially when you look at the u.s.. the subscriber growth has slowed a bit over the past year or so. it's internationally where they are picking it up. anything that can add to the subscriber totals is good for netflix and stock prices. >> lucas shaw, thank you. you can watch us streaming on your tablet, phone bloomberg.com, apple tv, and amazon fire tv. we will see you tomorrow with more "bloomberg west." ♪

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>> from a very snowy bloomberg world headquarters in new york i.m. mark crumpton. this is "bottom line." 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. scarlet fu is keeping tabs on what you should know about the major snowstorm bearing down on the northeastern united states. don mattingly wraps up president