corey: live from pier three in san francisco, welcome to "bloomberg west." i am cory johnson. talks over iran passes nuclear program mixed in the deadline according to officials. it would only be on broad strokes. the foreign has returned to the talks. >> one can never be sure with anything 100%, nobody makes mistakes too high or gets advantages at the last moment

instead of trying to somehow find equilibrium in talk spirit i believe the process are rather good. cory: if an agreement is reached, they have until june 30 to reach a more comprehensive agreement. a federal probe in the bank asset management. thousands of pages of the internal documents whether the investments benefited the bank. the index rose more than three points from february with the job market. home prices are gaining the index of prices in 20 u.s. cities. 4.6% in the 12 months since january. -- through january. consolidation in the cable industry. a majority stake in the network

and $.4 billion stock deals. 73% stake in the company's. charter targeted after losing out to comcast. ibm spawned a partnership with the weather company. the company will build data analysis marketed to retail, insurance, companies to help them participate in bad weather. >> this differentiates both of us in terms of being data to the decision. it speaks to a completely different scale, this is global scale for the whole economy the private and public sector. it is a game changer in a fundamental way. cory: they will have the right

to resell the data collected in the partnership. looking to boost sales after 11 straight reports. technology companies like apple and salesforce, indiana governor mike pence will say he will fix the freedom law which denies -- which allows people to deny services to people especially legalizing discrimination against gay people. >> after much reflection and in consultation with leadership of the general summary, i have come to the conclusion it would be helpful to move legislation this week to make it clear this law does not give services to anyone. cory: joining us right now via skype is the cofounder, pulled

out of a big indiana data conference. or governor pence is proposing, is it -- is that enough to visit indiana? >> we forward to reviewing the terms of the changes in the law. we like to see exactly what the legislature attend. cory: what is it that you very quickly moved out? on that basis, not just on this basis, but we believe equal rights for all citizens including lgbt citizens are fundamental. it is the morally right thing

for us to stand up for that class of citizens as for others. we are happy to see the governor stand up for some of them. we are happy to see more. cory: all of us have been struck by how quickly the tech community in particular has jumped out. your company, yelp, apple, really getting out there. the company really quickly speaking out about this paired why do you think tech companies have taken the lead? ? did a great service focusing attention on this law. this law is different from the laws in many other states. that is not to say those laws do not have problems, but this one was especially egregious. by focusing attention and by giving the tech community which sways a lot of revenue and has a lot of influence among

businesses in indiana, he gave us the chance to affect the course of the law. and to lead to its revision and repeal. cory: mark certainly did that. tim cook, the biggest tech company in the world, talking about all the other states that have similar laws. have you guys gone through and thought about what this means for the other states? have you put yourself in a position where you would have to speak out or decide where you do business in those 21 other states that have similar laws? >> it is a good question. one of the services that mark and him and the tech community provided here was to focus attention on all of those other laws. there are substantial differences. we have not read all of the statutes in detail. there is a conversation underway and what that would mean for

businesses like ours. i look forward to continuing the conversation after being supportive of the rights of all people. cory: interesting things to say. check this out. quite i don't believe for a minute it was the attention -- it certainly was not my intent. cory: do you believe that, that it was not his intent? mike: i will not call into question what he has intended. i will highlight what the governor and legislation did. he wrote a law that legalized discrimination against classes

federal law, and in other states. the state of indiana lacked those protections. if this alkaline -- if this outcry -- i think lee, which something pretty great. cory: before we congratulate ourselves for the tech community the, a newspaper in indiana, not known as a bastion of liberalism, really powerful full cover, saying fix this now taking a really powerful stance on this. i wonder what it means his editorials can do what editorials do, but i wonder if it is the voice of business and the almighty dollar speaks louder when businesses such as yours decide to pull businesses away from the state. mike: i believe most people in

indiana believe in equality and what civil rights to be enforced for everyone. when we pulled out we were not directly harming the legislature. we were taking an economic toll on business leaders who may well not share the opinions of the legislature of the administration and we had an opportunity to engage with a bunch of prospective customers and others. we believe it is the right thing to do. by encouraging moderate voices in indiana to speak up in support of civil rights, i think we have had some effect as a broad community in driving the dialogue in the right direction. really pleased to hear encouraging words this morning and i really look forward to those words attorney into action

making a difference. cory: i want to read what the data group had to say about that. this law is having an immediate and definitive definite negative impact on technology in the state of indiana. clearly, it is being felt in indiana and the voices are being heard. mike: i'm glad to hear that. we look forward to continuing to engage around the world and i'm glad to have the opportunity to highlight the issue and apply pressure to address what looks to be -- cory: cofounder and chief strategy officer. we appreciate your time. thank you. up next a $52 million bet on cyber security. we will show you why. ♪

cory: still to come they look at how tech is changing the san francisco skylines pier first, a check of bloomberg top headlines . the current president johnson seceded the race today. jonathan's peoples of the democratic party since they relinquished power. harman international line the automotive business or audio business pair the price is $156 million, nearly 2 million in licensing fees. exclusive rights to the play stereo technology.

microsoft is at it again. it is lighter than the last surface pro three, and runs a full version of windows. some of the earlier services ran across. preorders start today. what have the target executives who have been hacked able to identify about hackers used? titanium allows companies to track every server, even atm's connected to the network. companies raised $52 million. a board partner joins me right now.

i have a hard time figuring out the differences. >> most people say, one, two different devices in the house p or but you do not know the number. imagine you are a global company and you have 500,000 homes what they are running, what versions of everything in 15 seconds. a million different cash registers, cerberus, machines laptops, max figure out what is going on on all of them in 15 seconds. cory: this has been a focus of your firm. all that information, all of ip addresses my house is an example the lights above us.

>> in the world of security what matters the most is getting the most up-to-date instant information. it is not a data solution. it is a communications solution. in the old world of systems management, those tools were all about database. they were walking through your house, and by the time you are done it is all out of date. it brings a combination of systems management and security to one problem with 15 second answers. cory: first used to do web searches, before google, they would go out and paying different parts of the internet, collect information. is that what titanium does? >> the best way to think about it, they would ask all at once what is going on, and wait for them to answer. it would take a lot of special hardware and databases. look to the guy at the right and

left find out what is going on there, and then we will send it all back. it is like a buddy system. cory: we're seeing state-sponsored hacks like that north korea. >> the breaches and infiltrations today, they often involved legitimate usage of things going on, a combination of programs and networking. cory: unpack that a little bit. we have seen a lot of cases. >> sometimes, they have legitimate credentials. over here, a program over here it starts to collect information. what titanium must you do is it

lets you have a complete view of information of what is going on in your network and how, which machines are sending over the network, but all instantly. when you do understand a breaches going on, you are often given a pattern. look for these machines, look for this traffic, but you have no way of knowing at all. cory: i do not understand why if some of the attacks are slow why the instantaneous taxing matter -- texting matters. >> the breach -- the breaches are using known patterns and they do take time. once you do figure out something is happening, you need to shut it down instantly. that is where the instantaneous response really comes in. these breaches come he learn

about how, i just got a memo telling me to look for these things on my network. the problem today is there is no way to do that here in the memo style up. they are literally in the impacts of every security official. it takes days for each one. you can rifle through them quickly. existing tools are all about trying to be predictive. those play a role. most of the time, you cannot predict what is going on in the network and you just have to react. cory: i actually know something about security. thank you stephen, we appreciate it. a cool story. silicon valley, is it still the place? maybe not. in the city of san francisco, the story is next. you can watch on amazon fire tv. a lot of options. ♪

cory: i am cory johnson and this is bloomberg west. we know tech companies have raised billions of dollars in funding. you can see it in the san francisco skyline. demand for the office space has changed the nature of this city. springing into action building high-rise. everywhere you look in the city, here is a look at the tech real estate boom. san francisco knows a thing or two about some of the fastest-growing companies in the world, all of -- all looking for office space here. taking commercial real estate to new heights. it will hit the market this year alone. another 6 million 2016.

airbnb looking to expand, spurred by a growing workforce and hundreds of millions in funding. these new companies are breaking with tradition, choosing an urban campus, suburban valley. driven up competition for states. a deal to move the 460,000 square foot holding later this year. it took three days to negotiate the 17 year lease. that is a record. >> it is certain to one of the fastest transactions we have ever done. the demand we are seeing from non-tech companies is absolutely breathtaking. cory: it is not just that building. the serif -- salesforce released right across the street. the tech boom also has san francisco real estate prices climbing.

they could surpass those of new york city. of all of the space coming on market at the same time some analysts are growing more cautious. >> i think there is concern only because one market in the united states where there is a significant amount of new office construction happening. cory: many like kilroy are unfazed. >> the technology is in every business now. you talk about tech, it is a much broader category of companies than it has ever been. cory: they are not just looking for a florida building. they are creating campuses campuses under construction overpasses headquarter will be 200 billion campuses over 1000 square feet of space yet to be built. up next, a big victory.

she will tell her side of the story for a short time. modify and federal agents busted in an amazing bitcoin incredible story coming up next. ♪

cory: you are watching bloomberg west. i am cory johnson. let's check the top headlines. turkey, and extensive out -- the biggest in three years. stretching to the border of grace. officials not ruling on the possibility that it was a cyber attack. in greece, the prime minister is asking opposition lawmakers to put an end to austerity measures. any deal on the greek ale out must include a restructuring of the country's debt.

>> we want a new agreement for development come a new agreement that must have the necessary restructuring of the debt, because no country, when it has a debt of 180% of gdp could safely come out of the markets. this is the truth. cory: greece submitted a 15 pace -- page list. comcast trading new investment company and comcast will put in $400 million into the fund. leaving 40 million of his own money into that fund. the new company will focus on investments in growth business. hewlett-packard escalating its legal battle over a failed provision. they are suing the cfo for $5.1 billion to file in london.

an overly optimistic view of the company's financial health before the acquisition. $140 million for making false and negative statements. apple pay is encountering hurdles, served by marketing international, s two thirds of market pay users report problems at the checkout counter. more than half found a system was not working. the average apple pay user made 2.6 in-store transactions in the system in the first quarter months of its existence. the aftermath of the verdict of the trial, the conversation about its in silicon valley has only grown stronger. they spoke with a defense attorney in the case a legendary defense attorney with over 30 years experience defending technology companies. key takeaways in the trial and what if anything the tech community could learn. check it out.

>> it is fantastic, great to be done in great to be back in my office. cory: the jurors said they were stunned and walked out when they saw all the cameras there. classic was overwhelming. a title wave of reporters. occasionally, people would post tweets on my facebook page or e-mail me. i followed a few people but did not have a sense of the whole scope of it until the end. cory: what made the case unusual? it had an unusual amount of coverage area it had an unusual impact in silicon valley. >> it will not happen. it is not what they were about or what they do. this case was the right issue at the wrong time. rate case, wrong forum. people feel passionately about it. media coverage made everything different.

you could feel it. you can hear comments in the audience. jurors were distracted by the clacking of the keyboard. you come out and have cameras in your faces. it was a very different experience. it did not help. it is a distraction you have to look beyond. keep your eyes on the prize and that is what we did. you are always worried what the press is reporting as the jurors are reading it. this jury seemed to be careful about following the judges admonitions. cory: one of the things i heard about you is you are very aware of what the jury is doing. >> you have to watch the jury to see if they are having a bad reaction to you. that is important. it is just important for a trial lawyer to try to read how you

are coming across and how they are reacting to you. cory: do you believe there is a culture of sexual discrimination and silicon valley? >> i do not see it. it is certainly not in the clients i work with. i'm not sure they would hire me if they were up it you could be cynical and say, that is why they hired me, but i do not see it. i hear it all the time about the glory and i am a senior woman's partner in a big law firm and i do not see that either. part of the job is to find out if it is not there. maybe that prejudices me in a way. i do not believe it is there. cory: you are right the narrative has been the opposite. >> f really care the numbers are bad. that has to change. the numbers increase, the change. cory: 6% of venture capitalists are women, down 10%. 20% of investors are women.

i talked to lawyers saying, why is this not 50-50? >> because there are not women in the pipeline. a professor, an expert in the trial, testified that venture firms have been shrinking in the past 10 years. they made it number one in the nation. there are not women entrepreneurs or women in size and tech, unless the culture of stitches that -- fixes that, the numbers will not change. cory: the defense attorney in that well watched trial. coming up, jay-z takes on spotify. a big story and an interesting one when we continue. ♪

cory: still to come, jay-z's music streaming model. plus, the plot thickens in the investigation. federal agents, bitcoin. first up, the world's's biggest online luxury retailer, valued at $775 million. the owner a 10% stake in the company. the founder will be the ceo and founder and natalie will be the chairman. ? and -- ashton martin. >> they have done a stunning job and laid down the road for us. from our point of view luxurious.

he went on to say they are not partnering with tesla. cory: another example, the final four in indianapolis. fans wanting to see kentucky finish an undefeated season are bidding up prices. the average retail sale for tickets $1900, a record and 25% higher than the previous record set last year. a group of the world's's most successful musicians have unveiled an artist owned music streaming platform to they want to challenge spotify, pandora and the like. jay-z, madonna, usher, nicki minaj, what a list. it is designed to give more moneys -- more money to this is -- and the musicians who made the tunes. jay-z: what title cory:.

joining me now, bloomberg's david. let me start with you. does this deal significant lead differ -- is it significantly different? >> it is used on yesterday, a large group of the very famous artists talked about this service. what it is really about is the songwriters for sauce. this is a service that will compensate them more fairly than other services like and/or that really do everything in their power to not pay songwriters at all. we are thrilled about the announcement. david: i've spoken to analysts and it sounds like there is still room for growth. it is not one saturated by any means. we have heard the complaints

most famously by taylor swift a few months ago saying she was not making enough off of these plays. it is something that is an issue for a lot of musicians. the musicians who make a whole lot of money. i guess it is, how much will this affect musicians online? we do not know much about the revenue sharing agreement. cory: david, you bring up a comp ok'd point but historically -- a complicated point,. songwriters have cleaned up in the past but that shifted a little bit with digital. is that the big difference here? that the songwriters and bmi will be the beneficiaries here and not so much the performance of the tunes? requested is the songwriters who are struggling in the digital music economy.

a very small fraction of the money generated from these digital services, and most importantly they are regulated by the government, where they cannot say no. they have no choices. if you are a songwriter that gets a very small percent of the revenue generated, it makes a big difference whether it is a free service that only has advertising money, worth it is a service like this service that asks consumers to pay a fair price per month. it makes a huge difference to songwriters. if you take a service like pandora, pandora itself is keeping more than 10 times what they pay the songwriters and what recording artists and record labels get is also 10 times more than a songwriter. it is for me more about the songwriters and then getting paid fairly for what makes these types of things possible. cory: pandora has complained they have to pay so much more than competitors in radio or competitors who have a radio tie and like the last.fm project.

>> yes, they complain, and yet they pay the songwriters 4% of what they earned. the founder made more for himself than every songwriter combined got paid. they're doing everything in their power to file lawsuits or running to congress or even trying to buy small fm stations to even pay less. a service owned by artists who cares about artists, it is a very positive sign for songwriters. cory: does this start to create a bifurcated market here where they have a lot more sort death services on one side and a lot cheaper services that tie into one radio? classic could. if you look at the economics of streaming music, the effort has been to reduce streaming subscriptions to most have a premium model you could use the service for free if you do not want to listen to advertisements. if you want the ability to control what you're listening to, you can pay to do that. it is yet to be seen if they

will pay $25 90 nine cents per month to pay higher version of the title, something they're really pushing for, the fact that if you pay that premium, you will be able to listen to lossless music, music that is not compressed not mp3 quality but closer to what you get on cd. that is a really niche market. what they are banking on is maybe as artists talk about how their music is supposed to sound, people may be willing to try that out but again, you have to see if that would catch on. cory: we have a situation where you mentioned taylor swift. really big artists who presumably made a lot of money over the years. they were absence from the announcement. question is and was there at the event yesterday. they tried to show a broad swath of people. something analysts told me, we have seen tremendous growth in streaming we're at a point where

if you look at the market for streaming revenues, they are way up from last year. the market for downloads is going down. what this analyst told me yesterday is we are not at the point where an artist like taylor swift could say, i will go with one catalog alone, one service alone. in order to make money, in order to make a significant amount of money, you want to be honest many services as possible to you can take a stand but this is not something still were you could pick one road and go down alone. cory: where is the road leading? you mentioned pandora but not with a radio stations are doing. where did you think this leads? >> the old model was that you would play your music on the radio, in hopes you would be promoting the songs. that is no longer the model. the radio itself is the model. you talk about taylor swift and garth brooks. the truth is it is more than just about money for them. the reason tells swift holds her

music is because she believes her music has value here and spot if i was not willing to accommodate her wish. what is great about a service like this, and i do not know whether the highest sound will be a wire -- wider lee accepted thing, but the thing i am encouraged by is what they are saying to consumers is that music has value and you ought to be paying for it to you pay for things like bottled water. why not music? if you only have things going for free, you will not have songwriters being able to make a living. you have had a loss of high percentages of songwriters who could not earn a living. the average american spans $125 per year on music but $100 of that is live shows. if you are a songwriter that does not tour, you are not able to get any of that income which is why services like this have got to have a price point which makes it so you can have a living if you are a songwriter who has songs people want to

hear. cory: interesting. bloomberg's david, thank you very much. "bottom line" coming up at the top of the hour. mark: an agreement on nuclear deal with iran. the deadline could be extended of progress is being made. that report is from the white house. the home price index showed an increase of 4.6% in january but home prices are rising faster than wages. what does it mean for would-be homebuyers? david stevens, the president and ceo of the mortgage bankers association will join me. i will see what a few minutes. back to you in san francisco. cory: the job a continues in the shutdown of the silk road as two former federal agents involved in shutting it down are not charged with money laundering

and fraud and stealing bitcoin an amazing story next. ♪

cory: this is "bloomberg west." i am cory johnson. the bwest byte is where we focus on one number that tells us a whole lot. the block chain technology consumer solution ceo charles allen via skype. what is the bite? >> two is the number of federal agents arrested for wire fraud and money laundering cory: in a case. -- laundering in a case. cory: they have not been convicted yet, i've heard a lot over the years and very few like this. it is cops and robbers stuff or cops as rogers, -- as robbers, i should say. classes interesting. it is a testament that this is

not for a licit use. everything is trackable and not even federal agents can get away with money laundering. i think it sets the stage that this technology is really here to stay. cory: let's export the accusations. a pali, one of the federal agents and a secret service agent the secret service in this country also charged it initially started to fight counterfeiting in the country. the dea working on this case. apparently, create some faith accounts and siphon off it hundred thousand dollars worth of bitcoin, move it from silk road before they subpoena, what happened there? >> you basically nailed it. it is a classic case of greed. we have a unique kind of story on this case and that sean bridges showed up at our ceo's's

home at 7:00 in the morning six weeks ago in regards to a quarter million dollars of the bitcoin mining harbor we had ordered and got stuck in customs. he showed up with two other agents at 7:00 in the morning when the ceo was asking a bunch of questions. we could not figure out why and then they asked a lot of companies we had invested in further follow-up questions. it is now starting to dawn on us that maybe he was trying to rob us as well. cory: sean bridges is the 32 euros secret service agent charged in this case as well. he showed up and you guys were in the midst of this, and they are continuing on. that is not part of the complaint. twice it has nothing to do with the complaint. he showed up in late february. in our opinion, the number-one manufacturers, they got stuck in customs and ended up in a

standard investigation. he somehow ended up on the case and showed up at our ceo's's door, asked questions that seemed well beyond what would be standard for a customs release, and then we started looking at portfolio companies we had invest it in, asking them questions. we were squeaky clean. answered all the questions. i do not think there was anything for them there, but it made us think, what is he after? is he looking for the smallest thing to try to blackmail us? i do not know. it will be interesting to see how the whole thing unfolds. cory: please keep us informed with what is going on. it is out of a movie. charged with stealing bitcoins while they aren't charged with prosecuting bitcoin theft. thank you. we appreciate it. the latest headlines all the time on your phone and tablet. more bloomberg west is tomorrow.

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mark: from bloomberg world headquarters in new york, i am mark crumpton. this is "bottom line" the intersection of business and economics with a main street perspective. to our viewers here in the united states, and to those of you joining us from around the world, welcome. we have full coverage of the stocks and the stories making headlines on this tuesday. bloomberg's chief washington correspondent peter cook is at the white house with more on a congressional challenge to