>> let's begin with a check of your news. belgium is under its highest terror threat ever following bombings at the brussels airport and a subway station that left over 30 feet dead and 200 30's wounded. authorities released video of three men pushing luggage carts through the airport. two men were killed. the third man remains at large. 19 people have been arrested following monday's attack on the european union mission in the capital of molly. -- mali.

ofis the latest in a series assaults on hotels in west africa. malaysian officials say debris that may be part of a plane engine has been found on the coast of south africa. disappears two years ago. for the first time since the , ith of antonin scalia ended in a tie. global news, 24 hours a day powered by our 2400 journalists and 150 news bureaus around the world. i'm mark crumpton. bloomberg west to his next.

emily: i'm emily chang and this is "bloomberg west." belgium reels from attacks in brussels. and after postponing its hearing against apple, we dig into just how the guy plans to unlock the iphone in question. and a dough before ahead with its transition to the cloud. we will talk to the ceo about where the company is headed next. first to hourly -- the world is rocked by yet another terrorist attack. this time, brussels is the target. three coordinated last killed 31 people, deepening the sense of crisis. elgin remains on the highest terror alert and islamic militants have claimed responsibility. the u.s. government is stepping up security measures and president obama pledged to do whatever is necessary to help ring the perpetrators to justice.

some of the key questions we are exploring -- does today's attack further expose the limitations of europe's security services and what technology can be used to improve national security and surveillance efforts, not just in europe but in the united states. joining us from chicago is a digital forensic specialist who has trained u.s. law enforcement officials at the ei and nsa. -- the cia and nsa. and joining us is a mentor packet. thank you for joining us. as someone who worked at the cia, the pentagon and the department of state, do you agree these attacks expose the limitations of law enforcement efforts in a european capital that was already on high alert for terror? guest: thank you for the question. i think there's always limitations and always lessons to be learned in a kind of

attack or any occurrence like this or any tragedy like this. on the other hand, there are opportunities to figure out ways to prevent the next attack and that we can work closely together. we have improved our coordination internally and our ability to deal with these sorts of attacks. we have stepped up our efforts to work with our allies as well. we murder -- we work more closely with the europeans and we have in the past but more needs to be done. we have to hope the europeans in general and belgians in particular can reach out. we have the best experts going and i think making better use of that and coordinating better is something that needs to be done. you can look at this as something that offers limitations or that points out limitations or look at it as an opportunity that we need to do more to make sure this doesn't happen again. emily: you help train fbi and

law enforcement officers. what does it take to surveillance someone in the world of technology question mark you have the going dark problem in paris and you have more technology at your fingertips than ever before to track these people down. guest: it is a big problem alan goes far beyond the old wiretapping we know from the landline phones. it involves trying to pull communications out of devices that value top level encryption. as we see with san bernardino another case is similar to it, federal law enforcement agencies and law enforcement agencies around the world have to literally get these devices in their hands to try to determine what kind of communications they were having.

it's almost like finding a needle in the haystack given the technology we have at our fingertips. emily: it is such an interesting time with this hearing between apple and the f ei postponed. this issue of privacy versus security, how do you think this reflects on the original debate we have been having in the united states over whether apple should help? guest: certainly the more terrorism there is, the harder it is for any company to resist the man's -- resist the demands of security offenders. it is a complex set of issues that come into play and there are strong arguments why apple should take the stance they are taking. but there's no question as terrorism continues, people get more and more scared and the pressures increase for everybody

to line up behind the government to supposedly man barricades, so to speak. i think there's all kinds of ways to use technology more intelligently as time goes on and this threat becomes more routine, which i'm sad to say, i think it will be. guest: i don't think it's all about technology. i think a lot of it has to do with shoe level -- shoe leather community policing where it may be a little more vulnerable to these terrorists who may use these communities as a place to hide. i think it is connecting to these communities and doing old-fashioned work where you connect with the community and build bonds of trust but doesn't need to involve all the technology we have to us today. guest: i do agree with what has been said but it is highlighting the need for a partnership between technology manufacturers and the federal government.

as this continues, this need will continue to grow for law enforcement agencies to have to get at this data. if it is encrypted, they're going to work with these manufacturers to decrypt them so they can discover these apps. emily: i was speaking with general keith alexander, former head of the nsa and he talked about his concern that another attack on europe could be on the horizon. listen to what he had to say. >> i think we will see significant terrorist events. it easier for terrorists to get

there. i think the travel programs have helped a great deal. i don't think that is sufficient. i don't think we will see a number of jihadist and lone wolf type things and that will bring us back to the discussion on civil liberties and security. so why do i say solve that? right now, we have an opportunity to do this in a nonemotional manner. we should take that opportunity and solve these problems to the best of our abilities. it won't be perfect get reasonable people to the table. emily: would you say the united states is just as susceptible to more attacks like this as europe? is there any difference? guest: i wouldn't say we are more or less but we have had lone wolf attacks in the states

as they have in europe. the key here is what general alexander said, it's just finding the right balance between protecting our rights. if we don't protect our rights, the terrorists have won. making sure lawn officials -- law enforcement officials have the ability to do the job so they can do what they want to. the key is working together and to do it before we are in a crisis situation where we cannot be quite as rational about it. emily: david kirkpatrick is sticking with a. gentlemen, thank you for joining us. a story we are watching -- check out shares of imagination technology. they spiked as much as 16% trading on a report that apple may be in talks to buy the

company. apple responded saying they hello -- they held parliamentary takeover talks and that sent the shares right back down. it is the latest twist in a turbulent year for the company. its ceos to down in february after forecasting a full year loss in the company/350 jobs. apple owns or gay percent of imagination and uses its graphic processing unit in iphones and ipads. coming up, the justice department says it might use a third party to unlock the iphone used by the san bernardino gunman. the method that could be used to crack the code when we return. ♪

emily: the fbi backing down it sent off with apple for now

after revealing a third party might be able to unlock the iphone without the help of apple itself. possible methods have been streaming and since the news broke and our next guest has a strategy in mind. he joins us along with our guest host for the hour, david patrick. you and i talked about this and you said there are other ways to do this before this happened. so who could possibly do this for the fbi and how? michael: there are a ton of different ways they could be doing this but one stands out as possible. they asked for two weeks to test and verify this theory of how they could unlock this phone. that does not leave a lot of options. they are not going to use a destructive method or experimental method. i think what they're going to uses use is what the tech community has been talking about witches mirroring the memory chip to replay it. think of it like cheating at a video game.

when you die, you restore a saved game. it's the same thing except in so saving the game, you are restoring back to before you tried 10 10 codes. emily: who could be helping them? there are suggestions that it could be outside governments. michael: it's almost certainly not the government itself. could it be an outside contractor from the u.s.? maybe. but even that it came in sunday evening, my personal guess is it is probably a foreign contractor or foreign entity because it would have been monday morning their time, which seems to make sense. although i have no insider knowledge. these are purely my suspicions. emily: it certainly seems that this undermines the government's argument against apple and almost let's apple off the hook. david: i find it fascinating to speculate who it might be. i think it is possible it could

be a foreign government. there are plenty of entities that want to win brownie points and gain negotiating leverage and sadly i believe especially when it comes to earlier technology, many governments we often don't agree with already have the technology to get things done that we may not be able to do. certainly the chinese government comes to mind. i don't know how that negotiation might sound but it doesn't seem inconceivable that there could be interesting diplomatic overtures going on around this. emily: i am just getting headlines from "the guardian, saying the government has classified these tests. it is so promising that they have classified what they are trying to do and have assured it will not damage or a race the data. they are trying to ensure that

doesn't happen. does that give you additional clues? michael: maybe they are trying to protect the method itself or maybe they are working with a government a don't want to say they are working with. or maybe it is not a government. maybe it is a rogue chinese group or russian group or other group the u.s. does not want to put in the new york times or bloomberg and say we are going to work with this group we have historically not interacted with. emily: if they find other vulnerabilities, are they required to tell apple? michael: that's a good question. we know based on previous leaks, the nsa and other agencies haven't in the past. they are not alone. there's a market phone -- market apple has yet to patch. the question is, is the fbi capable of finding those or using those in such a way apple won't find out anyway? i don't think it prevents the dialogue from occurring.

i think it staves off for a little while. all of this means they're going to wait until the next leg time. emily: obviously, we will follow this with aided breath. thank you so much for sharing your expertise with us. david kirkpatrick, you are with me for the hour. up next, we stay in the cloud and speak to the adobe ceo about the company's biggest area of this the on products like photoshop. we had to las vegas, next. ♪

emily: business analytics company dome of says it has raised $131 million from investors. the latest infusion boosts its funding to almost $590 million and holds its valuation study by

$2 billion. they compete with good data and competing with information about cash sales over the cloud. adobe shares remain higher after the software giant possibly this report, beating estimates for the fourth quarter and boosting their estimates for the year. all of this perhaps showing their multi-year effort to shift from the desktop to the cloud is paying off. joining me with more on the health of adobe is someone who should know, the ceo, shantanu narayen. great to have you on the show. i want to start with earnings because you reported a few days ago and there was a lot of concern around enterprise software companies and economic uncertainty. what do you think your latest quarterly report shows? shantanu: it is a pleasure to be back on your show, emily. when you look at q1, we had a strong quarter across the board. the creative cloud, the adobe marketing cloud did well. we have successfully re--- reimagined the creative process

by moving the business to the cloud and in the marketing business, we had a very strong quarter. i think what is driving it is every single business around the world is talking about the impact of each bill and how they have to put the customer front and center. our products and technology enables us to make that transformation and that is voting well for adobe. emily: you are close to completing this shift from subscription to license-based sales. in what areas of the business are you seeing the most strength? shantanu: the creative, i would say through the heart of the transition, that is why we have talked about

in the latest earnings how the creative is this is going to grow greater than 20% this year. that is from the peak. i think both of those businesses are fueling their growth. it is all about the mobile applications and video being consumed on mobile devices. on marketing, it is about re-platforming peoples core infrastructure to deal with the demand of it shall. emily: longer-term, what are the areas of competition you are worried about? we've been talking about andy and his famous line only the paranoid survive. what are you paranoid about? shantanu: we are paranoid like any other company technology is going to disrupt the entire industry. the good news for adobe's we have always been a product company in our dna and as long as we continue to innovate, we have transformed our business is by focusing on the customers. while you are always looking for

that innovative startup and individuals who have a great idea, we have been continuing to innovate in the company and will continue to do so. emily: you are in las vegas where you are hosting a digital conference which may be one of the lesser-known areas of your business. why is marketing a big focus for adobe? shantanu: we have always been about art. if you look at our products like photoshop, there is not a piece of communication out there whether it is a website or video or mobile application that didn't have some use of adobe software. a few years ago, we recognize the world was moving to read plot form their web infrastructure and every

business had to put the customers digital journey front and center. we recognized if we could bring together what we had done with art with the science of marketing, we thought that would be a unique opportunity. supply and hr had been automated but no one was targeting the chief digital officer or marketing officer with technology. we are the undisputed leader in that category. it continues to grow north of 20%. i think we were first to recognize this untapped opportunity that we think is going to be like a $25 billion addressable opportunity. emily: you have announced a new data sharing co-op where you can track consumers across multiple touch points. how are you planning to protect privacy -- this is a huge thing right now. as our data shifts to the cloud, how do you protect us? shantanu: you are absolutely

right and adobe has been a pioneer to make sure we attacked data and lead the charge on what needs to happen with privacy in data. we were ranked very highly is one of the companies that champion that. with respect to the data co-op specifically, the whole idea how can companies target people rather than target devices -- every one of us carries multiple devices. so what we are attempting to do is make sure we can identify how an individual might have multiple devices and target them in a more consistent and reliable way. data privacy and confidentiality is front and center. adobe collects this data on behalf of our customers and we will continue to champion it so you get the personalized experience you demand from any website you are visiting. emily: adobe ceo, shantanu

narayen, live from las vegas. coming up some we will remember one of silicon valley's greatest. ♪

>> most asian stocks are following today. killedated explosions people during the rush hour in the belgian capital. european leaders have promised a united front. steppe stepped up at airports around the european union. areas entering check in

may create new security vulnerabilities. credit suisse may announce cutbacks as soon as today. it is one of a number of banks struggling. those are the headlines from bloomberg news. let's get the latest from the markets. >> thank you. japan is coming back from its lunch break. hong kong has 30 minutes left. the rest of asia continues as usual. ofs paints a big picture what is happening or not happening in the market. we saw a spike yesterday on the reaction to the attacks in brussels. we are back down.

that is the safe haven. the douche in tunisia climb, thatnues to relation has gone down. argue risk off, not very much. it is very thin. 30-40% lighter in hong kong and japan. asia is looking like this. we're down a fourth and fifth on the regional benchmark. let's see what happens here. you have travel and leisure. like utilities are on the way out as well. the rest of asia seeing weakness. down across markets this is how we look. there is a lot of flow.

at the offices of japan, down a 10th of 1%. shanghai entering its lunch break. we will see what happens later on. emily: the tech world is mourning the death of intel cofounder andy grove. he played a central role in the semiconductor industry on which today's internet age was billed. he was a mentor to much of silicon valley's leadership including larry ellison, the late steve jobs and mark zuckerberg, all turning to him for advice. joining me by phone is a man who worked alongside him personally, the retired ceo of intel. you personally took the reins rum andy when you became ceo. i wonder what impact he had on you personally? guest: i worked with andy for about 35 years and greatly respect did his wisdom, strategic thought and how

straightforward he was. i think he was the most direct human being i've met on the face of the year. he always had a great strategic idea of what to do next. emily: intel was known as the best managed company, yet he was also known as a roof as leader. yet people still followed him. what were the hallmarks of his style? craig: i don't think ruthless is the right word. just practicing constructive confrontation, which is one of those intel is words. you always knew where he was coming from. he would not tolerate shoddy thinking or shallow thinking. he wanted every strategy well thought out and well considered. he didn't mind challenging anyone in the company or anyone in the industry for that matter. emily: what was it like trying to fill his big shoes and would

he continued to try to influence you when you are the ceo and he wasn't? craig: intel has a tremendous history of leaders in the industry. following those three is a daunting task for anyone, but i worked very closely with andy and a consultant basis. after he left the ceo position, i followed him and he was respectful of the decisions i made. he was a wonderful mentor and didn't overstep or overreach. he respected the next generation of management coming into play. emily: young ceos of today revere andy grove. his book about management is like the bible. do you think his leadership style survives generations or 10 other styles the just as successful? craig: there's not one way to manage a company. andy imprinted his style into

the culture of intel and the company goes to great pains to indoctrinate all the new hires into that cultural style where strategic thought is important, constructive confrontation, running the indications up and down the company. the lowest level employee at intel feels free to contact the ceo anytime with an idea. those were all things andy put into play and are all alive and well. emily: craig barrett, former

intel chairman and ceo. i appreciate you sharing your perspective and stories with us today. thank you. we also's oh with then horowitz of andreessen harlots who had his own special relationship with andy grove. he was a beloved mentor and teacher. we began talking about his role shaping the silicon valley we know today. guest: not only did he build the foundational company and the microprocessor -- intel was in the memory business, usually that is it, once you get to 13 years and he faced incredibly brutal competition from the japanese, including subsidies from the japanese government which forced him to switch the business that late in his life to microprocessors. something he thought might be a big market that time was tiny. as a result, the u.s. and that

being the center of the microprocessing market and the center of the pc industry which led us to be the center of the internet. he was the foundation for the u.s. leadership in technology. so that was a really big thing. beyond that, he was the cultural foundation of silicon valley in that his leadership in turning around once he achieved what he did and making sure other people knew how to do it was unprecedented and no one has done it as well since, but we have all lived off it and it has made every company that has been built since then followed much better. emily: that leads me to my next question -- the idea of a turnaround is elusive to most egg tech companies out there, perhaps only apple truly turning

it self around. now we see yahoo!, ibm, going through very difficult times. what do you think andy's advice would he or what would it have an in those final months? guest: there are probably some things he said that i shouldn't share. but i will say this -- the thing andy and steve jobs had in common was they had the courage to take the company in a direction that nobody at the time thought was a good idea. what you see a lot of leadership now is considered more followership. what do the analysts think are a good idea and so forth. if you look at what steve jobs did with apple, no analysts, nobody reported on it, nobody was an armchair strategists would have sent either of them in the direction that they took, but they did the work and new with the right direction was and they were ok whatever happened to them. they were ok doing what they believed was right and that

defined andy as a leader. the thing people who follow him takeaway is the courage and determination to do what is right. emily: it seems like so many people want to be entrepreneurs and come to silicon valley. what was his take on young entreprenes? some who may be called overly arrogant or naïve and what lessons should they take from andy grove? guest: andy continued to believe in people, even the young people

considered arrogant. he spent time with a lot of young ceos and if you look at his career and what he has done with the company, i think you can see mark zuckerberg learned a lot from andy. particularly the importance of giving back. if i could characterize andy's career, it was so influenced by how grateful he was that this country took cam man as a refugee at 18 years old, he had nothing. he came over on a boat and got a few dollars from us and we let him be a citizen. he never ever stopped trying to repay that and repaid it forward to all of us. that level of gratitude and belief in humanity is what we all try to take from it.

emily: ben horowitz, cofounder of andreessen horowitz speaking about the death of andy grove. now with me to discuss is our intel reporter who met andy many times. one of the things mentioned at the end there was how he became this way. how did he become so great and mark -- become so great? guest: he wrote a book about his process and growing up in europe during the war and being jewish, having what happened to his family when the nazis occupied hungary and when it was bought over by the soviets and how his family were persecuted and how he had to escape. emily: as a reporter, you met him many times. what was he like? guest: scary. inspiring, but scary. everyone talked about his intellectual honesty and his love of the truth. you couldn't really have this

flattering conversation with him. he wasn't interested in his own celebrity. all he cared about was getting to the truth and he would push people's buttons until he got what he felt was useful out of them. emily: david kirkpatrick is still with me. i'm sure you have your own stories about andy having covered silicon valley for so many years. david: listening to always wonderful comments, the thing that hasn't been mentioned as he played a key role in building the ecosystem that is silicon valley now. this complex relationship between microsoft and intel the lead to the incredible success of the pc, which he was one of the great champions of. bill gates is no pushover and andy was a formidable match for him. i think was necessary in those

years that oath companies were led by superstrong, super intelligent, rational, but tasty leaders who wanted to win and wanted to push each other around but knew they had to win together. he wasn't mean, but he was very gruff and straightforward and tough. but incredibly nuanced thinker. there are so many wonderful things about him. he was generous and that may not have come through the other comments. he took time and got to know me and gave pointers of what he thought i have to think about. emily: your profile of andy opens with this amazing and it showed about a conversation with the jobs and larry ellison. guest: this was that they went to his house on his birthday to celebrate and they both thought that they would tell him he was the only man in silicon valley that they could ever work for in his response was he would not have hired either of them. he told them they were flaky.

david: that sounds very much like andy. he was not going to sugarcoat anything but he wasn't mean. he just told it like it was. you had to be braced for unpalatable truth when you hung around him. but he wasn't going to mess around her waist or time and he wanted to make progress and make a great industry. he was ultimately a great american who wanted to build up the country as well. emily: david kirkpatrick who has been covering silicon valley for many years. thank you. ian king, thank you. great to have your perspective as well. another startup is cutting back -- sock dock will terminate 5% of its workforce or 33 positions as the ceo shifts from smaller physician practices to large health care organizations. four months ago, the cofounder took the helm as ceo of the doctor appointment booking

company and a slew of firing has hit technology startups september with more than a thousand positions eliminated. coming up, shot a five -- shopify may be part of an 8 -- maybe part of a partnership. ♪ emily: shopify is said to be on a short list of acquisitions

emily: shopify is said to be on a short list of acquisitions from alphabet. those reports are not stopping the canadian company from expanding partnerships, announcing its expanding the number of platforms it can sell. they have partnered with giants like amazon, facebook and

twitter. here with me now is the ceo, here in san francisco. thank you for joining us. let's start with the partnership and talk about facebook. how is that partnership going? guest: it is going very well. we had this idea of let's get volume in more places and give people a place where they can show prices and buy things directly. we have great harder ships and this is just a continuation of this now. emily: facebook has tried e-commerce before and it has always is. do people really want to shop on facebook?

guest: when you think about it, facebook is advertising and sells products. it is taking advantage of identity and they have the credit card is but has on file. it gives a competitive experience for people shopping. emily: tell me how much in terms of sales have been generated for shopify by the amazon partnership? guest: it has been mostly about their web services business. it has been a great partnership and we have been able to have payments directly for amazon and the ability to have hundreds of houses of shoppers directly into the amazon marketplace. emily: you have partnerships with amazon and facebook, what about? what have your talks with google been like? guest: i know it is hard to comment on this. emily: let's talk about the elephant in the room.

they have their own efforts and shopping as well. guest: i cannot comment. emily: do you wonder about google as a competitor? do you think about it? guest: google and everyone else is finally taking e-commerce seriously. everyone realizes what a role it plays. what we want to do is we want to be the neutral deck office. we love helping entrepreneurship and we want to make it easier to build these businesses. no one paid attention to how difficult this was becoming. we built the back office and you are getting your orders in and the packets out. then we give you an online store and you can sell directly and that is really all. emily: you are getting so much

information about the payment is us. who is winning in payments for social commerce question mark is it paypal or strike? -- or stripe? guest: paypal through their acquisition -- it is too early to tell but it is another sign of how products, retail products are really important to everyone. if you sign up, you automatically get shopify payments. emily: the trudeau government has been making tech a big part of their plan. how does the canadian government keep entrepreneurs for moving to

silicon valley? guest: coming to the valley, i always meet a lot of canadian friends. it's certainly an ambition of the canadian government to get and keep everyone in canada. we started in ottawa and we have 4000 people, mostly in canada. it's a great place to build long-term companies and the new focus is based on technology. he reallunderstands it and it is fun right now. emily: in town for your own developers conference here in san francisco, thank you for joining us. we will be right back after this quick break. ♪

emily: free syrian men have been charged with launching cyber attacks on media publications like reuters and the "washington post." the men are members of the so-called syrian electronic army. in 2013, they took over the ap twitter feed with also alert president obama was injured in a white house bombing, prompting a 123 point rob in the now, wiping out over $80 billion in market value. time now to find out who is having the best day ever -- today it's a much needed win for nintendo. shares of the game maker surging after the company announced it new smart phone at added one million users in just three days. the free app is at the top of the app store in japan and let's users create cartoonlike avatars using a photo. that does it for this edition of "bloomberg west." the new york auto show gets underway and we will focus on the future of self driving cars. that's all today from san

francisco. ♪

oh, hi! micky dolenz of the monkees here, getting ready to host the flower power cruise. (announcer) we're taking the love generation to the high seas and reliving the '60s. we'll celebrate that unbelievable era with the music that made it so special. there'll be over 40 live performances featuring eric burdon & the animals, micky dolenz, the monkees lead singer and cruise host, the 5th dimension, the lovin' spoonful, rare earth, spencer davis, three dog night, and many more! imagine enjoying all that great music on the fabulous celebrity summit, leaving fort lauderdale and making ports of call in jamaica and the bahamas. you'll be back in the days of bellbottoms, peace signs, and so much more, with special theme parties and 20 fun-filled celebrity interactive events. cabins are filling up fast, so come on, relive the era you remember so well.

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