>> life in san francisco, welcome to bloomberg "west." where we focus on innovation technology and the future of the. i am cory johnson. the eurogroup we and 11-year low against the u.s. dollar. went for five straight days on underwhelming economic report in the euro zone. -- the euro zone hit an 11 year low. obamacare back before the supreme court today and supreme court justices hear new challenge. outlaw -- at issue weather can

bar federal subsidies. here is iowa republican congressman steve king. >> this law does not allow the federal government to set up exchanges and if this court should decide that the wish of the president trumps the will of the people, we got a problem. >> a decision expected in june. hillary clinton reportedly used her own e-mail server while acting as secretary of state. the server that transmitted and received e-mail traced back to an internet service registered in her home. the senator has not said what she is private e-mail for some official state department business. >> holding a q and a event.

>> we're pretty focused that the company is that's ethical to help people connect is pretty broad and pretty mission focused than that. sacrament pushing that facebook effort to bring internet service to report -- remote parts of the world during his visit. microsoft co-founder paul allen says his research team has found a massive cap needs battleship off the coast of the philippines. the ship was considered one of the most technologically advanced ships of the era. it was back in october 1940 four. alan and his team have been searching for an years. now to the lead, uber buying amassing -- mapping search started. per perhaps signaling an arms

race. a lot of this is based on mapping technology. with the acquisition of decar we will continue to fine-tune products and those that rely on map. the managing director of right now. mark and my being ridiculous thing there is a mapping war going on? a lot of the companies one custom technologies around the map you go quite i think it is maybe a little early to be a war but opening skirmishes. i think what has really happened is google maps are 10 years old. they really developed a great property.

everybody went to them as default. as a business means, especially places like over what they are finding is they are relying on google maps interface and property, essentially designed as a consumer interface that does not meet the enterprises. i think it is the start of a trend you will see. quite regarding those trends -- >> regarding the trends, the dominant forces were companies like garmin. interesting developments were happening what was away from the cutting-edge 10 years ago with new technology. quite yet, and i think there are a couple of things that go into that. -- >> yes and i think there are couple of things that go into that. digital maps are easier to collect. street maps that are driving that.

and where you have mobile devices starting to collect map data. the other thing about map technology is that some of the technologies that were under the covers were not very sexy or glamorous. hard to build. you can have a routing thing that sends you the wrong way it is a great degree of buying proven technology and getting to the market much sooner and having a technology they can have customized for their needs. i think that is the key thing. life it is interesting the revisionist partners in early days.

i think on the mapping five, when uber started they were using google maps. it was working well. some of the real differentiation will be how precisely they do algorithms to dispatch drivers to find customers and do things like uber pool. what they found that if they cannot do that on a consumer driven pool like google maps. now they will put a big effort into it and develop a competitive advantage. you pointed out to me on twitter, ups has 40 people working on routing algorithms. for people in the logistics's nest, this is really where you are different from anyone else. i think that is what uber once but i think you can explain that to expand that to other players in the google in internet space.

we want something different that is really intend to our business model. that is where you will see company starting to make investments in mapping technologies. but there almost seems to be a trend. if this fear of a google planet? all of the people thing i do not to build a business where i am dependent on google and watch one day in the they are competing with me. >> right. i think one part is that, and certainly google has been aggressive in getting into the childhood business -- and getting into the business and you scratch your head when you see google-related products. i also think the other part that is important is google has done such a great job on map because they were the first ones to understand it was not just about pushing data to the user by collecting data for where he or

she is and getting there and that data becomes key to tuning the search our algorithms. google gets the data but if you use google maps, you might not. i think that is one of the things uber will really benefit from is the ability to capture the data and develop it into a substantially different product. >> there was a time 10 years ago or so were you have mapquest and yahoo! with the map solution and google was late to the game, but the notion that user is providing data to the company, that google is tracking where you are going. is what you are saying uber once to track for him going and twitter what i am tweeting and understanding user data and control is what this is really about gekko >> i think that it's a key part of it. it may not be the particularly want to know where you or i are going but an aggregate of super

important stuff. more company will want to own that themselves. but mercury low, managing director of free low advisors. we do care about your life very much. interest in one. we will be right back. ♪

>> this is bloomberg "west." edward snowden loans to go home provided he received fair treatment that word from his lawyer. living in russia after the country granted him temporary asylum. u.s. officials want to try him on charges of details on nsa's whining. : central-bank easing monetary

easing. cutting the interest rate to an all-time low. officials say the european central bank looming bond purchases one reason for the recovery. -- poland's central-bank easing monetary easing. passengers. getting hammered with heavy rain. the developers conference in full swing in san francisco. all talk is a virtual reality. the company has unveiled the latest prototype with the project morpheus vr head type. they say they will release the thing on the first half of next year. earlier i spoke to the head of the project called project morpheus. his name is dr. rick or richard.

dr. rick marx. asked him more about morpheus and talent will work. qui>> we have new headset. it has much better stations than the old one. >> how is it better than the older ones gekko >> higher frame rate. it is double what we had before. we have a new panel. it can have a lot lower rate. much nicer on your eyes. a little lighter view ergonomics are better. but what are you finding in terms of -- tell me if i your expertise and why your degree in rocket science has you working in virtual reality? >> aero astro engineering is systems engineering. games are about complex systems.

so it translates pretty well even though it does not seem like it might. what are the principal challenges gekk? he has written a lot about virtual reality. he thinks that games are not the best use of the technology. that you just get exhausted by the bar -- bumper this of the three-d experience that it provides. obviously you think differently at sony. actually when you are in virtual reality, it feels like you are somewhere else. the more realistic it is dumb if you feel less overwhelmed by it because you feel you are in a different place. >> you say that the experience is not exhausting, the really. it's would be a softbank? >> you can make it as exhausting as you choose. you can have an experience that is completely exhausting but you can ramp up back. we're seeing in reality, not just about running through as fast as you can get through to

the next level more about enjoying the place where you are. a lot of the on beyond is important work in virtual reality. -- on beyonembeyonce. >> sitting in a search and notice someone was behind me making. i turned my head back. the that mean a totally different kind of gameplay jacob first person shooters will not be the same success than they will be in virtual reality gekko >> different gameplay. some of the genres translate over, for example driving translate well. some of the world people have already made will come over, but maybe the gameplay will be different. quite what advantages does sony have over facebook and oculus? >> 20.2 million.

we have an installed base of the hardware platform and we can control the own ecosystem. morpheus is made for playstation 4. we have known people interested in this kind of stuff and can deliver software to them. so we control our own destiny. every single one of these units is the same. when a game developer makes the game, he knows exactly the experience. do not worry about drivers or anything like that. for present driving if they know they can buy it and will just work and do not have to worry about the complexity. quite is the technology so unique it cannot be replicated? >> samsung tries to get attention with the oculus glasses. you are going your own way completely. are there essential differences in the kinds of technology oculus and sony and others?

>> there is commonality between the systems. sony has a lot of experience in areas that makes ends. audio, optics. obviously consumer devices in general. we are good at those things so we are a natural fit. other companies have elements as well. the devices range from a piece of cardboard all the way up to a very high end system. on the console it is more one choice. so there is no variability. >> sony has a very different experience with independent producers of games. long arms have come in the waters and changed with every console release it seems. for independent developers developing this, is this something you have a lot of? is it because of the sioux -- that's new technology will be

harder? >> i think it is the opposite. independent developers have a huge advantage because there is not an established sent of genres. >> you do not have an activision that will put 200 million into a game? you can come up with a game cheaper to make? >> yes, and the gameplay has not been decided with the best type of game is. for you to define the new genre everyone wants to play. people are trying out new things right now. >> we are really encouraging developers. we have a lot of them with experience. >> do you fund them, meet with them individually gekk? >> case-by-case, but definitely loaning kids to people who we

think are creative and could have good ideas. we're flexible on the business model for this right now because it is so new. >> that was dr. richard marx the head of project morpheus were sony computer entertainment . we will be right back. ♪

>> i amc. -- cory johnson. this is bloomberg "west." the grand s3 can see the life of your eyes and use it to verify your identity. joining me is toby brushed presumably on a delay because of skype. i apologize but talk to me about

the technology, which is fascinating you can use the phone to do this. >> we are excited to have a number of announcements. we have 15,000 companies to access data on the device. they simply look at the phones and can log in. launching a grand flagship product. looking at your device we are able to use the selfie camera to look at the whites of your eye and collect your print and this will log you into your phone and applications making your life more convenient, secure and more private. >> fascinating. >>whites of your eye, i thought most youth i risk. >> we are able to use software. we can use the selfie camera and

see the blood vessels in the whites of your eye. >> is the selfie camera a term of heart gekko >t? >> the selfie camera sounds a lot more fun. >> what are the requirements gekko is that part of the evolution that has made this possible that would not have been before? >> cameras have gotten better and better. the word of the year with selfie. we love to take pictures of ourselves. we're putting beautiful cameras on the front facing as well as the back. these are now 548 megapixel that allow us to operate 20 inches away and allow us to see enough resolution to get accuracy when they are authenticated. 49- 9's are metrics that first

came out with the power industry where they wanted reliability. what is the bear minimum that you think is necessary of this in terms of the nines? >> typically the level -- three levels. one is 99.39. 99.99. the other is .002%. flip that around. 99.998. different level of sensitivity. totally four 9's are sufficient. >> why zte? >> we are announced tcl and there are many more that are coming. >> lining up. really interesting stuff.

we appreciate your time. a million ways to pay. there could be a technology behind all of it. importance of strike when we continue. ♪

>> you are watching bloomberg "west." i am cory johnson. evercore partners roger altman says the russian president vladimir putin is more vulnerable to sanctions than people realize. he says kookiness underestimating the tolerance of his citizens. >> it is not inconceivable if we were to tighten sanctions earlier in europe were to sign onto that they could actually or she russia -- force russia into recession. >> sanctions have been plunging and oil prices have tripled that

economy. dozens of miners feared dead after coal mine in version in eastern ukraine. the explosions not link to fighting between pro-russian rebels and ukrainian forces. 230 miners were underground at the time of the explosion. warren buffett berkshire hathaway plans to sell its first bond in euro. berkshire hathaway has hired a handful of bankers for possible sale. the average you on investors in grade corporate bonds -- an investment corporate bonds has dropped to 88 -- 8.8%. the other side of abercrombie & fitch struggles. i know, what your eyes, selling the private plane. they had to write up the value of the plane by $1 million. former ceo once at a 40 page

manual addressing the behavior of people on the gulfstream jet. conference call to investors that the search for jeffrey's replacement has not happened. >> the overall process moving at an acceptable pace. important to note these things takes -- these things takes times. >> today abercrombie posted 10% plunge in same-store sales in the last quarter. the sky is one of the tallest building in the world. of for sale. also $1 million off. formally known as the sears tower could fetch $1.5 billion, 110 story building is sold in 2004 to a group of chicago investors. there are a lot of ways to pay. use apple came with a bump.

the payment options is a confusing world. the managing director joins us right now. you are invested in stripes snapchat. they're interesting companies both. let's talk about straight and what it is. some people compare it to lisa - - visa apple pay paypal. it is really none of those things. >> if you think about how the payment used to be, a much more complex process. today any developer that opens up the website it is merely a call. they used to be when someone would start a website, you could go to drugstore.co and would

have to build an infrastructure to figure out how i will recognize a number that will come in. how will i verify the numbers and set the payment on that account? >> that is right. >> waiting for approvals to get into business today. today you create the website and within minutes it does this for you. you can talk about what we just talked about and make it of course utility everyone uses. >> this is at least four years old, maybe 20. probably about 20 years old. is it really that entire time there has not been a api for that gekko >> absolutely not. in today's world it looks like a broken stat. when you think about the interchange -- >> broken stat, which is to say a lot of crummy technologies that do not fit well together stacked on top of each other.

>> absolutely. they are handling risk of fraud. today with everyone online you know so much more through the other channels that you have to rethink payments from the ground up. how do think about fraud and the identity for the this. that is really what strike does. people are hearing thoughts and locations and maybe where they bring a is on many locations. suddenly the old rule need to be completely thrown out by having a new technology? >> absolutely. when he think about the purchasing experience today, a lot of what e-commerce is about in the early days he used to go to the store and pick what you want to buy an click on a page

that takes you to the payment page that completely disconnected from the webpage and you get the transaction done. today you want to see product that catches your on that friend recommends and buy it right there. the payment and that it concept of the product itself. >> valuation-what i would understand why. seem like the kind of company. -- i can see this kind of company on a massive scale. not talking about valuations that over sharing you are invested in snapchat, a fascinating company. what round did you guys invest? >> this is becoming an enormously successful service. it is also free. an incredible evaluation. to what do you attribute that evaluation?

>> i think it is hard to create the large community of people around communications. when you think about what facebook did hundreds of millions of people, there is a really rare occurrence. it is a important tool when you think about having in your tool test to communicate with friends. >> you can sell $1.50 but not a business. there will be a business model there for sure. you have to be cognizant of the fact that this is a three-year-old company. the road to a couple hundred people. >> i am-- >> the grip is so stunning. when you're -- when you are

doing the business model, the kinds of things you will are dealing with that is why valuations are justified. >> $19 billion valuation. three point $5 billion valuation of strike. hopefully good news or you. >> let's hope. good to be with these companies. >> we really appreciate you coming on. we will be right back. ♪

>> i am cory johnson. this is bloomberg "west." good balance disney will be the next big cut for technology? related -- interesting companies. all with a footprint there. the city itself trying to make that happen at a faster pace. joining me to discuss the efforts in orlando is the mayor

of orlando in new york. thank you for joining us. >> inc. you. -- thank you. i will work really hard to make every orlando joke. mickey mouse operation. >> that is ok. we get 60 million visitors every year. if the the the population of atlanta visiting orlando every year. our name is known internationally. the problem is what you said, the only people who know -- part people know is universal theme parks and there is so much more. >> when i think about technology in orlando what i think about is mattdden, john madden football has had its face there. has that led to other

technologies to as people get tired of working there and want to try something new? >> is absolutely had. so many alumni have been part of the fabric of the tech community in downtown orlando. interestingly enough eight years ago they came to us and said we want to his land but the talent pool is not deep enough. we got together with the university of central florida and created florida interactive entertainment academy in one of our buildings. a graduate program for video gamers. the second leading program is the second type of its country. >> fairly interesting. when you look across the country because there is a silicon valley of colorado, the desert middle east you name it everyone is trying to do it. what is it that is so attractive

to you in terms of economic development of technology? >> they are high-paying jobs in general. we always want to look at diversifying the economy. the recession really emphasized that to us. tourism and homebuilding were deeply affected during the recession. we have a great life sciences cluster and did not lose a single job in that industry during the recession. >> how do you figure out, city budgets are rough, you have quite limited resources. how do you figure out where to put a $100 grant -- $100,000 grant or $50,000 grant here? >> generally when attracting a job from swim -- from somewhere else the tax credit that gets a bump for every job created above the median in orlando. that is really a state program. we have some other programs that

emphasize targeted industries in downtown. >> when you are attracting the workers, do you feel like you are pulling them from other places gekko while they may have trouble finding the they want they like what they can pay them in places like orlando not as expensive as it is in silicon valley. do you feel that is an advantage? >> i feel it is an advantage. we have a lot of people who have moved to california and texas and are moving back and returning with the experience they gained in the other communities. >> are there unique city planning because of disney world opening up when it did in the 1970's and i wonder if the city planning challenges around the technology communities are different than they would be around others industries such as homebuilding and so on? >> we have a great opportunity

in downtown. we recently built a new arena, new performing arts center. that freed up about 70 acres for the old arena was. we are in the midst of planning a creative village. it has the florida interactive entertainment academy as a base. we will construct this as joint use facility that will have between 10 and 15,000 students. we want to develop live, work and play space for the creative class. >> thank you very much. we appreciate it. time now for a check of the top headlines. exxon mobil reiterating production targets even with the plunge and oil prices. oil and natural gas will climb 2% this year. 3% gains in previous years. that forecast little change from year ago.

frank route was $108 per barrel. sure is not now. a russian tech startup planning to hold one million smart phones. it will go on sale in north america and latin america. the phone is electronic paper screen on the back. kindle on the back and standard touchscreen in the front. the company says it will reduce battery usage. wildfires rage in towns near south africa for the fourth straight day. 12,300 acres on fire. the worst fire in 15 years. threatening to destroy homes, buildings and even some of the areas wineries. mark crumpton coming up at the top of the -- at the bottom of the hour. >> thank you. the affordable care law obamacare once again facing a legal challenge of the u.s. supreme work. justices today hearing arguments in the case of king versus burwell dealing with tax

subsidies that some citizens could get. the argument based on just a few words established the state. does that mean the individual state where does that mean the state as it relates to the country at large? greg store will help us navigate the legal maze. i will see you in a few minutes. >> we will be right back. ♪

>> i am cory johnson. "west." drones are getting a lot of buzz in barcelona. mark zuckerberg attended a conference on this. google announced they will make the first flight this year. ethe ieaee so that is

only a matter of time before a drone kills someone. how do you feel about dreonones? we have more than 600 funded for this year's monkey shake them survey. we asked a lot of people about their drone opinions. >> i was pretty surprised. 17% of people that they were interested in finding drones. very few on them. 17% say they want to own one was high. we talked about smart watches a year ago. so if you said there were roughly going to be the same that would surprise me. i think people do not know enough about drums that there is a lot of interest out there. -- about drones that there is a lot of interest out there.

>> we have a couple of tables, photography. recreation. when i was a kid i thought -- thought model rocket. a drone is lately. for blowing them up when you were a kid? pretty much. if i could've had a drone it is way cooler. they can see there is going to be more of this. you start to see more stories about them. >> i feel like the use cases are not clear to people yet. they are hearing things here and they see the 60 minutes story and say amazon will have drones. do people want delivery by drones? >> that came back pretty low.

i think the consumer does not see the benefit to me. most of the benefit is or amazon . i think it's amazon launched -- >> if you have a labrador retriever, the benefit is not for you. >> and amazon said we will cut the cost in half because we are using drones or will be able to do delivery in three hours, then people will say wow drone delivery. i think it is still too early because people are not launched the services yet. >> the issue of privacy and drones starts to come up. >> privacy and safety are issues that come up. you see that in the desire for regulation. people are like wow i will be in my backyard with my kids and someone could be flying over with a drone taking pictures of me. it is just a lot easier with a drone.

>> the business of surveymonkey is fascinating to me is fundamentally based on the notion there is statistically significant study. the survey title is one of the most important parts of that. i wonder what you can do -- this is a technology issue. you do not know what you want to do with the device until you have it. trying to predict before it is out there does that mean it really matters. do these survey results really matter now? >> i think what the survey general answer if people are interested in drones. they are a little nervous about them. what we're seeing is wearable look smart watches. it might be this year something comes through, it might be a few years from now. the use cases have to be there. i think they're undefined enough. they are getting cheap and powerful enough that people will

start seeing more of them. i think the rules were overly restrictive. they will be hard to enforce. i do not have one. >> thank you very much. the bwest byte right now. >> a billion. a billion is a lot. the number of phones that twitter's advertising service that they can reach with advertisements. we broke the news yesterday facebook is considering launching a competitor maybe even as soon as the conference later this month. >> that is about three times or four times more users. that is a big deal. ingesting twitter is bigger than twitter. this is obviously something they really care about. >> your phone and tablet, check

us out. ♪ . .

mark: from bloomberg world headquarters in new york, i mark crumpton and this is "bottom line." the intersection of business and economics with a main street perspective. to our viewers in the united states and those of you joining us from around the world, welcome. we begin with breaking news and the release of the federal reserve's so-called beige book. the economic survey is based on reports from the 12 regional banks of the u.s. federal reserve system. our chief washington correspondent, peter cook, is standing by with details. >>