. "press: here" is sponsored in part by barricuda networks. city national bank providing loans and lines of credit to help northern california businesses grow. >> george zimmer likes the look of his new start up. we'll start down with the minutes wearhouse founder to talk business. and detroit and the car industry. our reporters erers on "press: here." good morning everyone.

sartorial is a word i've always wanted to use on air. things are about to get sartorial around here. george zimmer is the founder of men's wearhouse. no doubt you know him best from his tv commercials in which he guarantees you will like the way you look. men's wearhouse grew into a multibillion dollar community. and then the board dismissed him from his own company. and then he created his own start-up. z tailors sends tailors to your house or office. george zimmer is disrupting the cutting edge of clothing. after you are properly tailors, we assume you will once again like the way you look. you can't tell people they'll like the way they look because

that's the other company's catch phrase. you've got a new catch phrase? >> everybody's asked me about that one. and we are working on one, but it's not trademarked yet. >> so you can't tell us. >> let me say it this way. when you're working with hundreds or thousands of tailors, what they really want to know is is there job security? and i tell them zimmer's got your back. >> like that very much. >> let's spend a money on the awkward thing. what was it like to build a business like that and then get cut off that way? >> well of course it was shocking and discouraging and disappointing. but really what i've learned since it happened -- it's been two years now -- is it was a great learning opportunity for my family. when i came home that evening without a job, i saw everybody

afraid to say anything at dinner. and i said hey, look, it really doesn't matter when you get knocked down. what matters is how you get back up. and at the time i didn't know how i would get back up. but i knew i would be able to figure it out. >> is this business idea your back up getting back up? >> this is getting back up. >> how did you come up with it? >> well i've had a long experience in my previous career with tailors. and now with online apparel becoming so dominant i just really put them together in a high touch, high-tech way. >> i wonder about that because i'm going to use the example of j hillburn. i discovered them and love it to death. speaking as a clothing industry in general, the internet is

making a huge inroad into that industry. >> absolutely. we are building z tailors both as a b to c and as a b to b business. because it occurred to us that almost every apparel retailer would avail themes of z tailors if we organized it correctly. and in the few weeks that we've been publicly launching, that's exactly what our response has been. >> how many tailors have signed up? >> we've got about 600 signed up today. and we'll have a thousand by the end of the summer and 1500 by tend of the the end of the year. >> how does it work? >> you go to our website which will soon become an app. it's very simple much like uber. it says what day would you like a tailor to come to your house? what type of merchandise are we

talking about, men's, women's, children's bridal? we, by the way, will be sending in our first update the picture of the tailor that is coming to your house. you then tell us what hour you would like the tailor to come. and of course your zip code. and we match it from there. >> this sounds like uber. was uber the inspiration for you? >> it is. >> this is great. it's b to b. it's b to c. we have a website. it's going to be an app. are you sure you're not 25? >> i'm positive. >> sadly. >> i had to memorize all that. >> that was really convincing. >> go ahead. you've got an app. >> this is your come back play. you're a smart businessman. how much do you worry that you're kind of guided by egoand and revenge play? >> it has absolutely nothing do

do with revenge. this has been so much fun that i don't really have time to think about revenge. for me to be building a second act at my age, i think i'm the luckiest guy in the world. >> that's great. >> what about the market for this? i assume it's not going to be as easy and cheap as ordering from the gap. >> well you know we don't really know the scope of the economics here. but that's because we don't really -- and i mean this from my previous incarnation as well. the economics are part of the story. but there's a lot more to building a business than just the economics. i've always had a great relationship with tailors. they are the underdogs in this industry. and i love working with them. >> and a start-up now versus a start-up in 1972 your brick and mortar childhood, what's different and what doesn't

change? >> well the main difference is that in the first business our first cash register was a mechanical ncr cash register if you could believe -- >> a cha-ching. >> a cha-ching. and this business now, i have hundreds of contractors or employees. i've spent millions of dollars developing systems and infra infrastructure and we over only just started generating revenues, $16 at a hem a couple of weeks ago. >> but that data comes back to you so much faster. you wouldn't have been able in 1973 to really get ideas as to what's selling in what store. now you can sit at your kitchen table with an ipad and figure out what's working. >> right. we went with our sales force as

a platform partially because of the ability of that platform to give us that type of analytics. we're very proud to be able to say to the online apparel retail world, hey, we've got sized. >> i'm going to squeak in one question. talk to me about fashion. that is this alarm -- again, speaking in general, that the young kids in their hoodies. i don't want to sound like an old man in a suit. but we're a bunch of old men and a very nice young woman in suits. it doesn't seem like tailoring and suits are the future. it seems like hoodies and jeans are the future. >> interestingly, when i was coming up my generation wore suits to go to work. and we wore jeans to go party. it seems to have reversed now.

>> right. >> so they dress up now to party. and millennials love the idea of having the convenience of somebody coming to their home or office. in five years, millennials are not going to shop any other way. >> they're party and wear through the mer -- >> thanks for being with us. up next yet another set of car companies come to silicon valley. we'll take a look when "press: here" continues.

. >> if you're trying to figure out what the next big thing is i think it's cars. all the latest developments have come from silicon valley. crash avoidance and in car entertainment. walter sullivan is one of the world's leading experts on software and cars. sullivan runs elektrobit. elektrobit is based in finland and you can find its computer code in high end cars like maserati. it just opened in silicon valley. so new they're literally still putting signs in front of the building. sullivan is the former head of microsoft's in car system called

sync the one for ford coming from microsoft. so what is exciting? what's the next thing? we've seen the robot cars from goog plle google. what's the next thing that i in a chevy or a ford or a kia am going to see? >> there's a lot of interesting things coming down the road. i think one of the interesting things we're going to see in cars is the software in them updating itself. imagine you have a car that you bought two years ago and all of a sudden now it can park itself. because that's actually -- >> but couldn't before. >> but couldn't before. when you purchased it it couldn't park it. but through software we're creating more and more value in vehicles through software. >> let me follow up with that and say if i'm the head of kia or what have you, you say, no no no, walter we put that in the new model and then they buy that one. we don't improve the old model.

>> i think that's starting to change a little bit. some of the expectations we have from our consumer devices sets that expectations. >> it does. >> we're seeing tesla doing that for example. >> tesla changes the hardware with the software updates. it changes the suspension. >> that's right. . >> it's very much like an iphone in a way. it starts to con figure and personalize with the sort of creepy things that come with that. that's a whole other conversation. does that mean that car companies are going to start having app stores and selling different individual things you can order in for your car in specific? >> app stores i'm not so sure about necessarily. but all of the things you're describing are the things that we can do as we migrate toward more software delivered

functionality. that's really the evolution that's happening in auto motive. i do think that there's a world in which you're buying an option that is simply a software upgrade to your car. and whether an app store or not, i don't know. >> i guess i'm one of these people who wants there to be self-driving cars yesterday. that's the big thing i'm hoping for because of the whole distracted driver issue. i'm getting a sense there's a lot that's going to take us to get there. >> getting to a self-driving car will really be a multistep approach. the industry will introduce the technologies that get us toward self-driving in phases. by the time we actually get to a self-driving car, it will almost seem evolutionary. it will almost seem natural. >> how much is apple going to drive this? i'm a loyal ford customer and have had your sync technology. the first time i could talk to

my car and say radio, et cetera i could talk to my iphone. and my iphone understands better than my car. apple is leading the way in running the entertainment in my car. how much is apple going to lead the way in all of this as well? >> they're a very important player. in a lot of ways that's why the car companies and elektrobit has come into silicon valley. we're very interested in learning from the ecosystem down here collaborating with the companies on the technology down here and hopefully contributing back and building technologies that are relevant for the automotive market. we see a growing investment in automotive. >> you know that apple is not going to collaborate with you ever. this is not a collaborative company. >> i don't know. i have some friends. >> stay positive. >> you are more powerful than we thought. so when you drive through a standard automotives part of town with the tire stores and

the muffler shops and the mechanics, what do you think happens to them in this world when there's awareness of objects degrading and there's upgrade offers being piped in and the car companies brokering that and a mechanic who used to sort of work on hardware is being overwhelmed by the amount of software in the machine. what's going to happen to that whole back end structure? >> to a certain extent it will still exist. fundamentally a car is still a physical piece of equipment that has wear and tear. the physical components can break. those places won't necessarily be offing upgrades through software. that will for the most part come from the manufacturer. >> i think a mechanic will look at this car and think, i don't fix computers. >> yeah. well, we're building diagnostic systems and there are standards for us in the industry to enable those independent shops. >> i'm excited by the idea of my car -- i am quite sure in 2,000

miles this going is going to go wrong. before it does let me alert you to this and by the way i already e-mailed the darrell shipealership on this. >> this is coming. one of the things we work on elektrobit -- the car knows a lot about itself and it knows a lot about the environment around it. we can get that information back into back end systems not unlike sales force like george is talking about and do the an analytics. >> well those brake pads are going to go off. when are you free? there's a place here. >> exactly. >> not only that but they could tell their brake pad manufacturers we're disappointed. you know what? it looks like -- i'm going to make up. the chevy cobalts have lousy breaking and the traverse has good braking. we're seeing this data come in

realtime. >> if you thought you were getting a lot of ad messages now, there's some on your dashboard. >> what about the privacy issue? quentin mentioned the iphone and data and knowing more about you. how are you thinking about this? do you have a public policy arm of your business? >> the car companies all do -- it really comes down to models that are set in the consumer electronics industry. we're follow through and we'll support the same thing. it will always be opt in. it will always be acknowledged by the user. data will always be the user's data unless they allow it. >> i can feel how much quentin wants to object. i saved you, walter sullivan. we'll be back in just a few.

. welcome back to "press: here." one of the things we've learned the hard way is you can never be quite sure you're in a bubble unless it pops. when you're talking about the economy, though, you can not know you're living in bauble whether that's housing or stocking or investments. so everybody does try to call it. michael michael moritz, saying there are a whole bunch of crazy little

companies that will disappear. there are a considerable number of unicorns that will become extinct. mark hopkins disagrees. he handles private wealth management for the bank of america. thanks for being with us. recently fitbit in its first couple of hours on wall streetd popped 50%. it's a $4 billion company. there's some point at which this has got to run out, right? >> logic would tell us that we've seen it before. we'll see it again. there's got to be an end to that. but you have to look at the underlying components and look back to what's happened before and look at where we're at now. so a couple of indicators that we look at when you look at where the public markets are versus the private, there is a distinction there. companies are taking long tore go public than they did in the '90s. >> they tend to be making money.

>> tend to be making money. and so you don't have as much after this get out there in order to get my funding. they're getting the funding along the way. they're going later. you could make a case perhaps that the private market is capped out or is being built up. but the public markets currently still look very very healthy. we're about halfway through the year about halfway through where we think we're going to get through the year. which is around 22.22 on the s&p. >> you can get something small, but major like tech that's detached from the rest of the market and it's a tech bubble. >> you could. >> and you see the housing prices out here. >> yeah. >> you see the money they're paying to keep people or poach people. you see the rampant job hopping. you don't think it's a little bubbly around here?

>> the bay area is unique in terms of the rest of the country, unique in two main areas. one, when you look at foreign born versus the rest of the u.s., we have much higher percentages of foreign born here. people want to come to the u.s. for stuff, because it's a great place to live. and when they come to the u.s. especially foreign born they come to the bay area. that feeds this. when you look at the area we've got a little bit of constraint from a land standpoint. not saying this can run forever. but crash or stabilize? you could go sideways. >> as a south bay homeowner, i also feel very good about apple and google building massive new campuses. those people have to live somewhere. >> what about our housing in some areas? the local cities not wanting to grow, not wanting housing. i live in oakland where we want

more housing. but nearby other cities don't. is that going to be the thing that kind of undercuts the growth that we've been experiencing? >> the pin and the bubble? >> yeah. >> it's hard to tell. the other thing you have coming online right now is millennials as the second piece. bay area is unique in terms of foreign born and millennials in terms of percentage here in the u.s. versus overall. they're just now coming online to look for homes. they've looked in the past at renting because they want that flexibility. >> this is all happening in the wake of the 2008-nine crash when the federal reserve basically made money free. zero interest rates for years. eventually that swings back. you don't think that's going to slap around this market a little bit when money actually costs something again? >> here's this thing we look at. if you're doing that rate increase in the strength -- so the consumers come back online.

they're going to sell 1 million8 million car this is career. 15 million was cash for clunk er clunkers, government assisted. we thought it was weather. we thought it was something else. as we're looking at it now, it looks as if it was essentially working through the tax increase. now you've got the consumer online. you've got new homes coming online. >> this is authentic demand right now. this is real. >> authentic demand. we don't see it as being overly heated when you take a look at where the markets are. we see very consistent growth over the coming years. >> the federal markets committee recently only not raising interest rates, kind of even becoming more dovish. do you think that made the right decision? >> we do think they made the right decision. we also think they're going to have to begin doing that here perhaps by september. moving into it. if we wait too long the markets may get a little bit antsy on

that. >> let me ask you about the unicorns, the ubers. i mean those companies, do they scare you? because what they represent a whole bunch of other companies' employers who have been able to get money from the -- if uber's business model takes a hit because of economic or because of regulation what will happen to kind of -- could there be a jobs hit in the valley and the whole bay area? >> could there be a jobs hit? the other way of looking at this is as that company grows, the real question is as we've seen from some of the other companies that have become public reentdly we saw them go public then we saw them move sideways for a while or even come down. in the pasted in '90s what we saw is out and skyrocket. what's happening essentially is it's a transfer for the funders

in those private companies. so the question becomes, have they grown too big and are they still able then to exist and grow after that? >> and they're too big to be bought a lot of them. >> in some cases, although we're sitting with the largest cash values 1.73 trillion i thinks the in coverffers right now. >> we have to stop there. we'll be back in just a men. i. n. u. t. e.

. that's our show for this week. my thanks to my guests. thank you for making us part of your sunday morning.

trujillo: hello and welcome to "comunidad del valle." i'm damian trujillo and today on our show, she developed an app for dreamers. sarahi espinoza salamanca is in our studio for your "comunidad del valle." male announcer: nbc bay area presents "comunidad del valle" with damian trujillo. damian: we begin today with a solution maybe to fight hunger in san mateo and in santa clara counties. with me on "comunidad del valle" is jessica vasquez with the second harvest food bank. welcome to the show. jessica vasquez: thank you. damian: now, you developed this way for folks to obtain food if they actually need the food, but let's talk first of all about the need because there is kind of a perception that the economy is doing well and that we're doing okay and that there isn't a need for food. we're looking at video here at the sacred heart community services, which is of course, one of the