cory: live from san francisco welcome to "bloomberg west." i'm cory johnson. a check of your top headlines, monday, march 9, the central bank will buy lawns. they will buy 60 billion euros worth of bonds until september 2016. here is mario draghi speaking. mario draghi: it will be implemented swiftly and effectively. this will not only increase the

future sustainable growth of the euro area, but also raise expectations of hiring comes and encourage firms to increase investments today, bringing forward the economic recovery. cory: and with the bond buying the ecb boosted its forecast i half a percentage point now projecting growth this year. congressional leaders are asking president obama to provide weapons to ukraine. democrats and republicans find the letter. ukraine is pulling back heavy weapons from the frontlines. german observers say it remains fragile. the east coast is getting pounded with another snowstorm and it has caused serious travel problems. the more has been shut down and your a flight skidded off the runway and crashed into a -- lag

uardia airport has been shut down after a flight skidded off the runway and crashed into a fence. they are buying the company for $21 billion, outfitting johnson & johnson for pharmacyclics. new york city is the hottest luxury property market. home prices rose 19% last year. that topped a global list. san francisco is up 14% in sixth place. los angeles was 10 on the list. the biggest drops were in when a saris. -- when us -- buenos ares. clinton tweeted i want the

public to see my e-mail. i asked the state to release them and review them for release as soon as possible. she has turned over 55,000 pages and it could take several months to review. her system was traced back to her home address and while it gave her control, experts say it may have been more vulnerable to hacking. joining us now is one of those experts. alex, talk about this private e-mail system. is this common? alex: well, it does have a history of thing, and the executive level of government. it shouldn't be. if you look at people like mitt romney, sarah palin, that created some issues when they were involved with a state trooper. it really should not be allowed.

simply because it is a security risk. you can't say that someone on your staff managing a server can provide the same level of security as the state department. cory: you mentioned mitt romney, sarah palin, colin powell did the same thing. explain why this is a concern greater than that of a cranky i.t. guy? i'm not saying you are. why is this a risk? alex: sure, i mean, she was secretary of state witt's means she is facing threats from other states, other nations with big budgets. if you asked me could russia or somebody else who is in favor of us spent $10 million to compromise any no server that lives in someone's home? certainly.

that is really what i'm talking about. the threat is even if there was not classified information on the system, it is still an incredible boon to anyone interested in international politics to have access to the unclassified e-mails of the secretary of state. cory: is there a suggestion this was compromised and the other accounts were compromised? alex: it is risky. nobody has evidence to say, or conclusive evidence to say the accounts were compromised. part of the issue is we would not necessarily know because our knowledge, nobody was monitoring the server to determine if it was compromised. sarah palin and mitt romney are different in that they were using servers managed i yahoo! -- by yahoo!. clinton decided shoes going to do her own e-mail system from

the ground up and that of forts or greater control, but also none of the protections that come with -- affords her greater control, but also none of the greater protections. did they are able to monitor for account compromise. that was not available to her. even if she used a free one, it would not be a good decision. cory: what kind of hardware or software is necessary to operate something like she was doing? alex: sure high-speed internet connection, which is common. you would need a standard desktop pc to handle the amount of mail she would be receiving. and also we discovered when we looked around she was using something called an ssl vpn which provides encryption. like your laptop, your cell

phone, and that server, the vpn. all told, she probably had a router, a standard desktop pc. and at least one vpn device. we were not able to confirm that device was in existence when she was secretary of state. cory: so this sounds like some low-level junk on somebody's desk. it is amazing. i'm concerned about being part of the political football where the right is critical, and clinton's people are defensive. is this more than just politics? alex: i think it is. if we were talking about speaker boehner or rand paul the basic message is the same. it was a poor security decision.

whether it was conjured we don't know. but a compromise was reached. you were going to say to me there are other people in the cabinet, or members of the senate, who do the same thing. i would be equally as upset. i think there is a good likelihood they do use their own e-mail and are not operating with security in mind because that is not how they think. they are politicians. they may be good at their job and intelligent, but security is a tough game in the little staff can come back to bite you. cory: maybe that is why the law is catching up. this was legal when she was doing it. it is illegal now. in the state department and beyond. alex: i absolutely agree. usually we are critical of the law's ability to keep up with technology, but i it could go

further. from my perspective, there needs to be somebody who has a team who is in charge of this the cyber security of our top executives. if you are a member of a cabinet if you're on a committee, if you work in the white house, you are under their purview and there is no way to escape it and they will make sure you don't make these mistakes. cory: alex mcgeorge thank you very much. "bloomberg west" will be right back. ♪

cory: i'm cory johnson. here are some top headlines, u.s. ambassador to south korea is recovering after being cut in the face. he needed 80 stitches after being attacked at a north korean

sympathizer. here is john kerry. john kerry: he is very distraught [indiscernible] cory: doctors say it could take a year for him to recover. the attacker was protesting a joint u.s.-south korean military drill. flatter putin is hailing cooperation would italy after meeting with the prime minister in moscow. they agreed to a $1 billion investment fund to work on a possible action against terrorists in libya. the first formal state visit since the violence in ukraine. hbo is in talks to start an ala cart version of its premium channel. people familiar with the matter say it will let consumers watch

hbo without paying for a cable subscription. speaking of apple you will have to wait a little bit longer for a large screen. they are facing delays which is pushing production to september. six months after march. 12.9 inch ipad was part of his plan to reboot the ipad line. tim, this is a big deal. this was the major project written -- product release for the year. tim: they see the potential in the corporate buying area. the larger screen was seen to appeal to corporate buyers. cory: what is fundamentally different about these panels

that makes them harder to acquire compared to the plentiful ipads? tim: it is a little bit bigger. it is different. difference in manufacturing. you run into other challenges. you are hearing issues about yields from our sources. cory: so it is not the ability to make it. it is the ability to make it successfully. tim: all of the details are not there. whatever the issues are, it will delay it until september which is a stumble out of the gate on the strategy of trying to appeal toward corporate buyers. cory: when we look at their numbers, almost every one of them is positive. that kind of growth is falling to now. the average selling price for the ipad is falling. there are a numbers -- a lot of numbers that do not look so

good. tim: smartphones are getting bigger. the phablet is eating into the tablet market. if you are going to buy -- cory: the iphone 6 plus. i find myself using it to do stuff i did on my ipad. tim: the tablet's future is in the corporate world. you understand why this will be more important. cory: when we look at the gross i wonder what this means for ibm. ibm is a company was looking to to help build up sales. helping them with their problem. tim: they have several apps targeted at businesses such as the airline industry and telecom. ibm part of the deal is trying to sell apple products. it is definitely perhaps a year

ago when they were thinking the deal, things look different. cory: there was a quarter where the mac looked outsold the ipad -- macbook outsold the ipad. tim: the mac had a resurgence last year. cory: is there a notion it does not matter what device you buy? tim: it is a believe they don't mind cannibalizing their other products as long as they are heading told the bigger goal of selling apple items. cory: tim we appreciate it. "bloomberg west" will be right back. ♪

cory: i'm cory johnson. the future of policing in america is starting to look like a tom cruise thriller. >> mr. mark. i'm placing you under arrest for the future murder of sarah marx. >> no, i didn't do anything. sarah. >> give the man his hat. cory: future crime. that's right, "my nor to report."

this company -- minority report. his company has the same goal in mind. what crime am i about to commit? besides a lousy interview. tell me about your business. >> we are focused on law enforcement. what we use is we use the information in your daily newspaper, what kind of crime where and when it happened, and we use a large amount of that data, up to 10 years with a little bit of weighting toward the more recent event, to predict crime. cory: police have databases across all level of law enforcement to do the same thing. what can you do now? larry: please have something called heat mapping and crime history. they don't run, they don't take advantage of computing power to project where crime is likely to happen.

so we can predict down to the single block level where crime is likely to happen. cory: yesterday i was walking down the embarcadero and i saw glass. glass all over the place. people are breaking into cars just about every other day. i don't need software to figure that out. what is it more than the observation of crimes in dark alleys? larry: you know you're given area, the first and second most likely places and police know three through six, in addition. once you get into locations seven through 10 or 10 through 15, it is unlikely they will be top of mind and unlikely they will be part of a general assigned beat. we give people i highly attenuated area, a time frame,

and it works. cory: does crime change? larry: crime changes, but it does not necessarily move. the vast majority is opportunistic. that means most crime for a given perpetrator takes place close to where they live, where they work schools. their joint in places, eating places. and in that case, it does not move as much as we think. that is called the theory of displacement. cory: what do you mean debunked? larry: there has been research to see if you suppress a given area, cry it's --crime moves. for the most part it does not. cory: talk to me about the sale process. what do you do to prove to skeptical communities this is going to work better? larry: we actually don't have to

do that. we are fortunate enough to have customers that are vocal about performance. customers like atlanta, los angeles, talk about double digit crime decreases. cory: how do you charge? larry: most is based on an annual licensing fee. cory: not one for each crime. larry: i like that idea. we will -- keep in mind an arrest is not necessarily the gold. the goal is to eliminate crime. if you reduce crime 20%, a you are not arresting 20% more people. you are reducing the number of events. cory: talk about this algorithm. did you find the solution before you found the problem? larry: the problem was posited

by ucla and lapd, coming up with a late t -- a way to deter crime. something that follow the model of a given event. if your home is broken into, the likelihood it will be broken into again goes up exponentially. the likelihood your neighbor's home will go up -- will be broken into goes up. you are looking at a given event with a secondary event with some level of proximity. we live in earthquake country. earthquake, aftershock, that was the core idea behind our approach a seismic model to the algorithm. cory: what kind of crimes are you best at predicting? larry: a variety. we are not fabulous at homicide gun related violence, home invasion, car theft, breaking into automobiles, what you saw. cory: larry samuels, we

appreciate it. "bloomberg west" will be right back. ♪

♪ cory you: are watching "bloomberg west." bloomberg top headlines. the midwest maybe hurting the labor market pair the number of americans filing for unemployment benefits rose last week to 320,000 come the highest level in more than nine months. jobs report for the entire month of february. china has just lowered its economic growth level 27%, the lowest in 15 years. he speaking at the national people's congress. >> we need to develop twin

engines to attract development popular onto ship and invasion increases the supplies of public goods and services. this assures us we will reach our momentum an increase of quantity thereby achieving better quality, more efficient, upgraded economy. question is battling significant headwinds, including property slump, corruption, and inflation. citigroup is ending its investment in turkey here at of $800 million. and i hundred 9% -- 9.9% stake. divesting in minority stakes focused on the core business. adidas. shares are at a seven-month high today. maintaining the dividend. 7%, including items -- prepared

to make a long-term strategy announcement. tim clark says he will travel to defend his airline. analysts are receiving market distorting subsidies from their government which would allow to undercut competitors. here is the reaction. >> it is grossly unfair and discourteous and very serious. they must be prepared for a very robust response from us when and if we get the report. >> he called the complaint bluster and flimflam. i like that. all right. auction day today, bitcoins sees from the underground drug and murder peddling website. today, 50,000 bitcoins on the block on federal action. nearly 80,000 were already auctioned off this year.

tim got 32,000. the former ceo got 48000. they might be winners, but they paid a much higher price. charles, the ceo of solutions. are they winners? are they not winners? >> the bitcoin market is liquid. in the short run i think they are kind of losers. you can go out and buy it at a cheaper price today. if they hold it long enough we are a believer in bitcoin technologies. they should mostly do well on that investment. but right now, it will be interesting to see how this auction goes. there will definitely be inclination to bed at a discount to the market pair that is what we did when we participated in the first market -- in the first auction. >> so you did it in the first auction. congratulations for not winning. i think about this a lot.

i am so not interested in the price of bitcoin but i wonder if the excitement that people catch on to sometimes with the possibility of a block chain fool them into buying bitcoin. >> i think what we have now and the ecosystem -- assist -- the ecosystem, it has not really been built yet, but division exists. everyone collectively believes he is not going anywhere. bitcoins are primarily for speculation, especially in the u.s. all the technology is being built today. for anyone built -- bidding in the auction, they probably learned their lesson the first two times and will likely bid low rather than play a premium. >> when you think about the future of technology and the

cases i am sure -- is there one application that just kind of grabs them? >> there are a lot of applications that get people to buy in the application. getting someone to believe we need to see adoption and we go back to 120 years when we see edison with the lightbulb, nobody believes in the guy was a clack. when bill gates started microsoft, well, i do not understand the internet. the key cases right now is the currency. it makes a lot of sense and is a good transfer of value. you could do micro-transactions take all the housing records, and the counties and states keeping track of who owns the deeds to the house. things like that are very far

out in the future as far as adoption. i think now we are just scratching the surface. >> you think it is the volatility of surgery that has heard the development of these technologies surrounding bitcoin? >> i think have -- it has hurt a lot of companies. a lot of companies will go bankrupt. it has made venture capitalists wary. there are very few companies -- i'm probably one of a handful. i think right now, companies need to focus on growing their businesses. it is a tough environment out there. this technology, one of the things it does is eliminate fees. it is very competitive. these cases are not there to support many of the companies from a revenue standpoint. cory: the price bouncing around is one thing. if the value of bitcoin were to get wiped out, would we see companies go away just because

they might have ideas and the technology might be there but the pain of the currency would keep that from happening? >> i do not think you will see bitcoin get wiped out. for it to get wiped out coming basically shut the power down in the world and turn off the internet. companies providing transaction verification services such as us they all need to turn off at once. if that happens, we have a much bigger problem. i am worried about food water, and i probably need to buy a gun. it is a much different problem. cory: we will keep an eye out for the end of that. should civilization and, we will look for you. charles, thank you very much. "bloomberg west" will be right back. ♪

cory: space is full of mysteries, including this one. mysteriously exploding in orbit last month -- what happened? investigators are not telling us. but now we have an expert on all things secret in space. geographer and author of blank spot on the map and academy award winner for cinematographer . congratulations on the documentary about edward snowden. you have done a lot of work. regular viewers of the show will notice my mug that you actually made. i want to show you this patch which i came to see. it shows an octopus sucking the face of north america.

>> nro stands for national reconnaissance office launch. he reconnaissance office is the secret version of fafsa. another space agency builds secret satellites. the hubble telescope enters to other telescopes. they build classified reconnaissance satellites for themselves and serve the cia and also built satellites for the nsa. cory: the satellite that blew up a few weeks ago, debris headed toward the earth the telescopes side. >> what happened is, this is actually an air force satellite. defense meteorological satellite program flight 13. the satellite was launched in 1995. in early february, something

happened. an astronomer in u.k. the pair of binoculars and i think the thing blew up. about 20 days later, the air force fessed up and confirmed this thing had indeed exploded. not really sure wiped her no one is really saying if anyone knows it all. it is actually not the first time one of these spacecraft had blown up. another one earlier, something similar happened to in 2004. cory: interesting. just access -- jeff bezos. the business around it, what will it be used for? will it be used for 3-d tv and communication satellites children, children launching projects?

is this what the satellite things are all about? >> perhaps to an imo is a skeptic when i talk about civilian space programs. i do not think space pays for itself. the cost of building rockets is so high. without tremendous substance, it is really not possible. we talk about space companies did you see elon musk of the world very interested in these contracts. cory: thank you very much. it is fascinating stuff. about to have a press conference right now. listen up. >> passengers have been transported to the hospitals. that number may change. the emergency response airport rescue and firefighting, was exemplary. four trucks responded. 14 airport recipe and firefighters and staff at the airport had 50 people on the airfield.

our response was in minutes. the port authority trained for this repeatedly during the last three weeks. there were two here at laguardia for exactly this circumstance. the last thing i will report is we expect to open the other runway 422. some fights have been diverted to newark and other airports. as mentioned at the beginning of his conference, the ntsb is on its way to laguardia. we will cooperate with them as with delta apparel we will not speculate or comment on the causes of today's incident. i will turn it over. >> thank you. this morning the aircraft was carrying 127 customers and five

crew members. customers were moved to the terminals on buses. they have subsequently been reunited with their families and are at them -- in the myths of going back home or in the city. we're working cooperatively with the port authority and all officials during the course of the investigation. the safety of the passengers and crews is delta's number one priority. i want to thank the efforts of the port authority for the quick response and express delta's appreciation for our cruise for their professional response to help keep our passengers safe and get them to the terminal safely. thank you. >> we will take a few questions. given the fact we are on the way, we will not comment on causes. pat dolan. >> [indiscernible]

>> good question. shortly before the incident, two planes landed and reported good braking action on the runways. this particular runway had been plowed shortly before the incident and pilots on other plans reported good braking action. yes? i think the pilot did everything he could to slow the aircraft down. obviously, the pilots and the pope -- copilots good efforts reflected the fact there were only minor issues. twice can you talk about the buffer zone -- >> can you talk about the buffer zone? >> you're talking about an faa required area at each end of the runway here which slows aircrafts down if they overshoot. approximately 4500 to 5000 feet

here to the left. it did not make contact. >> [inaudible] >> the port authorities responsible making the runways in a clean operable condition. the faa decides which runways are used, which approach planes and pilots will use, and it is up to them to except the designation of the faa. ok, with respect to passengers the shoes did not deploy. the firefighting division of the port authority polices on the scene. 14 firefighters on scene. you can see images of staff members on the wings helping passengers bused to a terminal

here in laguardia. a fuel spill. there was a minor fuel spill. the fuel for a time was leaking out at a rate at about a gallon a minute. the leak was stopped. the new york state department is on scene. port authority and firefighting crews applied to situations under control. there was a significant presence by the fire department in the city of new york and we thank them for their response. minor injuries, yes. it was level five. we were at level five staffing, full staffing today. yes?

>> [inaudible] >> the plane did not make contact with the water. i do not know p would be -- i would be speculating. it was on an embankment but beyond that, i will not speculate. [inaudible] >> minutes. yes, sir. that is not what i said. he does pilots -- two pilots reported. >> [inaudible] i -- >> i did not hear the question. >> [inaudible]

>> the decision to allow planes to land, the decision of which runway is used and which approach is used, that is up to the faa. we had to write our staff here given the conditions they responded literally within a minute. that runway had been plowed literally minutes before at other pilots had reported good braking action. ultimately, obviously, the pilot 's decision. yes? >> [inaudible] >> i will not address any of those questions. those are appropriately address -- directed once they have finished their investigation. thank you.

sorry about that. >> all right. there you heard it. that was the port authority official following an incident in which a delta airliner had run off the runway because of snowy conditions in new york. they said the runway have been plowed literally minutes before the incident and the pilot who landed minutes leading up to the incident had reported great braking action. on the scene to help pastors. there were minor injuries and a minor fuel spill that was then stopped here the situation is therefore now under control. the plane's shoots did not deploy and the play did not make contact with water. reportedly, it is supposed to open back up again around 7:00

p.m. new york time. i will have more details on it after i continue to look at it. they are down, as are the other big airlines overall. cory: scarlet, thank you very much. we appreciate it. we are back talking about space with an expert on the subject. the existence of this program was a secret for a long time and then it was not. >> the nro was begun in 1960. they wanted to do it in secret. they were fighting over who had control over intelligence assets in space. the nra existed for 30 years as a black agency. the existence of the agency itself was a secret. that was true until 1992.

if you were in the air force in the 1980's, you said the words in public, you would be breaking the law. to this day, most everything they do is secret. the fact of the existence of the agency is no longer a secret. cory: the technology is much more advanced than nasa but the size is interesting. i want to read a quote from one of the generals who ran the organization up until recently. specifically, he talked about the size of the agency. an aggressive launch schedule this organization has taken the last 25 years. in number of very large and critical reconnaissance satellites that go into orbit in the next year. next year and the year and a half. these guys are not only launching satellites. they're launching at a much more aggressive pace and probably billions of dollars? >> absolutely. historically, nro has had a larger budget than nasa and the

cia. that is no longer true. part of that is because it is very expensive to put these things into space. it seems like there are a number of new programs that have been going up in the last few years. there is a new generation of imaging satellites. that was the octopus patch you showed. trying to show a new generation of photo imaging satellites. of course, they are always building and examining the intelligence satellites. cory: so every google search you do on your phone, that is the kind of stuff and is a is sucking up? >> based -- >> to a certain extent. the nsa -- over fiber optic cables, that is where the bulk is, across the continent and under the seas. but they have dedicated

spacecraft for signal intelligence satellites. typically, what they will do that for is satellite phones in the middle east, for example, is a big thing. also, military communications. obviously, there are other foreign governments. a thriller quick and we are almost out of time. a lot of private industries are benefiting? >> absolutely. something like 95% of the entire organization is made out of contractors. we are talking about the idea of civilian space agencies, the nro. cory: interesting. trevor, fascinating stuff. we appreciate your time. thanks a lot. you can get the latest headlines all the time on your phone, your tablet, bloomberg.com, and bloomberg radio. you will see more "bloomberg

west" tomorrow. ♪

mark: >> from bloomberg world headquarters in new york, i am mark crumpton and this is "bottom line." ♪ to our viewers here in the united states and those of you joining us from around the world, welcome. we have full coverage of stocks and stories making headlines on this thursday. julie hyman has changes at mcdonald's that are more than just chicken. we will have a roundtable discussion on the latest stress tests