emily: more trouble for karen theranos. elizabeth tells us they're only using it on one of 100. ♪ emily: i'm emily chang on "bloomberg west." coming up, legendary tech investors tell us what it takes to view industry leaders like bill gates, jeff bezos, and former microsoft ceo steve steve jobs and ballmer says use

the company's third-largest shareholder and last one of the stars of problems million on your listing if it is a bubble about to burst. to our lead. new troubles for the blood testing start up theranos. a wall street journal report says the fda pressured them to limit the number of tests. joining me now is our biotech reporter. what is the very latest that we know? >> last afternoon i spoke to elizabeth who revealed to us that they are only doing one test out of all of the ones that

offers on their fingerprint technology. emily: and they were doing this voluntarily? >> she says they had decided to transition from the old flat or -- from the old lad center to fda cleared to play. because they only have a single test cleared by the fda via running everything else on a traditional lab tech event running one cleared test. they have submitted over a hundred tests to the fda and their balls to remove one by one back into their own platform. emily: what do we know? did the fda show up unannounced, compel them not to use this technology more broadly? >> we do not know. and they have not responded to questions since last night on the journal story on what the fda has done. the fda is also not commenting on what they have or have no t done.

we know that the fda does not require regulation of diagnostic test. but in recent years they have been stepping up their oversight more and more because they are starting to go direct to consumers and that is when the fda gets concerned. emily: we spoke to a leading endocrinologist who is very sort -- smart about blood testing. he was very skeptical. we realized he works for intermountain. he is negative on the company and technology despite the fact that his employer seems to approve of it. listen to a quote from that interview. >> senior doctors and biotech scientists have been paying attention for a long time because their claim of it too great to be true. i've been asking them for their data. they refused to provide it. they do not play by the rules of science or medicine. they are not transparent. emily: he went on to say that the numbers, in terms of the and

-- the amount of blood and the amount needed to be tested for an accurate result do not add up. what do you make of this? >> he works at a hospital system that had a partnership with theranos. their spokespeople said so far they're not actually used the test. they are setting up a pilot study. what they told us is that this doctor does not speak on behalf of of intermountain. there are plenty to go ahead with the pilot study but they do , not have a date for a time for when they will start it. emily: is the real risk reputational or is there a real risk to the business? >> the reputation is a risk to the business right now because it is going out and saying we have innovative technology that is going to really challenge these huge companies, and in order to really disrupt the industry people need to be

ordering their test. if they do not have a good reputation and doctors are not convinced. if they do not start showing doctors that have of data they are asking for, that is going to create to their business. emily: we will be standing by for any additional comments. thank you so much. now to a surprising investment disclosure. steve ballmer owns a bigger stake in twitter than ceo jack dorsey. the stoxx and sharply higher. this came out over night. you were trying to confirm it. you did confirm it. tell us about what happened and what you heard from ballmer. >> i got help from my colleague in bloomberg sports who spoke with ballmer. it was very strange because we saw this tweet this morning from

an unverified account. we were not sure if it was steve himself who had tweeted the news that he made this big investment in twitter. we were frantically trying to get a hold of him. when we did we set the story of online and the stock shot up. emily: the tweet congratulates jack and approves of the layout. but why would jack dorsey want steve ballmer in his corner? what if you bring to twitter? >> that is a good question. it depends on who you ask. i spoke to some analyst who have followed microsoft for a long time, and they were saying this guy made a few wrong call in the macro tech story. they are not sure if he is the best guy to have as an investor. but another analysts said he knows a lot about the sports industry in the media industry. he is the owner of the clippers, he is very plugged into that

world. as twitter tries to become the company that is go to place for all live events, if you want to know what is going on with the game, with the major news event, that is their vision. he is the one who can help them with that. emily: he thinks ballmer might want a seat on the board. the board is about to change dramatically. we will see if steve ballmer ends up on there. thank you so much. now alibaba is boosting its best on online video. they are buying a youtube like service in china. ownership will help jack ma deliver u.s. films and drama series to over a third of the chinese population. adding up to over $13 million worth of transactions.

shares are down about 30 percent so far this year. coming up, my conversation with the sequoia capital chairman. ♪

emily: some breaking news to tell you about. matchgroups' parent company is going public.

the company had filed for a $100 million initial public offering. the stock will list all the nasdaq under the ticker symbol m tch. the new fund is called the why continuity fund. it will be run by former twitter chief operating officer ally gawni. you can put the firm in a tricky position. staying in venture capital, sir michael mauritz is known for having the lucrative foresight and being in google, paypal. he is the chairman of sequoia capital.

he began his career as a journalist followed in the early days of apple and steve jobs. he is referred to as writing roots in a new book on leadership. i sat with him earlier today and asked about the traits that make a great leader. mike: if you think about, in silicon valley terms of the people have been very successful in building technology companies, today you might look at jeff bezos or mark zuckerberg. these people are obsessed with the products that they want to build at the beginning. and then their companies. i think the very successful people are great at building teams around them in dealing with people. i think those are the hallmarks. some of the really great you look at technology companies

and teams have been pretty stable at the top. microsoft in its heyday had a very stable management team, the same has been true at apple products. emily: you are so well known for your time chronicling the early days of apple and you spent time with jobs can you were in favor with him, you were out of favor with him. i wonder what you learned by watching steve so closely about what makes a good leader and what makes a bad leader. mike: the thing that steve has in common with alex is the pursuit of perfection. for steve, the product was never good enough whether it was a computer or phone or tablet. he was always thinking about the next thing. alex in his own way, the pursuit

of the perfect record was always what he was thinking. his product was a team of football players on a saturday afternoon. there are some real similarities. that is the distinctive hallmark of a truly great leader is the great is never great enough. emily: there were a lot of qualities about steve's that were so controversial. we always talk about him with regard to the good, the bad and the ugly. is the jobs model a good one? >> it's very easy for people to -- look, i was a huge admirer, a huge admirer, am a huge admirer of steve's. it is very easy for people to sit and smite him. i do not think any of us,

particularly people who grow with stable backgrounds, have a sense, and i'm no psychiatrist but i do not think any of us really understand the end -- really understand the emotional consequences of being put up for adoption and how that affects your life afterwards. pretend to understand it. i would not when people also do not see about steve's, and i am not trying to whitewash the fact , that this was an individual very capable when he wished of showing great empathy and compassion. emily: he could feel, he could feel deeply, for others? -- and norore mostly enormously so. there are details that go unheralded and not talked about of him going to visit people in house totals for talking on the front doors of friends houses when he knew that that person was sick and ill.

obviously people like to, there's this morbid fascination with the less savory aspects of his character. this was one -- steve is the most remarkable person that i have met. emily: out of curiosity, where did you leave it with him? mike: sadly, unfinished. emily: you wrote this book before jack dorsey was named ceo of twitter. and on page 385 you said twitter has the unenviable task of having a fourth ceo. it is the only silicon valley company that went from strength to strength, which was -- do you think twitter can become the second in history? >> it was run by the two official founders, and then a third qualified cofounder.

jack obviously is a cofounder of twitter. i think there is a big advantage to companies that are run by people who founded them or in the case of alex had a real ownership and holiday. ownership mentality. intel, it was that intelligent. twitter, it is the return of the founder. there are other examples that one can think of where a founder has returned. most notable example is the joe. they have done very well. return to run his company when it went off the rails for a little bit into the from strength to strength.

so i think it is far better to bring a founder back feels every -- feels a real sense of dedication and ownership. emily: what do you see as his main challenge? >> we have not been investors in twitter. we are investors in square. the technology companies begin and end with the product. jack has not been bashful about saying that the product needs improvement. that is where his strengths lie. as soon as the product improves, presumably says kevin bruce -- the boards of companies have

said we will go with this and we supported. emily co-author of the book : leading. you can catch my in-depth conversation on studio 1.0. coming up, how long can the san francisco real estate mogul last? we talk with one of the stars of million dollar listing. ♪

emily: the latest developments for draft kick. banda is the first state to fantasy sports after regulators developed it as a team of gamble and not a game of skill. draft kings is currently under investigation by the fbi. it also faces scrutiny over an employee who one $350,000 from a rival site. despite the controversy last week was the two companies pulled in over $43 million in entry fees. it is a record. it is no secret that san francisco real estate has become an's ainley expensive. followsdollar listing three real estate broker is doing with the most elite listings in the market and they know that tech workers are driving prices up. >> technology is the new gold

rush. apple twitter, google in the bay area. we have the highest volume of billionaires. >> we are in the midst of a real estate revolution. going up 34% in the last two years. emily: how long will the good times last? joining me now is our licensed real estate broker and star of million dollar listing. and i going to be underwater? i bought two years ago. >> if you bought it two years ago, more than likely you have already made a decent amount of money. emily is the bottom going to : fallout at some point? >> real estate is cyclical, everybody knows that. it is going to rise up for quite some time and in the market will settle. like we saw with the financial lending moneyere

to dead bodies and stuff like that. right now, in order to get a loan, you know how difficult and stringent it is. properties areng 20, 40, 50% down. they have a lot in the game. prices are going to go up? it seems that things are sitting on the market little longer. clerics august was a rather slow month. family solidification, brokers and agents were taking it mellow. what happened is right after labor day, which is a very big push for the real estate market, especially in the bay area , tons of properties came on the market. buyers felt like they had options. eight gave them a sense that we could pick and choose what we want because there's a lot more inventory on. >> you don't think things are

slowing down? have a very low inventory rate. a healthy market has about six months worth of inventory. right now, we have a month or less of inventory. emily: i would to talk to you about the people you refer to as the tech people. you always want them to come to your open houses. how are they different than regular people? >> today was a good day for twitter so i feel like i will get some calls. that is how they are getting these him or miss down payments enourmousr mess -- down payments. there is a lot them live here, a lot of them renting. they want to live in the hottest

areas with every amenity outside their door. they have everything they want. the city is their playground now. emily: what is the craziest text relating buying story you have? >> i am on an nda. emily: give me something. calexico love what tech has. they are the best. emily: how long will the good times last? >> a couple more years to go. buy now. emily: i will hold you to that. thank you for joining us. tune into the show on bravo. that does it for this edition of bloomberg west. have a wonderful friday. we will see you on monday. ♪

john: with all due respect to the chicago cubs, welcome to new york. just make sure you leave your filthy stinking deep dish pizza back in chi-town. it is not really pizza, it's like a cheese high. spending power and debbie downer. the talk of the town, hillary clinton is having the best campaign performance and today she is dominating the news. today she was asked to weigh in on president