cory: live from pier 3 in san francisco, welcome to "money clip." retail sales dropped around .6%. the snow that hit parts of the east and south are partly to blame. nine of 13 categories posted declines. auto sales, restaurants, and building materials. commerce bank will spend $1.5 billion to sell multiple

investigation for processing transactions for iranians and sunnis, violating sanctions. the police are using showcasing stew find a person who opened fire on two officers in ferguson, missouri, last night. one of them was shot in the face. they were shot outside the police station. both have been released from the hospital. >> we know those two officers took a very hard hit. any time you take a bullet to the face and have a bullet lodged in your head one going through the middle of your right back by god's grace, we did not lose two officers last night. cory: this is one day after thomas jackson resigned as police chief after a scathing justice department report

showing racial bias. charter communications in communications with bright house networks. they say both sides have agreed to the outline of a potential all stock deal. they are not expected to announce a deal until after regulators rule on comcast and time warner cable. the fcc has finally made an approval to show us all the internet rules they approved. 400 pages now available on the fcc website. the documents include the dissent of two w oh republican commissioners -- two republican commissioners.

the phone companies say the relations are unfair and could lead to write regulations. cyber security is one of the most critical issues facing businesses today. it seems -- today, congress's joint to do something about it finally moving on cyber security legislation. the senate intelligence committee will vote on sharing cyber security. this bill has proven to be very divisive. peter cook is on the scene in capitol hill. peter: we have the senate intelligence committee meeting behind closed doors. the chairman of that panel dianne feinstein, they have joined forces to put this bill in front of the committee. we haven't seen the final language. we saw a draft a few weeks ago.

it would provide a safe harbor provision for companies that share information with the government. there are other components, including efforts to address concerns about privacy, personal information of customers of those businesses. that information would have to be removed before it is shared with the government. there are questions over whether that will go far enough. that is the situation right now. we expect the committee to vote this afternoon. we will get our first test of whether or not this legislation truly has bipartisan support and whether this becomes the main vehicle for cyber security legislation in this congress whether or not this is something the white house could accept. cory: privacy advocates have weighed in. what have they said? peter: they don't like the draft. they are worried about the nsa's

access to this information in almost real time. they are worried about the nsa's use of this, whether or not nsa surveillance legislation should have been moved first. they are also worried about that personal information, worried especially that there won't be enough restrictions, enough sticks, if you will, on these companies not to show that information with the government in real-time, that it is really airtight. content -- concerns about how law enforcement is able to use this information going forward. cory: what is the white house's role? peter: the white house has put forward its own proposal. a little bit more attention to privacy issues. so far, they have no weighed in specifically on this bill. if there is a dixon agreement

if the whiteout -- if there is a disagreement, if the white house doesn't like this bill, there could be another battle in this congress. cory: thank you very much. for more on this you can watch richard burr on "street smart" at new pacific 3:00 becky's. alibaba plans to invest $200 million in snapchat. the state would take alibaba's total equity to $6.3 billion. it's not just snapchat, tango, and messaging services and startups like lyft.

why is ali baba spending all this money specially on -- especially on yours companies? david, this is fascinating to me. what does this mean? what does alibaba want out of snapchat? david: they want higher returns on their capital. they are only getting 1.3% or so from snapchat. it is not a significant stake in terms of strategy or ownership or control of snapchat or something that would lead to an acquisition per se. alibaba raised more money than it needed in its $22 billion ipo not long ago. it is a very profitable company. like so many investors around the world, it is try to park its cash that it is -- cash where it is lucrative while interest rates are very low. this investment is very different.

this is much more significant in terms of alibaba's long-term future. cory: here's what i can't figure out. does alibaba want to play in u.s. tech? or does it give them a way -- does it give snapchat a way to get into china with ali baba's blessing and maybe the blessing of the government? david: those are two x and questions. certainly -- two excellent questions. certainly, it wants to be in the world's second-largest internet market. line and is growing like crazy, especially in asia. all of these communications-oriented

companies, each that is somewhat different though, is competing with one another. if snapchat is super aggressive in its growth ambition, they have to be global. so they have to get in china. cory: i'm so interested in the chinese interest. we have a ton of viewers in hong kong and china and throughout asia. i feel like they want to know what is going on in silicon valley, not global tech. i wonder if this investment is a peak, a snapshot perhaps, what is going on for alibaba. david: there is another piece of it from their strategic challenges. alibaba is primarily a commerce company. it has become almost a conglomerate. it is doing so many things are but one thing it is not strong

and is an indication's. which is why it's investment in weibo is so c important. very interesting some of the things they are doing at snapchat in terms of using media and turning consumer content into media for the consumers. cory: there are also parallels or it dovetails with the collapse of messaging, sms messaging, which has been a huge contributor to the growth of telecom companies all over the world. we see it. i'm back and being replaced by snapchat, by all these services. david: that was a big topic in barcelona. all those carriers view themselves as being attacked by the so-called over the top

layers, like snapchat or facebook whatsapp facebook messenger, which is taking away big part of their business, which is text messaging, sms, and only requiring them to provide the bandwidth. this is an ongoing global battle between those two sectors of the industry. nobody really knows how it will come out. frankly, they are both quite profitable sectors of business so i am not setting any tears on either side. cory: just a little bit of tears for verizon and at&t? [laughter] david, always good to see you. "bloomberg west" will be right back.

cory: i am cory johnson. this is "bloomberg west."

[indiscernible] they are cheaper and easier to trade. toyota is recalling 2500 rav4 ev models made with tesla drivetrains. the glitch could cause the car to shift into neutral while driving and lose power. toyota and tesla ended their partnership last year. lyft has gotten a huge funding round, $530 million raised from investors, including rakuten in japan for. 11.9% of the company. . the money will unit a boost as it tries to take on its larger rival uber.

in health care genetic testing is moving the on sewing test kits to consumers and data to go in -- to pharmaceutical companies. today, they started investing in drugs themselves. liars 23 -- why is 23andme getting into pharmaceuticals? this is fascinating to me. this is a very big change for them. >> in some ways, you can argue it is the natural evolution of the data. now they are saying they want to turn this research into drugs. but they are moving fast. they just got their first fda approval for a single test.

and now we are going to sell drugs. cory: her comments to you are hilarious. carolyn: yeah, she was joking. we don't want to be born here. cory: what advantages does 23andme have in developing drugs? caroline: it has genetic data from 650,000 customers that have consented to let them use the data for research. so they can look at the data and say are there genetic components that are leading to these diseases that these patients have and use that's a start finding drugs. cory: and they can discover new things that have not been seen

before because they have that data. caroline: they have an infinite question box. they get this information about customers that goes be on just their dna and they are hoping to draw ties. cory: it has always been a big data play but it will be increasing. i wonder if this changes their requirements, what they need in the backend, a whole different level of computing power to understand what this is all now if they are going to go in that direction. caroline: this is so new and to happen so fast. richard scheller announced his retirement in december. instantly went on board with 23andme. even talking to them, they do not know which diseases they will go after.

how far will they take this up before they start looking for partners because running the clinical trials are beyond their scope. they don't know yet. cory: have you taken the test? caroline: i have not appeared they stop to being able to sell it for help analysis. cory: stick around. we are going to talk about this some more. we are going to dig a little bit deeper into what this means and how the world might change. ♪

cory: 23andme is transforming itself. let's talk about what this means. jay, you invest in tech. you invest in pharma.

this is an interesting development. jay: it is certainly big news, a surprise to us. cory: why is a big news? jay: you don't think of 23andme as a company that would go into drug discovery. cory: is this a direction we will see of companies that are doing rock tech stuff with electrons and big data and exploiting that? or is this really a specialty that it will be able to exploit? jay: there are lots of ways to solve this problem. there are nonprofit entities that have big genetic data they can use. a lot of great discoveries in terms of the mechanism that comes out of academic and nonacademic institutions. cory: there's this a fairly unique approach, to start with massive piles of data and try to

find a drug within it? caroline: yeah, it is unique. those that have taken the approach of working with pharma companies already have been selling chunks of genetic data to pfizer and companies to partner. now they are doing it on their own. cory: do you think selling data to pfizer will hurt the cousin now it will be a competitor and not just a partner? jay: i don't think so. there are so many paths to success. it is unlikely whoever there customer would identify the same target and be competitive. cory: what is the hardest part for them starting this new venture? jay: i think it will be raising the money to support drug discovery. it's experience a important -- it is extremely important.

this industry is unique in the world in that it takes between 10 and 12 years to target, to actually launch a product. it probably costs on the order of a billion dollars or more per product. 90% to 95% of the time, you fail along the way. you need capital to really drive the discovery forward. it's a challenge for anybody. we are in a good environment to raise money. they probably will raise the money but it will be ethical. cory: do they -- but it will be difficult. cory: do they think they will have a that her rate and a better speed-to-market as they know or they might know or they think they will know how the drugs will react before they tested? caroline: yeah, 48 total -- four a total newcomer on the market.

they say they have connections with consumers. they are basically saying that other big pharma goes out and finds patients, use them as lab rats, but we have a connection with our consumer. we talked to them. we can recruit them. and we can talk to them and tell them you are helping with this research, with this discovery. they think that will make them different. cory: is that an expensive -- an extensive part of designing drugs? jay: clinical trials are expensive and time-consuming. i'm not sure it will be 10 times faster or cheaper using 23andme. you spend a lot of time waiting for fda to get back to you when you request to start a trial. they need to review data and they may ask for more data. even just the final step of submitting our new drug application to fda, they have nine months to review it and get

back to you. cory: thank you very much. "bloomberg west" will be right back.

cory: you are watching "bloomberg west." i am cory johnson. russia has expanded its presence in latin america in ways that signal "a clear return to cold war tactics." that is according to so than forces john kelly. kelly emphasized that russia is stepping up efforts to gain -- gain influence in the americas. vladimir putin accuses america of meddling in his backyard, in ukraine.

the ayatollah ali commodity suggests internal division in washington -- >> when the current administration is no longer in office, the deal that america is agreeing with you and the commitments it is making is no and void. this is the ultimate collapse of political ethics. cory: those talks are said to resume on sunday. on march 4, agents were returning from a party. they have since been reassigned to other jobs. one of those agents is more commonly, the second in command in president obama's security detail.

sales will be $20 million lower than analysts had been predicting at lavrov liquidators -- at lumber liquidators. >> we came into this with positive brand sentiment. since the broadcast proximately 8% of consumers say they would not consider buying from us at this time. we have brought in additional resources to assist us in responding. cory: he also said the company is unable to offer any profit sales forecast for the following year. intel is down to -- is down about a billion dollars. corporate demand has been following. it is happening in small and

medium businesses. hillary clinton thought it would be easier to carry one device for both personal and work e-mails. doesn't everyone? but could she have done differently to protect your data. we have that, problem of having a job and having a life and having e-mail for both. this coalescing of technology and politics, particularly interesting. you can have two e-mail accounts on one phone. can you in government? sanjay: of course you can. perhaps a little bit of an indictment of what you could do on a blackberry. balance came out in 2013.

cory: so on a blackberry at that time, you could not due to do bureau? -- do two? sanjay: in the iphone world, samsung world, it is so much easier. today in the business world, we have been very good in making security management for this containerized life. cory: you guys have had a particular product sandbox describe that to me. sanjay: we acquired sand watch, working with the highest levels of security. this is the department of justice, white house and several others. in essence, we are able to

create a personal space for you where you can have your personal life, facebook or e-mail, and a secure place for your e-mail i rarely. corporate managed and corporate controlled. cory: let's see what hillary had to say when she was asked about this. secretary clinton: i thought it would be easier to carry just one device for my work and for my personal e-mails instead of two. looking back, it would have been better that i -- had icily used a second e-mail account and carried a second phone, but at the time this did not seem like an issue. cory: is this unusual? was it unusual at the time because of the limitations of the blackberry? sanjay: possibly. in today's world -- i am not going to comment on having a private server. cory: bloomberg news did a story

that said a highly insecure way -- hillary clinton said shealy sent one classified -- said she only sent one classified e-mail to a u.k. official. that is incredible. sanjay: it is not very different from banks. banks have very high security. they have been creating a security zone. the government has no different needs. what we have been focused on is how you can mix those two lives in this post pc world, even post black airy world. -- blackberry world.

what happened between 2008 and 2012, i am not going to comment on the political hot potato. nonetheless, if you look back even secretary of state kerry said he is doing their. if they are using an iphone or samsung phone, have a separation of church ends late, so to speak, between their work life and their personal life. cory: i wonder how big is that business. sanjay: absolutely big. we talked about this almost a year ago. at least up to 7 billion people in the world. a billion of them work for some company. and all of them have at least one. i have three devices. cory: you have three devices? sanjay: you have to keep folks happy.

whether it's an ipad or some smart phone or another. everybody needs to be secured and managed for exactly these reasons. it could be a high-security use case like a bank or one that is not as regulated. we take that entire landscape of a billion devices. it is similar to what symantec and mcafee did in the pc world. cory: is the byod trend of users is to bring their own device, does that exacerbate the problem of insecure e-mails the mix of personal and work? sanjay: either a corporate own policy were the company or government gives you phones, you have to be on the forefront of being on a byo policy.

most of that is now becoming a self science -- a salt science -- a solved science. cory: "bloomberg west" will be right back.

cory: the workforce in many tech companies are white dudes like me. but now he more diversity to digital media and advertising. iab education foundation is designed to foster this. talk to me why you guys are taking this big effort.

randall: and order to get a continuously improving workforce, we need to be a hell of a lot more open to the diverse constituencies that make up our market faces our audiences here in the united states and abroad. you got to represent the people you work for and we don't. so if we are going to have a better workforce, we have to be open to higher degrees, much higher degrees of gender diversity, ethnic diversity, and also economic advantage and distant bed edged -- and this advantage diversity -- and disadvantaged diversity.

tim: most companies are not representing the consumers that they are touching or need to touch. diversity is a real social and cultural challenge inside our industry. it is also one of the biggest business opportunities in general. something i would like my own company is how do we make our products and services more attractive to more diverse audiences. i think that comes with diversity inside first. cory: and this notion, how hiring works, it is interesting how these issues come up in a way where the hirers are just not aware of. people being passed over because their name looks different. when lakisha jackson applies for a job and emily smith applies for a job.

randall: we have been doing a lot of work in our listening to her here at the bloomberg headquarters. she has some of the best research i have ever seen on unconscious bias. it is breathtaking. it is so astonishing, you cannot even be depressed by it. . you would be amazed. . you mentioned one, changing the names on top of resumes so they are identifiably hispanic or identifiably african-american or seemingly white. and the difference in callbacks is three or four acts. once she showed today i had never seen before which kind of blows your mind. she headlined it "crossing while black."

drivers will stop for a white person in a crosswalk i think it was three or four times more frequently than they will stop for a black person in a crosswalk. but it is over and over again. she had this wonderful piece of the presentation where she had a student with whom she was working who was completely natively fluent in spanish and he was and his real name was ron baker. so they send him on video job interviews under his real name juan baker and alejandro diaz. some were totally fluent unacce nted english. the difference in callbacks in video interviews was night and

day. cory: we knew there was a problem, right? when you are hiring people, tim, what are you doing -- what caught me was in computer science 101, where there are all white dudes applying. what are you doing in your hiring to get away from that? tim: what we have been talking about our roadshow across a country is making sure that diverse talent is involved in the recruiting process. if you and i are trying to recruit diverse people it is different if they are sitting across the table from somebody different. even at university campuses, when a diverse person comes onto a university campus, if they don't feel like the diverse community there is available to them and figure out how to fit in, they have higher attrition rates. companies have the same problem. even if you hire diverse people if the culture is not around

more types of diversity or it is not understood how diversity fits in the culture, you end up with more diversity issues. cory: sending the black woman down to the career fair, then they say don't forget about your real job. it is important for the ceo or manager of a company to say this is your real job. tim: just instituted this year, we are going to try to get 30% increase in diversity in the polls we hire from. i think people in the diversity area are afraid that if we put a metric is ther -- a metric in there. a leader in my position, i can affect how we do diversity inside of my company and i can

help randy with industry-level things. my goal as a manager is to make our company a strong as possible with the best talent in the world. you would be kidding yourself right now if you look at where the internet is going or where digital is going. if you don't look at diverse populations, you are probably going to regret it. my team recognize that and we made a physical change. our hump and is going to get this -- get paid this year on its metrics and how we open up more diversity and to bring more talent into the company. cory: thank you very much. let's get the top headlines. united technologies [indiscernible] they make black hawk helicopters for the military. sikorsky probably does not fit

into the company's portfolio. the nba says its owner phrase are getting it wrong. they have made the wrong call or non-call more than 14% of the time in the final minutes of a game so far this month. one of the biggest fights in history, manny pacquiao and mayweather junior finally facing off. they met with the media yesterday. >> this is a fight that the world cannot miss. this is an unbelievable matchup. action-packed fight. cory: tickets for the fight are as much a $7,500. it could be much more in the secondary market. mark crumpton joins us from new york. mark: the u.s. department of the interior is teaming up with american express to enlist

volunteers to preserve america's national parks and public lands. interior secretary sally jewell will join me to discuss the state of the national parks and the importance of community service in the time of budget cuts. cory: thank you very much. "bloomberg west" will be right back.

cory: it's time for the b we st byte. >> i've got 4%. one is 4% of the 6 million -- $6 billion at a thai zingy agency is run by miss -- $6 billion of

advertising agency is run by machines today. when you think about it, if this were a baseball game, we would be two outs in the first inning and the other team has not gotten up yet. we are excited about the 4% going into the 96%. cory: do you see this -- will we get to 100%? how big will programmatic be in advertising? randall: they already are. the upper advertising you see in taxicabs -- actually, lots of billboards are already. the barbell strategy is a good way of thinking it through. there will be a big chunk of advertising that will be priced placed, optimized through automated mechanisms.

but we are already seeing the opposite take place. there is a big chunk of advertising that is increasingly customized, specialized, really designed to fit very specific environments and very specific consumer bases. that is the barbell that tim has talked about for years. it is both-and, not either/or. much more highly customized partner marketing programs. cory: do you think we will see this adoption spike this year or next year? tim: i think it is. movie viewership in theaters has re-say five-year low. people are really going digital -- has reached a five-year low.

people are really going digital. cory: "bloomberg west" will be back tomorrow.

>> from bloomberg world headquarters in new york, i'm mark crumpton, this is "bottom line." a main street perspective. mel: -- mark: welcome, we have stories in the stocks. scarlet fu is following lundberg liquidaters. the company is reporting lower sales as its company takes a hit. and