hours after gunmen affiliated with al qaeda fired weapons dropped 170 people. two gunmen were killed, one an american citizen. france has voted to extend the state of emergency. for three more months. french police conducted nearly 800 raids since last week's attacks. cdc says that and e. coli aaa --k at aaa has -- at chipotle. interim police chief of ferguson, missouri will resign. he cited family reasons. the former chief resigned in march after being criticized in ferguson. a passenger on an american airlines flight was removed before takeoff.

those are your bloomberg first word stories. ♪ johnson in for emily chang. coming up, tesla recalls all of its model s cars. jawbone lays off another 18% of the workforce. samsung hopes virtual-reality will bring real-world profits. the company begins shipments of its first mass-market virtual reality product. motors recalls the entire fleet of model s

sedans. they want to check for defects in the seatbelts. it is the largest recall, involving 90,000 cars worldwide. only 89,000red vehicles previous week. kevin joins us. how important is this recall? and i saw the headline, i wondered how many have they made? ofin: it is the whole line the model s since production in 2012. it is interesting that it is everything that they have produced in that particular model. the defect was found in one vehicle and subsequent tests have not found that defect in any other vehicles. i would even argue that this is an opportunity for tesla to reach out to its customers and get them back into the dealership and the showroom and a little bit of goodwill while

they are added. cory: a defect is goodwill? kevin: there was one effect. it is the kind of thing -- cory: they are recalling every single car that they have made. kevin: to have a look. they certainly would not be required to issue the recall. they chose to put out the recall notice and invited customers in. this would not have been a mandatory recall. obviously, it was something with safety with the seatbelts. they chose not to wait and have something happen. then, recall the vehicles. they invited customers back in on their own. cory: i talked to the national transportation safety board and they said that most recalls are in fact voluntary. requiredesla has not -- they came out with a

statement. they said that tesla found a vehicle and europe with the front seatbelt not properly connected. the vehicle was not involved in a crash and there were no injuries. it would not provide full protection and the event of a crash. -- n: cory: it may be worth $9 million cost to tesla. that is assuming that every car gets brought in. what is your expectation in terms of the cost of the repair? assume thatld not there is any material cost at all. this could be a matter of the seatbelt not being anchored. a matter of tightening the bolts. $85 for an to charge hour of labor, they can probably do 60 cars in an hour. i don't think it is material and

there probably is no material cost in terms of additional anchoring. cory: you really think this is a less than one minute repair? kevin: it is probably just tightening a bald. cory: overall, as it gets longer and longer, i wonder what this . arts to mean for the model s it is now nearly three years old. then: we have seen where seems to beids because of where we are with gasoline prices, especially in the u.s., seems to be a good alternative for urban driving when you have a limited range of 53 miles each covers most people's commutes. total range will be over 300 miles which is something you cannot do in any of the other

vehicles. hadeems like we have not that flight to full on electric because we are not that concerned about gasoline prices right now. cory: yet, we see every carmaker bmw ian w down the line -- down the line saying that cars will be fully electric. kevin: i think you have to be in the game. i think it will still be a very small percentage of sales going forward. again, until we are really dealing where it hurts us in the pocketbook to fill our vehicles, our combustion engine nichols with gasoline, -- cory: what do you drive? kevin: i am not worried about gasoline prices, usually american muscle cars. muscle, kevin.of jawbone.

15%one laying off another of its staff, part of a global round of layoffs. also shutting down new york office. it is becoming increasingly crowded and competitive. jawbone sold only half a million fitness trackers. they're standing is slipping. to% market share, compared 24% for fitbit. julie asks joins me right now. you have done interesting work about what the ultimate market is for these devices. what do you see the driver of these devices? you have something fancier on? julie: yes. cory: what is driving this market? julie: if you think about why consumers eye one of these

devices, they typically have a goal in mind. i want to lose weight or get off the couch or be more active or walk 10,000 steps a day. in my case, i want to know how far and fast i am running and i want to collect longitudinal data. the challenge is data on its own is not enough to help consumers meet their goals. cory: knowing that i walked in thousand steps, all it tells me is that i walk 10,000 steps. julie: yes. what does change consumer behavior is competition, support, coaching, and all of those things can be delivered through a mobile app or some kind of a service that in just the data from these devices. -- ingests. cory: health care companies which may benefit -- they do not have to develop the hardware themselves and that might have been the case.

julie: no longer. i think a lot of the data has been commoditized. some of the devices sell for as little as -- cory: this is the problem. the commoditization of these things -- differentiation is not great. the technology is no longer novel. julie: things like how many steps i have taken today has not only become commoditized but platforms like apple and google and microsoft make it very easy for me as a consumer to share this data with any other third party that might take this data along with how many calories i have consumed what i have eaten or how well i have slept. they layer services on top of that to help me achieve my goals. fitbitow is it then that is able to command 40% growth margins last quarter? julie: you have to give them a lot of credit by continuing to

make money by selling hardware. they also have software. the market of consumers who are self-motivated to go out and walk 10,000 steps a day and improve their lives is too small. one of the keys to this market -- one of the keys of the market is the insurance companies, where there is an incentive for me as a consumer to wear one of these devices and be tracked and in exchange for that i get something back. cory: we have not seen a lot of that. fitbit has a wellness program which is interesting and they have been partnerships. a 60,000 unitwith order. we seeing much of that? julie: starting to. there are challenges. consumer comfort with wearing a device and sharing data. there are privacy issues with who owns the data.

does my employer see how many hours a night i sleep or how many steps i walk? singaporea company in and everybody in the meeting was wearing a jawbone because they are paid. their bonuses were impacted by their bmi. it was a financial services company. cory: financial services would do that to their employees. thank you for coming. coming up, a crucial moment for virtual reality. samsung's first product will begin shipping today. is here toest explain the difference between augmented and virtual reality. next. ♪

cory: a pivotal moment for virtual reality. gear has built the first virtual-reality product. it goes for $99 and requires a samsung smartphone. there is also a headset launching next year. reality, a company is picking up where google glass left off. they unveiled interactive glasses meant to work in the enterprise computing suite. they're hoping that the product will be used for real-time image annotations while focusing on a task and the normal field of vision. is this a? >> good to be here.

announcery excited to our smart glasses. essentially, they allow you to -- i can still see the world. the world is not blocked. you are engaged in the world. you have a computer at your eyesight and at your fingertips that you can interact with. cory: what can you do with this that you cannot do with others? >> many examples we are focusing on -- deathless? cory>> think about doctors. most likely, it will be something like an airplane or something complicated. these people are wearing gloves and they need to do context

tasks and they need information while they do their jobs. with these glasses, they can focus on the job and still have all of the information that they need. they can interact with it through normal gestures and leverage existing applications. it is essentially an entry computer underneath. -- android. google glass opened up a number of markets, and clearly on the enterprise side is where they have the most interest. what we do compared to google glass -- we provide the ability to see very complex and rich images. it is small. in our case, we can show you 3-d objects that you can see as a physical object. cory: what was it like writing the software for this? the market is exaggerated for

3-d printing. i would imagine that it is similar doing a manual for someone using augmented reality. there he difficult and much more expensive. alberto: you are on the money on this one. things that ar people imagine are quite difficult to program. what makes our system really special is the fact that we can run any application without any modification. imagine the following, not that you would want to be running local maps, but you put the glasses on and you want to see google maps. you don't have to touch anything. you can swipe. you can cap on things. exactly as you would on a phone. there will also be other things that will require more programming. it is the ability to deliver applications very quickly. cory: how expensive was is to

design? overto: obviously, it took three years to get to this point. we have been in the market for one year. this is our first fully commercial product. cory: dollar amount? alberto: tens of millions of dollars. fascinating. atherr labs. the latest with theranos. the government is looking about whether closing a loophole that movingrevent them from away from the fda. they are urging lawmakers to mandate regulation of lab developed tests. theranos was slammed by report questioning the blood tests. the lawyer defended the company to my colleague. >> theranos has published more data and made more information available than any of the other lab companies.

part, because of the arguments going back and forth between it and the competitors, is being challenged to do things that no other lab company is doing. theranos is doing that. for example, no other laboratory company submits its tests to the fda. theranos does. that shows the confidence that theranos has in those lab tests. cory: that was the lawyer and board member david boies. do you have your tickets for the new star wars movie? already breaking box office records. ♪

cory: still a month away for opening day of "star wars: the force awakens", but it is breaking records already. the film generated more than $50 million in advanced ticket sales. most imax theaters are already sold out. regular showings are still available. to keep up with the demand, chains are looking at extra showtimes. speaking of, microsoft teamed up with the nonprofit, selling minecraft to get students interested in coding. joining us is hadi partovi the founder of code.org. i'm watching my own children learn to code. they are crazy about minecraft. how are you getting them to connect the two.

hadi: thank you. it has been a privilege to work with two amazing brands, both star wars and minecraft. we are overjoyed with them being willing to contribute to this amazing movement of getting students to try coding and computer programming for the first time. cory: i get minecraft because i watch my kids play it obsessively and compulsively, but how does it work and how does the coding aspect of it work? with our minecraft tutorial, students write the code to control one of the alex, and, steve or the code that they write controls the character's movements and they can chop down trees or collect wood and build a house or go underground. they can mine diamonds or call and build things. these are the kinds of things that they can do inside the game.

now, they are writing the code to control those things. they are also learning computer science concepts like loops and conditionals. cory: how does this work? how do people access it? hadi: our tutorials are code.org.at they work on tablets and smartphones. both tutorials are fantastic, short, one hour, fun experiences. the writing is done just by dragging and dropping commands for the characters to carry out. i wonder, what is the fundamental thing you are trying to teach with this? you are not teaching them to write in a certainly which or do something that is horribly complex? what is the fundamental way of

thinking that you are trying to get in these kids heads? hadi: the overall goal of code.org is every school should teach computer science as part of the curriculum. nine out of 10 parents agree with that. people are intimidated. this is part of a campaign called the hour of code. in one hour, you will not learn to be a computer scientist, what we want to teach is that this is not as hard as you think. it is not just for the geniuses. you do not need to be 20 years old to get started. you can start at any age. easy as any other field. but, if the basic thing you are trying to teach them is logic or how to compile together a series of instructions? you need one to lead to the next? is that a basic element of coding knowledge? hadi: fundamentally, coding and

computer science is not about learning a special image. it is about problem solving, breaking down problems, and logic. that is exactly what we try to teach and what the ongoing curriculum in computer science teachers. cory: really interesting. "bloomberg west.", -- hadi partovi, they give you much. jack dorsey's birthday milestone. we will recap the week's biggest events in the world of tech. later, an investor who backs a lot of companies will talk with us about autonomous cars this hour. ♪

shares of google parent all-timelphabet hit an high today.

google is prioritizing cloud services to generate more revenue. they will add business by 2020. jack clark joins me from the newsroom. why is this such a big deal? jack: she has a huge history in the valley. and soldd found vmware it in the early 2000. she has made a number of smart investments. all of which have had success. she is well respected. she has been on boards. she will bring much-needed coherence to google's cloud story, which has been very fuzzy before and people have doubted their commitment. this move changes that. cory: is this a focus on enterprise or consumer? jack: this is a focus on enterprise. the analysts say the real competition is microsoft.

foron's cloud leader consumer, microsoft has the enterprise, and this is what google will be going after. interesting, -- cory: the technological aspect is huge, but the market could be just as big. google has not had great success with enterprise. jack: it has not been joined up at all, but now they are consolidating their businesses all into one division. that is much closer to how microsoft has been trying to do a vertical solution. it will take google away from the point product marketing which damaged its message in the past and made it seem more niche. cory: interesting. we will see where google makes this work or not. looking at the cloud. we appreciate your time. thank you. ♪

cory: this is "bloomberg west." jack dorsey. another does of bad news. bradone, head of global -- stone. what you think of these? let's talk about yahoo!. kids.pregnant, two again,a lot of heat, what is the latest? >> activist investor is back.

a year ago, they stirred the pot and got people excited because they wanted yahoo! to do something special with their alibaba stake. yahoo! made a big announcement. said,. like you brad: they have come back and said we have thought about that, but we also want this option. it is a new way to guard against taxes by doing a reverse spin out where yahoo! sells the core business to somebody else. is back and they have popped their state. cory: it is interesting that the stock trades as if there is no yahoo!. brad: the core business has not done well. alibaba is driving the stock. it does not matter. essentially, this is a company

that is all about what they are doing. cory: moving on to square. jack dorsey talk to emily chang. i don't know. i think it is an important distinction. first, you are what you pretend to be. square recently has been a technology company. it started as a payment business, but it is offering peer-to-peer based -- peer-to-peer payments. it wants to be a tech provider. aren't all payment businesses really technology businesses? cory: this is the thing about theranos, the idea that they will bring new technology to the lab corporations of the world who do not have technology. of course they have technology. every business is a technology business. brad: if you are going to build a successful long-term franchise, they know you need to move upstream.

priced thehy they ipo lower than expected. they need people to write out the investment in ancillary businesses. that is just my opinion. goldman sachs made a lot of money in the deal. cory: were you surprised by the trading of this? they held $13. brad: the last private investment was at $6 billion, then they lowered it down to nine dollars a share and it bumped 40% on the first day. that kind of volatility is the story of almost all tech ipos. cory: goldman said the market was closer to nine dollars and it is apparently at $13. brad: the optics probably look good which may instill faith and investors. they will give jack and his team

a little bit of room to build businesses. cory: let's talk about facebook. facebook did something after the paris attacks which was a safety check. you were there. as your friend, i was terrified when i saw that you are there. we had another terrorist attack today by al qaeda in africa and facebook did not give the same feature. >> it is interesting, they have gotten criticism for that. what they say is that this is a relatively new feature and they were turning it on last year for natural disasters. they are trying it out now for terrorist situations. i will give them leeway. france washrough it, an unusual situation. this is a western society that we are not used to seeing embroiled in these middle east hatreds and situations.

it does resonate on a different level. i say that with all sympathy to disasters in beirut and kenya and elsewhere. the situation in france was extremely unusual. facebook learned a lot. i would like to see them roll it out more broadly. interesting too look at what is happening with all of these ipos, both of match and square. people are thinking about putting a bow on it and maybe we have seen the big deals for the year. do you think? brad: those are the two big ones. i'm not sure that anything else is in the pipeline. we will have to see what happens. cory: finally, as we look at facebook, i wonder, everyone is changing a picture to the french flag, do you think that is good for facebook's business? is it more the place for people to share experiences of their lives? brad: it is a way for people to

easily show their sympathies with world events. it has become a little bit too fashionable. i do not go for it, personally. i do know if it makes us more involved or less involved in world affairs. it seems like an interesting way to show that you are paying attention and u.s. sympathy for people that are affected. cory: a statistic i have come across, more people are on facebook everyday than not. they have reached the tipping point. it shows how big the business is. >> those flags things have been going on for years. we sought with iran on twitter. it is not out of the blue. cory: thank you much. we appreciate it. coming up next, another story from anger --. government shuts

down internet for entire country for an hour. they wanted to block certain app s. says it shut down the entire internet for 75 minutes. and his thoughts on artificial intelligence, next. one day, cars will be autonomous. if you like bloomberg news, listen to us on the radio at bloomberg.com and on xm sirius radio. ♪

cory: nasa placed its first

order with space x. it is the second in a series of four guarantee orders. inging received -- boe received its first order in may. they launched the first rocket two years earlier. they established themselves as a competitor to the alliance between lockheed martin and the company. changng of space, emily capitalistth venture steve jurvetson. here is his take on the future of autonomous cars. steve: if you believe that all vehicles will be electric and autonomous, all car companies have to do it or they will go out of business. if you do not do this, you will

not be in business. they should. you wish them well and hope that a whole fleet of different kinds of vehicles will come out. no one company can do it all. emily: do you think apple is working on a self driving car? steve: yes. emily: apple tries to do with somebody has already done and do a better and different. do they? steve: sometimes they do and sometimes they don't. the watch is not grabbing me. i'm not a fan. i have a lot of watches. i wear them. i cannot them in my personal case, the charging issue. follow --uld tesla focused on more mainstream electric cars. the model 3 is supposed to cost

$35,000, but that is a base price. steve: that is their long-term vision. innovate or put a lot of money into it. and if youmodel s, factor in the total cost of ownership over 5-7 years, your total cost is not that different from a high-end vehicle. if you do the same analysis, it could come out to being like a honda civic. that sounds more like a mainstream vehicle. emily: i know you are fascinated with machine learning. how does ai change our lives five years from now? steve: probably a little bit more than five years, what we will call it will be different. say manage your schedule and figure out what we might want to do today.

it will creep into medical and diagnostics. there will be all of these areas are recognizing a pattern whether of human behavior or a picture or the world around us will help us see things that we did not see. you will think you can navigate more easily. you can optimize your calendar. i think that will start to acclimate us to what we call ai slowly, as opposed to a boom. emily: how concerned are you about google's ambition with ai? does it scare you? steve: a little bit. there's a bit of reckless abandon, almost like a technical utopian situation. we will because just. it is almost like an inevitable trajectory that technology is the future and we will make good tests for the ai in the future

and life will be good. what could possibly go wrong? what i worry about are the ai that are purely visual that we may never know exist that live off of information feeds and operate in a way that we cannot fathom. we may not detect their existence. emily: how is your interest playing out in your investment philosophy? steve: the way we engineer things is changing from everything that we think of as engineering to what we think of as more like growing and iterating a solution very rapidly. emily: what do you mean? steve: you can build a brain and a box. that same program could recognize anything on the internet or could recognize speech or be used to try to find tumors and mammograms or other

radiology slides. the generic learning the scenes can now be applied to many different things and you do not actually know how it works when it is done. just like we do not know how the brain works. emily: could these computers someday take over the world? steve: yes, but why? emily: they become smarter than us. steve: to what end? we would not know that we are pets. we would wake up and they would figure out how to do a fusion reactor. imagine the gap between us and our pets. the cat thinks it's a fierce hunter, but it lives in the house. i think it would be similar. we would not even know. cordialtelligence and -- total revolution, means less violent. why would they use kindergarten level -- my toy.

as opposed to a much more sophisticated manipulation. was steve jurvetson with emily chang. an announcement, live ratings will be issued no longer. fox says that it is no longer relevant because viewers watch shows later. they will provide numbers for live events but well measure other programs after 3-7 days. fox is the first network to break with daily ratings. , profit stream. that most people over 30 would not understand at all. ♪

cory: it is a business most

people do not understand and also a business that is too big. videogame streaming going mainstream. we have report. [indiscernible] $6,969.ust got >> mom. >> she plays games. >> welcome. i play games. >> that is her name. twitch is a website where you watch people stream video games. >> you are falling. get back up. >> it is free to watch, but twitch was select really popular players and give them partner status. once you are a partner you can make a lot of money. >> thank you. that is amazing.

it is so special. there's something so special about directly affecting the content. thank you for subscribing. if i could watch modern family and tell them, that was really funny, you did good, i loved that line, and have them say thank you, we worked really hard on it. we are glad that you appreciate it. there's something interesting in that sense with life media. >> twich is insanely popular. in 2014, amazon paid almost a billion dollars for the site. and surprisingly, most of the top streamers are men and most of the audience is male. that was the current edition of bloomberg businessweek. it has transformed the company into a media powerhouse. felix gillette joins me.

i met them at the bar downstairs. three years ago. they share the numbers with me. my job was on the floor. it is a huge business. it is as big a media property as nfl. felix: it is amazing. it is not how many people are watching but for how long that they watch. ch viewerge twit watches 104 minutes a day. cory: that is disturbing and awesome all at once. how can i briefly describe the long tail of this notion? the future of the media is not a big giant network. it is thousands and even millions of little websites or whatever, media properties, that garner a much bigger audience than the tent poles. i cannot tell if it is a short tail or a long tail property.

there are so many users and semi-contributors. incrediblys an specific audience. again, and traditional television, you get your show canceled pretty quickly. there are so many channels out there that it aggregates into a very big audience. ago, amazonears acquired imd and now they have a fantastic streaming video business after purchasing imdb. felix: what is amazon's goal . th twitch they're not thinking about short-term profitability. they are going for driving themselves further into the videogame community, making them

more central. they think there is a lot of growth left. they are very big right now in the u.s. and in western europe. they think there is a lot more audience to be gained in japan, south korea, australia, so they are spending a lot of money and building new data centers. from the amazon perspective, it is great to have this in their arsenal in the long-term battle for the future of the living room. especially, for young consumers. twitch is huge with young men. cory: when will the felix gillette channel launch on twitch? felix: i can't reveal that. cory: it is a need to know basis. you can reach her great article in the new edition of bloomberg businessweek. thank you, felix gillette. that doesn't for this addition of "bloomberg west."

i hope you all have a wonderful week. check this out right here on monday. ♪

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>> from our studios in new york city, this is "charlie rose." we begin this evening with our continuing coverage of the paris attacks. theas been confirmed that ringleader was killed. they used fingerprint analysis to identify his body. he was involved in four out of six plots against france. he was known to have traveled to