>> live from pier three in san francisco, welcome to "bloomberg west," where we cover innovation, technology, and the future of business. i'm cory johnson. well, u.s. stocks rose to fresh highs today, the nasdaq reaching 5000 for the first time in 15 years. the dow jones industrial average rallying to a record with treasury falling as rising consumer purchases signal the strengthen the american economy. president obama is reviewing recommendations for a task force looking into local police strategies after a racially tinged death at the hands of cops in new york and missouri. they want cameras on cops and community engagement.

the president said the riots in ferguson exposed a "deep-rooted frustration" with local police. prime minister benjamin netanyahu spoke about the public affairs committee in washington. he will deliver a speech to a joint session of congress tomorrow about the iran nuclear deal and a 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. >> netanyahu accepted the invitation by speaker john boehner despite objections by the white house. networks with 2.7 billion dollars in cash to bolster the networking business.

hotels, universities, shopping malls and the like. investors will get 2467 a share. a record day on wall street, breaking 5000 for the first time since march of 2000. chief markets correspondent scarlet fu joins us. i remember the last one. i remember the last one ending. it tell us about this one. >> march 2000 and the following day was the all-time high. we all know what happened after that. a precipitous drop down. the movement took place in the first hour and we revisited the level and our later. that is how it has been performing all year long. it has been outperforming the s&p and the dow. almost double the major indexes. it follows for the five year track record and the tenure track record. it is made up of more volatile tech stocks and biotech stocks it seems to make sense.

in terms of milestones, we reached 4000 the last time in november of 2013. since then, it has been 313 trading days since we reached the next milestone. back in 1999, it took 71 actual days, 49 trading days to get from 4000 to 5000. it has been a much longer right to get to the 5000 level this time. companies are more mature and making profits. at last time around, it was difficult to calculate a price-to-earnings ratio. double venture came up with numbers that show the best performers since the last time it was at 5000. leading the way is monster beverages leading with 52,000%.

followed by green mountain with 32,000%. >> gathering reporters today for the mobile world congress event in the world of networking and mobile. it is a crucial time for the industry. it joining us is brad stone of business week. china is cutting spending on non-chinese networkers, google is facing privacy challenges new companies are taking center stage. is there one big theme you can pick out at the conference this year? >> this is the first time i have been to the show.

to me, it's like fashion week of the mobile industry. every company trots out the latest and greatest down the runway. for samsung, the galaxy s. htc, the one m9. if there is a theme, it's for the devices to look as expensive as they have cost. they are ditching plastic and casing it in metal and gorilla glass. actually, earlier today, i had the opportunity to interview google senior vice president. we talked about a lot of these issues. google would operate its own wireless network and they called it mvno. here is what he had to say. >> there have been reports in the press that google is talking to wireless carriers about a google branded network, mvno. >> the articles about it -- here is how i would describe it. the core plan for everything we do, we take an ecosystem approach and work with partners. even the con activity would have the same attributes to it.

we have always tried to push the boundary of what next. we do this with nexus devices today. it's why we do nexus devices. all innovations in computing happen at the intersection of hardware and software. for you to drive innovation, you need to do both closely together. and we do it, actually, in partnership with our oem. we choose oem to work with. people ask, are you competing with oem? it's not our intent. compared to the rest of the industry, we feel a very small scale. but we do it -- [indiscernible] we do it through a nexus. i think we are at a stage where it is very important to think about hardware, software, and

conductivity together. especially when you think about form factors like unique conductivity on your watch. when you think about android auto, we need conductivity for that. we need to experiment along those lines. the project we are doing, we don't intend to be a network operator of scale. and what we do here, we are working with carrier partners. what you will see in the coming months -- our goal is to drive innovation that we think the ecosystem should it route -- erupt. we will do it at a small enough scale. people see what we are doing and hopefully, carrier partners who think our ideas are good will help.

that's what this is about. >> i wonder if the carrier partners like verizon or at&t look at this and wonder if google, one of their big partners, is becoming in some significant way a competitor. >> years of running android and how we do it, we keep getting asked these questions. we are working with some of these carrier partners to do what we are doing. they know what we are doing. in the end, partners like verizon, at&t, t-mobile, and sprint are what powers most of the android phones. the model works extremely well for us. >> is there a conviction that there needs to be more innovation and lower prices when it comes to wireless networks? >> it's a bit different. for example, thinking through areas about how wi-fi and cellular work together. how can you make that experience seamless? if two people are making phone calls and if you have a call drop, maybe it can connect back automatically. this is what is possible, and we expect carrier partners to adopt these ideas.

these are some things we are trying to do. >> co-opetition and frenemies is cute in silicon valley but if you try to compete with verizon, google is taking an interesting strategy by offering their own service. >> that's right.

it absolutely right. it google is no stranger to that. there is a belief that the carriers, the wireless have been moving too slow. that they should be doing more. google has the partner -- to partner with those companies and make nice noises towards each other. is your vision compatible with mark zuckerberg's vision? he is talking nicely about internet.org competition, but take a listen to some of his answers. later today, we will hear from mark zuckerberg and facebook and internet.org. bringing conductivity to parts of the world that don't have it. do you feel like your visions are all that different? can the companies work together? >> no one company can bring internet of scale to 4 billion people. we want to provide our services on internet.org.

that is exciting for me. having said that, we are trying to make complementary -- but trying to do something different. we are trying to scale the backbone. connectivity and scale across the globe. at the high level, these are complementary. i am glad that companies like google, facebook, and carrier partners --they need this to make it happen. i am glad we're working on that. >> the fcc making an important decision about limiting the ability of carriers to decide what content consumers will get. we have google and facebook out there offering new technological ideas about how to offer the internet so that users will pick their service. did zuck talk about that today? >> zuck was asked about that and here is what he had to say about the idea of lying drones balloons, and spreading the internet to the ground.

>> i think that is the fringe of the real work going on. 90% of people in the world already live within range of a network. right? that is the great work the industry has already done. it is sexy to talk about satellites and all that stuff, but the real work happens here. >> if that wasn't enough zuck for you, we have more coming up when "bloomberg west" continues. ♪

>> let's bring you up to speed with some bloomberg top headlines. it john kerry says new nuclear deals with iran exist right now. he spoke with reporters today in geneva. >> right now, no deal exist. no partial deal exists. unless iran is able to make the

difficult decisions -- unless iran is able to make a difficult decisions, there will not be a deal. >> prime minister netanyahu says any deal has to be delayed. he will address a joint session of congress tomorrow. a democratic u.s. senator, barbara mikulski says that she will not seek a sixth term. mikulski -- >> i have fought long and hard about the next -- thought long and hard about the next two years. who am i campaigning for? am i campaigning for me? or am i campaigning for my constituents. i had to decide how i would spend my time. fighting for my job or fighting for their job? 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, the first of five senate terms. lumbar liquidators packing on more losses after a 60 minute report that said the company was selling chinese made flooring with illegal levels of her mala

-- formaldehyde. 60 minutes used an improper test, they say. and that all of their laminate floors are safe. turning to barcelona, mark zuckerberg just delivered a keynote with a ride range of topics including internet.org, and facebook's partnership with telecom operators. someone from wired moderated the discussion and talked about connecting the world. >> we want to help people connect. when we say we mean something it's a little bit different from operators. we are not doing the actual digital connecting. we are trying to help people connect with other people and share the moments of their lives. when people have access to that,

you can stay close to the people that you love. you have business tools you need to be able to communicate with customers, find new customers. when people have the internet overall, you have access to health information to stay healthy, education information. it is incredibly important and that is why i think it is something we are all focused on. >> mark, you have been to mexico, colombia, china, indonesia. what have you learned? did i miss anywhere? >> i think you got almost anything. i don't travel that much. it has been an interesting year. meeting with partners and government, whenever i go to a new place, i try to see how using the apps are impacting people.

the thing that is striking to me is the link that people will go to in order to get conductivity. i went to go visit from jakarta over the weekend before i was -- there was this village that they called a cyber village. the citizens had all organized around lobbying their government to get connectivity. based on the fact that they wanted to be connected. it was the primary thing that determined where they chose to live. there are stories like that everywhere you go around the world, especially in developing countries. it's really inspiring to see.

and you work on this, you tell yourself these stories about it. it helps people stay connected and helps grow the economy. but going and talking to people that have fought hard to get connectivity enabled in their home, and the benefits of that -- >> you went to jakarta and went to the cyber connected village. did that surprise you? >> the effort. there were specific things they needed the government to unlock to be able to make that a possibility. there are different things everywhere you go. in india, it's interesting to see how the prime minister used the internet as a primary campaign tool to connect with people. i visited a village that just got connected and it was interesting to see how the students there were growing up with the internet and using it to learn.

basically, all of these adults that came to the village center where there was connectivity were asking kids how to do stuff. the kids understood how to use the internet to learn and something the older generation didn't have. >> jesse from wired and facebook's mark zuckerberg. "bloomberg west." be right back. ♪

>> is airbnb really worth $20 billion? according to people with knowledge to the matter, it gives them a billion dollar private round selling 5% of the company. it means airbnb will be worth $20 billion more than starwood's enterprise value of $16 billion. serena, we have heard rumors. raising $1 billion is amazing, let alone $20 billion valuation.

>> i'm not surprised anymore. the very hot startups are raising money more often. and every time, doubling the evaluation. they doubled the valid -- look at uber. they doubled the valuation in six months. >> is it just another private company like spacex or snapchat? it there and they can get it? or is there something particular drawing money for airbnb? >> they are a business generating revenue. users worldwide use their service. this is a real business. and i think here to stay. uber had regulatory hurdles, they still have them. it's remarkable how different the two companies are culturally given that airbnb has had hurdles, but hardly any news about the company itself. i think at this point, investors are really throwing money at hot startups in the valley that show to have a real revenue model. i think it's also a bit of a game. >> who is playing this game? what investors are we talking about?

>> at this point, these kind of valuations, they are called pre-ipo investors. hedge funds, equity funds, mutual funds. we don't know. we don't have the details of the identity. the valuation could get higher than $20 billion. this morning, we had on our show, a venture capitalist. they say these investors are very savvy and nothing to be afraid of. i'm not sure i agree. >> we have heard that one before. serena saitto, we appreciate it. "bloomberg west" will be right back.

♪

he's out there. there's a guy out there whose making a name for himself in a sport where your name and maybe a number are what define you. somewhere in that pack is a driver that can intimidate the intimidator. a guy that can take the king 7 and make it 8. heck. maybe even 9. make no mistake about it. they're out there. i guarantee it. welcome to the nascar xfinity series.

>> you are watching "bloomberg west" where we focus on innovation, technology, and the future of business. i'm cory johnson. manufacturing expanded in february. the index dropped to 52.9 from 53.90 month earlier. -- a month earlier. israel's prime minister benjamin netanyahu giving a preview of his remarks to congress tonight, before the american israel public affairs committee. he insisted israel should be a bipartisan concern in the u.s..

>> the last thing that i would want is for israel to become a partisan issue. i regret that some people have perceived my visit here as doing that. israel has always been a bipartisan issue and should always remain a bipartisan issue. >> netanyahu's appearance during an election campaign, israel was protested by the white house and the democrats have complained about this visit. calling for the deaths of twitter employees, the threats are believed to be in response to twitter blocking the terrorist group accounts. the online posts addressed to jack dorsey says "your war on us will cause -- your virtual war on us will cause a real war on you." twitter says it has identified thousands of accounts affiliated with the islamic state. rebekah brooks is once again going to work for rupert murdoch after being cleared of phone hacking charges. she will take on the senior role of story full -- storyful in

london. news corp. bought the company in 2013 for $25 million. samsung is getting early praise for its high-end smart phones. the galaxy s6 and s6 edge. the screen crutches across the front and two sides of the phone. it has multiple processors and a fingerprint reader. one of the biggest tech conferences of the year, mark zuckerberg speaking at the event and unveiling new details about the plan to wire the world. one of internet.org's partners -- brad stone joins us from barcelona with an important exec. brad?

>> hi, cory. i am here with the executive vice president at millicom. 60 million customers in latin america and africa. thank you for joining us. >> i am delighted to be here in barcelona with you. >> you were on stage with mark zuckerberg talking about internet.org. talk about the work you are doing with facebook. >> we are working to connect people to the internet understanding what the consumer really needs and trying to solve those basic needs through initiatives like the one we are running with facebook. we also have our initiatives. they run in parallel, of course. to basically get the whole mix together successfully. >> talk about where you are with internet.org. three countries.

>> the last is columbia -- colombia. in latin america. we are planning to further successful active launches. the important part of the launch in colombia, it is an important uptick in the number of consumers using data for the first time. >> what is broadband penetration looking like before you started rolling out internet.org gekko how many customers were u -- internet.org? how many customers were using? >> not all smartphone owners use wireless data. some of them don't.

in general, these economies, columbia being the most advanced, penetration is about 25%-30%. about two thirds of the population, between 75% and 50% roughly still have to appeal for internet access. >> do people know about the services? are they too expensive to use? >> it is, and it isn't. we think we have good expertise making things affordable for people. it's important for people to

understand what good the internet can do for me. our job, we face partners to bring this down to earth. what does it mean for me as a consumer? how does this benefit my life? can i moved to the digital lifestyle? >> what is the answer to that question? what are you presenting to a customer in colombia or tanzania that makes them take the extra step into the smartphone world. >> the digital world has many advantages to consumers. there are many others. once you get into this, it's like using air-conditioning. you don't want to go back to live without air-conditioning. it is like that. showing what is good for you. it is so versatile. what is good for you might be different than what is good for me. but there are services that are so popular, like facebook, for example. we partner with them and we are very civilized in our ambition and dna.

>> the panel you sat on with mark zuckerberg, it was clear there was tension between the mobile operators and facebook. there is a worry that the messaging service, it might be cannibalistic for some of the data services that operators depend on for healthy revenue services. what is your take on that? >> we are always with facebook and this is important. they don't want to ruin us. on the contrary, we have the networks. we and them together make something good. that is one. taking your own destiny in your own hands. we have to be productive. this is unstoppable. we have to get out there and make sure this works for the consumer. >> cori, back to you in san francisco. >> brad stone of bloomberg businessweek. bloomberg west will be right back. ♪

>> welcome back. i'm cory johnson. johnson & johnson, no relation just did a big deal. $2 billion, sold to cordis. they treat cardiovascular conditions. >> i want to bring in george barron, the ceo of cardinal health. congratulations on the deal this morning. explain why this makes sense. you are a medical drug wholesaler and here you are buying a medical device acre. where is the synergy? >> thanks for having us. we are way more than a pharmaceutical wholesaler. we are a broadly based global health care services company.

pharmaceutical distribution happens to be a terrific heart of our business, as is the specialty business. our surgical kit business, the medical device is this -- we are a business that provides a pretty broad range of products and services. this is a pretty important to move for us and very well aligned with one of her keys readies. which is to help address a major pain point in health systems around the world which is what we refer to as physician preference items. it is focused on cardiology, orthopedics, and wound management. today's announcement is a major move or us. a big step forward. really excited about the opportunity to acquire this product line from johnson &

johnson. >> the uc cardiovascular as a niche to build out or is the start of a bigger foray into medical devices? >> it's about these bigger areas. products with the relatively mature medical device. medical devices that have limited clinical differentiation from company to company. we think there is the opportunity to bring the tools that we have into the surgical suite. and into the lab to improve the outcome and reduce the cost of care in those suites. it's really an area that we will continue to grow in. a very particular focus where there tends to be a mature product line. we think we can bring wraparound services. >> part of the reason johnson & johnson is offloading cordis is because there is m&a and cost pressure. or do you see opportunities for growth that johnson & johnson's

as reasons to invest the assets? >> it's an interesting time in health care. one company's challenge is another company's opportunity. johnson & johnson has been expressly evaluating their portfolio for areas that are profitable for them given the research model. this did not fit in the model for us but fits perfectly with 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. we will see companies reevaluating their portfolios. doubling down where they think they will be most effective. it looking carefully at other areas. i think we can be very effective in an area where johnson & johnson decided was not a priority area for them. >> the supreme court this week will be hearing a case on the affordable care act. if they rule against it, the seven to 8 million people could now be without it. what impact on your business will this ruling have?

>> directly, not a lot. let me give you a quick perspective. it's 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 developing on working -- developing workarounds. i don't think anybody wants to be responsible for millions of people losing their insurance. i think we will all be watching closely. the likelihood is that there is work being done behind the scenes to have some kind of workaround. in terms of our business, it's not a direct impact to us. but we do see over time, more people involved in health care it's probably a good thing. directly, it's a relatively small impact on the short term. >> that is george barrett, ceo of cardinal health on the $2 billion acquisition of cordis medical device maker. >> bolivia, that was cool. thank you very much. let's bring you bloomberg top headlines. paypal is buying a start up to broaden the mobile offerings. the deal would not disclose the transaction this month or next. it will let customers develop their own brand of mobile wallets through wireless devices like smartphones. citigroup replaces american express is the issuer of a costco credit card in the u.s.. the transaction will be processed, ending the is close of partnership after failing to reach a new deal. costco accounted for 20% of american express's loans.

boston scientific expanding the men's health business, no devices. the prostate treatments and other products -- it was still considering products for the women's health unit. we will be right back. ♪ ♪

>> i'm cory johnson. this is "bloomberg west." the evolving technology for the boeing transplant has one big problem. enter "epibone." here is sam. >> there are over 2 million procedures performed worldwide every year that involve own grafting. everything from cancer to trauma and congenital defect. there is no other way to say it. if you need a piece of human bone, the only way to get it is to cut it out of a human. we are hoping to disrupt that process and view the body as a renewable resource of cells that we can use to grow bones from scratch.

>> in the past 10 years, the field of tissue engineering has exploded. labs are growing everything from clusters of beating heart cells to functioning human trachea is. but growing a bone is an entirely more difficult challenge. epibone, a startup founded by two former students at columbia university, are aiming to do just that. tell me why somebody would need a bone made out of something else rather than from their own body? >> if people need a bone replacements, they might get a cadaver bone or synthetic implant. or cut a piece of bone out of yourself. that's called autograft. that might be more painful than the actual surgery that that

piece of bone is meant to replace. we think epibone has the potential to be better because it is an anatomical shape and a perfect fit. because it is alive, it can model and grow with the patient. we are proposing a different view of the body. to view it as a renewable resource. >> engineers can grow stem cells with any kind of human tissue. but simply having stem cells does not mean you can grow a bone added peachtree dish -- out of a petri dish. >> some stealth, -- stem cells and bioreactors. we need to put them into something that help them understand how to differentiate -- >> what to become. >> exactly. we are using a bone tissue from a cow stripped of its cellular

material. but the nano structure contains information that speaks to the cells and encourages them to move down the bone differentiation pathway. >> before that cow bone or scaffold can be infused with the patient's stem cells, it needs to be the right size and shape. they take a ct scan to get a 3-d model of where the bone will wind up. the donor bone is molded into shape and stem cells are added to it. the bone and the stem cells grow together inside of a bioreactor which is like a giant petri dish to mimic the conditions found in the human body. >> you have to keep it sterile

moist, and said. it is perfectly housed in here. silicone material that is thickly matched to the shape -- perfectly matched to the shape. it keeps the cells evenly through the scaffolding. >> the entire process from harvesting the cells to incubating the bone takes about five weeks. >> between the cells, the scaffold, and the bioreactor for those things to grow together, over time, you wind up with -- >> a piece of mature, living human bone that is hopefully ready for implantation. >> epibone has successfully implanted bones in pigs. the fda has not approved trials on bones. >> we are hoping to do the first human implantations next year.

we are waiting for bona fide clinical trials to begin within the next three years. we hope that with our company, we can help people live at her lives. we want to see ourselves as part of the story of rethinking the way we repair the body and collaborating with what nature has given us to come up with natural alternatives. >> cool. that is sam grobart from bloomberg businessweek. time for the bwest byte. one number that tells us a whole lot. what do you got? >> nine. >> what is nine? >> the biggest deal in semiconductors for nine years. >> really? >> that's right. guess with the last deal was that was bigger than this? when free scale was bought and taken private. >> added the private equity guy do? >> because i still -- they still own one third of the combined company, they took some cash off the table. freescale had a disastrous time crippled by debt. it was an escape, that was the best way to describe it. >> thank you very much. all the latest headlines on your

phone, tablet, and bloomberg.com. see you tomorrow. ♪

>> the following is a paid advertisement from the new face of time life, star vista entertainment. sit back and relive the moment. it was the decade of 8-track tapes, rotary phones, big console tv's, tower-sized stereo speakers, am radio, and great songs on 45s. >> ♪ brandy, you're a fine girl ♪ >>