emily: you spent a long time at google. google is blocked in china, apps are blocked in china.s there a way forward for google in china? hugo: i don't know. i think it is definitely a tricky issue. i do believe that it may not be the end of it. i personally don't think that it is the end of the road for google in china. purely thinking from the point of view of how useful google is and the fact that people in china who are at universities, study abroad, they depend heavily on google, even despite the fact that it is blocked. that i just think, at the end of the day, someone is going to figure out a way to solve whatever issues exist to bring all of this innovation, present and future, to the people in china. emily: how satisfied are you with the pace of innovation at android? hugo: i am quite happy with the pace of innovation, i think especially because i understand how hard it is to make progress. when you are literally supporting hundreds of oem's and partners around the world. in many ways, i think android is entering a new phase by expressing itself through so many the diff

emily: do you think google would close android? hugo: google would never do that.here is absolutely nothing that would convince larry to do such a thing. emily: larry handed over a lot of control. what is your relationship? hugo: that was an amazing decision. he is capable, the most well-rounded executive at google. he is a great product guy. he is a great business guy. it frees up time for larry to think about what should google be 10 years from now, how do we think about artificial intelligence, how does it affect design for future product? it is hard to do both of those things at the same time. emily: you still have a relationship now that you are at xiaomi, you collaborate? hugo: we do. we are an android partner, first and foremost. we try to be in front of the pack when it comes to upgrading the operating system and using all the innovations coming from google. we spend time together every few months or so when i come and visit. emily: would xiaomi build its own operating system? hugo: we wouldn't for smartphones or tvs, or these products. simply because it do

google has a set of data, its own.elieve our data and what we will have, the authenticated record, the digital-mobile record, is slightly different, and we are really excited to serve our market. cory: that was bob lord. coming up, tesla's first model x will roll out the factory doors tonight. worth the wait? and amazon moves into the gig economy, and on demand postal service. ♪ cory: time now for the daily byte, one number that tells us a whole lot. 40%, as in the u.s. postal service handled 40% of amazon's shipping volume. that is important because a big chunk of business could be threatened by amazon's new flex project, unveiled today. flex is an ube servicer-like, -- and uber like service. $18-$20 a pop, only available in seattle right now although they expect to expand. they could lower amazon's overall shipping costs but will pose a competitive threat to fedex, ups, and the u.s. postal service. now to tesla. the company will ship their chick car, the suv crossover model x. elon musk unveiled the car in 2012 with

>> google is firing back with two new phones. i'm cory johnson, in for emily chang, and this is bloomberg west. verizon and aol creating "go 90," but can they really compete with fine and snapchat? a car company is counting on a new model to help its slumping sales. and amazon takes a page out of uber's playbook. they are providing new services. now to our lead -- google trying to grab the spotlight back from apple. they unveiled two new smartphones to go head-to-head with the iphone, the nexus which uses the latest version of android. "marshmallow." it has all the bells and whistles. we are joined by brad stone. what did you see? brad: as you know, google supports thousands of different devices for phones, tablets, laptop, but today was about the flagship. front and center were the two nexus phones. both run the latest software. they have a fingerprint sensor on the back. these are next as devices, so google does not sell them via wireless carriers. a large one start at $499. they are expensive and the question is who are these

google, bill gurley of benchmark capital talk to me about what he's these is the biggest threat to google'srch business. bill: you start your searches with amazon with prime check. the second thing you do if that doesn't work is unchecked crime. then if that doesn't work you go to google. this is a reversal. google has become the starting point to the search of last resort. that is powerful. amazon threatens a much broader segment of google's search traffic which is e-commerce. resort,earch of last what does that mean for google? isl: what i see happening two things. he has this thing called google express which i view as a chaotic response to the problem, which is ok, we're going to make it possible to close the loop on a google transaction but it is not set up in a logistically optimal way. i have a hard time is it anywayt optimize at a level that makes economic sense. emily: do you think google is serious? t?at about instant car covering the last mile, target is trying in minneapolis. does it have that locks down? bill: star a couple of questions about that situation that i don't know. o

so google -- sorry -- well, google and facebook. google can parse through and categorize youtube videos and tell you what all youtube videos have somebody with orange pants and raising their hands. facebook can tell you if somebody's depressed before they're clinically diagnosable with depression. and so when you think about these things from a law enforcement or intelligence perspective, they're very useful tools. so at what point will, at what point will that be purchased or requested or asked for or compelled? that's sort of a prophylactic question that i have generally in my line of thinking about social media. >> david, we're positive google would never broadcast these camera feeds, but google, unlike facebook, is subject to a privacy protection from europe, and that's the right to be forgotten. i won't hide the ball on this. i just debated the european privacy commissioner and believe that this represents the biggest clash between american notions of free speech and european notions of privacy in the digital age. why don't you

chris: if google were to buy twitter, it would instantly improve the stuff google has.his board, there is no one that wants to be independent forever. nobody owns 50% of the stock or somebody who could block a deal like that. emily: you think google would realistically buy twitter? chris: i think google would love to buy twitter. i think they never got social personal identity, real time, or anything, they haven't nailed that. that said, zuck would not let twitter go to google without putting in a bid. there is just no way. emily: you think zuck would bid for twitter? chris: zuck looks at twitter and sees so much potential in it. people i know who are close to him -- but his perception that twitter is not doing everything they could has not changed. he would love the opportunity to own it and to improve some of the things. you have satya up at microsoft who has watched it, used it. back when we did the search monetization deals when twitter first started selling some of its search data to partners. it was satya who came down, when microsoft revisited it was across from

the google one is very smart.s the ability to, you know, use aerodynamics to travel for maybe tens, maybe even hundreds of miles. it is quite difficult to hover in place and dangle a package down on a string and then land equally vertically. i love the fact that google and amazon are doing this with different approaches. you cannot ask for two better companies to be innovating in this space. emily: does amazon or google win? is there a place for both of them? chris: totally a place for both of them. emily: what about facebook? facebook buying drone companies as well. a different mission to connect the world. is it realistic? chris: absolutely. google has also bought a drone company to do the wifi in connecting the developing world. there you are competing with satellites on one level and balloons. google has mentored an internet balloon project called loon. emily: what's a better way? balloons or drones? chris: the great thing about balloons is they stay up for weeks on end. their natural instinct is to float. a d

government take another look at google.oining me now, is bloomberg's team leader for enforcement coverage. what do you make of they commissioners comments? does this new investigation signal a change in attitude? that fcc issurprise taking another look at google two years after previous investigation. they are focusing on the android whether google is restricting or excluding other services. to be fair, this is very early stages. they have spoken with a few tech companies. we don't have a clear sense of how much research and energy they will put into this. whether itlear yet will have legs. emily: how much do you think europe's investigation is swaying the fcc? >> europe is way out in front. they have been sending questionnaires to companies. they are starting to look and study those responses. one thought is that the fcc did not want to be out of the loop on this and felt it needed to have its own way of looking at what is going on with google. that is really just a theory. moren't have a lot information at this stage abou

emily: dunning for google again -- gunning for google again? ♪ emily: i'm emily chang and this is "bloomberg west." coming up, live as always for the latest iphone. will apple be able to bring up another sales record? plus blackberry confirms it's making an android phone. hen tells me the work for the company is over. plus, president obama and xi present a united front on climate change. the big talks ahead in paris. first to our lead. for the second time in two years, google is in the u.s. government's crosshairs. the federal trade commission is looking into whether google restricted competitor's access to android. just last month, i asked the ftc commissioner whether the agency will be taking another look at the company followed the search engine investigation. take a listen as to what she had to say. i was not part of that decision-making process. i think it would be highly unusual for the commission to go back and reopened that case. emily: to be clear, i was asking about a different investigation, but i said -- should the u.s. government t

emily: dunning for google again -- gunning for google again?: i'm emily chang and this is "bloomberg west." coming up, live as always for the latest iphone. will apple be able to bring up another sales record? plus blackberry confirms it's making an android phone. hen tells me the work for the company is over. plus, president obama and

both the internet industry, the googles, the yahoo! and microsofts that it wanted to control, continue to retain their control. but you had the traditional media world, the studios and labels and others, wanting to retain control of distribution. they were attacking us, accusing us of not doing the right things around copyrights, when, in reality, we were building more tools than any of our competitors, and more policies from day one than anyone else to deal with all these problems and eventually create solutions for them where they could monetize them. the music industry earns billions of dollars off of youtube on an annual basis now. but with all these people looking at us, and us just struggling to keep things up and running, we had no other choice, really, at the end of the day, to be acquired by someone. for us, we were lucky enough to be acquired by google, who, in my mind, kind of took a chance on us. and that, really, youtube would probably not be here today or what it is today without their support. so i am really thankful we

coming up google with spherical cameras. plus virtual reality takes us into the heart of combat zones around the globe. and the new droid from the upcoming "star wars" film. first a look at the markets. wall street seeing a sharp sell off today adding to significant decline for the week of around 3% across the board. one of the week's biggest losers is netflix. i want to get straight to matt miller in new york. it is like a bad movie. first it seems like things are coming back around and then it all goes back down again. matt: exactly. we lost 500 points on monday and it looked like we were going to gain it back by the middle of wednesday. however, that turned around and now we're down for the week about 560, 550 points. so pretty rough on the s&p as well. a drop of 3.4% for the week. and netflix has just gotten absolutely crushed. i mean, it's not fair to say the stock has been completely destroyed since year to date it's still up more than double. but it is in, officially in bear market territory, since it's come down from

emily: google is working on project loon and google fiber.t do you think of google's approach to connecting the world? mark: well, the thing is connecting everyone is going to be something that no single company can do by themselves. so i am really glad that they and a lot of other companies are working on this. internet.org is a partnership between a number of different technology companies and nonprofits and governments. there are folks who are doing things that they are contributing to internet.org. there are companies that are doing things that are separate. that is going to be necessary, right? i mean, there is a lot of technology that is going to need to be developed in order to tackle all three of those major barriers that i talked about. you know, technical, making it so that everyone has a network near them. affordability, so that way the network is efficient. and social, making it so that people have the content that they need in order to want to get online and consume all this. so i am very positive on it. emily: have you had any t

i got to lay this at the feet of google because google, of all companies in silicon valley, has knownhat the user experience and speed is absolutely key. that was their mantra with the home page and with search. with the ad product, they've let that go to the wayside. i mean, the worst experience that you have on any mobile device is trying to load web pages. it works on the web. some pages never load at all. >> source spoint one of them. >> fight ads. >> tools that publishers can run to burst through an ad blocker. page fair is one of them. source point is another. the other option is that we could begin to first party ad surf. rather than using google's technology, we can literally hard code the ad. we can do that with an image. this will be something that we are constantly evolve and fighting now. >> if you bust the ad blockers, you are doing what usa is doing with a show. they are making the user experience worse in order to shove ads down people's throats. >> that's a question of ad load. i'm not saying -- there needs to be a balance there as well, and these ads may be less intru

we have heard from google.hey didn't seem interested in going very vertical on this thing. >> yeah. i'm not sure what to make of this announcement. it would be different to me if tesla had brought john in. he's a guy i associate with executing very well and getting things done. it's not exactly clear what they will execute on. great for him to be in the stable. i wonder how long he lasts there and does it depend on how quickly they are able to pull the trigger? >> i thought phil nailed it at the end. are they going to license technology and build these cars that will run the neighborhood? are the bubble cars going to grow into real cars on the highways? what does that mean? we're talking decade long full-time tram time frames here. we're looking so far out and speculative at this point that it's almost not worthying about. >> i'm thinking about the goldman, $800 target. there is some big options in those calls right? >> absolutely. and full credit to google for doing what so many american corporations are afrai