♪ >> live from pier three in san francisco, welcome to "bloomberg west" where we cover technology, innovation, and the future of business. president obama is asking congress to quickly approve a request that would authorize military action against islamic state militants. >> in the days and weeks ahead we will work closely with leaders of congress on both sides of the aisle. i believe this resolution can grow stronger with a dignified debate this moment demands. i am optimistic it can win strong bipartisan support. >> the president says the request is limited in scope and

calls for the uses of ground forces in special circumstances only. he vowed to destroy the islamic state saying the group threatens the u.s. an icy handshake between vladimir putin of russia and the ukrainian president. the talks dragged on into the morning. leaders of france and germany were also present. they're trying to find a solution to the conflict between pro-russian rebels and ukrainian forces. u.n. says the fighting has killed 5500 people. greece and the european union are said to be moving toward an extension of their bailout agreement. the two sides are discussing language that would be used to cement a deal. u.s. stocks went immediately higher on the news saying greece would remain in the eu bailout program.

cisco sales up and profits up 68%, $2.3 billion. the company is rolling out new software networking tools. the company says emerging markets remain a challenge. it is a big hour for one of the biggest names in technology, elon musk. he's the ceo of spacex and tesla. he is a busy dude because spacex is set to launch its latest rocket in just a few moments. we will have that live for you in just a moment. tesla reporting earnings late and may be confusing earnings. we will talk about both of these stories in depth. as we get ready for the spacex thing -- i think it's going to happen any second -- i've read every tesla earnings that there was and this one was confusing and the market was confused when it came out.

>> it was confusing in addition to it being a late release. elon musk said he wanted to delay the release to focus solely on spacex during the 6:00 hour. so here we are with the earnings release that hit later than everyone was expecting. for the most part, the numbers line.the headline number threw everyone off, the adjusted loss share of $.13. analysts predicted a profit for the quarter, so there was confusion and a little bit of shock and i think that's what's sending shares down post-market. next i want to jump down to cape canaveral and see what is going on there. that is a rocket ship surrounded by a bunch of things that are going to measure the rocket ship. >> 3, 2, 1, 0 and lift off. the falcon takes flight, propelling the deep space climate observatory on a million

mile journey to protect our planet earth. >> beautiful. >> we are watching the falcon nine spacecraft take off from the launch center in cape canaveral. this launch has had a number of delays, as these launches often do, whether you are spacex, nasa or anyone else. this will release a satellite and maybe the biggest moment is going to be the attempt at a landing on a floating barge, which elon musk who has a flair for the dramatic is calling an automated drone floating at sea. they are going to try to land this thing on a barge of the first stage of this rocket as it separates. the last one was what they

called a hard landing. you and i might call it a crash. but it looks like the falcon nine spacecraft is well on its way. what do you make of this as we see this spacex ship up there? what is important about this particular launch? >> what is interesting is we are watching a part of history. i would expect this is the last satellite being launched by the clinton administration. 17 years ago, vice president al gore had the core of the idea that became the satellite which would do three things -- monitor the sun for potential magnetic outbursts that could disable technology here on earth. it is going to measure the energy balance of the earth itself, how much energy comes in and how much goes out. we have a problem these days where there's not as much energy coming out as going in and we call that global warming. finally, it is going to take

atmospheric and cloud measurements. most interestingly, later this year, it will start streaming back live video of the earth spinning so we can all watch ourselves twirl. >> it is a go pro on a satellite. your tax dollars at work. this satellite al gore conceived in the middle of the night was the beginning of the things that led to his understanding in the issue of global warming. >> that is true and there is an elon musk element that goes back even farther than this plan launch. more than 10 years ago, this satellite was supposed to launch on the spaceship columbia, the very same mission when it tragically disintegrated coming back to earth. after that, nasa threw open a request for ideas of how to get this satellite into space. they talked to europe and japan. elon musk came forward and said he would like to help out but at

this time, spacex was only about a year old. >> i misspoke, apparently. this is not the rocket that will test the soft landing on the barge. that is a later spacex flight. i do want to return to the issue of tesla. the big number everyone was looking for is the number they usually report in the first or second sentence of the press release -- how many cars they sold. everyone was looking for a number of 11,127 or so. thus what the company said they would do. instead of the number of cars they sold, they put a number of like 11,800 something, but it was a number of cars they produced. for the first time ever, the number was a big miss.

it was a lot less than the company had guided toward, a lot less when they are looking for a sequential increase. >> it was certainly a much lower number than anticipated. analysts had expected it because of the delays. they caught a software bug right before the launch and decided to delay it. between that and some weather delays and customers going on vacation, they said they could not hit the delivery target. they did say 1400 cars were pulled into first quarter, so if you add the 9800 is 1400, you are right around their guidance. they did not execute, and elon musk is known for executing on these targets he sets, which is why wall street likes him. >> i will put it in the phrase

of a question. the excuses were thick and heavy in this release. let me read the excuses -- this amazing sentence in a letter to shareholders. while we were able to recover the loss, delivering the cars was physically impossible due to the combination of customers being on vacation, severe winter weather and shipping problems with actual ships. >> certainly, the severe winter weather, that sounded like last year when people were having weather issues, so that was unexpected and very not like tesla to not hit those targets and had they just said it was -- and had they just said it was because of the delay, maybe

people would not have been so jarred by it. they also did cite the stronger dollar, which is something everyone has their eye on right now. it was certainly interesting and i'm sure elon musk will be getting some questions about it on the call in a couple of hours. >> outside of being surprised around -- about vacations around holidays, does elon musk not know about winter weather at tesla but elon musk at spacex knows about winter weather? >> i think maybe they should have sent up a weather satellite. >> being pointed in the wrong direction can be a problem whether it's a spacecraft or an electric car or stock price. thank you very much. we appreciate it. the rapid rise of on-demand shipping.

hassle-free packing with companies like uber and sidecar getting into the game. we will talk to that ceo, next. ♪

>> i'm cory johnson and this is "bloomberg west." the captain of the costa concordia has been convicted of manslaughter three years after the ship capsized off the coast of italy. he was sentenced to 16 years in prison, but he can appeal. he denied any wrongdoing, but prosecutors say he abandoned ship. 32 people were killed in the disaster. brazilian police have seized a yacht, speedboat and three jet skis owned by former billionaire issa batista after a judge ordered the seizure of all of

his assets in brazil. he's facing charges for insider trading and market manipulation. four of his startups have gone bankrupt. baidu says sales grew 47% and mobile sales were 42% of that. but earnings fell short of estimates as spending rose, thus a big selloff in after hours. we return now to the goldman sachs tech and internet conference here in san francisco, down the street from me. brad stone has been talking to a bunch of interesting people the last two days, including kevin gibbon who is aiming to disrupt the 200-year-old shipping industry. it is called shyp. >> for folks who may not be familiar with you, you are just in new york, san francisco and miami, how is it different from

the brown shirted ups guy coming to your door to pick up your package? >> we designed this to eliminate all the hassle of shipping. currently, you have to go to ups or the post office, there's a lot of hassle and friction in that process -- packaging, getting it into the hands of the carrier, waiting in line -- we eliminate everything. we are an on-demand service. take a picture of what you want to ship -- say you sold your iphone on ebay. we will come pick it up, take it to our warehouse, professionally package it and ship. we do actually ship through the major carriers. >> last year was a big year. you introduced the service in 3 cities. what does the next year hold? >> we just launched on android. early numbers are looking great and what we are seeing is a shift of people wanting to do

returns. we did not build the service for that, but we find people are using it for that and we are looking deep into that >> e-commerce orders. you partnered with banana republic -- is it similar to that where you ally with retailers? >> it's kind of on the other end. we had a partnership and we were in their stores. you purchase your gift and then you can ship right from the store. it was a chance to activate people for our current service. with the returns, it's a little different -- you bought something on amazon and it didn't fit or you did like it. it's around that and making that as simple as possible. >> a five dollar flat fee in addition to the shipping rate. is that the primary revenue model and is it just a starting

point? that you can reduce as you scale? >> five dollars more or less just covers the cost of going to your home. where we make the money is on the volume discount. instead of ups having to make a thousand pickups around the city, they come to one location, our warehouse where we collect the packed goods and pass it off to them and that eliminates a majority of their cost and it's how we make our difference on the spread. >> are the ubers of the world competitors? >> we are not a courier service. we are a shipping company. it is about getting an item from where you are at to anywhere in the world. we have a sophisticated warehouse, we have heavy-duty machinery and high-tech packing technicians. it's all about getting that item anywhere. >> thank you very much for joining us.

>> thank you very much. we will be right back. ♪

♪ >> is the end of an era for comedy central and the daily show. jon stewart announcing he is calling it quits. >> 17 years is the longest i've ever held a job in my life by 16 years and five months. the upshot there being that i'm a terrible employee. but in my heart, i know it's time for someone else to have that opportunity.

>> the show launched back in 1999 and while it has changed the way young adults have consumed news, has changed the media business in some important ways. what's going to happen to that audience and can comedy central keep the "daily show" brand? i talked to the senior editor and producer of now this and talked about what it meant for the media business. >> jon stewart has done an amazing job of establishing a brand millenials want to tune into and listen to. the way he has done that is by being fearless and calling bs on politicians and the media itself every day. >> the daily aspect of it is fairly enormous, just in how often it has been there but are there certain things that have put the show on the map that has leapfrogged other traditional media, nightly news, whatever voices were coming for that same generation but not reaching

them? >> in terms of reaching them jon stewart has done a great job. comedy central has done a great job in terms of putting it on social and mobile, which is where the news is and where people are consuming the news. as they have adapted, they've adapted to where the news is going and where young people are consuming the news. >> it is fairly amazing what they have done with digital and how successful it has been. when john stewart joined the show after it launched -- let's not forget the great craig kilborn years -- they were not thinking about new media when they launched this old media show. the cable tv talkshow had been done for a while. what works for them in new media? >> the adaptability they were able to do and do quickly.

it has been interesting to watch larry wilmore and the nightly show. now this is taking advantage of the mobile video opportunity. just in terms of being able to share clips and segments you can get from the shows, comedy central has done an outstanding job in adapting to social consumption. >> there have been so many people -- you mentioned larry wilmore, but there are so many others who have gone on to big things from that show, most of whom are pretty busy but you wonder how many might be considered as a replacement for john stewart. >> the cnn money headline they ran with today was did comedy central lose three of their biggest stars in a year or two years? the timing is a little unfortunate. it was summer of 2013 when john oliver stepped in and guest

hosted. some people wondered if he was up to the job. he did an amazing job and landed his own successful series on hbo. it's unfortunate he can't just take over because i think he'd be the natural replacement, but there are a good stable of correspondents and diverse correspondents with jessica williams and samantha bee and others that they could choose from to maybe establish their own brand. >> google has created a new high-end robot named spot and you can kick him, just like a real dog. don't kick a real dog unless you are michael vick. we are going to talk about with this robot dog means for the future of google, the future technology -- future of data collection. you can always catch us on your favorite device. we're streaming on your favorite device, amazon tv, apple tv, you

name it, we are there. ♪

♪ >> you are watching "bloomberg west" where we cover innovation, technology and the future of business. i'm cory johnson. is uber worried about google rolling out a series of driverless cars? a board member spoke at the goldman sachs technology conference. >> a lot of really large companies have done a good job at what i would call distracting the press by profiling self driving cars or drones. how many large market cap companies have done a drone pr

they want to appear innovative -- event? they want to appear innovative and this kind of thing but ask any analyst covering google where are the revenues for autonomous cars in the next five or 10 years and i know the answer, it's zero. >> zero. revenue aside, google is spending a lot of money on those moon shots and that includes the acquisition of a robot company boston dynamics. and innovation is far from slowing down. they just released video of a new robot dog. it's named bear. that's my dogs name. it's climbing stairs, it's handling the rugged terrain of a parking lot -- it's an amazing thing. joining me from massachusetts is a robotics research director. first of all, the viewers should enjoy your face because the rest

of this segment, we are going to roll lots of robot video because it's amazing to look at, but what are we seeing? why is it important for this dog to walk? >> it is amazing stuff and you have to realize a lot of it was left on the cutting room floor. it's important to make this robot walk or do research on this robot because there's a number of capabilities that will be built out of it. you have to stop thinking of it as google developing robots and think of it as developing a robotics solution stack which would generate new products in new types of marketplaces. this is a data play, not a hardware play. what they have done by purchasing boston dynamics and then announcing they were purchasing seven other companies, they are acquiring the best researchers and

roboticists in the world. they also have ties with android and java and something called robot operating system. yes, it is eyecandy for roboticists and people in the public, but substantial things can be built out of this on the data side. >> when the guy kicks the dog, that is teaching the robot of the future to take over. this is the beginning of the terminator. i don't understand about the data. what kinds of data are they going to gather from these robots that they could not get any other way? >> for example, if you look at these robotics systems, there's only so much they can keep on the individual platforms in terms of intelligence. they need access to other things. if you have an indexed internet, which is exactly what google

does, you can have indexes of things like object models to recognize an object or recognize things like how to open up certain doors or move up certain types of stairs or how to drive in traffic. there are piles and piles of data which drives intelligence for these types of systems. that is where the data component comes in. it's also important to note that the director of google's robotics initiative, the first time i heard him speak was on the subject of cloud-based robotics. it is ubiquitous intelligence being actualized in robotic systems that work in the real world. >> i don't see a place where you've got a cow that runs across the parking lot leading to more impressions for advertising. is it about understanding the context of movement so that you can somehow perform better search, display better ads -- or am i too small-minded to imagine

what this might mean for a company that is in the business of selling ads. >> i don't think they know how this is going to play out, but think of it more in terms of a research platform. to work on these robots and how these robots not only handled the dynamic walking, also how to work in the physical environment and interact with humans. once you are able to work in the physical environment, you're gathering more information than is limited to the virtual world. think of these things in terms of a mobile sensor and you get the idea, hence the purchase. a device in the home that acquires information. it can be monetized in a number of different ways. >> so they will do the google

street project with robots driving around and know where people are and what they do so they can be and a better position to contextualize things like search? >> it might move beyond advertising and search. what i do know is what they have with these acquisitions is a heap of smart people doing core research to develop a solution stack that is hardware-based that ties in with data in a number of different ways. not just what people are doing but images of different types of environments. you can build maps with people taking pictures with their cell phone as opposed to having a car drive around. you can build a functional map and learn how people move through their physical environment. it's not just clicking on ads it's how to move from one place to another or how to move

up stairs or what that person's face means. who is that person? the way to gather to information is through actuated sensors that can move in physical environments. >> is the mobility aspect -- is that really hard or important for these guys? can you see something in the video something that is groundbreaking in the robot world? >> in terms of that particular video, couple of things pop-out. one is they are not using gas power motors and they are running the device indoors. it's smaller than earlier models developed for the military, so it's 160 pounds as opposed to 240 pounds. these are products that show people what they can do and i suspect what's being included is a whole lot more smart software.

>> i have to think with all of the kicking of that dog that michael vick was involved somewhere. thank you very much. we appreciate it. coming up, the mission to win investments from silicon valley to silicon roundabout. we will talk about the funding of london startups, next. ♪

>> i'm cory johnson and this is "bloomberg west." london mayor boris johnson is in town highlighting a new report showing u.s. investors are putting more money into london startups than ever before, and investing more than $795 million in two startups, more than half of the city's venture capital funding in 2014. my guest played a large role in

recruiting those investors. the digital adviser to the prime minister joins me from new york. but what's going on in london? how would it look different than what i had seen four or five years ago? >> the economy has completely transformed. the government recognized there were green shoots and tried to recognize how we could help these companies grow and give them the incentives they need. i'm happy to report we are the world's largest digital economy in terms of percentage of gdp. we will be at 12.4% of gdp next year. >> that's london? >> the u.k. >> the entire u.k.. that's more than any other country? >> it's the highest percentage of gdp of any g-20 country, so it is a thriving sector. we are the largest e-commerce participants in the economy. we spend more on e-commerce than

any other country in europe and are leading the way on all the major metrics. >> what industries are leading that in the u.k.? >> last week, we did a big-data analysis report of 21 clusters across the country. each of those clusters has unique strengths based on the universities that are there. we have four of the top 10 world universities and many other great ones, but we are experts in big data and analytics, machine learning, natural language processing. the mayor was talking about some of the work we are doing to build the fintech industry. >> there are all of these issues coming up with the fcc and rules about providing broadband and services and mergers with comcast and time warner and what that might mean for a digital economy. what's the role of the government in providing high-speed internet to homes and

businesses? >> on the broader perspective, the biggest concern we have in the u.k. government is we are for innovation, not regulation. we've seen companies have a lot of challenges with european regulators. we believe in the digital single market and want to lead the way in terms of europe and smoothing out bumps for those companies. economics always wins, so as long as people's privacy is protected and we can support a fair and safe system, we need to make sure we focus on innovation. >> you think if we started pronouncing privacy that way -- >> i've been there 15 years. i've joined the house of lords. >> i'm all for it. there is a role for government to set minimum standards and make sure it reaches everybody

not just the people who can afford it, to make an economy grow together. does the government have a different approach there? >> what we have found is technology and digital is empowering across the country. there's was a lot of criticism that the recovery started in london but was not extending to the rest of the country, primarily the north. we put some effort into working with organizations north of the country and put some resources there and started working with clusters about year and a half ago. now we see they are coming along and they are growing fast, but from a smaller base, but it is really encouraging. >> thank you very much. >> now time for your bloomberg world news headlines. the top u.s. intelligence chief says syria is attracting an unprecedented number of westerners to the war zone, more

than 20,000 foreign fighters in the country, 3400 are westerners. it has increased 70% in the last four months. it poses a greater threat to u.s. security. samsung plans to release two new versions of the galaxy smartphone next month. one of those, the model on display covering three sides of the phone. the phones will have all metal bodies and will use samsung's most advanced processors. ee, the biggest mobilephone operator in the u.k. is spending $2 billion in the next 3 years to improve wireless coverage and improve 5g networks and drones. they were recently acquired by bg. 16 million users and growing --

gogobot, you don't know it, but you will hear about it soon right here on "bloomberg west." ♪

>> you are watching "bloomberg west." i'm cory johnson. there's a lot of innovation -- gogobot aims to help book trips

based on personal style digitally. with an investment from home away, gogobot is targeting wanderlust millenials. the ceo joins me out. -- joins me now. what is gogobot? >> gogobot is a service that makes it easy for anyone to find the best places to stay, eat or play in many destinations across the world. unlike other travel sites, we connect you with advice and reviews from people who travel the way you do. say you are a family traveler or business traveler -- so that you always have the inside scoop wherever you go. >> what's the thing that isn't being done that you guys have got? >> say you are planning a trip to rome. there are dozens of where i can search by price for a hotel or get a list of the top attractions. but that's not the end of the story. every user has their own story that they are looking for. maybe you are going on a business trip and need to figure out a great business hotel and cool restaurants to take your

clients or you might be going with kids and you want to teach them about the city, but you also want to find some playgrounds and fun things to do. we have a concept called tribes where we connect you. we have 19 different tribes. >> like cannibals? that's the 20th tribe. essentially, this is a psychographic, not quite demographic profile, but a notion of the kind of trip someone might want to plan -- we had kim help me pick what she thought were my tribes. family traveler, foodie, green traveler, wellness, i will go with that. you select those and where did your data come from and how do i end up suggestions i might actually care about? >> the tribes are really

communities, so people are sharing their best experiences as they are traveling around. if you are the wellness tribes or families tribe, other people interested in those things say when i was in maui, there was a great yoga studio i went to and we went to an amazing beach with the kids. instead of digging through piles of anonymous reviews, we let you tap into those people and see any destination through the lens of your tribes. >> every user you get adds more data to your database. you found out these families booked this resort or that kind of car. how do you get to data about which playgrounds they went to or if they did not book a restaurant through gogobot? >> we have a huge community of people sharing reviews. we have 850,000 reviews, more than 4 million photos, and these are things people are sharing

back so you can discover them. hotels, things to do and where to eat. >> 60 million users isn't nothing. >> we had 16 million people in the last year come to gogobot. they love gogobot because it helps them get down to the meat of things. travel is not about booking hotels in your price range. it's about a story you want to remember. it's about a little cafe where they had amazing coffee and home-baked bread or a hotel with a view over the city. those are the things you can't find on other sites. >> where is the money? how do you get paid? >> we make money through a couple of different revenue streams. the first is through hotel bookings. people come to gogobot to research the best hotels for them. we have a price comparison feature that lets you see the best prices from expedia or priceline, so you know you're

getting the best deal. we get paid each time you do that. if you are looking for a restaurant, we've integrated opentable. >> interesting stuff. the bwest byte, one number that tells us a whole lot. jordan robinson joins me from d.c. >> we've got the number 90. that's the number of days google has given other tech companies to patch their systems after google alerts them of problems. you would think 90 days would be a long time, but both apple and microsoft both missed the deadlines and found their vulnerabilities posted on the google corporate blog. and these companies are at each others throats about patching security holes before the government can find them. >>what are they, tattletales? what is google's role? i caught you and your company stinks with your cyber security.

why is google doing this? >> there is a serious issue underlying this which is google has ramped up its security research in light of the nsa disclosures, and google is saying to even companies like microsoft that have established policies, you are not moving fast enough. you've got to move faster. and 90 days is a good amount of time. it's trying to provoke the industry into an accelerated rhythm on this process and they are saying if you don't fix this, hackers and governments will get inside your system. >> how to make friends and influence people the google way. thank you very much. you can get the latest headlines all the time on your phone tablet and on bloomberg radio. we will see you tomorrow on "bloomberg west." ♪

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