>> live from pier three in san francisco, welcome to bloomberg "wes worryt" no caps on innovation, technology and the future of his. the ntsb now in charge of the scene after the metro west river crash last night. -- bloomberg "west" where we focus on innovation, technology and the future of business. >> our first order of business

is what we're already done, to take him at the. from there we are very methodically documenting the. we have brought in a three-d laser scanning to be able to have the wreckage. --from there, we are very methodically documenting the wreck. major changes appt petrobas. the board will meet friday to select a replacement. -- major changes at petrobras. they are accused of taking bribe in exchange for a contract. they fold bowing -- staples bowing to pressure from h office depot. it's the lysacek antitrust

hurdles to the rise and competitors. bill gates donated 1.5 billion dollars worth of microsoft stock. 31 million shares went to an unknown entity in november. with the new he has cut his stake in microsoft to 3%. he now owns 99 million fewer shares in steve ballmer -- than steve ballmer. nearly 4 million comments, tom wheeler releases a new land for net neutrality rules. to protect the open internet at all cost. the cost will not be born by the people providing content the carrier. joininghe says he wants to subject broke -- broadband and utility directors to utility rules. he's a internet must be fast, open and fai thatr. is the principle that has enabled the internet to become a

platform innovation and human expression. peter cook joins us with more on the wheeler plan. >> this is arguably one of the biggest policy decisions you will get out of washington this year perhaps out of many years to come. tom wheeler responding to the challenge for poor were by president obama in november to put down the rules of the road for open internet are cap are than what a lot of internet service providers for acting or calling or a few months ago. what he is done here by reclassifying service providers as common carriers entitled to regulations is the big change. -- and title two regulations is the big change. no throttling of legal content. wireless networks would be covered. at the same time says it would be like touch regulation. they would not have terroarri

there would stillf be investments in. want to invest in the network. he goes on to say, i submitting to my calling the strongest internet protection ever proposed by the fcc. my proposal ensures the rights internet users to go where they want, when they want. you know this is a huge deal here in washington. we are already getting tremendous feedback people for and against what he is proposing. he still has to get the vote at the fcc. -- the votes at the fcc. >> he also is to outline the legal framework. i was listening to the call on the background of the fcc, really going through in great detail the legal framework under which the proposal is framed to try to protect them from those

who might throw it out from the antiregulation crowd. >> i think we know for certain there will be lawsuit. there were lawyers per carry for the lawsuits before he announced it. the fcc does feel confident in decision moving over. i can tell you for the cable companies and some of the big telecom firms, they feel just as strongly they have an opportunity as they have passed with the fcc rulemaking in this area, as they have an opportunity to shoot this down in some form or fashion. >> peter cook, thank you for your help on this story. an instant impact on internet and cable companies in the stock market. scarlet fu, chief market correspondent, the line sent the cable stocks on fire. >> investors look past the idea that wheeler is employing the use of utility, even though he says there will be light touch of regulation to fix it. if you look at a couple of big

names, comcast time warner cable -- they are still waiting for a deal to be approved by regulators. cablevision. all three of these names the race losses. they are seeing growth in video subscribers slow down, which makes broadband services much more valuable. dish network at it too much high. directv got the same pop on the announcement. higher on the announcement and holding onto most of the gains. on the flipside, netflix deepening the losses. it hit a session low shortly after we were came out with the publication of common. in the interim, it is hanging rock and -- broadband providers tolls. >> the cost of goods sold goes down and competition goes up.

i guess it shows how brave netflix is to think they can beat the competition. indeed, scarlet fu, thank you very much. we appreciate the breaking news on the market. the fcc making a strong statement on the future of the internet, but the debate is on. internet service providers are take off about this. they were instantly out with press releases. verizon called it counterproductive. the offense did not address issues new rules that would prevent at&t or comcast from charging to carry content. what lies ahead in the open internet debate now that the proposal will be soon, the vote will happen soon you? chris lewis and doug break policy analyst at the information technology and innovation foundation. what is your take on the tenor of the proposal because we do not see the proposal yet?

>> to log he posted -- what he posted today largely confirmed what everyone has been a acting ever since president obama made the endorsement of title ii in november. i think the litigation risk is really quite high. title two largely an overblown response into a narrow question of what sort of legal authority that at the need to police the open internet. i am disappointed. >> you are disappointed because they are trying to change --what disappoints you about it yet t? >> there are all sorts of legal entities we crossed into. a big part of the open question is how the fcc will do the forbearance process? there are divisions of title two

that just about everyone agrees are outdated and unnecessary. >> give me one example. they were written when people were using homing visions to meditate. what is outdated about this? >> there are a number of things. the loop on bundling and those sorts of provisions that were put in place in the 96 telecom act for what were then regional telephone providers. just about everyone agrees those sorts of regulations are not appropriate in the broadband market today. how exactly about -- how exactly the fcc goes about forbearance is a big question, and there is tension in justifying the need or title two apart from whether it is justified at all. there is tension between the forbearance findings and the change in classification to a classification service. -- communication service. >> just about everyone agrees it

will not work. are you just about everyone? >> no, i definitely do not agree with that. what i think everyone can agree on is that neutrality protections are important. the question before the fcc is how you put those into action. we support chairman wheeler's decision to use twoitle two, because in 2002 they try to enact net neutrality rules and have it struck down by the court. in that decision, the court basically said the rules were too close to common carrier type rules. by chairman wheeler putting out a proposal that uses title close two, and make them more likely they will pass court muster. we think it is a historic decision and are very supportive of him moving forward. but i get the idea the sec --

>> i get the idea the fcc cannot just make laws. two,do you think that is the best way to make sure things that go across the cable modem are unhindered by the cable company itself? >> yes, we think it is the strongest rules the fcc has asked it disposal. congress could always update the telecommunications act. there is talk of doing that. that process takes time. consumers have been without net neutrality protections are over a year now. we are very supportive of them moving forward now, and then if congress chooses to clarify things we would hope they would do it in a way that would protect the net neutrality principles and empowers the fcc to do its job, caught on the beach for internet service providers. >> it sounds like this is the best tool they have got.

tell me one negative impact that could come in this room is what it sounds and is implemented yet --only one negative impact that could come if this is implemented? >> it has a lot of litigation risk. it will likely the over on appeal. i do not think it is likely to pick. it has always been fundamentally a fight over the jurisdiction the fcc has to police these networks. there is not a lot of strong disagreement over what net neutrality itself should look like but the fcc jurisdiction. i think we should go to congress and get it clarified once and for all. >> doug brake and chris lewis thank you very much. silicon valley also weighing in on the proposal. cable companies may not be happy about it. it is being met with tepid approval in silicon valley. one of the top lobbyists will tell us how facebook will see

this decision next. ♪

>> this is bloomberg "west." i'm cory johnson. jordan executed two iraqi prisoners. the executions come just after a video showing it on the militant earning a jordanian pilot alive. jordanian citizens marched demanding justice. the pilots's murder has prompted outrage across the middle east. saudi arabia called it a heinous crime, saying it was not sanctioned by the visible of islam. iran call it inhumane and islamic -- unislamic. tom wheeler talking about an open internet, one that band your decision and subjects internet to a new arm of regulation. joining us as michael beckerman senior fellow at the lobby

organizations formed by little companies like google and they spoke and other things you have probably never heard of. this is a huge deal. i don't care if you do not care about technology, i do not know what those people are alive but a huge deal because the government is saying this should be available to everyone on the basis and private companies should bear the cost. >> if you use the internet, you should care about this, and we are encouraged by the stance the fcc is taking here. >> why? >> we have asked for there is no blocking. as long as it is legal, you can get there. there is no throttling which means the cable company cannot degrade the contents of the video site you want to visit and there is no to termination. at the end of the day, internet users should be able to access whatever site they want and company should be able to reach customers. >> i was use the example of uber

and lyft. what's it i don't know, make a fantasy cable company -- cable company. what if they fire ly -- a fire aquire lyft big block -- and block uber. >> under net neutrality that would be prevented. you have companies like uber and lyft, let them compete and the cable companies should not decide who wins and loses. >> i am not a big believer in the stock market that knows much in the short-term basis but netflix sold on this news. i wonder if people look at netflix and behind the companies and save the guys opened themselves up to more competition. why do the big companies support the open internet when in fact they had the advantage because

they could build their own networks like google or apple has or do other things like pay for it as netflix has? >> all of the member companies have thrived under competition. when we look at what makes the internet great, it is really the idea of free enterprise and let users decide. our companies are much closer to the user than any other company. they just care about the users. they let them decide who will win and lose and happy to have that fight. >> is at a cost concern as well? netflix has spent tens of millions of dollars to pay to get their content to customers faster than competitors even. >> i did not think so. i think it is an issue of fairness. when your customer, you want to be able to reach your customer and have them reach you and not have a isp or some other middleman locking content or degrading content. >> the view from silicon valley.

thank you to michael beckerman. we appreciate it. bloomberg "west."" will be right back. ♪

>> this is bloomberg "west." if sony finally making a comeback? $75 million in the luminary results. joining us via skype is the chief technology officer. i look at the turn around failing at ibm and hewlett-packard, and then i think there is no way japanese sony can turn things around. they are turning it around. >> yes, they are. a strong dollar helps. definitely some currency effect in the numbers, but when you dig

underneath what you see is a shift of 900,000 for more ps4's. they double the number of subscriptions to their network services which are people playing the games, and they also stalled over 20% improvement in the phone business. that is more bad news for samsung because they are going after the premium android space. bottom line they got out of the pc business last year and got focused and started to see results. currencies help. >> it is hard to say how much the currency helps. who cares? what they sell and the fact that they are selling more of it is important. i think it is inc., i was shocked they could turn around the tv business. they fit in the sec filing the tv business was up over 10% year-over-year. the orders were 10%

year-over-year. that is impressive. >> it is impressive. again, this is an example of sony going after the most demanding customer. basically with the new high-and offerings beginning to make a big play they are getting people to pay up because it is a respected brand tremendous amount of brand equity, and they are delivering results. my worry is how long can it last? >> there is one commodity that greatly helps on the side of currency trading, and that is the selfie. amazing they have gone to another place where there is a commodity product out there on the cameras on cell phones particularly the front facing that are used for me all day long shooting selfies. amazing they have turned that into a real business supplying demand for the phones and

benefiting from understanding how optics work and making a great front facing camera. >> we believe as you see of get into -- you see us get into new wave of mixed reality, the companies that have sensor technology are really well-positioned going forward. companies like sony, canon as suppliers to microsoft's and be it apple's, those apps will become powerful. the companies will continue to innovate and invest in the company's. >> if they can i wonder if it is just another commodity being chosen as this year's chip meaning they will not be chosen next year. >> i think the product cycle is longer than that. it is a two-year run. you have to stay accurate. >> crawford del prete always appreciate having you on.

companies like facebook and google investing big in artificial intelligence. where is artificial intelligence going you will? you will not believe this next big story on bloomberg. ♪

>> you are watching bloomberg "west." i am cory johnson.one of the most common questions for yahoo! -- for amazon. why does the company and so much money on audit? >> basically we have so many i call insurmountable opportunities so many things we can do because of the time we have started and the change happening because of the internet. all of that opportunity.

so we keep finding new things to invest in. we have some great franchises we are built over time, amazon prime including video, kindle and amazon web services. we are also always investing and looking for the next time, amazon prime including thing. you can look at it either way and say it is good news amazon continues to find ways to invest in. one of the area is amazon content. amazon studios is making a show that is not inexpensive, but it is worth it. it is worth it to our customers and crime members and worth it to bring tv to the new golden age, which i think is really happening. >> our friend charlie rose cannot talk to jeff bezos without asking about drums. he gave us a hint. --without asking about drones. >> the regulatory pieces are going slower than i anticipated. the faa at their hands fu

trying to regulatell --hands full trying to regulate drones. >> they are looking at radioshack to showcase this. the highest-paid female ceo in the u.s. may not be who you think. she runs and found aroma therapeutic. it took $38 million -- he took on $38 million last year. now she is leading the way in artificial intelligence. olivia sterns sat down with her and the latest invention, the robot with dreams of being human. >> how are you feeling? >> actually i'm dealing with a little existential crisis here. and i a line? do i exist? >> these are the types of questions that the robot and the ceo of united therapeutics are

trying to tackle. >> this is a proof of concept robot based on the personality and the mind file of my wife. >> they were married 30 years ago. it is created as the digital replica of bloated with the original memories, thoughts and feelings. martine is my love. >> i believe it will be humanity's biggest invention. the market opportunity is limitless. in the 1980's she helped to create the fcc new satellite radio service. soon after she found it -- he found it serious. she started a biotech company to develop a treatment for her daughter's rare lung disease. today she runs the company and is the highest paid female ceo in the u.s. if you did not notice, she used to be a man. she is now a transgender woman

and still blazing new trails. her latest endeavor, mind clones. >> mind clone is a digital copy of your mind outside of your body. >> welcome to the world's first artificially intelligent operating this time. >> if you are thinking this sounds like something out of a movie, you are right. remember the movie "her"? scarlett johansson the world -- the voice of the operating system. a fictional plot, but similar to martine's real-life goal. >> yes i love to take naps. to break down thoughts and emotions to create a digital version of one's consciousness. >> how many years away our mind -- are mind clones? >> one to two decade away.

when i started xm in the 1990's people said it is completely fictional. they said you were dreaming. now there is 30 million people doing it. i think it will look like an avatar on a screen, and taking instead of a robot version i think you would take your smart phone, and ultimately the embedded into your clothing. in my breaking the law of physics yahoo!. am i talking about faster than life no. all i talking about doing is writing some good code. >> it is not quite there yet. >>my name is olivia. >> but even she is excited to

see the next generation artificial intelligence. >> i cannot wait we've evolve a little bit like and be more humanlike -- even she is cannot wait to you all a little bit so i can be more humanlike. >> incredible story. join me right now is olivia sterns. fascinating piece on what thousand level, but the market for ai, a great question. there is a piece by jack are that says there are piece 15 startups funded in the past year trying to pursue the idea of ai. that is 20 fully amount of money in 2010. the world's biggest companies that you report on all of the time are pouring money into artificial intelligence. google eric schmidt told our colleagues that artificial intelligence will be " the biggest thing for google." google, facebook, you name it everyone trying to figure out how to use artificial intelligence. you need to think of it not just a human robots and this is very

early stage, think of artificial intelligence as any kind of software that can diamonds rate, exhibit human intuition. it is that level that siri for apple is very early steps. a mind clone will let you be in two places at once. you have a meeting in germany, your mind clone attends that while you are on the beach with your family. it sounds crazy, but this is what she is talking about. >> they are just going to make me twice as much. i wonder, this story, jack clark's story is a fascinating one. tell us about actually talking to it. >> it is not quite there, but there were moments that were pretty eerie where it seemed she remembered something we had been talking about or or five minutes

ago. what really struck me m martine rothblatt will acknowledge this is nowhere near the end goal. after asking her all sorts of questions because what she is focused on is not just the software but the actual right. she has an advanced degree in medical ethics and what she is focused on is the rights of mine clones. she had relatively reasonable answers to all of them. unbelievable. her current thing, she is building cake organs that can be transplanted into human. -- she is building pig organs. and also printing 3-d lungs. truly one of the most impressive people i have met in my life. >> bloomberg surveillance

anchor, olivia sterns. worth waking up four. glad to have you on. do you recognize these? the company behind. a viral content on the internet. we will talk to the director of product about how this business works. ♪

>> i am cory johnson. imager gft to the internet. -- gif. i do not know if it is an oxymoron high-quality gif. you guys cannot buy another foul on wheel of fortune -- another

vowel? >> this is a virtual storytelling platform. the stories might be funny, sad, inspiring, but stories created by real people. more than 60 million images looked at in a month. >> hundreds of millions visit your site what? >> every month. >> what are they doing? >> submitted their own images. reading other people's images. talking with other people and connecting with each other. >> how do you get paid? >> we had a small display ads that will be launching soon. >> the display images getting better or worse? >> this business was completely bootstrapped within five years. we did not raise a dollar in outside capital. >> the success of the gif.

can we talk about this? it is a fairly amazing thing, because they have been around since before the internet. since the 1980's. i keep this in my hand because i figured out to copy and paste on my iphone and they are hilarious to send us a text message i believe. what is it about the gif? >> for us it is short looping and does have sound. it is like a punchline. you do not have to watch the whole video, just the best five seconds. we think mobile is driving this. people sharing a short clips that can be viewed anywhere. >> to what degree is tumblr's growth driven by people looking at hilarious gifs? >> a popular on a lot of formats.

they are all growing together. >> is your plan to be like a tumblr service? the brick being gifts and images. >> we are different than them. you have to create an account. you follow someone. as a result, there are no celebrities. you can post content tomorrow in just as good of a chance on getting on the home page as i do. >> what are we showing on the television of me getting undressed? i do have shame. i wonder also if you have a sense of what works? what worked with a gif? >> the beautiful thing about this is it is a platform. we do not have to decide that. i think you can choose. >> really quick, what works for

what is funny? >> our job is to create the best ones for people that want to create gifs. works for what isonce that are popular they become memes. we figure out how to make the tools that allow people to share their own story. >> you have to be in a position to see it. what is working the best? >> cute animals never go badly. >> i know>> i knew it. a turboprop plane crashing into a river in taiwan moment after takeoff. the footage shows the trans-asia plan -- plain clip in taxi before plunging into the river. 58 people on board. 15 survived. the cockpit voice recorderthe cockpit

voice recorder and later recorder have been recovered for analysis. india's central bank governor warns indian companies that borrowing the u.s. dollar is like playing russian roulette. he said they will have to start normalizing interest rates or others will not follow suit. >> when they do that, they will have to accept some appreciation of the dollar because it will be the first one out of the box. >> atrios -- india's central bank cut rates unchanged today. the former leader of the oddest national park -- party appears poised to return. he is running for a sikh in the may election. pull show a surge in support for the snp. " bottom line" with mark crumpton begins at the top of the hour. >> oil prices are sliding following the u.s. government report showing crude inventories surged last week. is the rebound in oil at an end cap both human short will give

us his take. i will see you in a few minutes. --is the rebounded oil at an end? >> thank you very much. we will be right back. ♪

>> i am cory johnson. this is bloomberg "west." cyberattacks are on the rise but does anyone really care tackle we have to ceo of gold were. they did an extensive survey of users and what it means to them and who should be responsible for protecting themselves business, individuals themselves? goldberg had the answers. >> it is weird, people are less concerned than they were when we asked it a couple of years ago. it is a strange phenomenon. there has been more stuff that has happened to more people will. --there have been more

stuff that has happened to more people. things like getting hacked is annoyance and a nuisance and do not like it almost less shocking now than it was maybe the first couple of times it happened. i also think the sony hacked which a lot of us in business were focused on, i do not think that was penetrating people consciousness. >> we did this a week ago. they are not big seth rogen fans. >> i feel like people got to watch the interview if they wanted it. from a consumer standpoint, not a huge problem. >> 67 % the volume will increase . they see it as something happening more. but are they seeing it as something that has less impact like it card fraud? -- credit card fraud? >> it was something as more of

an annoyance and hassle, and unfortunately, it is one of those things that probably something really that has to happen in order for people to say this is something we need to do about area that is not what our politicians should do. they should recognize something really bad can happen from cyber terrorism, and i believe the budget proposal from the president has that in it this year. i believe that is the right kind of leadership we should be taking. we should not wait for something really bad to happen to do something about it. it seems like people are more passive about it. >> 64% of the people you survey did not know the president mentioned fiber security and that presidential address, and he mentioned it over and over again. >> i am not sure some of the people watched it. but i think people expect the

government to solve big problems like this when they think it is the government's problem. one thing that also came through here it is they think a lot of the problems are businesses. that businesses should solve these problems themselves. the big hacks in the past year, target, home depot, chase and sony they have all been individual businesses that have caused turmoil for customers, but it seems like these diseases have done -- if these businesses have done a better job. i personally think that is the lack of understanding. everything can get hacked. the message around it over the past year with individual businesses needed to do more, and that is what we got. >> it was fairly noticeable that they did the same thing a couple of years ago. things like nuclear enrichment facilities in places like iran

people were more worried. >> yes, like i said, i think -- i just saw this movie "blackhat" about cyber terrorism and hackers. >> any good? >> it is ok. but there is some really bad stuff that the hackers do in that movie, including basically destroyed a nuclear power plant in china. when you see stuff like that happened because of cyber terrorism that is the kind of thing i think would generate a much more government must step in, we need to spend money and are worried about it. i do not want that stuff to happen in order for people to care about it but i do think we've gotten used to a certain level of hacking. >> maybe some of it is businesses have done to lessen

the pain of hacking to show people do not feel that bad. >> i think also businesses are starting to recognize they have to do was these things as quickly as possible, then you cannot bury them under the rug. there is prevention, but also to those are. i think that government is saying we need more disclosure. like that was dave goldberg. here to tell us about this is sarah prior. what do you have. >> 185 billion, the number we are seen twitter, which is less than 300 million users. wall street did not care about that number until this week when twitter said it was rolling out motive advertising to write beyond the main app. >> so then twitter becomes a broadband advertising platform. fascinating. thank you for the interesting

lori. we will watch that one along with all of the rest on your phone, tablet at bloomberg.com and bloomberg radio. we will see you tomorrow. ♪

>> from bloomberg 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 today. shelby holiday focuses on the latest outbreak of measles and what it means for vaccine maker merck. alix steel tells us about the management shakeup at