cory: welcome to "bloomberg west". i'm cory johnson. here's a check of your bloomberg top headlines. william dudley says the timing of interest rate hike will be data dependent and it is still uncertain. here is dudley speaking today in new jersey. william: for financial marks after liftoff just as important as the timing to the liftoff. the past is relatively shallow. headwinds in the aftermath of the financial crisis are still in evidence particularly the diminished availability and the tougher terms that we see for

residential mortgage credit. cory: he says recent headwinds like this one in march jobs report are likely temporary. new data shows the biggest part of the u.s. economy is holding out service industries grew in march at the same pace as february. real estate firms, rental companies and management support firms are among the industries reporting the strongest growth last month. president obama spent the weekend defending the framework agreement over iran's nuclear program. he said the accord does not mean the u.s. will forfeit its military superiority or fail to protect israel. here is the president speaking speeg with "the new york times." president obama: i want to make the kinds of commitments that would give everybody in the neighborhood including iran clarity that if israel were to

be attacked by any state that we would stand by them. cory: meanwhile, iran news agencies says the eye tolla had full knowledge of the deal some criticize it saying iran gave up too much. turkey's trying to block assess to twitter and youtube after the sites refused to comply with the court's decision ordering them to remove pictures of a prosecutor being held in a hostage situation. facebook has complied with the order but says it still objects to the ruling. turkey has been tightening internet control according to politicians allegedly engaging in corruption were posted online. the area -- "furious 7" proving to be a huge hit at the box office. the biggest opening weekend ever for an april movie. it's just a boost to the franchise. it's driving shares of imax to a 52-week high. about 10% of the film's sales

were imax theaters setting an imax record for april as well. all right. now to the lead. there's an easter egg from tesla has the stocks zooming today. when the markets were closed, tesla in preannouncing first quarter delivery numbers. they delivered 10,030 electric cars which exceeded the forecast by 530 units and muck says going forward, tesla -- there's an effort to thwart what tesla calls an inaccurate number. but unlike other car makers tesla will not release monthly figures or will it tell us where the cars were being sold. the announcement helped to boost the stock pricing on musk's personal wealth of over $400 million. what does it tell us about tesla 's business?

joining us is ashley from skype. i can't wait to see that. ashley the changing delivery of metrics seems to be a play out of the elon musk textbook. is this something that as we've seen in his past that the way numbers come out will continue to change? ashley: well, he always tries surprise people with these numbers and they're trying to set up a more consistent way to deliver these numbers and they've been under a lot of pressure to be a little bit like the rest of the industry. and so, it seems like they're going to stick with this going forward but elon likes to talk about these things at surprising times. cory: and other car makers released monthly numbers. these are some strong numbers from tesla. it's the most cars they've ever

sold in a single quarter. what do you make of these shipment numbers for the model s? james: first of all, thanks for having me and good afternoon. they're above our expectations. we were looking for 9,000 units for the quarter but more importantly, it says up well, the conversation around demand. and it's hard to poke holes right now, if you will, into the demand season because they continue to scale quarter in and quarter out. so we focus more on the supply side. the obstacles near term are going to be more evidenced in their production ramping. we saw some obstacles rear themselves in the fourth quarter which led to a miss. it seems us to that this delivery number is an indication, maybe a soft indication that production continues to scale relatively steadily. cory: james, do you think that used cars were included in this number? james: i do not. cory: ok. james: i do not believe they will add those in at this point. cory: so used cars are just a

mystery number. we know they're selling them at their dealers. james: you have an option. if you want to go to a tesla showroom and wait for the presumably six week to nine week model s wait period or there are some relatively new -- i should say demo or the equivalent would be a demonstrator version at a traditional dealership you may have an opportunity to purchase those. i do not believe those are being captured. they would have been captured initially as sales to the dealership level is my guess. ashley competent you mentioned the growth numbers. the growth number is down 2% except for the negative quarter that they have. it's the slowest growth that they've ever seen. what does that tell you? james: tells me that they're on track from a production standpoint. they're looking to ramp from just under 1,000 units per week on the assembly line leaving

2014 to running at a 2,000 a week rate by the end of this year. i think the problem they had in the fourth quarter was in part driven by a little bit of an overreach that they were over 1,000 units per week during the quarter. there were some west coast shipment issues as well. they had to fly in parts that was a bigger drag on gross margins. to see them fall back to a more steady ramp bodes well for not only to the production and the delivery ramp this year but from a gross margin perspective our outlook. cory: ashley, let me ask you about that overreach. klein really strikes me that they've sold more cars than norway despite elon's focus on china, visits to china. reaching out to china. how does this fit within the character that elon's shown us over the years in the way he's run other businesses? ashley: there's no question.

elon sets progressive timelines for things. he sets aggressive projections for things. in my book we talk about he's conscious of this and knows that when space net started, they thought they were going to start nothing to two years but it ended taking them eight. elon says that was a mistake and he's trying to rein himself in over time. in china, with tesla tesla thought that margin would be a lot stronger. elon is definitely a celebrity of sorts in tesla so i thought the interest would be there. it hasn't even been closmse on the other hand, you see this quarter come through with the numbers it has. and so they're making up for a lot of demand that we expected to come from overseas. cory: james, you mentioned production issues and that's such an important issue with this company. he's going to note about some friends of his who ordered cars

or told that the cars wouldn't be available until the end of april already shipping to the end of march. that tells me that the backlog isn't what it used to be and that they don't need to expand production because they've already got cars. have inventory gone from $300 million of finished goods. doesn't that tell us there isn't much of a backlog? james: it might tell me that i need to find new friends. and i don't know that i have the same priority check that he does. at the end of the day, i think we're embarking on pretty unprecedented transition here. number one, every other mauerer in the world is un-sizing and tesla is on the up scale. when it comes to expectation and elon pepper waiting these lofty expectations. they haven't j.v.'d with anybody in china and he's the impediment that they've ran into.

but look i think the model x is coming. there's going to be some consumer that remain at bay as a result of that. and i do think that the streamlining of production is making for a shorter and shorter delivery times and that may be something that's evidencing itself in my -- sounds like my competitor's analysis. cory: all right, thank you, gentlemen. rush to the bookstores. wait outdoors. coming up, we're going to talk about a company that turned 5 years old five new products. interesting future. and we will talk about amazon ebay as well when "bloomberg west" continues.

cory: i'm cory johnson. this is "bloomberg west." xiaomi celebrates five years in five new products. sling tv drops the ball during march madness.

you get it? drops the ball. march madness. this is about basketball. first, check of your bloomberg top headlines. the i.p.o. showing -- accused high speed traders by rigging the market. that was a 9% increase over 2013. and toshiba looking at accounting irregularities. the ship maker and electronics company says it may have underreported the costs of some projects. and i-robot wants to sell robot lawn mowers. it is asking the f.c.c. to sell them. i-robot is running into fierce

competition with as reason to merz. they are asking for the f.c.c. to block it saying i will interfere with telescopes. chinese smartphone maker turns 5 years old, xiaomi. it's number one after overtaking samsung. to celebrate the anniversary, it is launching a scale, a smart power strip, a smart tv, a smart home but not smartphones. is that the strategy for their global domination? joining us from beijing an early xiaomi investor. what is up? i thought they made phones. what about the phones? hans: cory, you know xiaomi is never about being a phone company. it's all about lifestyle.

and i think emerge markets as well. you've seen a wave of new products coming out in the smartphone market will be users. cory: interesting that they would do this. i guess, again, this is selling hardware too. i thought that's what xiaomi have said is we're going to sell hardware with no margins. we will make it up by selling services and softwares later on. is that is portal to more software and service sales? hans: that's exactly right. it is interesting for the smart using who wants to have a better lifestyle and once you have more -- of the users through a variety of ganls, you can offer them more services on top of the. respect when are we going to so see these services? hans: on the phone, you're already seeing that. it becomes the gateway. there are apps that can be integrated and you will see that

over time in the smartphone services as well. cory: i'm wondering about the services that will be xiaomi specific. a lot of the apps in the store are the same kind of apps that can be on a.c.c. phones and any android phones and their ability to customize android isn't clear to me. what are we seeing in china first before we can talk about the rest of the world? hans: if you have a xiaomi phone and during the contact list, there's a different tab that allows you to call anybody you want for services whether it's a bank, a grocery store, whether it's utilitys and so fort. and all these numbers are integrated well with the xiaomi contact and it offer new numbers that will be of helpful to you. it's just one click away. that kind of interesting innovation is what they're experimenting with different kinds of services.

cory: so you're an early xiaomi investor. they've done quite well in asia. but i wonder -- i heard the expectations for india, while they expect nine million phones this year, that is a fraction of what other phone makers expect to add in india. their plans for the u.s. as well. i wonder about the true scale global scalability of this model. what do you think their biggest competitive threat is internationally? hans: internationally, they're a young company as you know. and predominantly being in china. so learning how to be more of a global operation so much their goal for india would be more modest but based on the feedback i've gotten from friends from india, people love the composition of xiaomi. it is a first-tier product. so i think they're being cautious but they will be doing better than what they're projecting. and certainly, that has been

true for china as well. cory: all right, hans thank you for joining us from beijing. early xiaomi investor and early in beijing as well. we proosh it. amazon fighting ebay and it's been fighting ebay for decades. now, maybe it's working. we'll have that next as "bloomberg west" continues ♪

cory: i'm cory johnson. this is "bloomberg west." third-party sellers are key to ebay's business and now they're become more important to amazon as well. amazon added one million sellers last year. ebay added none. amazon's pool of merchant is two million compared to ebay's five million but is ebay in trouble here?

david spitz is here and joining us right now. tell me about what we're seeing where amazon doubles its users but they're still a fraction of what ebay is doing. david: so ebay has been around a long time as you know. we see consumers moving more towards the convenience that amazon offers. so both ebay and amazon offer a lot of selection on a lot of value but convenience is the name of the game online. and we see amazon pulling away from ebay on the convenience category especially on logistics and speed of delivery. cory: you say that but then why does amazon have, you know, two million compared to ebay's 25 million if the logistics are so difficult on ebay? david: ebay is an open platform and anybody can sell whereas amazon you have to be an approved seller. it's the bar to become an amazon

seller is higher and they do that to ensure last quality of service and delivery that consumers experience on a platform. cory: this has been a long -running battle going back probably to at least 1995 1996 from the early days when amazon recognizes that ebay was a competitive threat. and indeed, that's probably why ebay bought paypal in the first place because they're afraid that amazon would scoop it up. why has the dynamics changed? david: in e-commerce it's about selection, value and speed of product delivery. and back in 2005-2006 when amazon started offering prime, that really became the gold standard in terms of what consumers expect, in terms of getting products in two days reliability and without additional costs. and amazon has invested considerable amounts of capital in building out their

distribution zphirs they're unrivaled in terms of their deliberation capacity today. this has -- is why program has become a popular program. it is somewhere in the order of 40 million prime subscribers today and that becomes the default mechanism for people to do their shopping. they know they'll get the package in two days. and they started ending their shopping process on amazon for that reason. cory: if i were selling on amazon, i would be worried that once i got successful, amazon would just take over my category and start taking on my own. that's not a concern that ebay merchants have. does that start to get real when businesses have scale? david: it's a legitimate concern and it has happened to sellers from time to time. the flip side is that's where the consumers are shopping. so, if you don't sell on amazon you can certainly make that decision but you're giving up a

substantial number of potential consumers. cory: yeah, and we've seen certain retailers and brad stone's wonderful book "the everything store" the talked about the knife maker and they steadfastly refused. but amazon was consistently or sales of the knives showed up on amazon, even some that they were concerned weren't the real deal might even been counterfeit. david: that's a concern. a lot of brands have thought twice about selling on amazon but more often than not, their products are already been sold on amazon. it's a potential gray market and as a brand or manufacturer, when that happens you don't have control over the consumer experience or even the product. it may not even be a legitimate product. we see a consistent shift where a lot of manufacturers are embracing markets particularly amazon for that reason. cory: david spitz, thank you very much. we appreciate you joining us.

coming up web tv, sling tv. it's all in the air, just like the ncaa is. we'll talk about that next on "bloomberg west." ♪

♪ cory: this is bloomberg "west." the world financial greg gard are holding less foreign-currency river -- reserves than they haven't quite a while. 11.6 trillion monthly record of 12 trillion last year. the job may be overstated due to the strengthening market. a significant shift from 2004-2014. interbank intrigue -- in current -- increased by fivefold. japan in talks to hire as many as 200 employees from the royal bank of auckland.

part of the 3 billion-dollar acquisition of the loan portfolio would have been trying to expand global operations due to declining japanese population and your record low interest rates at home. saudi arabia's oil minister says mobile demand for oil improving and lower prices boost usage. this comes as they raised prices from a sales to asia. -- may sales. indianapolis mayor greg ballard says it will take here's for the city to overcome the damage from indiana's religious freedom law. this was amended to protect gays and lesbians from discrimination after outcry from the business immunity. here is the mayor on what future events may still come to indy. >> going into the future all of the people have sponsors and board of directors they have to report to and make the decisions. will we take a hit on this gecko

absolutely. it will take years of branding for people to once again understand who indianapolis is. cory: he said the backlash was much larger than what he or any politician anticipated. the men's final four was this weekend. the last two national semi final games and 41.7 million viewers 24% up from last year. wisconsin against then undefeated kentucky was the most viewed final four semifinal game in 19 years. in my opinion, one of the best. more than 6 million people tried to watch the event online stream. but for those trying to watch the final four they saw an error message that left many frustrated. viewers reached out and said despite the best planning, we

syrians and unprecedented combination of new customer sign-ups and higher level of viewership. those factors stressed our system. they went on to say while the viewing experience was spot on for the majority of customers, they were able to rebalance for those who are affected and improve the experience for the remainder of the evening. roger lynch started by talking about hbo to the lineup. >> first of all, huge selection of movies from some of the largest duty of. some of the best original content out there like game of thrones and silicon valley which will both be premiering april 12. effect cory: talk about the demographic overload. hbo one of the most expensive

costs for the crown jewel. what is the overlap between hbo and espn. go? >> clearly different content but i am not sure alexander for audience. the demographic of sports movies and the original production. we think they are quite complementary for this demographic. cory: what are the demographics? what are the sweet spots for sling tv? >> we think about three categories. they tend to be younger people gecko second quarter cutter. they tend to be younger people. the final are what we call supplementary. these are people who have paid tv and subscribe to sling on top of the paid tv subscription. cory: is that what you expect?

more cord cutters, the line -- the millenial to have never really had coverage? >> we think it is a mix. the number of millenial getting out and getting their first home has been increasing for a number of years. that is one reason we have seen paid tv contribution declined. when they get the first apartment they are not picking a tv like the generation before them. that is a big opportunity for us. we know the cord cutting has been happening for four or five years. the number increases four or five years. cory: i wonder if we will see a day when the cable companies are really a provider of internet best but not the providers of content because we have so many other options. who knows what we will have down the line. >> we saw that china started 20 years ago with the launch of

satellite tv. it was the first over-the-top service. the first competition for paid tv. ever since the launch, you have seen a decline in cable tv subscriptions. so as more and more competition evolved for people to consume content, i think you continue to see the shift. cable companies are very well-positioned with broadband. as things shift from traditional paid to over-the-top and streaming, cable companies are going to benefit from it. cory: yet you have companies the comcast chief among them making enormous investments and content. whether it is the universal acquisition or continuing to offer video-on-demand. this that company stand out as the one exception to the trend of the industry? >> i think they do stand out principally because of scale.

even stand alone. certainly if they were able to complete the merger, it would be unprecedented gale in broadband. then, owning one of the largest movie studios and a significant number of pay-tv channels gives them scale across many different areas of the pay-tv sector. cory: should they be allowed to complete that yakuza is a scale others would a monopoly. >> i am in the others camp about monopoly. it is unprecedented. if the merger would be completed, they would have had in the country and something like 65% of the homes. too much scale for any one company. especially a company that has ambitions and video when we know consumers want to come in more and more over the top. we do oppose that merger. cory: you do not think there is

realistic competition in terms of broadband gecko of the way the numbers are counted, comcast looks bigger than it is but there are competing technologies. >> i think the fcc has largely relies a need to reclassify it were reclassify broadband as 25 bits or higher. below that multiple cds and house. -- multiple tvs in the house. you need more bandwidth. today's broadband minimum is 25 megabits. five years from now it will be much higher. a definition 25 megabits they are dominant. that is the thing that concerns many of us in cory: bmw fastest

car. the challenges when we continue. ♪

cory: this is bloomberg "west." i'm cory johnson. celebrating the 30th birthday. bloomberg top headlines. . iss has top works. they are both battling for seats on the casino giants board. they are advising shareholders to reject the bid to seek reelection to the board. also advising to reject the nominee, saying the company has had manifest failures of governance. read ventas buying an affiliate. $1.75 billion in cash.

planning to his and off most of the skill nursing and rehab facility into an independent reit. deborah cafaro called this the deal we have been waiting for. columbia journalism review says rolling stones magazine fail to follow basic practices on the reporting of the alleged gang rape. the review calls the story of journalistic failure. the magazine retracted the article that said no one will be fired. the fraternity is planning legal action against the magazine. is it possible to eliminate auto accidents and make the roads 100% cash for gecko that is the dream of the self driving car from those like google working on the technology. this would be a segment of the spark, innovators working on seemingly unsolvable problems. sam grobart visited a plant that

does this such thing. >> no one likes to think about it but the truth is every time you get behind the wheel of a car you are risking your life. no matter how cautiously you drive you can end up becoming a statistic, more than one million people who die in car related deaths globally each year. but you know, you have a life to live in places to go so you take the risk again and again. it turns out one automaker is working on a new kind of car. one that could help reduce that risk to the rope. -- 20. i have come to munich to visit bmw. pure as the research and innovation center, the companies developing technology that could do something very simple but also very important, prevent a car from crashing into anything. >> what happens when the car

starts to close in on a stationary object? >> it waits for you until you get too close, until you have a certain threshold and then it starts breaking and preventing the collision. ok, so i should just start driving toward that? iamb am going to floor it. it just stops. i have to do that again. >> the way the car works, it has really precise scanners that perceive where the obstacles are and how big they are. it builds up the map and then estimates the movement. as soon as we get too close, it

breaks for you in a comfortable way if it can. it slams on the brakes if the situation is critical. if therefore prevents collision. before we test the car in the real world, we stimulate whether the algorithms work the way they were intended to. as you can see, the car slowed automatically down, and there are avoided the collision really well. the ultimate goal is to prevent any collision that what happened. how far we get with that will depend how many people will use the technology. when we have 100% of the cars equipped with collision avoidance, there is a good chance we can almost prevent any kind of act event. so as you can see here, we set up an obstacle worse. >> we have seen how the car performs when it approaches from the front. the system is monitoring the

site comes the back of the car and every which way around it. at first i will drive like i know what i am doing. this way i were to be a little bit too close. it could really mess up my paint job. >> this system is still just a prototype and does not always work perfectly, but it is the beginning of something. as computers in sensors in cars become smarter and more precise they end up doing more of the driving well p do less and less. some years from now that could mean car strife themselves. in the near term safety systems will make up for the human flaws that get us in trouble on the road in the first place. talking about systems that never hesitate, never get distracted and see in all direction. the crash proof car is not quite here yet but it is coming. cory: sam grobart.

coming up bottom line mark crumpton at the top of the hour. "money clip."mark: now the real work begins. the technical aspects of the deal with iran still have to be tech -- laid out. what it -- what would it mean for the oil and gas industry. great bell year will give us analysis. a day after the cup and cardinals officially open the two thousand 15 major-league's fall season, the rest of the league fees action. run derby will help us get ready for baseball. -- ron darling. cory: we love us some ron darling. from honolulu.

great guest. you are looking to get him. thank you very much. coming up, the first commercial communications satellite launched fit years ago today. -- 50 years ago today. ♪

cory: i am cory johnson. the satellite businesses booming. tech companies launching satellites to focus on internet access. tv companies launching satellites to focus on tv. launching by satellites to focus on us. an entire business did 50 years ago today when the first commercial communications satellite was launched called earlybird. six degrees above the equator. opening up communication between europe and north america. he joins us now. happy 50th anniversary. what was the satellite like and

-- what was it like gecko >> earlybird was only two feet by two and a half feet inside. 70 pounds total. it carried about 240 phone channels from circuits. one television channel. that was it. if you can pair that today over six times in math. probably about the size of half a football field when you stretch it out, and it is capable of 100 gigabytes or more in terms of capabilities. dramatic capability in satellite communications but it did begin 50 years ago today. cory: the right question might be, what is similar gecko why is this build relevant to the punch cards you use to program the thing and the computer tape and calculations made with pencils got that but what is the same

about communication satellites work with the first one 50 years ago and satellite today? >> the concept of having a satellite on a fixed location across the globe is something that has really driven an entire industry. now that there are hundreds of satellite in that order -- orbit touching a wide range that you touched upon in the beginning, the basic architecture is still value and -- valued and vibrant into the future. what is changing is the power and capability. much more capable today than they were at that point in time serving a wide range of applications. government services and mobility. so while the basic concept is the same in terms of the orbit, the capabilities are expanding dramatically through innovation on the satellite themselves and round technology.

cory: what are the biggest rivers for 2014, and how have they changed gecko >> it is really driven by localization the global economy, huge demand for broadband conductivity around the world. remote parts of the world, as well as mobile platforms. moving vehicles, different types. whenever customers need high for arming bandwidth and high performance conductivity whether on the move or remote or disadvantaged places, this is where our business comes to the floor. it really is what drives our business. cory: stephen spengler, really cool stuff. thank you very much. the bwest byte where we focus on one number that tells us a whole lot, >> more than 30 million.

cory: more than 30 million is not a number. it is the range. 30 million what you don't? >> the number of viewers that view snapchat life. it is around the same number who watch the award ceremonies, the olympics opening ceremony. it is a big number. in conjunction, snapchat has been able to charge very high rate for advertising. they have a new discover product. they have become serious advertiser, maybe serious revenue. >> they are able to charge double what hulu and others can. cory: thank you very much.

that is a good bite. back tomorrow. ♪ hope to see them. ♪

mark: from bloomberg world headquarters in new york, i'm mark crumpton. this is "out of line," the intersection of business and economics with a main street -- this is "bottom line" the intersection of business and economics with a means street perspective. to our viewers in the united eighth and those joining us from around the world, welcome. we have full coverage of the stock and stories taking headlines on this monday. scarlet fu takes us off the charts and a look at insider selling head of earnings. and peter cook has the latest