mark: you are watching bloomberg west. president obama and bill clinton hit the campaign trail for hillary clinton, who is recovering from pneumonia. in philadelphia, the president said donald trump is not fit to lead in any way. mr. clinton is attending events in california and nevada. donald trump will visit flint, michigan, on wednesday. donald trump said the 2014 drinking water never would have -- drinking crisis never would've happened if he had been president at the time.

former president peres is sedated and on a respirator following a stroke. he won the 1994 nobel peace prize for his work in reaching an interim agreement with the palestinians. a russian hacker group was behind a cyber security breach that reportedly compromised private health records of u.s. olympic athletes. simone biles and the williams sisters were among those whose information was posted online. the hackers suggest the athletes got special permission to banned in brazil despite substances. global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. bloomberg west does next. ♪

emily: salesforce ceo calls out oracle's desperation move. our exclusive interview with marc benioff. pokemon go might change mobile gaming forever. we will speak to the ceo of niantic ahead. the visionary that kick started google's self driving dreams. it is making it possible for anyone with an internet connection to join in. first, days after samsung recalled note seven, apple is facing a technical glitch around the rollout of its latest operating system. customers updating their iphones could not turn the phone back on until they plugged the phone into itunes on the computer. the problem was quickly resolved and we apologize to those customers.

apple shares closed on a high despite the glitch. this after carriers t-mobile and sprint said they were seeing record demand for the iphone seven in the preorder period. joining me, alex webb, who tried to update his phone and your phone is not working. alex: i downloaded the software update over the air. the phone restarts and i was told i had to plug it into itunes and i cannot use it. emily: how significant is this glitch? they patched it up, normally it is fine. is this a bigger deal than the others? alex: in comparison to samsung

phones exploding, not the caused discomfort, but people have gone home and would have remedied it. emily: there is fear when you update your iphone because you never know for sure if it is going to work. alex: i did not back my phone up before, and i hope i did not lose a bunch of stuff. emily: good news from t-mobile and sprint. preorders are coming in at multiple times preorders in the past. how significant are these numbers? alex: it is significant because apple said they will not release the first week of sales. it gives an indication of how it's progressing. the caveat is they have introduced new data plans, which are now unlimited. one does not know the extent of what's to do about the product or trying to take advantage of the new plans. emily: have they gotten any

indication how many samsung users may be switching to the iphone because of the recall issues? iphone because of the recall issues? alex: it is too early to know. we will probably know by the end of the quarter. it is a massive blow for samsung. they probably, for the first hour, there were people in south korea getting excited that apple had a similar problem, but apple has ironed it out. emily: the sales numbers closing up two .5%. -- almost 2.5%. investors are confident. alex: the biggest jump in almost two months. 2.5% for apple is a big number. that stock does not jump a huge amount. emily: does it suggest people are not concerned about the headphone jack issue? alex: the fan boys are going to go for it no matter what. there is pent-up demand. it is two years since the iphone 6 series was released. all of these people who had been

sitting on their iphones, waiting for the new update, they are heading on to the shop, getting on with their carriers and saying i want the new one now. emily: we are looking at the air pods. alex webb, thank you for the update. we will have more on samsung and the investigation into the galaxy note 7 smartphones later this hour. salesforce, one of the most acquisitive companies. they have closed more than 3.5 billion deals since february. brad stone sat down for a conversation with marc benioff, talking on everything from larry ellison's desperation move to how he feels about missing out on linkedin.

he began with a preview of the einstein platform rolling out at the dream force platform in october. marc: we have almost 200,000 people coming to san francisco. it is going to be exciting. biggestw software's conference. we have u2 playing. we also have einstein coming, which is ai for everyone. it will give all of our customers the power of artificial intelligence inside salesforce's applications. brad: i followed you long enough to know you do a good job of bringing themes. last year, you talked about the internet of things. why, this year, why is it real, when can we expect it? a lot of companies are talking about ai now. marc: ai is a huge movement. one thing that has been great, we bought about a dozen ai

companies over the last two or three years. it includes spending $600 million for them. we have taken all of those employees, stitched them together into an incredible team. the technology includes some of the best ai capabilities i have seen. brad: how do you convince them to come to a crm company? marc: we are not a crm company. we are the largest tech company in san francisco and one of the fastest growing companies of the top 10 software companies. we are committed to improving the state of the world.

we believe this is a platform for change. they love our 1-1-1 model. we give them 1% of the equity profit and time to get back, focusing on our public schools, as well as the children's hospitals, homeless. that is important to them. they want to give back as well as he'll great products. -- build great products. a lot of companies have not made that shifty yet. salesforce has. we are a lot more attractive. brad: on the acquisition part, you made about $4 billion in acquisitions. why has salesforce been so acquisitive? how are you trying to position the company for the future? marc: we always buy a company when it is a great company with great technology and two, the price has to be right. i did not think we were going to buy any businesses at all and a series of things happen that open the door. the biggest thing, we got a phone call that demand where had

-- demandware had an offer from another country and were we going to be part of the process. and we said yes. it is an amazing product used by louis vuitton, adidas, under armour. huge demand wear. when customers saw the ability for salesforce and demandware to come together, they will probably sell more than $1 billion. that is amazing. this technology is just incredible. brad: one of the deals you did not do, linkedin. going back, would you do anything differently. marc: i would do everything differently, but in the cat -- but it goes in the category you cannot win them all.

in our industry, that's when you areue going up against microsoft with the power, resources, and that monopolistic control. we gave it our best shot. we did not win. we wish them the best. brad: does it make microsoft a more formidable competitor? they won hp ink. is microsoft plus linkedin a more bigger threat to salesforce? marc: i don't think so. salesforce remains -- you can see it in our numbers. it is faster growing than microsoft. we are number one in crm. the vast majority of crm deals we win. we will never win them all, but we win most. brad: oracle, early in the summer, all of your former colleagues. what does that deal due to

oracle? are they are a stronger competitor? marc: i don't think so. is making a desperation move to boost cloud revenue. he will be able to boost his cloud revenue and make is $10 billion goal. he still may not be able to make it. brad: you're friends with larry ellison. when you say things like desperation move on live tv, do you get a call or text later in the day? marc: i do, but my relationship is more eternal and enduring. he taught me this. brad: he does not pull punches. marc: he does not. business is a lot like tennis. you get on the court with your friends, you play as hard as you can, you get upset, you say crazy things, you go off the court, have lunch, a glass of wine, remember how much you love them. i love larry ellison.

he has been a great mentor and friend to me. no one in thely industry that has done more for me than larry ellison. i am grateful to him. brad: salesforce has had a tremendous growth trajectory. the last quarterly results, there was some softness. how much was seasonal and how much of that softness do you still see? marc: last quarter was amazing. you saw the top and bottom line, we beat. we raised for the year. what is amazing for us in the second quarter, in the middle of order two, things happen. one, brexit. it took the euro and dropped it down into mid-one 20's. 120's. ? that gave us a deceleration of our european revenue. the second thing was we saw softness in the u.s. at the very end of the quarter, specifically in the united states.

those two things combined gave us a quarter that was not optimal for us. it was an execution issue. brad: have you fixed it? marc: i hope i have. the thing about software, you, for whatever reason, you go for six or seven quarters and there's always something that happens and you need to fix it and repair it. for salesforce, we have grown the company dramatically. when we get in and see there was a small execution issue at the end of the second quarter, we can get in and work on repairing that and making the company stronger. emily: marc benioff speaking with brad stone in san francisco. coming up, jack dorsey's product

shakeup may be around the corner for twitter. is it enough for investors? later, pokemon go has passed its fever pitch. we will check in with the game maker, niantic ceo john hanke. ♪

emily: big changes on the horizon for twitter. the plan to get rid of the 140 limit could be days away. the company is set to live stream its first live nfl game between the jets and the bills. this is part of the companies

$10 million deal with the league. it is its first foray into the sports broadcasting world. joining us with more, josh elman. great to have you on the show. deal do you think the live streaming news is? how much will this change twitter? josh: people come to twitter and they don't know where to go if they are getting started. if you join a live ellet -- live nfl game, it is a different experience. emily: bloomberg west will stream on there. i am excited about it. will it make a difference to twitter cost future. is this direction twitter should be going in? josh: i'm really optimistic that there's the long-term future is

everyone getting a personal timeline, but it will be a first step to making twitter relevant to people. emily: we could see a change in the characters in tweets, if you have a folder or a -- a photo or a gif, it will not count against the characters. everyone getting a personal timeline, but it will be a first these changes are incremental, some say twitter needs to do more. josh: look how long that explanation was. emily: people who do not use twitter will have no idea what i am talking about. josh: the secret is when you get to this timeline and you follow people who are relevant to you. it is hard to set up. the people who have it set up like me love the product and use it all the time. they should focus on making it easier to find the things that interest you and not worry about the nuances of how many characters. emily: we are coming up on a year since jack dorsey came back as ceo. how would you grade his performance? josh: the first six months, we saw a bunch of changes, people leave, people get hired, ai

acquisitions. we have six more months before we see a full year of his work. we are in the middle of it and i don't know where we will end up. emily: if it does not work out, what happens? will he keep running the company? do they head down the path towards m&a? what do you see? josh: people still visit every month to go get the news, every day. the biggest worry i have is whether it ends up on a long decay cycle like yahoo! or they find something that reignites growth or they find a buyer where they can join forces and become stronger. emily: who would be a good buyer? josh: youtube has a great relationship, but they don't have this flow to a set of

content. you put them together and it is a few one plus one makes three type of concepts. emily: what do you think of the linkedin acquisition selling to microsoft? how will that work out? josh: i think this company is about making every individual more productive and able to succeed in their own professional lives injuring. joining with microsoft is going to give linkedin a chance to accelerate that. you will see greater things from them in the next years. emily: what is going to be the hot things teenagers will do next year? josh: one of the hot ones now is called musical.ly. pokemon go opened up the world where teenagers and everyone take out there phones.

it is a new kind of behavior we are going to see more of. emily: i will talk with the ceo of niantic later in the show. where are you placing your bets or looking for the next thing? josh: a couple of areas, socially, things like musical.ly. entertainment is a billion-dollar business worldwide. we have been looking at self driving cars. we think the combinations start to look like the future of augmented reality and different experiences we can have in the world with the technology around us.

emily: what is your take on the environment? a lot of people are saying there are not a lot of exciting things to invest in and there is a bit of a l tightening when it comes to handing out the cash. josh: the past few years have seen companies get some success. it we will see that settle. some will settle well and some will not. the consumer internet side, we see a lot of people say consumer internet is done. snapchat is getting bigger. i look back 13 years ago when web 2.0 emerged, everybody feeling like it was done and people had inventive ideas. i think we are about to see people invent what we call mobile 2.0. pokemon go might be the first. emily: thank you for stopping by. josh: thank you for having me.

emily: udacity opens up an application for self driving cars. companyurom the founders. this is bloomberg. ♪

emily: pandora is paving the way for its long-awaited streaming service. and/or is planning to roll out two new services by the end of the year -- pandora is planning to roll out two new services by the end of the year. samsung is blaming a battery manufacturing flaw for the global recall of its note 7. there was too much pressure on thebattery cells, making

batteries overheat. samsung says it needs to carry out a full analysis on the exact cause. of next, niantic ceo joins us to discuss pokemon go and the epic release. this is bloomberg. ♪

; samsung has formally apologized for its note 7 problems. samsung says it appears the negative and positive halls of the battery can come into contact, causing rapid heating. some of india's top tech companies closed their offices in bangalore on tuesday, following protests against the sharing of water between states.

local media said mobs than the lies vehicles and a curfew was imposed. looks tode juncker deliver a harsh warning following the brexit vote. he will say the body faces a battle for survival with u.k. newspapers expecting talks of a split between east and west. will raise ahe range of policy issues, from defense to investment. let's get the latest from the markets. julia: we have actually seen the end way can -- awaken. .ut we still see weakness

this is really to do with central bank reports. what is the boj going to do next week? push -- i 225 we have also seen hong kong come off its earlier gains. players coming under pressure as we saw crude in the new york session tumble by 3%. iea says the oil glut could continue well into 2017. it's a similar story in australia. slightly positive territory. these energy players have been selling off. that is living out those losses -- those gains come i should say, in the financial shanghai is down by .6%.

to zynga in has not appeared jinping has not appeared to appease investors. emily: this is bloomberg west. nintendo shares popped after announcing mario is coming to the iphone and pokemon go coming to the apple watch. we have seen shares spike and then plunge. nintendo partnered with the developer of pokemon go, niantic labs. i caught up with john hanke for an interview and asked what it was like behind the scenes as the game has taken off to great success and controversy. john: my team, they are the ones that have borne the brunt of

this. there was a case where people were in the office 24/7 for weeks on end. for the whole two months of july and august. it was intense. people monitoring things around the clock. just continually working with our colleagues at google cloud to get more infrastructure in place and as we launched new countries. we had a couple of outages, some hacking, various things that kept us on our toes. mainly, it was one wave of social after another. we launched in brazil, into the olympics. that was another wave. people are happy that people are using their products. we are glad things are calming down a little and we are able to return to a more sane level of work. emily: there is a report about a slump in usage as well as in app

purchases. our purchases growing? are they dropping? have they plateaued? john: we got past the initial global explosion and we are back to normal in terms of -- a massive -- a group of people came in. a ton of them stayed in the game and we are acquiring users at a normal pace and we are back to a normal level of activity and growth. it is a popular game around the world. people continue to spend in the game. it is healthy. to look at other projects in the future, augmented reality more broadly, having this as an early success. it gives us a lot of flexibility going forward that we did not anticipate.

it holds so much promise. we are excited to be able to invest in that area. hopefully on the success of other titles we will watch in the future. emily: you collect a lot of data. how do you plan to utilize that data as you think about the next step? john: we are respectful about our users in terms of what data a user provides about themselves, it is limited. that is what we have access to in terms of the user identity. we don't sell that or provided to other people. there is data that is generated as people play the game. it is something we look at as a way to ensure the integrity of the game and to improve the game itself. it is not something we provide to other people. it is a sensitive issue and we

are respectful of our user's privacy and their data. emily: some privacy advocates are lobbying the ftc and saying why does the game need more information than the user's location. what is your answer to that? john: the data provided through the game is associated with the user playing it. as they are out moving around with the phone, the data that is necessary to know where they are and when they are taking action, we can determine if there is a pokemon nearby, if you have captured it. the data is related to facilitating that gameplay. emily: it is coming to the apple watch. how much traffic do you expect it to drive? john: we are excited to be working with apple.

we have a strong relationship with google. we came out of google. i am thrilled to be working with apple. they are doing amazing stuff with the phone and the watch. i am excited about the next generation watch. i think they got a lot right with that. waterproof, brighter screen, faster processing. i cannot wait to get mine. for us, it is a great development. we want you to go outside and play with your kids and friends and not have to look at your phone all the time. the watch is a great technology platform for that. you can keep your attention focused on the people around you. i am excited about working with that new technology. emily: some suggest pokemon go is making more money for apple

than nintendo. is that accurate? john: beyond what the app store and placed or take out as their agreement, i cannot comment on how the revenue gets divvied up. emily: fans are waiting for the ability to trade. they believe you will introduce it soon. are you going to? if so, when? john: what we are introducing today, for android, it is the buddy feature. that lets you pick a favorite pokemon. it becomes your buddy. you can take it out for walks, earned candy for walking with your pokemon. that is the latest feature.

i don't have a specific date on that for you. emily: the game has been popular but there have been tragic events associated with gameplay. people have been mugged and assaulted. there was a murder down the street at fisherman's wharf. what has been your reaction to these events and what do you think the responsibility is that the game and the company bears? john: we were trying to create a game experience that allows people to have fun outside. we all play the game. we are trying to build a game that is as safe as it can be. there is a lot of risk in the world. there are places that are dangerous to be at. we rely on our players to make their own decisions about where they are comfortable going and being. we would encourage anyone

playing the game to be caught -- cognizant of that. there are risks. it is something everyone has to take care about. emily: you have big gaming communities waiting for this game. what our plans to launch, giving some of the regulatory issues surrounding google maps? john: we are interested in bringing the game to the rest of the world. some of it is the logistics of us needing to get the infrastructure ready to take on additional users. in some situations, there are special laws that make it challenging to launch there. we are knocking those off one by one and taking the steps we need to to offer the people the game. emily: what are you doing to create new levels. will there be more levels? a sequel?

john: we release a new version of the game every two weeks. we expect the game to continue to grow over the next several years. not a sequel per se, but an evolving and changing gameplay experience. emily: our exclusive conversation with niantic ceo, john hanke. alibaba financial making its first acquisition. iverify uses either main -- eye vein to identify users. coming up, udacity has paired up with big names. we will catch up with the udacity founder, sebastian thrun. do not miss our conversation

with padma. we will focus on the future of the electric car market. this is bloomberg. ♪

emily: applications are open for -- udacity's self driving car program. the company is partnering with mercedes, nvidia to build the curriculum. brad stone caught up with

sebastian thrun to discuss. sebastian: everybody in the world can become the next car engineer. you apply, applications are open today. we might admit you and you can get a job in silicon valley. >> what other credentials? presumably, an english major like myself cannot decide they want to get into engineering and apply. sebastian: for this degree, you have to know programming and math, linear algebra. entry-level college math. we open for 250 people in the pilot and later this year, we will open up much larger. >> it is selective. the insight is this is a booming industry and that to become larger. all of these companies competing need sophisticated engineers and

there are not enough. sebastian: they are desperate to get talent. they are looking for great talents. we can take anybody who is somewhat proficient in engineering and turn them into a self driving car aficionado. >> is there a corollary effort in universities to beef up the studies in this area? sebastian: engineering schools move slower. it takes more time to build up things. in silicon valley, we can work with tech companies directly. the curriculum is built by those tech companies. we can teach what the companies want to hire. >> how do you learn to make a self driving car? sebastian: [indiscernible]

you put this together and it is a multidisciplinary, modern engineering curriculum. >> you mentioned some of the companies, nvidia, mercedes-benz, didi. how difficult was it to bring didi into the mix? sebastian: very easy. we are in the process of developing new competition and self driving cars. didi has an interest because it could disrupt their industry. >> one of the companies not on the list is google. why aren't they involved here? sebastian: there has been restructuring lately. we have a fantastic relationship with google. >> my colleague wrote a story about the self driving car project. the explicit argument.

google has fallen behind a little bit. there is an orthodoxy in google in making a fully autonomous system and not making compromises to put a human behind the steering wheel in case things go wrong and have fallen behind and there was turnover. sebastian: one of the interesting things, google and uber are revolutionary in new technology and it will not be a car that you buy that drives you a few miles on the highway. uber are revolutionary in new it will be the concept of transportation as a service. you order your car, it picks you up and drops you off and goes away. the reason this is revolutionary, now, we need fewer cars. fewer parking spaces.

san francisco is full of parked cars. imagine all of these cars could drive themselves to where they are needed. it will be a big game changer. >> you don't think people will buy cars anymore? sebastian: people love cars. you buy a sports car to go from a to a. for the sake of driving. when it comes to daily use for transportation, in a shared economy, it is much superior to an owner in society. >> what other industries is this likely to impact? sebastian: lots. insurance companies. >> i heard premiums could go down by 70%. sebastian: a lot. the number of accidents could go down, the number of trauma

surgeons we need is fewer. wouldn't it be great if office buildings could be closer together. >> when does this future arrive? sebastian: we are at the brink. the technology is there. i am confident we are going to work towards that in the next three to four years and will see a massive change. >> the high profile tesla accident, does it setback progress? sebastian: it remains to be seen. i am a tesla driver. i love the autopilot feature, but i keep my eyes on the road. i pay full attention because tesla tells me to. tesla has been clear about its statement that you have to keep your eyes on the road. it is not meant to be a self driving car. it is meant to be an autopilot. >> there was suggestion that

google decided when you put an autonomous system in there, the human brain will shut off. sebastian: back in the day, my wife and i would take a self driving car to lake tahoe. she would urge me to have a car take over and she would proclaim that she feels safer with the car driving over me driving. this may be a bad comment on my driving style. when i am fatigued, it is hard to stay in the lane. the car has amazing precision. emily: udacity founder, sebastian thrun, speaking with brad stone and san francisco. george hotz unveiled the first product of his start up.

we spoke to him at the design conference and asked him about his self driving car kit. it will allow you to drive your car without requiring a driver to touch the wheel, the break, or the gas pedal. george: it is a question of how we ship it to everybody. by the end of the year, for under $1000, you will be able to buy a self driving car. emily: do not miss a conversation with lowe's ceo. this is bloomberg. ♪

emily: nvidia jumping into the race for the ai market, rolling out tesla p4 chips. these chips are designed to be

more efficient at processing images than the last generation and intel's server chips. the company has released a chip called the p40 four powerful, individual machines, like supercomputers. spacex plans to resume rocket launches in november after losing a falcon and i and in a -- a falcon 9. spacex is working to determine the cause of the blast. spacex had previously said it was targeting 18 launches this year and had completed eight before this particular accident. the long-awaited tesla is the largest rocket, likely to be pushed to next year. that doesn't for this addition of bloomberg west.

tomorrow, do not miss twitch ceo and padma warrior. ♪

anchor: the rally proved short-lived. traders contemplate a post stimulus world. saying the world faces -- taking control of the smartphone crisis.