globalization. the president urged those countries and leaders who believe in democracy to, quoting, speak up forcefully. president obama: that doesn't mean democracy is without fault. it does mean that the cure for what ails our democracy is greater engagement by our citizens, not less mark:. in a less than subtle jab at donald trump, the president said the world is too small for us to simply be able to build a wall and prevent extremism from societies.ur own the father of the new jersey and new york bombing suspect reportedly told the fbi in 2014 that his son was a terrorist. his father told the agency his son was interacting with "add -- "bad people." overseas." he later recounted that. military says a truce

brokered by the u.s. and russia has failed. france arrested several people in connection with a truck bomb that left 86 dead. the suspect were linked to the attacker who was killed by police. i'm mark crumpton in new york. bloomberg west is next. emily: i'm emily chang and this is "bloomberg west." the u.s. paves the way for driverless cars to hit the road. we will hear from government and industry experts about where innovation goes from here. adobe scherzer popping on higher software. their cloud and is india oracle's next frontier question mark the ceo tells us about her ambition for that fast and growing market. first to our lead -- the u.s. government is paving the way for

automated vehicles to hit the open road. a framework released by the highway regulators say cars need to meet a 15 point check list showing, for example, how their virtual drivers will function and what happens if they fail, how they have been tested. in an op-ed for the pittsburgh gazette, president obama threw his weight behind driverless cars as a way to save tens of thousands of lives. automated car technology has been the focus of scrutiny in recent weeks after a tesla car crashed driving on autopilot, killing the driver. up with mark rose kind on the release of new guidelines. i began by asking how he would make sure driverless cars are safe when they hit the market. mark: if you look at the policy we released today, the first part is guidance that includes a 15 point safety assessment. the list the 15 areas we expect

manufacturers and designers to look at as they design, test and deploy these vehicles. this is a departure because we're trying to build safety into the front and rather than the usual department of transportation, which is waiting until someone gets hurt or killed. safety in the beginning is a new proactive approach for us. it is interesting because the companies making these cars have different goals. tesla is pursuing a semi-autonomous model and google thinks it is confusing it is pursuing a full autonomous model. mark: what you just represented as a full range of what is out there. nobody knows what is going to be safest. that is why this policy identifies certain performance objectives that we expect manufacturers to attain, but we do not tell them how to get

there. that means we are opening this up for all kinds of innovation to look at new safety mechanisms for people to save lives on the road. we are waiting to see what will be most effective. at at what stage will regulators need to tackle things like insurance and liability and who is at fault when something goes wrong? mark: the second part is a model state policy that differentiates what the federal versus state rules are and specifically, for the states responsible for the human part of the driving, they have liability and insurance concerns. there's a specific recommendation to start a commission to look at liability insurance for how the state should address that issue. pervasive do you think self driving technology will become? greatly think pervasive. it represents great lifesaving potential. it is a great future but it is being created in front of us.

theon't really know what future is going to look like. it is being designed and innovated right now as we are experiencing it. you think it will become pervasive? will the driver's license become obsolete? if so, how soon will that happen? mark: the pervasive part is as soon as we can get it on the seat -- on the street. i'm not sure drivers licenses or people who are going to want to have their own hands of the wheel with the top down on highway one out there in california -- i'm not sure that's ever going to go away. how involved are companies like google and tesla shape these guidelines? did you consult with mark: them mark: and how often? rangesulted with a wide of people. we had an open public meeting in washington and in silicon valley. we had almost 50 speakers and dozens of people who submitted stuff to a public docket.

we have interacted with safety advocates, many factors, tech companies, academic to do research in this area and a wide range of people. we have a is out but 60 day comment time and 23 other day that's we will be doing over the next month to make sure we continue to learn and make a commitment to annually update this policy. emily: my earlier conversation d.ere with mark rosekin i also want to continue this conversation with david strickland, now the counselor for the coalition for safer represent several companies. thank you for joining us. where do these new guidelines hit the mark? david: thank you for this opportunity. -- the process is where it is pitch perfect. looking at traditional

rulemaking that can take eight to 10 years before it cycles for ah is way too slow tremendous lifesaving technology such as self driving cars. and hisdepartment leadership, to find a way to create a regulatory framework that is faster than the status quo is a tremendous outcome. where do you think they missed the mark, where they could have gone further or did not go far enough? david: it's a 114 page document and my coalition and team members are reviewing it. there's a lot of awful substance that went into the work. there are number of policy issues, so i can't say specifically which is the perfect aspect they are looking at or where there are opportunities for improving it, but that's why the agency has created a 60 day comment time as we work through those issues.

we will speak to them specifically when we have had time to absorb it. emily: where do you think the big issues will arise? david: there are a number of issues that will have to be fully and thoughtfully. liability is one aspect. preventing a regulatory patchwork is huge. while guidance is helpful in creating a framework, it is not a legally enforceable regulation to control the marketplace. there is still an opportunity for states and localities to create differing approaches which is the reason why the administration has taken a step to issue hope lee a framework which will be followed by the united states. that's one of the largest issues we will be working with to make sure it does not happen. an interesting question

we did not get to is the issue of mapping. we have seen over hit the street with self driving cars in pittsburgh, which has incredibly difficult range navigate. do you think regulars will beginning involved in mapping and will there be privacy issues that arise? geolocationng and are difficult issues. one part of the policy guidance is having the agency asked questions to figure out best methods and approaches. i think we are early in that aspect in making sure the maps are accurate and properly dated personallyive of identifiable information and geolocation. looking very is much forward to working with the department as we go forward and thinking about mapping issues. david strickland, thank you for joining us today.

of car technology, tesla is updating the software in its cars after chinese white hack hackers managed to break into the model less control system, taking over the locks, breaks, turn signals and when of wipers. the company said on tuesday that a realistic estimate is a risk to our customers was very low, but this did not stop us from responding quickly. days toys it took 10 fix this particular vulnerability. microsoft shares gaining after hours after the company announced its buying back up to $40 billion worth of stock on top of an existing $40 billion repurchasing program that will be finished by the end of the year. they are also boosting their quarterly dividend to $.39 a share. microsoft shares have jumped 31% in the last year. coming up, a singapore-based startup that beat uber to the punch. about the company

that has the world's first self driving taxis. is bettingra catz big on cloud-based growth in india. this is bloomberg. ♪

emily: google has sent out invitations for an october 4 event in san francisco. they are expected to unveil their new flagship smartphone called pixel. there's also rumors about a four k capable chrome cast and the daydream virtual reality headset. on october 4 to bring you the latest news as it unfolds. earnings -- adobe shares popping, trading 4% on the news that company with reported third-quarter revenue of just under $1.5 billion.

to explain what is behind the boost, i want to bring in our editor at large, cory johnson. adobe has been undergoing the shift to the subscription model. how is it going? it is going well and going well across all their business units. in the short term, the market like the results. by that was interesting if you look at the 55-year stock chart for this company. dramatic move up and to the right and it continues to go that way for this company. , you are --r chart if you are a stock owner, that's what you want to see happening. it reflects a big change they made from selling boxes of oftware to getting all emily: their customers on to the cloud. users have complained about this mandatory shift to the cloud. it's not reflected in the stocks, but is it reflected in

the numbers? cory: not at all. increasingly, a strong pace, 20% growth in a quarter they just reported, but steadily increasing is the size of the revenues. the percentage of growth is very strong. the third quarter can be difficult in the place with a 10 to screwup is where orders tend to be soft us. they were able to deliver a strong quarter this late into the transition. oracleyou have been at open world for the last couple of days. the company is looking to reposition itself in the ever-growing cloud market. hurd told ceo mark you that amazon's lead is over and you spoke with the code ceo, safra catz about the push into india. phenomenala is a opportunity. as big a contribution they were, i believe the potential ahead of

time to what it is now because the market is so enormous. we had the chief minister say the state alone has 110 million people in it. can you imagine? so many of them still need the opportunity for so many young people to andt and pull in technology become consumers. india, i focus on think you have been there personally. you have put a lot of effort into it. oracle is now focused on the cloud and where india is, that adoption could happen now. safra: with cloud technology, you can deliver much more quickly and at a much lower price.

both of those things are important in india because you can scale fast and they are on a very short timeframe. the chief minister wants to have things up and going throughout his state in three years, not 15 years like plans usually are. we can get everything going in the next year and be delivering to the citizens right away, and additionally, with cloud it allows you to benefit for the massive economy of scale, not only for oracle's mobile infrastructure but india and that infrastructure and that size. they needbetween what to do to empower their citizens and the technology we bring is a perfect match. i imagine the size of the business is different to because you can get them up really fast. you can handle

industry of all sizes from farmers and remote villages to industrial companies and the world are based in india. we can scale all the way to full size with the cloud. there is a governmental digitization strategy, unlike a lot of countries. what got me started was the prime minister came here to silicon valley to talk about saw a realia and i ability to bring everyone forward. i said i have to go and i met with the prime minister and the chief minister and many other officials and what i saw was a real unity. they very much had a vision and a were going to make it happen and they were going to make it happen fast. oracle and embraced

us, i knew they could make it a reality. the world of the cloud, is the database still the center i realize i'm asking the ceo of oracle. what is the database? that's where all the big data, all of these things all go somewhere. platform is the database. tools, all the analytic the infrastructure under it, all the applications, sewed don't miss our foundation. it is not all there is and there are so many new technologies enablee able -- that your mobile phone, that enable sensors, that enable much better decisions. emily: a very rare interview there with oracle co-ceo, safra

been larryas ellison's right-hand for a long time. interesting to hear her speak. what stood out to you? cory: does the first time she has talk to us on camera. so much power and financial assets like no one else. they can out market sales force and buy anything they want. to be really getting a lot of traction. emily: they have also gotten a lot of criticism that they have not done it fast enough. the other types in the industry are pushing this idea that oracle has been way too late to the cloud. they told us last week they were criticizing them for buying oracle revenues and i asked about that and listen to what she had to say in response. safra: we are growing faster

than they are by a lot. i'm pretty sure he would like to see that. emily: take that. cory: i look at the sales function for salesforce -- they are doing a 10 of acquisitions. some investors are not happy about it. i know you spoke to mark heard about it. what are they saying about it? i asked if they were going to go higher. going to vote their shares and they won a higher price. says at $109 is the price they're going to pay. emily: the cloud wars are ongoing. salesforce, microsoft -- how do you see it's differing in three

years from what it is today? when it comes to the hosting business, the hosting business as a service, microsoft is the number one player there where you have ibm and google trying to be in that business, there's a tremendous outlay of cash. amazon's capital expenditures, about $1.2 billion. they would have to spend billions and billions of dollars to build a business as big as amazon in the cloud. it's going to take a lot of spending. cory johnson, two great interviews and row. thank you very much. coming up, the land grab among the world's biggest right healers is growing.

details of the latest mega funding round, next. ♪

emily: the right hailing a -- ride healing at grab just received funding from soft tank, bumping their valuation to $3 billion. this is the largest ever funding round for a southeast asian technology company and the latest example of how the ride services are arming themselves to fend off uber. staying with car tech funding, lay at go has raised more than a billion dollars to develop its first electric sports car. in a statement today, they say

they got a handful of chinese investors for the project including legend holdings. last month, another company said it had raised a billion dollars to prepare to challenge tesla. coming up, the quiet rise of china's number two smartphone brand. shout me.re taking on if you like bloomberg news, check us out on the radio. this is bloomberg. ♪

mark: i'm mark crumpton. let's begin with a check of your first for news. senator warren says the wells fargo ceo should be criminally investigated by the justice department and securities regulators over allegations bank

employees opened accounts without customer permission to meet sales quotas. the massachusetts democrat is one of the fiercest critics of wall street and challenged him about what he has done regarding his repeated claim of being accountable. she asked if he had returned one paid orf what he was had fired any executives. gutless it is leadership. authorities in the greek island of lesbians are calling for the evacuation of thousands of refugees after people set fire to a detention camp. transfers to the mainland would be limited to avoid secondary movement to the rest of europe. are than 4000 refugees housed at that camp. a volcano in costa rica corrupted four times, forcing authorities to close the capital's international airport. the airport will

open after the ashes cleared from the tarmac. it has cost more than $200 million to battle a wildfire -- burning on a california's the egg sir coast. not include the actual damage done by the fire like destroyed homes. i'm mark crumpton in new york. it's just after 6:30 on tuesday here in new york and 8:30 in the morning in sydney. my colleague, paul allen, has a look at the markets. zealande market in new currently showing the most modest of gains. ab 2.4 percent after earnings came in very strong. we are expecting a flat start here in australia, though energy stocks may see a boost oil. u.s..ch lead from the markets waiting on their key

policy decisions today. deep anding to see negative rates from the bank of japan or more bond buying or both? ?r are we going to see neither no action from the bank of japan would add fuel to the speculation that they are beginning to run out of ammunition. we are expecting an announcement at 1 p.m. and a press conference about two hours later. there's no trade in japan because of the holiday. i'm paul allen for bloomberg tv in sydney, australia. this is "bloomberg west."

i'm emily chang. -- apple had aen chance to unveil e-seven but before that, a dramatic shift in the chinese smartphone market was starting to take shape. lesser-known domestic players had been seated show me top spot in china. joining us to take stock is david gramley in beijing and are tech team leader in tokyo. thank you for joining us. with gotten some new information on the status of the samsung recall. 500,000 new phones ship in the united states as replacement. what's the latest? what we are seeing is like a trickle of phones that and that in people's hands, either through shipments like the one you mentioned or in places like hong kong and china where the phone had officially

hadthen on sale but people gotten their hands on one through the gray markets or testing purposes. those are being included in the recall, though only not officially by the company. all signs point to steady progress. we are talking about a maximum of 2.5 million phones. samsung knows where they were sold and they are rounding them up now as we speak. do you have any indication whether this issue with the battery is impacting what customers are deciding to use? are they changing brands as a result? guest: the biggest fallout is to the brand itself. get thisush hard to phone out before the iphone seven to capitalize on the fact that the new apple flagship model was not going to be all that different from what we have

seen in the iphone 6 version. obviously, that backfired. it wasn't anything to do with the technology of the phone it out but the battery and the supplier for the battery which was a samsung affiliate. other things to note include the fact that this recall is going a billion dollars. some estimates as high as $2 billion. even in that context, we are talking about less than 5% of samsung's total revenue. the damage will be in consumers minds. do they think this phone is going to be a hazard to themselves? that's something we will have to see play out over the next weeks and months. we have been talking a lot about apple versus samsung and there's been a lot of interesting movement among chinese smartphone layers coming up from behind.

talk about the dynamics we are seeing with players like law way unseating players like shall may -- like shall me. while way -- they been on the rise for a long time. they are quite a powerhouse with a lot of infrastructure. that's what a lot of people don't understand about the number two and three plays respectively. they are owned by the one company. they have a lot of factories and a lot of infrastructure in place to dominate the market, which is what they've done in conjunction with smart marketing, targeting the youth segment and rural segment which is something shall me -- hasthing shall

been slow to talk about. emily: they have been talking about the issue being a supply and not a demand thing. >> the challenge is to make sure we meet demand much earlier in the lifecycle of the project. we have to be sure our supply then catches up and this is most important thing we have to work on as a company. emily: is it clear that is the case and this is a supply issue and not a demand issue? to be honest, that's not completely clear. we talk to different suppliers and it doesn't seem to be a huge amount of act log at the moment. there was an issue when some taiwanese suppliers suffered an earthquake, but since then, things have caught up. if apple can get its units out the door, i think they can as well.

our bloomberg news reporter in beijing. thank you both. i want to focus on one chinese smartphone maker. the latest shipment reports that inm at the number two spot china and force in the world overall. globalpany's rector of strategy joins us from sydney. my first question is about the samsung recall. have you seen any new users you believe are a result of this and otherwise, does this open up new opportunities? i think the samsung recall does open up new opportunity for us. consumers are looking for alternatives because of the recall and it is creating some good impact for us. how are you preparing for this? are you doing anything new to capitalize on this opportunity?

i think for us at the moment, it's working with our retail partners and ensuring we inform the staff on how to promote the brand that we have the alternative. on thejust relying support of retail in going that way. we talked about how apple is taking a shot at the lower end of the market and the cheaper version has been quite successful. apple takes af direct aim at the lower end? we are concentrating on the premium device at an affordable price point. that's where we are in the market at the moment. that way, giving the consumers to look at the alternatives in the market, especially at the price point we are offering. it is quite affordable.

have a look at the comparison between the two. emily: was sort of innovation do you see coming in smartphones? there's been a lot of talk about innovation stagnating. will that be the case and if so, where does innovation come from? i think it will come from both. a bit of everything. we always investing back into r&d and looking at ways to promote consumers. we're looking at the camera and looking at fast charging. currently have the world's fastest charging technology and can charge phone from zero to 75% in 30 minutes. technologymaking easily accessible to consumers. phonesyou do sell

outside of china. what are your global ambitions and what are your ambitions in the u.s. in particular? guest: we are currently number four globally and hoping to set the right foundation. early stages of expansion. i think america will just be coming along the way but it is still in the early stage of deciding on where we go next and how we grow that footprint. thank you so much for joining us there from sydney. we are watching -- comcast will introduce a wi-fi-based service by the middle of next year, entering a market dominated by verizon and at&t. today.n was announced comcast has been seeking new

sources of revenue as consumers ditch traditional tv packages and rivals consolidate. coming up, student loan help could be coming to a job near you. we will give you the details, next. this is bloomberg. ♪

emily: one analyst says and financial could be worth more than goldman sachs. ahead of telecom in hong kong 75s the combined value is billion dollars, about $5 billion more than goldman shares as of the tuesday closing price.

marketplace lender, social finance is diving into the employee benefit market. a benefity launched program for companies to help their employees pay off student loans. companies are using the program including seven of the 10 largest tech companies. atguess used to work interest is -- and is an industry insider for a long time. why do you think this program is unique? guest: employers can contribute to help pay the student loan. do employees pay part of that and it is matched or as a part of the expense? the company sets the amount they want to contribute every single month. to offerffer a program the refi benefit program to their employees and we give them

the benefit of ease-of-use and signing bonus. there's no question the student loan debt in the united states is incredibly high and there's a complete lack of knowledge around how to handle these loans. talk about the lack of information and how you are trying to change it. most people don't want to talk about how they have student loans. it impact your family and impact your life. it stops them from saving and stops them from taking risks and jobs. we did a survey of employees and -- if anif an employee employer offered it, they would be more likely to go work for them. it is the 401k of today. it has impact on people's parents and families because their students cannot afford to go to college and wanted to get ahead.

earn yourou have to way out of debt and people have to be debt free more than anything else because it gives them choice and gives them career hope and aspiration. with meredithed corporation, northrup gunman -- northrop grumman and microsoft. they offer student loan refi's as a benefit. only a handful are doing a contribution, but every day more people want to do the contribution program. we help them administer it and talk to their employees about it. much they't know how talk about it. one of the largest sources of mortgages for us are some of the tech companies in the valley, people who have refi their student loans and it is convenient and we do everything online.

and personaltgages loans for credit card debt consolidation, home improvement, adoption, everything. lendinghe online industry has been through quite a transition and there's a lot of buzz around this idea that the fact data could help identify better borrowers. we have seen lending club and broiled in a couple of scandals and there is skepticism around the sector in general. how do they avoid this pothole other companies have fallen into? is key for usnce and we go after a very specific borrower. we make sure hours are well-qualified in the customer service and support is there, that we have done everything we can and we help people when they lose their job get a job. we have a career services team

and we do events where people come network. if you went to school and you are working hard, you want to meet like-minded people and have a house and so we look at ourselves as lifestyle, offering best in class services. they were public about wanting to go public. what are the plans to ipo or raise more money in the near-term? i don't have any news to add onto that today. great to have you back. thank you for stopping by. up next, the world first self .riving taxi fleet launched we will talk to the ceo, next. this is bloomberg. ♪

emily: one month before over launched its self driving taxis in pittsburgh, a startup be it to the punch. the attorneyith ceo for an update. we have been conducting these trials in singapore and we are trying to expose people to the technology they have heard so much about. as a company, we are getting very valuable feedback about their experience. how did they like the experience where the steering wheel is turning itself. where they excited or scared? haslinda: were they? generally a little bit of both. there's a bit of apprehension because it's like magic to see the steering wheel turned by itself. it drives frankly similar to the way they drive and then quite

soon, they almost taken for granted. haslinda: but trust is the issue. you have a driver on standby in case anything happens. when you remove the driver from the car -- we have a driver who is there to make sure all systems are go. we are trying to allow people to experience the technology in a way where they see the driver and know it is safe. the next time they get in the car, there will not be the backup driver but they will have a sense of trust instilled in them. haslinda: have you found anything unexpected? guest: people tend to assign humanlike qualities to the car to understand this technology. they say things like the car is driving like my mother. we take that as a compliment. they called their car harry and they were cheering it on as it did sophisticated new verse.

so i think it's a way to understand this technology and bring it down to a human level. haslinda: when you have a human there, you can deal with emergencies. when you have a driverless car, what happens? guest: methods of interacting with the system -- you just tell the driver of that i do stop at the hospital and go back home because i forgot my cell phone. toneed to build in elements the interface so customers can touch buttons or speak a command and reroute the car or declare an emergency or any other contingency that might come up. haslinda guest:: when can we expect a rollout? we are targeting 2018. we plan to start in singapore and then spread throughout the region and throughout the world. withnda: you are competing the big boys like uber and i think you caught the world by surprise. what do you make of the competition and what do you need

to do to stay ahead? guest: it's a big, global opportunity. we're not too concerned with the competition. there's opportunity many places around the globe and if we can get the technology right, we will have created something extremely valuable and have a lot of opportunities to go to market. thatnda: you have said it's important that the software is perfect. guest: almost perfect. haslinda: where are you in that process? good. today it is very but the difference between very good and perfect is a long distance to close. we are testing it in real world conditions, but there's more work to be done before we can convince ourselves and authorities that this is safe enough to be put without a driver in front of the public. time now to find out who is having the best day ever.

the music is industry. retail spending on recorded music rose 8% in the first six months of the year. spotifying driven by and apple music. the music business has been hurt by almost two decades of kleins caused by ira c and falling prices. that does it for this edition of the best of bloomberg west. tomorrow, we will sit down with the ceo of a startup that connects companies with top tier and one of in africa mark zuckerberg's stops on his visit to nigeria. that's all for now from san francisco. this is bloomberg. ♪

>> from our studios in new york, this is "charlie rose." charlie: we begin with the explosion in manhattan on saturday night. taken intoi was custody after being wounded in a gunfight. he is suspected to of orchestrated the bombings in new york and new jersey over the weekend. he's a naturalized citizen or interior ei. inwas discovered captured new jersey. you got pulled into this