cory: live from san francisco welcome to "bloomberg west." i am cory johnson. little check on the bloomberg top headlines. the nuclear deal with iran is far from a sure thing. john kerry has been meeting with his counterpart in switzerland. he said before the meeting there are significant differences. john kerry: we have made some progress, but there are still gaps, important gaps. an important choices that need to be made by iran in order to be able to move forward. cory: he also called the letter

written to the iranian government by senators unconstitutional. john kerry: i do know this letter was absolutely calculated directly to interfere with these negotiations. it specifically inserts itself directly to the leader of another country saying don't negotiate with these guys because we are going to change this. cory: the deadline for a deal with iran is at the end of the month. last-minute campaigning in israel ahead of key elections tomorrow. benjamin netanyahu is trailing in the polls. he says rivals will bend to the palestinians and failed to safeguard the country from iran. the centerleft leader says the public wants change. procter & gamble is one the sale or ipo of the beauty brand. people familiar with the deal

says it is working with advisers but has not finalized the deal of which products would be spun off. includes cover girl. it wants to exit a number of product lines where it is not a market leader. they have accepted a sweetened takeover officer from valley. -- valleyiant. they will pay $11 billion in the deal. valiant was to get its hands on drugs, including a potential blockbuster still awaiting fda approval for additional uses. the alibaba chairman is in germany at a conference talking about improving relations with europe's tech community. he says the day is coming when women will assume more power. jack ma: i strongly believe in the future, we will have a lot of women leaders because in the future people not only focus on muscle and power, they focus on

wisdom. they focus on caring and response ability. cory: ma also showed off a product alibaba is working on that would allow people to make mobile payments using facial recognition technology. blackberry is reentering the tablet market hoping its reputation for security will turn the new product into a hit. blackberry is working with ibm and samsung. security software is the focus. the tablet is equipped with a security guard with encryption along with software that allows a user to separate personal and work apps. the c.b.o. is at the conference in hanover, germany. in toronto, the vice president of security compass let me start with you.

is it possible to have a spy proof device of any kind? >> no, you cannot say anything is spy proof. what you can do is do your best to build and security features and build security and from the start so it is as spy proof as possible. more secure than other devices. cory: interesting. do you maintain this product is spy proof? in what way is it more secure and how can you measure such a thing? >> in fact, we do. when the goal is security, if you want to get security in people's hands, it has to be as visible as possible. from that angle, it is always hard to prove. we have certifications and/or ongoing -- and are undergoing evaluations. achieving those securities like

the nato restricted grade gives us great confidence it is as spy proof as possible. cory: when petering about multifactor identification and what happens with the network about hiding the identity of the device. what is the secret of how it works? >> one is we are not relying on the security of the device. we are relying on the security of the external hardware token, a smartcard chip. long-term secrets like private keys are embedded in the card and never leave and are not exposed to the device at all. we use that chip which is inside a card that we can access from the application to authenticate things like encryption and so forth. cory: tell me about this chip.

what is it about it that is able to do real-time calculations and creating new personal identification keys all the time? >> yes, absolutely. that is what this chip does. like the smartcard chips on credit cards or some cards -- sim cards, but much more secure. they are practically tamperproof and non-hackable and act like a mini crypto computer that do encryptions real-time as you need it. cory: we have seen this approach before. typically a personal identification key is written once and sticks with the vice -- device forever. is this a different approach? go ahead. >> i think there is something different about this. as he mentioned, where it is

being stored on the device and the fact there is physical separation does make a difference in terms of how exploitable it is. there is a difference from your standard device. cory: i also wonder if the market share or lack thereof for blackberry sort of makes the device more secure. why would hackers but a lot of time into going after something that has less than .5% of market share? >> that is a valid point. when you hear about public disclosures of security issues they are typically done by security researchers. security researchers are volunteering time or paid to find security issues in hardware or software. they will typically spend their time focused on things that do have a lot of market share. from a mobile apps perspective they would be spending a lot of time on ios and android devices. it is hard to say without the

same scrutiny what level of security another platform would have. cory: go ahead. >> our products are typically in the hands of the leaders of state, prime ministers chancellors, presidents. maybe the market is a niche, but these individuals are highly important individuals. we are seeking to protect their information. cory: we have seen the n.s.a. infamously thanks to edward snowden that they hacked into angela merkel's phone and we re able to take the metadata from her phone calls. is that your first sales call to call angela merkel and say you have to have one of these tablets? >> she does have one of our products. she has a secure blackberry. cory: it is curious to me that

your software has developed -- is developed in germany and that library which has a reputation for security going back a decade had to acquire your company to get the software. what is it about the development of the software in germany that was better than anything blackberry could concoct in canada? >> the reputation for my company is based on encrypting voice. blackberry is famous for encrypting data. library has a huge -- blackberry has a huge pedigree in securing e-mail. that his wife is to get a perfect -- fits together -- that is why it fits together perfectly. it is a niche market. blackberry is still addressing larger enterprise operations. cory: when you look back at what happened with the playbook, what

makes this better? i know you say you will shift -- ship 10,000. how many do you think you will sell? was the playbook fly from a security perspective? >> i don't think so. i think this is a project we brought into the marriage. we have this partnership with samsung and other partners to make the secure tablet for government customers long before we got acquired by blackberry. with the partnership between blackberry and samsung this fits well into the overall strategy blackberry has. moving to services, maintaining our own hardware with high-security applications and offering other platforms. i think that is the key here. we are not trying to argue who is making the best tablet.

we are just trying to offer our service on whatever tablet you want. cory: interesting stuff and interesting approach from samsung and blackberry. thank you both. we appreciate it. "bloomberg west" will be right back. ♪

cory: i'm cory johnson. this is "bloomberg west." here are top headlines. from her durst has agreed to be extradited to face murder charges. he was arrested in new orleans over the weekend. the h.b.o. documentary showed him whispering "he killed them all. he was acquitted for killing a neighbor in texas on a self-defense claim and questioned but never charged in the 1982 disappearance of his life. -- wife.

angela merkel says the e.u. will consider more sanctions against russia if there is a violation of the cease-fire in ukraine. she met with ukraine's president in berlin today. petro poroshenko accuses rebels of violating the truce saying forces were attacked a dozen times last night alone. on a different note, who can knock off the wildcats? according to the oddsmakers in vegas, wisconsin has the best shot. the wildcats would only be a 5.5 favorite compared to do. kentucky is going for the first undefeated season since indiana pulled it off in 1976. it is the annual interactive festival with the top minds of technology in austin, texas. this year, the social media app is getting a lot of attention and so are protests over the

highly anticipated robot by google. our technology reporter is there covering it for us. going to the food trucks with the startup geeks. >> i may texas gal, so i'm glad to be here. cory: how is the barbecue? >> great. cory: they are trying to glom onto the microbrews, music and have acute -- barbecue. >> there are a lot of craft brews a lot of mexican, a lot of margaritas. it has been a good time here for the tech companies. cory: we were having margaritas on the set to get ready for your appearance this morning. the task of being a reporter at an event that is so spread out where you want to figure out what is bubbling up while you're there but you don't really know is not unlike investors showing up at an investor conference.

how do you approach the task of figuring out what is going on? >> there is a lot of noise. i have boiled it down to some things -- themes. we've seen a lot about connected devices. there is a focus on women and diversity. you boil it down to your themes. i've taken a lot of meetings off-campus. there are wonderful folks in from the west coast i don't get to see on the east coast. a lot of coffee, drinks, and having a good time. eric schmidt is one of the keynotes. you can see the folks starting to line up behind me. he is expected to talk on another theme that was a continuation from last year, which is privacy. you saw snowden last year talk about encryption and how the onus is on tech companies to protect users. we may hear more of that today. cory: let's start with edward snowden. last year, he spoke from russia

by satellite where he is on the lam basically. he spoke again this year. maybe the shock value was lost. he did not get so much attention. what did he have to say? >> he's still hammering home the idea the government should be staying out of our information and it is the tech companies who need to be the shield for users. if users are going to trust somebody with their information, it is on the tech companies to maintain that data for users. cory: in terms of connected home we have been hearing about it for the last 20 years. i am surprised that is a focus. >> a c.e.o. did a keynote in the last couple of days this weekend talking about some of the challenges, saying some of the onus that now falls on home depots and retailers the need to educate your salespeople to tell

consumers why these connected devices are so valuable. he was there with scott weiss who asked if connected homes is a normal thing or a nerd thing. he did say it is still for the nerds mostly because these devices do not talk to each other yet. it is the folks having to get the devices to talk to each other and build it out in their own homes. than normal consumer is not there yet from a technological standpoint. cory: there is a company that was getting a lot of attention going in. twitter kind of pulled up along --pulled out the rug underneath them. this is a live conferencing app that would map on top of twitter followers. twitter said not so much meer kat cannot have it for free. >> the c.e.o. spoke to bloomberg yesterday and addressed it and said it might have been sooner

than we expected, but we are focused on building out a social platform and continuing to do what we can without that information. meerkat is still up and working. i have seen a lot of it at the conference with people showing what they are seeing in real-time. they are trying to work around this lockout from twitter's user data. cory: we appreciate your time. thank you very much. "bloomberg west" will be right back. ♪

cory: i am cory johnson. this is "bloomberg west." the videoconferencing system only a few month after shipping the first product in december have only sold to 500 company so far.

the system, the apps, and hardware. the c.e.o. joining us now. there's clearly hardware involved. show me how it works. >> the way high-five works as it gives companies a way to seamlessly join video calls wherever you are, weather in a physical room or from a mobile device like i-5. you install the app. i will open my calendar. we have one of our coworkers in the office on a video call already. i will click on this link. you will see us jump directly into a video call. jess is going to appear. we will be able to talk to her on the iphone. wave to everybody at bloomberg and say hi. cory: she is in our office. >> she is in the room next to us. we set this up special for bloomberg. what is unique is the integration between the app and

hardware device attached to a high five enabled television set. it works seamlessly. is awkward for us to be talking to each other on a phone. this purple magically appears that allows me to swipe and hand the call off from the phone to the t.v.. i will swipe and jess will move magically from my phone to the television set. we will be able to use the t.v. to interact with her. cory: talk about the dynamics in the industry. cisco was huge in the business before. you have other competitors, traditional makers of the hardware. the sales of the hardware units have been falling and replaced by purely app based stuff. >> let me say goodbye to jess an answer the question. thank you. the thing that is interesting

about this market is companies like cisco and polycom have largely served the high-end of the market, fortune 500 c.e.o.'s, executives, where the money is today. the reason why is because those customers are the only ones that can afford the complexity and cost of those systems which are too hard to use. what is unique about highfive is we have taken that technology with a comparable experience and quality, better functionality, and made it available to companies of any size to put in every room at 1/20 of the cost. the software-only solutions are a big market. companies are delivering software-only solutions. would it unique -- what is unique is today's workforce is demanding to work from anywhere. that is why the integrated solution gives companies a way to put video everywhere.

there are 25 million rooms in the world. only one million are wired for video. over the next five years, you will see all 25 million wired for video. cory: thank you. "bloomberg west" will be right back. ♪ . .

cory: you are watching " bloomberg west" we focus on innovation technology, and future of business. i'm cory johnson. russian president vladimir putin makes his first appearance in 11 days. he held talks with his counterpart from curious dan. here they are today. >> the president of russia is not only walking, he drives his guest around. he even drives ready fast, so as they say in russian, don't get ahead of yourself.

>> it would be boring without gossip. just boring. cory: it was proved's longest disappearance from public view in years. u.s. factory production fell, a signal of muted economic growth will stop the rising u.s. dollar and bad weather on the east coast all hurting production. life time fitness is going private. leonard green and tpg capital are buying the minnesota-based company in a transaction worth more than $4 billion. one of the biggest buyouts of the year so far. they said that they were going to slow their conversion after cutting our sales forecast. some of these is getting a new ceo. tad smith will take over at the end of the month, the former ceo had been under pressure from daniel loeb to cut costs and increase shareholder value.

so the has failed to turn the big auction volume into higher profits. the wpp ceo stands to rake in more than $53 million from a controversial incentive plan this year. it's the maximum allowed payout under a plan approved shareholders 2009. it went into place into 2013 following a shareholder outcry. he's already the highest-paid ceo in great britain. does the digital generation really care about tv news? one person is making a big that that it does. it allows people to watch me news services anytime, anywhere. they are teaming up to bring 30 local news stations to the app. joining us is the cofounder. this is of particular interest

to those of us who wear makeup for a living. tv news is interesting because it so well adapted for the television, but there's great consumption on the smaller screen. we are hearing more and more about it on mobile. how do you adapt tv news for mobile? >> it's interesting. we examined the -- we designed the whole experience around the idea that you can watch news anytime, anywhere. there's a whole generation of millenials that deeply care what is going on. that -- many of them say watching news is interesting to them. the problem is how the content is packaged at how user experience is designed. what we have done is make it extremely easy to consume and watch this award-winning journalism from brands like bloomberg, for instance. cory: tribune is a big deal because it is local and a different focus, but i wonder

about -- you say the award-winning journalism available, but in the same way that i read people read more than they have ever read before but they are reading buzz feed list. i wonder if they might he watching more video, but they are watching gifs, watching people do skateboard tricks and fall on their faces. what do people want to watch that's different than traditional television? >> i think there are a few things. first of all, the length. very long pieces do not work on digital. we have found the ideal size is about three minutes. in terms of topics, -- cory: let's stick with this -- they like three minutes more than five, but do they like three minutes more than two minutes? >> it depends. if it's a short segment about what are the top stories for the

day, just a minute is probably enough. but if it is a feature report from a remote area in the world like iraq or syria, maybe they prefer a type of media like vice news coming for instance. you can see more serious topics like politics and business resonate very well. it's all about how you create the user experience. cory: in terms of how millenials want to focus on news -- the collapse of revenues in the news market is pretty interesting. millenial still want to watch local news? he they want to watch the business of advertising from car dealers and so on? that's it is about the experience. when we are talking about traditional, local tv newscasts you've got a lot of talking heads you have an experience

that -- sometimes there's the cable tv experience, millenial's don't get that, but they care about the content. we give them news content that automatically plays one after the other. as a user, you get the best of both worlds will stop you get the effortless experience that live tv provides, but you also get the density millenials are used to with things like pandora or spotify. we are doing the same thing for news. cory: thank you very much. it's an interesting answer to a problem we think about a lot. "bloomberg west those quote will be right back. ♪

cory: i'm cory johnson and this is "bloomberg west." it's time for our series "the

spark" with inventors finding solutions for seemingly unsolvable problems. one group is come up with a way to capture carbon emissions before they go into the atmosphere. it could have a huge effect on climate change. sam grobart got a look at it. sam: right now, the energy system puts about 5 billion tons of carbon dioxide into the atmosphere every year. it's just too much. it exceeds the ability of the earth to absorb it again. the trick is we have to keep from putting it in the atmosphere without giving up the energy that we all love. the ideas to catch the carbon dioxide before we dump it into the atmosphere. -- the idea is to catch the carbon dioxide before we dump it into the atmosphere.

sam: at this government lab in california, scientists are working on a technology called carbon capture. the goal is to catch the co2 spewing out of power plants before it goes into the air and then store that co2 safely underground. this technology is a reality. it is in use at a handful of power plants around the world. but it is still too inexpensive -- still too expensive and inefficient to make a difference. this team may have found a way to change that. >> give it a swirl and you will agitate them up. a bunch of little capsules in there. sam: it's like topeka on top of your sushi. >> we are trying to improve the way we absorb and capture carbon will stop we do that using a small microcapsules.

we take a fluid that will absorb co2 and wrap it in a shell that is a polymer, so you have these capsules in the exhaust stack being compacted by the exhaust of the coal plant. the co2 will pass through the polymer shell and be absorbed by the liquid core. sam: so the co2 stays inside the capsule come a capturing it. >> exactly. what we started to look at how to capture carbon dioxide, we had to think about what with the problems with the existing processes and what can we do to make that are? captured carbon dioxide from power plants, for the moment it is still too expensive. sam: the problem is it takes a lot of energy to make the process work, which makes it expensive. that's with the capsules come in. they make the process faster more efficient and therefore, cheaper. >> it's often about surface area.

that's the trick we do with the surface area. by forcing these tiny droplets they contact an enormous amount of surface area and observe the gas faster. so we save energy and expense using this new process. >> we are going to do a little demonstration. this is a carbonated drink. we're going to pour some of this in there and we will add the capsules and we can actually see them absorb this co2 out of the soda. they will go to a ph swing and change from dark blue to yellow. sam: now they are blue -- >> you can see the are getting lighter -- you can see they are getting lighter. sam: now all of that co2 is inside each of the tiny individual capsules. even if every power plant in the world started using these capsules tomorrow, it still would not be a complete solution to climate change.

capsules are not practical in cars for example because they would add too much weight will stop but right now, capturing carbon from fossil fuel our plant is probably our best shot at slowing global warming. that is until we can switch to cleaner ways of making energy. >> the amount of co2 we are producing needs to be dealt with. this is a way to try to tackle that. he will live long enough to see these things actually change the climate of the planet and that's really cool to think about. cory: that was sam grobart it for this week's edition of "the spark." -- the company had been a league apparel partner. a deed is is not giving up focusing on amateur leagues and developing new products. ikea does not want you playing hide and seek in its stores.

a spirited round of the game attracted people to a belgian ikea last summer. the company has forbidden similar events in its dutch stores citing safety reasons. the organizers of the game that word out over facebook. more than 32,000 people signed up to play hide and seek in an ikea store in the netherlands. former spice girl turned fashion designer, victoria beckham, is opening her flagship store in london. she will open another in hong kong. she spoke to bloomberg in an exclusive interview. >> i love it here. i love the energy i love the women. they understand fashion and they are passionate about fashion. it really does seem like the natural place for the second store. cory: you can watch that full interview on bloomberg.com. "bottom line" with mark crumpton

is coming up the top of the hour. what's going on? mark: for the first time since 2011, philippine airlines is resuming flights between manila and new york city. its goal is to service the half-million ethnic filipinos who live on the east coast of the united states. the president of the airlines will join me to discuss the carriers strategy if the strong u.s. dollars hurting business and the search for strategic investment. i will see you in a few minutes. cory: thank you very much. "bloomberg west" will be right back. ♪

cory: i'm cory johnson this is

"bloomberg west." one company called teton gravity research has been making award-winning films about extremes boards for nearly two decades. their business has taken off thanks in part to advancements in equipment, video platforms like youtube. you got march madness and then this is madness -- the company gives us videos that will blow your mind. >> i think one thing that is really cool is we are shooting with the same cameras hollywood is. there used to be a big gap between the equipment we were able to use for action sports in size and weight, so now we are shooting these ultra hd, 5k cameras that are pretty darn small and compact. we are able to take them wherever we want. we have recently helped develop and launch a camera called the g

ss c-500 20. we mounted to the nose of a helicopter or any vehicle that moves. it allows us to get amazing stunning shots. i think it's a really cool era as a filmmaker for us to be able to have access to these tools and have them come to us in a form some a factor, and manner we can use. cory: what is obvious is size and weight, maybe durability. in my experience with losing a go pro when i'm surfing or kite boarding -- i'm always losing go pros. it's the disposability as well. >> our main camera are the red epic cameras will stop it's really good and whether --

really good in whether -- in wea ther. we don't build in a studio we film in the outdoors. we need something that can film in the outdoors and go to these remote places we go to. cory: speak to me about that. are there environments that put a particular demand on the cameras you are using? ultra cold, when you get up really high? >> there are elements and that's why they need to be rugged and the best. for instance, we were filming with our helicopter camera system at 24,000 feet in nepal. it's cold high-altitude and when the cameras aren't on the helicopters when it is snowing or storming, we need something

that can deal with snow hammering out of the sky. all of the cameras we use have a weatherproofness to them even down to the sony action cams that we use for the point of view shots. these little guys shoot superhigh resolution. they are amazing cameras and super weatherproof. you can take this out of a rainstorm or snowstorm and get hd and better quality video from it. it is pretty amazing. that's an example of something we used to have to mount these film cameras with counterweights on the side of someone's head and this is better than those were in you can see it's ridiculously small. cory: i remember being around guys shooting snowboarding videos in the early 90's and the equipment was gnarly to try to ride with that stuff.

i wonder if the market itself has changed. who's watching this and how has it changed in the last 10 or 20 years? >> it has been a revolution across the board. youtube has been a really cool thing for the action sports world because it ultimately validated people's desire to consume this type of media. we see all kinds of stuff in all of the different action sports going viral and getting over a million views. i think people are more aware of the type of stuff we're doing. i think there is an outlet for it. when we are not doing stuff purely digitally, we find people want this on television, so we are working on various different tv series and the itunes and netflix. you no longer have to go to a specialty shop to consume one of these movies. cory: now it's time for the

bwest byte -- one number that tells us a whole lot. shelby holiday from new york joins me right now. what have you got? >> it 4.7 million -- the -- that is the decline in the number of homes watching the ncaa championship over the last decade. that is a drop. a lot of people contribute that to the one and done rule. it requires a lot of today's top players to play one year after high school and they can enter the graft will stop so, one and done. teams don't build these legendary rivalries like they did in the 80's and 90's. check out what it has done to television ratings. there was this golden era of -- i don't know if we have the chart -- a golden era of college basketball. these are peak rivalries. cory: that was like christian later at duke and north carolina. >> nuc this is the trend of the

top players going from the high school game two pro. cory: kevin durant and kobe bryant -- >> skipping college altogether. and then in 2005, the one and done rule. it had a dramatic impact on ratings. it's not just hurting television. i've talked to former nba players and basketball players last week. here's what charles barkley had to say. charles: you have greedy family members that want to get money as soon as possible. i look at the big nature. they are not physically and mentally ready to play in the nba. it hurts our game so i don't know if there's a right or wrong answer. >> a lot of people are hoping this changes in 2017. cory: thank you very much.

"bloomberg west" will be back tomorrow. ♪

mark: from bloomberg world headquarters in new york, i mark crumpton and this is "auto mind." the intersection of economics and business with a main street perspective. to our viewers here in the united states and those of you joining us from around the world, welcome. we have full coverage of the stocks and stories making headlines on this monday. shelby holiday tells us how something called one and done may affect the popularity of march madness. matt miller has details on general motors and ford