emily: live from pier 3 in san francisco, welcome to "bloomberg west," where we cover innovation, technology, and the future of business. i'm emily chang. is a check of the bloomberg top headlines. americans are feeling better about the economy. the university of michigan's consumer con that -- confidence index increased since it second highest level since 2007. wage growth is helping to strengthen confidence. earlier this week, the fed left open the possibility that it will begin raising interest rates the second half of the year as the economy continues to gain strength.

six baltimore officers have been charged in the death of freddie gray. gray died after suffering an injury from being unrestrained in a police vehicle. the maryland state attorney held a press conference earlier today. >> center ice, officer miller -- lieutenant rice, officer miller, failed to proceed up or really. accordingly, the officers illegally arrested mr. gray. cory: -- emily: gray requested medical help at least twice. new rules have an agreed-upon by the u.s. and canadian governments over safeguards required for railroad oil tank cars. new tankers must have thicker steel walls and more protection at the end of the car. existing cars and use would have to be replaced or retrofitted beginning in 2017. the agreement comes almost two years after an unattended oil

train derailed and exploded in québec, killing 47 people. alibaba has pulled a job ad after receiving criticism over the candidate requirements. the chinese internet giant was seeking potential employees who resembled a popular japanese porn actress. the job required someone who could praise code monkeys, wake them up, get them to enjoy meetings. before the horses read the gate -- leave the gates, the biggest winner is likely to be churchill downs. the race will bring in an estimated $83 million, up 6% from last year according to wells fargo securities. ticket sales have been boosted by $10,000 seats at the track mansion, that come with private chefs and a private entrance. of the 20 worst is competing in saturday's race, american

pharaoh is the favorite, five to two. now to our lead. elon musk has unveiled the battery that homes, businesses and utilities can use to store electricity. tesla's vision for batteries expanding way beyond cars. the new offering is called the power wall, a slim rechargeable lithium-ion battery with an interesting price tag. >> it is flat against the wall, it has all of the integrated safety systems with normal controls, the ac/dc converter. it is designed to work very well the solar system's right out-of-the-box. you can actually go completely off grid, take your solar panels, charge the battery pack, and that's all you use. it gives you safety security, and he gives you a complete and affordable solution. if $3500. emily: musk has a bigger

product, called the power pack, that he wants to sell to utilities and big companies. the announcement comes at a state like california and new york are turning to relieve a congested and aging grid. i'm joined by david and jeff, from the argonne national laboratory. gentlemen, thank you for joining me. just, there are home batteries out there on the market. they have yet to really take off. how is tesla's offering different? jeff: the thing we are excited about the offer he is making is drawing attention to the problem. the problem is that electricity is in on demand product. we turn knobs up and down to increased demand based on the

consumers. we need to be able to store that energy for later use. the beauty of this problem -- if we solve what is the first world problem, and it is a desire for all of us to drive teslas and for those of you who haven't driven one, i assure you, you want to. it's a wonderful car. and get electricity from the sun and the wind that's a real first world problem. we are phones the last along time. by solving this problem, we address a problem in developing countries. countries with the grid is either unstable or doesn't exist. if we can cobble inexpensive solar and batteries like tesla's offering, we can actually change lives. hundreds of millions of lives around the planet. emily: how is tesla's battery different or better than other batteries on the market? is it about the tesla brand? can they make batteries cool like it's cars? david: it's integral to the

cars. the sense i got from talking to analysts is that fundamentally the technology is not that radically different from what's out there. you are musk has been trying to perfect his batteries, make them run more efficiently. he's presenting a part that is well integrated. you could for one of these in your house connected to the solar panel on your roof and there you go. if less cobbling things together that you had to with the past. emily: how many households are using battery power were considering using battery power? jeff: it's a very small fraction. when we think of the united states, it's a small fraction, with the exception of hawaii and alaska. hawaii is an island integrated, literally, and the cost is about $.35 for kilowatt hour.

solar is penetrate about 20 percent of the individual homes in terms of implementation and batteries are required for that application. i want to just echo what david said. the cost is between $350,000 -- $350 per kilowatt hour. that is perfectly in line with most other battery offerings on the market. the question is one of integration. emily: the average household spending up to $3500 on a battery, is that really realistic? david: it may be. the goal is to get that price to come down even more. right now it will appeal to a pretty select part of the market, maybe people who live in a place where the grid is less reliable. maybe it's a place where there are more storms than others. where you were a greater risk at getting kicked off the grid through brownouts and things like that. the goal is articulated by elon

musk is to get the price of batteries down. first it was to push down the price of the cost of solar panels. now, batteries have become the focus. i think it's a hybrid and for everyone. certainly, as we talk about how this might expand into the developing world, with a price tag like this seems prohibitive at this point. but as it catches on expands, that could change. emily: what does the battery market look like a broad? germany uses a lot of solar power. jeff: there is a real open market. if we can understand micro-grids or island did grids, there is a market where there is a well-developed grid in north america or europe. but the real target for companies, if i were running a company, would be the places where the grid is either desperately in need for upgrades, with the grid doesn't exist. there is an enormous market out there. enroll rural india and sub-saharan africa and rural

china where there is just a need for electricity, a raw need for electricity. if i may go back to something david just said, although tesla's price point today seems high at $350 per kilowatt hour it was nearly five years ago where the costs were over $1000 per kilowatt hour. that means back then, it would have been over $10,000, near five years ago to put the same battery in your garage. when you look at the u.s., and california, if you are going over a certain peak load, you are paying an exorbitant extra cost for your electricity. there is a market in california today. if we can break into the market the cost will continue to drop down. emily: we will be monitoring that. jeff chamberlin of the joint center for energy storage research, thanks for joining us, as well as david gura from bloomberg television. coming up, it onto the road from linkedin. -- a bump on the road from

linkedin. and could the spell the beginning of a trend? next. ♪

emily: this is "bloomberg west," i'm emily chang. extraordinary earnings for linkedin, and the film studio at the forefront on virtual reality. those stories and more coming up this hour. a former ally of new jersey governor chris christie has pled guilty in conspiring to close lands near the george washington bridge. to punish a local new jersey mayor. the former official of the port authority of new york and new jersey made the plea deal and could face two years in prison. other former allies including the former deputy chief of staff were indicted for their roles in the event. governor christie himself is not publicly being implicated in this case. edinburgh office -- and uber in

china was rated, suspected of operating without a license and engaging in other illegal business activity. officials seized mobile phones. in january, the transportation industry band live it -- banned private cars. investors wait to see whether the cable provider will try again to buy time warner cable. charter lost out to comcast more than a year ago, but last week comcast lost its $45 billion plan to take over time warner. is linkedin in trouble? the professional networking site cut its guidance for annual revenue. revenue was up 35% in the quarter, growth slowed, losses widening to $43 million down 216% year-over-year.

news sent shares plunging. are the concerns overblown? joining me is mark, it was incredible yesterday after earnings. within an hour we saw a billion dollars wiped off linkedin's market cap. what is going on here? is this because of the guidance or real weaknesses in linkedin's business? mark: this company does a good job, this was the fifth quarter. there were some execution errors. they hired a lot of people, a huge salesforce ramp up last year. it led to ms. allocations to accounts. their slowdowns across the board. they gave an outlook that was 20% below their prior guidance. a 20% cut in guidance, your stock is taken up 20%. emily: let's talk about display advertising. twitter is reporting earlier this week they had some

advertising problems as well. we are not seeing it so much with facebook. mark: traditional displays, we do not to talk about additional display online. whether it's yahoo!, zillow yelp twitter, and twitter to some extent. what's happening is these ad dollars are going to other formats. the advantage and why we still like linkedin is a stock is they have a hedge against this. a building in sponsored update adds. traditional display is still 50% of the rad revenue. they will have to fill in the hole for a while and will drag down the growth rate. emily: what about more traditional advertising? mark: there are two areas where it's not experiment of. google, and facebook. most of the facebook ads have reached enough mass and scale with advertisers, and obviously with consumers that they are a

must buy on the internet. there only to must buys on the internet to date, that's facebook and google. emily: how much of this has to do with the acquisition? and also the strong dollar? mark: they had salesforce issues, they had this acquisition that turned to be more diluted near term than anyone had thought. that was part of the hit. emily: linkedin and twitter down 20% this week. facebook a little bit, 3% or so. are we seeing a story or a narrative of facebook and everyone else yet again? mark: i will so keep google in the next. but he think we are seeing a story of concentration of ad dollars and therefore concentration of market cap to a couple of names. twitter has not yet escaped experimental. i think linkedin will solve the problem area the advantage behind linkedin is that it's much more than advertising base. it's also recruiting place.

if there are single biggest trend in internet advertising a social mobile, the company best situated against that is facebook. emily: do you see any management differences between them in mark zuckerberg? mark: it's fair to say the best tested teams have to be facebook and linkedin. twitter has had so much turnover. it's tbd whether this is the right management team. i don't think that that all in dispute at facebook. emily: when you think? mark: tbd. want to develop is not going away the company said it would go. advertiser outreach is not going away the company said it would go. whether that's his fault or 70 also small, it's hard to say. emily: i wonder if we are getting fair -- being fair for twitter. are they just a niche product?

mark: the company has gone out of its way to say i think they can be a global platform as big as anyone else. they are tripping over their own bar that they set. emily: mark mahaney great to have you on the show. thanks for joining us. coming up, news platform circa may be playing itself up for sale just after secret announces it is closing its door. we talk about why it's so hard out there for content sharing. ♪

emily: welcome back to "bloomberg west," i'm emily chang. the news app circa maybe putting itself up for sale after failing to raise venture capital funding. this is reporting -- recording

to report for fortune. we reached out to circa, they declined to comment. this report comes immediately after the anonymous messaging app secret announced at shutting down. sarah frier joins me now in the studio. yesterday we talked about secret, today it circa. is this a trend? sara: it sounds a lot of people are reaching a limit of raging money -- raising money and deciding to let it all go. there are other entrepreneurs we have seen who have simply pivoted their companies, we saw fab do another pivot, this is people deciding to go away. emily: we have to get to baltimore, where the mayor is taking the stand after officers were charged. >> no one in our city is above

the law. justice must apply to all of us. equally. with today's official indictment, i have ordered police commissioner back to use the fullest and it his legal authority and immediately suspended all officers facing felony charges. in fact, warns have been executed and five officers -- warrants have been executed and five officers are in custody. we know that the vast majority of men and women in the baltimore city police department serve our city with pride. with courage. with honor. and with distinction. but to those of you who wish to engage in brutality, misconduct racism, and corruption, let me be clear. there is no place in the baltimore city police department for you. today's indictment is the next

step in the legal process that is running its course. as mayor, i will continue to be relentless in changing the culture of the police department to ensure that everyone in our city is treated equally under the law. there will be justice for mr. gray, there will be justice for his family. there will be justice for the people of baltimore. thank you. >> no questions?\ emily: the baltimore mayor speaking after six officers charged in the death of freddie gray. we will continue to follow this story as it is ongoing. i want to get back to sarah frier talk about what's going on in the start of landscape in san francisco. we are talking about how the new zap circa put up with for sale sign, secret and other apps also shutting down. what are investors saying about what's going on? at the same time you were seeing

refinery 29 and other companies out there -- they are still raising money. sara: you have other startups such as fusion that are very well-financed because they are part of a larger organization recode, also have a larger organization. but the self finance through venture capital, they also had to shut down. maybe it's a function of being part of a larger organization that wants to use the new organization as a sort of r&d operation. emily: i wonder if its media in particular. we've seen this explosion and content sites. maybe there is sort of a correction going on, in terms of where people are putting their attention. sarah: you are seeing facebook and twitter delve more into original content on their platforms.

maybe is the big guys moving, there's more pressure. emily: snapchat's discover feature is way down. sarah frier, thank you. we'll be back with more "bloomberg west," after the break. ♪

emily: >> welcome back to "bloomberg west." innovation, technology, and the future of business. a lack of improvement in manufacturing shows the effects of a stronger dollar and low oil prices linger on capital spending very today's report add to wreak weavings from the u.k. in china as well. chevron profits sell more than 40% in the first quarter as falling food prices to the bite out of energy earnings. just like the rival exxon, it's mashed analyst experts -- it smashed analyst expectations.

france's biggest bank was ordered to pay a nearly $9 billion fine. part of a settlement with the u.s. for violation sanctions by processing transactions involving sudan iran, and cuba. they were also ordered to serve five years of probation after a guilty plea in manhattan federal court today. apple may sell its first bonds in japanese yen, a move that would further diversify fundraising currencies after selling debt in euros and swiss francs earlier this year. apple hired goldman sachs image bg financial to arrange a series of fixed income investment calls, as the company announced it was boosting its capital return program by $70 billion through march 2017. oracle co-chief executive is positive on a salesforce force acquisition as long as some else is paying. in a q&a session at oracle headquarters, he said if it's acquired by somebody else, it's probably good for us.

it will cause a lot of distraction in the market. earlier this week, bloomberg reported that sales force is working with financial advisors to help heal takeover offers. he declined to comment on whether oracle is interested. virtual reality is going to hollywood. the our company jock announced its latest project to launch in hollywood this week. they tapped former lucasfilm cto to leave the studio, they are hoping to create a next generation of high virtual reality content for entertainment. earlier i spoke with them to hear more about the plan. >> is not the future, it's now. it's the present. even in my film career, i've have been fortunate to work on some big milestone films. from the early days of computer graphics like jurassic park to working with george lucas on pioneering digital cinema. when excited me about virtual reality is is a new media that we are going to pioneer and

really take people to new experiences. emily: talk about your vision and how this fits into the studio in general. >> we spent basically two years working on the technology to deliver the our experiences to users. so technology involves a special camera that records in 360 audio , it involves a lot of software is brazenly pipeline software that takes all of that and creates automatically the experiences that are delivered through apps. the key really now is content. it's about developing quality content that people are going to enjoy when they first get their vr devices. that's the reason we decided to launch. emily: i had my first vr experience, it was amazing. i don't know if i could do it for three hours. i was on the sitting there for five or 10 minutes. >> most of it is short form content. what people have been working on

is more about gaming are doing fully cg worlds. from we are on live-action cinematic virtual reality. we can take you to places like the top of the mountain or quartzite of a basketball game or to fashion events. we are hitting these verticals in sports, music, travel and adventure, as well as telling stories and virtual reality. we think, our goal is really to keep the consumer more engaged with experiences in vr. emily: when you say it's not the future it is now, do you think that's how ultimately we are going to be watching everything? >> i wouldn't say everything but we are going to fight for the audiences time it. so we can get people watching our experiences, our content not just in the home, but as people are commuting to work or traveling on planes moments where you have time to kill, you want to entertained. emily: talk to us about the content we will see.

what is this going to look like? grexit one of the first pieces we did was with paul mccartney, where we recorded a concert at candlestick park, we had cameras up on stage and people were able to feel like they are actually next to the piano. that was an amazing experience. since then we've done narrative pieces, we did a movie we recently did a great piece of north face where people are climbing up the moab, we put our camera on a drone so you feel you're flying over the moab with people jumping out. these are experiences that are available you can download them from the google place store. you can go to oculus share and download them for the oculus they are also available for samsung vr. the recently released our first ios iphone app. emily: you were an early investor in oculus. what is your take on facebook buying them for $2 billion? >> i was very happy with that.

it launched this vr movement that's been happening over the past year since that announcement. i'm excited about it. personally and professionally. emily: what does facebook get out of this? how were they be integrated? >> they have the next platform. a lot of the content right now is an individual immersive experience with a goal for all of us to make it more of a social experience you can share these experiences with your friends and family. emily: review is your competitors? there are so many players creating original content. what about netflix or amazon? >> there is a whole ecosystem that's being built up. they are up from the hardware that's necessary in the cameras to the software that's needed to distribute it. it's less today about competition and more about content. the idea of the studio is go out

and create. it's the creative community, the studios in hollywood. the big media companies, the brands. there are a whole bunch of creative people who want to dive into vr and they are not quite sure how to do it. that's our role, we can help them create really compelling the our experiences. emily: former president of the newly formed jaunt studio. drones of the golden gate bridge problem for officials. ♪

emily: you could use this started to make big money.

first to check in a bloomberg top headlines. devon energy receives new points. third point says yum's kfc brand can evolve by adding more chicken sandwiches. yum rose the most in the year after the disclosure. the e-commerce startup expanding into brick-and-mortar locations with its new funding. they recently raised $100 million at a $1.2 billion valuation. they already have 12 retail locations in nine u.s. cities. disney's latest avengers sequel is on track to set all kinds of box office records. age of all drawn already took in more than $27 million on thursday night showing and is projected to make $221 million through the weekend. that would give us the record for biggest opening weekend of all time beating the original

avengers movie released in 2012. the golden gate bridge draws more than 10 million tourists every year. but san francisco's greatest tourist destination isn't attracting -- is attracting a new type of visitor, drones. officials are concerned about security risks. bridge authorities calling for regulation that would allow it to cite drone operators for trespassing. the golden gate bridge is not to be confused with the bay bridge, which is right behind me. first of all, there are no laws or rules? guest: it's one of the circumstances where the technology is ahead of the rules. it's time to catch up. there are appropriate safeguards for safety and security. emily: how often is this happening? guest: last time we had won a

week. emily: there is zero rules. guest: virtually no rules. obvious or unregulated for the most part. the faa just issued some draft rules. emily: there have been potentially dangerous situations elsewhere, drone almost flew into a police helicopter, the george washington bridge in new york, have there been any close calls? guest: yes. we have areas of the bridge that are closed off to the public. we have fenton, intrusion detection, and gates. if you go back those we will arrest you for trespass and find out what your intent is. we will review your photographs and delete them. a drone is unregulated, it can go in the same space, ascertain what our security levels are, it's a huge concern. we feel they should be restricted from security sensitive areas. emily: what are you concerned

about? guest: terrorism. is a national icon, it's a symbol of the community. we spent a lot of resources on protecting it. it provides an easy way for someone to easily understand our security in more detail them i want them to. emily: one of the biggest problem with drones is that regulation move so slowly, it hasn't caught up to technology. how quickly do you expect lawmakers to respond? guest: we had a small drone crashed into the roadway of the bridge. if it hit your windshield, you would have swerved. it's a lot of different safety concerns. i was in washington dc yesterday on the day before meeting with a representative. we submit comments to the federal aviation administration. folks are waking up to this issue to allow this amazing technology to take off while at the same time protecting the public.

emily: some stadiums have anti-drone systems. is that something you could consider? guest: i'm not sure there's legal authority to interfere with or harm someone's drone. there is no concept of trespass for a drone as there is for a person. emily: recreational drug users might not even know about -- drone users might not even know about regulations. guest: manufacturers include documentation that gives common sense tips for people. ideally would be mandatory that the manufacturers disclose certain information and allow people to better understand where they are allowed. emily: what has the response been from the senator's office? guest: she is wonderful, she has drafted legislation that will address our concerns with respect to public safety and security. emily: what do you want like no drones around the bridge ever? guest: two things.

for drones that are licensed and insured and operated by folks who are knowledgeable and professional, we don't want to restrict them the same way we do a hobbyist. but an unlicensed, uninsured hobbyist should not be flying above a busy roadway. they could strike the windshield of cars. we think it's vital that hobbyists be restricted from areas that are quite busy. drone should be at a higher elevation that they don't distract motorists. we are not opposed to having a distinction. right now, the faa does not have the authority to regulate hobbyists. we think they should not be allowed in the -- above busy roadways. full does closer, we have a drone, it's a fabulous tool for emergency bridge inspection. there are parts of the bridge that are difficult to get to. full disclosure, we support the technology. we think like any technology, there needs to be appropriate regulations.

if you build their own car, you can't drive it on the street you have to have a license and insurance and the car has to be certified to be safe area drones should be similar. if you are in an empty parking lot, not yourself out. but if you were in a public space, it should be certified safe and you should have training and skills so you don't hurt other people. emily: thanks for sharing that story with us. keep us updated as you pursue that regulation. "bottom line," with mark crumpton coming up at the top of the hour. mark, what have you done for us -- what have you got porous?? mark: movie studios and fans are hoping to get their money's worth. we sort out the hits and misses as the 2015 summer box office officially gets underway. i will see what the top of the hour. emily, back to you in san francisco. emily: mark, thank you.

from a dorm room idea to $55 million in funding, it's a silicon valley dream. it's for a t-shirt startup using social media to make designers big bucks. ♪

emily: this is "bloomberg west," i'm emily chang. in just three years, a startup called t spring has become one of the top t-shirt makers in the country, printing and shipping more than 7 million t-shirts. the secret is social media advertising. the ads that target is peoples super specific interests can translate into t-shirt sales. they have raised $55 million from coastal ventures and andreessen horowitz. joining us is walker williams. you started this business in your dorm room.

teachers are popular, but this popular? >> is not just about t-shirts. our mission is to make it as easy to bring up product and market, it's a great idea. we remove these traditional obstacles -- obstacles and let users focus on great ideas. emily: you've turned multiple entrepreneurs into millionaires. people are making millions of dollars making these t-shirts. walker: last year alone, hundreds of people made millions. emily: who are these people? walker: it's online influencers bloggers, people casting on twitch. emily: who made $1 million? walker: a stay-at-home mom who developed a brand around women made $200,000 in the last year

alone. emily: what kind of t-shirts issue making? -- is she making? walker: i can't reveal her ideas, but she has great stuff around the married women in niche. what we sold for people is taking the operations and supply chain out of it. with platforms like facebook, twitter, pinterest, you can take these very long tail niche ideas in front of the exact right person, the person that is the perfect product for, very easily. five years ago, eight years ago that was impossible. t spring allows people to focus on ideas that resonate versus having the same generic rant. emily: facebook ad rates are picking up. does that impact you? walker: we are less impacted than most because products resonate strongly with the end buyer. emily: your products are so

good, you don't have to pay attention to rising ad rates? walker: instead of a surfing brand that target servers generically, it might be the palo alto surf club or when i'm not surfing am rockclimbing versus a product that just is for people that like surfing or rock climbing. it allows as to resonate more. emily: you talk about illuminating obstacles to the supply chain. how you make sure t-shirts are produced ethically? walker: we have a strong trust and safety team, we try to work with vendors that have a strong history of compliance. we built out of production facility in heparin, kentucky. the largest short run production facility in the company -- in the country. emily: you don't have teachers made in china -- t-shirts made in china? walker: we have some made in

nicaragua. but our vendors have a history of compliance. emily: walker williams of t spring, think you for joining us. time now for the bwest byte where we focus on one number that tells a whole lot. spencer covers amazon forest. spencer, it's a friday, it's a high bar for the friday byte. spencer: 300-7000 feet. that's the height reached -- three at 7000 feet. that's the height reached by the amazon launch. emily: is that good? spencer: the test was successful. partially. the key is not only getting into space, but also salvaging the equipment used to get there. jeff bezos and elon musk are

both trying to travel there. but salvage the agreements they can reuse it. they were not able to -- the equipment so they can reuse it. they were not able to salvage the repulsion agreements. emily: the same thing happened with the musk spacex launch. who is in the lead? spencer: elon musk got of the date first. time will tell. -- out of the gate first. time will tell. emily: nothing like a billionaire's war in space. spencer, thank you for joining us. thank you for watching this edition of "bloomberg west." get all the latest headlines on bloomberg.com and bloomberg radio. have a wonderful weekend. we will see you on monday. ♪

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mark: to our viewers in the united states and those around the world, welcome. let's get you to the top stories we are following on this friday may 1. a swift and stunning announcement on this friday. marilyn mosby says the death