>> live from pier 3 in san francisco, welcome to "bloomberg west," where we cover innovation, technology, and the future of business. -- live from new york and stanford west, welcome to "bloomberg west," where we focus on innovation, technology, and the future of business. the s&p 500 briefly crossing a record high before going back. the eurozone picked up momentum at the end of last year, offsetting a surprise drop in u.s. consumer confidence. fighting intensifies in ukraine before the cease-fire deal takes effect sunday. both pro-russian rebels and ukrainians here are trying to maximize their territory. ukrainian bonds fell for the first time in seven days as investors worry that the truce

will not hold. yahoo! is laying off about 125 people 1% of its workforce. a person familiar with the matter says most of the cuts will be among editorial staff in canada. the ceo is looking to trim costs as she invests in high-growth areas like mobile. qualcomm chairman paul jacobs says wearable technology will transform sports. jacobs is co-owner of the san francisco kings joins "market makers," at the nba technology conference in new york. grexit's going to do things for people, give people information about their health and what they are doing. this whole notion that the phone is going to be at the center of a universe of sensors and the environment around us, maybe inside our bodies, it's going to change the way that we are healthy, and our doctors take care of us. at all sorts of things. >> qualcomm parted with tavaris to invest in wearable technology.

moving on. president obama is at stanford university today for the first white house summit on cyber security and consumer protection. the president is signing an executive order aimed at getting companies to share information about cyber threats. assistance from the governments will be there as well apple ceo tim cook. ceos of google, facebook, and yahoo! are all invited and taken a pass. cory johnson is there at stanford with more. >> trish, a big gathering here in the heart of silicon valley in palo alto on the stanford campus. >>some of the biggest names in all of technology, the ceo in the biggest company in and all the world, tim cook of apple is going to be here with remarks within the next hour, ahead of a half-hour speech from president obama to talk about the issue of cyber security. an issue so important to every kind of business, and every company as they get deeper and

deeper into the world of technology, is not just the issues of privacy, but of keeping the data safe. and keeping it safe not just from hackers and attackers, but also say from the federal government. that's with attention is here. a number of ceos, mark zuckerberg, has chosen not to come to this event today. those are companies who have had issues come and raise issues with the nsa for going in and taking data without being asked. it's a big deal here in stamford. >> it is a big deal. that's the big concern. i spoke with general keith alexander. recently about this issue. he's the former head of the nsa. he said he really wants to see tech companies work more closely with governments, and in the meantime, talk to someone like mark andreessen, who is saying no way we have a real problem here, we're essentially other countries are going to say use our version of this technology. you don't want to go near the u.s. because there is that data security threat.

at some point, the reality is you have to bring both sides together. yes you need privacy, but we all need to be secure as well. >> fundamentally this is affecting business and hurting american companies were trying to sell the goods overseas. we just talked to the ceo of symantec and here's what he had to say. we had an interesting conversation about a lot of things. he talked about these issues and how the nsa's policies in the federal government's policies are hurting their ability to do business in europe. take a listen. >> i'm pretty pleased that the white house, through the executive order, which was just issued is really getting behind sharing information. because we need a lot of tools to be able to protect society, whether it's governments, corporations, or individuals. and sharing is one of the things that we need to do to be able to better protect each other. >> we've had a lot of hacks for a lot of years. your business is entirely based

on that. but i feel like the tenor, and maybe the purpose of those attacks has dramatically changed , particularly with the north korean attack on sony, with possible chinese linked to the attack on anthem. what is your perspective? >> you are right. we still see the garden-variety hacking attacks of days past. those used to be a nuisance. we are still seeing those. was capturing everyone's attention by these attacks that are much more persistent and sophisticated, because the severity is so much more with those attacks. all of the technology we're focused on today really is how to protect companies and governments, people against those more persistent types of attacks. >> awareness has never been higher about the risks that businesses face to cyberattacks. what are companies doing that's making them more vulnerable, even as awareness is high? >> i think the technology trends

we are seeing really create more attack services. if you think about more information flowing through the cloud, mobile devices, these type of trends really mean there's a much broader surface for attackers to use. of course, they are looking for the easiest way in. these technology trends which make our lives easier and more convenient are also making our lives more vulnerable. >> what you are saying is the place where the attacks are happening is different. >> that's an interesting struggle for semantic to go from protecting desktop computers to -- how do you look at what the world is? >> our world is still about protecting enterprise or individuals. we are continually increasing the level of sophistication of the technologies that we are using to protect folks. it's still about some of the same control points. the endpoint, web, e-mail, data center security. but now we have to think broader than that to be able to protect more of these attack surfaces.

it's really a layered approach that we need today to be able to protect people. >> 11 chance to talk to the president today, a lot of the top names in silicon valley, tim cook is going to be here as well. a lot ceos of chosen not to be here. the companies that have a contentious relationship with this white house about their nsa policies. do you think the white house has learned how those policies are not just civil liberties concerns, but hurting business? >> i think there's been plenty of dialogue about that. our approaches we need to engage in a conversation. i think the president is well aware that some of the activity that's been done, obviously with edward snowden -- not his doing. >> edward snowden say what you will, there's lots to be said, he let these businesses know that the federal government was seeking around and taking their data. we've heard repeatedly, whether it's from hewlett-packard or cisco, or microsoft, that their customers are wary of doing business with them because they

are based in the u.s., because of that nsa and white house policy. >> we are certainly seeing that. governments in europe are more reluctant to engage companies as well. we have to adapt our business to be confident of that. it's important to stay engaged with the federal government to make sure that the policies that are put in place are really collaborating with us so we can drive an agenda together that projects -- attacks -- protects all of us. >> you have customers in europe that are saying what? >> they are concerned about the data privacy. the issue of data sovereignty, whether the data leaves their country is very important to them. >> today have other options -- do they have other options? it's hard to have a higher cost is because of the dollar. is the real competition -- is there real competition that could take that away? >> they are creating a localized

present so we can keep the data in country. that's one of the challenges for us. the more business you have in europe, 50% of our businesses overseas. we have to look at that, if you are a smaller company, it becomes much more difficult. >> is disconcerting, to say the least. do you think that's one of the messages that presidents will share today? >> are messages were about what we need to do, following on the executive order for information sharing. we are pleased to see the leadership there. semantic is a -- sematech -- semantic -- we want to share christ with private companies, as well as the government. so we can get a better -- >> that was michael brown speaking with cory johnson. we are getting breaking news. i want a good alix steel. >> this is something no one

cared about a few months ago but now there's a twitter handle into this 1:00 on friday. overall, you had rates falling 6%, down by about 98. if you take a look at oil, they were off by about 7%. horizontal drilling, which is the shale drilling fracking that's really been responsible for so much production in the u.s. was off by about 6%. overall, if you take a look at texas, which has down by 9% north dakota which has the ball can show off by 6%, if you take a look at oil today, it's really not doing that much on the news. you had crude up over $50. if you run into the screen here, you can see there's a little spike around 1:00. now with come off that a little bit. not that much movement. the idea being that just because you are cutting back on drilling doesn't necessarily mean you're cutting back on an auction. -- production. future growth is the issue.

we are producing more than we did a month ago. >> alec steal, thank you. still ahead, one small step for jean me -- xiaomi could be a giant leap for the u.s.. plus we had to the nba all-star tech summit for an interview with one of the colorful -- most colorful owners in sports, mark cuban. ♪

>> welcome back. this is "bloomberg west," i'm trish regan. criminal charges filed against the president of argentina. she, her for mr., and supporters are trying to cover up iran's role in a 1994 when azeris bombing. -- buenos aires bombing. prosecutors say they tried to remove names from interval estimate change for trade favors. students protest against college funding cuts.

students enter the building with the education minister was giving a speech. police push them back and had used pepper spray. some students were treated by paramedics. xiaomi is taking its first step towards entering the u.s. market. xiaomi says it's going to launch me.com in the u.s., and other markets in the coming months. the site will not sell the company's popular smartphones but will carry other products. redstone spoke to xiaomi -- brad stone spoke to xiaomi in an exclusive interview. >> we are bringing a very small-scale operation of our e-commerce platform to the u.s., where we are planning to sell simple products to start with. accessories, products we can easily bring to the market because they don't require certification, or a ton of localization or extensive testing. just because we don't have that many resources. at the same time, we want to get into the feedback loop with consumers. it's the first step of beginning to build our brand and becoming

better known amongst the end consumers in the u.s.. >> i wonder why. it is look for markets to expand with low smartphone penetration. with carriers that will allow you to go and sell via your website. is the u.s. market over the long-term appealing to xiaomi? >> we want to be in every market eventually. we've grown up and have scale up and up to get there. of course u.s. is a transcending market. for example, we have new audiophile grade headphones. we would love to get feedback on that product. it would help us make it better for the entire world. we would love for people who are here in the u.s., who are audiophiles to write about it. that we did people in india more interested in this product. the u.s. is an important market in summary different ways.

corrects you were in seven markets outside of mainland china. you've been talking about other markets like brazil and mexico. what are the challenges -- i imagine you live and breathe this stuff every day as the international diet xiaomi -- international guy at xiaomi. what are the challenges? >> the challenges i couldn't have thought of before, even just a few months ago. it varies from one country to the other. in india, for instance, because it such a huge country with so many tier 3, 24 cities, it is a huge challenge. understanding the logistics ecosystems took us a huge amount of time. but we are making a lot of progress. in brazil, its manufacturing. in brazil you have to manufacture locally to be able to sell consumer electronics. because otherwise the taxes are too high. in brazil, we expect that the way in which we communicate with our fans is going to be different. it's going to be much more humor

focused, probably very inappropriate, it's just a different psyche, different sense of humor. we adapt and learn, but there new challenges everywhere. >> what new markets are happening for xiaomi in 2015? >> we are in a markets already we're launching brazil sometime later the semester. after that, we're still kind of thinking about -- we have our eyes and a bunch of different markets which we would like to enter. we are thinking about mexico or thailand, vietnam, maybe russia. it's still in the evaluation stage. we don't have any actual people in these countries yet. >> johnny is on this tremendous growth clip -- xiaomi is on this tremendous growth clip. what is next for the capital story of xiaomi in terms of fundraising for an ipo? >> i'm not the money guy, i

don't spend a lot of time thinking about the finance side of the house. when i can say, and i truly do mean this is that we don't have any plans to go public in the near future. it's great to be a private company, we move really fast and you can change directions quickly without necessarily having to worry about all the various implications of doing that. it's really good to be a private company. with the we can continue to move fast. the way we are, we raise quite a bit of capital, which gives us a tremendous amount of investments runway. obviously, we can invest in a lot of startups, we can help our partners expand manufacturing. there's so much we can do with the capital. we are good for a few years. >> you came to johnny -- xiaomi from google. there is questions around google's stewardship of android. the criticism that is now to close, that it bundles google services together with android and places constraints on carriers. do you agree? how a xiaomi working to the

extent they can with google? >> the most and port in thing to think about what comes android and the role of google is that it's an ecosystem. we are in android ecosystem player, like everybody else. we are committed to compatibility. we are committed to operating with android as is and building our value on top of it. but keeping it as an integral unit. >> apple seems to have had such tremendous success with the iphone 6, breaking all their old records. does the increasing visibility and success in china pose a competitive challenge for xiaomi? are the customer sets different? >> apple is one of the most impressive companies in our industry. the quality of their products is extraordinary. but they are really at a premium price. that's what they're good at. >> me ask you this. over the years i've heard johnny

described as a clone, in particular, some apple executives talked about xiaomi is a clone. you just spent an hour talking to the u.s. press about all the differences in mi-ui. do you think you dispel the criticisms? >> we are giving people their products on the hardware side and the software side. i think it's a matter of time and a matter of having interactions like what we did here today for people to really begin to understand how unique we are. how original our design is. and how significant are aspirations of being a center of innovation are. i think that was very clear today. we brought a team of our best designers even to help us craft our presentation. to make sure what we were delivering was at the level of quality that they themselves expected. >> that was brownstone with -- brad stone with you go borrow. -- hugo barra.

stephanie ruhle is that the all-star tech summit all day today. they have a special guest joining them right now, mr. mark cuban. take it away. >> thanks, trish. when we look at one of the l.a. clippers traded for, it changed the face valuation of teams. if you think about what you paid 15 years ago, and where you value your team and now, what is it one point one $5 billion -- $1.15 billion? >> it's worth more than that. maybe tim cook will buy it. basketball has become a foundation tenant for a lot more than just television. for the clippers, they are a tenant at staples. they have the opportunity at some point to go out and build arena. to build whatever they want to build around that, get a tv deal. basketball has gone from being a franchise to an nba team eating a tentpole. that's what raise the

evaluation. >> when you bought your team, was it a passion project? in hindsight, that's an investment. >> it was not an investment. as a longtime suffering dallas mavericks fan, we were voted the worst professional sports franchise of the 90's. i just wanted a winning team. it was the opening night of the 99, 2000 season. we were undefeated, it wasn't a sellout, and i said i can do a better job than this. that's what happened. >> we have the hawks, right now, a lot of interest there. a lot of people looking in the lake dodgers and clippers also looking there. the brooklyn. different situation, but people i talked to in the sports inc. and community says la's the better situation. >> i don't know if they are for sale. i don't pay that close attention. nba franchises are going to be in french is -- going to be in demand for the reasons i

mentioned. they are a tentpole for real estate they're so much value accrued to the nba, and it's probably -- if you look at the other main franchises, the main sports, we are probably growing the fastest in terms of interest. i think that's a big plus. >> with a scalable opportunity of international. that's when the technology comes in. >> for the nba, it's not just about your local market. it's about being part of an organization only one 30th of an organization that's expanding globally and to places other sports, other than maybe soccer can go. >> you are here specifically today talking about data and analytics. do you feel like teams and management have a true alliance on data mining? >> it's very much analysis -- and allergists -- analogous to the stock market. there's a point in time where if you understood a company, you betrayed as an individual. you saw a lot of daytraders. now we see companies with so much money coming to the market

that it's much more efficient, it's hard to get a date edge. the same thing that's happened in professional sports and basketball specifically. when we started using analytics, we were one of the only teams. give us a big advantage. 2005, 2006, where one of maybe three or four. we still a huge advantage. now in 2015, every nba team uses analytics to a great extent. your advantage, traditionally it's gone. you have to find new things. >> that's the point's rebound and blocks analytics. >> advanced analytics. >> your doctor has a longer term contract than any of her players a rigid. -- your players ever did. you are looking at mental health analytics. you are ahead on that. >> i'm investing in new things. in terms of health analytics, i've invested in a couple he called cabell sports that monitors heart rate and a lot of other things wirelessly so we can capture it. i invested in a company that takes sports view video to the

next level, where rather than just taking cameras and capturing video, and looking for motion and a, goes the exact opposite. it takes cameras, captures video, and turns the whole thing in the data so you can then take almost like an oculus rift type view and look to say ok, dirk is looking this way, why didn't he see this guy? you can re-create what he was seeing to take analytics to the next level. a company which trains you to do certain things. there are so many new places, in an efficient market, that's what you have to do. you have defined new sources of information. >> is there an argument to amaze you are taking away the spirit at the heart of the game? >> i'm not saying don't practice your free throws. that's not it at all. this is just me is the owner. i have to win. i want to have the best franchise possible. i want to put the best team on the court. you can't just make those analyses and those decisions in a vacuum. anyone he would flip a coin to decide what stocks are what indexes you are going to invest in. there's the old random walk down

wall street that says if the markets efficient, you don't have an edge, you just give your money to the least expensive index fund. that's what's happening with traditional advanced analytics today. it's also a random walk through the basketball court. the only way to combat that come in my opinion, is to go out there and find new sources of data and new ways to compete. that's why try to focus on. >> if i talk to an owner and say what are you doing to bring the crowd, make a compelling grid will have wi-fi and broadband. that's no answer. >> two different things. trying to build a team, trying to win games, that's in this bucket. trying to greet a fan experience is a different bucket. i don't want people using wi-fi. that's called look down. what makes going to again unique versus sitting on the couch as the energy you feel. >> case study is the duke university student section. everyone up jumping for two hours. >> they're not doing it. getting away from your device and going out of the house and doing something unique. when you walk into a man's game

-- a maverick scan, i want you to feel the energy. i want you to say oh shoot, i forgot to check my e-mail. we spend as much as all the other teams in all professional sports combined to do original videos that we put up on the jumbotron. we upgraded our big screen in the middle of the arena to at the time, it was the largest indoor screen anywhere in the world, just so we could do better entertainment. >> do want to see her players wearing go pros? >> that's ridiculous. >> not everyone gets to sit on the floor. you have that experience. >> you are not creating enough value of the people -- for the people of the top of the arena. it's not about making them feel like they're missing something it's we have $10 seats. we step two dollars seats. but we stop them because they all got scalped. the $10 seats. i want you to go in there feeling like you can feel the energy, you can see the game. the thing about going to a sporting event, whether it's high school, college, whatever.

there's no place elsewhere when someone ask a shot to win again, you are going to stand up and high five and hug the person next to you. you never met them. you're going to scream it. you noted in front of a tv at home. anything you do that prevents you from clapping, screaming, yelling, stopping, is a mistake. >> how about convenience? convenience, bathroom weights those are things that are in the arena. >> one of my comfy citizens or company, always does this count. so that i can know that here's the line to get in, i've got to do some thing to improve the line. here's the line of the concession stand. here's the traffic flow. have to adapt. it's not just about here's a better way to order something. it's about understanding flow using analytics to understand how your customers interact with the american airlines center. >> is a team owner, does all-star weekend gaming anything? -- does the game mean anything? >> no.

but it's fun for the fans. there are two elements. one is the corporate side, a chance for the nba to engage with our sponsors and have parties and fun. it's a great party weekend. from a fan perspective, is great for kids. when you go to the all-star game, the most rewarding thing to see isn't the jump shot from dirt, is in some thing from lebron or kevin durant or whoever. it's the smiles and the kids faces, because they all have different jerseys from different teams. they come in from out of town, they're screaming and yelling becoming fans of the game. i look at it as a training module. on television, it's fun to watch. you can get into it and watch the fun. >> has it helped basketball that these athletes have become huge brands, style stars? >> absolutely. particularly for the nba. you don't see that another sports. other than the dallas cowboys, you know who tony romo is. name another player? jason witten may be.

on the nba, you can name all 16 players. across the 100 top players, you know the by site. and you know them as social media, and you will be able to interact. >> what is so special about basketball that those players were able to create such brand identity? >> you can see their faces. the way you play the game creates impersonality. you don't really get that as much in football. a lineman making a great block, it doesn't show personality. >> no flair. >> there's no personality. people don't have identities and other sports nearly the way they do in the nba. the nba is continuous, like others. you are watching dirt, kevin durant, tyson chandler. you get to see who they are, how they react to things. a lot of that is replayed in social media, whether it's instagram, twitter, or facebook. >> what is cyber dust?

>> is a response to twitter. right now when you get followers and you post something, you are very concerned about trolls. you have to coach whatever you say and anticipate how someone might respond. that's a problem. it has really tamped down on how people communicate online. with cyber dust you download the app you can communicate one-on-one. but what makes it unique is when you send a message or you post something 30 seconds after it's red, it disappears forever. it's not like snapchat, she's gone. the nsa can't go back and get a message. it's gone. if i have 350,000 followers, i have 2 million users. what happens is if i post something, it's not out there for everyone to see at once. if a troll comes in response, i'm the only one who sees it. it's troll free posting, like twitter, like reddit. >> and a for tim cook about screen grab? [laughter]

>> siebel would like to see that stopped. people talk about that in terms of privacy. the bigger thing is the new version of your family with quicktime, you can attach any iphone and record anything except on cyber dust. we figured out how to stop it. you can record all the conversations so screenshots aren't an issue. you are only getting one screen, you had a blitz from. but the ability of yosemite and quicktime to record anything privacy is done no matter what. encrypt a video, does it matter. you could just capture it on quick time. >> tim cook, hope you're watching. cyber dust is coming after you. mark cuban, have a great all-star weekend. i send it back to you. >> good stuff. that was an investment, buying the mavericks. we do have a big day happening, not just euro the east coast but also out in stanford california.

president obama is holding his first cyber security response conference. they are discussing what used to be done to combat this ever-growing threat. cory johnson is there, and he joins me with more. we were talking earlier you got tim cook there, but not everyone showed up. >> a bunch of ceos stayed away from this. it's normal. i think they are making a statement. you heard the semantic -- symantec guy saying people are worried that it isn't safe. they are worried about these issues of privacy, and when data is safe. it's a pervasive issue, not just for users but her businesses trying to sell stuff to consumers. that's coming out in these meetings the president is having in silicon valley. >> i know you spoke to the rsa president. what was his thought?

>> we talked more about the ways they're going to try to share information. that's a big part of the messaging coming out of these meetings here. the summit the goes all around us. i think that a lot of the discussion has been about the ways that information is not shared. the companies find out about a threat, the government finds out about a threat. they may have both had these conversations, but listen to what the president of the rsa had disabled the notion of sharing. >> i think there's a broader understanding of cyber security at the white house and the federal government, and across the nation. times have changed, the world has changed. you look in the news on a day in, day out basis, we can got basis, you see major corporations being hacked and attacked and broken into. being embarrassed, having their information stolen. there's a different level of awareness around how real the threat is, and how it impacts american corporations and the american people.

>> after september 11, when you were in the white house, the focus of the threat was al qaeda. maybe afghanistan. maybe already thinking about the war in iraq. but it wasn't cyber security. how is the notion of what the technological defensive capability of the country should be changed? x the perceived threat of the time was very focused on terrorism. for obvious reasons. it over shadow and all the thinking happening in the federal government. the reality is cyber is a pervasive threat. we are exposed at all levels across government and the private sector. across our very way of life. the threat actors are fairly consistent. there are terrorist threat actors and fiber. there are cyber criminals. more money is made online in cyber crime and drug trafficking in the u.s.. this is a major industry. >> really? >> really. >> in march of 2011 you had a

big sophisticated cyber attack that your company that protects against cyber attacks. but the discussion outside it wasn't big. the discussion outside of the soanya tax and around the anthem attack recently seems to have entered into the national discourse. what's different? >> anyone experiences a cyber attack thinks it's a big deal. it's a huge discourse, from our perspective. we went through a term in this process, trying to implement transparency and help our customers. and people use our technology and the security market am of the landscape understand what type of attack was unfolding, how the intruders got in, and what types of things people need to do to better protect themselves. so it's absolutely imperative to contact that type of transparency. we can only improve our level of protection if we understand what those threat actors are. >> what do you mean transgressive? -- transparency?

>> who's doing the attack, what type of attack. we disclosed with a laudable degree of transparency to our customers, to our business partners, and two other people in the security community. at the end of the day, it's not us against our competition, or our customers against the competition. it's our society against cyber criminals. >> wider steering that -- why do sharing that information help you be safer? is it the community coming together to figure it out? clicks there are a number of advantages to exercising transparency around a cyber attack. first of all, if you're willing to share with another organization, they are willing to share with you. if we see an attack that uses a certain technique, we share that technique with other parties they know to protect themselves from that technique. we end up stepping up the game in setting up the bar that these criminals have to go through in order to expose an attack

organization. >> your identity and data protection business is one of the fastest-growing parts of rsa. i wonder if you are benefiting from some of those trends about going on the club of different types of protection that are required? >> we are the leader in strong multifactor applications. if you are only using a password these days, i suggest that you are very supposed -- exposed. when you use multifactor identification, whether it's a token or fingerprint, or facial recognition, any of these modern technologies, you really increase the level of protection you afford the system. you increase the level of protection you afford any information you put into any of the sites you interact with. >> do you guys feel like -- finally this nsa issue, that was raised with lots of companies some like rsa cooperative with the government and getting information that they requested. others finding out the nsa was in their systems anyways. is that hurting business?

>> rsa is very careful. we never do anything and have never done anything to actively degree the level of security or protection we apply to our customers. one of the fundamental mind shifts that's occurring in government, and i think is occurring in the technology industry is that organizations can't and shouldn't rely on the government to protect them. it's up to rsa, it's up to every technology company to protect itself. and every company out there to protect itself. and it's of a structure, and not rely on something else which might understand the value of the data or their systems to protect them. >> an interesting guy. he worked in the white house after september 11 on cyber security, now at the front lines of a big corporation, part of emc, interesting stuff. >> i was surprised to hear that cyber is actually more possible for criminals then -- more profitable for criminals and

drug trafficking. >> to business we hardly ever talk about, but the drug trafficking business in america is a huge business multimillion dollars. the notion that cyber criminals are stealing more than drug traffickers were able to take is an amazing thing. >> yet to take it seriously. cory johnson, thank you. by the way, did i tell you it's nine degrees in new york today? clicks it is nine degrees here in palo alto, and then some. >> i figured i should let you know how good you have it out there. [laughter] >> it might hit 70 here today. >> we keep coming back to cory johnson live at stanford university. coming up come after years of shaky relations over the nsa relations, can president obama successfully went back the support of silicon valley? today we speak with aneesh chopra to find out. that's next on "bloomberg west." ♪

>> i'm trish regan this is "bloomberg west." tim cook will be taking the stage soon. president obama's also scheduled to speak in the next hour. as the white house tries to balance the need of the private sector with private to bash with security ken -- private sector security, we've seen a lot of tech ceos indicate that they are not happy with this white house. a lot of major players that should have been an event -- been at an event like today that aren't. cory what does he need to do

right now to repair his relationship with the tech community? >> i think the focus on cyber security not just in a data collection rules is opening up a new kind of dialogue. some people are notable in their absence, but there are more people here that aren't in terms of the biggest leaders encompass in silicon valley. his discussion of what cyber security is and what it means for business is so important. the white house seems to really get to do something here to understand what's going on better, and share information better. no one knows that more than a niche chopra -- aneesh chopra. she joins me now from d.c.. glad to see you, surprised to not see you here. it's this kind of event that's been long coming, yes? >> we had several of these over the last several years. they all are on the spirit of voluntary cooperation. better public, private interface to solve problems.

that's the hallmark of the president's approach. >> earlier, we had someone say when they find out about threats, fewer than 1% of the information that they get comes from the federal government. should the federal government have a more active role to alerting companies of the threats out there affecting companies in the internet? >> that's part of the equation. we also heard them say that 5% comes from their peers. on both sides, sharing across boundaries is critical. the president's actions today released the two how we can accelerate that trend, get more companies sharing with each other. and when appropriate and useful to share with the government obviously, there's a linchpin of work that needs to be done. that's why going deeper on legislation inspires that proponent. this is a very strong first step that the president has the

authority to do. >> what do you think the most possible piece of that will be? >> most of the impact is going to be the voluntary adoption of the cyber security framework that the commerce department has been working on for the last year or so. you saw in till with a headline -- we tried the new framework and it works. -- intel with the headline, we tried the new framework and it works. you are going to see the industry evolve toward something that put this all in a more secure footing. that's the bigger news today. the entry voluntarily adopting a number of these frameworks that have been underway for the last several years. additional support in the term of the president's executive order built on the progress. the big news is the adoption of all these voluntary cyber security standards. >> i'm going to be talking to

intel later today. what should i ask her about this framework? >> it's about a new relationship between the public and private sector. that is to say, you might ask or did you have the opportunity to create your own cyber security framework? did you have a forum where your peers to develop one? the congress to permit lady convening role with the private sector on a voluntary basis. you might hear the role of government convening, bringing people together, sharing technical expertise and collaborating on engineering standards is a very thoughtful and appropriate one to accelerate the adoption of a much-needed framework to protect the private sector. i think the key question to ask is to the government's role in this categorize an effort that wouldn't otherwise have happened? that he will have feedback on whether the strategy of collaborations working. >> when i tend to look down my nose at the notion of blue-ribbon commissions, more

and more panels to share information. is this a really necessary new move by this white house? >> let's go beyond white papers and memos to code and engineering framework. now you are seeing the change. that's the big movement. industries are now starting to collaborate. industries are starting to collaborate to more safely and securely open up energy, data, health the government is playing a convening role in an appropriate watchdog role in certain aspects. but it's really industry led an industry driven. that formula in the coding and engineering work that needs to be done is having a big impact. >> aneesh chopra, thank you. you've seen it from both the white house light of things and a commerce site as well. thank you very much. >> are thanks to both you guys. we continue our coverage there, expecting tim cook to speak

quite shortly in silicon valley. at stanford university. we are back more in minutes ♪

>> welcome back to "bloomberg west."

we are listening in at stanford university to tim cook. >> i appreciate president obama's invitation to discuss these important topics. i want to ignore knowledge the secretary pritzker secretary johnson, lisa monaco, and jeff weise. i'm grateful for the opportunity to join them in discussing rivals the insecurity. at apple, we design products that change people's lives. we believe in the power of values to shape history. and we strive to live those values every single day. we believe the country that made our success possible should be the land of opportunity for every american. that's why we support president obama's connected initiative to equip underserved schools with cutting-edge technologies. it's why we are committed to hiring american suppliers, and it's why we are manufacturing more of our products and

components in the united states. in fact, our products and innovations so far have led to the creation of more than one million american jobs in all 50 states. we believe in leaving the world better than we found it. and that's why we are on track to meet our goal of running our entire company on a new liturgy. -- renewable energy. [laughter] [applause] >> thank you. we believe in human life and human dignity. which is why we put so much thought into how our products are manufactured, not only how they are designed. and we believe deeply that everyone has a right to privacy and security.

and that's why i stand before you today. at apple, we start with this very simple premise -- our customers trust mean everything to us. we spent decades working to earn that trust. that's why privacy and security are built into everyone of our products and services. from their inception. we have strict policies that govern how all data is handled. our networks and systems are segmented. our hardware and software use encryption. we have a security operations team monitoring our infrastructure 20 47. beyond that, we have a straightforward business model that's based on selling the best products and services in the world. not on selling your personal data. [applause]

>> thank you. we don't sell advertisers any information from your e-mail content, from your messages. or your web browsing history. we don't try to monetize the information you store on your iphone or in icloud. when we ask you for data, it's to provide you with better services, and even then you have a choice. you are in the driver seat on how much information you share and when you want to stop sharing it. we set the industry's highest standards and we are deeply committed to living up to them. today, so much of our information is digital. our memories of family and friends come in our photos and videos, our medical history, and

our financial transactions. our most private conversations at home, and it worked. this comes with great benefits. it makes our lives better, easier, healthier. but at apple, we have always known this also comes with a great responsibility. we know hackers are doing everything they can do to steal your data. it's why we have used all the technology at our disposal to create the most secure devices and most secure systems we can. in 2013, more than 13 million americans were victims of identity theft, which is now one of america's fastest growing crimes. in the last few years, hackers

infiltrated some of our biggest banks and companies, stealing the credit card and debit card information of hundreds of millions more. just the other week, we saw hackers steal information from one of america's largest health care providers. the personal impact of these security breaches can be devastating. by clicking on the wrong link or simply using your credit card , to me people and had their identity stolen, their finances threatens, and their lives turned upside down. these cost our economy leaves of dollars every year. -- billions of dollars every year. there is some good news. the good news is we have the ability to protect people from this growing threat. with apple pay, we put in place

a mobile payment system that is significantly more secure than in the old days of the plastic card and the magnetic stripe. this is another product where security wasn't an afterthought. security was part of the reason we developed the technology in the first place. apple pay starts with the premise that your credit card information and purchases are personal to you. and they should stay that way. when you add a card to apple pay, you actual credit card numbers are never stored in your device, or on our servers. instead, for every payments we create a unique one-time code that is only good for that one transaction from your device. your purchases are private. and we don't store the details of those transactions. they remain between