>> live from pier three in san francisco, welcome to bloomberg west. i'm cory johnson. a check of your bloomberg top headlines. german chancellor ongoing merkel met with dutch angela merkel met with president obama, to get russia to back off. >> we continue to encourage major -- a diplomatic effort to this is you. we are in absolute agreement that the 21st century cannot

stand idle and simply allow the borders of europe to be withdrawn at the barrel of a gun. >> meanwhile, the european union postponed sanctions against russia to allow time for diplomacy. scheduled on wednesday for the leaders of ukraine russia, france, and germany. swiss bank and ubs under the investigation by the u.s. justice department. looking into whether they let clients and selling foreign exchange structure with routes according to people with knowledge of the situation. the justice department is focusing on whether ubs misrepresented currency reactions price. apple gearing up for its first bond sale in swiss francs or the iphone maker hired put -- credit suisse and goldman sachs to raise the sale in the near future. the sale will allow apple to

take advantage of record low funding costs with government on yields turned negative. apple issued the equivalent of 39 billion bonds in the last 21 months. twitter gets more requests from government to take stuff down. requests have jumped 84% for content removal. the most requests, russia had 91 requests. the most requests for information without -- about users. now to the lead. spacex has postponed the launch of its rocket for the second time, coming after the -- the -- the launch was scrubbed with 2.5 to go. the launch postponed to the same time tomorrow. once the rocket gets off the ground, spacex has two goals. first, to get is climate conservatory in orbit, and

second to land its rocket booster floating in the ocean, something spacex failed to do last month. joining me now -- and on the phone, didn't a whole of humbert news. what is the scene on the ground? >> to be clear, i am in one of the towns outside and right now, there is not much of a scene at the launch facility itself. everyone is in for tomorrow night. >> yes, lovely cocoa beach. i have enjoyed quality time there myself. it is a big deal, the space race. help me put what is happening today into perspective. >> yesterday -- today was the second postponement of the spacex launch. it is difficult to count how many times the payload has been postponed. al gore is therefore this launch and the reason is 17 years ago this month, he came up with a nugget of an idea that became

the core of this. >> let's talk about the zombie satellite. a fantastic piece on a bloomberg is this website about the zombie satellite, a project that goes all away to a late-night inspiration. tell me about this. >> al gore, when he became night -- vice president, told me in a -- in an interview he hung a picture of the whole earth -- he would name 5-6 years later, he was getting a little tired of that one so he called nasa and asked for another picture of the whole earth and the problem was that there was not one. he realized they could send a proto-oh pro, a late-night 90's version, fling it out a million miles into space, have it turn around and bring back continuous pictures of the earth. scientists i spoke with who were

upset about the involvement of a political figure in a satellite development ross s told me after he invented the internet, he needed the something on it. >> it is a nanny cam of the earth. but there was a scientific ross s they try to find something else they could do right? >> that is true and as soon as he came up with the idea he knew that is not a reason to send a satellite into his days. he conducted a series of meetings with nasa developing what became a proposal. nasa selected three instrument processes over the course of a few months, became this satellite -- discover satellite. was not call that yet. initially was named after the sailor on columbus's ship, the pinto, who first saw the new world. what ensued was a political

fight in washington. you remember al gore was running for president at the time. the congressional -- the republicans wanted no part of what they started ridiculing as gore's. the story is so long and so epic. >> that is why i tweeted out the link to your story, long and epic and awesome. in addition to the satellite we have an amazing story, and in a whole of spacex. where in the timeline of what spacex is trying to achieve, does the launch fit? what are they trying to get done here that they have not gotten done before? >> spacex has baltimore go -- baltimore goal -- ultimate goal and a big part of the big effort is to prove market reusability. a lot in florida is not just on

the successful launch of discuss -- discovering the orbit, but the ability -- the ability of spacex siouxland the market booster successfully on a custom-built ocean platform as floating hundreds of miles away in the atlantic ocean. >> last time, elon musk tweeted before we had the epic video which we eventually had, which is one of my favorite vines elon musk tweeted the rocket made it to the drone spaceport ship. god forbid we call it a barge. but landed hard. it bodes well for the future. landed hard, another wonderful euphemism because it did not land hard. it crashed. the good on him for trying. is this the kind of epic financial change that would make the business go from money loser to moneymaker?

>> well, it is a closely held company. i would not assume they're losing money. they have quite a lot of contracts with nasa and commercial clients there is i would not assume anything until we actually have more information. but usability is huge there that has been the holy grail for decades. no one else has ever really tried it in this way. if they could successfully land a rocket on the platform, they will try again tomorrow night, that would be a huge technological advance for them. it would still take several other test before they could attempt to land on land. i think with every test, even if it were what someone deemed a failure, learning from their mistakes and pressing on and for the launch tomorrow, they will have more hydraulic fluid than they have the first time around.

>> all right. thank you very much for the interesting story. we will lock should thus guys. you're watching tv or is tv watching you? new privacy concerns over samsung smart tvs and exactly what kind of information they are picking up inside your house you may not realize they're watching. ♪

>> here is a check of your world news headlines. armed dealers and tax invaders all have an account with hsbc's private bank. that story is based on documents leaked by a computer technician weeks ago. hsbc says it has cleaned up its act and then. netflix is now available in cuba as it speaks to markets for

international inspections. starting today, access to international payment methods, will be able to subscribe to netflix era of the -- they may be able to improve in cuba as we normalize relationships. microsoft lands to sell windows smartphone tablets and after later this year. microsoft is working with chinese technology earners for the launch. the smartphones will cost $7,500 -- $75 to $100. is your smart tv watching you? samsung is warning its customers of conversations -- a policy statement from samsung says "please be aware that if your spoken words include personal or other sensitive information that information will be among the data captured and transferred to a third party using voice recognition. your tv is listening to you.

it is not watching you. julie in washington dc. also with us, paul. let me start with you, julie. what do i make of the smart tv watching me, listening to me? >> he this will. if you're watching tv, tv should not be watching you back? >> ok. is that a serious concern? >> i think it is a concern because samsung should not be collecting personal data from people watching television for at least two reasons. the first is that it is unnecessary. there can easily be privacy enhancing technologies built in that would eliminate or minimize the need to collect personal data from consumers. the second is that consumers do not know what will happen to the data after it is collected.

>> what are you doing in front of your tv that you do not want able to see? >> everything possible. i like to stand there and seven social security numbers as much as possible here it is that wrong? >> the smart tv that gathers information, big data artificial intelligence, have we reached a point where we will be concerned about our devices watching us? >> we shows the concern. i just think the question here is you kind of have to break it down. is the objection not just -- stepping away from samsung for a second, devices use voice recognition. is that the objection? i do not think so. we all seem to be in a written of the idea the devices can listen to us. what is the objection, that the

words we speak are sometimes related outside the device? i would hope that is not because that is the essence of cloud services. processing voice often happens the race third -- a third-party. the information your voice is transmitted through nuance. that is no different than what happens with google or apple with syria. is that the objection? i do not think so. if the objection is, how good of a job are they doing anonymized data, that is a perfect a legitimate concern. i just eight people, privacy advocates in general, have really modeled the argument. what exactly are we objecting to here? it is not clear to me. i do not think the objection is that somehow the devices in our homes should not access our commands. if that is, i think apple should go back to living in caves. >> there was a point between voice commands and caves, but all right.

julie, companies have to think about the anonymous asian of the data or is there a point at which they will not be able to collected in certain ways like seery or like a tv? >> i think i would just like to correct something that paul said, which is that the issue is not anonymous asian. it is certainly not the use of new technologies. i think the real it shoe -- real issue is over collection and not careful planning. companies that do not know what use they will put to data they will collect should not be over collecting in this way. >> yes, i mean paul -- >> it is interesting. >> a lot of companies that never thought they would be in an arena where they have to think about anonymizing data, the collection of cloud data, of random things their customers are doing saying, whatever, now have to think about issues of privacy. all kinds of countries have -- companies have to worry

about privacy that they never thought they would. >> for sure. apple had an issue with is a year ago. how long do they keep the data how is it tied to the users, when does it come fully connected -- these are all legitimate questions and i totally get that. my issue is with respect to the notion, a very broad term that i do not know what it means, but notion of over collection. language interfaces, whether you're dealing with devices, you listen because you listen because you're not exactly sure where in your users statement the actual command resides. people do not speak in this "turn on" and they do not want to. listening to a whole set of expressions, trying to figure out which one is a command for the television. when that becomes overharvesting when you introduce natural interfaces, we are screwed because you will not be able to put in anything which is

nonsensical. >> i do not know. i think is will get interesting. thinking about tv's in the hotel rooms area i do not know. it is an interesting story that affects a lot of companies. an important story. julian of the consumer protection council. thank you very much era alibaba investing $595 million to become a major error in the cell phone market area that just happened. succeed where amazon may be failing or at least stumbling. we will talk about that next on bloomberg west. ♪

>> alibaba, a major player in

china's competitive smart phone market. the is investing $500 million into a chinese smart phone manufacturer. giving alibaba a key weapon in its battle to acquire some control or some business with a half a billion smart phone users in china along with a proposed minority stake. it may get a platform for its custom mobile operating system. joining us now is a research director via skype from him by. this is interesting, a huge chunk of money for a company i've never heard of. >> absolutely. this is 45% of the revenue in 2014. you see this particular bill is signifying a race toward becoming a player. right now there are smart phone

companies who have smartphone experience and an there are software like alibaba. that is no apple and china. what they want to do is become an app of china -- apple of china. have a platform, as you said using the hardware platform. as you have seen apple is not where google is. >> there is no apple in china and of course there is, with the complete ecosystem. with an apple phone, software from the apple app store. is it the ultimate goal to have alibaba have all of that and more for the commerce to happen as well? i just. already investing.

amazon, apple. e-commerce generating a huge user base for software services content and extra stuff. that is where most of the profits are. >> does it matter which company they invest? 13th in china's market share last year. does it matter they invest, in probably number two or so or the 14th player or the 14th player with the eighth player, it just does not matter because the phones are not different? >> i think it is a good new -- a good move. it is one of the best designed houses in china. you can see the smartphone design language, focusing their

effort on the devices they have. it is unparalleled. it is a good move lacking having marketing muscle. the go to market strategy which they had to succeed for the last few years. >> i guess when i look at this, i wonder if the thing that makes it matter is in marketing dollars, but the namebrand that alibaba has in china. i know alibaba tells me they have a great namebrand in china but do they? propel in the phone? >> deftly using a brand name, which is second to -- in terms

of the oral team, or the oral market and consumers question -- consumers. >> thank you very much. we appreciate it. we have more bloomberg west right after this. we look at the grammys and the important social media story there.

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♪ oh, yeah! woooo! with a guaranteed 2 hour appointment window and a 97% on-time rate xfinity is perfect for people with a busy life. >> you're watching bloomberg west. i am cory johnson. the winners are in from last night's grammy awards. sam smith 14 awards, including song of the year and record of the year. but a surprise win for outcome of the year. streaming sites to cash in on the winners. joining me now from l.a., adam, the founder of bus capital and pentagon taste. i am curious, the music industry has changed so much it is

really two or three years. i wonder what the grammys are for right now. what do they mean for businesses, whether the business of an artist, a label, or spotify? is a great question. if you look over the last decades the grammys have those been the best marketing event the record label business has ever had. after those grammys, there is usually a bump of two x to eight x. a number of sales you would have on a cd or album you will see that on a spotify chart this week. i do not know what it will do for the revenue of the music business. it is a great question. >> that recording our home, i am still stuck in the 20th century. worldwide streaming shot up 524% overnight after winning the

record of the year. conway -- kanye west helping a lot with that win. why don't we break it down and go over a couple things. an artist whose music was perhaps the least listened to. he was a surprise winner except that he was nominated so he narrowed the feared -- narrowed the field a little bit here and spotify predicted he would win because he has the most downloads but that is not is how it -- not how it works. >> not at all. fifth out of five in the spotify chart simply because the grammys are an event. a very small committee people actually curate people nominated in the first place. voters themselves are members of the national academy of arts and sciences. it really comes down to the demographics of the members and not really what is strange. the only thing streaming has an effect on is just like any promotional video or radio it

is in the amount of exposure it gets and how many people of the academy might be listening to it, not necessarily the general public. it is the music vid -- music business so people will be thinking, what will sell more records. albums cd's, straining, more exposure is important. >> i think also one interesting thing is additional services have made it much harder in terms of music to discover. they also made it faster to get music itself. if you have not heard back's record, then bam, you have got it. you turn on shazam, identify the artist because you did not hear

ll cool j introduce him, and you are all of a sudden listening to the music. i wonder the importance of discovery so much harder now because people do not list the radio and those events become much more important. >> i completely agree with you. i think some of the incredible combinations, the great thing about the grammys is it is about performances. i think you'll see people speaking about the grammys going forward as more of a discovery event artists combinations you would not have heard about. >> i wonder if more events have to have been there the great important apps might be things like shazam that help people find similar music that they like. >> absolutely. shazam, spotify, there are so many different interesting playlists companies right now helping with discovery. i will say there is an

inflection point between discovery and exposure and your cnet with taylor swift right now where you're in the rarefied air of the brilliant orton. being discovered is great for these services but then when you start to just purely consume only through these services, artists themselves will find themselves hurting their own album business. >> i wonder about the impact of social media were the artist's have a big going on its ram or and end up getting more airtime fancy clothes from the designers, and all that, because social media is leading to their clarity on a lot of other platforms than just recorded music. >> yes. look at megan come up for words this year. she is incredible on social media. social media in general is he coming a direct and him are opportunity for artists. i get a lot of them. i've had two major artist. two of the top artist come to me

last year to figure out, what do i do now that i have a direct to consumer following. you now see beyoncé putting out midnight records hertha bsc a lot of money being made between touring and building a brand that it is not necessarily happening through the sale of music, that social media is playing an incredible part in it and it will reshape the way artists make money in the future. >> absolutely. interesting stuff here to great show. all right. how much do you hate your e-mail ? one of the earliest applications on the web is due for an overhaul. is there any actual hope to improve it? that story is next on bloomberg west. ♪

>> i am cory johnson and mrs. bloomberg west. how many e-mails are in your inbox that you will never look at? one venture capital is on a mission to reimagine e-mail. five years to find something better. there has got to be -- he could not find it so he left to focus on his own solution. sean joins us right now. the e-mail inbox thing, it is an awful problem. i wonder if we go from a world where, people stopped answering the phone, so then they stop and he go to voicemail and then people stop checking their answer machine and then they move on to test in every single innovation get left in the trash i'll -- trash pile of things being ignored. >> is a good observation. we are starting with e-mail but it is ultimately about your

attention. we consider your attention the most russia's resource that you have. we see the inbox growing. that is where we are starting. >> the average person leaves 48% of messages unopened. already, the average prison is getting nearly half of their e-mails worthless, so worthless they do not even bother to open them, let alone the one they -- that are worthless. nobody goes there anymore. >> was the copacabana after there was a fight with mickey mantle. no one goes there anymore because it is too crowded. >> absolutely. ultimately, they just want your attention. think of facebook, who sends over 10 billion e-mails a day to

get you to the website. people are checking the impacts leaving the about, and coming back to that era the solution is actually to put you back in charge. we take your inbox but make it just part of your day as opposed to your whole day. you work out of this timeline more like a to-do list. >> you use your computers to go through the inbox. it is, see what you have done in the past and automate that? >> this part machine but mostly you. people like to see the messages. dopamine, people are addicted. they check their inbox hundreds of times a day. you put it in a place where you can work in peace without being distracted. he think of the future time or place or project you want to work on it and once you do the processing, you're working on

exactly what matters to you. >> you look at the problem for a long time and we have addressed the problem for a long time. i've had a bird's it across the table from me for years. are there solutions that seem like they are the right solutions that are not? people think, i will color code them or i only have three parties or i know which one to get to. >> we have a great blog post on the website. thousands of solutions. we think of it as, when you put -- put it on a sticky note on your phone, and you put a to do in your calendar, you're trying to say, this is what i want to do when. all of these fail. >> integrate a to do calendar is absolutely necessary. >> those are the. harry >> outlook re: does that. >> it doesn't. there together but they're not. any time you move an e-mail from one lays to another, outlook copies it.

now you have it in two places. what this does is truly integrated so it is on your to do list. >> how much of the problem are proprietary e-mail systems the company had to death that do not allow this? >> think of anything you can get on your iphone. we can get access to as well. we can talk to these change server, not yet. a lot of companies -- basically any e-mail service in the cloud we can get access to. >> it is an intriguing problem, one we are all suffering with. people say it is great. thank you very much. it is time to check world news headlines. greece, love you $2 billion in short-term finance the new government is trying to save off a funding crunch. creditors to ease austerity demands. prime minister will present these proposals and the zone

finance ministers in brussels on wednesday. egypt suspended national soccer leagues indefinitely after at least 19 people died over the weekend. the violence began after 10,000 try to enter the stadium without tickets. a reporter fired tear gas in response. verizon another game three years ago left several people dead. opec is cutting its oil supply growth from countries outside opec the most in at least six years. the organization it is the non-opec nation will pop about 400 lap -- 400,000 less or day than estimated because of recent price rows. the seven-month slump putting pressure on u.s. trailers for companies like shell, chevron, and many others to curb spending plans. "bottom line" will be at the top of the hour.

>> 20 leaders meeting in turkey. structural reforms for europe. all of these reforms are forthcoming. greece convinced finance ministers to advance its debt obligations. the former imf first deputy managing director john will join me. we will also have more coming up from washington. peter cook on the meeting from the white house today between president obama and the german chancellor. those stories and more when ice you would've to minutes. -- when i see you in a few minutes. >> a viral video. yes, he dives into a volcano. he will talk to me about how they use technology to capture amazing video inside of one of the hottest and most dangerous places on the earth. ♪

>> sam calls himself and explore an entrepreneur. his start ups connect people with once-in-a-lifetime adventures led to this there it a viral video called volcano diver. nearly 3.7 million views on youtube. now out with a new volcano video sponsored by a handful of technology companies. checked without. >> i have always been an adventure and pushing the boundaries. >> sending in a live volcano where it is flirting poisonous gas -- farting poisonous gas. it is an amazing thing. it is about 1000 degrees when you're approaching that sure of the lob awake.

>> it is interesting to me in a world of go row women think the adventures to come real to people, what the business opportunities are there. >> capturing incredible content with cameras like that, that was part of my intent, going down there with a film crew and capturing it. i partnered with two companies. one was a drone company. the other was a wearable tech company that makes products that measure your emotional response to a given experience. you can imagine that was all over the map. -- it was all over the map. there were peaks of excitement and nervousness. we were able to take the data and overlay over the go row footage i had henry face exactly what i was feeling and come back

with exactly the story i wanted to tell. >> you use the data to add to the narrative. >> that is exactly right. i am passionate about technology in the digital millennial age there is a cool opportunity to emerge in the world. >> what do you mean, passionate about experiences? >> about adventures and activities that are unknown or lesser-known and were ready back to the world on things people do not know exist. >> do you push yourself further because you know everyone sees it? >> that is a good question. there is an element to technology that allows me to capture the experience without detracting from it recently part of the reason why thought it would be interesting to record this. i do not have to talk into a microphone. my body is doing what it is doing and we are able to visualize that in terms of pie

charts we have created. >> how do you get paid back? >> michael moving forward is to create a whole series of adventures and embarq with technology as sponsor the series with companies and tell a story on visual outlets on television. >> a media business, that people will give them the videos or they will own the video. it shall there are some big rings of youtube. >> it is a brilliant model. we have filmmakers pretty stoked to submit films. in my case, i am particularly interested in owning the content and working with a lot of different partners. not necessarily handing out for

free but partnering with a lot of companies including go pro. there are a lot of natural synergies there. >> that dude was behind a viral video. we focus on one number that tells us a whole lot. joining us from san diego paul is with me here. what have you got? >> the number is 9600 where the. >> that would be a big house. >> bigger than my home. >> the my home and my home is big. >> is the home a developer said he might build on the property behind mark zuckerberg's robert he. >> with a wonderful view of mark zuckerberg half his bedroom. that he did not actually tell mark that the bird he would be looking into his bedroom but e-mails reduce in the case we are talking about indicated that would happen.

>> the direct behind mark zuckerberg, he sent him an e-mail and is, you know what as a favor to you, neighbor, at twice of what i paid, i will let you buy some of that property. >> yes, a piece of the property to afford him and the privacy he thinks he deserves. this -- the two negotiated. in the end, mark zuckerberg bought the entire property. >> this guy says mark did not do what he said he would do. >> he claims mark zuckerberg cannot make good on it and will use of the deal, and unwritten spoken agreement to introduce the developer to some of mark zuckerberg's contacts. friends. it is not exactly clear who the people would be. that is the part he did not do and that is the core of the dispute. >> your take?

>> it is easy to look at this and shake, you know privacy not making connections, news are all names some people would feel good about having had happened. i find this stuff just resting and what people do not realize is how widespread it is very people like this literally fall out of trees and your backyard with all kinds of claims and showing up in trying to find it half to end up with a claim against you. it is really awful and just getting worse because of how much visibility you have there it this specific story is the tip of the iceberg right now. >> it does sound like a guy trying to get into his wallet. could it be more? >> i do not think so. a losing promise was likely made and as a result, now this guy feels like he has an edge in is prepared to exploit it to the max there it >> thank you.

and i appreciate seeing you on the show as well. more tomorrow right here. ♪

mark: from bloomberg world headquarters in new york, i'm mark crumpton and this is "bottom line," the intersection of main street and wall street with it -- the to those of you joining us around the world, welcome. we have full coverage of stockton stories making headlines on this monday. shelby holliday has a report on business recovery in ferguson missouri where racial tensions led two days of rioting last summer. we begin with bloomberg's chief washington