>> forecasters are calling it the most powerful storm in about a decade. it slammed into haiti today leaving four people dead. the storm is on track to deliver a glancing blow to florida before spinning up the east coast. united nations secretary-general ban ki-moon is urging the u.s. and russia to resume negotiations on syria. he says he has been holding talks with john kerry and other russian officials. the airas transported defense system to syria to attack one of its naval facilities there. it comes after the u.s.

suspended talks with russia on how best to coordinate airstrikes. day,l news, 24 hours a powered by more than 2600 journalists and analysts in 120 countries. "bloomberg west" is next. emily: i am emily chang and this is bloomberg west. google gambles on smartphones. we will break down their strategy for the $400 billion market and plans to take on apple. and chris dhaka, why he is disappointed in jack dorsey and is hoping twitter gets bought. and i sit down with mark cuban who holds nothing back on donald trump.

first to the lead. google takes its biggest leak yet into the $400 billion smartphone hardware market after years of outsourcing development google ishone makers, taking the apple approach developing phones from end to end, in house. take a listen. >> phones are the most important device we own. they rarely leave our side. they are most people's lifeline to the internet and each other. today, i am excited to introduce you to a new phone made by google. we collect pixel. pixel. call it emily: the tip the opportunity to announce a handful of new electronics including a speaker device and a headset meant to spread vr to the masses.

reporters mark bergen, and mark derman. this is your first time with me. you,t to start with margaret and -- mark german. what stands out to you? >> the amazon speaker. we expected the pixel strategy,s and that but they announced new software development kits. one to connect to apps, one to connect to the other devices in your house. it is interesting that they are going after the home market from two angles. >> i didn't think the hardware announcements were that interesting. the announcement today was them showcasing how good the google assistant is and talking about the strategy to put it on as many devices as they can. anytime -- iwhere,

go to google first. >> he began talking about machine learning and ai. it wasn't about hardware. is motif through the event we built this system, is better than anything anyone has built, is the next generation of search and mobile a.i. they want to get it to as many places as possible. emily: let's take a listen to what he had to say. >> a lot of this is about rolling out the future strategy of google centered around a.i. and machine learning. some of the hardware we brought to market showcases those capabilities. building hardware and software together makes it so we can innovate faster. more capabilities. emily: for so long, google has outsourced the production of

phones. now they are doing it in house by themselves. could this be game changing? android has a huge market share, but google-specific devices have not done well. >> i don't think it is a game changer today. it is an introduction to the game changing done the line. a lot of google executives we spoke to are indicating that this is more of a journey. every year they will do more and more. a lot of googlethey are startinh controller. as well as new camera work on the chipset. overtime, ulysse more custom work, wireless -- you will see --e custom work, wireless turn to googlel as more of a hardware company. >> once you control the technology stock, you cannot

deliver the kind of experience that you want. emily: why has it taken so long? >> hardware is hard. it is hard to make money and google is a b to b company. it sells advertising. it doesn't have a go to market strategy for selling consumer devices, knowing how to advertise to consumers. there is a lot of challenge ahead of them because this is new to google. tyheir -- their previous attempts have not done as well as they would like. emily: the do have some things on the market, crumb test, -- chromecast, chrome books. >>chromecast has done surprisingly well. notnew pixel phones are undercutting apple or the other android phones in the market. they have done affordable thrifty hardware. they have not done mass scale high-end. emily: let's talk about the are

-- vr. what they have unveiled is a big step above uggla cardboard. -- google cardboard. can they be a big player when you have oculus and htc? >> the big factor for google becoming the de facto vr headset maker is based on what we saw today. they have the headsets, that cost $80, you plug the phone in and it works. the others have a combined solution in hundreds of dollars. there is when you had to connect to a whole laptop stack. the way google is doing it is correct. emily: doesn't work? cardboard? a the screen could be better, bit higher resolution, but if we are looking at this as a long-term solution to the vr concept, this route they are

taking is very promising. right now it is just the pixel. other phones will get more functionality over the next few months. as of now it is a bit of a picture. emily: what is the market for this? >> there is a different question to be asked. i don't think that hardware is the issue. hardware is part of it, but you have to have content. media, social media, gaming. google announced some things today around their intent to make the other portfolios available. itil there is a use case, don't think we will see consumer demand. first you have to have the content and experience. >> they announced today a downership with netflix

the road. if you think about what consumers would want from an $80 device that you can wear in bed. hbo is at the top of the list, netflix is at the top of the list. that hits territory for consumers. >> i'm skeptical there would be a bigger market beyond niche gamers. enthusiasts and others who might be willing to splurge. what google has his mapping software. they showed today they could do vr tourism, other games like pokemon go built on the back of google maps. that is one area they could carve out some substantial room. emily: what about this home device? it is exciting. it has been so much on amazon echo. how optimistic are you, julie, about it? >> i am optimistic because the google assistance is going to be so good. at the end of the day, a wi-fi speaker is not an impressive

piece of hardware. amazon sold 5 million of these devices. what is compelling is if they can make the assisted part work and train consumers to think differently about how to access services, turn on music, use it for home control. three to five years from now, the possibilities are exciting. emily: where is apple? >> we reported a couple weeks an that apple is working on amazon at coed google home -- amazon echo and google home like speaker system. is doing something that sounds like it is out of the apple playbook even though apple doesn't do this. if you were to use an app like square,r linked in, or you have to download the app and

it can work with siri. the way that google works, you don't have to install the apps, defeats through their network. you can say, google, calmly and over to bloomberg headquarters, to -- call me an uber over bloomberg headquarters and it will just show up. >> that will get a little clunkier. work have been doing deep with the apps. if they can deliver, it will be fraction less, but there are a lot of -- frictionless, but there are a lot of steps. emily: thank you all for joining us. google has never officially confirmed it is interested in owning twitter, but analysts say it is the best of all likely buyers. cantor fitzgerald cites twitter user data, news aggregation and

cost efficiency as reasons they would make a good pair. google is working with advisers to consider a potential bid. >> i struggle with why they would want to do this. right now they get the benefit. google indexes tweets now. when you do google search, the tweets come up. i'm struggling with the rationale behind this. i know it is a rumor, but i think they get a lot of the benefit of twitter without the headache of owning it. emily: we will discuss the future of twitter with the outspoken venture capitalist chris dhaka who thinks google would make a good fit for twitter. serial entrepreneur mark cuban everythings take on

from --

emily: dallas mavericks owner and serial investor mark cuban has up and shy about voicing his political preferences this election season. he was one of hillary clinton's guests at the debate with the republican nominee last week. cuban sat down for a first on bloomberg and gave his thoughts on the state of silicon valley, the downtick of tech ipo's, and of course donald trump. >> i think what is right with the startup world is everything. opportunity no matter where you are in the world. if you have an idea and can follow up, everything is possible. what is wrong with it? there is an attitude here in the

valley where it is like go big or go home. fake it until you make it. and we have given up on ipo's. that is bad on the country. there should be more ipo's. where would facebook be if they didn't acquire instagram or oculus? what would happen with the streaming or gaming industry if twitch was not acquired? there are hundreds of countries that -- companies that were acquired 15 years ago that would not have gone public. emily: how will this affect deals and growth in general? mark: when you have a president -- let's say trump wins, you don't know what he will say next and that is the ultimate uncertainty. if he cannot control himself this close, he is that going to change. one ridiculous or offensive comment and north korea drops the bomb on japan. obliviousnessn in

about the world and putin goes further into the ukraine. those are the types of things that rattle everybody. when i said the market would tank if he were elected, where is the ultimate uncertainty? social unrest. if you don't agree with taxes or hillary clinton's programs, you can go to your senator or congressman and deal with it. if someone is just oblivious to what is going on in the world -- look at charlotte. businesses cannot open. it doesn't matter what the tax structure is. if businesses cannot open because they are afraid someone will get hurt, or a friend to send your kids to school, that is when society takes a turn for the worst. emily: you are saying there could be massive social unrest? >> who knows. hillary clinton understands about the power and the world. he doesn't. when he was asked about the change in obama's first strike

approach, he didn't know what he was talking about. that is the scariest thing ever. this is less about his politics, less about what he is trying to propose as policy, not even about his lack of understanding as a policy, as president, if you make one flippant comment and it is defensive -- offensive to an unstable world leader, that is all the excuse you need. onebomb on a nato ally, or incursion on a nato ally, we are in a different world. as a business person i look at the probability of risk assessment. is there a greater than zero chance that donald trump would say something stupid to cause north korea to take action? yes. is it a greater than 10% chance based on his 3:00 a.m. tweet about a beauty pageant contestant who gained weight?

there might be a 75% chance. i don't care what you think about hillary clinton, and we can argue about the crazy stuff said about her, she is pragmatic, she is smart, she understands deterrents, she knows the nuclear triad, she understands the military. when he tried to explain cyber, he didn't know what he was talking about. you add those things together with hillary clinton and she can do a good job. she has contextual awareness. we cannot say any of those things -- right now, 30-some days away from potentially being the president, we are talking about, can someone keep his phone away? emily: you have blasted him for not paying taxes. what is wrong with that, legally? >> nothing is wrong with him using those operating losses and carrying them forward. i have as well. but if i were saying i am the

world's greatest businessperson, i would admit my mistakes. if i were releasing my taxes and i had a $915 million loss, i would tell you what. engineer andial trying to hide what i have done great he is a really person and cares about investing in people, why not say, i took a big chance. i thought it would create this company that would do $10 billion in business and create jobs, i failed but i learned a lot from it. there is nobody who has ever been successful that has not admitted failure. he has never admitted failure. emily: you said not paying taxes is unpatriotic. you are a step of -- a step ahead of trump. have you ever paid more taxes than you owe? >> not more than i owe, but have i written checks to the treasury? multiple times. i have written checks for overtime for police.

setting of videos in the lgbt community part of town. i've written checks to get graffiti taken care of in dallas. i don't know how many millions of times or how many millions of dollars. and i paid taxes just to pay taxes? no. but have i written checks for the city of dallas? absolutely. when i talk about being patriotic to pay taxes, i mean that you can push the envelope in different ways. there is every likelihood that rather than being a real estate license, it was a tax shelter. have $1 billion in assets to lose $950 million. if you do not have the assets to write off, you will not get the loss. there had to be something else, in my opinion. emily: you set in the front row. hillary clinton even said in a rally that she thinks you unsettle trump. will you be at the next debate? >> to be determined.

emily: tell me about that experience. leghere is the question the was pumping and he was leaning forward. i don't think it rattled me, it was the audience. he said a few things in the audience guffawed at him. that set him back because he thought he was on a roll. secretary clinton threw a few haymakers and then he got combative. i don't what to see it as a distraction. i was trying not to look at them. across the aisle from me to you jr, eric.y trump, don jr was on his phone the whole time even though that was against the rules. there were a couple people rolling their eyes on that side of the aisle when donald was talking. not when hillary was talking. me that there is

turmoil and unrest. you may see major defections from the trump camp. that was the sense i got from talking to people and in the follow-up. emily: that was investor-entrepreneur mark cuban speaking to us from dream force today. specialer, bloomberg's coverage of the presidential race continues tonight. senator tim kaine and mike pence face-off in the first and only vice presidential debate. join us in new york. this is bloomberg.

emily: yahoo! is said to have developed software that scans incoming e-mails for u.s. intelligence officials, this is according to reuters. reuters says that the ceo of yahoo! marissa mayer's decision to obey the request led to the

2015 departure of the chief information security officer, alex they must. -- alex stamos. julian assange says you can accept a lot expect a lot more from wikileaks. his comments were part of an online news conference marking wikileaks 10th anniversary. still to come, our exclusive in-depth interview with chris sacca. why he is disappointed in jack dorsey. that is next. this is bloomberg. ♪

>> i am mark crumpton, you are watching bloomberg west. federal officials have recovered a second black box and video from the front car of a commuter train that crashed into hoboken,

new jersey's terminal last week. the associated press reports investigators estimate the train was traveling 20-30 miles per hour when it crashed. one woman was killed and more than 100 others were injured. the colombian president satnntos will meet privately with his one-time rival uribe. no campaigne arguing that absolving the rebels of war crimes sets a dangerous precedent. the u.k. from minister theresa may -- prime minister theresa may is at the saudi's to look into allegations that weapons have been misused in war-torn saudi. saudi arabia accounted for nearly 40% of u.k. arms sales in the nine months.

the state department is considering a pilot program to allow american citizens to invite and sponsor refugees. anti-refugees sentiment in congress is threatening resettlement programs. it is just after 6:30 p.m. tuesday in new york. paul allen has a look at the markets. zealand has been up and running for an hour and a half now. currently off 0.6%. in a little over an hour's time, charles evans will be speaking at an event in auckland, new zealand. it will be interesting to hear his views and possibly counterbalancing some of the hawks on the fed. nikeei futures are looking positive despite their weak lead from wall street. we are expected to be down on

the nsx when we begin -- on the asx when we begin trading. elliott is speaking to lawmakers in cambridge right now answering their questions. on tuesday it was the head of australia's largest bank's turn. bank's stronge profit saying a strong economy needs strong banks. australia and august retail sales are expected to decline 0.2%. allen.ul all in -- this is "bloomberg west" i am emily chang. chris sacca doesn't mince words. he has spoken out on the future

of twitter and politics. i sat down with the venture capitalist earlier today and ask what the future of twitter looks like. story ofan incredible underachievement and a potential never realized. i would be excited for someone with product vision to go in and take some chances. we know that it has the most valuable body of information in the world. there is stuff in there for every person on this planet. they have failed repeatedly to service that in an easy to digest way for most normal people. emily: have you been disappointed with jack's product leadership? see was really hoping to someone else get back involved with the company. that is why we put our hats behind jack coming back in. back, notto have adn in a formal role. usersk it from 2 million

to 200 million users. though he may not be that type of guy who would like to keynote on center stage, his ideas have been ahead of the market. four years ago, he was pounding the table to get into live video. now it is obvious that live video is the evolution of all of its platforms. emily: why didn't that happen? >> i'm not sure. i didn't see it grow. theink he has delivered on thatue side to the extent he can without user growth. i would like to see a partner who has distribution to grow it organically using other platforms, but to say, we have the best data and faster than anybody else. platforms, butwhy aren't we mak? emily: he said that he thinks twitter can still be an independent company, what do you think? >> i don't see how it gets materially better without fresh

blood. i don't see a path to that. i don't hear of any twitter 2.0, 3.0, or 4.0 in the works. i haven't seen anybody talk with passion about what is come undone the pike. emily: do you hope for acquisition? a new ceo? >> i hope for acquisition. there are great product teams that fit in naturally. it is a natural couple met to four or five other companies -- complement to four or five other companies. it is an obvious google fit. google underestimated the company for a long time because it is not scientifically hard to pull off. like google underestimated blogger for a few years. it is a canvas where humanity paints incredible thoughts. that is what twitter is. facebook has tried to copy this

company and bunch of times and have not pulled it off yet. they could really bring some curation ofj t to the the tweet. if i am busy all day & in i don't what to see the 10 most recent, the 10 best. that is why sportscenter exists. you can see the highlights of the day and not just the game it happens to be on. do wellmicrosoft would to absorb this business and take chances with them. emily: disney? ting thee are overweigh importance of media on the platform. there are a lot of users and engagement. if you do that, media partners will come. you don't have to do a strategic media access deal to get people excited. you have to make it the most fun place to engage and the easiest place to monetize and then the content shows up.

years ago i brought kobe bryant by the twitter offices in kobe said, how much did you have to pay the nba to get that? and he saidhed, why are you laughing? they said they give it to us for free and we will split the money. people will tune in to actual broadcast and they have that to back it up. you don't need a strategic content harder -- partner deal. emily: you were the biggest partner at one time? have you sold twitter shares? >> i have definitely sold twitter shares. emily: how much? >> i don't own as many as i used to because i am not an idiot, but i don't own as many as i should because i am an idiot. emily: how much should it go for? >> i still think there is a lot of potential. it is hard for someone that is not growing to justify paying

over where it is trading in the market. i think it is priced to perfection. emily: you have been using snapchat a lot more. what is the potential of snapchat? >> snapchat is interesting in that what he wishes it is less about the product and more about the product team. that is a company that has been willing and able to reinvent itself. they are bold and take chances. when they originally walked up to me after a talk, they said we love what you stand for, we love the way that you work, we want you in our deal. they walked away and i told my younger business partner, he said, what? by the time we got back to snapchat, they had run away to do a deal with someone else. that probably cost us a few billion dollars. i should have evaluated the team. stories did not exist then. it used to be ephemeral and now they are saving all the

memories. with the glasses and what is coming on with augmented reality is fascinating. i don't own a stock their. i wish i owned it a few years ago. i like a quick and nimble they are. emily: how long will you stay in this game? >> i took a step back a couple years ago to rediscover why i wanted to do this. you cannot be half-assed about it. you have to be all in. if the download everything and try everything. when i left san francisco to move to tahoe, that was our model. bring travis, bring garrett up to tahoe and go deep. that is a full commitment. i have an incredible life and three kids under five. that cuts the noodle. i took a couple years off to brief. shark tank has been a little bit

of a backdoor back into diving in with the small companies and rediscovering passion. i care about the charity work at charity water. we have environmental and climate stuff that i care a lot about politics. emily: what is your take on the election? clinton versus trump? posted date. >> is the only -- post debate. >> it is the only take you can have if you are in the basis world. i suspect any business leaders or in the big company community who don't feel there is any other choice in this election than hillary clinton. we know she is eminently qualified. the one thing she has, 30 years of experience,'s baggage. her favorability was over 75% until they kept heaping accusations on her that have all proven to be untrue. there is a residue that is completely unearned.

we have a guy who, even if you come at this from a complete business-free case, this will be a disaster for the markets, a disaster for rates, a disaster for entrepreneurship. he has openly threatened to sue and sensor companies. that is not how this sector does business. you want a roadmap free and clear to innovate and he stands in opposition to that. that is why you have seen hundreds of leaders in this community come out against them. these are people who are traditionally republican. look at that mark andreessen's of the world. this guy is an unqualified disaster. emily: you are a billionaire as well. what you think about trump using the tax code? >> i object to you saying "as well." i don't think he is. i think he is a total fraud. i think that is one of the reasons why he will not put his taxes out there. if he had the money, he would be

self financing his campaign and he is not. instead he is taking money from his campaign to pay himself. he doesn't operate like any person i have ever seen with means, particularly with that much ego. i do think he is that much -- is that rich. i think he bottomed out and that show saved him. that show did not generate his claimed $10 million. emily: should he not be paying his taxes even though it is legal? is there something morally wrong with that? >> we should admit why he is not paying his taxes. he uses shelters that are very aggressive. there is no way he gives his money away. i have no doubt that he has money offshore. that is something that secretary clinton did not bring up in the debate. there is no doubt that he has money parked offshore. anyone rich from that era used to do that. romney got tripped up in it. his name came up 3500 times in the panama papers.

this guy has skeletons on top of the skeletons in the closet. certainly, i'm not asking anyone to volunteer more taxes than they should, but if he talks about how he is uniquely qualified to close the loopholes, change to his website and look at his tax plan. it expands the loopholes for rich people and put people like me in a much better position. my tax rate would come down by half in his world. the rubber does not hit the road with this guy anywhere. he is completely full of it. that is why i think that anyone who is paying attention feels that. we have to empathize with the fear driving his support. a lot of americans do not feel like they have control over their own destiny. they were caught up in the financial crisis, maybe lost a job or a small business, and are working at walmart as a greater. if you were in that position, you would be freaking out too.

if you feel you cannot leave your kids in a better spot, i would understand the lashing out and looking for someone to blame. if we have any hope at healing, we need to reach out and understand that these are not b ad or evil people. these are people who would like to be in the same kind of position that their parents were before them to make the world a better place. emily: that was lowercase capital managing director and founder chris sacca. we will bring more of that interview tomorrow, including his thoughts on uber as an early investor. a few months ago, samsung was coming off its best courtly profit in two years. after a massive global recall, they are preparing to release quarter earnings. will to you what to look for. this is bloomberg. ♪

emily: on today's funding board, this venture from shut up is doubling down with a new fund worth $500 million that will focus on startups. fund up to 200 deals and use the rest of the fund for follow-ups. they are currently interested in google rival grab. samsung is prepared to release its first earnings report since the global recall of its flagship phone. sales will no doubt fall short of original projections, but samsung has been working hard to limit the damage. they recalled more than 2.5 million phones and has already begun shipping replacements. the will likely post your slowest race a profit in a year. joining me now is peter else

from live -- peter ellstrom. indications were this would be terrible, but more recently, not as bad as some analysts had expected. peter: the projections for note 7 sales in particular have been cut dramatically. they are down about 38% according to what we have seen. they are likely to ship only 8 million note 7's this year. currently because they have not been able to sell them during the crisis. they are pretty far along in terms of the recall. of the phones have been replaced and are beginning to ship new phones in the key markets, including korea and the united states. earnings give a broad indication of operating profit and revenue.

they may give insight into what this recall will cost. hopefully they will give us some transparency. emily: what about the long-term follow-up? samsung has said that most people are replacing their phones, but over the long term, do we see customer switching brands as a result? peter: that is the key question. not incidentally, google introduced a line of high-end phones today. you will see a lot of cup efficient in the market in places like china. samsung already has a competitive market we talked -- market. we talked to retailers in competitive places and they said the early results show some of the other phones are taking a bit of a hit at this point. samsung has been working hard to

contain the damage and limit the fallout. chinaave a challenge in where they decided not to do a full-blown recall. this is most of the phones had new batteries and were -- new batteries and were fine they were a bit perturbed about that. emily: how much pressure does this put on the next model, the 8? could that be delayed? peter: we do not have indications at this point that it will be delayed. it will be an important launch. the market is getting even more intense. [nohave competitors like audio] emily: it looks like we having some technical trouble with peter there in tokyo, but thank you for weighing in. despitehares are lower

a forecast that beat analysts estimates and despite posting its lowest quarterly revenue decline in a year. report, micron shares had gained more than 25% in 2016. coming thursday on bloomberg, tom keene and francine lacqua sit down with ims managing director christine lagarde. that is live from the ims headquarters in washington -- imf headquarters in washington. if you like bloomberg news, check us out on the radio. you can listen on the bloomberg radio app, bloomberg.com, and sirius xm. this is bloomberg. ♪

emily: amazon is cracking down on so-called incentivized reviews. when customers get free or discounted goods in exchange for writing product reviews. amazon previously allowed these kinds of critiques as long as the author disclosed the discount. the problem was, this made it hard for sellers to introduce new products with no prior reviews.

last year amazon filed lawsuits against 1000 unidentified people offering to write fate -- fake product reviews in exchange for payment. amazon is said to be in talks with european union regulators to settle an antitrust probe. the investigation deals with how amazon's e-book contracts with publishers may be squeezing out rival distributors. separately, amazon is already the target of an e.u. investigation into its tax arrangements with luxembourg. that does it for this edition of "bloomberg west." tomorrow we will bring you more of our conversation with venture capitalist chris sacca including his thoughts on uber. don't miss our special coverage of the vice presidential debate andeen senator tim kaine governor mike pence. yorkin a: 30 p.m. in new

-- 8:30 p.m. in new york or on television. this is bloomberg. ♪

the s&p 500ll as heads into a period known for turbulence and potential records. >> the ecb has been blinding down bond buying. the current program may continue beyond march. anchor: google ramps up the pressure on it apple with a headset that goes head-to-head with apple.