hospitalized with what is described as life-threatening injuries. a state police spokeswoman says a two civilians were hurt. it's not clear they had been shot. the shooting took place at the greyhound bus station in richmond. the main suspect in the paris terror attacks will be extradited from belgium to france. the prosecutor's office says he will be returning to face charges. abdeslam was captured in brussels after four months on the run. president erdogan is being criticized. press club president tomas berdych writes,, "we have increasingly seen disrespect for basic human rights and press freedoms in turkey. erdogan does not get to export such abuse." the california legislature approved and sent to governor jerry brown a proposal to raise the statewide minimum wage to

$15 an hour. the increase would take effect by 2022. toernor brown is expected sign the measure. global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. i'm mark crumpton. "bloomberg west" is next. ♪ cory: i'm cory johnson, in for emily chang. this is "bloomberg west." thousands lining up to drop a grand on the car they still have not seen. we will look at the review of the tesla model 3. fitbit shares up today. interesting data about how people are using their fitbit. problems, and title is definitely one.

first in the league, tesla taking reservations for its mass-market vehicle. people around the world lined up down $1000e to put on a reservation. they would not take reservations online, only in lines, until after the close. the car will not be in full production until 2018. they are still taking those deposits. out musk's master plan laid a decade ago, to enter the market on the high end, then drive down the market as fast as possible to higher unit volume and lower prices with each successive model. that did not happen with the model x. but will it happen with the model 3? why tesla does need his model 3 to sell like crazy. reporter: model 3 is arguably the company's most important model yet.

with mass-market comes mass competition. tesla's success to date means competitors like gm and bmw are working hard to catch up. just five years ago there were only 4 electric models in the u.s. at the end of next year, there are expected to be almost 60. as any car dealer knows, the more rivals you are up against, the harder it is to make the sale and the more you have to spend to promote, market, and jazz up the product. this uses a lot of cash. tesla already burns a ton of it. those competitors have one big edge on tesla. they tell millions of regulators and -- all of which is a problem for investors paying top dollar for tesla shares. tesla right now is valued at $30 billion, putting it in the top

10 carmakers in the world. but it sales don't come close to matching. you can't even see them here. to buy the stock of this price, you have to believe that tesla can change the global car market and beat everyone else. the model 3 will have to move fast to catch up with tesla's investors. i think that was appropriate set up for this, the tesla model 3, the whole shooting match for this company and its current valuation. reporter: i think liam hit on the most important issues here. it takes a huge number of challenges going forward. even as a luxury car company, their brand is underpinned by the idea that they are on this mission to make cars available to everyone. this is really the first vehicle that will take a meaningful step

in that direction for the company. execution is everything here. cory: we don't know a lot about the car itself. we know it will be steel and aluminum. talking about a $35,000 entry price. what do we expect -- do we expect it to be $35,000? beard: it will probably $37,500 at base. $30,000, 200 miles is the general fact sheet we have been looking at. they have a real problem there. these subsidies expire after 200,000 units.

it's starting to look like by the time tesla gets this model three onto production lines, even assuming there are no delays, that subsidy may have already begun to expire by then. tesla has been fueled by in part big subsidies. some states have added to that. we have seen those subsidies going away, particularly in europe. by the time this thing gets out, they are going to -- they say they're going to ship in the last quarter of 2017, the last car they say they would ship in a quarter. the only made 6 cars. full production, they say 2018. we look at all the competition that will be out there then. the audi q7. we've got a lot of cars that will be there to compete with them in the all electric space

even before this thing is in full production. edward: i think that's why tesla is taking this unprecedented step of going ahead and collecting deposits before they have even shown the car. i think they want to create the perception that they will be the first to market. and the reality is that there's going to be a lot of competition by the time they actually get to the market, even assuming they don't delay the actual launch of the car. huge challenges there. isy: back to that price, that $35,000 -- you're guessing $37,500. that probably does not include the extras people will want with the car. the average price is much higher than the basic lift. edward: tesla can either have an affordable electric car that beats all the competitors by every metric, or they can have a car that delivers a solid profit

versus the competition. what they can't do is both of those things. i think the real question here is, which sidech of that equation has tesla erred on? will they continue to try to beat the competition and build their brand by offering more for less than the competition, or will they at some point start generating profits to support the ridiculously high valuations they have at the company? in turn potentially runs the risk of disappointed consumers who are used to this very prestigious high level of execution on the product. cory: tesla model s is so cool. features andy everything. what are they not going to put in this car? if you lose money on every sale, you can't make enough on value. edward: absolutely. the other thing that has not been covered well in the media, -- its reliability

and quality has been quite bad. if you do the research into consumer feedback on this vehicle, drive units are 80% of all model s. cory: the drive unit? edward: the drive unit. edmonds, a car consumer advice hadany, their test model s to have its drive unit replaced twice. as you get into this mass-market, people become more demanding. it is a little understood dynamic in the car market. mass-market consumers rely on their cars more than the luxury segment and they will be a lot less forgiving of tesla if problems persist. as tesla ramps up its volume, without a great track record of manufacturing quality already, those defects will likely go up. all this put together spells a really tough challenge for tesla and musk and his team.

cory: they certainly seemed to be fearless when it comes to taking on new challenges. ed, thank you very much. u.s. regulators vote to restrict how internet service providers use information about their customers' online browsing, a proposal that would require copies like comcast and verizon to get permission from subscribers before sharing their with other companies, including advertisers. the rule does not apply to web companies. google and facebook can do the same thing. the rule is not final until another upcoming vote by the telecommunications commission. coming up, investors flocking to make driving obsolete. ♪

a company says it's making it easier for passengers to access the internet while writing to a destination. both car booking sites already

offer free wi-fi. ola announces its riders don't have to log on. one of its biggest rivals get looking to expand. reporter: the battle for london's ride hailing heart is heating up. it would become the british capital's biggest black cap service. revenues raised 300% last year. competes in 57 cities worldwide, including moscow, tel aviv, new york, and london. give eating with the likes of uber -- competing with the likes of uber and lyft this not come cheap. gett is said to be seeking 400

billion's more. change, but a fraction of the $62 billion l.a. wish and commanded by uber and less than half of lyft. bloomberg news, tel aviv. cory: a story we are geeking out world's first driverless car racing series. the streets of new york city -- formula e, they will begin this year or next. the cars were designed by daniel simon. the vehicles will be able to hit speeds of 186 miles per hour. that seems perfectly safe. good lord. almost every carmaker is racing for a position in driverless right now. cruise automation is known for

retrofitting cars with fully autonomous kits. good to see you. you work smart enough, or lucky enough, to invest in this early. lede got into the series a by sport capital out of boston. we syndicated the investment over angeles. i have a lot of very happy investors right now. cory: what did you first see in this company? founder of twitch tv, which was sold to amazon for over $1 billion. he was talking to me about what they were doing, the technology they had developed and where they were really going. cory: he was the one who convinced me that twitch was something to look at. you see a big user base with this thing? technology will be

every vehicle on the road in the not-too-distant future. my daughter will never drive a car. you think about how that will change the way that cars operate. cory: my daughter will never drive a car. it's just because i don't want her driving cars. >> is a big deal. it changes the whole world. we are just getting started on where that will be at. cory: this is the first huge exit for the angels list. thing abouteat angel investing, it's the sort of thing where you can get a big return. in this case, it's a huge return. investors joining this round are very excited. c, when you look at sort of the competitive issues at play here, so many car companies looking at these technologies. autonomous driving is already happening. most -- >> most automakers are targeting

have thewhen they will technology deployable on the streets. the question is whether the environment and regulatory structure will be ready. cory: i do not think you are being kind and fair to the folks in washington. eric: there are lots of challenges beyond the regulatory environment. the infrastructure, the least of which is figuring out how these vehicles are going to interact with the traditional cars that have a human operating vehicle on the road. cory: zach, what is it about silicon valley? zach: you look at what elon musk did withhat kyle cruise. they were able to go to the smartest people in some of these really big, bureaucratic companies that can't move fast. kyle was able to say, we can move faster.

getting been stuck not this done for years. he was able to recruit a really strong people. cory: good to see you. coming up, apple's new iphone hit the stores today. what this might mean, next. ♪

according to one analyst, the iphone s.e. -- an opportunity for apple to try out new suppliers ahead of the iphone 7.

you've got a story about this today. opening of devices and seeing what's in it is one of the oldest games on wall street. they are in a number of different places across apple devices. if you hold the phone to the side of your face, the screen doesn't react. it has an infrared sensor, also supplied by these guys. on your watch, a light underneath it which helps measure your pulse. cory: is this typical of apple? >> yeah, they basically play with the supply chain. cory: low risk in terms of technological risk? the point of view

that they were not expecting massive volumes to go out. cory: they want a new supplier who can bring on the volume before they go to the big, new iphone? literally more size and volume? >> absolutely. if you want to introduce a new supplier, you can introduce a new supplier and have them wrap up one. times when they have introduced a completely new technology and run into supply shortages. cory: we have seen them govern that by limiting the number of countries they sell to. you guys initially were not getting the brand-new iphone. u.k. was added pretty quickly thereafter. china doesn't have the s.e., but it will come in a few weeks. cory: this is an led we are talking about, not a semiconductor.

>> it's essentially not a big technology here. that's the reason they can take on new people because they understand the technology really well. cory: apple doesn't really dual given phone. on a for most components, they lock in with a certain manufacturer. they're using samsung as well. >> they have done global sourcing. they've done it for some components. up withy when you end one window, there's much high risk for apple. at that time, they had wrapped them up and they ran into

production shortages back then. those are the kinds of situations they want to avoid. cory: what were the lines like today? >> that was expected that there would not be massive queues around the block. they are expecting volumes to be lower. cory: you can say queues here. it's a global broadcast. >> the language is english, and i am english. people are expecting 10 to 15 million tops for this phone. if you compare that to 200 million sold last year, it's a big enough number for any other supplier. for the last five years -- get them in a box, get them across the ocean and make all the deadlines and then be surprised by the lines? come on, is a marketing gimmick.

-- it's a marketing gimmick. >> they are nothing if not good marketing gimmicks. >> when i was in munich i would have to go down to the shops in munich and ask people what they thought. cory: thank you very much. today's trading, we will check in with the ceo about fighting off the competition. if you like bloomberg news, check me out on the bloomberg app. ♪

mark: the u.s. and china will find a landmark climate accord

earlier than expected to deal with greenhouse gas emissions worldwide. president obama and the chinese president say they hope the early commitment will nudge other countries to join in. istish foreign minister dismissing a proposal by the syrian president bashar al-assad, who's calling for a national unity government. says a newssad government would include members of the opposition. the pentagon plans to transfer about a dozen prisoners at the u.s. military facility at guantanamo bay, cuba. the first round of transfers could come within the next few days. it's part of president obama's efforts to close gitmo before he leaves office. in venezuela, there are shortages of food, toilet paper, and medicine. now a shortage of electricity may mean lights out in caracas. the jot blamed on el niño dropped water levels to a critical point at the hydroelectric plant that supplies electricity to the city. if there is no rain, there could

be rolling blackouts in caracas by the end of april. global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world trade i mark crumpton -- world. i am mark crumpton. my colleague paul allen has a look at the markets. paul: good morning. we're expecting declines on the nikkei and asx in australia when we opened. a little under 30 this time. new zealand currently the only market only -- open at the moment. profit growth, .6%, is the weakest in a decade. evidence also down 8%. if that sounds familiar, it's because we heard the exact same story from the other four major chinese banks this week. also looking out for chinese manufacturing and

non-manufacturing pmi, that is expected to show an improvement from the previous month. a number below 50 still signifies contraction. waiting on data out of japan as well, the monthly survey expecting to see weakening in the fourth quarter and manufacturing from 12 down to 5. also weakness expected in non-manufacturing as well. that is thanks to yen appreciation weighing on corporate profits. allen for bloomberg tv in sydney, australia. ♪ cory: to the battle of the fitness dance, fitbit remains in the lead. new, better funded rivals such

as apple and under armour say it is still dominating the market. now to an interview we simulcast on bloomberg tv earlier and bloomberg radio. we began by asking him about the fit it blaze watch. -- fitbit blaze watch. >> we had about 5 million in revenue, 2010 last year. company and the category as a whole have been growing pretty quickly. reception.t we won 17 awards and counting. we recently announced that we shipped over 1 million blazes within a month. it's a phenomenal launch. cory: what's interesting about the device to me is it is really

focused on athletes and may be best suited for runners, even. >> that's what differentiates itself from other products in the market. it is geared specifically towards the active consumer segment, people focused on fitness and interested in cardio activity, hitting the gym, etc. blaze hit that sweet spot between focused on the right features, primarily fitness, price point, and battery life. five days of battery life. hurdle is itf a for you -- you sell a device to somebody, he has that device. what is the likelihood he will buy another? is there a saturation point you are worried about? >> no. the business is growing for rapidly, both in north america and primarily internationally as well. retention of our users have been great. if you look at all the devices we have shipped in the past 6 years, 59% of those users are still active.

that's a very engaged user base. if you look at last year, 72% of all users who bought a fitbit device in 2015 are still active in our community. cory: i feel like anecdotally i continue to think people by these devices, they forget to put it in the wash, they never put it on again. stick ismakes fitbit the power of our software and community. what we have seen is that layer of social and community engagement really drives long-term retention on the platform. we see that. last year we had an increase in the average number of friends that people have on the platform, from 4.9 to 7 average friends. i made the mistake of

putting michael dell on my friends list and he always gets more steps than i do. there's always the people who have treadmill desks. i look at the reviews apple evente the last week. surprising to me is how much more discussion there was of that than the apple watch. i couldn't decide if that was because the device was so new, if you were getting -- or if you were getting a lot more buzz from the watch. >> amazon and other retailers, this has been the best launch we have had today. 84% of the reviews are either 4 or 5 stars. cory: a couple of years ago you launched a scale. i thought we would start to see a slew of other products that go beyond stuff you see on your wrist. is that part of your long-term

plan? >> the long-term plan for fitbit is we are a digital health company, helping people achieve their goals, whether it is to become more active, lose weight, manage their stress, etc.. our product roadmap is filled with devices, wearable and non-wearable, that help people address those goals. cory: that was the fitbit ceo, james park. now to microsoft, announcing a new connected service with bmw. earlier i spoke with the cmo of the company about that partnership, a.i., and microsoft. >> we see a new type of developer opportunity where we peopleay from apps that sort of download and use maybe once a month and instead move much more to a conversation mode with their computer, much more natural way to integrate all the technology in their lives.

end, on thee other computer, needs to have great intelligence. that's really where we see developers focusing a lot of their attention. cory: when we look back at microsoft history, we see a president. like click to hit. cory: what we are talking about with machine learning is very different. >> we have come a long way from those days. that was an early attempt at making the computer more human, making it a little bit less intimidating. and making it far more natural. with machine learning you get such incredible opportunity to get smarter and have the software make the personal assistant so much more intelligent about what is important to you and your life versus me and my life. that's one of the big differences between then and now. cory: i'm so intrigued by this.

also, through your role as a marketing guy, try to convince people that microsoft stays relevant, announcements stay relevant, product development more minor in nature is still relevant. >> we have moved to a world where people expect things to be up to date and they want constant innovation, but they don't want those big disruptive moments. that's a wonderful thing about the cloud. we just spent the entire company, really, on our cloud platform, microsoft azure, as a way for companies to build applications they will do great things. microsoft was the cmo. a year after buying title, jay-z may be having buyers are more spirit was jay-z defrauded in the deal -- buyer's remorse. was jay-z defrauded in the deal? ♪

and fan duelngs suspending all of their college contests. the change takes place after the ncaa men's chevy ship basketball nship basketball game. he jay-z is showing fines of buyers are more spirit a year after buying title for $56

million, the hip-hop mogul is going after the previous owners for compensation. it of overstating subscriber numbers at the time of the deal. this comes after a tough year of the struggling streaming service in several management changes. lucas? tell me where these guys are competitively. reporter: tidal has been around for about a year. they said early this week they have 3 million subscribers for comparison. spotify has 30 million subscribers globally, apple music has about 11 million. there are a bunch of other tidal range.hat getas been able to exclusive rights to music from

rihanna, kanye west. that probably is driving some of the subscriptions. it's unclear at those customers want to stick around. these videos have been fantastic. come on. rihanna? kanye? lucas: are you not a rihanna fan? cory: i'm a big rihanna fan. drake. this is fantastic. you would think that would drive people to this service. they have decent user numbers. but maybe not enough to get to profitability? it takesink about what to market a service. the advantage apple has and the reason the music industry believed in them was they have several hundred million credit cards on file, hundreds of millions of people who have their phones in their pockets. that is marketing where they

don't have to buy a bunch of tv spots or tell people the service is here, though they are doing that because it's apple. if you are tidal and run by these musicians, they have plenty of money to spend but not necessarily enough money to mount a real marketing campaign to take on one of the biggest companies in the world and spotify, which has raised billions of dollars and just earlier this week said it had raised another billion. cory: there is some funkiness on those terms. as it relates to the tidal business, the underlying infrastructure, they don't have to go out there and create that. the license all that to the companies, correct? lucas: in terms of the technology behind tidal, that's an area where i'm not an expert. whatever jay-z bought, there was already the tech platform there to operate the service. the challenge for any music service right now -- most of

them offer a similar product. it's an on-demand library of just about every music you can think of. how do you stand out? approach has been exclusives, content you can only get there. worked to a it has point. if they keep delivering those, maybe they can get big enough. even a service as big as spotify is not yet profitable. how is tidal going to get there? cory: kanye apparently going to spotify now, finally. lucas: yeah. those reports this morning that kanye's new music would be on apple music and spotify within the next 48 hours, which means tidal had exclusives for about a month. cory: really interesting stuff in the changing world of streaming music. from los angeles, thank you very much. airbnb is getting old.

i will tell you why older women reign supreme on the home booking website. tomorrow on bloomberg, don't miss legendary investor bill gross. he will react to the u.s. jobs report at 8:30 in the morning on bloomberg go. everyone, including the fed, will be watching. ♪

cory: legendary venture capitalist john doerr stepping away from his duties to become its first chair. he will not participate as a general partner in future funds. err spoke to emily chang, saying quote, i expect to find amazing entrepreneurs. i went to create more time to look over the horizon to develop the next generation of founders at kleiner. for 15+nown john doerr years.

he's a guy i always want to hear from because he's such a thoughtful investor. he has an incredible history at kleiner. he joined in 1980 and led through the -- led the firm through some of its biggest investments. it's the sort of move where he's doing what he called a generational transition. a few other firms have a changing of the guard. kim traber was not on some of the most recent funds. fascinating guy, great guy to talk to. the public markets, not only successful, but some of the boards he's been on -- or the stewart he's on the board of that company.

not always successful as a public board member. a guy who has been good at talking about trends and starting to explain trends. that's why my company is the one that will benefit. he was telling me while he was on the board of excite telling me i had to check out this new search engine called google. when they think about kleiner, they think of a history of several decades of success. some criticism about them being slow to see opportunities. lobster, they had a painful and public trial with a former partner, ellen pao, for gender discrimination. cory: maybe not the leading light of the valley it was in the past. reporter: no. cory: interesting stuff. , of all their hosts,

bloomberg news found that americans aged 60 or older are the fastest-growing demographic on the home booking website. they are the ones leaving the best reviews. when we look at this, it's really interesting to me -- i'm sort of picturing mrs. doubtfire or something. that is the ideal host of airbnb. the story is that -- the lead example, the woman. the number one property on airbnb is a mushroom dome house in santa cruz county that is sort of a pentagonal shape in the field with a geodesic dome. it has this geodesic dome at the top. they're very popular at burning man.

this is a woman who is an empty nestor, who now spends almost a full-time job running the mushroom dome on airbnb. cory: is get the best reviews because they are doting -- data.er: airbnb has this you can only imagine about why. you imagine they are comfortable to be around their great hostess. talking about how to visit the empire state building, how to get to central park, to do these things. these are the qualities that make airbnb a totally different stay from a hotel. may be more older people turning to airbnb when they want to travel. and for older, hosts, it's an opportunity to make money with a little bit of flexibility. maybe some of their -- some of them are retired or thinking about retiring.

rent out the couch in the green room. i like this idea. that's it for today's edition of the best day ever -- a team of scientists from purdue university have for the first time identified the three-dimensional structure of the zika virus. it's a big deal. they were able to do this using a technique called cryelectron microscopy. the virus is first frozen and then imaged. this might help scientists determine how the fire us is diss -- virus is disseminated. blackboard reports earnings before the bell. plus, we will hear from google ventures. long-term bets on biotech and health care startups. a special sneak peek at "studio

1.0" right here on bloomberg television. i'm cory johnson. this has been "bloomberg west." ♪

♪ >> from our studios in new york, this is charlie rose. charlie: when you first heard there was a new musical may be in the works about alexander hamilton. special,usic would be >> for me, the most famous person was linn. i didn't know a lot about alexander hamilton.