tv Bloomberg West Bloomberg March 31, 2015 6:00pm-7:01pm EDT
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cory: welcome to bloomberg west, where we cover technology and the future of business. i am cory johnson. u.s. stocks in the first quarter, a selloff. the nasdaq and smp up for the quarter -- s&p, up for the quarter. talks over iran's nuclear program continue tomorrow in switzerland. diplomats are struggling to
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reach an outline for an agreement. here is iran's senior negotiator. >> we are concentrating on finding the best solutions which are mutually agreed to by everyone. these efforts would be continued until we have those solutions. cory: any agreement would only be the main points. lufthansa acknowledges the copilot told them six years ago he battled an episode of severe depression. he is the pilot believed to have deliberately crashed the flight into the french outbursts -- french alps. the judge overseeing radioshack's bankruptcy says he will approve of the sale to
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standard general. standard generals plan is to keep the stores open in a cobranded arrangement with sprint. charter communications buying bright house networks $10.4 billion in cash on stocks. bright house has 2.5 million cable subscribers. homemade goods site etsy has updated its ipo filing with the price. 16.7 million shares, between 14 and $16 each. they will be launching a roadshow tomorrow. it plans to go public on the nasdaq under the symbol etsy. amazon testing a new service they called -- the user can order logic detergent and coffee
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-- laundry detergent or coffee simply by pushing a button. arkansas's about to enact its so-called religious freedom law, just like the one causing controversy in indiana. the republican governor says he will sign it. indiana's governor urged the state legislature to clarify his law. opponents say it legalizes discrimination against gays and lesbians. governor prince: -- pense: after much reflection, i have come to the conclusion it would be helpful to move legislation this week that makes it clear that this law does not give businesses the right to deny
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services to anyone. cory: the major backlash from this, governors have banned nonessential employee travel to the state. i spoke with the cofounder of cloud era. it has pulled out of a data conference in indiana. here is why they were one of the first companies to speak out. mike: first of all, equality is a constitutional right. very simple, very direct. this law was a problem. we believe equal rights for all citizens, including lgbt citizens are fundamental. it is good for business and it is a morally right thing for us. there were lots of problems with the indiana law. we are happy to see the governor begin to address them.
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cory: i was struck by how quickly the tech community has jumped out against this, making a lot of loud noises. your company yelled, apple really getting out there angie's list quickly speaking out. why do you think tech companies have taken the lead? mike: mark did a great service in the tech service. this law is different from the laws in many other states. not to say those laws don't have problems. this one was especially egregious. by giving the tech community which has a lot of influence among businesses in indiana, he gave us the chance to affect the course of this law. and to lead to its revision or appeal. cory: tim cook, the biggest
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company in the world talking about all of the other states that have similar laws. have you thought what this means for the other states? will you have to decide whether those laws are acceptable? mike: it is a good question but it is not just a cloudera question. one of the services that mark and tim and the tech community provided was to focus attention on all of those other laws. there are some substantial differences. we have not read all of the statutes in detail. there is a national conversation underway about what is permissible, what is written into legislation, and what that ought to mean for businesses like ours. i look forward to continuing that conversation and finding more ways that cloudera can be supported of rights of all
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people -- supportive of rights of all people. cory: he had some interesting things to say. check this out. ask i don't believe for a minute that it was the intention of the general assembly to create a license to discriminate or the right to deny services to gays or lesbians or anyone else in the state. cory: do you believe that? mike: i will not call into question what the governor intended. i will highlight what the governor and legislation did. they wrote a law that legalized discrimination against classes that ought to be protected and that are in federal law and in other states. the state of indiana lacks those protections. if this outcry leads the state to write reasonable protections,
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we have accomplished something pretty great. cory: congratulations -- even in indiana, we saw huge protests. the indianapolis star, not known as a bastion of liberalism really powerful cover saying fix this now. taking a powerful stand on this. i wonder what this means -- i wonder if the voice of business and the almighty dollar speaks louder when businesses such as yours decide to pull business away from the state. mike: i believe most people in indiana believe in equality -- believe in equality. when we pulled out of the big data conference, we were not directly harming the governor or
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the legislature. we were taking an economic -- we had an opportunity to go and engage with prospective customers and that was costly for us. we believe it was the right thing to do. by encouraging moderate voices in indiana to speak up in support of civil rights, i think we've had some effect. in driving the dialogue in the right direction. i am pleased to hear some encouraging words out of the governor this morning and i look forward to those words turning into action. cory: i want to read what the big data group had to say. over the past 48 hours, we have received seven national sponsors back out of the conference as a direct result of the religious
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freedom restoration act. clearly, it is being felt in indiana and those voices are being heard. my: i am glad to hear that. we look forward to in -- to continuing to engage. i am glad to have the opportunity to highlight this issue and apply some pressure to address what looks to be -- apply some pressure. cory: $52 million bet on cyber security. we will show you why. ♪
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microsoft is at it again, a new tablet is skinny lighter. it runs a full version of windows. $500, preorders start today. what if the target executives got hacked and were able to identify the card reader hackers that were used? a secured a company allows companies to track every server connected to the network. the company raised $52 million led by andreessen horowitz today. stephen joins us now. i cover this stuff like crazy.
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i have a hard time figuring out the difference between these companies. what is so unique about tanium? steve: the instant response across the network. how many devices are connected to the internet across your house? cory: a couple dozen. stephen: you do not know the number. how fast can you figure out which ones are connected, what they are running? that is what we let you do in 15 seconds. a million different cash registers, pcs, laptops. to figure out what is going on on all of them and 15 seconds. cory: all of the information, all of those ip addresses the lights above us rip controlled.
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steven: 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, those tools were all about a database. by the time you are done, it is out of date. tanium brinks management -- brings management and systems data. cory: does it work the same way as spiders were used? programs would playing the different parts of the internet and collect information. steven: the way the tools used to work, they would ask all computers all at once what is going on and wait for all of them to answer. it would take a lot of special databasest. anium says, look to the guide to
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the left and to the guy on the right. cory: it is like a buddy system. what -- the types of hacks are changing dramatically. the state-sponsored hacks. steven: the most interesting thing about the breaches or infiltrations, they often involve what looks like legitimate use of something going on. they involve a combination of programs and networking. cory: we have seen a lot of cases where someone gets into the network and stays there for months. steven: sometimes they have legitimate credentials and a plant the program over here and it talks to a program over here which starts to collect information. tanium lets you have this
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complete view of information. which machines are sending a packet over the network. all instantly. when you understand a breach is going on, you are often given a pattern. look for these three programs on these different machines. you have no way of knowing. cory: i do not understand -- if some of these hacks are slow why does instantaneous detection matter? steven: the breaches are using known infiltrations, but in certain arrangements around the company, and they take time. you cannot figure out they are going on. once you figure out something is happening, you need to shut it down instantly. these breaches are -- i just got a memo from one of the security
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companies telling me to look for these things on my network. the problem is there is no way to do that. these memos pileup. they are just in the inbox of every security professional and they take days to go through each one. with tanium, it takes seconds to go through each one. most of the time, you cannot predict what is going on and you have to react and respond. cory: now i understand. thank you very much. a little knowledge is a dangerous thing. silicon valley, it is it still the at place for tech companies? ♪
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cory: i am cory johnson. we know tech companies that raise billions of dollars in funding, you can see it in the san francisco skyline. the demand for office space is changing the nature of the city. everywhere you look in this city. here is a look at tech's real estate boom. san francisco knows a thing or two about boomtown's. taking commercial real estate to new heights. 2.1 million square feet will lead the market this year alone. 6 million expected by 2019. uber dropbox, airbnb all
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looking to expand. fueled by hundreds of millions in funding. these new companies are breaking with tradition choosing the urban campus over urban -- suburban silicon valley. the trend has driven up competition for space. >> we certainly, one of the fastest transactions we have ever done. the demand we are seeing is absolutely breathtaking. cory: it is not just that building. salesforce is set to lease half of a 61 story tower across the street. the tech boom has san francisco real estate prices climbing. san francisco office rents could
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surpass those of new york city. with all this space coming on market at the same time, some analysts are growing cautious. >> some concern only because it is the one market in the united states where there really is a significant amount of new office construction happening. cory: many developers are unfazed. >> this technology is in every business now. when you talk about tech, it is a broader category of companies. cory: tech giants are not just looking for a building, they are creating campuses. uber, 400,000 square feet of space yet to be built. an attorneywe will talk about jay-z's
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just because i'm away from my desk doesn't mean i'm not working. comcast business understands that. their wifi isn't just fast near the router. it's fast in the break room. fast in the conference room. fast in tom's office. fast in other tom's office. fast in the foyer [pronounced foy-yer] or is it foyer [pronounced foy-yay]? fast in the hallway.
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i feel like i've been here before. switch now and get the fastest wifi everywhere. comcast business. built for business. cory: you are watching bloomberg west. i am cory johnson. turkey has been hit with an extensive power outage, the biggest in 15 years. the cause being investigated, officials not ruling out the possibility that it was a cyber attack. in greece, the primus to her is asking opposition lawmakers to put an end to austerity -- the prime minister is asking opposition lawmakers to put an end to austerity measures. >> we want a new agreement for
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development, a new agreement that must have the necessary restructuring of the debt. no country can safely come out to the markets. this is the sour truth. cory: greece submitted a 15 page list of supposed reforms. comcast created a new investment company. they will put $4 billion into the fund. he is investing $40 million of his own money into the fund. hewlett-packard is suing autonomy cofounder and former cfo for $5.1 billion. the suit filed in london. executives gave an overly optimistic view of the company's
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health before the acquisition. apple pay encountering some hurdles. a survey says two thirds of users report problems using the service at the checkout counter. the average apple pay user may 2 .6 and store transactions in the first four months. the aftermath of the verdict of the ellen pao kleiner perkins trial, the conversation about discrimination has only grown stronger. lynne hermle is a legendary defense attorney. i got her key takeaways from the trial and what the tech community can learn. lynee: great to be back in my
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office. great for kleiner perkins to prevail on everything. cory: the jurors were stunned when they saw all of the cameras. lynne: just a tidal wave of reporters, overwhelming. occasionally, people would tweets on my -- would tweets or e-mail me. cory: what made this case unusual? lynne: cases don't change industries, not what they are about. this case was the right issue at the right time, wrong case wrong forum. a very hot issue in silicon valley and people feel passionately about it. the media coverage made
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everything different. you could hear comments in the audience. the jurors were distracted by the clacking of the keyboards. cameras in your faces. cory: did that help you? lynne: it is a distraction you have to look beyond. you are always worried, what is the press reporting and if the jurors are reading it? this jury seem to be very careful about following the judge's admonitions. cory: i heard you were very aware of what the jury is doing all moments in the courtroom. lynne: you have to watch the jury and you have to see if they are having a bad reaction to you. i would not say i am staring at them all the time. it is important for trial law your to read how you are coming across. cory: do you believe there is a
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culture of sexual discrimination in silicon valley? lynne: i do not see it. certainly not in the client i worked with. i hear that all the time about big law. i am a senior woman partner in a big law firm. part of my job to find out. cory: it sounds like you are saying it is not there. lynn: i do not think it is there. cory: the narrative has been quite the opposite. lynne: the numbers are quite bad. cory: 6% of venture capitalists are women. kleiner perkins was proud to boast they have 20%. why isn't it 50-50?
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lynne: it is not 50-50 because there are not women in the pipeline. venture firms have been shrinking in the past years. there are not women entrepreneurs. there are not women in science and tech. cory: lynne hermle kleiner perkins defense attorney. jay-z takes on spotify musicians backing his efforts. an interesting story when "bloomberg west" continues. ♪
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cory: this is bloomberg west. jay-z's music streaming model why this one is different than all the others. federal agents arrested for stealing bitcoins. italy's -- the world's biggest online luxury goods retailer. yoox founder will be the ceo. aston martin is exploring partnership prospects to develop an electric car. >> tesla has done a stunning job. cory: palmer went on to say that aston martin is not partnering
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with tesla. another example of march madness, final four tickets fans wanting to see kentucky finishing an undefeated season. the average price $1900. 25% higher than the previous record set last year. the worlds most successful musicians have unveiled a title. they want to challenge spotify, pandora, and the like. tidal does not offer anything for free. it is designed to get more money to the musicians who make the tunes. usher: the ability to have a sense of control is what tidal offers.
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joining me is the ceo -- is this deal significantly different from royalties? >> it is most important to the songwriters who write the music. a large group of very famous artists talked about the service. this is about the songwriters who write the songs. they may not be famous. this is a service that will compensate the more fairly than other services like pandora. we are thrilled about this announcement. david: it sounds like there is still room for growth. this is a congested sector, but it is not saturated by any means. we have heard complaints, most famously from taylor swift.
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it has come to the floor from many musicians. we do not know a lot about the revenue sharing agreement. cory: david, let me ask you about that. you bring up a complicated and. the music industry pays more to the songwriters than the performers. the songwriters have cleaned up in the past, but that shifted with digital. is that the big difference? the songwriters will be the beneficiaries? david i: the songwriters are struggling in this new digital economy. they get a small fraction.
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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, it makes a big difference whether it is a free service or a service like this service that asks consumers to pay a fair price per month. it makes a huge difference to songwriters. pandora itself is keeping more than 10 times what they pay the songwriters. for me, it is about the songwriters and them being paid fairly. cory: pandora complains they have to pay so much more than competitors or radio or last.fm. david i: pandora complains, but
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they pay songwriters 4% of what they earn. they are doing everything in their power to pay less. a service that is owned by artists, that cares about artists, is a positive sign for songwriters. cory: does this create a bifurcated market? david g.: in the past, the pressure has been to reduce the price of subscriptions. most of these services have a fremium model. it is yet to be seen whether people out of the gate will be willing to spend per month.
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something they are pushing for is the fact that if you play the premium, you will be able to listen to music that is not compressed. right now, folks i talked to that is a niche market. maybe people will be willing to try that out. we have to see if that will catch on. cory: you mentioned taylor swift. taylor swift, garth brooks really big artists who have made a lot of dough. they were absent from the announcement yesterday. david g.: jason laldean was there. we have seen tremendous growth in streaming. we are at this inflection point.
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streaming revenues are way up. the market for downloads going down. we are not at the point where an artist like taylor swift can say, i will go with one service alone. in order to make money, you want to be on his many services as possible. -- on as many services as possible. cory: where is this road leading? you mentioned pandora critically. radio stations are paying even less. david i.: the old model is he would play your music on radio. the radio itself is the model and of songwriters are not paid fairly, they cannot make a living. it is more than just about money for taylor swift and garth brooks. taylor swift believes her music
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has value and she did not want it offered on a free tier. spotify was not willing to accommodate that wish. the thing about this that i am so encouraged by is what they are saying to consumers, music has value. you ought to be paying for it. you pay for things like bottled water. why wouldn't you pay for music? you without a loss of a high percentage of americans songwriters who cannot earn a living. if you are a songwriter that does not tour you are not able to get any of that income. services have got to have a price point so you can make a living if you are a songwriter. cory: interesting stuff.
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i think it sets the stage that this technology is here to stay. cory: one of the federal agents a dea agent and a secret service agent. secret sources -- secret service and dea working on this silk road case. creates some fake account and siphoned off $800,000 worth of bitcoin. before they -- tell me what happened. >> you basically nailed it. a classic case of greed. we have a unique story on this case. bridges showed up at our coo's home in the morning about six
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weeks ago in regards to a quarter million dollars of bitcoin we ordered and got stuck in customs. he showed up with two other agents at 7:00 in the morning. asking a bunch of questions. we could not figure out why. i asked a lot of companies further follow-up questions. now it is starting to dot on a sit maybe he was trying to rob us, too. cory: bridges is the 32-year-old secret service agent charged in this case as well. you guys were in the midst of this. >> nothing to do with the complaint. he showed up late february. it got stuck in customs and ended up in a standard investigation. he ended up on the case and
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showed up at our coo's door and asked questions well beyond what would be standard for a customs release. started looking at our folio companies and asking them -- folio companies and asking them questions. it really made us think. what is he after got go is he looking for the smallest thing -- what is the after? is he looking for the smallest thing to try to blackmail us? cory: charles, please keep us informed. these two guys charged with stealing bitcoin while they are supposed to be investigating and prosecuting a bitcoin theft. you can get the latest headlines all the time. more bloomberg west tomorrow.
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>> from our studios in new york city, this is "charlie rose." charlie: the syrian civil war has been going on for four years. in march, 2011, protests against president bashar al-assad have been met with violence. jordan, lebanon, and turkey have almost 4 million refugees in their countries. the conflict also led to the rise of isis.
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