>> live from pier 3 in san francisco, this is "bloomberg west." i'm cory johnson. benjamin netanyahu will tell congress that he has a moral obligation to speak out against the irani and regime. he previewed the addressee will deliver to a joint session of congress tomorrow on why he is trying to seek a potential ukrainian nuclear deal in direct challenge to president obama. >> what is not the purpose of

that speech -- my speech is not intended to show any disrespect to president obama or the esteemed office that he holds. i have great respect for both. [applause] >> netanyahu accepted the invitation to speak by house speaker john boehner over the objection of the white house. david cameron has pledged to tackle the u.k. housing shortage. president obama is reviewing a task force for evaluating police procedures. the task force recommends increased use of body cameras and more community engagement by local officers. in remarks today, the president said that the riots in ferguson exposed "deep-rooted frustration with local police."

and more fallout in the death of boris nemetsov. he was a frequent critic of the putin administration. it is a record day on wall street. we know how that works out -- our chief marcus correspondent scarlet fu joins us. i remember the last one, the last one ending. tommy about this one. >> -- tell me about this one. >> march 2000. the nasdaq set an all-time high. we know what happened after that. it was a precipitous drop. if you look at how the nasdaq has been performing all year long, it has been outperforming

the s&p 500 and dell -- dow. that follows for the five-year track record and the 10-year track record. and if you consider that the nasdaq is made up of more volatile stocks, tech, low cap stocks, that makes sense. it reached 4000 the last time november 20 6, 2013, and since then it has been 313 trading day since we reached the next milestone, 5000. back in 1999, it took 71 actual days to get from 4000 to 5000. it has been a much longer ride to get to that 5000-level this time. this time we have companies that are more mature and it is more difficult to calculate a price to earnings ratio. leading the way, we have monster

beverage with a gain of 52,000% followed by green mountain at 32,000%. cory? >> scarlet fu, our chief marcus correspondent. thank you very much. we appreciate it. lead tech executives are gathered for the mobile world conference trade show. it is a big event in the world of networking and mobile and it's a crucial time for the industry. here to tell us what is going on, brad stone of "is this week." google is facing privacy challenges. new companies like xiaomi are getting started. is there one thing that you can pick out of the conference this year? >> look, this is the first time i have been to the show. for me, this is like fashion week for the mobile phone industry. every mobile phone company puts its latest and greatest down the runway. for samsung, it is the galaxy 6 and 6 edge.

we have new watches. if there is a theme, these devices now look as expensive as they cost. they have ditched the plastic back, they are cased in metal. but as interesting as that is -- we talked about a lot of these issues. one of these, google would operate its own wireless network, the nvno. take a look. >> there have been reports that google is talking to wireless carriers about a branded network. what can you tell us about those talks? >> i have seen articles about it. this is how i would describe it. the core of android, everything we do, we work with partners.

anything we do with connectivity would have the same attributes to it. we have always tried to push the boundaries of what is next. we have done that with hardware and software. we do that with nexis devices today. all innovations in computing happen at the intersection of hardware and software. for you to drive the machinations you need to do, you need to drive both. this is why we do devices. we do this in partnership with our oem. early on, people say are you competing with the oem industry? we sell -- definitely, all of these competitors in the industry. we do it with enough scale to achieve impacts. we do it through nexis.

i think we are at a stage where it is important to think about hardware, software, and connectivity together, and particularly when you think about you need connectivity on your watch. if you think of android auto, you need connectivity to do that, too. we want to experiment along those lines. we do not intend to be a network with scale. carriers provide services. and we are actually working with carrier partners. but you will see announced in the coming months, our goal here -- [indiscernible] hopefully we will get traction. again, we will do it at a small enough scale, so just like the devices, people can see what we are doing and hopefully they will see what the project is about. >> i do wonder about your

carrier partners -- maybe verizon or at&t -- might look at this and wonder if google one of their big partners on android is becoming a competitor? >> you know, we have had years of running android and how we do it and we keep getting asked these questions. we have talked about all this. we are in fact working with multi carrier to do what we are doing. i think people in the community know what they are doing and in the end, at&t, mobile, sprint and the u.s., what powers most of android phone, and the model works extremely well for us. there is no reason for us to do something else. >> is there a conviction at google that there means to be more at lower prices? >> for example, thinking through areas like how wi-fi and cellular networks work together

and how you can make it seem less -- seamless? if you have two people making phone calls them a call drops, maybe you can connect back automatically. these are all innovations we can work out and we expect our carrier partners to carry out these ideas. these are the kinds of things we're trying to do. >> wow coopitition and frenemies is cute in silicon valley, but they will be a distraction if they offer their own service. >> that is right, and it is strange for google to rollout the ogle fiber network in the states. you can tell that there is a believe i google that the carriers wireline have been moving too slow, they should be doing more. but google is also a partner to those companies. also interesting -- google and

facebook had a make nice toward each other. i asked him, is your vision compatible with mark zuckerberg's vision? he is talking nice, but i think there is subtext of competition also. give a listen to some of his answers. >> later today, we will hear from mark zuckerberg from facebook, and he has expressed a similar vision, right? a bringing connectivity to parts of the world that do not have it . do you feel like your visions are all that different? and if not candy companies work together? >> no one company can do this. it is bringing connectivity at scale to 4 billion people. we are happy to provide our services along the internet. it is complementary, but what we're trying to do is something different. we are trying to scale the backbone for physical

connectivity at scale across the globe. it is different as well. i think at a high level i'm glad that companies like google, facebook, and other carrier partners around the world -- you need to make this happen and i'm glad that we are working on that. >> and the fcc making an important decision about limiting the ability of carriers to decide what content consumers will get. and now we have google and facebook out there, offering new technological ideas about how to offer the internet from them, so users will pick their services first. did they talk about that at the conference today? >> yes, here is what he had to say about the idea of flying drones and spreading the internet down to the ground. >> i think the best is the

fringe of the work that is going on. the reality is 90% of people in the world actually live within range of a network. that is because of the great work that the industry is already done. what we talk about satellites and all of this up, the real work happens here. >> the good stuff. if that was not enough zuck for you, we have more coming up when "bloomberg west" continues. ♪

>> let's look at our bloomberg top headlines. secretary of state john kerry spoke to reporters in geneva. >> right now, no deal exists. no partial deal exists and unless they ran is able to make the difficult decisions, there will not be a deal. >> israeli prime minister

benjamin netanyahu says any deal with iran must be delayed saying it with threaten the security of israel. he will address a joint session of congress tomorrow. u.s. senator barbara mikulski of maryland has said she will not seek a sixth term next year. >> i have thought long and hard about the next two years. i had to ask this question. who am i campaigning for? in my campaigning for me or for my constituents? i had to decide if i wanted to spend my time fighting for my job or fighting for their jobs? do i spend my time raising money , or do i spend my time raising hell? >> mikulski served a decade in the house before she was elected in 1986 for the first of five senate terms.

more lawsuits after a 60 minutes report said that the company was selling wood pulp with illegal levels of from aldehyde. -- formaldehyde. lumbar liquidators says that 60 minutes it used an improper test and all of its products are safe. i return to our coverage of the mobile world conference in barcelona. mark zuckerberg the keynote on a wide range of topics including internet.org and facebook's partnership with telecom operators. the conversation was kicked off by talking about facebook's mission to connect the world. >> we want to help people connect and i mean something a little bit different from operators. we are not doing the actual digital connecting.

we want to connect people and share with each other and share the moments of their life and be on top of that. but you know when people have access to that, you can stick close to the people you love the business tools you need to communicate with customers, find new customers. you get access to information health information to stay healthy, health information, to find jobs. it's incredibly important. that is why it is good it is something we are all focused on. >> you have had a big travel year. you have been to mexico, china, indonesia, india. what have you learned? did i miss anywhere? >> i think you got almost everything. i do not travel that much. it has been an interesting year. i have been going around meeting with partners in government and whenever i go to a new place, i tried to also see how

conductivity and using facebook and our apps specifically as well are impacting people. and the thing that is so striking to me is the links that people will go to -- i went to go visit from jakarta and i was in this city and there was a village that they called a cyber village because the citizens basically had all organized around lobbying their government to get connectivity to this one place and then a bunch of people moved there based on the fact that they wanted to be connected, and that was the primary thing that was determining where they chose to live. there are stories like that wherever you go around the world, especially in developing countries. it is really inspiring to see. you work on this, you hear the stories about how it helps

people stay connected to people they care about and grows the economy, but actually talking to people who fought hard to get enabled connectivity in their home and to get the benefits of that -- >> you went to jakarta, you went to the cyber connected village in jakarta? but the innovation round of putting together the project? >> the effort. there were specific things they needed the government to unlock in order to make that a possibility. >> right. >> which is interesting. there is a different thing wherever you go. in india, it is interesting to see how prime minister modi use the internet as a primary campaigning tool to connect with people. i visited a village that had just gotten connected and i thought it was really interesting to see how the students were growing up with the internet using it to learn and basically we had all of these adults asking kids how

to do stuff and look stuff up because the kids were looking up how to use the internet to learn and that was something the older generation did not have. >> that was mark zuckerberg. "bloomberg west" will be right back. ♪

>> is airbnb worth $20 billion? the latest valuation gives them that value. five percent of the company airbnb, $20 billion, more than starwood. our correspondent joins us in new york. we have heard rumors of a round. raising $1 billion is unheard

of, let alone a $20 billion valuation. >> i don't know if i am surprising more. >> what is it about airbnb that causes this excitement? is it another company like google or spacex or snapchat. because they are there, they can get it? or is it something particular drawing money for airbnb? >> they are generating revenue. they have delivered the world a service that is cheaper and often more fun than a hotel experience. this is a real business, and i think, here to stay. it is remarkable how different the companies are culturally given that airbnb -- it is

really the company itself. so, i think at this point, investors are really throwing money at these hot startups in the valley. it shows that we have real revenue models and i think it is also a bit of the game --bit of a game. >> who was playing this game? >> at this point, this kind of valuation, this is the pre-ipo. hedge funds, private equity funds, mu -- mutual funds. we do not know the identities. to be sure the valuation could get even higher than $20 billion. and you know, this morning we had on our show a venture capitalist saying that investors are very savvy and there is nothing to be afraid of. i'm not sure i agree. >> yeah, we have heard that one

before. serena saito, thank you very much. "bloomberg west" will be right back. ♪

>> you are watching "bloomberg west" where we focus on innovation, technology, and the future of business. here are the headlines. the institute of supply management index dropped to 52 .9 percent from 53.5%, among muted demand abroad and workforce slowing. it is really prime minister benjamin netanyahu giving a preview to his remarks to congress tonight. netanyahu insisted that israel

should be a bipartisan concern in the u.s. >> the last thing that anyone who cares about israel the last thing that i would want is for israel to become a partisan issue, and i regret that some people have misperceived my visit here this week as doing that. israel has always been a bipartisan issue. israel should always remain a bipartisan issue. >> net yahoo!'s appearance during an election campaign in israel was protested -- netanyahu's appearance during an election campaign in israel was protested by the white house. death threats to twitter employees believed to be in response to blocking twitter accounts. jack dorsey received a message that said "your virtual war on's will result in a real war

against you." rebekah brooks is once again going to work for rupert murdoch, just eight months after being cleared of phone hacking charges. she will take on a senior role in dublin, to help the newsroom find in-depth video content from the web. samsung getting early praise for its new high-end smart phone the galaxy s6 and s6 edge. the model stretches across the front and two sides of the model. it uses aluminum casing and a fingerprint processor. and the mobile world congress -- earlier we heard mark zuckerberg speaking at the event, detailing plans to wire the world with internet.org. one of their partners, the tech

giant milk time. brad soon joins us with an important milk, eggs at -- with an important exec. hi brad. >> that's right. i am year when mario from millicom. they have 16 million customers in latin america and africa. thank you for being here. you were just on stage with mark zuckerberg. tell us about the work you are doing with facebook. >> absolutely. we are working to connect to the consumer to the internet, trying to meet basic needs through initiatives like the one we are running with facebook. we also have other initiatives. it is an art and a science to get the mix together. >> three countries.

>> three countries, of which the last is columbia. the first one in latin america. the interesting part of the lunch in columbia is it makes for an important update in the number of consumers. >> what is the broadband penetration going to look like before you start rolling out with internet.org? how many customers were using the data services? >> in our customer base, we are 25% to 35% penetration of smartphones. in general, in this economy, columbia -- colombia being one of the most advanced in latin america, penetration is 25% to

35%. so roughly 60% still has to experience it. >> another challenge, another country, tanzania, the challenge is economic. do people know about these services? is it too expensive to use them? >> it is and it isn't. we have a role in making things affordable to people. but secondly, it is important to understand what good can the internet do for me. it our job is to work with facebook and other partners, to bring that down, weiss is good for me, the consumer. why should i move into the digital life? >> what is the answer to that question? what is facebook resenting to a customer in tanzania that takes -- presenting to a customer in

kissimmee of that protestant to take that extra step into the digital world? >> we're working with many partners, facebook being one of them, but there are many. it is like using air-conditioning. you do not want to go back to living without air conditioning right? it is like that. it is so versatile. what is good for you may be different from what is good for me. but there are services that are so power -- popular, like facebook, for example. that is why we partner up with them. we are very similar in terms of our dna, entrepreneurial, speed, make quick decisions. >> the panel you just sat on with mark zuckerberg there is a worry that some of facebook's services -- what's at, the company that facebook -- whatsapp the company that

facebook bought last year -- there is a tension. what is your take on that? >> they also want to listen. they do not want to roll of another country. they get it. we have the networks. and we and them together make something good. separate, it is incomplete. that is one. i am a believer of taking your own destiny in your own hands. we have to be proactive. this is unstoppable. we are not going to stop it. we have to get out there, make sure it works for the consumer and for us. >> mario from millicom thank you very back to you in san francisco. >> brad stone, thank you very much. "bloomberg west" will be right back. ♪

>>

it is an area we will continue to grow in where there is a mature product line and we can ring -- >> there is a lot of m&a in the

medical device-based because there is been a lot of cross pressure. where do you see opportunities for growth that johnson & johnson sought to divest at -- divest assets? >> i think johnson & johnson has been very explicit about wanting to evaluate its portfolio for areas that are high priority for them, given their research model . of this did not fit into this model. for us, actually, it fits perfectly to the idea of trying to bring value to these customers with these mature medical products and the services that support those products. i think this is a unique time in health care where we will see companies reevaluating their portfolios, doubling down where they will be most effective in looking carefully to what will be most effective. this is an area that johnson &

johnson decided would not be a priority for them. >> the supreme court will be hearing a case on the affordable care act. if they rule against it, people who signed up for health insurance could now the without it. at what impact would be ruling have? >> i think directly, not a lot. let me give you the perspective. this is a major court ruling and all of us will be watching carefully. i think it is reasonable to assume that on both sides of the aisle, people are working on developing workarounds in the event that the supreme court rules this unconstitutional. i'm not sure that anyone wants to take responsibility for 5 million to 6 million people losing their health insurance. we will be watching closely. i think the likelihood is there will be worked behind the scenes on some kind of work around. in terms of our his nose -- our

business, we are looking at it very carefully. i think directly it is a relatively small impact on the short-term. >> all right, george barrett, we have to leave it there. that was george barrett from cardinal. with that, i will head it back to you cory in san fran. >> that was cool. thank you very much. ebay starting a service with paypal. the terms of the deal were

>> thanks for noticing cory. thank you. thank you very much mark crumpton we will be right back. ♪

. .

>> here is bloomberg's sam grobart. >> there are over 2 million procedures that involve bone grafting. everything from cancers to congenital bone defects. there is no way to see it. if you need a few's of bone, the only way to get it is to cut it out of a human. we are hoping to disrupt that

process and use the body so we can grow bones from scratch. >> labs are growing everything from bone clusters to trachea is. but a bone will provide more of a challenge. researchers are aiming to do just that. can you explain to me what the need for this technology is why would someone need bone not from their own body? they would need a piece of bone

out of yourself. and autograft may be more painful than the surgery that that is meant to replace. we think that epibone is better because it has an anatomical shape. it is a perfect fit. because it is alive, it can grow with the patient. we are proposing to look at it as a renewable source of stem cells. >> tissue engineers can grow stem cells into almost any type of human tissue, but simply say -- simply having the stem cells does not mean you can grow a bone in a petri dish. >> we rely on three things. stem cells, scaffolds, and reactors. you need to have the right stem cells. we have got that. then we need to put themselves into something that helps them understand how to differentiate. >> what to become. >> what to become.

in our case, we used to own tissue from ical stripped of all of its cellular material, but it contains information that speaks to those stem cells and encourages them to move down the bone differentiation pathway. >> before the cow bone or scaffold can be infused with the patient's on stem cells, it needs to be the right size and shape. to do that, they take a ct scan of the model of where the donor bone will end up. stem cells are added to it. the bone grows together in a specially made container called a bioreactor which is basically a jumbo petri dish that can mimic the conditions inside the human body. >> you have to keep it moist and you have to keep it fed. that is why it is perfectly housed. this is silicone material that is perfectly matched to do the shape and chunks the fluids

easily onto the scaffolding. >> the process takes about five weeks. so between these cells the scaffold, and now the bioreactor for those two things to grow together, over time you end up with -- >> apiece of mature, living human bone that hopefully is ready for implantation. >> epibone has successfully planted bones in pigs. while the fda has not approved use on egg's -- use on humans trials are expected to begin. >> we want to see this as a way

of collaborating with a natural alternative. >> cool. that was sam grobart from bluebird business week. it's time for the b-=west byte, one number that tells us a lot. what if you got? >> 9. >> 9? >> the biggest deal in semiconductors in 10 years. >> really? >> guess what was the last one that was as big as this one? >> when they were taken private. >> seriously. when motorola was taken out. >> you will have to remember this was a deal that was never going to get done. free skill had a tough time of it. it was in some ways -- i think an escape is the best way to think of it. >> thank you very much.

you can get the latest headlines anytime on your phone, your tablet, bloomberg.com. we will see you tomorrow. ♪

♪ >> from bloomberg world headquarters in new york, this is "bottom line" and i am mark crumpton. ♪ to our viewers here in the united states and those of you joining us from around the world, welcome. we have full coverage of the stocks and the stories making headlines today. bloomberg correspondent peter cook reports on the homeland security funding bill and what it means for speaker