and mark: president obama called for a course correction. the president urged both companies and leaders to speak up forcefully. obama: that doesn't mean that democracy is without flaws. foroes mean that the cure what ails our democracies is greater engagement by our citizens, not less. mark: the president said "the world is too small for us to simply be able to build a wall and prevent extremism from

affecting our own societies." yorkather of the new reportedly told the fbi in 2014 that his son was a terrorist. he said that his son was interacting with "bad people" overseas. he later recanted that claim. the syrian military set a -- set a truce brokered by the u.s. and russia had failed. prosecutors say suspects arlington to the attacker who is killed by police. - 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 demand for their cloud software. 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. we caught 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. emily: 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. do you have a view on what's safer? 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. emily: 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. emily: how pervasive do you think self driving technology will become? mark: we think greatly pervasive. it represents great lifesaving potential. it is a great future but it is being created in front of us. we don't really know what the future is going to look like. it is being designed and innovated right now as we are experiencing it. emily: when do 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.

emily: how involved are companies like google and tesla shape these guidelines? did you consult with them and how often? mark: we consulted with a wide range 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. the policy is out but we have a 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 there with mark rosekind. i also want to continue this

conversation with david strickland, now the counselor for the coalition for safer streets, which 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 through is way too slow for a tremendous lifesaving technology such as self driving cars. for the department and his leadership, to find a way to create a regulatory framework that is faster than the status quo is a tremendous outcome. emily: 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 david: it's a 114 page document 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 taken 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. emily: 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? david: mapping and geolocation 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

and protective of personally identifiable information and geolocation. the coalition is looking very much forward to working with the department as we go forward and thinking about mapping issues. emily: david strickland, thank you for joining us today. speaking 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. tesla says it took 10 days to 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. we will hear about the company that has the world's first self driving taxis. plus whysafra catz is betting 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. we will be there on october 4 to bring you the latest news as it unfolds. unfolds. turning to 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? cory: 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. you see a dramatic move up and to the right and it continues to

go that way for this company. the five-year chart, you are -- 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 software to getting all of 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. emily: you have been at oracle open world for the last couple of days. the company is looking to reposition itself in the ever-growing cloud market. yesterday, ceo mark hurd told you that amazon's lead is over and you spoke with the code ceo, safra catz about the push into india. safra: india is a phenomenal 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 technology and the opportunity for so many young people to adapt and pull in technology and become consumers. cory: the focus on india, i 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 technology, 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. the match between what they need to do to empower their citizens and the technology we bring is a perfect match. cory: i imagine the size of the business is different to because you can get them up really fast. cory: -- safra: you can handle industry of all sizes from farmers and remote villages to all the industrial companies and the world are based in india. we can scale all the way to full size with the cloud. cory: there is a governmental digitization strategy, unlike a lot of countries. safra: what got me started was the prime minister came here to silicon valley to talk about digital india and i saw a real 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. i knew as oracle and embraced us, i knew they could make it a reality. cory: in the world of the cloud, is the database still the center of that? i realize i'm asking the ceo of oracle. safra: what is the database? that's where all the big data, all of these things all go somewhere. for oracle, our platform is the

database. we have all the analytic tools, 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 that are able -- that enable your mobile phone, that enable sensors, that enable much better decisions. emily: a very rare interview there with oracle co-ceo, safra catz, who has been larry 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. they've got so much power and financial assets like no one else. they can out market sales force and buy anything they want. they seem 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. cory: 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. emily: some investors are not happy about it. i know you spoke to mark heard about it. what are they saying about it? cory: i asked if they were going to go higher.

they are not going to vote their shares and they won a higher price. safra catz 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? cory: 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. emily: 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. how they are taking on shout me. if you like bloomberg news, check us out on the radio. this is bloomberg.

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decision. boj policy the question is whether the bank is willing to increase its scale of asset purchases are cut its negative interest rate further. by doing neither at recent hasings, governor kuroda field speculation that the boj is running out of ideas and ammunition. that decision comes after japan's trade data once again disappointed with both imports and exports sustaining a prolonged losing streak. imports recorded at -- a 20th

month of declines. trade deficit of $184 million. takata shares tumbling. least fiveived at days from potential buyers, saying they will be considering the possibility of bankruptcy. bidders include buyout from kkr rival airbag makers and key safety systems. and flex and gate. the markets are anticipating something or nothing. let's get the latest with heidi waiting on the boj reaction. becauset's interesting we have them coming back from the lunchtime bernanke --

lunchtime break. nick ishares down about a 10th of 1%. some losses coming through. singapore up half a percent. you can see this has action. really, we are waiting from the bank of japan. the longer we wait, the more chance there is we will be getting some easing action from the boj. but we are seeing a lot of risk aversion ahead of the decision. takata is one of those we are watching. it really -- it reportedly got five bids for that business.

we will be watching these names very carefully. japanese banks, if we get an inkling there will be negative interest rates going deeper and declines when it comes to a number of these japanese lenders. emily: this is "bloomberg west." i'm emily chang. the samsung seven -- apple had a -- the samsung note 7 issues came just in time. apple had a 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? guest: 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 not then on sale but people had 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. emily: 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. samsung push hard to get this 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 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 to cost about 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. emily: 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 xiaomi. guest: 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 -- something shall me -- has 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 chain catches up and this is the 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? guest: 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. emily: our bloomberg news reporter in beijing. thank you both. i want to focus on one chinese smartphone maker. the latest shipment reports that them at the number two spot in china and force in the world overall. the company's rector of global 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? guest: 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. emily: how are you preparing for this? are you doing anything new to capitalize on this opportunity? guest: 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. we are just relying on the support of retail in going that way. emily: we talked about how apple is taking a shot at the lower end of the market and the cheaper version has been quite successful. what happens if apple takes a

direct aim at the lower end? guest: 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? guest: 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. we currently have the world's fastest charging technology and can charge phone from zero to 75% in 30 minutes. it's about making technology easily accessible to consumers. emily: you do sell phones 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. we are in the 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. emily: thank you so much for joining us there from sydney.

a story 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. the plan was announced today. 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. a head of telecom in hong kong says the combined value is 75 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. the company launched a benefit program for companies to help their employees pay off student loans. companies are using the program including seven of the 10 largest tech companies. i's ceo joannesof bradford. why do you think this program is

unique? guest: employers can contribute to help pay the student loan. emily: do employees pay part of that and it is matched or as a part of the expense? guest: the company sets the amount they want to contribute every single month. we also offer a program to offer the refi benefit program to their employees and we give them the benefit of ease-of-use and signing bonus. emily: 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. guest: 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 90% said if an employee -- if an 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. we think you have to earn your 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. we just launched with meredith 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.

people don't know how much they 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. they take mortgages and personal loans for credit card debt consolidation, home improvement, adoption, everything. emily: the online lending 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? guest: compliance is key for us 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. emily: they were public about wanting to go public. what are the plans to ipo or raise more money in the near-term? guest: i don't have any news to add onto that today. emily: great to have you back. thank you for stopping by.

up next, the world first self driving 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. we sat down with the attorney ceo for an update. guest: 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? guest: generally a little bit of both. [laughter] 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 -- guest: 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. we need to build in elements to 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. haslinda: you are competing with 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. haslinda: you have said that it's important that the software is perfect. guest: almost perfect. [laughter] haslinda: where are you in that process?

guest: the software today is very good. 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. emily: time now to find out who is having the best day ever. the winner is the music industry. retail spending on recorded music rose 8% in the first six months of the year. sales being driven by spotify 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 tech talent in africa and one of mark zuckerberg's stops on his visit to nigeria.

that's all for now from san francisco. this is bloomberg. ♪

♪ grexit's decision day. -- >> it is decision day. iran is committed to a price consensus. qatar sells a million dollars worth of bonds trying to fill a local hole caused by cheap energy. >> the chinese investors