tv Bloomberg West Bloomberg September 22, 2015 11:30pm-12:01am EDT
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♪ emily: volkswagen plunges. software at the heart of the scandal. what it means for apple, tesla, and a future of smarter cars. i am emily chang and this is bloomberg, coming up, the new iphone six goes on sale this friday. the verdict is you should buy one, but not for the reason that you might think. plus, speaking of new software, microsoft gets its first upgrade in three years. how the company is hoping to change the way that we work. plus the chinese president lands in seattle.
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we will have other top u.s. business leaders live. all of that is next on bloomberg west. first to our lead, volkswagen is at the center of an omission rigging scandal that is developing by the hour. regulators from germany, france, south korea and italy all are now vowing to join united states in scrutinizing the w diesel fuel cars. the result could be billions of dollars worth of signs. -- of fines. at the heart of the issue is mal program software. is this a cautionary tale about smarter cars, tech savvy cars in which reports that apple is making advances in its own card -- own card development, how is the role of tech and auto industry changing. we have someone with us from new york. and bob o'donnell of another place. david, this volkswagen story is just my line. what is your take away from this. is this a cautionary tale about
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more and more technology in our cars? >> is a cautionary tale about corporate dangers at one of the highest levels that we have ever seen. i think it is a scandal of the greatest proportions. i think the consequences are going to be far greater than a few billion dollars in fines. i'm certain the ceo is going to lose his job. it will not surprise me if the company goes under as a result. i'm not kidding. this is rhythmically inappropriate behavior. i do not think that the company has acknowledged how bad it is. in terms of the software piece. it is fascinating that we are now moving into a world that is called the internet of things where software is going to be in every thing. now we have an example of the world's largest automaker using the software that they install in their thing, their car to deliberately break the law. i think that is a terrible precedent as we are moving into a new world of software to define everything. i find it just plain terrifying. emily: david think that volkswagen can go out of business at the result of this.
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it is such a big brand, bob, what do you think the real applications are here? >> the notion that they are using software to intentionally go around the rules and break the law, that is a problem. this is fundamentally a concern that we have as a move into the internet of things. we are moving into this world where there is so much connectedness coming. when you have problems with one system and then there are other problems with another system, then you try to marry those two together. i think we're going to see a lot of this over nager -- over eagerness and in iot start to pull back. i think connected cars, smart cars are exciting and interesting. there will be big challenges, especially if apple wants to try to do something like 2019. >> apple is getting dragged into this right now. there are reports that apple is making advances in its own card -- car development. david, should we be worried
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about not just apple, but other carmakers and more problems like this in the future? >> all this have to make a decision on who do we trust. the trust toward volkswagen has has been, again, horrifically broken. if you talk to anyone who owns one of the cars involved, everyone i've talked to and i talked to quite a few people because i have a lot of environmentally responsible friends, they are all want to have volkswagen purchase back their car. they do not want to take it and have it repaired. they have been driving it for years. now we are told, no, you have been admitting -- emitting 40 times more of this polluting gas than you thought. that is awful. in terms of apple, i don't get really have anything to say about apple anymore than it has anything to say about any other automaker i think apple actually has tremendous trust from its users. shocking amount sometimes. the degree to which people are obsessed with that company. i think if they were to build a
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car people would presume. people hold them to a higher standard, but historically, apple has enabled to live up to that higher standard, and i think they would with a car as well. bob, what you make of this report that apple is tripling the number of people that are working on this car project, why don't they just by tesla? >> they want to provide a way to provide apple innovation. look at the car industry. there are a lot of players and a lot of opportunity. apple believes they can bring a unique set of values to this. my question is, yes, there's a lot of tech, but there's a lot of mechanics in cars, and apple has no history of doing the mechanical piece, the engine, drive train, all those other elements. to me, that is the fundamental question. apple has a tremendous brand and they will work hard to achieve the kind of trust with the car that they want, but they see
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this as part of that ever-involving -- evolving world of devices. emily: really, it's hard not to be excited about this. >> it's hard not to be excited. i think apple has fundamental advantages. if you look at the reviews of the iphone success -- one of the problems that people complain about is that they have is to -- have us tango sucked into the echo system and we can't get out. maybe apple can integrate the technology because they control so much of our technology. that is something that tesla does not have access to. if apple did build a car, it would be as tied into all of our other apple devices as the iphone, and that would be a fundamental advantage.
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emily: speaking of iphone, we will give you our review of the iphone 6. thank you so much. great to have you. staying with apple, the official reviews are out today. while it does not look much different, a lot has changed on the inside. bloomberg's sam grobart gives us his take. >> this is the new apple iphone. should you buy when? yeah, probably. i still think the iphone is the best smartphone you can buy. android phones have made tremendous improvements, and apple has had missteps, but the way apple can develop the hardware and software together makes for the best user experience. these new models are typical of the two-your product cycle.
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nothing looks terribly different on the outside, but a lot has changed inside. let's start with the display. apple has added another dimension to multitouch. basically, if you press harder than normal, you can pull up shortcuts for different mobile apps, like right click on your mouse. first, 3-d touch does take getting used to. push the wrong way, and you get all your mobile apps to move around the screen. right now, things are limited about what you can do with 3-d touch. right now, things are little bit limited. it is better that i can preview a mail message or jump to a new note, but other uses are more questionable. who exactly needs a shortcut to call up a private browsing page? fortunately, they are allowing your party developers to use the technology, so we may see more clever applications in the future. the other big change has to do with the camera.
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the rear-facing camera is 12 pixels. it can also shoot ultrahigh resolution four k video. it also has a function called "live photo." it captures the moments before and after the shutter has been released. one thing about all of these new improvements they do take up , more room on your phone. if you are in the store walk , past that 16-gigabyte model and get one with more storage. the front facing camera cannot take better selfies think to a display that can act like a flash. the flash matches the ambient color of the room,'s you don't look like a zombie. what makes them the best smartphones are the fundamentals. the new a-nine processor is fast, as is the touch id. there is a raft of improvements banks to ios nine, activate battery-saving car mode, maps, and find things faster thanks to
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improved search and siri. new features are what usually get the headlines it is the , behind-scenes upgrades that matter. thanks to blindingly fast hardware and well-designed software these new iphones sort , of fade away and let you focus on what you are doing. the best thing about the new iphones aren't all the new things that grab your attention, it is all the stuff in the background that you never notice. emily: coming up, microsoft just released a new version of office, the first update in three years. we will show you the latest features. plus, the winner of google's science fair, nasa enthusiasts, and budding inventor. that is next. ♪
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emily: to a story we are watching, groupon announced it will cut 1100 jobs in a massive restructuring. the company will be shutting down operations in seven countries worldwide. groupon was once the leader in the market, but has since struggled to boost sales. in a blog post, the ceo says they need to focus energy and dollars on fewer countries. you may remember my failed attempt to get an interview with
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the ceo after the company went public. concerns were already mounting around their business model. since then, the stock is fallen 79%. microsoft office, more than 1.2 billion people use office, and it is microsoft's biggest product. how important is this upgrade? how does it fit into the vision for microsoft's future. joining me is microsoft's executive vice president. so great to have you here. what exactly is new? >> we focus on collaboration and teamwork. we have made it easier for
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people to work inside a document together, one-click sharing, within word, excel, powerpoint. we've also made it easier for people to work together, have shared conversations, shared challenges, outside of a document. collaboration throughout the entire suite is a big focus for us. emily: google docs has been around for a while. the user interface in microsoft office has not changed much. i wonder how much you balance in catering to your loyal users and getting new people on board. >> it is a great point. for us, the familiarity of office is a great strength, and to bring new ways of collaborating into the office inside of outlook and excel -- they don't have to learn a different way of working.
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from that perspective, and can become familiar right away, and yet, they are working in new, interesting ways. we have also made the office applications available on the iphone and android devices to reach customers that might not be office users today. we are thrilled that 150 million people have downloaded the applications for ios and android, giving us new customers to introduce to office. emily: there are 20 different office products. there are a lot of products out there. office 365, cloud-based subscription, the mobile app. what should i buy? >> we think office 365 is what most people will buy. emily: it's what you want people to buy? >> absolutely. it is the club subscription for microsoft office. it gives you the applications for your entire family and across all devices. if you have office 365, you can put it on all your devices, and
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we introduce new features every month, so no longer will it be three years before you get something new. if you have the subscription, you get those features automatically. you don't have to install it. you don't have to manage it. we will give people a choice for how they buy, but for sure we , think the subscription is what they want. emily: there is a big skype integration as well. there was a big skype outage recently. how do you prevent network issues? >> we have to have the world's most sophisticated data center operations. better than anybody else on the planet. all of these tech countries will -- tech companies will have an outage from time to time, but you have to do everything you can to communicate to your customers when you have a problem, and fix it as soon as possible. skype happened to be up and running after a small number of hours, so getting better and better. >> you have been buying iowa has anduying a number of ios
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android mobile apps, or we going to be seeing more of this -- >> we think that is the fastest route to market, but if there is one that we think will complement office, then we will continue with those acquisitions. what ever is the fastest to market. emily: thank you for joining us. google hosted its fifth annual science fair yesterday, and there to meet was all of the scientists and speak to the winner. oliva hallisey, a 17-year-old from connecticut designed a diagnostic test to detect ebola. we asked her why she picked this project. >> i found it devastating how ebola destroys the fabric of the area.
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emily: the biggest star of the night was surprise guest ahmed mohamed, the 14-year-old freshman who made headlines when his homemade clock got him suspended from school. he visited the boots of the finalists and also got to meet with the google cofounder sergei brin. he posted a picture on his twitter account. coming up, president xi jinping is in seattle with top tech leaders. why are they eager to speak with him? we will have that after the break. plus, the iphone will help to measure the gender pay gap in the united states. our findings are next. ♪
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emily: it is time for the daily byte, one number that tells a whole lot. today's number is eight. according to bloomberg research, a woman must work in more hours -- must work a more than a man hours in the same profession to afford an iphone six s and the united states. bloomberg used u.s. data to compare men and women's earnings across professions from bartenders to ceos and found the disparity to be on average, a full day's earnings. the gender gap is greatest among restaurant and coffee shop post where women must work 70% longer -- 47% longer than the male colleagues to afford the same iphone. while the state is struggling bloomberg did find some , professions where men are disadvantaged for pay.
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technicians can apparently afford the iphone six faster than their male counterparts. now, to china and seattle. the chinese president is in seattle as part of his first state visit to the united states. this stopover provides a were opportunity for china to meet with u.s. tech executives like apple's tim cook. the tensions between countries remain high after an alleged cyber attack. what will this trip to seattle accomplish? joining me now from seattle is someone on the ground for us there. first of all, paint a picture for us what is the atmosphere , like? who is there so far? >> good to speak with you. right now i'm in front of the weston in seattle. this is where the president checked in earlier today. he is out and about four meetings with governors from china as well as local executives. he will come back today and he will give a policy speech and
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potentially his only policies each of his whole entire week. in terms of the atmosphere, earlier this morning there were a few hundred supporters as well as a few critics of the president being here. people were waving united states and china flags. looking ahead, there is an error of skepticism, anticipation about what is going to happen here in the tech industry. additionally, when he goes to washington, d.c., to meet with president obama. emily: on that note, the chinese president gave a very rare interview to the wall street journal on this issue of cyberattacks. he said that the chinese government does not engage in fact of commercial secrets in any form, nor does it encourage or support chinese companies to engage in such act is is in any way. we are ready to strengthen cooperation with the united states on this issue. what reaction are you getting from people on the ground to that statement? it sounds like you saying, we
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don't have, but everyone sort of -- we don't hack, but everyone sort of agrees, yes they do. >> you basically said it. anyone who has heard that quote will probably raise an eyebrow and say, really? but, of course, when you look back at even the past year, look hacksleast three major have happened over the past year by china-backed hackers. the most recent, of course, was this past summer with the office of personnel management. china-backed hackers got the information of about 20 million former federal workers including airlines and health care. a lot of people are concerned that this really is happening. white house press secretary did come out this morning and had this to say. concerns center around but we have described as government sponsored cyber theft of business information.
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and proprietary technology from u.s. companies for financial gain. something that we have long been concerned about. it frankly predate the administration of president of china. >> regardless of what is happening with cyber espionage between the united states as well as china, companies here in the united states still want greater access over in china. the same is true for chinese companies trying to get into the united states. that will be addressed tomorrow at the institute when 15 major ceos, many tech companies, will be meeting with u.s. executives here. y: he will be covering this for us all day tomorrow. do not miss it. that does it for this edition of "bloomberg west." we have a great show tomorrow. don't miss it. ♪
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