. president obama: they are part of our family, the american family. today, vice president and i told them, on behalf of the american people, that our hearts are broken too. president also pleaded for congress to consider gun control measures. u.k. police say a british member of parliament has died after being attacked. she was meeting with constituents and rest -- in west yorkshire when she was shot twice. the suspect has been arrested. campaigning has been suspended on the referendum on the european union. image 370'ss say voice recorder has been pulled from the mediterranean sea. the memory unit is intact. the plane crashed with 66 people on board. the centers for disease control says that three babies with birth effects caused by zika

have been born in the u.s.. the effects were also seen in three other pregnancies that were ended. the cdc says 234 pregnant women have been diagnosed with the virus this year. i'm shery ahn. bloomberg west does next. -- is next. ♪ on cory johnson, and this is bloomberg west. coming up, oracle's transition to the cloud is accelerating. the company'sdown cloud fueled q4. plus, the value of bitcoin has gone up 70% in the last three weeks. we will talk to experts. and the cheapest, smallest satellites in the history of

aviation are changinggame. first, to our lead. a twist in one of the biggest stories. bloomberg has learned before microsoft bid on linkedin, salesforce made a bid. sarah frier joins us. this is really interesting, and it starts to make sense what microsoft saw in linkedin, because salesforce saw the same thing. jeremy: and also the price. people were questioning microsoft paying a premium over their current trading, although lower than what linkedin was trading at six months ago. people were saying there must have been something going on. of course, bloomberg broke on monday that goldman sachs was working with a rival, which is thee -- which is why linkedin-microsoft deal was handled by morgan stanley. now we know. cory: do we have any sense as to why this bid was turned down? did they not like the people involved?

ceo ofnteresting the linkedin will remain in control of linkedin while brought in as a separate company, not fully merged. that is a thing jeff weiner said that really attracted him about the acquisition, that linkedin would continue to operate independently. there is that separation between seattle and san francisco. in this case, we don't know what salesforce was looking for, but linkedin's products tight end -- pretty well with what salesforce has going on with their customer management -- customer relationship management and software. the problem is that salesforce does not have the spinning power that microsoft does. this could be big for them. cory: i imagine they would have to take on more debt or something. i wonder further, if we look at the privatization, -- , you wonder if

microsoft sees a chance to build their own sierra software and compete with salesforce. jeremy: i absolutely want to leverage the data on linkedin for analytics -- they absolutely want to leverage the data. they want to be able to tell someone if you went to college -- where you went to college, if they know somebody you know. and microsoft has a customer base that maybe linkedin has not had yet. all these organizations that use microsoft products internally that may not have had anyone on linkedin accounts. cory: i spoke with a former linkedin executive who put linkedin on the outlook, and it was a for your project. it took that long to get into the sales cycle for microsoft stop presumably of -- microsoft. presumably it will move faster. reporter: that's another thing

it will have to deal with, the culture clash between a --t-moving silicon value silicon valley company, and microsoft, which is bureaucratic money and has not had the best track record with large acquisitions. hewlett-packard, compact, microsoft's acquisitions are almost always a disaster. clouds,our heads in the oracle posted earnings after the bell. change year over year, but profit is up 2% and cloud revenue up 49% year-over-year. earnings per share, 4% up. inres for oracle also up after-hours trading. joining us is rodney nelson in chicago. this idea that salesforce,

another company you follow, was acquire linkedin. now that we know this is true, what do you think of this? anurag: i don't know how much they are going to pay. i have no idea. i will have to go back and look at the balance sheet and look at the cash flow, but it may be for aifficult to swallow company like salesforce. microsoft, we all know, has about 100 billion dollars in cash, so it is easier for them to do this. understated indeed. from a competitive standpoint, needing salesforce to keep it away from microsoft? i think when you look at the data that linkedin can provide, it is an incredible asset for any company that has leverage to the sales cycle of any enterprise. major crmook at the vendors out there, it is

microsoft, oracle, and salesforce. salesforce saw the opportunity , andter a rich set of data i think microsoft saw that same dynamic as well, and it does not surprise me that salesforce made a bid, but i don't know how they would manage to pay for it without raising a massive amount of debt, although microsoft is obviously doing the same. going back to oracle, when you look at this quarter, they were boasting about the cloud numbers, but with good reason. they are saying the growth may be 70% to 75% next quarter. that's really impressive. anurag: all of this is very impressive. even though we know there is a lot of global volatility going on in terms of spending, despite that, the cloud numbers are very good. on the call, they said for your club numbers will be more than the past years -- they said that cloud numbers will be more than the past years. they are wanting to showcase a

lot more clout competition, which we have been talking about. it will be interesting to see how sales forces -- salesforce's bookings will be in the last quarter. cory: the oracle chairman has been speaking on the call. seems to be taking a shot across the bow. they just bought demand where, they are making acquisitions, but they are in the customer experience sales area. they don't compete in the largest category. [indiscernible] >and we think that gives us a huge advantage, that our footprint is wider. cory: rodney, the erp focus for oracle is interesting.

in her size -- enterprise resource planning software. oracle thinks this is their great strength to conquer the cloud. it makesure, and sense, because that has been their bread. they are the market leader in the software. there are a lot of other leaders out there when you mention s.a.p., you mentioned workday, salesforce is not a competitor here. a have a lot of increasing customers increasing attracted to an sap-based environment because of the amount of internal infrastructure that they can awnsize by switching to software service solution. i think it makes sense that they are having success. the challenge longer term for oracle will be how they handle their database business, which is increasingly under assault from open source solutions. those are the fraction of a cost of an oracle database. i think they will have a tough

time managing that transition, although i think they are making a lot of strong headway, and i think that is what will carry oracle in the long run will stop -- in the long run. in regards to the products getting increasingly complex, oracle says that his kid stuff, but they are losing market share to some of those companies. anurag: absolutely, no doubt about it, but at the same time, a lot of people using the oracle database. doing a fairly smart thing, to move their database to a service, so what they are saying is, we will manage your data in our data centers. if this succeeds, they should be able to fend off the competition from the lower end databases. rodney, is all the

catalogs that oracle has clouded a true cloud? they are generally a true to form cloud business. the infrastructure and service businesses a bit of a misnomer. a lot of the services tied up in that business are more like on premises data center revenues. as all it infrastructure service sounds nice because that is what amazon and microsoft are is ag to do, and that large opportunity for those companies, but in reality, oracle is not addressing those same needs in terms of storage for companies looking to leverage cheap infrastructure. i think that is probably part of the business that is a real misnomer. cory: i would say that if they are focused on the kinds of software they are selling, yes, it is not all the storage or compute stuff, but if it is some runhe compute that has to

your software and database, that seems cloudy to me. anurag: it is indeed -- rodney: it is indeed, and i would confirm they are trying to make this database as a solution work. i think there are some challenges that larry would not be able to readily admit in terms of those workloads migrating cleanly and efficiently. furthermore, oracle is not one that is going to come down on price. and you look at all those factors, i think there are challenges until that part of the business can be deemed a true cloud business. cory: interesting. i like the sap job, where you said your concur -- joke, where you said you concur. good to have you both. thanks a lot. worstker kvm having its day in more than eight years. shares dropping 18%. why? on thursday, the company would for $1.6 billion in

stock, but they are confused by but investors are confused by the move as well as the timing. is described as a slow growth asset at best. coming up, bitcoin prices surging to 70% for three weeks. what is driving that rally? we will break it down. ♪

cory: the price of bitcoin surging in recent weeks. it is a 70% move in three weeks, close to an all-time high for big -- for bitcoin. what is driving it?

of don't care what the price is, but i am curious about the reasons behind this move. what is going on? sonny: i think there are four reasons contributing to the price increase. the first off is china. there is a lot of activity in china. the price run-up happened about a month ago, and that is when china started to devalue and capital controls were going into effect. people are doing this to get into money with a currency that is not -- get their money into a currency that is not being depreciated. china has a very big, active bitcoin trading population. you notice a lot of the price 10:00 at nightt east coast time. that's when the price really starts moving.

we are having barbecues and all that at that time. now, we have a chart comparing the bitcoin price to the yuan price. it's just amazing. you see the yuan declining over that period of time by 13% and bitcoin up 210%. that's amazing. bitcoin was up to the dollar last year, too, up 35%. is second reason is britain possibilitiest are getting more real, and we saw the same thing last year with greece. the price went up with bitcoin again. cory: that's weird, because you have not seen the european bond yields responding with the brexit going to happen. what does that tell us about who is trading bitcoin and how they

have a different view of the world? sonny: exactly right. bitcoin seems to be trading more like gold. gold has been up over the last six months, so bitcoin has been up too. people look at the coin is a safe haven, almost. cory: it almost seems like a >> dual trade -- it seems like a dual trade. sonny: some of that is happening. the third reason is having a bitcoin network. that has been talked about in the news in the last year. having,ving, not like a hug. sonny: come july 10, people think the price will run up. people have known about this for a long time. i talked to one of the largest chinese exchangers last night, and they said a lot of buying is happening for momentum trading. it seems stupid. a lot of people think this currency is a lot -- is worth a lot of money, so when the price starts running up, people have a

fear of missing out. cory: sort of like saying one big potato should is worth more than two little potato chips. of.y: sort and the fourth reason, which i think is a little exciting, is that bitcoin adoption is growing globally. two years ago when the price was over $1000, the number of bitcoin transactions per day worldly worth $50,000. -- were only worth $50,000. cory: what are those transactions? i have not seen them pop up. sonny: bitpay is one of the largest transaction companies in the world. ago, 70% of our transactions were happening in the united states, now it is reversed. 30% domestic, 70% interactional -- international. , one of the largest gaming platforms, went live because there are people who want to pay that way. cory: it is that big

international usage driving this. sonny: yeah, you see people from venezuela and rozelle moving out -- and brazil moving out of their home currency and into the coin. we take bitcoins and give microsoft the currency. microsoft never takes the bitcoin. cory: so it's not as much of a working capital as it is for you guys, i guess. always good to see you. viacom.p, more drama at believed among is moving -- philippe delmont is moving from the board. movingtify could be closer to an ipo. the company's most recent higher. we will be right back. ♪

could spotify be moving

closer to an ipo? paul vogel seems to hint at that. vogel was hired to manage investor relations. will work under the current cfo. viacom.anges coming at sumner redstone has moved five members from the board, including ceo philippe dauman. this is the result of the battle raging. lucas joins us from los angeles. why is this happening now and not six months ago? you -- well, if reporter: well, if you look at amusementst national has been, they have been very methodical. they have taken multiple steps to slowly cut philippe dauman members, board

long-time allies of sumner redstone out of their lives. it all started about a month ago when they took philippe and george abrams off the board of national amusements and off a trust that will gather the redstone family's assets. steadyhen, it has been a dribble of new statements. this has been the big one that everybody has been waiting for, taking philippe off the board and changing the board such that national amusements has the vote to change management. cory: in terms of that, they own 80% of the stock. they have been charging in this direction, but we think this is -- reporter: a lot of the statements have been by representatives of sumner.

there have been a lot of representatives in this situation, which has prompted the viacom people to say that sumner is being manipulated, but there is no real evidence because nobody can see sumner. cory: exactly. does it matter? reporter: the burden of proof is on fire, and their people. there have been a lot of statements, so on and so forth. those are valid under law. it is up to viacom to prove that he is not making these decisions, that he is being manipulated, and other people are conniving for control of this media environment. cory: did we know who was on which side until today? reporter: the ones that were replaced today are the ones who have worked with philippe and longest time. a lot of the ones who stuck around are newer to the board. the surprise was tom dooley, the ceo of viacom. his remaining on the board will

only fuel speculation that he will be the next ceo, whether interim or full-time. cory: it's quite a story. this has been a deliberate, kind of slow-moving mess. reporter: and truth be told, these board members have not actually been replaced yet. philippe remains as ceo, the other four board remembers -- board members remain. this does not change until a delaware court decides if it is legal. that could be days, weeks until that happens. cory: lucas shaw, thank you very much. can voice in ai recognition change the app landscape? we will discuss the biggest headlines. ♪

>> you are watching "bloomberg west." director john brennan updated lawmakers on capitol hill today on the islamic state.

brennan says they are working to the employee operatives for further attacks on the u.s., and they are relying on guerrilla style tactics for territory losses in iraq and syria. of americans view the republican party favorably, include -- according to a bloomberg politics poll. lowest result for the gop since the start of the paul in september 2009. the democratic party is seen favorably by 49%. hillary clinton has won the endorsement of the afl-cio, the world's largest labor federation with 12.5 million members. the group had withheld its endorsement during the primaries when secretary clinton was challenged by bernie sanders. and a fizzle to 13 straight months, the global average temperature for 2016 is averaging 55.5 degrees, which

beats the previous record set last year. to blame, both man-made climate change and the el niño weather system. day,l news 24 hours a powered by 24 hundred journalists in more than 150 news bureaus around the world. from the bloomberg news headquarters, i'm shery ahn. i am joined by bloomberg's paul allen with a look at the markets. good morning. paul: good morning. we will start in new zealand, trading for 30 minutes so far on friday, currently off about 1/5 of 1%. in negativees still territory, but they have been creeping up, and we are expecting gains on the a sx in australia as well. we will be keeping eyes on shares on crown resorts. they had a pop yesterday after they announced they would spin since macau was weighing on the australian assets, but it has been received very poorly by the credits rating agencies.

continue tot will have declining cash flow for the results. crown yesterday was up by 12% on the news of that spinoff. taking a look at amc, what -- am z, one of the major banks in australia. the media says we could well see a possible sell down of units bank.mz that is some of what we are watching around the region today. ♪ ♪ cory: at the app developers'

conference earlier this week, there is a running focus on the apple watch. the updated operating system is said to provide faster speeds, making it more independent from the iphone. lyft cto towith talk about him with the new developments. perspective, we have been able to use new features for new wayslity to request a lyft. lyft is now going to be available this fall on the watch, and he will be able to request a ride with just a tap of a button and actually get real-time updates on your wrist. cory: so drivers had to previously do what? >> left out your phone, open that cap, and request arrived. the app, and request a ride. now the app will be on your watch, and it will be real easy

to get updates. cory: what can the os companies do to make it easier for a set of developers? itcreate api's to make easier for developers. the ability to plug into syria has never been available for third parties. the worldly able to use apple releases up until this release coming next fall. cory: how will opening this change the app game at? with me is the cfo of glide. we are super excited. voice is really the communication paradigm for the watch. it makes a lot more sense to talk to it then type on it. -- than type on it. interesting, is using siri collocated, or will it be as simple as a drop-in api? paul: it's pretty straightforward.

we are pretty excited about cap and talk as a new standard for messaging on the watch. onhave been typing keyboards, either on a desk and now on our phones, for so long, but now with the watch it is easier to tap and talk. people have different experiences with syria. i was on a boat with a friend, and he just grabbed his phone and yelled at it,, wife, now! -- call my wife, now! at peopleto yelling anyway. tell me about glide. ari: glide is a visual messenger used by million people over the world. we are excited about the watch, because what this means for the future of mobile. as soon as this thing is independently connected, it is basically a smartphone on your wrist. the primary use for your phone munication,ous e-mail, messaging, social networking. called calls,g

the people of my generation -- ari: i love calls, but most of the time, not practical. that's why video messaging has taken off. glide makes video messaging lightning fast, and all the videos you receive are stored for free on the cloud, so it does not take up space on your phone. cory: what about snapchat? people are using that for messaging, too. ari: glide is lightning fast and everything is stored to the cloud. also, our messages are 20 times faster than snapchat. cory: that's kind of important. ari: and 20 times longer. 15 seconds is the longest snap, and glide can be up to five minutes. using the watch, is it watch specific only? ari: no. we are really excited about the apple watch. from what i have seen, they sold 15 million apple watch is in year one compared to 5 million so that's three times,

and they did three times iphone sales in your two. -- year two. especially as apple announces a device with internet connectivity, that is a game changer for mobile. cory: what do you think the watch needs to do to get to the next level? ari: eat question. i think the tides have turned a little bit in terms of how the press has reacted to the apple watch this week, and that's ed on thepple's focus number one thing for apple watch users, which is performance. it is how fast the apps are and how quickly they load. a hit that head on. i think the next major thing for the watch is independence. as soon as this thing is independent and has an even

faster processor, i think we will see the developer ecosystem take off and disrupt industry in a more profound way than we saw with the iphone. so the battery light will be less, there is a faster chip, so the our consumption could be worse. -- the power consumption could be worse. see.we will apple will find a way to shrink the other components and make way for a larger battery, and it will have even better battery performance. the bigger phones, i feel -- when i go for a run, do you think that happens this year? ari: i hope so. you are asking me, i think it will. i think the apple watch 2 will have independent connectivity, and that will be a game changer. cory: so you are putting your company and assets towards developing this thing around the

hardware that you don't know will be there. ari: it's my job to skate where the puck is headed. we hired one of the early apple watch engineers last summer. we have quietly been developing something special for the watch. we are really excited about apple watch 2 and what smart watches will mean for developers , and all sorts of user experiences which will give fundamentally disrupted. ari, the ceo of a company called glide. coming up, mark zuckerberg and priscilla chan made their first investment. in laterget to tune this week. we will give you all the best interviews from this week, including elon musk and steve jurgensen. are we living in a matrix like

simulation? yeah, that's nuts, but this is "bloomberg west." ♪

cory: mark zuckerberg's new venture is making its first bet. the chan-zuckerberg initiative announced it will leave a $24 funding round for a company called andela. the start up trains stop her developers in africa and gives them full down -- full-time roles and international companies. the founder joins us right now. this is really cool. this businesshow

works. exactly as you said, we find genius level young people across africa and give them the exposure and experience they need to operate as team members with top tech companies around the world, facebook, microsoft, google, and dozens of tech startups around the u.s. and africa. cory: tell us about what kind of education these people need to get on board. jeremy: 75% of andela fellows actually come with a background in cx or electrical engineering. but we are focused on really is, how do you help them get the context and the ability to engage is a full team member? that requires the combination of technical as well as soft skills. cory: one countries are we talking about? started off in nigeria and have been there for

two years, and now we have been in kenya about a year. we will be announcing a third country in about three months. cory: we have a quote from mike -- from mark zuckerberg, we live where i believe we support innovative models for learning, wherever they are around the world. what andela is doing is pretty amazing. kind words. how does this help to accelerate this? jeremy: those are kind words. it has been amazing getting to know the folks, and mark as well. what it does for us is help us do more of what we are already doing, friday next or near a folks across the continental and helping them connect with companies. one of the challenges we face is, given the constraints on capacity, we have not been able to work with as many companies as we would like to. we only admit about .7% of applicants. cory: back that up. tell me that again. .7%? jeremy: .7%.

cory: how many applicants are we talking about? jeremy: about 40,000 at this point. cory: for how many positions? jeremy: the little over 200, so a small number. buts starting to scale, there are just not enough. the skill set. across africa, you've got the continent of 1.1 billion people, the youngest on the planet, but also the fastest growing. it turns out that brilliance really is evenly distributed. business called sam a source that talks about something similar. how are they different? jeremy: they are great. i think they're focused less on high-end software development and more on creating as many jobs as possible, and i respect that immensely. there more focused on rhodes scholarship for africa. it is a very selective ram that

-- selective program that connects these developers in with the top engineering organizations on the planet. cory: what are the companies looking for specifically? how doaylor the soft -- you tailor the software training to what the companies' needs are? jeremy: it is tough to find great developers in general. the skills gap is a very real thing. their talk to companies, primary interest is what the person will be like as a team member. how will they engage in day-to-day interactions, and what will it be like when they show up at a 9:00 a.m. stand up? that is something we have to be able to train on from a soft skills standpoint as well, because if you are not going to love working with someone, it is going to be typed to make that work long-term. cory: what does the training look like? students arrive to do what? today sit in a chair, is it a big classroom? campuses inave

nigeria and kenya. those students come into our weice every single day, and have subsidized housing as well, but these students are sitting down in the morning, working with companies around the world that are our partners, as full members of that company's infrastructure. software development training is much more like a craft than a degree program. you learn by doing. that's really cool stuff. congratulations on the investment. it sounds like you will do a lot of great things and help a lot of people. andela ceo jeremy johnson. no relation. coming up next, what spacex is trying to do for a rocket launch. we will introduce you to planets, next. as we go to break, take a look at the mini vision next 100, a driverless concept from bmw. a sign of bmw preparing

for a future where no one owns a car, or at least the owner or the driver does not. ♪

cory: a story that we are watching. realityetive augmented

company magically if will team up with lucasfilm to create star wars content from the still unrevealed technology. neither company unveiled specific plans. of rapidly declining cost satellite technology, one of the promising innovations of the aerospace industry. it is easier than ever for telecom companies to get t into orbit. take the startup planet, which takes high risk photos of the earth to track things like deforestation and the growth of syrian refugee camps. i caught up with the ceo and asked him which technological change has taken place in the last two years that has helped planets take off. you can put up hundreds of thousands of satellites in any one rocket. the cost differential of that means that you are satellite is [indiscernible]

we are not talking that the customer satellite, per se, but it is less than anyone else. just between us. is it a lower orbit? >> absolutely. that helped us to give them the latest technology. we put them in an orbit so low, that they orbit within about a year or two, and then we replenish them with the latest technology. there is a huge number of use cases for our data, and the kind of client that we have is consumer mapping. ,here are people in agriculture because we contract crop yields -- we can track crop yields. cory: there is a sort of interesting new space race, if you can call it that.

what do you think is driving this? is there a new level of creativity? 20 years ago -- shown theree have is a different risk approach that you can take with satellites. instead of putting all of our eggs in one big basket with a billion dollars satellite, you spread across lots of different launch vehicles and satellites, and if one of them dies it is not the end of the world. we are treating satellites more like the i.t. industry has treated it. if one breaks, drop it out, no big deal. opposed to these exquisite, high and satellites. there is the risk approach, and in the minimal invasion of the technology underneath. cory: and will this be more straight line in terms of developers? i consider the way we build satellites to be strapping space

to small's law, because every time a new hard drive comes out, a new processor comes out, we stuff him in, so i feel like we are constantly increasing capability. [indiscernible] comparing photos every day to a consistent new level of data? sonny: absolutely -- >> absolutely. i call it the global since a revolution. they are in pockets, they are in space, in the ground. we are collecting satellite imagery like it is the global snapchat. all of these sensors contribute to a sensing revolution. what can you do with that?

you can see changes as they happen. before now, we saw planets relatively statically. you see static maps or static imagery online, on google earth or what have you. our imagery, every picture we get, we see the earth is changing. your mental model of the earth is static because you see a static map. it is naturally changing over time. we see a river move. trees got knocked down. there was a farming field harvested. long.gles move, so we track all of that, and that enables people to make smarter decisions. all of this is dependent on understanding change. cory: that is so cool. will marshall, the ceo of planet. time to find out who is having the best day ever. today's winner, streaming-only musicians.

the company behind the grammys is announcing that it is thatming only artists -- streaming-only artists can now win a grammy. that could be a boon to spotify and musicians making that streaming-only music. that does it for this edition. tomorrow, social media defending against a mystic terrorism. -- against domestic terrorism. ♪

>> from our studios in new york city, this is "charlie rose." we continue this evening with our coverage of the shooting in orlando. the tragedy has highlighted the distinctive challenges posed by lone wolf attacks. it also raises questions about fbi procedures going forward. the bureau had opened and closed two terrorist investigations into the shooter, or -- omar mateen. his wife is now the subject of a federal investigation will stop up -- investigation. authorities are looking into the investigation and knowdg