a 1.1 trillion dollar spending measure avoiding a government shutdown. it also lists the 40-year ban on cruel exports and brings that dozens of expired tax breaks. the bill goes to president obama. the democratic national committee is cutting off the sanders camp from a crucial voter database. it came after the campaign was accused of taking advantage of a software error. the d.n.c. claims the bernie campaign accessed confidential voter data collected by hillary clinton steam. sanders campaign manager says they will fight back. republican candidates are preparing for their final debate of the year tomorrow in new hampshire. clinton leaves sanders 59-48%. city 4% say hillary clinton would do a better job of handling -- 64% sailor clinton would do a better job of handling the terror threat. the white chicago officer charge of the fatal shooting of a black

teenager made a brief court appearance today. jason van dyke is basing six counts of first-degree murder. the release of dash cam video has led to continued protests and calls for reform. that is your bloomberg "first word" news. emily: i am emily chang and this is "bloomberg west." blackberry's breakthrough. the c.e.o. says he would like to take a test behind the wheel of a tesla. they take different sides when it comes to giving the government your data. a blockbuster movie. it is "star wars." star wars breaks record not seen since harry potter. why the disney stocks not feel the force today? that story later. a glimmer of hope in

blackberries long-awaited comeback. shows rally today on better-than-expected earnings report from the struggling phone maker. blackberry reported a loss of just three cents a share while endless predicted closer to 14. revenue also coming in about average estimates. the key was the software sales figure, north of $169, meaning the company may be able to make good on what some saw as an ambitious target by march. i spoke with the c.e.o. from blackberry headquarters in ontario and asked whether they might exceed the target. >> [laughter] it first.me making it has not been easy. it has been a lot of people through the last nine months downing whether i am on the right medicine -- doubting whether i am smoking the right thing or something like that. .et's get to the 500 i feel good about doing so.

we are growing in the right area. we are growing in recurring revenue. everythinge quarters came together as we planned. you get there, say you hit the $500 million sales target, how do you continue to grow? will we see you making more acquisitions? >> organically once we have digested all of the acquisitions we have made, we have a strong platform now. both in technology, product offerings, as well as the customer base, and the sales force. we are working very hard executing. the next leg of growth is most acquisitions, less on acquisition bit more on growing the efficiency of the business. that is where i am expecting we will start seeing some of the qnx in the auto

industry today, broadening out to the medical industry. those are things that are going to happen also helping growth. i'm not going to rely completely on acquisition. emily: turning to hardware before we get to cars, you sold about 700,000 handsets. that was lower than some analysts estimated. are you changing anything about the strategy? how is that strategy involving based on what you have learned so far? >> i think the strategy so far, early, we launch it on november 6. the entire november, we were operating in four different countries. the response has been encouraging. to roll it out in 31 countries in the next three months. emily: the priv is very high-end. would you consider making a

cheaper phone? the results in the next three or four months will tell us if this is a good strategy. the strategy is to combine the best of blackberry with the best of android. if that is well received in the market and looks like there's a good chance of that, the answer to your question is we will probably still focus very much on the high-end, probably more midrange in a phone like that coming out in 2017 or fiscal year 2017 which is calendar year 2016. emily: interesting. you mentioned you will be unveiling software related to self-driving cars next month. would you consider partnering with companies like tesla or google or apple, companies already working on self-driving cars? >> absolutely. i would love to do that. we had a couple of partnership announcements in the last couple of weeks regarding this.

not the big names you laid out. we work with google on a number of areas already. i would love to extend this. platform works with the apple car strategy as well as the google. i would love to be able to work with tesla. i am sure the folks are talking to each other by now. involved in the car industry with many vendors, providers. we are in 250 models. our software is currently in 60 million cars running around. us to tap intoor the next-generation automobile. emily: you mentioned apple, partnering with apple, what do you know about the car making plans maybe we don't?

>> of course, i cannot talk to you about that. we know a little bit probably, not much more than others. probably we should not talk about it. emily: blackberry c.e.o. john thain telling me his qnx software for cars is intently more vehicles than when we spoke last quarter -- of 10 million more vehicles than when we spoke last quarter. we will continue on self driving safety and hear more about how blackberry differs from apple it comes to the encryption debate. the apple payment platform will soon be available in china. both apple and samsung reached separate agreements with the largest payment maker to break into the market next year. drivers will be able to add the bank cards to devices to buy stuff. but they face tough competition in that market. alibaba already have huge customer bases for payments on

their e-commerce platforms. is there such a thing as following the law to closely -- too closely? for google's driverless cars, that may be the case. they are making a big impact in the fight against terrorism. a special report on how tiny robots are saving lives around the world. ♪

emily: welcome back. amazon is looking for a big way -- bigger way to take control of the delivery process. the online retailer is considering leasing 20 boeing 767's. this would save time and money. they want pose a threat to fedex and u.p.s. yet. the initial proposal is said to include only a handful of planes. from the skies to the streets, accidents involving self-driving cars are on the rise. who is at fault may surprise you. blame the humans. they are slamming into driverless vehicles at twice the rate of regular cars. the reason why is because harvill cars opened a law all the time without exception.

the automotive reporter has more from our detroit newsroom. tell us how these accidents are happening. orcrashese low-speed -- or no speed crashes. the cars come to a stop. human joggers who are not as careful ram into the back of them -- human drivers who are not as careful ram into the back of them. emily: basically the cars are too obedient. how do you face the challenge? >> that is the challenge facing the developers. google at a four-way stop will have a car inch forward a little bit to signal i'm going next. there are so many situations where we sort of break the law. we crossed double yellow lines. we speed. it is not clear it would be smart for a driverless car to engage in a behavior. emily: he spoke to folks -- you

spoke to folks working at the self-driving car lab. how are they tackling these questions? >> there is a lot of debate on whether to break the rules. what laws you should follow, what you should not. they have a hard time testing cars in busy conditions. they talked about one drive near washington, d.c., where they could not merge into moving traffic because there were so many cars. the robot car did not know how to get in there. the u.n. had to take over -- the human had to take over. they need to find a way to fudge the rules but not too much. emily: california is cracking down on revelation -- regulations. how devastating could it be for the industry? >> google does not like it. google just wants the car to handle the whole function of driving. these new regulations california is proposing would have a human always ready to take the wheel. there would need to be a wheel.

companies would be to file monthly reports on how the cars are behaving. it is a very cautious approach to regulating driverless cars that google does not like at all. emily: i've had this conversation with the inventor of the self-driving car who went on to found google x. it is referred to as the trolley problem. if a self-driving car stays on course, he could hit a school bus. if it veers off course, it kills the driver. how do they handle situations like that? >> that is another issue. these ethical issues. if your car is bearing down on a school bus full of children, should the robot decide to drive you off a cliff and kill the occupant of the car were hit the bus and kill the children? these are tough ethical decisions programmers will have to make choices on. it might take actual changes in law to address some of the stuff because right now it may be too rigid for the robot cars to handle. emily: i'm curious your thoughts

on john chen saying earlier he would like to partner with tesla, apple, and extend their partnership with google. do you see blackberry potentially becoming a strong player in the self-driving car market? >> there is no reason they should not be. they are already a huge automotive supplier with the entertainment platform in 61 cars. all the household cars you can think of. they all have this qnx software. they already have technology in cars. it is the logical next step since so many cars are going to the driverless technology that blackberry would be involved with that. emily: despite the regulatory issues, google is on track to turn it self-driving car into a standalone business next year. what milestone should we be looking for in the self-driving car market in 2016? >> we are getting close. g.m. is going to be introducing an autopilot feature. google is looking at having a

ride for higher robot car service before long. as they set up the company as a stand-alone business, it is the key step to getting because in public as actual commercial products we will all be using. emily: our automotive reporter from detroit, thank you so much. we will be watching in 2016. in recent years, robots have played an increasing role in the fight against terrorism. they were even used by french special forces tracking down those responsible for the attacks in paris. the company behind those robots was designed by the rebel team. we have a report on how the small in raising -- israeli company is making a name for itself in the robotics industry. >> they can look like a grenade. they can climb stairs, being back mission-critical intel to soldiers and swat teams. robo teams existing family

consists of three models. the pro is the largest. it can see all directions and in night and day. it can carry weapons and supplies weighing up to 1600 pounds. that is the equivalent of 10 of me. if a soldier gets wounded, it can carry them safely out of harms way. the c.e.o. says he has received scores of letters from soldiers thanking him for his life-saving robots. operations tof include the gaza war, afghanistan, iraq, and france, and many other places around the world, special forces are using the robot to answer and observe around corners. sometimes, the robots hit the bullets instead of the soldier. >> designed in israel and made in america, they can be fitted with add-ons ranging from guns to gas sensors.

they can bash down doors and remove bonds and booby-traps. to get their first big break with the pentagon, they deployed israeli chutzpah instead. >> we here in israel a general from the u.s. government is staying in one of the hotels. we decided to ambush them in the lobby. he saw our solution and gave us a chance to be tested in the u.s. >> these robots are in 30 countries including the u.s., israel, britain, and thailand. the company says it is speaking more established rivals because it's can be man carried, cost half as much, and are as easy to control as a playstation. in paris, they may find themselves increasingly busy. bloomberg news, tel aviv. emily: coming up, a galaxy far, far away. "star wars" is here. why are disney shares slumping? stay tuned to find out.

there is siri and the over-achieving version. we will talk to the creator of this technology later in the hour. check it out. how old is the father of the mother of the president of the united states? >> michelle obama is 51 years old. the president is barack obama. his mother's father died -- ♪

emily: what does silicon valley get that other industries don't get? it is finally here. don't worry. this will be a spoiler-free conversation. disney announced "star wars"

sold an estimated $57 million in north america breaking harry potter's sales record. today's matinees have reported over $100 million in ticket. disney shares fell on 4% today after an analyst downgraded the stock to sell, citing issues with espn. , both saw to discuss the film. you went to the premiere in san francisco. was it everything you expected? >> it was pretty great. i think my expectations were low and were very much exceeded. it felt like the original series . it what you wanted out of a stop at -- "star wars" movie. i definitely enjoyed it. this was much better. emily: interesting. mark zuckerberg is very excited about it as well. he has been posting on his facebook page. he posted a picture of his new baby saying, "the force is strong with this one." he posted a picture of his dog

saying he has turned to the dark side. what did you think of the film? >> it was great. it is rare it get something so hyped that still manages to overdeliver. they did a spectacular job of blending the old cast with a new set of younger actors. daisy ridley is going to be a huge star. she may be the most formidable heroin disney has produced. emily: let's talk about numbers. records, is breaking breaking every record possible so far. and yet the stock is down. what is going on? tothat is largely reaction the report today. i think it was opportunistically timed. the disney stock has done well up until now and the whole year. uy on thea lot of bo

rumor and sell on the news. people have sold. he underscored big problems disney and all cable programmers face. that is how you migrate to the online world of tv viewing. emily: interesting. rich greenfield saying if disney does not sell $2 billion in tickets, they will miss forecasts for the year. >> i think there is a situation where expectations are so high. and the disney marketing machine, we are thinking about "star wars" all the time. espn matters a lot. the trend is going down. i think this analyst put the stock at $90 where it should be. it is at $107. there is room to fall at these rates. emily: somebody in my family will be getting a droid for christmas. what about all of the merchandising opportunities

around the film as well? i know we are looking at potentially nearly $3 billion in ticket sales. how big could the movie be for disney when you include everything else? >> i have seen numbers of $6 billion in the first year of merchandise sales. disney has really expanded the categories within toys, like that high-tech droid. but also in apparel, a lot more stuff for women. makeup and everything you can think of. it is going to be a huge bonanza for disney, especially since they have such momentum with the film. emily: what is your gut? do you see the potential for disney to miss forecasts for the year? >> no. right now, they have a built-in growth in the cable business because they have long-term contracts. i think "star wars" is going to be a hit for sure. i don't see an immediate problem. this will still way down disney stocks for sure until they

figure out some sort of transition to the tv business. emily: i think i am the only person who did not see it. i'm going to have to rectify that this weekend. chris and eric, thank you both. coming up, more of our interview with john chen, including why he disagrees with apple's c.e.o. tim cook when it comes to giving government access to your data. plus, the biggest stories that rocked the tech world this week were did not -- or did not. details next. ♪

emily: i'm emily chang and this is "bloomberg west." artificial intelligence is no longer the stuff of be science ffpblgts it's quickly becoming a part of you are everyday

life. but with real life come real problems. bloomberg's jack clark was at an a.i. summit in montreal lately. first of all, elon musk is the guy who said a.i. could be summoning the devil, right? >> yes. emily: he founded this big thing called a.i. to fund open research in the field. what's going on here? >> elon spoke to us and said if you are going to summon anything, make sure it's friendly. he's now changed, he thinks a.i. is a sure thing and if it's going to happen he wants to bring it out into the open. the whole idea is if we're going to make machines smarter than us, we should do it? -- in such a way that it's not a surprise when they get here the emily: what do they mean about the ethical issues they're

debating? >> when you have self-driving cars, are cars are going to have to make decisions in crash scenarios who to crash into. that's a complete gray area. and we don't know what we do. if you get in a tough situation on the freeway, you're not going to be really thinking so how do we tell machines what to to if we don't know ourselves. emily: and i was speaking to not? else who knows musk very with. >> this is the inevitable tragedy eth orie that technology is our future. we will make good pets for these a.i.'s in the future and life will be good and they'll feed us little treats and stuff. emily: aim going to be a pet for my super-smart robot computer one day? really? >> well, you've got two choices. either you're a pet or your robot computer brinks -- brings you drinks on a tray and then

goes to space for fun. we don't know. a.i. theorists are trying make sure you get the drinks on the tray rather than the pet scenario. emily: but others say we won't care because we don't are -- won't know we're pets, right? >> no. they say we'll have a great time, thinking that weern serving them. emily: i think i could handle that. thanks, jack. we'll be back with more of "bloomberg west." oxygen let's continue now with more of our interview with

blackberry c.e.o. john chen, who recently jumped headfirst into one of the most controversial topics in the industry right now, encryption. he said blackberry standards doon ply to criminals. i asked him when exactly he allowed the government to look at our datea. >> if the government will rovide us a court-order -- subpoena to start tracking, we will do so at that time that the are subpoena has bbseshed. we do not send any data to anybody. we actually don't keep any data and content. so the data itself is be going -- not going to be shared with nobody, partly because we don't actually have it. what we do have is whether there are communications between certain points, lotcation of that communication, the length of that communication. the information aur -- surrounding the interactions,

not so much the data itself. but we have a longstanding policy to do that. i'd like to explain a little bit more about i didn't say what i said. each and every one of us, technology markets, each of us offul of m mind things beyond ourself. we have a duty to keep our community safe and peaceful. blackberry is right on and had a good balance on that. for all the good citizen out there using our devices and systems, nothing to worry about as long as the court order is there. emily: now, that's different than what competitors like apple have said. they recently told a federal judge they couldn't unlock a drug dealer's phone in order to share messages. in spornings you said, "we are indeed in a dark place when companies put their reputation above the greater good. "

>> each and every wunsch us want to see a peaceful and safe society. we contribute to it. we take away from it. so we should give back to that. i know people critsase me for saying that and therefore it may fect some of the business. i doubt it. i think good citizens, good people, good company, exactly -- understand exactly what i'm saying, which they should. emily: our bloomberg business reporter adam joins us for more. looking at apple and what's happened, the rest so far this week. alan, great to have you here on the show too for the first time. adam, i want to start with you in this discussion about encryption. are now john chen is wlaying in on the other side from tim c507b8g9 is it that black and white? >> app sl taking a clear stand on end to end encrypttion.

it can't break into specific messages. but apple does when a judge orders, it does supply. what they're -- they're saying now is around text messages. if i send a message to you, it completely encripts in your machine and then apple can't jump in to see what we're communicating about. emily: tim cook recentry spoke with charlie rose saying there be -- are people who suggest we should put a back door in but if we do, that back door is for everybody, good guys and bad guys. what john tchen is saying is hey, why would we protect any criminal out there? why do you think tim cook has sort of made this his issue? >> his point is if you create

the system apple has, he's saying apple, why don't you create a key. apple says if you create a key like that it's going to become a hive for hackers and others to try and come get it. p aback door for the good guys will also be one for the bad guys. that's his argueue. after the snow depp revelations, it seems like that's what people were calling for but now you see after paris and san bernardino, times change. emily: now it's going back. so another big apple development is they named a new c.o.o. there hasn't been a drrvings o.o. since tim cook became c. e.o. what is your read on this and why now?

>> it shows that jeff williams, now the chief operating officer, is tim cook's clear number two. and these two people have a long history. they wrked --, worked together over a decade at i.b.m. and one of the first things tim cook did in 1998 was call jeff williams and see if he wanted to come work at apple. he's been there ever 1i7b89s now he's going to be his top diplomat emily: he's been called "tim cook's tim cook." and they actually do look a loot like! alderblen, one thing i wanted to talk to you about, the fed hiking rate for the very first time in a decade. what does this mean for startups and the tech community? >> i think the number one thing they're thinking about is how it's going to affect the valuingations of some of the really sky-high startups you are seeing.

when investors can't get good returns, they look to alternative investments. that's meant a lot of money going overseas and into these funds -- emily: mutual funds, not hedge funds, right? >> right. and this inflates the valuations and this is what is leading to a lot, not all bay lot of these une i corns, billion-dollar prite startups we are seeing the emily: and stewart black thorn is somebody who raised a lot of money. he said it's not going to change anything for us. is that fair? >> i think so. companies like slack have been really smart about and stewart has been really open about what it's like to raise money in this environment. he is thinking for the long term and he and others have gotten this advice that this is going to come, so raise money now while you can. money buys you the time to

develop new products, raise your user numbers, and so for slack, they've been on top foster -- for the last year. they've raised a lot of money. so he's in a position to say that. emily: adam, any effect on apple? >> apple, not really. they do own a lot of government securities and that sort of thing as part of the cash that they have but i don't see this having a big impact materially on their business, no. emily: any startups in particular you think might feel it most? >> yeah. ats -- it's the unicorns. so many have been born recently. can he pending on who you ask there's anywhere between 120 and 150 companies valued at $1 billion or more and at least 50 approximate became unecorns in the last year. companies that investors think are overvalued are those i think are going to be hit the hardest.

emily: we'll be watching. ellen hewitt, thank you for joining us. coming up, we will get a status update on yahoo's most expensive acquisition. and if you like bloomberg news, you can now listen to us on the radio on the app, bloombergdom and on sirius west. ♪

emily: with all the pressure mounting on yo ooh -- yahoo and c.e.o. marase meyer, we thought we would like a look at her biggest absigs. tumbler. it seems like they have

depletted much of its potential financial 1r5u789 so has the biggest acquisition turned into symbol of their inability to oinvate? what has marase done with tumbler? >> that's a good question. she came in with this promise that yahoo was going to handle some of the financial in -- uncertainties around the product. rl how were they going to make money? two afyears later, haven't quite shown a clear answer to it. josh, who wrote our story on it, talked to a bunch of advertisers and they were like, some of the most bisque things you should be able to do with advertising, like trging specific demographics of people, you can't do with tumbler. emily: i spoke to the founder last year and talked about why he stided to sell hezz company

to marisa meyer. >> the conversation with her was a really fun one. this came at a time when we were looking for partners for a strategic investment so we were looking at raising money rather than having some investor come in and cut us a check, having someone we could lean on with content and resources ant distribution. there was a ton of stuff to be doing with yahoo but also with marisa just her vision of what she wanted to do with that company was really, really aligned with tumbler and where we were going next and what we were going to need. emily: positivity aside, it doesn't sound like the promise was delivered on. >> no. emily: do we know anything about tumbler's growth numbers since? >> yeah. to be fair if, they are growing still. they're up a pretty solid 80%

when you look at all the numbers aggregate and that helps to in the yahoo family where you go to the yahoo home page, maybe if you're in the midwest and then find your way to a tumbler page but they really missed the beat on some of, you know, around like mobile and apps. one of the stories, on the day that the company was acquired they were in like the top 200, i think 313 on the app store and they've never reached that position once since the acquisition and most times they've been out of the top 10 off. that's not good. you need to have a strong app presence today for a tech company. emily: when you look at all the acquisitions marisa meyer has made, which ones have worked? >> i mean, the takeaway from the story is that tummler actually was, sadly, one of the

better acquisitions. they haven't ule -- actually screwed it up, which says a lot about the performance of a yahoo-acquired company. they bought a company, flurry, that seems to be doing very well and is used bay -- by a lot of marketing firms to get data analytics and stuff like that. and it was a sizeable investment they made in snap chat which in some ways you could look at as a tumbler competitor which has just shot way past. emily: are we going to be talking every single day about whether yahoo is going to avoid a proxy fight or not? is marisa doing a good job? >> yeah, i think it's more chaos to come, unfortunately. tate company that does not seem to have a clear outline for how to fix itself or even to convey

what exactly the company is about. and now with the sort of like collapse of this alibaba spinoff plan it's like what do you do next? if you are marisa. emily: another year of yahoo drama. p glad you will be here to share it with us. mark milian of bloomberg news. coming up, imagine when -- if you could ask your espresso maker to book your hotel or schedule a deltha o'neal pointment. sound crazy? we'll show you how it works.

emily: turping now to artificial intelligence, are are and sound recognition echnology the briefly moving to voice recognition like siri. >> ok. hound, tell me petroni hotel in seattle, staying -- pet-friendly hotels in seattle for two nights with a -- >> showing hotels in seattle that are pet friendly and have a swimming pool the >> ok. hound, short -- sort by highest price but nothing over $300 and don't show any that don't have which fimente emily: pretty cool. thank you so much for joining us. i guess -- taug to me about who you guys think you are in the

landscape of siri and others? tech , we have some knowledge kal advantages. we can handle very complex queries. emily: how do do you that? >> we have a new approach. they usually under only parts of it, it works well with short keyword based queries but when you say show me hotels in san francisco for tomorrow, staying two nights and so on -- emily: right. how do you teach the phone to under those more complex questions? i mean even humans can't necessarily understand that. >> that's a good point. we to years working on this. it's called houndify, a platform for developers to create smart phone enabled

interfaces. could be an app on a phone, an appliance or anything that used content. emily: you say this is like siri but for any app? >> exactly. they multibase, and are able to adapt our platform. so we envision you will talk to negative round you. emily: as long as they're smart enabled. >> hound iffied. mily: hounded and ified. what's your position on the ethical issues surrounding i. -- a.i.? >> well, you can pick anything and do good things and bad things with it and i think a.i. is included. what we are focusing on is serving humans and making them more productive. we are focusing on though the things.

let's say you are a doctor looking at patients and the patient has a headache and stomache ache. you can ask a little bit of medical information, show me all the patients that have headache but not nausea and sort them among males 30 years old the we are trying to sort them but it could be used for bad intentions also. emily: why couldn't apple just make siri better and make things difficult for you? >> well, we didn't do this overnight. we had this vision are and i really thought world was going to change and we're going to talk to our computers and they'll talk back to us, so we spent 10 years building it. it's not something you can do quickly and you can't just throw resources at it. you can't throw 100 fizz i siverts to come up with something. sometimes up need to do things -- things the hard way and the right way.

emily: why now? why is now the right time to show this to the world? >> well, we are working on it for 10 years but we wanted it to be special and ready when we released it and we didn't want to do it when it wasn't ready. finally this year is the year we thought it's ready and people will like it and adopt it. emily: where do you think you will be in five years? >> we have a two-word mission, which is houndify everything the emily: and if you are doing something that's directly competing with apple, does that put i -- you in kind of a sticky situation with them? >> well, we see a lot of apps that are launched on i.o.s. and they continue to co-exist and users can choose which they want to use. that's a healthy ecosystem. emily: tell me how my life might be different if it seeds? -- zpheeds >> you wake up in the morning,

talking to your alarm clock, then you walk into the kitchen and ask the espresso man -- mb to take -- make coffee for you and are you get in your car and it will talk. everything will be smart and trod serving you. emily: are ok -- ok. prrnl sound hound, who wants to houndify everything. thank you for joining us on the show. that does it for this edition of "bloomberg west." have a wonderful weekend. we'll see you on monday. ♪ the only way to get better is to challenge yourself,

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it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. ♪ yvonne: here is the trailer for "joy." to rememberu something. a lot of times, people get nice things and i started thinking differently. we got here from hard work and humility. d