google or alibaba? channing smith ways in, he's portfolio manager at capital adviso advisors. i know you favor google. tell us why, make the case. >> well, i think one of the things you have to look at and kind of looking at germany and brazil today, i kind of like in google to germany. they are very controlled and play possession type of game. if you look at google search, they have 70% of the desktop market and 70% of the mobile market. this is bread and butter but they also are able to set up opportunities in other areas. if you look at mobile advertising, this is an $8 billion business growing. we think it can double or triple. they have youtube, which is an enormous franchise, if you look at views, page views over the last year, it's up 50%. we think that this could be, you know, a $5 billion business this year, probably triple. they have a number of google payments, they have all types of different businesses that can grow revenues and earnings going forward. >> there is bound to be tremendous exc

then google is putting them back. >> the other part of it is that many people feel google is kind ofpreting this deliberately to mess it up so that they are removing these things so people will turn against it so the law will change. i don't entirely think that's the case. i think it's that google is trying to feel its way around. the original case was about a newspaper article. they are trying to see what would happen. the thing that worries me is its find that the bbc and the guardian can kick up noise but what if an individual website has its content removed? able to going to be successfully campaigned to put that back in? >> google has worked with governments in the past like china to remove content. they have said this page does not contain all the results. are they could do something like that in europe? >> that was one of the good things that they always did when content was being removed. they had this tradition of putting a message at the bottom saying that some of these things have been removed. case isy have done this they still have that little message but they're putting

they are leaving the google wearable project to join amazon.hat does this mean, and what insight does this give in to amazon's future product development? redstone has written about the secretive lab 126. so, brad, why is he going to amazon? what is amazon doing in wearables? >> amazon wants to compete everywhere its customers are. the fact that jeff a's has spun up a wearables project at amazon is not surprising. it has been pursuing image recognition for a long time. it bought a company called snap tale in 2009. you can scan barcodes and recognize the world. that makes more sense if it is mounted on your face or your wrist than it does on a phone. i expect them to be there at some point. >> the firefly thing -- i think that is the most significant phone announcement. they changed their iphone app, using a similar technology to firefly, amazon. essentially, if you take a picture of an object, you can see these images as it tries to recognize what you are using, and catalogs that, and figures out how you can buy it on amazon. that is a really i

former google executive.iaomi may be huge in china but the company has global ambitions with plans to enter 10 new markets this year alone. we will look at whether xiaomi has what it takes to go abroad and possible entry into the united states. ♪ >> welcome back to a special edition of "bloomberg west: xiaomi rising." we are taking an inside look at the chinese company that launched just four years ago but is now grabbing a bigger share in china than apple. here is a look at their rise from scrappy start up to smartphone technology power player. by the numbers. xiaomi may be a new kid on the block, but the company is no longer little. lei jun helped to found the company in april 2010. four months later, they launched their first official android-based firmware called miui. in 2011, they took on the smart phone with the mi-one. every year they have introduced new products with great fanfare, so how did xiaomi rise so far so fast? first there is the price. at $270, the flagship mi3 costs less than half the chea

ford ceo alan mulally joining google's there's. he was appointed july 9 and will serve on the google audit committee. the former auto executive engineered a turnaround at the auto maker by globalizing models, cutting costs, boosting technology. it is unclear if he will play drivinge in the self car program. yahoo! will return cash to shareholders when it sells stake in alibaba. they will use at least half of any proceeds from the sale to fund the project. yahoo! reported quarterly earnings showing the company still struggling to deliver growth while contending with properly or -- popular rivals. they will sell 148 million shares down from the originally planned 208 million. now to the lead story of the day, apple and ibm burying their past rivalry. they will develop apps for the apple iphone and ipad tailored to work with ibm data analytics and cloud services. ibm will sell apple products directly to business clients and apple in turn offers apps support. this will help them expand into the enterprise of market -- enterprise market

cannot stop talking -- >> reporter: welcome to google's world cup war room. fans all over the world use google to search for information during the world cup. so far google says there have been 1.5 billion searches. >> in 2010 there was more interest in the world cup, super bowl and more. other big sporting events generally are in the hundreds of millions. >> reporter: a group of googlers meet in this office every day during the world cup to mine the searches for information. data analysts first identified the most popular topics and shared on social media and with broadcasters like espn. >> google is part of this conversation on the world cup not just for the first time but a new way. >> reporter: for example, as colombia made it into the quart finals, james rodriguez became the most searched for player on the planet, so the google team produced this info graphic to showcase that trend. financial analysts who cover google say that the search giant is taking on twitter with the project. twitter breaks down millions of tweets for trends and information that ca

google glass. or the driverless cars. is google looking to develop products off of this?y using to market it in some way or -- is it just supposed to be some sort of a data base? >> well, it is data initially and i wanted to point out, we are looking at this contact lens and this is google as part of this project, they're developing wearable devices to collect information, say heart rates, heart rhythms, oxygen levels and this smart contact lens will likely be worn by participants to monitor glucose levels so the potential for the sale of some of these products down the road and even -- i don't want to say google is getting into the drug business but all of these technology companies know that health information and biomedical information and research are the growth areas of the future. not, you know, mobile and online advertising. but they've got to figure out a way to grow their business faster than the economy and health care and medicine. that's where it's at. jenna: so 175 anonymous healthy individuals over the course of the summer will enter into this. >> initially

apple and google in your car. >> apple and google are not happy on your phone.nt to take over your car also. byas and android, simply plugging your phone into your vehicle -- ios and android. for the most part, they are the same. your car has a display that becomes a mirror for many of the apps on your phone, things like text messaging and music services. they will now come from this, not from hard drive under the dash. everynow, almost automaker in the world has announced one of these programs, and for apple and google, moving into the car is just another way to get you to use more of their services. a do not want to lose you just because you happen to be sitting behind the steering wheel. others are happy because for more than a decade, they have been tried -- trying to cram more and more tech into their vehicles, and the feedback has been mixed. the confusion learning a new interface will soon be a thing of the past. you can also get new technology without getting an entirely new vehicle. new features will just be the matter of a download, not a trip to your

google earned $6.08 shares still climbed. let's bring in morgan brennan to talk more about google. morgan, you've run through the numbers. what's the key take away? >> i think the key take away with google, we can talk about google glass, driverless cars but at the end of the day its biggest business is online advertising and that's why we saw revenues jump 22% because of strong ad demand and the biggest, most interesting thing about the report, this is the first time google has broken down it's ad data to differentiate between youtube and google and versus network partners like aol. this shows that google's sights have been performing relatively better with advertisers versus those networks, so the key take away here, google's advertising platform has been doing better than perhaps earlier reports had suggested. >> morgan, stay right there. we'll move on to ibm, which, stay with me, reported higher than expected kwaurquarterly re as it expects to big data and cloud computing. total revenue fell 2% to $24.04 billion in the second quarter. it's a long streak of declining revenue. ne

and google was able to make a run for its past top. and the presumption is that facebook is going to follow suit. >> kyle? >> you look at the chart, it's a good-looking up. google rallied today. facebook worked its way up very simil similarly. and you would much rather bet that the momentum is going to continue. facebook up 150% in the last year. you would rather play for a new high than a retracement back to the line in this environment. >> and we have to look for a significant turn in trend to get exceptionally bearish in this and a lot of names. and we're looking for a turning point. and i don't think it's here now. >> i wouldn't buy facebook shares here. but as a trader and someone that likes to look at options, it was in the money called butterfly. you could have bought the august 65, 72.5, 80 call butterfly. i breaks even at 67.25. max gain -- that's the prior high for march. a one-day move of about 8%. i have this wide profitability range, a 15% between now and august expiration. and my max risk, 225. >> this is a thoughtful tra

google was able to make a run for the past top.mption is that facebook is going to follow suit. as google, we say so too does facebook play alongside. >> wow. >> you look at the chart, it's a good looking chart, the way google rallied, up on the highs, 4.25%. facebook worked up very similar. you saw the correlations there. if you're a trader, look at the way we shrugged off the news yesterday, you would much rather bet the momentum is going to continue, that the guys will holdivei uptrends they have been in for over a year, and facebook up 150% the last years ago and you'd rather play for a new high with an event coming up than a retracement back to the trend line in the market environment. >> i think that's true. one of things to look for is a significant turn in trend to get exceptionally bearish. this and a lot of names. whatever skepticism we may have, and we have plenty of it over here, i think one thing we're looking for is a turning point and i don't think it's here. >> i wouldn't buy facebook shares, but those with implied

google has gone to cuba.y traveled to havana over the weekend for a push for a free and open internet. he blogged about his trip calling the internet of cuba trapped in the 1990 plus. turning now to facebook. they conducted a social psychology experiment. they altered and operate them on 700,000 of its accounts to determine whether they could alter their emotional state by omitting positive or negative posts in each newsfeed. what about the legal and ethical issues of this study? a business attorney is here with us. how does this strike you? google is running experiments at any one time. is this different? >> there is substantive comparative advertising. how can we manipulate users and data to get what we need. what is distasteful is the covert nature of it. it seems like an experiment that is on such a grand scale and it was not disclosed. it does not smell good or taste good but there is no real overt legal problems. the terms of use allow for them. >> the notion that facebook is boasting of its ability to

google would support? some kind of third party certification process that gives consumers the comfort that standards are in place? >> i think we would support self-regulation to set guidelines. from the actual technical standards this is something we innovate on every day. we have to be careful not to get too prescriptive to where we are living up to a rule and not doing with a we need to. >> that's why i'm talking about a private sector alternative. i want to make sure it is cooperative, not somebody who is set up in business and is hostile to some of the actors ps if the room. you need a cooperative, flexible, fast moving. these standards have to change, what, daily? >> yes. >> literally, what are we talking about in terms of the level of flexibility we need to have a hope -- and all we can do is minimize this, right? probably? the criminal will be one step ahead every time. you have to change the standards on an ongoing basis. >> correct. we need to evolve and be as nimble as possible to make sure we ar

if google hires the hackers, will it make a difference? >> remember the heartily bug, that was bandied about in the press, a serious vulnerably. one of the people on the research google team found and exposed that. what google is doing is they are hiring the particulars of information security. >> will it work? >> it will help to reduce - discover what we call vulnerabilities faster than the bad guys. if they do that, it will help. >> great to see. we'll talk again. >> thank you. appreciate the programme. >> we appreciate the comments. >> the picture of the day is from california, where the drought is turning the greenest part of the state brown. a woman walking in san francisco through a park. we'll see you back here tomorrow night. "america tonight" is next with julie chen. @ america mobile app, available for your apple and android mobile device. download it now >> on "america tonight" desperate families sending their children to another country in hopes of saving them. it's not a new story. we're on an exodus from another time go i kept

what punishment could google face? could be quite substantially the action brought under the federal wiretap act was a class action lawsuit which means that many people have been brought together to bring this claim. the supreme court has left in place the legal basis for the claim, which means google could be looking at very substantial monetary fines. it is unlikely they will go to trial in a case like this. the facts are not favorable for them. it would be easy for the plaintiffs to show that the wiretapping activity that was alleged had, in fact, occurred, and there was a legal basis in place, so they would most certainly prevail in trial. so you will likely see a settlement to the parties will sit down and try to figure out what a reasonable amount is to dispose of the claims pending against the company. >> when you look at all the acquisitions google has done over the last six months, acquiring satellites that can send signals, find people, do those kinds of things, drones him a military robots, home sensors, dro

i mean google has an extremely cozy relationship and is almost practically can joined with the n.s.a. and u.s. government there is almost no difference between when we hand over data to google compared to when we handed over to the us government google publicly propose using your computer microphones in two thousand and six and they also hand over data for ninety four percent of u.s. law requests according to their own records i just talked about the facebook cop and his introduction do you think it's strange that facebook is now pain policies officers to help patrol the city ends on profiles mark zuckerberg clearly getting a little bit more paranoid about his own privacy and protection you know as he grows older. and he recently bought the five addison houses around him and so i think that you know this is just going along similar lines he wants to you know curry favor with and essentially buy out the police force of us a relatively small city menlo park and he's probably seen what apple's did in the success they have had of essentially controlling the city that they're headquartered

google taking heat ar a report from the bbc said google removed a story about stan o'neil from europeanrches. the latest example of google's new right to be forgotten law in action, and has some people wondering how google to implement the law in the future. right out in we bring in bbc economics professor robert pesten, the one who wrote the story back in 2007. how did you find this out? mr. pesten? >> well, google e-mailed us yesterday morning, saying that it was no longer going to be possible, they said, for people in europe to find this blog that awrote in 2007 about merle link's lolin lynchal losses and the exit. they said they had a request for the article to be removed from european searches and that was happening. i was rather shocked about this. we don't. one of the interesting things about this law is that the anonymity of those requesting articles to be removed is sacrosanct and google is not allowed to tell us who made the request. now, there's only one person named in the article. that's stan o'neil, but there are lots of comments underneath, and what we understand is that

bus blockades but i still think that people in general see google like to do a lot of other silicon valley companies as somehow being more ethical and more focused on the public good then that what we perceive is the general corporatocracy or you know sort of the all the guards who rule this country and even though it's been proven time and time again that they don't care about our privacy. i mean google has an extremely cozy relationship and is almost practically can joined with the n.s.a. and u.s. government there is almost no difference between when we hand over data to google compared to when we handed over to the us government google publicly propose using your computer microphones in two thousand and six and they also hand over data for ninety four percent of u.s. law requests according to their own records i just talked about the facebook cop and his introduction do you think it strange that facebook is now paying policy sophos or is to help patrol the city and spy on profiles mark zuckerberg clearly getting a little bit more paranoid about his own privacy and protection you

google is hoping to get the jump on apple offering two new smart watches through the google play storeamsung gear live runs on android wear. that's google's new operating system for wearables. the watch is voice activated. you can say okay google to send a message. the new lg g-watch is $229. it's also powered by android wear. similar to samsung's device, the new watch responds to spoken questions so how many calories are in that ap snl what's the score of that baseball game? the devices, they share many features and functions, carl. both will ship this week. to make them both work, you need a smartphone running android 4.3 or higher. there are, though, some important differences here. rob enderly of the enderly group says samsung's watch is a better screen, more sensors. lg's watch, however, he says longer battery life. inside both you find qualcomm processors and technology of arm holdings and spoke with the director of mobile directing for arm and says, yes, optimistic about the market for wearables. consumers, though, have to feel like they'll're fun, fashionable. he says otherwise

how bad a situation is this for google? serious decision for google.reme court left in place that they violated the wiretap act. street view was supposed to be alsog pictures of houses capturing wi-fi communications and when people learned about that they charged they were violating federal wiretap law. >> it sounds like they were collecting eight usernames, images, documents, all unencrypted. >> they would have cars patrolling the streets not only in the u.s. but the world. they were taking pictures of everything around them. they were also secretly gathering wi-fi hotspots, not just locations but the actual ip addresses of some of the devices. they want to know what pewter you were using, your home router ip address was and where it was physically located. even to the point they wanted to know and were able to determine usernames of the actual devices running them. courts on both sides of the pond have declared this act to be illegal. >> they said it was a mistake. did they say it was an accident? >> they did not. this was a very planful thing of the

apple and google in the car. google aren't happy just living in your phone.they want to take over your car, too. both companies have announced programs to integrate their mobile os into car dashboards simply by plugging your phone into your vehicle. apple's version is called car play while googles is called android auto. for the most part, they are the same. once you connect your phone to your car, your cars -- display becomes a mirror for many of the apps on your phone. things like navigation, phone calls come in text messaging and music services will now come from this, and some hard drive under the dash. right now, almost every automaker in the world has announced compatibility. most will support phones. for apple and google, moving into the car is just another way to get you to use more of their services. they don't want to lose you because you happen to be sitting wheel.hind a steering auto makers are happy because they've been trying to cram more and more tech into their vehicles and the results have been mixed. and frustration of learning and automaker

>> 80% of the smartphones shipped last year had google os.akes money on hardware, who cares if google has software share. the acquisition of songza is good indication they stream this up. whether you have add sported or pay monthly subscription fee to it, you have 80% of people on board with you and easily plug the audio service. that is natural progression. doesn't happen overnight. people need to adopt it and continuous renewals. this is good idea for google. this is the business you're trying to build. david: you mentioned off billion in cash. they have operating cash flow of $18 billion a year. that is a huge amount. what do they do with all the money spied buying a thing like the streaming music service they just bought? >> they have really ambitious things out there. one of the things i find most interesting, contact lens that diabetics can wear to monitor blood sugar level. it is testing phase and not tested out to scale. wearables like google glass. that wacky thing you wear on your face. wearables can be much more especially with the

it's happening they're performing similar types of experiments hundreds of times each week as our google star anybody else in this space weather search engine social networks they're always tweaking the results with an attempt to try to drive repeat users now alex the us supreme court ruled that the broadcast t.v. d.v.r. service area is basically a legal an area has seized operation as a result so is this decision controversial and will it have a chilling effect on innovation. it's an interesting decision because you're really talking about whether or not there you have the right to provide something publicly and yet license for it privately the us has always held out that broadcast television had to be provided free in exchange for providing the airwaves to broadcasters that was kind of the deal but if you're going to go out and you're going to use this spectrum which is highly valuable which the u.s. government could charge any number for it's going to provide broadcast television you should provide it for free so they can reach everybody and if you provide valuable services like news

here is a conversation that led to google glasses. >> you know, it if anybody can make google glass fashionablef. i mean, come on. they look pretty good. >> well, yeah. it does not sound like she is sure exactly on the all purpose wear. there is a lot of white water rafting here, and i don't know that google glass works for that so far. it is interesting that fashion accessories are here and technology is present. beyond google glass, watches can be found. we had a conversation with david kenney of the weather company who is sporting some samsung smart watch here, paul jacobs from qualcomm. qualcomm has made a big push into smart watches. yesterday, we talked about how tim cook seemed a little offended that a bloomberg news reporter was asking questions holding a samsung device. i don't know if tim cook is keeping an eye on the smart watches that people are sporting, but i think they are smart, innovative people who want to show off some of their gear, plus they know the cameras are around and they may get some pictures, too. >> i'm not quite sure if they would look as good on anyone else as th

google will probably meet it. the whisper number has been going up gee moat trickly last couple days, $1.20 last couple days. google will impress but whisper number is quite high. liz: ibm numbers are coming out of the as we're having adam shapiro parse them. the stock is moving higher. it closed at $192. it is running 197. hank, i'm sure you're looking at this seeing exactly what happened. we're not quite ready. we don't want to get the numbers wrong. it appears, for once, ibm has good response in the after-market session with what is happening here, hank? >> i certainly hope so, i don't think it will take much because as you pointed out for the last couple years they have reported quarter after quarter -- liz: left's finds out. adam shapiro has numbers. >> yeah, beat on both lines, liz. earnings per share $4.32. the street expecting $4.29. here is the big one. revenue 12 -- 24.1 billion. street was expecting 23.1 billion. cloud up 50 years -- 50% year-to-date. we'll go through this. get you more. david: that doe

wear google glad, use smartphones.bably won't sit down an a desktop ever and use an application like an s.a.p. or an oracle. they'll have a whole different way of working. >> i'm wiring this. you should be able to see john and ray from my google glass using cloud optic. to me this seems like something refs or police officers should use? sort of like a dashboard cam. if you're going to use it in a sports thing, why not have the it for questionable calls? >> we're working on it. what you're viewers are seeing is the ability for the two of us to inherit our points of view by looking in the same direction. imagine what that does for first responders, police and fire, helping fire, know, control an area, and, by the way, we can inherit the point of view not just of another unit of google glad you're wearing but a drone, a low orbital satellite, phones. anything, you name it. >> you have a question? >> i do, jane. for ray lane, we've seen big changes, big moves in the enterprise space this week. the latest these microsoft cu

cannd google glass, watches be found.conversation with david kenney of the weather company who is sporting some samsung smart watch deer, paul jacobs from qualcomm. qualcomm has made a big push into smart watches. yesterday, we talked about how tim cook seemed a little offended that a bloomberg news reporter was asking questions holding a samsung device. i don't know if tim cook is keeping an ion the smart watches that people are sporting, but i think there are smart, innovative people who want to show off some of their gear, plus they know the cameras are around and they may get some pictures, too. >> i'm not quite sure if they would look as good on anyone else as they do on her. on the subject of deals, has anything happened? what is the biggest news? disney when iger of we asked today said, you tell me what's going on. i think there always is a number of discussions that pop up in the press up rounding -- surrounding an event like this. not to say there is nothing happening. we find ourselves right smack in the middle

you mentioned google and alan mulally.e got some results today from the company. >> we got earnings results today. this is one of those great times you can really distinguish between what is happening with the stock and what is happening with the business. there are a lot of machinations. >> machinations. >> machinations, indeed. marissa mayer changed the deal, convinced alibaba to change the deal. she would only be required to sell half the stake in ali baba. that means they will continue to receive a benefit from owning their alibaba share. and yet, they will still be able to return a big chunk of change, and investors are looking for that boost, so they are getting a little bit of their cake and -- >> why would they have to sell shares in alibaba to give the money back to shareholders? couldn't they use that as collateral and take out a deck contract with their investors and pay them back that way? >> i talked to the chief financial officer of yahoo! many times about this. 10 goldman. dman, and ken said they looked at e

. >> google glass. >> google what? >> google glass. >> and that's what this is all about? >> yes. >> yes, it seems even in this day and age, you can still be treated differently just because of how you look wearing a $1,500 face computer. sadly glass-o-phones like tech author larry rosen are all too comfortable to openly discriminate. >> i don't think we're seeing discrimination against people for wearing google glass. >> i bet you don't think they should get married either? >> i'm actually very pro technology, but you don't know if they're videotaping you or taking pictures of you. that's a level of privacy that we're finding people don't want violated. >> what? those nerds can videotape me? >> it's basically a cell phone on your face. you can make calls, get e-mail, surf the internet. >> and, of course, take pictures. did you just take a picture of me? >> yes. >> are you recording me? >> of course i am. >> stop recording me. >> this is our point of view. >> do you see how that can be considered invasive? >> i can see that, but you have cameras pointed at me. >> except ou