merrick garland for the supreme court. grassley and o'connell think it should be filled by the next president. in north korea, an american college student has been sentenced to 15 years hard labor for what the government called crimes against the country. he was accused of taking down a propaganda sign last month. the obama administration has ordered another round of sanctions against north korea. there is said to be in response to the countries so-called illicit nuclear missile test. there are recent sanctions that have been approved unanimously by the un security council. kim jong-un said his country would soon it a nuclear warhead and been left missiles, capable of carrying the warhead. in thelt, a new twist country's corruption investigation. the former president would join the current presidents chief of staff. he faces criminal charges, and joining the cabinet would make

it tougher to prosecute him. day,l news, 24 hours a powered by over 2400 journalists in 150 bureaus around the world, from the bloomberg news r.i.m., i am mark crumpton. ♪ emily: i am emily chang, and this is "bloomberg west." the fed a great hold steady, what it means for the private market. is almostoculus rift ready to shift. i speak to the ceo of the most anticipated vr headset. edison plunging after posting its annual report. we take a close look at what has investors worried. first, to our lead.

the u.s. federal reserve decided not to raise rates, setting a weaker outlook for global growth, as well as turmoil in the market. -- techentral banks stocks getting a boost. heading into the close on the fed's decision. here to look at what that means for the tax sector, i am joined by ramy inocencio and our editor. what does this mean for startups? i think venture capitalists and the startups are breathing a sigh of relief, now that they don't have to worry about interest rates affecting how much capital is allocated to , and they can go and borrow money, presumably at lower rates than they would if the fed were increasing rates across the board. how our markets reacting? the nasdaq rose the most, at .75%.

rise, asis initial they tried to digest it. around 2:30, they decided they were in the green, and never looked back. if you take a look at some of the biggest companies on the nasdaq and nasdaq 100, it was agreed across the board that apple, microsoft, and google, following that echo, not looking back. interesting, these were the top four gainers. the fifth him but he i want to talk about, amazon, it went the other way, strangely enough. they did have that strong rhythm. but in the last 15 minutes of trade, the news broke that apple actually signed a deal to be a customer for google's cloud platform, meaning it will rely

less on amazon's web services. this is according to crn. around $600 million going into go -- google. this is the second biggest pull out ofush -- amazon, about a month ago. emily: generally good and the public markets. but i wonder, we have seen companies raise so much money over the last several years area is there any concern about the managing their debt load? especially highly leveraged companies in this environment. proportion of a convertible debt these companies has -- have been raising has been rising. it is a concern as rates go higher. it is something the entire valley has been worrying about. emily: one stock that can't seem , it basicallyak

plunged by half. today, we see a downgrade. tell us about that. --ramy: linkedin falling by 5%, but you can see your today it is down by 51%. is at its lowest since february 16. it is putting its price target. some harsh words in this analysts note. basically, things you would not want to talk about. morgan stanley saying, why we were wrong, and what is changing. not, saying linkedin is likely to be as big as a platform as we had thought. it is slowing growth in talent solutions during that translates as revenue subscription. your customers are signing up.

linkedin had been looking at small and medium-sized enterprises but is hitting a wall with large enterprises. emily: i recently got a chance to sit with linkedin ceo jeff weiner, and we attacked this head-on. take a listen. >> i think it was a surprise. we were not expecting that response. when you look at the core elements of our business, they remain healthy. if you look at north american for our flagship recruiter products, it has remained consistent. our core updates, business solutions, still the fastest growing business we have to scale. post the launch of our reimagined flagship application on mobile, we have seen acceleration and engagement on both mobile and desktop. the core elements of the business remain healthy. emily: jeff weiner told me it is his job now to prove wall street wrong. me., thank you for joining

and mark, thank you as well. stop we are watching, sun edison it taking a dive after the company once again failed to release an annual report that would give investors a clear picture of what son edison liquidity position would look like. right now, there towering debt load is keeping investors up at night. cory johnson joins me now. how did they get into this position in the first place? cory: they borrow tons of money and an inability to generate cash flow. at least $3 billion in the last 12 months. they have not told us what happened in the last quarter. they were unable to report those cool results. not only can they not give us the numbers they have, they are not sure the numbers they have are correct. a great concern to investors. so much. has collapsed look at the description page in the bloomberg terminal.

you can see the market cap of the company, $67 million. it is more useful to look at the enterprise value of the company. it is not just a market capital of the stock, but it is the other stuff. thes the cash, and you have $11.7 billion of debt, and you get an internet i -- enterprise value of $13 billion. one of the things this shows you, all the different pieces of , that shows you all the individual pieces of trade associated with son edison. what you see, is that there is a lot of this. maybe even a greater concern. but the company is burning free cash flow. the company that wants to growing does not have access to that, this is the debt distribution chart. this shows you how much debt is coming in right now. over $1 billion coming in this year.

while some of this is revolving debt, some of this has to be paid. on thely had $2 billion balance sheet, they have big problems and can't go back on the market to borrow more money. all right, cory johnson, and new york thank you. a stock we will keep an eye on. the coming age of virtual reality has been buzzed about four years. but, the first sophisticated consumer devices finally hit the market. one headset has been scrutinized heavily as a highly anticipated launch, the oculus rift. conference, gaming i was able to try it for the very first time. >> let's go ahead and get it on. the right and left triggers operate the hand. look where you want to go. now take a look of. that is where you are going.

luckily, i am not afraid of heights. >> now let go of the other hand. one hand in front of the other. emily: oh, there is no more grip. i am dying. >> there you go. first time in, what did you think? emily: it was great. i got into it. i feel like i physically exerted myself. my hands are tired and i am out of breath. can i just tell you, i was exhausted after that for several hours? a really felt like i was climbing that wall. reads --brendan he iribe joins me ahead. ♪

emily: after a 2 billion dollar acquisition by facebook, and years of anticipation, oculus's high and headset, the rift, is less than two weeks away from hitting the market. and id the time is right, caught up with them to ask how mark zuckerberg has shaped to the product development. these are big services, with hundreds of millions of people on each. and there is a lot of code there. to be able to see this menu of codes and features, to be able to pick and choose and put that together for oculus, has enabled us to move a lot faster. emily: how has the marriage of facebook been so far? brendan: we have gone from

shaking hands with mark, too many many hundreds of people into two years. we have relocated onto facebook campus. so the food has improved. , itet free ice cream very really has been great. are under au guys tremendous amount of pressure, expectations has been high. that can drain any marriage. have you been dealing with that? when we were acquired, that woke everybody up. we knew what would happen, it was a moment where mark got up and said vr is the next platform. in the world to know. more than we were just pioneering in as a starter. this is what we needed. it is the best thing for vr, because ultimately, there has to be lots to do, and an ecosystem of content. the more people that invest in

vr, the better it will be. emily: how invested is mark, personally? brendan: given how many breakthroughs will come through for oculus and in the vr space, mark is really dialed into what we are doing. he says whenever a president visits, he takes them into oculus visits and shows them the latest demo. it really is the next big platform. has a successful, mature platform on the mobile site with facebook, being able to look at what his next is really exciting and engaging. emily: when you think that, if you had not sold to facebook, would this be happening? what would you be seeing now? brendan: we would still be releasing now, but not at the quality level it is very and it would not have this content lineup. and today, it is all about

games. there are over 30 games that launch. i think 41 games here today, and dozens more coming in the first few months. and kind of momentum breadth of content would not be we were not partnered up with facebook. we are in a much better place because of the partnership. emily: do you everything, what if we stay independent, how different things would be? brendan: well, a lot of things cross your mind. there are a lot of moments when you look at each other as a team and say, i am so glad we are here at the. really. it happened time and time again. emily: why? is moving quickly, a lot of competitors into the space. there is a need for content and the ecosystem needs a lot of support. to build the hardware takes a lot of people. it adds up to being really happy we are a facebook and have this kind of support. the competition

moves quickly, whether it is sony or samsung because of the facebook acquisition? brendan: absolutely. emily: did a kick everyone else into high gear? brendan: yes, it woke a lot of people up. when the ceo of a multibillion dollar company gets up and says vr is the next computing platform, one of the biggest, most successful platform is the nextys vr platform, it gets everyone on board and inspired to go out there. iribe oculus ceo brendan there. but looking at the competition that may be closing in on oculus in a race to create then it -- winning vr platform. ♪

emily: now, back to virtual reality. shares of sony flights after the company revealed he details of

it goes on rivals, sale in october for three and a $99, significantly less than its competitors. and does not require a powerful pc to run, and more than 50 games available for that one by the end of the year. while oculus has the benefit of a head start against sony, they will begin shipping in three weeks. given the encroaching competition, i asked brendan iribe what sets wrist apart. brendan: rift focuses on high quality vr. sure itware, making feels like a consumer product, looks like a consumer product. at the same time, on the content and software. making sure there are real games. which is what we pull together. emily: a sony executive recently said that playstation vr may not be as high quality as rift, but it is for every day use and is affordable. as a complement or a day?

brendan: i think it is a complement. he'd knowledge is that oculus rift will be the best experience. by enthusiasts. especially hard-core gamers. having the best is a great place to be. how long will it take activision to work on vr games? are they waiting too long? will geti think they into the space pretty soon. it is different than mobile. themselves,nvesting they went and hired big companies pretty late once mobile was an established ecosystem. inside the company, the developers are dreaming about vr. gamesave been making flat on monitors and screens whether it is tvs or cell phones for a few decades. and they have always wanted to

make virtual reality games. and now they can. emily: i am wondering, is there a brain drain happening? why wouldn't everyone want to work on this? brendan: i think they do. and when it is big companies, they can establish that and offer long-term great position to lead vr and help pioneer it and be fully empowered to make something incredible. we have seen that happened at oculus. ceo recentlyd a who said we are looking at it. is that a mistake? brendan: remember, we have not shifted yet. it will happen in two weeks. it is normal that a lot of big ceos will be looking at it, but if no one has a shift to the consumer product yet, people are only now taking notice. people often forget about it.

like when facebook acquired oculus, things must have shifted. we dug in and build an incredible consumer product which shipped in a couple weeks. brendan: -- the ceo of oculus rift, brendan iribe. you can check out the interview on our website. you have spent hours yourself playing around in virtual reality. at the interview with brendan, and you are so excited afterwards because he felt that he revealed part of a broader master plan between oculus and facebook. what were the highlights for you? has been building over the last couple of years, from the kickstarter campaign, to facebook acquisition. the whole thing is getting a following. out,ing to see the product we have compiled the number

coming out, and it is pretty solid. it is comparable to the xbox launch. is the idearesting, of the computing shift. the next computing platform. it might take some time. in the next couple years, it will be more targeted toward .amers, like ps for sony and facebook having the upper hand with the developers and content they have. but the adoption need the whole ecosystem to eat -- to evolve. what did mark zuckerberg really , avatarscial networks and stuff like that. in a gaming environment, they could look at each other, work together, and achieve something in a videogame environment. maybe that transforms into a working social network. a lot of exciting stuff in the

pipeline. but it will initially be focused on gamers. --es: you have to have a very powerful pc to use this, and it is not compatible with a mac right now. this at and about xbox event whether he saw -- he said it is up to apple. if they ever really think the computer, we will do it. the processing power required is a lot. neededmates, three times for a standard pc game. the processing power is not really there in the most common mike cole. ,f you look at graphic cards running on a fairly high-end card. average,to spend on

$1400 for the pc, the headset, everything. pricing is just one of the elements here. there is still the screen door effect. the ecosystem needs to evolve a lot more on processing power, bandwidth, pricing. that, i did ask about comment. mean that they don't have a computer that is compatible with our headset yet. our vr expert, thank you very much. emily: we will be back with more of "bloomberg west," after this break. ♪

>> i am more front and and you are watching bloomberg west. let's begin with a check of your bloomberg first word news. nominatedent today

washington, d.c. federal appeals for chief judge merrick garland to fill the vacancy on the supreme court. the president said naming a successor transcends political posturing. >> it's something to make it simply an extension of our divided politics. the squabbling going on in the news every day. betrayal of our best traditions. >> senate republicans have promised to block anyone the president should nominate. mcconnelleader mitch wasted no time delivering his response on the senate floor. >> the senate will continue to observe the rules so that the american people have a voice in the american -- in this momentous decision.

the american people may well elect someone who decides to nominate judge garland. the next president may also numb it 70 very different. either way our view is this. give the people of voice and filling this vacancy. >> in 1992, joe biden argued that george h w bush should delay his election. america's military will be pushed to the limit in a ground war against a superpower like china or russia. he told lawmakers on capitol hill that years of combat in iraq and afghanistan restricted budget and troop cuts and they have taken a heavy toll. settled more refugees. they seek to try to limit the number of refugees coming to

europe. facing a challenge. it's solidarity and core values are under pressure. mostcording to the agency, travel to europe through the greek islands from nearby turkey, a number that talked one million. mobile news powered by our 2400 journalists and more than 150 news bureaus from around the world. i am mark crumpton. >> the former israeli prime minister is getting into tech. he is chairman of an israeli

startup reporting homeland security. it is part of the mobile emergency act which allows anyone in israel report emergency by the press of a button. we caught up with the former israeli prime minister. >> it's a new application that is 911 instagram. there withd you are the red cross or the firefighters were the police. streaming video and locations, including -- theuts dramatically confusion of the people reporting and provides a much faster response time. i spent up to a week sometimes

with security authorities in new york. minutes, the security services did not respond because they were overwhelmed with reports but no one understood what there was. showed theport they people were killing the audience in the theater. it would cut through the decision-making and lead to an operation. presumably your name -- >> i was in by the answers and .he depths of their technology the system is 10 times more the one they try

to impose on the providers of services. using the deep learning. show a veryduct to good advance contacts. live tv stations to have your of video giving a huge advantage of them. 50,000 people all around the world in nigeria no one to provide their employees with a pushy network that in one

will notify the networks -- softwaree adapted with to answer all of these challenges. >> many are wondering what compels a former prime minister of his own fortune into a startup when you could just be going on public speaking to her sort retiring and taking life >> first of all, i don't invest in anything. invested another startup that deals with deep learning and one .n cyber security pt which isthe a the more advanced kind of

attacks. i deal with things that i understand. expectation to have success than others. emily: that was my conversation with the former israeli prime minister. i started by asking my next guest why he chose to engage with this mission teaching kids how to engage with their own is this is keeping the more excited about staying in school and learning. >> when i was a kid, my parents were both social workers. i never met an entrepreneur growing up. even myself, sometimes i was not interested in learning. but i loved art and i went to

art school. it became a conduit to me for creating things. emily: would you encourage them to stay in school? >> i would definitely recommend the stay in high school and recommend they go through college. in hindsight, i am glad i crunch through -- went through college but have some friends who have taken the fast-track. i think extracurricular activities and hobbies -- i learned more in high school and college outside the classroom. when you were a young kid, what did that mean to you? entrepreneur? >> i don't know if i ever heard the word entrepreneur. there were extremes. like bob's and bob's pizza. i did not want pizza company. i number that i loved walt disney did not think of him as enough for newer. entrepreneur.s an he was a mythical figure.

i thought i would work in a comic book company or something, but nobody told me about startup companies. i never even heard the word. my fullhat was .nterview now to m&a in the chip industry. the talks are ongoing and may result in a deal. if the companies agree to terms, md maybemay -- a incorporating certain designs into its chips. they have been competitors for many years. movieyou pay to watch a still in theaters from the comfort of your own home? some people would and competition is heating up.

♪

emily: a story that we are watching. bmw with a big push into electric cars with self driving features. harold huger announced a car called the inext. it will try the itself, link to the cloud and interact with passengers but all of that will come at a cost and bmw will largely fund it with gas guzzlers. is it time for a reboot in film distribution?

the screening room founded by sean parker is said to be pushing that idea. it could be as cheap as $50 to rent a movie in your own home that is still in theaters. they would need to purchase a set top box to get access to the first but this is up the company to try to disrupt hollywood. offers certain films but you have to buy the hardware. joining me now is the ceo of prima cinema. what do you think about his screening room plan? will it work? >> you know everything that i know about this so i wish i could tell you that had magical information that you don't. i will tell you that from my perspective, what really has to

thisn when one talks about market is the creation of additional value not the disruption. create have done is additional value in the value chain itself so that we have the ability to preserve everyone who is in the existing value chain and not worry about how they will be affected and provide additional revenue to the studios. emily: the price point is a huge difference here. whatever he is working on the toce will be $150 compared $35,000. what does that mean for your business? >> there are two things. when you look at how the studios have made revenue over the past 10 years, the most stable source of revenue has been theatrical betweention and that is

$10 billion-$13 billion per year. if you're looking at a service that is likely a $150 setup that seems as though it will attract a great number of people who would otherwise be going to the theater. if you look at the statement from today given to variety by the president of nato, or the ceo, ic no by regal's think they face hurdles. emily: you do have huge filmmakers like peter jackson who are backing this. he recently said that a screening room is carefully designed to capture an audience that does not currently go to the cinema and they will expand the audience from the movie not shifted from cinema to living room and it does not play the studio against theater owner but it respects both.

peter jackson is a filmmaker so focused on creating amazing cinematic experiences. you would think if anyone were against it, it would be him. >> what i will say is that peter jackson is a very take name. the names we come to market with our names like universal come a paramount and lions gate. people who have come into the market that prima is trying to create with the understanding that what you just said could not possibly happen. i think even if your targeting something at a price point of $150, targeted at a specific segment, i think that segment bleeds and you cannot keep it from bleeding to other segments. from our standpoint it is problematic. emily: talk to me about how the market for home theaters is developing from netflix to piracy and how it is impacting your business.

yearsspent the first 2.5 talking to movie studios about piracy and about preserving all of the value throughout the entire chain. this is important because we are the only people in the world that if been approved by every studio for antipiracy technology. we literally provide a rock solid basis. it is the most secure distribution for film distribution in the world. believet standpoint, we that when you have the crown jewels of the entertainment industries market, you have to think about how you affect ancillary and downstream windows as well and the first thing you have to do is protect that film and that is something we do better than anyone. emily: how big is your business? >> it is growing.

we grew 60% year-over-year. hopefully in the next year we 150% and another 75 to hopefully in another three years we will be large enough to be considered one of the largest exhibitors in the world. we like to say that prima cinema is not home theater, but a theater in your home. emily: thank you for joining us. on turnnkey is working around. they are expanding internationally and opening a new office in australia. spoke with bloomberg about his outlook for the business and when the company might go public. >> the copy has a very cash generative business model and we are fortunate to be in a leadership position in our state

and we feel that opens a whole host of opportunities globally. we do not have a time frame, that is not a milestone or finish line, it's just another event in the capital raising process. emily: we hear from a major silicon valley entrepreneur and what she hopes will be the next big social media platform and tomorrow to not miss alan greenspan on bloomberg or bloomberg west, next.

emily: shifting gears to mighty fell -- mighty bell. they already boast an impressive user base including the bill and melinda kate's foundation and lean in.

with me now to discuss the potential of niche social platforms, the founder and ceo am a thank you for joining us. great to see mighty bell getting traction. you sell the software and it is a big company. what is the goal? >> our goal and something we launched a few ekes ago is to make it available to everybody. our goal is to create a new breed of community entrepreneurs. so people who can create community and business by bringing interesting people together who would not otherwise meet and to bring them together around an interest, specialty and shared profession, life diagnosisconditioned and passion. we are already seeing such an interesting mix of networks on a platform. we have the largest network of craft hairdressers.

it was started by two master instructors in new york and they just moved over to mighty bell as they are passionate with how do they bring their 10,000 craft addresses -- hairdressers together to go deeper. facebook fans000 but where two people come together to talk just to? with mark cofounded andreessen and disorder of built on a similar premise and you have more than a decade of experience working on social networking. there is a great wired piece about you which is that jeannie knows what it is like to helm an alien unicorn. what are you doing differently and better?

with ning was to enable niche networks, and with mighty bill we are enabling them for the new era. you have a supercomputer in your pocket now and with that we cannot connect people within these networks so as they get bigger and bigger they still feel intimate and we are able to connect the most relevant people to each other. about we are talking leaving rates unchanged, what does that mean for you? how am a huge believer in, do we expand and make more inclusive who gets to be a technology entrepreneur. i think this whole model of go and raise tens of hundreds of millions of dollars will never go away. it's going to be available to fewer people, not more and more.

so what i am passionate about, and what my team is passionate we take thew do things that have been created and as more people join it not only gets easier to manage but also more valuable to every member who joins. that is facebook, instagram, airbnb, ebay -- the list goes on and on. from our perspective it is about how do we bring that to anyone who has a good idea even if it don't have access to capital. emily: how is it changing how you run your business? >> we have always thought about revenue and it has been one of the things most important us to create a platform that people can build businesses on. that is a lot easier to do on revenue then venture capital money. .mily: thank you for joining us

great to have you. that does it for this edition of bloomberg west. tomorrow, do not miss my full interview with brian chesky. excitement builds around the playstation vr. that is all today from san francisco. ♪

charlie:biographers of people we shaped this country, not just politicians, but business people as well. what brought you to hamilton? >> it seems comical now but at the time i shouldn't writing on him he was the neglected and misunderstood founding father who seemed to be fading into historical up security which