on officers in the line of duty. president obama: from the moment youput on that uniform, have answered a call that at any briefestven the interactions may put your life in harm's way. mark:ite house says -- the white house says he considers the attack a racially motivated hate crime. bernie sanders has endorsed hillary clinton for president. the two former rivals appeared together in new hampshire today. theresa may has less than two days to build a team to rescue the u.k. from its worst little crisis in a decade. she replaces david cameron as prime minister tomorrow. china is calling a landmark ruling on the south china sea nil and void. china has no ruled

rights to the resources within its borders. china claims territorial rights to 80% of the south china sea. global news 24 hours a day powered by 2600 analysts and more than 100 20 countries. i'm mark crumpton. emily: i'm emily chang and this is "bloomberg west." amazon prime day -- a couple of hiccups right back memories of last year's online reviews. can they deliver on their global sales bonanza? plus google underwater? it's not the only player looking to the seabed for faster

service. we will dig deeper into the subsea cable industry. and the u.k. unplugged? written's decision to checkout of the eu stokes fears of a major tech exodus? we will ask oracle ceo mark hurd for a fiction. first to our lead -- amazon prime lead. new numbers on the lack of success on amazon prime day. sales were similar to last year. sales in u.k. are up 12%. shares of the everything stored shares of the everything stored dipped earlier in the day on reports of lackluster numbers. the second annual one-day sale event experience a challenging start. but notixed the issue before prime day fail circulated on social media.

i should preface this by saying even though amazon prime day did not get great reviews last year, they say they still sold more than black write a the year before. having worked at amazon in many different capacities, what is your take on the actually successive today? i worked for them a little more than five years. i suspect it's a little bit more than revenue. there are three things to consider. they are trying to push newer categories into the market. 27,000ed at more than products being sold on the prime more than onend in four items are apparel, which is not the case last year. there was also a lot more electronics stock of the range of deals, everything from a 55

inch samsung television to a toilet nightlight, which i didn't know existed until today. how much impacted the technical issues have mark guest: it might have had some impact on sales but as far as executing on their mission statement, i think it was a success. from -- the conversion of prime members is on par with that of actual -- of black friday and cyber monday. that helps to drive more vendors and more growth in selection which yields and acceleration in the number of units sold which we have seen for the last four quarters. driving prime membership, there may be some pickups as far as converting from particular sales

but i think the mission was a success. emily: amazon releases for a little information about how they actual -- how they actually perform, but when it comes to expanding beyond physical try tos, getting them to a grocery service or restaurant delivery service, how would you rate the success of that guest: it has in a pretty good success. even testing the alex cap where you are getting $10 off if you there isst time user another agenda, if you think about it, we are about 90 to 100 days away from the massive holiday season where amazon and other retailers make a killing. their software

systems to stress and test their soft -- their software before he goes on prime time. emily: i want to talk about amazon ago because there were specific deals related to the echoes. haven't know how many they sold but i was speaking with mark andreessen about amazon act go i was -- take a listen to what he had to say. mark: it is clear that amazon has lapped everybody, at least this year and ago and alexa are fundamental breakthroughs. it's shocking for people in the field how well they are doing. what the consumer responses for people who are not us is really spectacular.

they've set a new benchmark for what it means to have interactive ai. there's going to be a certain amount of catch up happening. it is cool for knock knock jokes and getting the news, ordering things, but still , the capabilities are fairly limited. how much potential do you see for the growth of the echoes that form mark -- from the go? i'm an avid user and owner. we know they have sold millions of units so far and what they are trying to do is proliferate different third parties like automobiles and so forth. they are the first successful

entry into the living room we have seen. the one caveat i tell investors is i would not be dismissive of google in the virtual assisted -- virtual assistant effort because they have superior language processing capabilities in many languages around the world and the ability to process .ore structured data not this missive of google but very upbeat on what echoes has become. were additional promotions this month. which retailers are doing well and who is not doing well when it comes to competing with amazon? at the datawe look of how well amazon is doing against target or toys "r" us in the deals coming up on prime

day, it is surprising it was than weper discount expected and amazon was about andcheaper than walmart what they were featuring on prime day. with target, they were about 29% deeper. so some pretty deep discounts. what this means is the shopper is winning. there are retailers who are winning the game. they haveor instance, done a tremendous job focusing on a particular category, which is back to school, and they have come out with an aggressive program which are relevant to back to school. the point is if you focus on the right category and right customer, you can have a good and solid place. a former amazon executive

and an analyst, thank you both. we will see if we can get some more information later today. turning to tesla -- highway safety regulators are asking elon musk to hand over information about their autopilot feature as they investigate whether the automated driving system is defective. caras news when a model s crashed into a truck in florida, killing the driver. two other crashes have been reported. officials are looking at the automatic raking system and other systems in use. elon musk says he has no plans to disable autopilot. and other story we are watching -- hyperloop one is being sued by a cofounder over claims of mismanagement. suit alleges the company's

top executives engaged in financial misconduct, abuse and physical threats, marginalizing many employees and jeopardizing its future. issued thene following statement -- these employees tried to stage a cu and failed. andry to stage a coup failed. coming up, senator al franken is raising the alarm over pokemon go, citing privacy concerns over the latest hit mobile game. and a stock we are watching -- work day on the move, or percent on speculation it could be a takeover target. this is bloomberg. ♪

new mobileendo's game, pokemon go is still the talk of town, sending nintendo shares soaring as well. along with that success has come concern over privacy issues. senator al franken sent a letter voicing concerns about the extent to which nine and take may be collecting and using and sharing personal information without their appropriate consent. my guest is a longtime mobile and gaming investor. the privacy issue was initially when you signed up, the app got a lot of your google or gmail account information. they have released an update that they say fixes it, but given your experience, how serious do you think this issue is? guest: i think is serious when

it includes children. pokemon is making mobile gaming accessible for very young children you're seeing out in the street that are not engaging with their parents for permission. question thento children's online protection act and whether it was a mistake or not on behalf of niantic, it needs to be remedied quickly. emily: what about safety and security issues? guest: i think it calls into question's -- into question items about trespassing -- do you own what is on your phone? does it raise questions about indemnification? questions like that come up as well. emily: you are very deep into this, you own equipment and play a lot of games.

isn't it fascinating to be talking about these implications a week after the game is launched estuary that is how successful adoption has been. nintendo probably makes a fraction of what niantic makes, but this whole location-based gaming is going to get bigger and a new avenues of monetization. the intention they can get their mojo back to invent gaming back has gone up. emily: you mentioned augmented reality but you don't think this is an ar game? guest: absolutely not. it is much for a location-based game.

you are seeing pokemon flying in the space, there's no dynamic mapping of real-time around you. data drawing upon google's . the only dynamic mapping that seems to take place is what niantic is pushing. you might go to a particular location and a new pokemon appears there. that's not that -- that's not representative of real-time mapping. do you think it is ar? guest: the type of game is not but if you look at the location-based games but they did not have pokemon behind them and did not see as much. you need to have mobile devices with you for the future zuckerberg is pitching is that it is going to be a mobile

device. they are not native ar games. niantic likes to call it real world gaming, so the genre is location-based. iily: killing your battery assume can be resolved, but there are larger issues. can they keep up with them? guest: i think it is going to last for a wild. right now, we have a single player mode. you cannot have layer versus player battles. you are doing it at locations. as player density increases and you can login and play against your friends, i think that will see a whole new leg of this game player base ishe robust enough. gaming is expected to be a $57 billion market.

has it outs -- it for a while and they are taking bringing mario on mobile and making these accessories and son support them forth. genre might go beyond pokemon as well. there are a lot of avenues that have opened up. see's the confidence you right now but as far as the financial impact, it is very dicey. what are the implications for the rest of the gaming industry? guest: i'm not going to use it to discuss vr or a our gaming, but we are in a very mature phase in mobile right now. celebrities,and kim kardashian half game and a user acquisition,

it's necessary to get people's attention in a crowded mobile market. we saw the surge in the stock price for nintendo and i think people are excited about the made to -- about the amazing treasure trove coming to mario andembracing this platform are licensed ip is helpful. emily: what does it mean for ar and vr? guest: i think it's better understood through snap chat facial filters. people could argue that ar from was -- was from qr codes. ar is coming when magically been google tango phones are out there in the public and that is still a few years away. thank you so much for joining us. we will see what happens tomorrow. coming up, why one music streaming at has emerged as a major layer in the google ad space. stay tuned.

this is bloomberg. ♪

emily: turns out there was more behind these enjoying conflict last month that forced the cancellation of a planned meeting between donald trump any intel ceo. he said he had canceled the gathering at his home to discuss key issues but backed out when it turned into a fundraiser. he has not endorsed candidate and says he will engage with both campaigns. the amount spent on digital ads is skyrocketing. hillary clinton's super pacs have begun making a push on pandora. why pandora? about a quarter of the app's listeners are latino and candidates are targeting young minority voters. tim higgins joins us. what are the surprising trends you have seen when it comes to changing in digital ad space?

tim: we are looking at a billion dollars in digital ad spend compared to less than 200 million just four years ago. talk to me about pandora in particular and what has made it such a useful way to target potential voters. on the head -- almost a quarter are latino and that is a demographic both parties are trying to target this political season. one of the reasons pandora has emerged is they put a lot of resources into latino and hispanic music in the last three years, bringing in a lot of mexican, cumin and latin american music and they can target that community with that. emily: i interviewed the founder of pandora who said last year

that pandora can tell right away if you are a demo rat or republican based on what you are list into. have they been targeting latinos specifically? tim: they have been able to talk about whether someone prefers spanish-language demographic information that is useful for when they want to target what kind of ads they are sending to people. we looked at ads from the pro-hillary clinton super pac targeting folks with that that talk about donald trump's payments about deportation, for example. emily: radio has traditionally been one of the best ways to reach these folks. is streaming radio encroaching on that territory? : that may be the perfect marriage -- it may have been radio but if you look at demographic information, young than there more likely

index to be using their mobile devices for a long time and so becomes a very powerful tool to reach them and when you look at the potential of latino voters this like oh, a lot of them are young people. something we will continue to follow. a very important voting block for this election. thank you so much. somehow our tech companies dealing with the u.k.'s decision to leave the eu? we caught up with the ceo of oracle for their next move. if you like us, you can listen to bloomberg on the radio. this is bloomberg. ♪

mark: i'm mark crumpton. let's begin with a check your first word news stop bernie sanders has officially endorsed the hillary clinton for president. speaking at a joint appearance today, sanders said his for more

-- his former rival make an outstanding president. mr. sanders: there is no doubt in my mind that as we head into november, hillary clinton is far and away the best candidate to do that. meanwhile, a retired four-star navy admiral is being that it is a potential running mate according to the "new york times" citing a person familiar with the matter. he served as the former natives of theme allied commander. nbc news reports on trump is holding an event on friday where he may showcases choice for vice president. presidential nominee is attending a rally with governor mike pence. italian authorities say the death toll could rise following a head on collision between two commuter trains. 22 were killed and many more injured.

trial are expected soon in saudi arabia over last year's collapse in india that over a hundred people. it has been linked to a construction effort in the area. it is unclear who will be charged. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. new just after 6:30 p.m. in york. i'm joined by adam hay with a look at the market. adam: looks like the bullish sentiment should be washing through asia today. another record on the s&p 500 overnight and dow jones industrial average record. we are looking at a .6% increase on futures in australia and the yen is weakening so that is

looking good for japanese equities. it probably will open 2% or 3% higher than the close yesterday. interest rates today and a lot to keep an eye on for what should be a pretty good day for traders. i'm adam hay in sydney. emily: this is "bloomberg west." i'm emily chang.

more to our coverage now on the brexit and how it is affecting companies in the united states. , saysacle ceo, mark hurd the software giant is poised to whether brexit. mark: we are committed to the u.k. and europe. a are fantastic markets for us and we are to customers in that market. we are going to help them anyway we possibly can. >> would you have to rethink your operations in europe or the u.k. because of regulations and the fourth? mark: we are going to be very active in our customers and aggressively focused on the market. >> what issues would be on your radar but were determining whether determining that you will tweak things in the market. the availability of

people, do we have access to quality people coming out of quality universities so we can build our workforce? we make various decisions on where to house service support sales operations and we would like to bring those as close to customers and talent as we possibly can. most of our decisions when we place development centers revolve around access to talent, access to markets and customers. >> how concerned are you about the issue of immigration which has been used to fill the gap left by a lack of investment? aboutfor us, it is talent. we have 140,000 people in our company, so we have a large workforce that is very diverse in terms of skills and talents, so we go to where the talent is

an higher where talent is. , meaning we early bring people into the company, sometimes out of and we try to promote them and train them inside oracle. it is very important to get the talent and be able to move the talent across the company's. >> i want to look at the m and where we saw one of the biggest in the history of technology, microsoft buying linkedin. some say lots of synergies to be had. does it impact oracle in any linkedin is a company with a half consumer and half enterprise play but it will not affect our strategy. we expect to lead in the cloud , so a have a lot of that

lot of organic development from the r&d perspective. we changed almost everything in our company in the last several years, embracing the move to the cloud, so you are not going to see a change in strategy. >> you are cash rich and we think of relations of companies right now, they look reason, even cheap. what would make sense for oracle? we feel very good about what we have done both him and organic r&d perspective as well as what we have hired. we've made a couple of acquisitions we announced in the april-may timeframe that closed in the early part of june and those are the kinds of acquisitions you have seen as make in the last several years. cloud software

services and acquisitions, dedicated to an industry application. of strategic sense to us and valuations were i would say reasonable and we think we can actually ask cute them. hurd there. now to another story we are following -- facebook and microsoft have an agreement with the social network announcing a plan to use microsoft 365 software service. employees will have this to the e-mail and calendar services but will be prohibited from yammer and skype. facebook employees use its own internal service which does not have an option for e-mail. , dual lingo is looking to capitalize on huge market. we will have an interview with the ceo, next. request" onch "

television and starting this streamedwill be live on twitter. stream is also going to nfl games in the democratic and republican national conventions. this is bloomberg. ♪

emily: the amount of revenue you to paid music rights holders was slashed in half last year despite a 132% increase in usage. other streaming site typically pay a minimum for streams regardless of revenue while youtube pays a share. although u2 gave content owners a 15% raise, the number of streams on their sites skyrocketed 751 billion,

potentially generating $755 million in revenue. this comes as the music industry is in a standoff with youtube over copyright law. , the companygo backed by ashton picture and counts over 110 million users worldwide. caroline hyde caught up with the ceo in berlin and asked about the challenges of scaling so quickly. the challenges is keeping the servers up. hopefully it is going to continue working well. -- we'veere any areas discussed the chinese -- we have discussed chinese for example. >> we do not teach chinese yet. in the world,

learning chinese is not as big. the one that is big for us is learning english for chinese speakers. we want to concentrate -- our biggest markets are the u.s. and latin america. then comes europe and that is why i'm in berlin. we are trying to grow more in europe. about 30% of our traffic is in europe. so we want to grow here. >> are you optimistic about the growth attentional in europe mark we are talking every day andt the the you -- the eu england that thing it. are there any concerns you have question mark >> i'm optimistic about people wanting to learn language. i'mhe last couple of weeks, optimistic about the need to learn languages. countriesso many

speaking 70 different languages so close to each other, so it is very different. in the united states, learning languages quite a hobby whereas people here need it for work. there are a lot of people from spain working in germany. >> what about talent. it's a scarce resource when you're building technology. how have you managed to find the best coders and developers? >> it has actually worked out pretty well. the fact that we are a mission driven company has helped us out quite a bit. we are able to get better talent than if we did not have the mission. people working from spain who are europeans would like to get a u.s. visa but we have not been able to get them one. >> is that what you would call on for the next president come

whichever candidate it might be? >> this is the kind of thing that when we presented duolingo to president obama and said we could use more resources, i think this is one of those things most politicians want to fix that it never gets fixed. >> and you have one candidate who is running on the ticket to build walls. is that a concern? >> it is a real concern. because we are language learning company, more than 50% of our people are from countries that are not the united states. quite office, people are uncertain about that. >> talk about the funding environment. you are a serial entrepreneur and this is your third business. have you been knocking on people's doors or have you been

knocking on theirs? >> most of the time, we have had people knocking at our doors. we have been able to raise $83 million of funding. we have been very fortunate to get good investors. it's an interesting company to invest in because we are mission driven. other companies, the goal seems to be to make a lot of any. i make itt investors, clear that we are going to remain free. we're going to try to make money, but we are going to remain free. it's interesting to see who backs out of that and who continues in the running. fortunately, the ones we have are all very supportive of that. ofly: that was the ceo duolingo. now to google taking a step toward ditching the world's wireless the work into one seamless coverage.

so americans can use the 135less service in companies and google is lifting the speed cap on its overseas service. google is offering this for a flat rate. up next, we take a trip to the ocean floor and check out the undersea cable google just spent $300 million on. tomorrow, do not miss the global strategist of elian's global investors. this is google -- this is bloomberg. ♪

emily: google gets more time to answer european antitrust charges. the eu alleges the company wielded power over smartphones to crush competition for mobile

apps. they do have until september 7 to respond to a statement of the junction. by sending the statement, the eu paves the way for potentially huge fines and radical changes to how the company operates. after months of clinical agreed to the eu has an agreement between the eu and the united states. than 4000 companies, including the top and it firms are part of the deal which was established after the european high court struck down a previous agreement, saying europeans were not specifically protected. the agreement depends on having a privacy shield in place. today, we are geeking out about .ndersea internet cables the power of the internet is running on the ocean lord. they have an old by consortiums

of international companies, but they are getting into the game as well. google has just come at a transpacific cable while microsoft and facebook are due to start work on and alanna cable in august. -- atlantic cable in august. >> google has just switched on a new internet connection. the engineers who made it are calling it faster. it links the u.s. and japan, sending links across the ocean at speeds of 60 terabits a second, 10 million times faster than your average cable modem. it stretches from oregon to japan, 9000 kilometers. it costs $300 million to install. this tablenot built alone. plusteamed up of asia

biggest telecom providers. but it will be a serious asset to google when the company opens a major data center this year. google is not the only big tech company in the game. they spoke and microsoft are working on an undersea cable -- google and microsoft are working on an undersea cable that could be even faster than google's cable. it's nothing short of an underwater arms race to own the internet's infrastructure. joining me for more on the business of the subsea cable both -- is jonathan yum -- what advantage is it to companies like google over companies that do not have a mark jonathan: we have not seen a lot of product like this but

it's not the first one undertaken by a content provider. google has been in this game for at least seven years, starting with the unity project, transpacific and 2010. they have been involved in several subsea as yannick cables and other content providers have him on board as well. the advantage google gets from something like this is economies of scale. it has gotten to a point where a handful of content providers have such incredibly huge demand for bandwidth that it makes more sense to provision it themselves and rely on other carriers. emily: talk about the process of laying an undersea cable. how obligated is it? is the cable floating in the water or is it under the hand eschewed mark jonathan -- under the sand?

jonathan: once you start the project, it can take a few months to completion but it begins with doing extensive mapping of the ocean floor, optimalfor up all -- routes avoiding seismic zones and heavily dished areas. dredging operations from fishing fleets are a major source of cable breaks. but once you start laying the cable coming up specialized ships spooling it out along the path and just laying the cable right on the floor. there's a significant amount of armory protecting the cable but in reality, these systems lie on the ocean floor until you get about two miles to shore. telik geography is expecting a big surge in the

simmering cable market. where do you think you will see the most growth? jonathan: we will see it across all of the route we track. two years, it has been concentrated on one or two route but in the next few years, we will see developments across all major routes. we will see major systems come online, southeast asia going easternthe red to europe, more transatlantic ins, more latin american cables. talk to me about the broader infrastructure. is there significant room for : they aret? jonathan improving all the time top what's interesting is as improvements become available and as technology changes, existing cable systems are able to take advantage of these improvements as well as new systems.

while you have many older system still in operation, there came the ladies are never stagnant because as new capabilities come online, they are able to install that type of equipment and extend their own capacity significantly. does that mean capability or capacity, we are not close to running out anytime soon? jonathan: absolutely not. the only way capacity would run out is if carriers decided to stop investing in their networks and that's not going to happen. when it comes to these subsea systems, what is interesting is the utilization levels remain low. as they increase their capability to handle more capacity, that stays ahead of the actual capacity being added. around 20%. hover stuff.fascinating

thank you for joining us. today's edition of out of this world, nasa released a picture of mars dunes that appear to have crazy similarities to morse code. there most likely formed from an asteroid impact crater. picture was taken from the art -- from the mars orbiter. this edition of -- this edition of "bloomberg west." ♪

>> from our studios in new york, this is "charlie rose." charlie: we begin with the aftermath of the shootings in dallas. the shooting is in morning after police officers forgotten down at the hands of micah johnson. it was the deadliest day for law enforcement since 9/11, on the heels of two caught on video shootings of black men in louisiana and minnesota. president obama will speak in dallas. joining me now