mark: i'm mark crumpton. you are watching "bloomberg west." egypt's aviation administration says it has rotted wreckage of the airplane that crashed into the mediterranean last month. killing all 66 people on board. the plane disappeared from radar on route two cairo from paris. in a bloomberg politics poll shows hillary clinton opening up a double-digit lead over republican donald trump. 50% of those surveyed said they would never vote for trump. by 50 to 45 margin, voters say trump would do a better job fighting terrorism. in the united states senate, connecticut democrat chris murphy launch the filibuster to force a vote on gun control legislation.

senator murphy: having come through the experience of newtown, i've had enough. it has been four years. nothing has been done. despite the fact that 90% of the american public wants us to act. mark: senator murphy plea came as donald trump said he would meet with the national rifle association of the terror watchlist and gun purchases. nato says it sending a clear message to russia by increasing the number of troops in eastern europe. a multinational force will be deployed in poland and the three baltic nations, all of which border russia. from bloomberg world headquarters, i'm mark crumpton. "bloomberg west" is next. ♪ emily: i'm emily chang and this

is "bloomberg west." coming up, the fed holds interest rate unchanged amid bullets about the economic outlook. we will break down what it means for tech investors. more news from right hailing unicorns. they have all the details on the $28 billion valuation. the latest action from e3 -- the biggest gaming event of the year. stay tuned for all the buzz around nintendo's latest game. now to our lead. the federal reserve is keeping interest rates unchanged in light of an uncertain job market while offering no specifics about when the next rate hike might occur. concernslso expressed over britain's vote on whether to leave the eu. investors are listening closely and u.s. stocks slid on the news. what's the potential effect on tech? maxwell, a chief economist joins us now. what is your initial take on

this? >> i'm not hearing you too well. can you repeat that? emily: how will the fed not changing rates impact tech investing? >> generally speaking, the markets have been extremely sensitive to what the fed has been doing. we are seeing rallies every time the fed backs off any kind of normalization. i think the big picture is said and global central banks have forced people into risk assets. generally that's pretty good for tech. public tech does somewhat well and private tech, pre-ipo tech does well because if you force people to take more risk, what's more exciting but risky than private tech. my fear is we've seen the federal reserve hold off so long that people are starting to get nervous that this economy is not recovering better or that the fed has no dry powder if things go wrong. i think we're getting close to the end of this being helpful, but it is helpful now.

emily: i'm curious what you think the impact will be on ipo's. we spoke people who think there will be a spike in ipo's. take a listen to what they had to say. >> rationality is returning. over the last six months, what you will see is companies rather than raising money on what they might do will be raising money on what they have done and you will probably see more ipo's in the next 18 months then we have seen, which has basically been zero over the last 10 months. emily: do you agree or will the that. or does the fact that rates will remain unchanged, will that create an uncertain environment? max: i think we're going to see a situation where we see more than zero is an easy act to top. julio.e will look at we will get more, but i don't think we are going to get the marquee names. uber and airbnb will be slower to come to the market but we

are going to see something happen. which is much lower valuations than we have seen which will be good for investors in the big picture. it will give them more upside to chase. but we see some of the names they are more excited about. we will have a mixed bag. we have some companies coming for ipo's because they cannot raise real money at private valuation which comes out in bigger numbers first and we set the tone for investor appetite. i am still a bit nervous. i think we will see a better second half because the first half was pretty darn close to zero. emily: i'm curious about your &a.ughts on m mark andreessen said there were a lot of pent-up deals in the pipeline. listen to what he had to say. mark: most big tech countries have done well in the past five years. they've piled up lots of cash. they have very good businesses. then they can't go shopping and

that aren't many that are this big. i think it will be a whole run of them. emily: what is your take on his comments? max: i think the m and a strength is something we will see for a lot of reasons. people are arbitrage and the fact that a don't want to pay 35% to repatriate dollars. we will see logic where everyone got excited about the linkedin deal. the bar is low, so it's better than cash. holding that with a zero return like the fed discussion is not exciting. i think we will see some of the flailing public ipo's that did not do well, they might be real targets. much more than some of the private names. private names still have to readjust to lower public multiples. in other cases, there's a lot of great private names and i think we are probably seeing the end of the era where it is always cool to stay private.

now it's a sign of strength to go public. i think the linkedin-microsoft deal is a one-off. and i think people have gotten way out thinking we will see lots of deals between public companies. i do not think that is coming. emily: always great to have you on the show. turning to uber's biggest rival in china, raising 4.5 billion dollars in a round of funding valuing the country a close to $28 billion. this makes them the world's largest privately back young company surpassing airbnb, but still behind uber and xiaomi. joining me is the chairman and ceo of china renaissance that orchestrated the original merger. that was back in 2015. thank you so much for joining us. you were in town for china here , for the bloomberg tech conference. it is great to have you.

$28 billion. is it worth that? guest: it is still less than a bar. emily: should it be more? guest: i think the recent rounds reflect investors about the ridesharing market in china. i think they have up to 15 million daily rides. that reflects on the huge potential of the market. we are pretty excited about the prospects. emily: you orchestrated the original merger. two -- didi, fan: i don't want to say orchestrated, but i brought them together. emily: do you think that was the secret to their success? fan: i think it is a winner takes all market. the scale is obviously important. back then the two companies engaging in head-on competition. we believed by putting them together, we would make the competition more rational.

obviously, we have tory about that. emily: you think it is a winner take all market in china? fan: we may have a second player that holds a 10% market share, but that is it. i think economics speaks that you really need to have a dominant player. emily: uber is pouring money and effort into china right now. what are the prospects? fan: i take him hats off to them. among all the internet companies who come to china, they are putting up the best fight and they are a tough competitor. the didi guys would tell you. emily: but if it is winner takes all, do they stand a chance in the long term? fan: i think we are figuring it out somewhere along the way. emily: you told bloomberg you are trying to find the next jack ma in china. fan: i didn't say jack ma. emily: who are you most excited about? what companies are you most excited about?

companieswo are three the most excited about we just talked about. we brought them together. we created a combined company, the largest local service company in china and it is doing extremely well. there's another and that's another one we are excited about. emily: yuri milner was at the bloomberg tech conference on monday and i think you heard him speak. he talked about how much potential he sees in beijing versus silicon valley. take a listen to what he had to say. >> 70% or 75% of the presence is in this country. and maybe 20% of the presence is in china and the rest is in europe and india. there is israel, there is

bangalore, there is our linen -- berlin and london and new york and a few other places, but the majority of success and value is still in silicon valley and around beijing. emily: do you see 75% of value in the u.s. or 25% in beijing or do you see a different balance? fan: it depends on which is sector you're looking at. overall, i think it's probably more 60%-40% in my view. but certain sectors is more toward here. others more towards china. emily: what about some of the other hubs that he mentioned? fan: india is growing fast and israel has always been very strong but they are lacking a big home market, so they are a little bit handicapped. on the other hand, that forces a lot of israeli startups to go global from day one. emily: what advice would you give to a company like uber

trying to expand in china? fan: i think they are taking a different approach to china. i think eventually in this market, they need to figure out how to partner with a local company. emily: airbnb is looking for a china-based ceo. do you think that's the better call? more localization of the service? fan: i think so. i think the businesses global by nature. it's all about outgoing traffic. going around the world 50% of , the increment growth is going to come from chinese travelers. for them, it's about helping chinese travelers have a better global travel experience. they can do this on a global basis where i think uber is more about local markets. emily: he chairman and ceo of

china renaissance, thank you for joining us today. now to a story we are watching -- the maker of chips using computer etworks says it will buy qlogic a deal valued at $1.36 billion. the deal provides significant opportunity for growth in the data center. after initially being halted, shares jumped 12% in extended trading. coming up, the ceo behind some of the biggest blockbuster video games the world joins us live from e3, next. ♪

emily: a major gaming deal could be in the works.

super cell is the company behind mobile hits like clash of plans. the deal would value super cell at about $9 billion. 10 send operate china possible is popular messaging service and has been expanding its focus on gaming. softbank is looking to shed its non-core businesses in a broader shakeup of its portfolio and selling part of its stake in alibaba. the biggest videogame conference of the year is underway in l.a. and among the biggest announcements, highly anticipated hardware updates for microsoft xbox and sony playstation. on the software front, one company drummed up serious hype. would be there and a big way this year. the ceo joins us from e3. with an update, thank you for being here. the blogs have been abuzz with

this idea you might be unveiling some new games. what did you mean by a big way? >> i think you have to be here to see it. we have an enormous booth that is front and center. we are showing up our upcoming releases in the booth is dressed as a new orleans street reimagined as new bordeaux, part of our upcoming release. it is incredibly exciting. i think the long lines reflect the excitement of those attending the show. emily: any up date on grand theft auto six or read dead redemption two? guest: we haven't made any announcements as far as from focusing from this year's schedule. in addition to that includes civilization six and nba 2k and wwe 2k, our grand theft auto online property continues to

delight consumers with the content drop which has gone great. we have a lot going on and we are focused on the releases coming up in the next six months or so. emily: tell us about the pipeline for new games this year and beyond. guest: i just talked a little bit about the release schedule as we see it. both of our labels are hard at work on up coming releases and they will make announcements as we get closer to those early -- release dates. we had a very full plate at the next few months that's our primary focus. emily: you were an early investor in twitch. some of your competitors have been talking up their positions in east sports. how do you benefit from that early investment in competitive gaming? guest: that's such a great question. we did invest in twitch early on. the company was sold to amazon and we made a great return on investment.

but more importantly, we got religion early on about the value of e sports and what it could mean for our core business. most recently we launched a tournament within our nba game where 100,000 teams played 2.3 million matches leading to a grand prize. it was incredibly exciting. it was live stream. and within our game itself, the tv, the levels of engagement were really extraordinary. it shows us that the e sports business, which centers economically around league of legends, one title primarily, will be expanded to include other key titles. we hope one of our titles will be on that short list. emily: some of the other announcements have been around a new xbox at a new playstation powerful enough to support the -- vr games. how are you positioning yourself

for that? guest: we position ourselves in -- for any upcoming platform in the same way. we do the r&d and make sure we are ready to meet the market when it arrives. we tend not to make enormous investments in advance of seeing a game begin to make traction. we're are the only company that can bring our intellectual property to market and we don't see there's a benefit to being out first. we want to be out best. emily: i know you save the our -- said that vr technology is not really good enough yet to invest in heavily. there is still the nausea factor. how are your views on that evolving? guest: there is enormous excitement around vr. not just in the industry, but in our company as well. the truth is the market has yet to emerge. we are not even sure what form factor software for the devices

will take because it is such a novel experience. we are open-minded and we are doing our homework. there are challenges that have to be overcome and he mentioned -- you mentioned one. the other is vision and headsets, how long do you want one on your head and what is the nature of the experience? all of these things have to be sorted out and i have no doubt they will be in the coming months and years. excitement notwithstanding, the market has yet to develop. emily: what you are saying is what we heard yesterday from sequoia partners who associated virtual reality with the trough of disillusionment and the concern that the hype just won't live up to reality. how many years out do you think you will be ready to support the -- vr in a bigger way or do you think it will really go mainstream?

guest: i have my questions which i have raised on a number of occasions. we remain open-minded. it always makes me nervous when billions of dollars are invested around a conventional idea of potential success. often that leads to disappointment but sometimes it doesn't. it worked out well for google and facebook and there are plenty of things we can point to where a great deal of enthusiasm has led to success. on the other hand, it is a fair question. we are in a place where if a market develops we will be there , and benefit from it greatly. if a market doesn't develop, our investment is minimal. emily: joining us live from e3, thank you so much for stopping by. still to come, nintendo bet big on the legend of zelda, but what about a mysterious console in the works?

we check in with them later this hour. ♪ and match group shares are up 10% after one analyst called it underappreciated. we will talk about their 45 dating ramp. ♪

emily: andy rubin, the google veteran who built android into the world's largest operating system is convinced artificial intelligence and quantum computers are the next big thing. he spoke to brad stone about what he sees as the next platform. >> we believe it is ai. in order for ai to blossom and fulfill consumer needs, it is about to data. and it hasn't been about data before. it used to be about engineers

writing code and now it's about people training ai systems to learn. emily: his firm playground and red point investors are investing in an unnamed startup working on quantum computing. fire i is said to have rebuffed multiple takeovers after hiring morgan stanley. the cyber security company turned down two suitors with offers below expectations of $30 or more a shares. shares rose today. this after falling about 25% this year. the company is valued at $2.76 billion. they have technology for detecting advanced hacking attacks. it has responded to intrusions at sony, and j.p. morgan chase. coming up, vimeo is searching for a new ceo. how the company and to take on giants like youtube and netflix. we speak with joey levin, next. news, like bloomberg check us out on the radio -- you can listen on the bloomberg radio app and in the u.s. on

serious xm. more "bloomberg west" next. ♪

>> the yen is trading in areas for the first time since 2014. membersof nine board also with the fed holding fire setting brexit as a risk factor yields on japanese korean and australian government bonds all hit lows on thursday. australia had a study in may despite not a single full-time job being added. the government figures say almost 18,000 people found part-time work. the record low interest rate are

helping job creation in industries including construction, tourism, and education. india has relaxed aviation regulations to allow local to start more quickly. domestic airlines will now be able to fly overseas provided they provide a complaint or 20% of capacity a local routes. they will increase competition in the world's fastest-growing aviation market. those are the headlines on bloomberg news powered by 2400 journalists. thes get the latest of markets now. japan is back online, what is the damage? david: i almost don't want to look at what is going to happen on the nikkei. you look at futures, let's wait for a few seconds until this gets warmed up. go to 40 points in osaka, in chicago dollar yen is doing this. 104-76.er lining,

all change at that japan is back online. now let's see, do we have a price for the afternoon session? there we go. that is the lunch break that was -1.1%. 15,600 it will be surprised if you continue to see pressure there. cap that was hoping will be going to get something right. again, follow this closely. you have about two or three hours here left on the nikkei to continue to trade broader markets looking like this. but everything together you look at the kleins this thursday. a lot of event risk ahead. i think the story is really if you are not the short version we

look at equities on the way down . we look at gold on the way up. are rallying like crazy. is very much a risk-averse day. ♪ emily: interactive corp. vimeo is looking for a new ceo. he step down from the post remaining an advisor to the company. joh 11 will serve as the interim executive. they helped transform the video website from a niche area for a destination for high-end series. they have begun funding their own slate of original programming with the plan to spend $10 million in to keep up 2016 with competitors. but the company has struggled to win enough attention for it original series. one show moved to hbo. he with me to discuss is joey

levan. why did they leave? what is the timeline the search for his replacement? joey: he left because he had a great run at vimeo and left to do something else. he was a pleasure to work with for the entirety of his career and created unbelievable value while he was there. now, we are looking for the next thing. emily: how much is iac willing to invest in vimeo over the next three to five years? joey: we have not put a number on it. we are in investment road right -- mode right now. we have a market that is changing dramatically in terms of pay tv. it's nicely positioned and we have the creative community it has with its brand. we have been investing and will

continue to invest in it. how much we are investing in it is something we will work with the new ceo when we find the new ceo. emily: "high maintenance" was a series that started on vimeo but moved to hbo. are you still planning to do original content? joey: yes. we are going to do it smartly and narrowly focused. given the size of our audience and creator base, we see a lot of data and we know what people like watching and we know what our creators like making. when we put them together, we have a good sense of what is produced. i don't think it's a game where we are going to outspend any buddy -- anybody in this category. i don't think you need to outspend to win. we have to be clever about where we put the money to work. hand, "high

maintenance" moved to hbo which is great for them and great for hbo and it is great for vimeo. creators go to our platform and for them to go on to exciting careers is great. in the future, i would like to see them stay on vimeo for their entire career and we have the opportunity to do that. but for some to succeed early and then to succeed elsewhere, i think is great. emily: you own the match group as well as other dating sites. based on a note where analysts called match underappreciated. what is the potential you see being unlocked? joey: a lot of our businesses are frequently underappreciated in their value and it's nice to see the value move up. we have four of the top five dating brands and that's a

tremendous category that for a long time has grown and is now growing in an exceptional way because the stigma of dating and meeting people with dating products has disappeared. that is open up the market. i see huge opportunities ahead in dating. emily: there are a lot of online dating startups trying to disrupt the market. phoning match, tender, okcupid what do you see is the future of , online dating and how do you stay competitive? joey: you always have to keep innovating on the product and if -- we have -- if you keep innovating on the product, you have to think about different markets and different demographics in the right product for the right market and demographic. tinder has done a good job for opening of the market for the under 35-year-old people. and match and other products

have done a good job with over 35. we have products within their that target smaller in their demographics. so finding the right product for the right audience is the hard part. and then continuing to innovate on that product whether it is in , mobile or how you enable people to chat or the tools and games you give people to be able to interact with one another is where the innovation happens. competition keeps the market healthy and there are players out there. i don't think any has reached the meaningful scale that hours have reached. have reached. but we keep an eye on it. emily: what do you say to the criticism that apps like tinder may lead to fewer people wanting to commit to long-term relationships which may be good for business but has a detrimental effect on society? joey: i don't think it's good for business and i don't think

it's true. people have always been meeting, people have been meeting casually and seriously. what it does is makes the meeting introduction and getting to know process easier. it eliminates a barrier, it doesn't change anyone's savior -- behavior once they met somebody. it shouldn't change someone's behavior and there are many long-term relationships that come out of it, marriages, children, things like that. i think that narrative is meaningfully overblown. emily: joey levin, the ceo of iac, thank you very much for stopping by. turning to the world of virtual reality -- comcast is leading a $6.8 million investment in felix and paul studios. the montreal-based creator of vr

films have produced content for facebook and studios like universal and fox. it's the first investment in the cinematic vr. the company has invested in five other companies in areas like live sports and animation. it reflects a growing demand for stories in the nascent medium. coming up, one of the biggest video game brands in the world is fighting for market share as gamers move to mobile and in experiment. we will check in with nintendo, next. ♪

emily: cyber security firm labs saying it has uncovered and online marketplace selling access to hack data for more than 70,000 corporate and government servers. according to the company, deductive on by russian hackers. some videos listed for as little as six dollars. there are reportedly compromised. -- and unnamed u.s. aerospace company, and a chemical company from singapore are reportedly compromised. carbon black has hired a bank to help it go public. morgan stanley and j.p. morgan chase will leave the ipo -- will lead to the ipo. and ipo could come as soon as this year. our ipo reporter is here with me in the studio. what do we know? >> this is an exciting new in my

world because there hasn't a lot of activity in tech ipos. with carbon black hiring these companies -- this is a cyber security company, it's backed by big names like blackstone and kleiner perkins. this is a company that is making moves and taking steps toward going to market, which is an unusual thing these days. when you look across tech ideas, one of the big complaints is there's no supply here. this one is taking the steps to go public and give an exit. emily: mark andreessen yesterday said that he sees a lot of pent-up ipo demand. but also entries in horowitz is -- anderson horowitz is counseling their companies to be ipo ready. alex: which hasn't really been the case. as i come out here there seems , to have been a shift. if you look back six months ago there was this idea talking to

vcs and executives saying we don't want to deal with reported quarterly results. we don't want to deal with that. it seems like there has been a reality check injected in which has set this timeline for 2017. and the demand side thing is interesting. we have had this year where investors have been very adverse to risk. a lot of the demand earlier this year with just was not there. we are at this turning point were offerings have gone well . the buy side is saying i want a little more risk. i want something that is potentially high growth. that fits the profile for some of these newer tech companies. so it's good for the business and good for companies looking to get ready. emily: quickly, they are expected next week but to think will happen? alex: they price of the 22nd next week. inm hearing that people want

to a tech ipo. the deal seems to be going well. we will see what it ends up pricing at. a lot of the smaller tech companies will be paying close attention as well. emily: thank you for stopping by. let's return to the biggest videogame event of the year -- e3 in l.a.. so much buzz has been centered on the battle of the consuls. microsoft and sony announcing more computing power for vr. but another company still fighting for market share is nintendo. also promising a new console in the works. joining us is the nintendo for america president. i want to start with the big zelda unveiling. "breath of the wild." tell me how big a deal this is for nintendo. guest: this is a huge deal for nintendo. it's a fantastically huge game, bigger than any nintendo has

created. we brought it here to e3. we have lines around the booth with people waiting to get their hands on this experience because it is so phenomenal, pushing the edge of our system and we have committed to launch it sometime next year. we are excited and the fan reaction has been fantastic. emily: a lot of fans were hoping you would unveil some details on the new console you have coming. what details can you share? guest: what we said is for this year, e3 is all about zelda. it's all about this brand-new experience where you can go through this environment, anything you see, you can get to and explore. that is what we brought to e3. we've got plenty of time between -- we will launch in march of 2017. we've got plenty of time between

now and then to share details. so here it is all about zelda. entires is to make an zelda environment and the attendees at the show are loving it. emily: your competitors talk about their forthcoming. the xbox and a new playstation. how do you think the new console will stack up against them? guest: for us, it's not about specs or teraflops or the horsepower of a particular system. for us, it's about the content. nintendo is a content focused company. the create entertainment that makes people smile. for us we are focused on , bringing our best entertainment to the wii u and the future. for us, whatever microsoft and sony are doing talking about the systems, that is for them to fight out in that red ocean. we want to make sure we are bringing our best content forward and the reaction to

zelda has been more than we could ever imagine. emily: do you foresee a dip in actual game sales because people will be waiting for these new consoles and there is such intense competition? guest: honestly, no. what we know is when we launch new games, the demands for the games across the world end up being very strong. when we announced platoon and super mario maker, the demand was very strong. this year we have told consumers about pokemon coming and when we announce big new games, consumers are motivated to buy those games. for us, that is what we do. we create content and bring it to the marketplace. as long as the content is seller -- is stellar, we can drive it to revenue.

u was the wii revolutionary because it drove new experiences. how is nintendo positioning itself for the future of virtual reality? we just heard about who is skeptical about the promise of vr and believe there's a lot more work to do on the platform before they will invest heavily in it. guest: here is nintendo's take on any new technology. we want to make sure technology is mainstream and we want to make sure it represents strong value for the consumer. there was a lot of gyroscopic technology in the marketplace, but it took the wii and the remote to make it mainstream. going all the way back to the nintendo ds, that was the first electronic device that made use of a touchscreen.

if we look at vr, or ar, for us, the technology has to be a point where it can be mainstream and then takes content creating companies like us to make things the consumer wants to experience and wants to jump into the particular technology. that's how we move it lowered. -- forward. we have been looking at the vr space since the day of the virtual boy. we want to make sure our content is going to be mainstream and mass-market approachable. when that happens, you can expect nintendo to be there. emily: how far out do you think that point is? >> i haven't seen the latest at show but i've seen just about every other vr experience companies are working on. in my judgment, i think it's a bit further out there and for mainstream markets. applications that consumers can

invest a lot of time in it versus short snacks of entertainment. emily: we're more about the new pokemon game, can you elaborate on that game coming out next month? guest: it is a fantastic experience where you use your smartphone as well as an accessory to look for pokemon in the wild. it takes you all around your home city, walking through various streets, riding a bicycle, any place you go, you can find pokemon. the development team is very experienced in these types of applications and we are excited about it. we think this is going to be a fun experience for the fan, both the older fan and younger fans and for us, this is something we are very excited about and look forward to driving it next month. emily: the nintendo of america president live from e3. thank you for joining us.

coming up, a hard landing on of course i still love you -- that is elon musk speak for crashing a rocket in the middle of the ocean. we give you the latest. ♪

emily: in this edition of "out of this world" -- spacex launched two satellites into orbit, but the real drama was on the other end of the mission. the attempt to land a rocket on a floating barge failed. ending its success streak. the company had said this particular landing would be difficult because the rocket was going very high into orbit, using a lot of fuel and leaving less for the rocket's return. elon musk tweeted that the booster had an rud on the ship. k, you don't speak elon mus

that means rapid unexpected disassembly. or, an explosion. plans to launch satellites. the country's biggest single launch trailing behind russia and nasa. satellite launches are expected to increase by 35% globally over the next five years as countries like india and indonesia rush to bring phone service to their populations for the first time. india has 35 satellites in orbit d says it needs -- -- ouble that to catch up with that demand. time to find out who is having the best day ever. today's winner is amazon users. amazon is slashing shipping fees. for small, flat items that can fit into envelopes. this poses a attentional threat -- potential threat to alibaba's business. in all can chinese sellers with u.s. shoppers.

cents,t will pay $1.61 that is 67% less than the current price. that is all for this edition of "bloomberg west" have a great day. ♪

>> central-bank dilemmas everywhere. the bank of japan sticks to its policy. the federal reserve hints at a rate hike before the election. rishaad: stocks fall anticipating the decision. manus: aiming for equity. the oilpp