cory: live from. three in san francisco, welcome to "west." -- "bloomberg west." i'm cory johnson. hillary clinton says it was a myth take -- a mistake not to use government e-mail during her time as secretary of state, but she said it was legal. hillary clinton: the laws in effect when i was secretary of state allowed me to use my e-mail for work. that is undisputed. cory: clinton met the media for the first time on the subjects

began at the united nations. she said she opted for convenience. clinton: looking back, it would have been better for me to use separate phones and two e-mail accounts. i thought using one device would have been simpler, and obviously has not worked out that way. cory: clinton said she follow the law by saving all of the estimated 38,000 work-related e-mails, but deleted 31,000 other e-mails because she said they were about personal matters like her daughter's wedding. a stronger dollar and rate hike are putting investors on edge. and eu officials arrive in athens tomorrow to start looking at the greek government's books. however, it's unclear whether the inspections will start as scheduled. the eu has been pressuring greece to restart talks and open its books, warning it will not get additional aid unless it does so. google's chief financial officer is going to retire within the

next six months. he joined google in 2008 after holding a position at mckinsey and bell canada. and the nsa and justice department get hit with another suit about internet surveillance. the aclu and other groups are suing, alleging that mass surveillance violates the constitution. it is called a stream surveillance, where they tap directly into a search engine's backbone to correct -- collect data. according to newly leaked documents from edward snowden, cia researchers have conducted a multiyear, sustained efforts to break apple security measures and gain access to iphones and ipads. these rebel -- these latest revelations are being published in the intercept. it is quite a read.

it tells the story of security researchers created a modified development that allows them to sneak in the back -- the backdoors. they also brag about their achievement at a secret gathering called the jamboree. the document stopped short of saying whether the jamboree was a success and whether researchers were able to actually get into these devices. joining me the us cap, matthew green from johns hopkins school of applied cryptography, and alan butler. let me start in washington with you, alan. when you look at this program, is this beyond targeting bad guys? is this that consider approach to getting everything? allen: i certainly think this program is a huge invasion of privacy and security. we spent the companies spend on

the users spend billions of dollars to buy secure communications technology in these phones that we use everyday. i don't think the government should be in the business of trying to crack the protections of those phones. cory: matthew, let me ask you for your take on this story. it's no surprise there going after every piece of data that they can find, but what is different about this? matthew: one of the things to keep in mind is what is being targeted at the in of the day, our software developers who write the apps for the iphone. at least in the time that these documents were first produced most of those developers were u.s. citizens. the end may be to target's terrace, but the means are to target americans. cory: the notion here is to target terrace -- terrorists.

technologically, it's interesting that apple changed the way the device works and the way to gather information after the iphone three. matthew, what do you make of apple changing and technique? does that suggest that maybe this was working? matthew: i think apple has been at the forefront, developing the most since -- most sophisticated encryption technology. what this document shows is that there are lurking, and secondly there are people attacking them and they should not be doing that. cory: when you look at this, do you see the eye privacy protection -- do you see it as privacy protection, but also as the activity of white and black hackers? alan: it is in apple's best

interest to promote their customers security. the emphasis is on protecting our data, to lock it down and encrypt it and to make sure our medications are secure. cyber security is an issue that is really important to people here in washington d.c. and i don't think the government should be undermining that. cory: i want to hear what tim cook has to say about position of privacy and how apple is changing their own messaging about what privacy means for the company. tim cook: without a doubt safeguarding a world of digitized personal information is an enormous task and knows he will company or organization can accomplish it on its own. that is why we are committed to engaging productively with a white house and a congress, with putting these results into actions.

corn -- cory: it sounds all nice and freddie, these discussions with the white house, but the notion that they are gathering a group of hackers year after year to try to find a way to the back door of apple devices is not suggest a friend conversation would ensue. alan: that is right. obviously, there is an inherent conflict here between the interest of the u.s. government and their role in protecting us and securing our information securing the infrastructure that we use every day to comedic it privately and security -- to communicate privately and securely. cory: we look at the notion of how big this is, look at some of the numbers. what the documents from snowden revealed was that the budget for this thing with $35 million, but they had over 200 people working on this thing and the goal of it was to defeat the strong commercial data and security systems not just on iphone, but

with a focus on the iphone. that is a big budget. imagine a room full of 200 people working full-time on hacking this thing. do we think it works? do we think they were able to get into these devices? matthew: i think that the u.s. government or any foreign intelligence services, if they spend that kind of money trying to attack these devices, given enough time, they will probably succeed. so yes, they probably did. cory: interesting stuff. interesting government stuff an interesting spy stuff. we love it. matthew green and out on the thank you both for your time. -- and alan butler thank you both for your time. ♪

cory: i'm cory johnson and this is "bloomberg west." chevron is being of asset sales. the company says it will increase asset sales by $15 billion and cut new estimate in the next two years. the company will raise production by 20% this year. more oil coming out of the ground. the firm run by steve cohen has hired 30 people to invest in the data. they will build computer models to analyze public training data. point72 was the successor to the

shutdown when they were fined $1.5 billion in insider trading. a service currently being tested in portland oregon, 650 stores in oregon, washington, idaho, and alaska next week, planning to roll out mobile ordering nationwide later this year. extreme sports, but one of the lesser-known passions philanthropy. emily chang caught up with him at the fundraiser for a nonprofit called build an organization that promotes entrepreneur shift in public schools. take a listen. emily: what does the word entrepreneur mean to you? >> when somebody can take an idea and make it real. an entrepreneur could be a business person, an artist, a

musician, anyone who can have an idea and into reality. emily: how did you do that? nick: i dedicated myself to it. when i was 202i promised myself -- when i was 22 i promised myself i would work my tail off to succeed as an entrepreneur. that was extremely important, because i had a lot of failure along the way. emily: right, the first company started failed. nick: and there was a company that i didn't even start that failed. i really had to failures before i succeed with go pro. emily: how did that affect you? nick: at the time, it scared me. it wasn't like it was cool. success has taught me that one of the most important things and entrepreneur can have is perseverance, the dedicated willingness to picking up again and giving yourself another shot. emily: i am -- by way of

disclosure, i'm also on the board of build. what attracts you to this organization? nick: i think their work in making school relevant and exciting and entertaining to kids in -- is incredibly important. entrepreneur ship, the lessons the tools that help kids learn how to start a business, tying all of their other classes together in a meaningful way, in a way that is fun, and friendly in a way they can get paid for -- i mean, talk about motivation. you are trying to get an "a" but if you can make money, that makes it even more motivation. and if you can engage a kid, you can keep them in school. emily: you recently donated half $1 billion to philanthropy making the -- you the sixth biggest philanthropic giver in the u.s. how do you plan to spend money?

nick: i had an incredible support network growing up. i have parents that were telling me the eye could do anything -- that i could do anything. they believed in me and hopefully get my business going. we would like to help others realize their full potential as well. being in oxford or -- being an entrepreneur build speaks to me. through our foundation, my wife and i are extremely sick -- extremely excited to support build. emily: how do you encourage entrepreneur ship, risk-taking within go pro itself? you have a wildly successful product. how do you keep it differentiated from the competition? apple is always looming. how you keep go pro, the thing you are famous for, the best of the bunch? nick: having failed a couple of times, i recognize that your

business can always go away. you can never get complacent. i've had it all taken away from me before. it is important to wake up every morning a little bit scared that it might happen. never think you've finally made it. emily: does xiaomi scare you, or apple? no: -- nick: of course they scare you a little bit. but it drives you. you stay running and stay running hard. that is something that is alive and well at our culture. it is also important to never let yourself stopping a startup, stop trying to reinvent yourself. emily: go pro did have a wildly successful ipo. the stock has been a bit volatile, though. and yet, you have people comparing the company to apple. and analyst told me he thinks you are the next steve jobs. how do you reconcile that?

nick: you don't. you just do the best you can. we are fortunate we have a long-term vision and go pro. it makes a ton of sense when we sit down with investors and they understand our vision. then it becomes a question of are we the ones to execute? are the we the ones to execute that vision you are more often than not, i believe we are. the stock will go up and come down, but as long as we execute that vision, we will be fine. cory: that was my partner emily chang and go pro ceo nick woods. we will be right back. ♪

cory: when the apple. start shipping april 24, -- when the

apple watch start shipping april 24, the ruby focus on the business. my guests were a crucial part of the announcement. what do you see as the functionality in the watch that it was crucial beyond mortal -- beyond mobile? >> one is how quickly you can focus on various functionalities that are available on your watch at apps. i don't want to have to keep going out my phone to approve a deal. i want to look down and cap it and say, that is a good discount, that is approved. cory: and you would glance to do so? >> the average salesperson is glancing down at their phone 150 times per day. especially when someone is

getting distracted. what a watch does is keep you focused. it is a glance, a quick movement. that is a productivity improvement for salespeople service people, anyone on the go. cory: greg, i thought the demo of your service on the watch explains what it is to go with, that a contractor hits the button on his wrist when he starts working, and the second he leaves her house stop that. it's an intriguing location device. why is it so much better on a watch? greg: the watch allows us to take it to the next level, which is currently on your phone you have to member to start in and topic. in small businesses, cash flow is why they are using invoice to go. if you don't member to start the clock, you will not get paid. as soon as you start on the job on site, you start billing. and that makes our customers more money because they get the

invoices out, fully billing for the time they spent on site. cory: you imagine that with the watch, that allows them to go to a homeowner or whatever and it lets me know for a fact that they were there working and gives that summer, if you will come a competitive advantage? greg: i think does, because for the end customer that received the bill, the more confirmation you can get, the more confidence provided. cory: do you expect a watch to be a kind of marketing tool for the service provider? greg: i don't know if it will be as much a marketing tool as it will allow them to access more jobs, because they will know they can build the job professionally. that is something we see in a small business segment. people want to act as

professional as big business. by being able to have really good invoicing, really clear estimates all of these things are enabled through smartphones. cory: the first time out with a brand-new os, what are you looking at? >> we have been looking at wearables. yesterday, we launched salesforce for apple watch. we have three parts to that. we have the analytics cloud that people can now personally glance at data. and we also build a developer kit so people can use the apple watch framework and then use the salesforce cloud platform to build amazing apps. they will still use the apple tools as well, but what you get with the salesforce one clout, it's the biggest cloud in the world. they get security, identity workflow, all of the things to build a business workforce application really fast. now they can expand it to the

watch really quickly. one of the things that is interesting is the technical challenge, you know, managing security for the important business apps. but it's also rebuilding it for the watch. it is rethinking how people will use this in a very quick way to become more productive. cory: i was surprised that your company took your limited resources and focus it on this watch. it is good for marketing purposes to put you on "bloomberg west." why did you make that choice and not choose to develop other platforms that are in more wide -- that are more widely in use? greg: if there is something that invoice to go has proven, it's that small business people absolutely want to adopt these new platforms. but you have to do it in a way that is extremely practical. and in our case help them to

use more money. cory: greg walden of -- greg waldorf and danny devoe, we appreciate it. next up an interesting conversation will ensue. i promise. ♪

>> welcome to "bloomberg west" where we cover innovation technology, and the future of business. president obama denouncing a letter signed by 47 representatives and senators which warned that any diplomatic deal by president obama could easily be reversed by the next president. >> i think it's somewhat ironic to see some members of congress wanting to make common cause with the hardliners in iran.

it's an unusual coalition. >> republicans say a deal could help iran developing nuclear weapon. the new zealand dollar hit a five-year low against the u.s. dollar. a letter sent in november threatened to contaminate baby formula with pesticide 1080 unless new zealand's government stops using it. so far, some 40,000 samples show no trace of the poison. the prime minister labeled the poison threat eco-terrorism. more than $10,000 confiscated by a former billionaire is missing. the asset seizure is part of an ongoing insider trading case against the brazilian. a judge in the case has already come under investigation for apparently driving a luxury car once worth more than $34 billion . google put some huge resources

and -- into looking for the next moonshot idea on the corporate level. the company made a $900 million investment in elon musk's spacex . google has their own business they do, but then there's the venture business and it's a fascinating one, looking at things like how to extend life the search for immortality. bill maris the head of google ventures, is sitting across from me now. really glad to have you on. the story is fascinating. have you seen the story yet? >> i have. it's great stuff and an interesting look at the role of venture capital, and something outlandish bets like extending life? >> i think outlandish is the right word. a lot of the headlines are science-fiction-y nonsense. what we are investing in is -- >> did you just call our magazine nonsense? >> the magazine is not nonsense,

but people get caught up in the headlines of like living forever, but we are investing in companies helping people to live healthier, longer lives, hope fully live to see their grandchildren in a sort of thing. >> do you approach this sort of inking with a new stuff as possible, and they all could all into a theme, and if you could learn the theme, you could select the companies that will be successful? >> we put 36% of our capital last year into life science companies. the goal of those companies is to help people not suffer from diseases not die of congestive heart failure or cancer or the sorts of things that affect lifespan. that's really what we're talking about. >> i'm curious about your approach. it's not just biotech. it's data-driven. you have this big investment in flat iron. describe that to me. >> it our largest lead science investment, founded by two ex-googlers.

they are building a cancer genomics oncology database essentially where they are collectingf information from hospital systems about cancer patients, treatments, and outcomes, and they use that data to provide it to scientists researchers, and physicians to help better the outcomes for future patients. >> it sounds like a similar idea to 23 me. they give you an idea about who you are and where you came from, but the user to create a giant database of genetic markers. >> also a portfolio company of hours, and it's no coincidence they are both companies that live at the intersection of technology and large data sets. genomic data is a great example where we think we can bring a lot of value to help those companies grow. >> when you look at the hiccups that 23andme has had the story is intriguing because it really is pushing against not just the limits of technology, but it's

really pushing against the limits of government and how government looks at this advice. how you help a company get through these or imagine those roadblocks when you make an investment? >> all of our companies face hiccups along the way. in many cases, it has to do with regulations because the innovations the companies are developing bump up against the limits of what policy was made to address. 23andme is trying to do something that was never done before. provide your genomic information to you, and laws written 10, 20 or 100 years ago would never have had that in mind. the company is doing a great job of working that out with the fda. >> in your role, would you take on the advocacy of these things? some of the reasons these laws were written are very sensible. snake oil was once sold. now it's just a metaphor, but the fda was created to save us

from selling snake oil and planting goat gonads into the armpit -- which was done. that's why we have an fda. do you feel like you have to educate the fda or get rid of those kind of rules? >> there's a really important role -- critical role. none of us would want to live in a country without an organization like the fda. it's through cooperation with those policy makers to help them understand what the company is trying to do, and the company needs to similarly understand why those regulations are in place and what bad things can happen without them. it's never one way or the other. our advocacy is in both sides. >> we have to take a quick commercial break. "bloomberg west" will be back with more from bill maris. ♪

>> i'm cory johnson. this is "bloomberg west." we're back with bill maris president and managing partner with google ventures. i want to talk to you about boomer -- about uber. i never thought would be talking about a black car service as one of the most transformative

companies and i think it is. >> i think it is as well. one of the fastest-growing important companies we've seen come along in terms of making the world safer for transportation, the number of people they are employee and, the number of jobs they are creating, and the impact has been huge. >> i've read that they have done as much as adding 50,000 jobs a month. with the economy adding about 300,000 jobs a month, the notion that this startup could be a significant employer in the u.s. is amazing. >> it's a challenge and an opportunity for the company and as investors we try to advocate for them, advise, help them grow, and they've been doing a great job. >> what are the lessons to be taken from that investment? i just looked at it as opentable for black cars. i never imagined they would get 200% market share three years and in san francisco. >> the lesson is the same as it is for a lot of successful startups -- it's about execution

and tenacity. the idea four or five years ago of making it easier to get a taxi is not that interesting idea, but when you add the execution and tenacity and hard-working nature of the team, you get something really special. >> there have been some kind of -- what is the word to use? some jerk moves by the company in terms of notions about privacy busting into the market and figuring things out later. >> it's a young company. they are trying to figure things out, and we are trying to help them do that. any company in our portfolio has bumps in the road, and i think they've been doing a good job. >> specifically with this company, they've raised some interesting issues that are applicable across the board about protecting privacy and what their role should be in protecting privacy. were you happy with the way they handled it before they got caught and after they got caught with following the reporter when she went to visit uber

headquarters? >> it's really not my job to be the judge. it's my job to help them be better. since they are a market leader it's their job to be better than anyone in acting in a principled value-driven way. all of these things that you just mentioned are a great opportunity to remind the company and the people who work there to really value that. >> maybe your next investment you think about that before, not after -- >> we think about that before all the time, but when a company is growing so quickly, something is going to go wrong inevitably. it's how you recover rom that how you address it so it does not happen again -- it's how you recover from that. we learned a lot of those lessons at google. >> looking forward to other investments in transportation and technology, where do you go after that? >> in transportation and technology, there's another company in our portfolio called urban engines, which is trying to alleviate the traffic problem . congestion is a waste of time

and resources and energy. it was also founded by former googlers, which we think is really interesting, and there's a whole world of other investments in the enterprise, data genomic fields we can talk about. >> what does urban engine do? >> they are designing out the rhythms and computer systems to help users find their way through traffic and alleviate congestion so that -- >> does this give them maps essentially of where to go? >> similarity of the using a very algorithmic and computer science driven approach to help them nowhere to go -- similar idea, but using a very out the rhythmic and computer-science-driven approach. if you are a startup, data these days is part of the equation and to give out how to organize the information, use it, protect privacy -- all those things are really important parts of finding your way to success.

>> thank you very much. let's get a check of your bloomberg top headlines right now. lots going on, not least of which in france, mourning the death of 10 people killed while filming a reality show. three french athletes including an olympian championship swimmer were killed with two helicopters collided in argentina as part of filming for a show where contestants are taken to a remote environment and race back to civilization. the cause of the crash is under investigation. in upstate new york, a man charged with fraud for claiming that he owns half of facebook has vanished. his trial is scheduled for may. u.s. marshals found the electronic monitoring bracelet he was wearing at his home without him. the editor it dog race is under way after organizers changed the course. there was not enough snow this year so it was moved north to toasty warm fairbanks. a good portion of the track will be run on river ice.

79 measures -- 79 mushers and their dogs competing for the winner's prize. we'll be right back. ♪

>> i'm cory johnson. this is "bloomberg west." robots may one day run the world, at least that's what the world dairy farms hope. we are finding solutions to seemingly unsolvable problems and we visit sunny late farm in canada, where robots help a staff of just 4 people care for more than 200 cows. >> i'm an hour outside of winnipeg, and it isn't getting any warmer. temperatures out here are easily -20 degrees, and that does not account for the wins that with across the plains -- the wins -- the winds that whip across the plains. it's an unforgiving temperature to do anything particularly

built the cows at 4:00 in the morning. fortunately here, you don't have to. this is weldon plett and his family. they've been milking cows here for four generations. in july of last year, he did something radical -- he replaced his old manual dairy farm equipment with a system that is completely automated. how many cows are in here? >> we've got about 250, 260. >> you can see our vectors. >> he works on his own, 24/7. when he goes along, he pushes up feed so the cows can reach it. >> this could be happening at 3:00 in the morning? >> yes. >> and the cows know when it comes? >> oh, yeah, they get excited. >> this feeding robot is called vector. it scans the barn every 45 minutes. if the fee level is low

anywhere, the vector will automatically go to what is called the kitchen, and he gets restocks with grains, barley and supplements by a giant claw. >> that's the crane that loads all the ingredients. we bring blocks and as you can see, it tells it what to load, and then it picks up, and it am sit in here. there's a scale on here so it knows exactly how much it has got, and it will tell you exactly how much it needs to put in here. >> it just dropped a load. i've got to ask -- is there some sort of safety protocol equity >> the safety protocol we actually broke when we came in here. just don't come in here. >> that's good forage. all this automation looks awesome, but he did not get a bunch of robots because they look cool. dairy farms are facing real problems, and the company behind

all this is equipment inks automation is the answer. >> we feel very strongly that the technology we produce here today is rapidly changing and revolutionizing the dairy industry as a whole. >> for our dairy producers, if you ask them probably one of the biggest things they see as a potential risk is just the availability of that label -- labor to harvest and run the farm efficiently. 80% of the label that is -- 80% of the labor that is available on farms today is immigrant labor. if you look at just the quantity of that labor pool, there is not enough labor available in the traditional markets to support the dairy industries. again, it speaks to why we are seeing a large trend than a growing trend towards automation and robotics technology. >> we have four people left on payroll and i would say the

people left have a same day instead of an inset day. >> he has to milk the cows as well as read them, which brings us to the second part of the system -- the astronaut. >> a new cow is coming in here. what will happen? >> there is actually an id caller on her -- id collar on her. it was a she is due to get milked -- what it's doing right now is cleaning her teeth with brushes. once that is done, it will attach the milking unit. >> around 120 pieces of data are collected every time a cow is milk. the system uses the data to make adjustments on the fly. for example, it can adjust the components of the feed to address certain health issues. weldon can use the data to make sure his cows are producing as much milk for him as possible.

>> did you increase the amount of cows that -- >> we actually did not increase the amount of cows, but our production has really increased. we are producing way more milk with fewer people. the efficiency is way better. like, it not even close. >> automation replaces jobs but in an industry where labor is in short supply automation they turn out to be the thing that helps save the family farm, but right now, weldon is not really thinking about the bigger picture. he's just happy to have some time to relax. >> oh, canada. joining us right now for the "bwest byte," from our toronto bureau, what do you have? >> the number i have is 1247. >> really? what is that? >> that's the popularity -- sort of the position that gig-oa-own

technology was. >> it went sneakers up yesterday. suddenly shuddered yesterday and turned over to creditors -- suddenly shuddered -- suddenly shuttered yesterday and turned over to creditors. >> absolutely. it was a complete surprise to a lot of people in the tech industry. the one analyst i spoke to -- i asked what the tone is right now among the online media or online tech media, and he says "you know, what the hell happened?" >> we've seen this before, but it usually only happens when the bubble burst, not at its very peak right now. you can get the latest headlines all the time on your phone, your tablet, bloomberg.com and bloomberg radio.

we'll see you with more "bloomberg west" tomorrow. ♪