emily: this is the best of "bloomberg west." we bring you all of the best interviews from the week in tech. exclusive interview with marc benioff. pokemon go has passed its fever pitch. how can they hold onto the game's massive global appeal? the european antitrust chief who put apple and google on watch

explains accusations he is unfairly targeting u.s. companies. our exclusive interview with marc any off. has been one of the most inquisitive companies. it closed deals since february for aad stone sat down conversation with marc benioff. how he feels about missing out on linkedin. new platform the rolling out in october. marc: it's already sold out. we have 200,000 people coming to san francisco. it's the biggest tech conference. we do have youtube plane. coming,have einstein it

the new artificial intelligence platform. it's going to give all of our customers the power of artificial intelligence, which is machine learning inside salesforce applications. brad: you do a good job every year of bringing in some crystallized themes. last are you talked about the internet of things. why is artificial intelligence real? when can we expect it? youth -- huge movement in our industry. we bought a dozen ai companies over the last few years. we spent $600 million for them. we're been able to take those employees and stitch them together into an incredible team. we are delivering this amazing new platform based on that technology with some the best ai capabilities i've ever seen.

brad: what is your pitch? kinds of different technology companies, how do you convince them to come? marc: we are the largest tech company here in san francisco. we are one of the fastest-growing software companies in the world. we are committed to something else. we are committed to improving the state of the world. we believe this is a platform for change. model, we give them 1% of equity, profit, time to give back. we focus on our public schools which is critical here in san francisco and oakland. that's important to them. they want to give back as well as building great products. a lot of companies haven't made that shift yet. salesforce as -- has.

brad: you talk about that commitment. hasn't -- has salesforce been so inquisitive? marc: we only by a company when two things happen. it has to be a great company with great technology. the price has to be right. into this year, i did not think we would buy any companies at all. it wasn't part of our plan. a series of thing started to happen which opened the door. the biggest thing that happened was we got a phone call that demand where had been on -- offer. we love those guys. we love that e-commerce cloud. this is an amazing a product its use by some of our customers already. armour, when they

saw the ability for sales force to come together, it gave us the ability to sell online. you can go to adidas.com and see it in action. they're going to sell more than a billion dollars this year on that platform. that's amazing. the technology is incredible. we knew it was the right for us. brad: i want to talk of a deal you did not do, linkedin. microsoft acquired the company. would you do anything differently? in the category of you can't win them all. that is especially true when you're going up against microsoft who has all the power and all the money and all the resources and has that monopolistic control. we gave it our best shot. we wish them the best. brad: does it make microsoft a more formidable competitor.

they have the printer division of hewitt packard. is this a more serious threat to salesforce? marc: i don't think so. it's the fastest-growing software company in the top 10. the thing that is exciting we are number one in crm. we are not going to win them all. that's the most important thing for salesforce and -- salesforce. brad: i want to bring up oracle. are they a stronger competitor now? marc: i don't really think so. oracle is making a desperation move to boost their cloud revenue. now he is going to be able to boost his cloud revenue and make is $10 billion gold. brad: you are friends with larry ellison.

or a text andll say things like that? marc: i do. my relationship with larry ellison is far more eternal and enduring. he taught me this. brad: he doesn't pull his punches either. marc: i will tell you how i look at it. 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 get off the court and go have lunch and remember how much you love them. i love larry ellison. he has been a great friend to me. there is no one in the industry who is done more for me than larry ellison. i am very grateful to them. haddock: salesforce has tremendous sales trajectory. there was some softness. how much of that was seasonal? how much of it do you still see? marc: the last quarter was

amazing. you saw in the top and bottom line, we raised for the year. what's amazing for us in the second quarter is two things happened to us. took the euro and dropped it down into the mid-one 20's. the gave us a significant acceleration of our european revenue. it gave us $150 million in foreign exchange. u.s.w some softness in the at the very end of the quarter. those two things combined and gave us a quarter that was not optimal for us. we still had a great quarter. i think there were execution issues. i hope i fixed it. we will see. the thing about software and running a software company, you

go for six or seven quarters and there's always something that seems to happen and you need to fix it and repair it. for salesforce, we have grown the company dramatically. we have 25,000 employees now. when we see there was a small execution issue in the second quarter, we can get in there and really work on repairing that and making the company stronger than ever. that is our goal. emily: that was marc benioff speaking to brad stone. coming up, self driving cars are on the street. we hail a ride to find out what it's like kind the we'll of the pittsburgh pilot. this is bloomberg. ♪

emily: customers can hail a self driving car with a few square miles of downtown pittsburgh.

there is a human driver, just in case. max spent the day testing out the service. this is his report from pittsburgh. max: we are here in pittsburgh for the self driving car launch. here we go. a sensor on top. that's the most important sensor. its mapping the road in telling the car where to go. there are dozens of these sensors, 20 cameras, radar. we have these safety drivers joining us. get people to understand what it's like without somebody behind the wheel. number -- uber. i'm going to push this giant green button. showing a map that is

all the stuff going on around us. the driver is hovering with his hands over the wheel but not touching the wheel. here we are. we are stopped at a stop sign. there are cars going by. you can see that on the screen. to take the driver seat and see what it's like to be a safety driver. this is eerie. it really feels like the car has a mind of its own. it's weird. you are fighting the tendency to grab the wheel. i have had my hands grazing the wheel. otherwise, i've done literally nothing. i have just sat here and enjoy the ride. max is with us now from

new york to tell us more about his experience in pittsburgh. was it mostly a smooth ride it? max: it was almost boring. there was one instance where a car pulled out a little bit and the driverless car expertly edged around it. that was the most exciting thing. emily: tell us about how many cars and what neighborhoods and when they will be expanding to other cities. max: this is what we know. cars right now in pittsburgh reader there were 14 when i was at the office on monday. there were a handful of neighborhoods, mostly downtown pittsburgh. not acknowledged it, i do think we will start to see driverless cars in other cities. have an office in san

francisco as well is one in palo alto where they are doing this research. it would not be a huge leap to imagine that. a handful ofnto other countries as early experiments. emily: are these your typical freelance drivers? are these experts from carnegie mellon? max: these are experts. ber has 500 engineers. many of them were hired from carnegie mellon. they are not phd's, but these are people with a great deal of training. i was allowed to sit in the safety driver seat. it was in a relatively controlled set of conditions. there was an employee sitting right next to me with his hand on this red button in the car. the computerf control in case something were to happen. emily: do they own these cars in

pittsburgh? do they intend to own all the cars in the fleet in the future? max: they bought them from a ford dealership. these are hacked ford fusions. confused to a very dealer in pennsylvania and purchase them. it's not entirely clear long-term. they are being tightlipped about it. they don't totally know. -- ceo told me two months ago was they see themselves as providing a driver, whether it's a human driver or a computer driver. that is the core of it. my sense is they would rather not owner a giant fleet of cars, they would be willing to if it comes to that. they just want to be providing rides at the lowest cost possible. they will figure it out from there. emily: we did speak with

sebastian thrun. he invented one of the very first self driving cars. take a listen to what he had to say. >> i am excited about this. i think it's nice to have a safety driver just in case. i am longing for the day were you won't need the safety driver. max: who isn't? emily: what are the safety drivers go away? max: there is a regulatory question, when do we as a society decide for ok with it. it's also technological. what they have said to me is it's not there yet. in -- onwere operating city streets, they were ready to take over if anything went wrong. in the shorter term, we may start to see some true

driverless cars in narrower circumstances. maybe on a specific set of the highway that they have mapped very carefully or on a very tightly cordoned off city. coming up, our interview d eumargaret vesta your on case against apple. you can now listen on the bloomberg radio app. this is bloomberg. ♪

emily: apples tax problem is back in the spotlight. this week, francine leconte asked her to explain why the specific is specific to apples

relationship with ireland. margarethe: they can set their member level of taxation. in other states it is 20 or 22 or 18%. givethey cannot do is advantages to specific companies. that makes it unfair competition. >> the next step is the appeals process. apple and ireland have said they plan to appeal against the decision. that will decide how much will be paid. emily: you have people in ireland saying it's not fair to be looking at unfair practices, but not too retro actively be changing tax practices. tax lawyersa lot of

wary about the entire scenario now. they think they have arranged a decision and then all of a sudden, there stuff going back a decade. that is raising? 's about the willingness of american companies to invest in the region. emily: the eu competition commissioner, they could have a similar arrangement with luxembourg. several companies are under scrutiny for their domination in search. off of that is fighting three antitrust probes. take a listen. >> we have a number of google cases. in europe, you are moving at what can be successful. we will apply to all the way.

if you start to misuse your dominant position to present others from having the same point of success, then we get concerned. that's the example of the google case. google is misusing its position to promote itself and stay were they are and not to allow for others to compete with them in a fair way. uber is in between. looking at it with my colleague and transportation and single markets, it's great innovation. on the other hand, there are issues comparing it traditional transportation, that kind of thing. if taxes are being paid. francine: our social platforms a concern? our concern is only

of competition is being closed down. that is the important point. theink one of the things german authorities are looking at is in that gray zone between competition and privacy. facebook is so dominant. you don't know when your football team is having their training session. it's a very dominant position. has this been used to minimize your rights when it comes to privacy? it will be very interesting for yet thisto follow and inquiry. the germans are looking at it. it will be valuable for everyone. francine: you are looking for more cases? margrethe: i think it's one of the more important things.

that is the new line of business. it is a more traditional business. any sort of traditional industry will be more data prone. public launch a consultation this autumn in order to ask experts and opinions. data iswledge and another kind of asset than just the turnover of a company. i think that's very important for us to be able to secure that competition. francine: you are targeting u.s. companies. will you also target european companies? margrethe: we are finding those

selective advantages where they are. scheme wek at the thought to be illegal last year, half of those who have the benefits were european multinationals. you find both. we target no one. we have an obligation for equal treatment, no matter your nationality, your size, your ownership. still with me is alex who covers apple. they did cover a lot of ground. i want to focus in on google specifically. google has multiple challenges facing them in europe. they are not happy about it. google businesses aggregating content. you look up a news story.

you go to youtube to find a video, it will give you those results. into of the songs sneak youtube results. as far as the european commission is concerned is in fair. i'm sure there are things you've looked up and says you can't find a song initially because it says for rights reasons it can't be on here. it's on the second or third page. it's always sneaking in. thatare proposing a law the parliament would have to vote on. it means google would have to police every single video to check if there is content which contravenes rights rules. they say this is unfeasible. still ahead, we discussed

pokemon go's epic release and the plans to level out the app. plus which is branching out here it couldo tells us why be the next big thing. this is bloomberg. ♪

emily: welcome back to the best of "bloomberg west." nintendo shares popped. themon go is coming to apple watch. nintendo partnered with the development of pokemon go. they get the credit for greatest gaming phenomenon. we have an exclusive interview and asked what it's like to be behind the scenes as the game has taken off. take a listen. they my engineering team,

have born the brunt of this. this is a case where people were in the office at their workstation 24/7 for weeks. intense and people monitored things around the clock area -- clock. we worked with their colleagues at google cloud to make sure the infrastructure was in place as the number of users one up. we had a couple of outages. there was some hacking. mainly, it was one wave of social after another. we launched in brazil after a few weeks in the olympics. thate are really happy they are using the product. our team is. we are glad that things are calming down a little bit and we can return to more sane levels of work. emily: there have been reports

of a slump in usage. purchaserss, are growing? have they plateaued? john: we have gotten past that initial explosion. we are back to normal in terms massive group of people that came in. some of those people left the game. acquiring users at a normal pace. ofare back to another level being normal. it's immensely popular around the world. people stay in the game. it's a good foundation to build our business on and look at other projects in the future. successhis as an early

gives us a lot of flexibility going forward. we did not necessarily anticipate this. augmented reality has so much progress. we want to explore that over the next several years. hopefully we will have other successful titles in the future. emily: how do you plan to use the data you collect about users? john: we are respectful of our users. what it provides about themselves is pretty limited. you sign up for the account and there is an e-mail address associated with it. that's it we have access to. we don't sell that or provide that to other people. data is anders people play the game. we look at that as a way of ensuring the integrity of the game and to improve the game itself.

it's not something we provide to other people. it's a sensitive issue. respectful of their data. emily: some privacy advocates are lobbying the ftc. why does the game need more data than just where i am? what is your answer to that? the data that is provided through the game is the data associate with the user plane it. as you're moving around with your phone, the data that's necessary to know where they are , we can determine if you have captured it or not. we know when you are interacting with a gym. there is a way facilitating that gameplay. emily: it's coming to the apple watch. how much traffic you expect?

john: we are excited to be working with apple. with have a strong relationship with google already. google is a shareholder in our company. we are thrilled to be working with apple. they are doing amazing stuff with the phone on the watch. i'm excited about the next generation watch. i think they got a lot of things right with that. there is a brighter screen and faster processing. i can't wait to get mine. for us, i think it's a great development. to be able to go outside and play with your friends and not look at your phone all the time. the watch is a great platform for that. you can keep your attention focused on the people around you and the place you are. i'm excited about the partnership. we are excited about working with that new technology. now to twitch.

the streaming service that amazon bought for nearly $1 billion is ranching out. they broadcast the conventions. pilotsstarted streaming of tv shows on the service. we began by asking how the pilot testing is going up. we found the debuting new video on twitch, new on-demand series on twitch is a great way to get not only engagement in interactivity but a burst of attention and some new viewers you might not otherwise reach. the audience always wants new stuff. i think it worked really well. emily: this is something that netflix can't do. are you looking at more integration in the future? been trying to figure out how we can get

content into amazon. i think we will do more in the future. where still very much in the experimentation phase. there is a big integration between amazon and twitch coming. what more can you tell us? emmitt: one of our big announcements, we've been trying to figure out with amazon how to create something that drives value for twitch streamers, for our creators. that's who we focus on. we have finally figured integration point it's going to let us do that. i look forward to all the speculation of what that might be. you've been streaming the political conventions. we talked about the pilots.

will you be going in any of these directions? though switch is a community for gamers, gamers don't just like games. they like all kinds of stuff. we've seen great responses to the convention content. launching today a programming channel that's going to have live people doing programming computers. i think that's going to be exciting as well. we have a great response from the community. we're going to continue to do a lot more of that. emily: social eating seems to be the next thing. people are broadcasting themselves eating. how big is this going to become? emmitt: social eating as you said is huge and south korea.

where i of those trends don't frankly understand it and i am not a social eating fewer. andmember starting twitch being interested in watching -- who a lot of people wants to do that? i am cautious of writing anything off. just his i don't like it doesn't mean there aren't people for whom it's going to be exciting. emily: rooftop solar has surged 1000%. it will barely growing all next year. abouthear from the ceo the sizzling rooftop resolution. this is bloomberg. ♪

emily: some investors see this space right for a people. the price of electricity has dropped and the price of solar

panels are dramatically less than the used to be. we caught up with the ceo of sun run. she gave us her perspective on why she believes the solar leasing model will be alive and well for some time to come. lynn: consumers want this. they continue to adopt it. i want to correct one of the opening comments to say that if you look at the key numbers, the growth rate is 30% year-over-year and we have penetrated 1% of the market and that growth rate can sustain for a very long time. emily: how do they want? do they want to take a loan to finance it? do they want to enter into a leasing agreement? lynn: i think for the long-term,

the leasing will stay the most popular area it overwhelmingly is today. there are two reasons why i believe that will be the case. we first one is because incentivize this through the tax code, if you are a business owner you can realize more tax benefits. i think for that reason, people will choose to lease. there is more value over time. i think the second trend people are missing is in a couple of years we will not just be selling solar. we will be controlling the energy management in the home. there will be storage, electric vehicles. that will be a complex relationship. that will be managed by a service provider. you have some competitors with some really hard times. solar city has cut their forecast by 24%.

you have cut it just a little. you are in the same market. what's the difference there? i don't want you to critique your competitors. you are seeing a minor slowdown and they are seen a major slowdown? lynn: if you look at the market overall, we are in the same market. when you have these huge transformational markets, it can be rewarding growth at all cost. you may make decisions that are not long-term sustainable. when the market gets tough, you may want to focus on profitability or sustainability. that's what my company has always done. that has better differentiation from the beginning. let's have a sustainable, long-term business. we are separating ourselves from the pack here.

if you look at our forecast for the back half of the year, we lowered titans a tiny bit. we will still be delivering 60% growth. here, elone we are musk is shaking things up. what do you think of tesla buying solar city and how is that changing the industry for you? move i think it's a good for sun run. awareness is our issue. this saves consumers money and brings clean industry. it's a product consumers want, but they don't know about it yet. having somebody else articulating our values to the regulators is valuable for us. this will push the innovation. it will push it in terms of how do we become a bigger piece of the home? how do we electrify transportation? that lifts the entire industry. emily: you are offering the panels with the home battery.

tell us more about that. lynn: one of the challenges with renewable or energy, people have said what happens when net metering ends? what happens when the sun isn't shining? storage is getting so cheap that we can install storage. we are not exporting that power. we're storied it up in the battery and that home is cheaper then the utility with zero upfront expense. cory: you can't do that in california. would not do it in california because it would not be a strong value proposition. we did install a battery a backup on that home. cory: you mentioned regulators. a senate committee sent a letter to your company and others looking at the evaluation you

put on these things and the tax break to get as a result. how do you determine the value. how do you determine the long-term value? what is the process for that? limit: we determine the value. we put a discount rate on that and then we value it. to the consumer or to you as a company? the: we do a blend between two. i think the good news is i can see this tax credit program being successful. it's created tons of jobs and clean energy. we have saved $100 million on electric hills for our customers. the government looks into that, i think that's a good thing for them to do. we are confident we valued that correctly. emily: are you working with tesla or other companies?

lynn: there is attentive innovation happening. we expect the cost of that product will come down 50%. that will open up increasing markets. it will de-risked our company from a regulatory outcome. emily: paint a picture for me in 10 years. things are changing so quickly. a lot of things you can't control like policies and utilities going out there and saying that people who aren't getting solar are paying for it. how do you see the industry being different in a decade? lynn: if you go to boardrooms across the u.s. today, and 9% of people are in strategic agreement that the world is moving toward a solar and distributed. that is new. people would've been fighting it. now they are believers. getting back to the earlier question about market penetration, i was with the

president of edison recently. he said we expect in the next decade we will have one million solar homes in southern california edison. you're going to see a dramatic shift toward rooftop solar. one of the things we should we optimistic about is we need to move to clean energy. this is the way we can get it to ramp. that was the ceo of sun run. celeb, facebook messenger expands their capability. our conversation is ahead. this is bloomberg. ♪

emily: facebook is seen serious

growth in its messaging service. all of this says the company rolls on a plat form with better tools for businesses. withweek we sat down david, the vice president. i -- ai.about i david: you have news feed, which is great. you can target the right demographic. then you have messenger, which we think is great. we are trying to build more bridges between those two services that share the same identity space. with this new release, you can actually do multiple things. exchangesve automated and human powered exchanges. capabilities,nal

we have a new web view that you can render at the right time. ui is better than conversational interface. we are bringing it all together. haveink we are going to good experiences. use sms are going to lot less or within messenger. david: you will probably continue to use amazon. sellers out many there and merchants and businesses out there that don't have the benefits of sitting on the home screen of your phone with a credential that is already stored with your identity to unlock. for all of the other players out to download the out.

in france, there is match.com a whole on dating experience. they are seeing their conversion compared to people with a mobile app. botndia, there is another that takes care of bill payments and different things in one place. they have 10 at conversion. the reality is people still use sms for messaging. david: it's not true anymore. this developed market and i think of markets where messenger is an app that people use a lot to message the u.s. and canada. what we are seeing is gradually more and more people are using messenger and they use texting

less and less. now they can find almost everyone they want to talk to on messenger. they don't need to have a phone number to find them. a name is enough. you have all of these great capabilities. now you can start streaming without the other person responding. we have more and more capabilities on messenger that makes it more differentiated and better to communicate one-on-one. you are doing more e-commerce. taking aoint are we cut of the revenue? is facebook making money? david: facebook is making money. as of today we are rolling out the new format on it news feed that allows advertisers to buy an ad that will get you in a thread with the business on messenger. we are cremating -- creating

more demand on newsfeed. for now, we are focused on creating. emily: will you take a cut of e-commerce transaction? david: that is not the goal. -- facebook's businesses advertising. that is what we are going to focus on. you have new ways for developers to share box. do you have a about this turn into a spam he experience? rules.we have clear we have great control for people conversationste they don't want to get notified from. we feel good about that. emily: will there be a bot store? david: what we want is fluid

conversations between people and businesses. will we add more discovery services inside messenger to enable brands to get their experience to the right user? probably at some point. we have the greatest service on earth to get discovery. we're going to leverage that great product to bring people. emily: that was david marcus. that does it for this edition of the best of "bloomberg west." we will bring you all the latest intact throughout the week. on thursday we will hear from the linkedin ceo. tune in at 6:00 eastern. we will see you then. this is bloomberg. ♪

carol: this week, the issue is focused front to back on the election. carol: but we're talking about the u.s. presidential election. and it's not about politics. david: no, it's about people. carol: red, blue, white, non-white. david: rich, female, non-female. let's get started. david: we're here at the -- with ellen pollack. you're picking apart this notion of two