emily: welcome to "bloomberg west," where we focus on innovation technology, and the future of business. i'm emily chang. here is a look of your bloomberg top headlines. the u.s. added 223,000 jobs in april as hiring rebounds. the unemployment rate fell to 5.4% the lowest since may, 2008. but wage growth is still stuck with an average hourly earning climbing just 0.5%. construction and health services posted some of the biggest gains in employment. conservatives have won an unexpected majority in the u.k. general election. the torys won 331 seats to 232 for labor.

here is prime minister david cameron speaking after winning another term in power. prime minister cameron: we will govern as a party of one nation one united kingdom. that means ensuring this recovery reaches all parts of our country from north to south, from east to west, and, indeed it means rebalancing our economy, building that northern powerhouse. emily: cameron has reappointed george osbourne for another term as chancellor of the exchequer. there are talks to raise about $25 billion in financing for its potential takeover of milan according to people with knowledge of the matter who say the extra cash would give temba the -- teva the ability to increase its offer. last month mylan rejected teva's $40 billion takeover attempt. a federal court says broadcasters will not have to

turn over sensitive video programming documents as part of the government's review of the at&t direct tv deal. the court ruled that the fcc did not prove that the confidential information from cbs, disney, and others was necessary to the merger review process. a.o.l. shares are rising the most in 16 months. the company reported a 7% gain in first quarter sales and turned a profit of $7 million. a.o.l. has shifted the focus to digital advertising and sales at its platforms unit which includes digital advertising growing 21%. now, to the lead. hoover is willing to spend billions to buy one of the world's largest digital mapping services. the "new york times" says uber has submitted a bid of up to $3 billion for nokia's mapping business known as here. nokia's map business has an 80% marketshare for built in car navigation services. uber's bid is competing with another one from a group of german automakers including b.m.w.,

audi, and mercedes-benz. the automakers are also teaming up with the chinese search engine on their offer. so why are all the companies bidding for nokia's maps? joining us, our bloomberg west editor at large cory johnson and with me in the studio the mapping expert, managing director of a consulting firm that helps companies integrate maps and location into their businesses. i am so glad you're here today. we are all wondering what is so special about nokia's maps. mark: it's been interesting. since they announced there's been a flurry of rumors about who might buy them. it goes to a couple things. one is the map data is reamey key here. there's just not that many companies that own map data of the world. emily: how many companies? mark: four. google owns their own. they're doing their own thing with it. nokia has here. a company in pompom in amsterdam and then an open source community called open street map. those are the only options. it's scarce and also super important. emily: all of the maps, the digital maps we see are from one

of those four companies? marc: basically. there are other regional providers and other types of maps and most of the maps you see in your car, on the internet, on your mobile phone, comes from one of those four places. emily: uber uses these maps already but why would they want to buy them? marc: a lot of people have different reasons. i think that's the interesting piece to figure out who's ahead. uber obviously is building a huge logistics business. if they can understand the map data and how people move around that better than their competitors they build competitive advantage around that and that would be the rationale for them. the rationale is different for others. that makes it interesting to watch. >> does the kind of data change? i remember looking at this when i was looking at garmin 10 years ago and it was amazing there were a lot of other companies making devices but not a lot of providers of the data. i wonder if the data, itself, is different. marc: cory, that is a really important part of this. the needs are breaking into two different groups. you have the general mobile internet guys primarily around

local search. they want maps to show where people are, find places, things like that. on the other hand the automotive guys are really trying to move beyond the navigation that you might have in your car today to really high precision navigation where they're looking at things like what lane are you on and high precision things that lead to autonomous vehicles ultimately. you have this data set being pulled in two different directions. and so you've got the automotive guys with their requirements and you have the mobile internet guys with their requirements. one way to look at this is what do you get if you buy here? the other way to look at it is what do you lose if someone in the other camp buys here? because they're unlikely to invest in the technology that you want. marc: you didn't mention apple. why not? well, apple obviously has built a huge mapping effort since they sort of stumbled a couple years ago. they built a really big team hiring a lot of guys. apple right now is built on pompom maps. they're using that and as far as the publicly announced share which is very little that's the plan. there is a lot of speculation that apple is building their own mapping data. it's a huge task. google can it.

it surprised everyone. it's a very big task. but, you know, apple certainly has the resources to do it if they want to. emily: how long does that take? if apple is coming from so far behind how many years would it take? marc: it is in years. google started oh, i think the ground truth project in about 2007, 2008. you could argue they're still building it out. it takes years. i think that becomes an issue for companies that haven't started in this to start from scratch and build your own is a long, long process. emily: talk about the specificity of the data. there is a difference in knowing what street you're on and what lane you're actually in on that street. right? marc: yeah. emily: who has that very specific data?

who is the furthest ahead there? marc: think of it as three layers. one is display maps. this might be what you see on a search thing when you're looking for something, you want to find where something is. the next level is the data that allows you to navigate which says you might be able to take a left turn here and not there. that stuff is fairly common in most of the data sets. the highest level is the thing they're calling h.d. maps, the lane guidance. and that's going to automotive navigation. really only two companies are working on that seriously. google is and nokia here. so if nokia here goes either to an automotive company they'll focus on it but if they go to say someone in the mobile internet business that may fall away as part of their focus which puts the automotive guys in a real issue. emily: why would companies want that data, what lane they're in. beyond that is there another reason? marc.

the services are more and more complex. one thing the automotive guys are looking at is the car is the last largely unconnected device out there. they see it changing dramatically in the next few years. the question is who is going to control that the better user experience will control that. i think the pressure is coming from the googles to be put on the automotive guys to win it. the lane guidance ends up giving you a more concrete experience of where you're going, and as cars start to speak to each other you get into traffic related issues. so there's a big push on that. but it's very hard to do. >> right now it's too vague to figure that out. marc: yeah. gps is one of many technologies that deal with positioning. there's a number of others including dead reckoning and even in the mobile world using sensors to position yourself but i think that part of it, of sort of understanding with precision is where you are is one of the key things. there are things happening in the u.s. gps is a u.s. system. there are other systems in europe and russia. and as those evolve they will improve the accuracy as well as combining with other sensors to get better information on the actual location.

emily: why would the german automakers want to partner with bydu other than it's a big company? marc: an interesting question. the german automakers are interested in the high definition maps part. right now they run, they are one of the major map properties in china. we miss them sometimes in china. massive map company. i think they have a strong interest. you can see it becoming a buyer in this because bydu's maps while very good are in china. some of the reports said they'll use nokia in china. i don't understand that actually. what would seem to make more sense is to get out of china into a broader worldwide market. emily: how do you expect this to play out? marc: the automotive guys have a huge amount at risk if they

don't secure some position. having said that the advantage the internet mobile companies have is they're growing so fast they can think about the company they're likely to be in two years and it might be a very much bigger company and could justify an investment the automotive guys may not be able to make. it is a tough one to call. emily: ultimately if say uber who i would think is the underdog, would you agree? marc cr. i think uber has a strong case for it. i don't know that i would put them in the leading position. emily: right. how would owning these maps change uber? does it make uber more scary? marc: it gives uber the ability to really understand how people move around in the world. one of the things we see is in the beginning maps were the data you were interested in, how to get places. now the ball haul on data. where people are going. where they're going. where they're moving. uber launched uber pool where they want to pick up multiple people on a ride.

knowing how people move around and the trends is one of the key parts of data in-laws is driven back from maps. i think that's what uber is really looking at. emily: you are the mapping guy. you are the mapping guy. i've learned so much just in the last five minutes. managing director, we'll have to see how this plays out. thanks so much for joining us. coming up, the clock is ticking for the u.s. to change over to chip and pin technology. what are the road blocks? next on "bloomberg west." ♪

emily: this is "bloomberg west." i'm emily chang. up next we take a look at plans for chip technology in the u.s. and after that talk to the 23-year-old who took on united airlines by helping people book cheaper flights. first though a check of your bloomberg top headlines. shares of bow jiang ls are popping today as the fried

chicken and ham and biscuit chain goes public. bojangles raised $140 million in the offering. it joins other chains like pot belly and shake shack in going public. the illinois supreme court has rejected the state's plan to fix its $111 billion shortfall. the court said the law which sought to cut costs of living increases and boost the retirement age violates the state's constitution. the state had argued it could enforce the law because it is in a fiscal emergency. well, october, 2015, is the fast approaching deadline for visa and mastercard to adopt e.m.v. technology otherwise known and chip and pin for retailers across the u.s. what are the potential road blocks? we have more from new york. i jutcht got -- i just got new credit cards and they had chip-and-pin technology embedded. it seems the shift is happening. >> i guess we can go shopping then. >> we can. let's do it.

will >> maybe come back next week. this is a fascinating change going on here particularly in him america right now. the vice chairman of risk and public policy joins me right now to talk about this. ellen, i think that people don't realize how big a deal this is. where all of the merchants in the u.s. now have, how does this work? they'll have liability if they don't accept this chip-and-pin technology at their sales locations? ellen: well, they are in the process right now of rolling out those chip terminals. if you look around you you'll see the little slot where you put your chip card in about one-third of the terminals in the market today. not all of them are activated. start looking for those today. merchants will be in a position to offer a much more secure payment experience to their card holders. >> why has this taken so long in the u.s.? one of our colleagues is from across the pond and says what's the matter with you americans? why has it taken so long to adopt this?

ellen: a lot of people ask that question. the answer is about a decade ago a little bit more, maybe 15 years ago, the u.s. and europe adopted different paths for controlling fraud so the u.s. has been the most advanced country in the world with predictive analytics to prevent fraud at the point of sale. you're familiar with that where your bank will call you because they note a suspicious transaction. this is a big data application doing that. meanwhile, europe decided to adopt this chip technology. what we're seeing now is the two are cop verging. -- converging. >> what's visa's role in pushing this change along? ellen: well, of course, as you mentioned we set up the structure in 2011 with an incentive that the party with the weaker technology will bear the risk of fraud. so if the issuer hasn't issued a chip card the issuing bank that sends you the card will be the one who pays for fraud. if the issuer has issued a chip card and the merchant doesn't have a term ninl then it's the merchant. we set up that structure all the way back in 2011. it's going into play in october 2015. but very importantly we're investing a lot of time and

resources into educating consumers and merchants, about how to use the card, how to implement the technology, and that's what we're kicking off for small businesses especially this month and small business month. >> this has to lead to a big boom of spending by merchants by buying new terminals. ellen: well, i suppose that's right. as i said, for a few years the terminal manufacturers have been sending out the terminals anyway. with the chip technology enabled. it's more about the back end, the message processing and the merchant environment they have to invest in now. luckily for small merchants they can get terminals that are

plug and play and available for less than a hundred dollars. >> do you think this is an advantage for visa and that visa will gain more marketshare as the change takes place? ellen: not really. the whole industry is aligned behind this initiative so our competitors, ourselves, large banks, merchants associations have formed a security task force and are moving in lock step to get this done. we all believe that security is paramount for the payment system. >> cool stuff. really interesting. ellen richie visa vice chairman of risk and public policy. thank you. we appreciate it. emily: coming up next, why did united airlines sue a 23-year-old? we take a look at some of the secrets of how airlines price their flights, next. ♪

emily: this is "bloomberg west." i'm emily chang. back in november united airlines sued a 23-year-old who started a website that helps people find cheap flights. how does it work? well, a lot of airlines use what's called a hub and spokes model for planning flights. planes lay over in regional hubs before going on to other destinations but what if your real destination is actually the lay over city? skip lagged helps people find those routes where you can hop off the plane during the lay over and you don't have to take the final flight. earlier this week united's lawsuit was dismissed but it doesn't mean their fight is over. skip lagged's founder joins us from new york with more. so you're the 23-year-old guy they sued. i imagine it's good to have united not on your back. are the legal problems over? >> as of right now, there is no lawsuit against me, but i'm cynical. we'll just have to see what happens next. i don't think it's that easy. >> so how does this strategy for

finding flights work? >> so, hidden city is where your destination is a layover for some other destination. so let's say from new york you want to get to miami t might be cheaper to book to tampa with a stopover in miami. so you just take the fillet you need and skip all the flights after. emily: now this idea isn't new. i mean, i guess it sort of makes sense. why are the airlines so against it? why are the flights more expensive to go just straight to san francisco rather than to lay over in san francisco? >> it has to do with market competition. the airline might have a strong hold on new york to san francisco whereas they might not have a stronghold on san francisco to burbank. so they can charge whatever they want for new york to san francisco and then charge that for the burbank flight and this just has to do with how the markets work. they want to maximize their profits and they're against this because this is, this is sort of a weakness to how their pricing model works. emily: the vast majority of travelers taking a look at some surveys think this is a

perfectly legitimate way to travel even though the airlines don't. i'm curious about the technology that you built. how difficult is this to do? is it something that any of us can do on our own without using skip lagged for example? >> so the way, savvy travelers if you do it before, say to get the definition to search on other websites so new york to miami for example they will try to guess, new york to tampa and search it on their website and it would be a very tedious process. but on skip lagged you just search new york to miami and in just a couple seconds you get your results. this is why airlines are against it so quick that it's now

brought to the masses really. emily: any other tricks you found to find cheaper tickets? >> yes. i also for example have noticed that it can often be cheaper to book to arbitrary one ways rather than round trips so when you search on my site i also try to combine arbitrary one ways and it tells you to book the departing and returning separated also for cheaper fares. and there are miscellaneous tricks such as not booking for groups, rather booking for individually like airlines will sometimes mark up the prices if they see that, for example, you might want to travel with family and --. emily: boy. they don't let us off easy. they let you off for now. thanks so much for joining us.

we'll check in with you in a few months and see how everything is going. we'll be right back with more of "bloomberg west."