♪ cory: live from pier 3 in san francisco, welcome to "bloomberg west," where we covered innovation, technology, and the future of business. s&p up 1.4%. it led to speculation the fed may hold off on interest-rate hikes expected at the middle of the year. a plunge in the ecb bond buying program has lifted european stocks. the german dax has closed above 12,000 for the first time.

here's ecb president mario draghi. mario draghi coley we have not proceeded far enough to put all of the questions about the euro to bed. to do so, we have to accelerate both our economic and -- convergence. cory: the ecb bond buying started last week. foreign policy talks between iran and six world powers about their nuclear program are at a critical stage. >> we are injuring crucial negotiations. there are still steps to be tackled. we hope tonight that our european side contribution can help in solving or closing or narrowing some of these steps. cory: iran's top diplomat arrived in brussels after meeting with u.s. secretary of state john kerry in switzerland.

secretary kerry says that he is hopeful a deal is possible, but he indicated that the united states will walk if it does not meet the administration demands. after more than one million people in hit the streets this week and calling for dilma rousseff's impeachment -- there have been a high gas and oil prices and massive inflation. uber said its chief financial officer brent callinocos is stepping down. no replacement has been named yet.

in the latest front in the wireless war, small business customers, sprint has announced a new bundle that will include wi-fi and internet calling. and move over tiger woods. electronic arts, ea, has chosen rory mcilroy to be the new face of its pga tour again. this would be the first edition without tiger on the cover since 1998. the first mcilroy game will be released in june. and now blackberry is reentering the tablet market hoping that the need for security will turn it into a hit. it's last tablet, the playbook, was a bomb. but they had the acquisition of secure a smart -- secereasmart last year. joining me now via skype secusmart's cto.

and 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? rohan: no, but you can do your best to build in security features from the start so it is as spy proof as possible from the start. cory: interesting. do you guys maintain that this thing is indeed spy proof? how is it more secure and how can you measure such a thing?

dr. erdmann: in fact, we do. when the goal is security and you want to get security in people's hands, it has to be visible as possible, so from that angle, it is always hard to prove, but you have certifications that are -- we are undergoing, and achieving those securities targeting something nato-grade gives us great confidence it is as spy proof as possible. cory: we keep peering about multifactor identification. what happens in terms of hiding the identity of the device. what is the secret, if you will, christoph, about how this works? christoph: we are not relying on a software device. we are relying on the security of a hardware token which is a chip.

all of the secrets are embedded and not exposed to the device at all. and we use that particular chip which is inside a micro c card. we can access that and authenticate data encryption and so forth. cory: tell me about this chip, specifically, christoph. what about this chip -- it can do real-time calculations and new personal identification keys all the time? christoph: yes, absolutely. if you can imagine -- the smartcard chip on a credit card or in your mobile phone, but much more secure them both. they are practically non-hackable. and they act like a mini-crypto computer with all of these computations in real time as needed. cory: typically the key is written once and six with the

-- sticks with the device forever. is this really a different approach? rohit: well, with the approach -- cory: i'm sorry, go ahead. rohit: there is something different. you mentioned, where it is being stored on the device and the fact that there is a physical separation makes a difference in how exploitable it is. there is a difference from your standard devices. cory: i also wonder, rohit, if the market share or lack therof makes the device more secure. why would someone go after a device that has less than half percent market share?

rohit: that's actually a very valid point. when you hear about public disclosures of security by security researchers, they are either volunteering their time or are paid to find security issues and hardware or software. what they will do is typically find their time focused on things that do have a lot of market share. from a mobile apps perspective they will spend a lot of time with your ios and android devices. it is hard to say without the same amount of scrutiny what level of security and other platform will have. cory: go ahead, christoph. christoph: blackberry is in the hands of leaders of state -- vice presidents, presidents, chancellors. these are highly important individuals and we are trying to protect their information. cory: although, we have seen the

nsa infamously hacked into angela merkel's phone and was able to understand her metadata from her phone calls. is that your first sales call? you have got to have this new tablet? christoph: she does indeed have one of our products. she is secured by blackberry. cory: christoph, it is curious to me that your software is developed in germany and that blackberry has this reputation for security going back a decade had to acquire your company to get your software. what is it about your software in germany that is better than anything blackberry has cooked up in waterloo, canada?

christoph: the reputation for my company is based on encrypting voice. blackberry has a huge pedigree in secure mobile e-mail. we fit together perfectly. we are securing voice. together we are the full package of securing the mobile data and the mobile voice. it is in a niche markets while blackberry is still addressing larger corporations. cory: finally, christoph, when you look back at what happened with the playbook, what makes this better? i know you say that you will ship 10,000. how many do you think you will sell? was playbook flawed from a security perspective? christoph: i do not think so. this is a project which secusmart had already brought in. we have this partnership with samsung long before we got acquired from blackberry. the interesting part is the partnership we have recently seen with blackberry and samsung. it fits very well into the overall strategy that blackberry has. our need for services, maintaining our own blackberry

culture, but also offering our services on other vendor platforms and i think that is the key here. we are trying to offer our service on whatever tablet you want. cory: interesting stuff. we have the chief officer and rohit. thank you very much. we appreciate it. "bloomberg west" will be right back. ♪

♪ cory: i'm cory johnson. this is "bloomberg west." these are some top headlines. robert durst has been arrested. hbo aired a documentary about him where he said he "killed them all." he was questioned, but never charged in the 1980's disappearance of his wife. german chancellor angela merkel says that they may consider's more sanctions against russia if they violate the cease-fire truce with ukraine. petro poroshenko accuse them of violating the cease-fire last night alone. and who, if anyone, can knock off the undefeated kentucky wildcats. wisconsin has the best shot according to vegas. they are only a 5.5 favorite against them. they are a 6.5 favorite against duke. they are going for their second undefeated season since bobby knight left in 2006.

sxsw. it is a conference in austin texas. it is more buzz than anything this year. but there is a highly anticipated keynote by google chairman eric schmidt. alex, our technology reporter is there for us. alex: yes, i am. cory: talking to all of the start of geeks. alex: yes, i am glad to be here. cory: how is the barbecue? they are trying to glom onto the music and the micro brews -- alex: i took a pedi-cab to teh barbecue across the street. there are a lot of microbrews, a

lot of margaritas. cory: we had margaritas on the set this morning to get ready for your appearance. it is tough to be a reporter that is so spread out. you are trying to figure out what is bubbling up while you're there. it is not like investor showing up at an investors conference. how do you approach this task of figuring out what is going on? alex: there's a lot going on in sxsw for sure. we have seen a lot of devices. we are seeing the emergence, a focus on women this year and diversity are you boil it down to themes and frankly, i have taken a lot of meetings off-campus. there are wonderful folks and from the west coast. a lot of coffees and drinks and having a good time here. but you know, eric schmidt is one of the keynotes and those will be some of the interesting things -- cory: let's start with edward snowden. last year, edward snowden spoke via satellite from russia where he is on the lam basically.

he spoke again this year. maybe the shock value was lost. it did not get that much attention. alex: this year he is hammering that idea home that the government should be staying out of our information and it is the tech companies that need to be the shield for their users. if users are going to trust somebody with their data, with their information, it is on the tech companies to maintain that data for the users. cory: in terms of the connected home -- we have been hearing about the connected home for, i don't know, the last 20 years that es. -- at ces. alex: they were talking about some of the challenges. some of the onus now falls on the home depots of the world and retailers who need to educate their salespeople to tell the consumers why these connected devices are so valuable.

and partner scott weiss, who said, connected homes, is this a normal thing or a nerd thing? kaufman came out and said it is kind of nerds, because these devices do not talk to each other yet. they have to get these devices to talk to each other and the normal consumer is not quite there yet from a technological standpoint. cory: right. there was a company called mayor -- meerkat that was getting a lot of attention. essentially this is a live video conferencing app that would map right on top of your twitter followers and twitter said yeah, not so much. you can't have it for free. alex: the ceo kind of address the yesterday and said, you know what? twitter did this. it may 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 social information. so, working anecdotally, i feel a lot of people showing what is their thing in real time. the idea is to work around this lockout from twitter's user data. cory: alex therefore is, suffering the barbecues and the margaritas of texas. thank you very much. "bloomberg west" will be right back. ♪

cory: i'm cory johnson. this is "bloomberg west." a video conferencing tool called the high 5 -- they have raised $102 million. that ain't nothing.

these ceo joins me. this is the device here. there is some start -- there is some hardware involved. guest: the way that highfive works is it allows companies to seamlessly join you with a video call. i am going to open up my ios calendar. we happen to have one of my coworkers back of the office on a video call with me. i am going to click on this link and what you're going to see it will go directly into a video call and just when it -- jess will appear. wave to everybody -- cory: she is in our office. guest: she is in the room next to us. we set her up at bloomberg. what is unique, we have this attached to an enabled television. the way that works -- it's very seamless -- if i'm in a conference room, it is awkward for us to talk to each other on the phone. this allows me to swipe and hand off the phone to the tv.

let me show you how that works. i will swipe and jess will move magically from my phone all the way to the television set and when we see jess, we will be able to use the tv to interact with her. cory: cisco is huge, they were way big into business before the webex acquisition. you have monitor makers, the traditional makers of the hardware, but the sales of the units have been falling for purely app-based stuff. guest: that is right. let me say goodbye to jess and i will answer that question. cory: goodbye. guest: companies like cisco have

largely serve the high-end of the market. fortune 500. where the money is today. and the reason why though -- those customers are the only ones that can afford the complexity and cost of the systems, which are entirely too hard to use. the thing about highfive, we have taken that technology comparable experience, comparable quality, that her functionality, and we have made it available to devices of any size in any room at one 20th of the cost. cory: and the software is the solution? guest: that's right. and software only solutions -- solutions like skype -- what is unique, today's workforce is demanding to work from anywhere. that includes working from an office. it gives people a way to put things anywhere. cory: thank you very much.

"bloomberg west" is right back. ♪

cory: you're watching "bloomberg west," we focus on innovation and technology and the future. checking top headlines. russian president vladimir putin makes his first public appearance in 11 days after intense speculation with his health and whereabouts. putin held talks with his counterpart from kyrgyzstan. here they are earlier today. translator: the president of russia is not only walking, he drives his guests around. he even drives pretty fast, so as they say in russian, don't get ahead of yourselves. translator: it would be boring without gossip, just boring.

cory: putin's longest disappearance from public view in more than two years. u.s. factory production fell in february the third state month. a signal of muted economic growth this quarter. work stoppage of west coast ports, rising u.s. dollar and bad weather in the midwest all hurting production. minnesota-based gym operator lifetime fitness is going private. p.e. firms lenard green are buying the company in a transaction valued at more than $4 billion. it's one of the biggest buyouts of the year so far. life time said in august it will explore a conversion into a real estate trust after cutting its forecast. and new c.e.o. of is madison square garden, tad smith will take over the auction house at the end of the month.

the previous c.e.o. had been under pressure from daniel lobe cut costs and increased shareholder value. last year costs soared and sotheby's said they will turn that into higher profits. w.p.p.'s c.e.o. martin sorrell stands to rake in more than $53 million, the maximum allowed under a plan approved by shareholders in 2009. that plan in place since 2013 following shareholder outcry. sorrell is already the highest-paid c.e.o. in britain. does the digital generation really care about tv news? one start-up is making a big bet it does. video new streaming app watchup enables you to watch more than 100 broadcast video news services any time, anywhere. that's what they're trying to do. today announcing their teaming up with tribune media to bring over 30 local news stations to the app. joining us is watchup's cofounder. guest: thank you for having me. cory: great to see you. this is of particular interest for those of us who wear makeup for a living.

but tv news is interesting because it's so well adapted for the tv. but we know there's great consumption of video on smaller screens. we hear more and more about it on mobile. how do you adapt tv news for mobile? guest: it's interesting, we really conceived the end design the whole watchup experience around this idea you can watch news any time, anywhere. it is a whole generation of millennia who deeply care about what's going on. in fact, 85% of them say watching news is something interesting to them. the problem is not the content. the problem is how the content is packaged and how the user experiences it. so what we have done with watchup, we have made it extremely easy to consume and watch all of this award-winning journalism from trap bands like bloomberg for instance but also cnet and now all of the local news channels from streaming media.

cory: and streaming is a big deal because it's so local and it's a big focus. i wonder, you say award winning journalism is available. but in the same way i read, that people read more than ever before but the reading buzzfeed lists. journalism too. i wonder if they might be watching more video but they're watching, i don't know gif's or people do skateboard tricks and fall on their face and stuff. what do people want to watch that's different than they watched in traditional television? guest: i think it's all about a different criteria. first of all, the length. of course, very long pieces do not work on digital. we found on watchup the ideal size is about three minutes. cory: three minutes? guest: right. in terms of topics, that's -- cory: just stick with that for a second. they like three minutes more than five. do they like three minutes more

than two? guest: it depends on the topic. of course, if it's a short segment about -- regarding the top stories of the day, just a minute probably would be enough. but if it's more like a feature report from a remote area in the world like iraq or syria, maybe they would prefer like the type of journalism like that. so it depends on the topic. but we have seen more serious topics like politics, business they resonate very well. it's fully about how you create the user experience. cory: in terms of millennials and what they want to focus on are they just as interest in local new news? the collapse of revenues in the local news market, at least in the u.s., is fairly amazing. do millennials want to watch local news and thing that's have supported the businesses by advertising from carmakers and so on? not carmakers, car dealers.

guest: right. it's all about the experience. when we're talking about traditional local tv newscasts you know, you've got a lot of talking heads. you have an experience that sometimes you even have cable tv experience. they don't really get that but they care about the content. so we give them short pieces of content that could be played one after the other. as a user you get the best of both worlds. effortless experience that live experiences provide but density those millennials are used to with products like pandora spotify. we're doing the same for news. cory: very interesting stuff. thank you very much. watchup, interest answer to a problem we think about a lot. thank you. we appreciate it. "bloomberg west" will be right back. ♪

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

spark," where we highlight innovators finding solutions for seemingly unsolvable problems. science livermore international labs kind of 40 miles over my left shoulder have come all the way to capture carbon emissions from power plants before they're released into the atmosphere. this breakthrough could have huge implications for cleaning up the environment and fighting climate change. bloomberg's sam grobart got a look at the technology in action. ♪ reporter: right now the united states energy system puts about 5 billion tons of carbon dioxide into the atmosphere every year. it's just too much. it exceeds the capacity of the earth to absorb it again and it's changing the climate of the planet. the trick is we have to try to keep from putting that carbon dioxide in the atmosphere without giving up the energy that we all love. the idea is let's try to catch the carbon dioxide before we dump it up into the atmosphere. reporter: 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's in use at a handful of power plants around the world but it's still too expensive and inefficient to make a real difference. john and his team may have found a way to change that. >> now you're going to show me the capsules. >> give it a swirl and you will agitate them up. you will see that there are a bunch of little capsules in there. and you can rest them and sort of roll them. >> it's like -- tabico on top of your sushi. >> probably don't want to eat these but yeah. trying to improve the way we absorb and capture carbon. we do that using a small microcapsule design. so the idea is that we take a fluid that will absorb co2 and we wrap it in a shell that's a polymer so you have a few

capsules in the exhaust stack and they're being contacted by the exhaust of the coal plant or whatever it is. co 2 will pass through the polymer shell and be absorbed by the liquid core. >> the co2 stays inside the capsule. >> yep. >> when we started to look at how to capture carbon dioxide, we thought what are the problems with the existing processes and what can we do to make them better? there's success from capturing carbon dioxide from power plants in industry but at the moment it's expensive. reporter: the problem with carbon capture as it exists today is takes a lot of energy which make the process works which makes it expensive. that's where the capsules come in. they make the process faster more efficient and, therefore, cheaper. >> c.e.f. process is of on about surface area and that's the trick we do with the capsules.

by forcing them to be tiny droplets, they now contact an enormous amount of surface area and absorb the gas faster. so we save energy and we save expense using this new process. >> we're going to do a little demonstration. this is just carbonated drink. so what we're going to do is pour some of this in there and adequate food and we will see them actually absorb the co2 out of the soda. when they absorb the co2, they will go through a p.h. swing and change from the dark blue to

yellow. so now -- >> now they're blue. >> they're getting lighter. >> definitely a yellow tint. so all of that is co2 is inside each tiny, tiny individual capsule? >> exactly. >> and you have flat soda too. reporter: even if every power plant in the world started using these capsules tomorrow, it still wouldn't be a complete solution to climate change. capsules aren't really practical in cars, for example, because they would add too much weight. but right now capturing carbon from fossil fuel power plants 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're producing needs to be dealt with. this is a way to try to tackle that. >> as soon as these expand, we will long enough to see these change the climate of the planet and that's really cool to think about. cory: that was this week's edition of "the spark.” our time for the check of the top headlines. not renewing jersey contract with the nba. adidas is not giving up on basketball but say they will focus on amateur leagues and developing new products. ikea does not want you playing

hide and seek in its stores. after a spirited round of the game that attracted hundreds of people to a belgian ikea last summer, company has forbidden similar events in its dutch stores citing safety reasons. organizers had gotten the word out over facebook. more than 32,000 people signed up to play hide and seek at an ikea store in the netherlands. former spice girl turned is fashion designer be victoria beckham is planning a second store for her label after opening her flagship store in london last year. beckham will open another in hong kong. she spoke to bloomberg in an exclusive interview. >> people ask why hong kong. i love it here. i love the energy. i love the women. they understand fashion. they're passionate about fashion. they understand luxury and quality. so it really does seem like the natural place for the second store. cory: you can watch the full interview on bloomberg.com. "bloomberg west" will be right back. cory: i'm cory johnson.

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cory: i'm cory johnson. this is "bloomberg west.” the tech advances in filming action sports have been amazing. but it's not go pro. it's far beyond that. a company making award winning films about extreme sports for nearly two decades. their business has taken off thanks in part to advances in equipment, video platforms like youtube and, look, march madness and then this madness. and this is madness from todd jones, cofounder of jackson hole, wyoming-based company that gives us videos that will blow your mind. >> i think one thing that's really cool is we are now shooting with the same cameras that hollywood is. there used to be a really big gap between what the equipment that we were able to use for action sports in size and weight and resolution. and so now we're shooting these ultra h.d. 5-k cameras that are -- they're pretty darn small and compact. and we're able to take them wherever we want. we have recently helped develop and launch a camera that is called the gssc-520, helicopter-mount gyro stabilized cameras that we mount to the nose of a helicopter or basically any vehicle that moves and it allows us to get amazing, stunning shots.

so i think it's a really cool era as a filmmaker for us to be able to have access to these tools and to have them come to you in a form factor and manner that we can actually use. cory: what's not obvious about what your particular needs are? what is obvious is size and weight. maybe durability. i mean in my experience of losing go pros when i'm surfing or snow boarding or kite boarding, whatever i am doing, i am losing go pros and it's disposability as well.

>> our main cameras are probably the red epic cameras. the body itself is about five pounds. and it's really, really good in weather. i think that's our main requirements are a combination of those things. because we don't film in a studio. our studio is the outdoors. so we need something that can handle the elements and that can go to these remote places that we go to. cory: speak to me about that. are there environments that put a particular demand on the cameras you're using? ultra cold when you get up really high, when you get up higher in a helicopter heli-skiing, heli-hard on the cameras. guest: there are elements and that's why they need to be rugged and the best. and, for instance, we were filming with our helicopter camera system the g.s.s. at 24,000 feet in nepal. so it's cold. it's high altitude. talk about the elements right there. we're is also out when cameras are not on helicopters, when it's snowing or storming and so we need something that can deal with snow just hammering out of the sky. so all of the cameras we use are -- have a weatherproof-ness to them.

even right down to the sony action cams that we use, that we mount on athletes for the point of view shots. like these little guys shoot super high resolution, they're amazing cameras. and it's super weather proof. this right here you can take this out in a rainstorm is snowstorm and get h.d. and better quality video from it. so it's 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. now this thing is like better than those were and you can see it's ridiculously small. cory: i remember being around guys who were shooting these snore boarding videos back in the early '90's and the equipment was pretty gnarly to try to ride with that stuff. but i wonder if the market

itself changed? who is watching these and how has that changed over the course of the last 10, 20 years? guest: yeah, for sure, it's been a revolution across the board. i think youtube was -- has been a really cool thing for the action sports world because it really 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, going over 1 million views. so i think people are more aware of the type of stuff that we're doing now. i think there's an outlet for it. when we're not doing stuff purely digitally, we are finding people want this on television so we're working on various different tv series via, via itunes and netflix. you no longer have to go into a specialty shop to download and consume one of these movies. cory: todd jones at titon gravity research.

and now the bwest byte, a number that tells us a whole lot, shelby holiday from bloomberg new york joins me now. shelby, what do you got? shelby: the b.y. spike is 4.7 million, that is the decline in the number of homes watching the ncaa championship over the past two decades. that's a drop, cory. a lot of people attribute this to the nba's one and done rule. 2005 rule basically requires a lot of today's top players to play one year after high school and then they can enter the draft. so one and done. fans are not as engaged. teams don't build these legendary rivalries like they did back in the '80's and '90's and check out what it's done to television ratings. you see this golden era of college basketball -- i don't know if we have the chart. golden era of college basketball. these are peak rivalries, best players playing three, four years. cory: christian laettner and duke and north carolina, and -- shelby: exactly of the grant hill. michigan teams. and in 1995, the trend, some of the top players going from high school game to the pros -- cory: kevin durant, kobe bryant. guys who never played. interesting.

shelby: you got it, skipping college all together. 2005, one and done rule. it had a dramatic impact on ratings and it's not just hurting television. i got to talk to a lot of former nba players and basketball legends last week. here's what charles barkley had to say -- charles barkley: well, listen, we have greedy agents. we have greedy family members who want these young kids to get to the money as soon as possible. i try to look at the big picture. they're not physically or mentally ready to play in the nba. it hurts our game. so i don't know if there's a right or wrong answer. but me personally, i would love to see kids stay in school for at least two years. shelby: there you go. a lot of people are hoping this changes in 2017. but we will see. cory: shelby, thank you very much.

the pride of the san diego teams. "bloomberg west" will be back tomorrow. ♪

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