mark: you are watching bloomberg west. let's begin with a check of first world news. medical records have taken center stage. doctors ruled both are fit to serve. hillary clinton released details from her medical exam today including treatment for pneumonia. republican nominee donald trump gave dr. awes a summary of his recent physical. a pastor in flint, michigan reminded donald trump he was not there to deliver a political speech. he was abruptly cut off when he subway from discussing the water contamination crisis to criticizing hillary clinton. the u.s. and israel has signed a new defense deal giving the military $38 billion over 10 years, the largest agreement the u.s. has ever had with any country. it calls for israel to spend the money on us-made military equipment. the u.s. will lift sanctions against myanmar. their de facto leader met with president obama in the oval office. prosecutors will interview julian assange on october 17. he is wanted for questioning over an alleged rape. he has been holed up for four years.

bloomberg west is next. emily: this is bloomberg west. uber's self driving cars are officially on the street. and twitch has made gaming a group activity. why social eating, yes eating to be the next big thing. first, to our lead. uber driverless cars officially hitting city streets. customers can help a self driving car in pittsburgh complete with a human driver just in case. the company's goal is to one day do without those safety drivers in the front seat.

they will one day go away without those drivers. it is seen like the first driverless fleet on the road. max spent the day testing out the service. here is his report. >> we are here in pittsburgh. i am opening the app. here we go. >> there is this pinwheel thing. that is the most important sensor mapping the road. it is basically telling the car were to go. in all, there are dozens of these sensors. seven lasers. radar. we have these lovely safety drivers joining us. the idea is to get people to understand what it is like. >> i'm going to press this green button that says let's ride. there is a weird psychedelic map

showing all of the stuff going on around us. the driver is hovering with his hands over the wheel. here we are. there are cars going by. you can see them on the screen. i'm going to take the drivers seat and experience what it is like to be a safety driver. this is area. it feels like the car has a mind of its own. you are fighting the tendency to grab the wheel. i have done literally nothing. i am just sitting here enjoying the ride.

emily: max reporting there. he is with us to tell us more about his experience. was it mostly a smooth ride? >> barry smith. almost boring. there was one instance where a -- it was very smooth. almost boring. there was one instance where a car pulled out a little bit and it expertly just edged around it. that was the most exciting thing. emily: tell us what neighborhoods will be in and when they win expand to other cities. max here is what we know. : dozens, maybe two dozen cars in pittsburgh. 14 when i was at the office on monday. a handful of neighborhoods. mostly downtown pittsburgh though they are expanding. i do think we are going to see driverless cars and other cities. i don't think it would be a huge

leap to imagine that. emily: are these drivers your typical freelance contractor drivers? or are they experts behind the wheel? >> in large part experts. uber has 500 engineers. it is called the atc. many of them from carnegie mellon. these are people with a great deal of training. i was allowed to sit in the safety driver's seat. it was relatively in controlled conditions. there was an uber employee sitting next to me with his hand on this red button. you can present to get rid of

the computer control if something were to happen. >> do they own these cars right now? do they intend to own all the cars in the fleet in the future ? >> they bought them from a ford dealership. these are hacked ford fusions. they went to a confused ford dealer and purchased them. long-term it is not entirely clear. uber is being tightlipped. they don't entirely know. but the ceo told me was they see themselves as providing a driver. a human driver or a computer driver. that is the core of it. my sense is they would rather not own giant fleets of cars but they would be willing to if it comes to that. they just want to be providing

rides at the lowest costs possible and they will figure it out from there. >> we did speak to the father of self driving cars. he went on to run google self driving car unit. take a listen. >> i am excited about this. it is wise to have a safety guard behind the wheel but i'm longing to get rid of the safety driver. >> who is it? >> when do those safety drivers go away? >> it is a series of questions. one of which is the regulatory russian, when did we decide we are ok with it? it is also technological. what uber has said to me, it is not there yet. while we were operating in these city streets, they were ready to take over. in the shorter term we may start seeing true driverless cars in narrow circumstances.

maybe on a specific piece of the highway. very carefully mapped, there really -- very cordoned off. they are not there yet. they are very hard for driverless cars. so much happens in the city. it's very hard to predict. computers just aren't able to calculate what it is in real time, reacting quickly enough. emily: we will be closely following this. you will as well. thank you so much for braving that first car on the road. we will have more later in the hour. that is next, a head. the chief who put facebook on watch.

accusations that she is unfairly targeting u.s. companies. apple shares soaring wednesday. we will dig into what is driving the move and whether the iphone seven is off to a better than usual start. this is bloomberg. ♪

emily: an update on iphone 7 preorders. better-than-expected demand for the latest smartphone while verizon sees a normal range. t-mobile and sprint said they were seeing record interest in the new phone. shares rose wednesday, this is the first time they did not release opening weekend sales. and it is 14.5 billion tax

problem is back in the spotlight. >> apple sales international had -- apple sales international employees, nod no premises and no real economic activity. it exists only unpaved for -- on paper. therefore, there was no factual or economic justification to allocate almost all of the profits to the head office. francine satergs down for a one-on-one after those remarks and asked her to explain while the problem is specific to apple's relationship with ireland and not ireland's tax rate in general.

in ireland, they have decided 12 at 5%. others say 20, 22. that is completely on their own. what they cannot do is give selective advantages to specific companies. because that of course tilts the playing field and makes it unfair competition. emily: joining us now is alex webb. why are they debating this again and what happens now russian mark she is presenting it to the world. she then goes in front of european parliamentarians and says it's going to be something for parliament to opposed to. >> what happens next? >> the next stage is the appeals process. which could take a couple of years. they both plan to appeal against the decision. that will decide how much will be paid to the tax authorities. emily: folks in ireland are saying it is fair to be looking at unfair practices but not there to retroactively be

changing tax practices. >> this is the thing that has a lot of tax lawyers wary about the whole thing now. all of a sudden they are not high and dry. they are going back a decade. it is raising questions about the willingness to invest in the region. emily: the apple case is just one of the commissioners many investigations. amazon could face a similar ruling on its tax arrangement with luxembourg. they are under scrutiny for their dominance in search, consumer data. google is fighting three antitrust rope. antitrust probes.

take a listen. >> we have a number of google cases, three by now. you are welcome to be successful, we will applaud you all the way. if you start to miss use your dominant position to prevent others from having the same fight for success, then we get concerns. that is the example of the google case. may thing, while google is using -- is misusing its prominent position to promote itself to stay where they are and not to allow for others to compete with them in a fair way. >> what about uber. >> looking at it with my colleague, transportation, on the one hand side it is great. on the other hand, there are issues comparing with traditional transportation, taxes.

and if taxes are being paid. >> you are looking at the facebook merger. our social platforms a concern? >> our concern is only if competition is being closed. that is the important point. one of the things that the german authority is looking at is in the gray zone between competition and privacy. baseball, because they are so dominant, your football team, if you don't know when they are having their training, you go on facebook. because they are so dominant, and a lot of places you don't know when your team is having their training sessions. that is a dominant position. has this been used to minimize your rights when it comes to privacy. i think it will be interesting for everyone to follow and get the results of this inquiry because it is a gray zone. the germans are looking at it

through both german eyes and european eyes. it will be valuable for everyone. >> you are expecting more cases. >> data is one of the more important things. that is the new line of business. more traditional business going into data heavy ways of working. it goes into the car industry. it will be more data prone in the years to come. we will launch a public concentration. -- a public consultation about our merger trust holds in consultation in order to ask experts and people's opinions if we got the right merger on board. both knowledge and data is another kind of currency, and other asset, than just a turnover of a company. i think that is very, very important for us to be able to secure that there is competition, also pursed -- also

post merger and some of the new industries. francine: one of the criticisms is you are targeting u.s. companies. will you target european companies? >> we do our best to find the selective advantages where they are. scheme thatat the year, to be illegal last half of those who had the benefits were actually european multinationals. so you find a both. because we target no one because we have an obligation for equal treatment, no matter your nationality, your size, you're kind of ownership. you should compete on the merits. emily: that was market the sticker. -- that was margaret vestiger speaking to

bloomberg. still with me, alex webb, they did cover a lot of ground from apple to google. i want to focus on google specifically. they have multiple challenges facing them in europe and they are not particularly happy. >> google's business is aggregating content. you look up a news story. it shows news results. you find a video or a song and it will give you those results. a lot of the way, a lot of song sneak into google youtube results and there aren't any -- there is no commission paid to the artist. that as far as the european commission is concerned is not fair. i am sure there are things where it says you can't find a song initially. and says, for rights reasons, it can be around -- a can't be on there. then you look down to three pages and there it is. for the european commission they are proposing a law which the problem would have to vote on. they will check whether there is content. they are saying this is

unfeasible. emily: google has sent multiple executives to negotiate area eric schmidt has said it is difficult to work in europe. explain the response to these accusations. ultimately, what google does now is ramp up its lobbying efforts. it is essentially part of the european union which is part of being mandarins. it advises to politicians who, with their regulatory proposals. these laws have to be approved by parliament. they can vote against it. that is their goal now. -- google convinces them to vote against it. that is their goal now. emily: thank you for giving us that update and breaking down what margaret had to say. we will continue to follow all of these stories. the spotify ceo tweets out serious subscriber growth.

details next on bloomberg. ♪

emily: a story we are watching, spotify has topped 40 million paying customers. that is up from 30 million in march and double the number of rival apple. most are using the free ad supported service. salesforce says his company will hire its first chief diversity officer announcing he will redouble his fight against the laws he considers unfair to gay employees after lobbying against hundreds of laws considered hostile to lgbt residence. take a listen to him explaining while he is pushing for equality. >> it is important to our employees.

it has become an important part of who salesforce is. we believe equality is stretching across the planet. you can see how the world reacts where the best of all teams will go longer play in north carolina. businesses will not shut up -- set up shop, like paypal come in north carolina. there is a broad indication for the lgbt community if you make these laws and create them, you will pay a price and you will get less investment. you're going to get less basketball. >> will we see any coordinated action against these discriminatory? >> you are seeing that. that is how we got indiana turned around. mike pence sign that law into place.

almost every company came in and said we will not stand for this dissemination. -- discrimination against our employees. then it almost happened in georgia where the senate sent to the logical governor, but the governor pushed back when he saw how many companies stood against it. and now here we are, doing it again in north carolina. i'm proud to see how the world has come up and said this is not a row. . these laws are not going to be supported by the world. emily: salesforce ceo marc benioff. and broad stone. -- and brad stone. coming up, autonomous cars disrupting the roadways in pittsburgh thanks to uber. i sat down with an industry leader whose company is looking to revolutionize the future of driving. this is bloomberg. ♪

england is bank of cast off the ring when it meets later today. boj and the fomc hold their meetings next week. the arts for the rate hike seems slimming. shares on a terror in tokyo -- shares on a tear in tokyo.

lawson says it has received a proposal but has not yet made a decision. is recalling some of its 7 in shanghai. it is recalling 2.5 million phones from other markets. let's get the latest with the markets as japan and back online. japan has been under pressure today. we are seeing a stronger yen, but also the rapport building up that the boj could move into

negative interest rate territory when they meet next week. seng is outside the region, up by 1.5%. there have been losses in the energy sector. of course, the crude sought -- the crude price continuing to $50 a barrel. nigeria might up with their production as well. we saw less people looking fo for work. the has been an upset in jakarta and thailand, malaysia and singapore.

remember that china is closed today. korea remaining closed for the remainder of the week. hong kong will be closed tomorrow. emily: this is "bloomberg west." i am emily chang. turning to the automotive industry, uber has begun showcasing to the world its driverless fleet in pittsburgh. the ride-hailing giant beat google, apple, and tesla to the punch, as each company races to eliminate human drivers. we caught up with another industry leader whose company is working on the forefront of electric car technology, nextev. ceo padma warrior shared what she thought of the unveiling. padmasree: i'm a big believer in autonomous vehicles. i think it is the next big thing in mobility. i do feel in technology there is going to be a huge wave of innovation tt is fundamentally

going to transform mobility. self-driving cars are in the center of this. i'm a big believer in that model. it is still early to see how ride sharing involves. who is going to manage the fleet? what will the business model be? is uber going to own the vehicles, is ford going to own the vehicles? who is going to actually own them? it is not clear to me. i've been watching this space to see. but from the technology perspective, great move, very exciting. emily: so you drive a tesla for now, which is good for research purposes. what is your take on the autopilot feature? padmasree: i'm a big believer that autopilot is needed. it is safer than human beings driving. 90% of accidents are caused by human error. i think it is unfortunate that we have had a couple incidents with the tesla autopilot. the reason it is a bad thing is really it is creating a fear in consumers' minds about the

technology and that is never good. having said that, with any new technology there is initially skepticism and fear. the more people get used to it and see that it is better when it guides you, it actually augments your own skills from that perspective. i'm a big believer in the autopilot leading to full autonomy as the way to go. emily: elon musk -- they have released an update to the autopilot and elon said this would have saved one driver's life. there is a growing divide between folks like google who believe in fully autonomous cars now, and semiautonomous, which google says could be confusing. what is your position on this? padmasree: we are big believers in full autonomy and we are targeting full autonomy for the one we will launch. it is a matter of getting

consumers over the chasm, if you will, getting them used to what it is like to be a fully autonomous car when a robot is driving you. it will take a while for all of us as users to get used to cars without steering and pedals. that is a ways away. we are getting increasingly more comfortable with the car taking over the driving function. the one thing we believe in which has been our focus is you have to be very clear when the car is driving vs. when you are expected to drive. there cannot be confusion. there is a lot to be said about how the ui is designed. when you are taking over as a driver, there cannot be confusion that you are relying on the machine. hand on the steering, eyes on the road. when the machine is driving, it has to be where you are comfortable that it is seeing what you see. there's a lot more work, i feel, that needs to be done in the user interface and the human machine interface, in how people and machines can work together. emily: will the cars you put on the road be fully autonomous

already or a step towards that? padmasree: i would say fully autonomous, the car we are targeting for the u.s. market. it is going to have steering and pedals. consumers are not ready to do away with all of that. we have to get human beings more comfortable, but that is what we are targeting. emily: you have been very generous giving tesla credit for the advances being made in electric car technology. your copresident claims you are ready to set the bar even higher than what tesla has done, saying tesla is 2.0 and nextev is trying to be 3.0. what does that mean? padmasree: i say we are working on car 3.0. if you look at the automotive industry evolution, i think of it in three phases. in the first, 120-year-old industry, the first phase was about mechanical systems and hydraulic systems. the second phase, car 2.0, was the movement to electronics and electrification. that was the second phase of the

innovation. tesla leading in that shift. the third phase is about digital systems and more personalization, connected vehicle, how the car becomes a robot in a computer. going to be about the software, personalization, data. that is what we mean by car 3.0. emily: will all the manufacturing be in china? padmasree: market entry will be in china initially. first few vehicles will be launched in china. the --ehicles will those vehicles will be manufactured in china. for us, the market entry would be the u.s. we are evaluating manufacturing options right now. emily: that was nextev ceo padma warrior. amazon is ready to find out how well alexa understands a british accent. the company announcing its voice-based assistant will be available in the uk and germany starting in the fall.

it marks the first time the gadget will be available outside the u.s. the company has given the female-sounding digital voice a slight british or german accent and made adjustments for local preferences. coming up, amazon acquisition twitch is expanding its focus beyond gaming, everything from politics to social eating. my conversation with ceo emmett shear, next. tonight, a six-part series launching on bloomberg tv, "big problems, big thinkers." we will hear great thinkers from warren buffett to madeleine albright discuss threats to the future of humanity, 8:00 p.m. eastern tonight. ♪

emily: one story we are looking ahead to, oracle releasing quarterly earnings thursday. scarlet fu takes a look at the company's key metrics, starting with a breakdown of the deal to buy netsuite, in this edition of "numbers don't lie." scarlet: oracle is essentially buying market share with one of the first cloud services companies. revenue forecasts reach more than $140 billion in 2019. oracle is competing against the likes of salesforce, microsoft, and sap, and paying a pretty penny for it, too. looking at the deal on a revenue basis, it ranks among the most expensive software takeovers of the past few years. the transaction has a multiple of 11, which is much higher than the industry. this trend is apparent in recent purchases made by salesforce and sap as well. all three companies, including oracle, have valued their deals with revenue multiples near 11.

oracle is positioned to capitalize on the growing cloud market. cloud software as a service and platform as a service, the top white line, posted revenue growth of more than 60% in currency terms. by contrast, software licenses updates increased just 4% and new software licenses fell 10%. as oracle continues to shift to the cloud, it is seeing overall sales growth decline, which isn't a huge surprise. when software companies make this transition, upfront licensees typically defined as revenue rises. what this can lead to is volatile financial results. emily: that was bloomberg's scarlet fu. oracle releases earnings after the u.s. closing bell on thursday. twitch, the videogame streaming service that amazon bought for nearly $1 billion, is branching out. over the summer, twitch broadcast livestreams of the republican and democratic conventions, and amazon began streaming pilots of original tv shows on the service. we caught up with ceo emmett shear and began by asking him

how the pilot testing is going. emmett: we found that debuting new video on twitch, new on-demand series, is a great way to not only get engagement and interactivity but bursts of attention, viewers you would not otherwise reach. the twitch audience is always interested in picking up new stuff. i think it worked really well. it was a great pilot. we have to do more of than in the future. emily: this is something that netflix, for example, can't do. do you see more integration with amazon studios in the future? emmett: we worked closely with amazon studios promoting their videos and getting twitch content -- influencers into amazon content. we will definitely do more in the future. we are in the testing and experimentation phase. emily: you are just onstage at techcrunch and said that there is a big integration between

amazon and twitch coming. emmett: i cannot reveal too many details, but we have been trying to figure out with amazon how we create something that drives value for twitch streamers, that drives value for creators, really, because that is who we focus on. the twitch community, while being a great thing for amazon, i think we finally figured out an amazing integration point that is going to let us do that. i look forward to the speculation on what that might be. emily: here i go. you have been streaming political conventions, streaming art classes, for example. we talked about the pilots. will you be you going in any of these directions? emmett: we discovered as we did more non-gaming content that even though twitch is clearly a community for gamers, gamers don't just like games.

gamers like all kinds of stuff. we have seen great responses to the dnc and rnc content, good viewership there, really great responses to the creative content we are putting out there. we are launching today a programming channel that is going to have live people doing programming computers, doing new computer programming. that is going to be exciting as well. we have gotten a great response from the community, a lot of growth there. we will continue to do more of that. emily: what about integration that is more retail focused? whereby you could connect gamers with games and hardware and console hardware on amazon? emmett: it is clear that the twitch audience buys a lot of games and they use twitch as a place to discover what games to buy. our struggle is we don't want to go build something that feels like me too. it would be easy enough to go slap "buy on amazon" links all over twitch, but that is not useful for our community and we

don't think that would drive much activity in the end. we are looking for ways to sell more stuff, obviously, we would love to do that, but we are looking for a place to do that that feels native to the community. emily: i know you have been working hard to grow the twitch audience, been very firm about values of the company. harassment has been an issue and in the gaming community that can be relentless. what sort of progress have you made on changing that? emmett: it's a really hard problem. anytime you open up a chat room to let anybody talk, you open it to let people talk who you would maybe rather not be part of your community. i was really proud of the work our team did around the dnc and rnc in particular because obviously, if you have a political convention, that is a powder keg waiting to explode in terms of toxicity, people having a negative experience. we did a few new things we have

never done before. the one i'm most excited about is auto moderation, the first time running an automated moderation system using machine learning. we found that while it couldn't block everything, it could grab the worst stuff and enable the human moderators to have less to deal with. that was very effective there and we're looking at rolling that out widely after we test it. emily: one last question. social eating seems to be the hot new thing. it is big in south korea, where people are broadcasting themselves eating. how big do you think this phenomenon could become? emmett: social eating, as you said, huge in south korea. it is one of those trends where i don't frankly understand it. i am not a social eating viewer. but i remember starting twitch and me being really, really interested in watching gaming, and a lot of people saying who wants to do that? i'm just cautious at writing

anything off. just because i don't like it doesn't mean there is some group of people for whom this is exciting. i think it could be huge. emily: who knew? that was twitch ceo emmett shear. coming up, we speak to the ceo of a new sport that could go sky-high. tomorrow, do not miss democratic senator elizabeth warren, 12:30 p.m. new york time, 9:30 am in san francisco. this is bloomberg. ♪

emily: drones are off to the races after getting a following on youtube. the drone racing league, or drl, is accelerating its shift to mainstream tv. the league has partnered with espn and sky, with new investors jumping aboard, just closing a $12 million funding round. joining us now, drone racing

league founder and ceo nick horbaczewski from new york. you are racing drones at 120 miles an hour through malls and stadiums and subway tunnels. tell us exactly how a race works. nick: sure. drone racing is this new sport and the drones have a camera on them and they feed the video back to goggles you wear. they see what the drone sees. we build these large, elaborate, three-dimensional courses and the drones race through them at incredibly high speeds. emily: you founded this last year. how big could it become? nick: huge. it has the heritage and excitement of auto racing, but it brings in the new, exciting element of drones and videogame-like dynamics in things like three-dimensional courses. emily: is there a league out there that is a model for you?

nick: we look at a lot of different leagues. leagues like formula one, which has attracted a huge audience, leagues like ufc, which built a unique business around a sport that people initially had skepticism, and we also looked come obviously, at e-sports and what they have done building an audience for a new technology-enabled sport. emily: we were talking about twitch and a lot of people thought people watching other people play video games wouldn't go anywhere, but obviously, it is a huge business. with sports like football under the microscope, do you think viewers and networks are transitioning away from contact sports? nick: i don't know if drone racing defines whether people are moving away from contact sport. it is incredibly exciting. this sport is not an alternative to other sports. you are talking about loud, fast drones racing around interesting spaces, spectacular crashes. when you bring those things together, it is hugely entertaining.

emily: you have a distribution deal with espn, a deal with sky and others that go beyond distribution where they are investing in you. where is this going? nick: we are very excited about our broadcast deals. we have partners like espn broadcasting this in the u.s., sky broadcasting in the u.k., and in germany. they are as excited as we are about drone racing. they have seen the content, they know how excited audiences get. as you said, they are also investing in the league. they are committing to long-term partnerships to help us grow a global audience for this new sport. i mean, it is a new sport. we will grow an audience by exposing people to what we are doing. emily: you are also partnering with mgm and mark burnett to develop a reality show focused on drone pilots. what is a day in the life of a drone pilot like? who are these people? nick: they come from all different walks of life. drone racing is a global sport and they are all ages and don't

have a really typical day. the one thing they have in common is they fly a lot of drones. they practice for hours and hours. that dedication is what has made them the top people in the sport. emily: how about the folks who are watching? what is the demographic of viewers? nick: we have demographic data that says 18 to 35-year-old males who love technology, e-sports, video games, but there is a huge chunk of reviewers who just love traditional motor racing sports, who see it as a new form of racing. a high-speed form of racing, and they love that kind of action. emily: do you have a strategy to expand viewership across demographics? nick: absolutely. we are initially exposing people through the sports content, but as you mentioned, we have the partnership with mgm and mark burnett, which gives us an opportunity to create content that can run in different places that might reach a different

demographic than a traditional sports channel and could also broaden the appeal of the sport by helping people really understand who the pilots are and what their lives are like. we are confident that will bring us to an even broader audience than people who naturally gravitate to the fast-paced video you were showing. emily: drone racing league founder and ceo nick horbaczewski. we will keep our eye on you. nick: thank you. emily: time to find out who is having the best day ever. the winner is turner broadcasting. turner networks tnt and tbs will be the exclusive basic cable homes for all of the "star wars" feature films. the deal is worth $200 million includes network premieres of last year's "the force awakens" and the upcoming "rogue one." that does it for this edition of "bloomberg west." that is all for now from san

francisco. join us tomorrow for a conversation on the future of solar energy. this is bloomberg. ♪

♪ >> central banks are back in the headlines as the most prominent prepare their latest crucial statements. long running pursuit. it creates a giant in the world of seeds and pesticides. oil's oversupply is set to deepen as nigeria and others prepared to and mo c