second female promised her. the prime minister wasted little time avoiding phil hammond as treasury chief and named boris johnson foreign secretary. the former london mayor led the brexit campaign. growlation continues to around donald trump is likely running mate. trump map with indiana governor mike pence today. house speaker newt gingrich also men -- also met today with mr. trump. his name is also being loaded as a possible number two. funerals were held today for three of the five police officers killed in dallas, texas last week. services fornded the man. -- the men. the pentagon confirmed the death of a militant leader responsible for orchestrating multiple attacks in fact them.

he was killed in an airstrike. he planned the 2014 attack on a skill -- on a school that killed more than 130 children. global news 24 hours a day powered by more than 20 x hundred analysts and analysts in more than 100 26 countries. i'm mark crumpton. emily: i'm emily chang and this is "bloomberg west." prime dayasta triumphant second coming. its biggestit was sale day ever. we discussed where they go from here. plus google plays defense -- the tech giant fighting back against claims its piracy protection tool enables bootleggers. and moon shots under the

microscope. we will ask laura ultra-secretive products -- projects eating developed in the shadows. day -- amazon said worldwide orders climbed more than 60% over the last year. the hot seller is the video streaming fire tv. it helped the company triple sales of devices. contradicts culinary estimates from tuesday suggesting sales were flat compared to last year. amazon shares popped before closing down half a percent. numbersbreak down the is our bloomberg editor at large, cory johnson. amazon says it was the biggest sales day ever, contradicting some numbers we got yesterday. how big a success you think it was? mark: i think results were generally in line with expectations. they said was three x growth for

third-party sales -- they always give you these puzzles and never the exact numbers. probably a billion in total gross sales. one year ago, it was 400 million, so i think that's roughly in line. he did not gap up on this news. the fact that only moved half a percent probably tells you it was as expected. emily: why such a gap between what third-party advisers were saying and what amazon is saying? cory: i think it has to do with the fact that they could not see a lot of the traffic. as a separate story and they really good one, it shows our ability to. into amazon is more limited than we thought because those numbers were so off from what we've all -- whaty for top emily: we saw yesterday. echoes do you

have? cory: i have one and i'm trying to get a dock for another. mark: i think they have a runaway hit on their hands. we will have several iterations and it will get smaller and more functional. i think it will lead to incremental sales like other devices have. that's one reason third-party sources that had no idea what was happening at amazon. the other thing is third-party sources only track third-party sales. cory: they obviously don't measure very well. the emphasis on amazon stuff, what is an important part that help to skew the numbers, it shows how they are building an ecosystem. one of the important things added with the ability to shout out to another room from the refrigerator that i need to, i

need tomatoes, i need whatever. they are saying customers purchase on average one alexa exclusive deal using their voice per second. cory: that's amazing. mark: there's also something else that is important. there's the number of new prime customers they bring on. people are with amazon the more loyal they are. one way to get you to be loyal is get this expedited shipping and like these free videos. the one thing they did not discloses how many new prime members they got. they will buy more frequently and by a broader range of products. emily: the average of a prime membership is seven years. i assume it will only get longer for cory: that's why they are spending 2.5 lien dollars on

content. more retail experience will happen within the amazon tent. emily: where might you poke some holes in these numbers? there's a lot of information we don't have and given that this is the second year and you benefit from everything you learned in the first year, maybe they learned that hammocks were -- inr in july for top july. mark: there were a lot of aggressive price offers. fashion and apparel, it's assible you could see near-term negative margin surprise. that's one thing to look at but the days sales are important but just as important are these new prime numbers that we don't have much visibility into. they are extremely loyal and

they are willing to spend a lot of money. cory: you don't want to poke a lot of holes in it. from markheard andreessen at our bloomberg technology conference where he says he believes amazon has lapped all of the other big companies in ai. amazon is think positioned compared to other tech giants out there? are they in a better or more unique condition? it seems like they could hit a trillion dollar market cap. mark: it's hard to say anything will say that i was with the head of amazon devices yesterday. one of the things they are doing is they are trying to make alexa a ubiquitous that form. they're going to integrated into

cars. they are going after google and going after theory. it wide open for developers, so this would be a change. one analyst says there -- says they could be a $3 trillion company. the way to poke a hole in the amazon story is the margins. any margin you want to look at is pathetic. street fantasyl that they will someday turn on the profit machine does not hold a lot of water. once they jack up prices, can they close up all the retail in the world? the question is with high prices, could they generate profits? i think they are content to keep these low margins for as long as asy can for top emily: -- long as they can. emily: what about the kindle?

mark: that's one of the devices that gave them the confidence that they could sell this at a profit. you buy a kindle and guess how many books you are going to buy -- anything that reduces friction. give some of the a device and let them carry around the shopping cart, not just to do this but to speak out to your echoes device. that's the message behind the amazon device tragedy. google cannot cross sell things effectively. amazon is the ultimate crossover. they can get away with selling devices that cost. cory: when they launched the fire phone, it was a total face flop. at go was announced to silence. they are brave to try things but cautious to look before they leave. p.eav -- look before they

story has beenhe --ping, rising cash flow for free cash flow. we saw an acceleration in north american retail growth from amazon i think due to prime and the rollout of third-party dollars. now we are just starting to see international markets in europe and japan and we are starting to see good traction in india. i think the next leg of the growth in the stock is international retail. does that accelerate like north america did? emily: how formidable is alibaba? mark: in china, game over. there's no game for alibaba out side of china that we have seen. emily: what about walmart?

cory: you see walmart struggling. walmart has not been able to put out the complete offering and you see amazon taking share from walmart. mark: amazon has changed the equation. they have defined convenience as speed of delivery. they went from an investment cycle to guarantee they had the fastest delivery, next day, same hour delivery. that that them years ahead of any retailer and you see have miners trying to lease out that space. i think they are too late. i think amazon's competitive lead has widened. emily: thank you. coming up, google is beefing up its fight against piracy. that is next. and a stock we are watching -- mobile accessory provider

gaining may be due to the battery draining affect pokemon go has had on phones. this is bloomberg. ♪

emily: google is getting serious about fighting piracy, giving rights owners a way to generate income. youtube has generated to the

lien dollars for rightful owners, double of what it did in 2014. that comes hot on the heels of criticism from the music industry saying that youtube is rife with piracy. talk to me about the improvements you have made to content id in the last two years. releasede report we details the steps we have taken to fight piracy in regard to the youtube content id system that allows rights holders to detect and monetize content users are uploading has generated more than $2 billion. ways in which this has transformed and revolutionize the content and creativity space is this matching. when content id first launched,

rights holders were using this technology to detect their content but the vast majority set their settings to block, so the content was removed from the system. so now more than 90% of these claims are allowing the user content to stay up so creativity can drive and the audience can new videos and 90% of rights holders are choosing to leave the content up and choosing to monetize it. that's were the claims of the user generated content comes from. folks inere are still the music industry who think content id is an ineffective effort. how do you combat that effort and mark -- combat that effort? guest: one key piece we realize was for the music industry, 99.5% of their claims are automated. telling us the systems

are working extremely well. we saw u2 has paid out over $3 billion to the music industry in particular. so there are examples we have poisedcently of a video to hit about billion views. that's super successful and phenomenal. mixes ander generated mass job -- mash ups have help to drive that song to the top the charts and created a new revenue streams that never would have existed before content id existed. so we see it as a win-win for rights holders to find new ways to generate income from their online content. emily: talk about the avenues this has opened up for artists. of all different flavors on youtube are earning revenues. tens of millions of creators are .arning revenue on youtube

labels and publishers and songwriters can use these tools film studios, news broadcasters, educational content. another wonderful example was the use by disney when the film "frozen" debuted. disney was very smart and forward thinking. a letter the user content stay up and stay on the web and once the kids saw those videos and love the songs, it drove ochs office ticket sales and help it stay at the top of the box office for a historically long time. emily: record companies and publishers say that still fails to identify up to 40% of their recordings. where do you see room for improvement? guest: i think that number has been debunked by many scholars.

the music industry, i mentioned the majority of rights holders monetize and on average, 90% are monetizing. industry, it's 95% of claims being monetized and 99.5% of claims are being automated. content id breaking at all. we see songwriters who created a song and would be happy that people are singing their music on a road trip in a van, we are seeing those videos now that there's the ability to upload them to a global audience, they generate new income that never would have existed before. newre seeing these innovations work in partnership and as more people come online, i think 2 billion more people are expected to come online index two years just on mobile. one of our issues is to make sure we are licensing to make

these -- withth this content. with google play, we have licensed music and more than 60 countries and film in more than a hundred countries. there so excited to see opportunities the web is creating all around the world to reach these kinds of audiences. searchgoogle, the engine, plays a big role in people finding content and issues have been raised over whether the search engine is doing enough to combat that. broader company efforts directed at that issue? run the data and we see search as a great place for driving users to legitimate channels. there's a section in the report debunking some of the myths and showing you can query a film, query a music artist or song title and what you are going to

see is clean results as well as interesting ways we've used the ad formats that you can click in one click and get to itunes or google play and get right to that authorized content. that's a place were we have tried to innovate and work with partners where if the user indicates they are seeking film or music, we want to give them compelling, legitimate results and we have innovated a backend system where if someone is sending us a notice that i certainly get his infringing, we are making sure that is having a act on the ranking system and we've shown a really huge impact. that being targeted by signal or use -- are losing massive amounts of traffic if they have content infringement in those links. so much for you breaking that down. a complicated issue. i appreciate you joining us from

washington, d c. tesla is in the hot seat over autopilot features, but that is not stopping the competition. nissan is unveiling driverless .echnology the system sends warnings when drivers take their hands off the wheel and will disable if the prompts are ignored for a few seconds. less than $20 an hour, a robot is probably going to take your job according to a new study that says 47% of u.s. jobs are at risk. latest robot helps nurses decide a reading from where to move patients to assigning them to a c-section. this is bloomberg. ♪

firm: intel's security

mcafee is trying interest from private equity firms. they say they are among the firms conducting preliminary research on mcafee in the event of a sale. sources tell bloomberg news no bank has been hired and intel may choose to keep them after all. virtual reality could be a magic button to reboot journalism according to the axel springer ceo who says vr will not only improve the way we tell news but create new models for the entire industry. thatpressed confidence virtual reality tech will replace e-mail and phone calls. and 23 and me is launching a new service to use saliva collection kits and geocaching services for their own research studies. participants can enroll in the database and receive information about their genetic makeup. on myke with the ceo

longform show, studio 1.0, to discuss her long-term vision for the company. >> i want to say we develop secure for lupus. when i think about my success moment, it will be when we have that kind of cure that came because millions of people came together and shared the data. because of that, we were able to create something. emily: still ahead, moon shots under the microscope. we will explore ultra-secretive projects and whether they can change the world. series a is up next. this is bloomberg. ♪

mark: i'm mark crumpton. you are watching "bloomberg west." theresa may is now uk prime minister. she spoke from our side number 10 downing street after queen elizabeth invited her to form a

new government. over from david cameron who resigned after the brexit referendum. hillary clinton is calling on all americans including herself to do a better job of listening rather than fueling political and other divisions after a series of high profile shootings. she spoke today in springfield, illinois where then senator barack obama launched his campaign for president in 2008. tv network nhk reports the japanese emperor says he wants to abdicate at some point in the future. he is 82 and has been emperor since his father, hirohito, died in 1989. an advanced u.s. missile defense system will be deployed in a rural farming town in south korea. the decision has reportedly not a anger north korea and china but local residents who are concerned about potential health hazards. australia will be at the helm of the world largest maritime exercises this month when

soldiers lead a battalion of troops in the storming of a hawaiian beach. it will be the first time yesterday and maybe has brought an amphibious assault ship to the rim of pacific drills. global news 24 hours a day powered by more than 2600 journalists in analysts in more than 126 -- more than 120 countries. it's just after 6:30 here in new york. paul allen has a look at the markets in sydney. : 30 minutes into the new trading day and it's looking pretty good. u.s.ndex up .25% after the managed to eke out its third straight record close, but only just. close, a that to be very slender .1% gain. we are waiting for unemployment a gears for the month of june after we saw the rate edged

down, we expect a decline of up to 5.8%. some concern about the recent gains in part-time jobs as well. nikkei futures currently mixed. a rough 12 months with earnings falling 8.7%. fast retailing is best known for its rand and has been expanding into asia to compensate for japan's rolling population. i'm paul allen for bloomberg tv in sydney, australia. emily: this is "bloomberg west." i'm emily chang. time for our weekly roundtable

where we explore themes in tech investing. we hear a lot about moon shots but what do we know about them? often veiled in secrecy and development three years -- think flying cars and solar planes and the hyperloop. what does it take to fund them and which ones will breakthrough in our lifetime mark joining us is a futurist and nana biologist, partner on the next human genome project that aims to build a human genome in the lab. kurzweil whothan made early investments in companies including switch and para scope. thank you for joining us on such an exciting subject. i want to start with a broad weston -- why invest in moon shots? guest: they can change the world and make the world better place. they can change people's behaviors and make people's lives better. intractableve the

problems of humanity. why wouldn't you want that? something i was thinking about on the way here -- we had a rough week in this country in terms of race relations, getting along and some of the tough that happens, we need moon shots for that kind of stuff too. you have to be open to it. socialis the goal progress or making money or hacking life to make it easier? guest: i think the goal is to inspire. so much innovation is incremental and a moonshot pushes the boundaries further. i don't think the immediate goals should be processed. i think it's learning to think beyond the current paradigm in learning to collaborate in new ways and hopefully build new communities. emily: should we be more afraid of moon shots? guest: no. i think we have an up pro paris at level of fear when it comes to the perils of technology and what we can do.

were too too afraid risk-averse, they won't happen because they are almost by definition crazy and risky and have the potential to not work or worse. but if you are afraid you will not get the progress, that would be the worst answer to the problem of how do we address societies hard problems. emily: when you look at the models elon musk has taken with tesla, if you consider it an electric car or self driving car, it's often only the wealthiest people that can afford those things first. are they making us more unequal? guest: i don't think so. i will speak primarily in life sciences. mostsciences the sustainable and affordable technology when you look at cellular systems. it gets distorted in the medical world but in my world growing things, biology is extremely cheap. some of the breakthrough projects could radically change

the economics of research and development. emily: there is a lot of risk involved. how do you evaluate the risk? guest: we love risk in our business. every project goes into some order of risk. moon shots are up here but you hope the reward is sufficiently large that the risk is worth taking. one project that we were moving shotting was drop camp. they had this crazy idea of streaming every second from a camera up to the cloud and we are going to store it in 2008 and the cloud was not sufficiently developed that that felt viable. but they had this projection that it would be in time because people would want to watch their kids and stream their houses and connect through this kind of technology. it has worked out and has

changed people's lives. emily: i'm curious when you are s, how do youea know to invest the resources and the time to decide to push this forward? for me personally, i have to see a path. it might require a lot of work, it might require closing some gaps, but i have to see a path to success. we couldn't get to the moon if we didn't know how to build rockets in the first race. plan and i have a pretty good idea of the timing. do you need more corporate investors were report interest? they are hard because you help you can get. venture capitalists can be open.

autodesk, youd need a society that's not going to dismiss them as crazy little projects or think of them as crazy little projects. autodesk is looking at things on like a 100 year timeline. they look atk anything from the present day timeline to 100 years. after that, it becomes a little fanciful. technological changes happening all around us. you have to be aware of the trends that are happening and what is realistic for emily: i think most people when they think of moon shots, they think of google and alphabet. our large companies with deep pockets better poised to do this simply because they have the resources or are small companies that can be focused more on a specific issues with more

expertise? a canon therees are great examples of companies that of taken huge risks. thatt's very hard to think long-term and that is why we have a job. stepn fund these ideas and back from the realities of any sort of present need to protect corporate interests and just look out into the future and dream what might be possible. always the common people can disagree, but there will always be robust startups. elon musk and the crazy founders of the world you take those risks. we are going to get more specific on the moon shots you are invest thing in. thank you both for joining us. are heading into the cutting

edge of life sciences research. breaka cure for cancer traditional business models? this is bloomberg. ♪

emily: this is series a, r weekly investing roundtable. we are talking moon shots with my guess. you are involved in several moonshot projects at autodesk and i want to talk about the synthetic human genome project. what does that involve? it started with a conversation last year but i and thinking about it longer. going on tooject synthesize the used genome and almost no one knows about it. they were thinking what do we do

next? they wanted to be more complex genome and i said you should probably take a lesson from history and do the human genome because it brings in all of humanity. emily: you are a software company. guest: if you think about it, the genome is software. all the tools for genomics are software-based. there's a close correlation between the software we use on computers and ultimately being able to design the genomes of living things. emily: we were talking about how dna could be used for coding. guest: you could code any information in dna. every cell in your body, you have gigabytes of code. emily: how does that work? guest: it is a base by base translation. map across those codes.

it is really high density and really inexpensive and dna last for millions of years when it is properly stored. using dnaave heard of to solve hard machine learning problems. if you think away -- think of the way the mind works and the many orders of algorithms built in there, i think it could be cool. i don't know if it's workable but the idea of using something from our bodies and dna to solve these problems feels viable. emily: i wonder about timing and how important that is. so many of these moon shots are sued ethical that you have to decide do we continue to work on this or abandon this project? is it really worth it? how important is timing? guest: it's the critical factor in our business for top given the fullness of time, most of any problem we dream up, we tend to solve.

we will send someone to mars. is it 10 years or a hundred years, i don't know. we will solve these intractable human problems. food will be delivered on demand from your smart cap now it is happening. emily: what about public acceptance? google bought boston dynamics, the futuristic robot company and they sold it in part because the public was scared. guest: that is part of timing. is there a technology ready, will the public except it, will the regulatory regimes catch up to it? that all goes into it. most of the progress we can dream up will happen, but is the timing right for us to take advantage of it? emily: what about these one time cures for cancer? i don't know how you put a price on that.

but at the same time, our returns important? guest: absolutely. you have to have a business model that can sustain exponential growth or does not going to work. are these things creating new business models? guest: absolutely. as the cost of computing goes down, there's the same thing. the cost of writing dna goes projectch is why this is being started now and we know we will be able to write human genomes in 10 years at an affordable price. if we can use that same technology to do thing like make a medicine to kill a cancer cell, we can do it so cheap that we don't have to make it mass-market. we can make a medicine for a single are some, printed on demand at an affordable price. it goes from the block esther model to more of a net friction model.

emily: it seems like the cutting edge cancer technologies and cancer cures are insanely expensive and no one can afford it. guest: but they are all running on the old business model. the new business model is make the drug for one person at a time. there's no phase clinical trials. it is personalized and specific. next person that comes along benefits from the experience of the last person. guest: a lot of these moonshot ideas at first are very expensive and accessible only to the elite folks, but that tends to be at the time they don't work well. mainstream, the price comes down. think about the cell phone and internet. only researchers in the lab could get access but if you go mainstream, people can afford them. google and also bet is an

interesting case because their plan is to spin off successful moonshot companies and could these things have survived within google or do they have to be spun out to continue to grow? guest: that is one model for ising it work -- that google deemed the best way and now it is their fifth iteration. have to applaud them for trying and trying every possible mechanic to get moonshot ideas to take hold. while.n fund them for a at the point where they hit the business model, they could become viable and spin it out. that logic has a certain appeal. emily: we talked about one time cancer cures and the difficulty of creating cheaper blood tests and genetic screening technology. where do you see the potential

for the seismic shift in moonshot technology? guest: that is a tricky one. guest: i know the cost of writing in a -- writing dna changes, but there's a shot where we built next generation dna printers. the big part of the early work in the human genome project, when we have that, it is a game changer and will empower the data storage example and how are the virus work we are doing and the design of new creatures. one of the things i have been keeping an eye out for. guest: if we could target genes to the micro specific area, that

has to be the area. oni were a betting technology to make the world radically different and to make the future better, i think it helps. these are tell me if winners or losers -- flying cars. guest: winner. guest: we are already seeing drones that can carry people around. permanent human settlement on mars? guest: absolutely possible. emily: quantum computing chips. guest: yes. thet: i'm not even us into semi conductor technology. emily: hyperloop. critique -- i don't

know that is the best way to transport people, but the technology will work. emily: what could be better? guest: airplanes. flying cars. watching itbeen closely than anything you can do the math on and come up with a solution could work. emily: immortality -- i know both of you have some close experience -- your father thinks immortality as possible in our lifetime. do you agree? guest: i think is possible. the question is are people ready to embrace it. i think that is a societal acceptance question. guest: i don't think these bodies last rubber, but as we have the watson and crick moment with our memories, we get closer. we haven't had it yet. but i think our memories, if we can extract them and manipulate them, i think that is coming close. in the meantime, i will just worry about kids.

emily: we will dig more into this very provocative subject. ,e will have more coming up digging deeper into immortality and regulation and what kind of founder can take a moonshot from lab to lift off. ♪

emily: this is series a, our weekly investing roundtable. we are talking about moonshot. we were talking about immortality before the break. your father is famous for his believe that we can achieve immortality in our lifetime and the singularly -- that computers and humans will one day merge. we don't know what this is like. at yourlove to sit dinner table and hear the conversations that you have. i would be curious to hear the impact yes had on you and your views. guest: this is in my area

necessarily but opening yourself up to the possibility that all of this stuff will happen in time. given the fullness of time, everything is going to be different. how it helps me is when crazy entrepreneurs pitch me on ideas that seem radically different, i'm willing to listen. for a lot of him his life. he's been talking about ai for 30 or 40 years but that was not a mainstream view in 1970. emily: what are your views on what kind of immortality and when it may be achieved? guest: i don't think our bodies will survive forever. i think we already see the evidence of that. our memories and thoughts and keep those things going past when our body -- when our bodies can? i think we can and i think the

question is when people want to do it. two keep these bodies healthy and solve the cancer problem first and maybe alzheimer's. we are starting to see connections between the technological and biological world. i think there are some real possibilities for disrupt the biological breakthroughs. we will continue to talk about this -- i'm sorry about the television portion. i appreciate you joining us for this installment of our series. that does it for this edition of "bloomberg west." johnrow, we will have kline. that's all for today from san francisco. ♪

♪ announcer: from our studios in new york city, this is "charlie rose." charlie: welcome to the program once again. we look at dallas in the aftermath of the horrific events there. today, president obama and former president bush spoke at a memorial service. here is coverage from cbs evening news with scott kelly. can make us a better country. those are the words the president this afternoon. he eulogized the slain police officers of dallas, pc's this moment of national attention to play for reason fo