sergei brin talked about the possibility at the code conference. >> the reason that i'm super excitedbout these prototypes in the self driving car project in general is the ability to change the world and the community around you. >> they will start testing later this summer. they will have manual control and if all goes well, a small pilot program could be launched in california in the next few years. i was joined by professor at the m.i.t. department of mechanical engineering and a member of the artificial intelligence lab. i started by asking if google can become the next big automaker. >> it is really big news. it's a transformative decision google is taking on. you can really distinguish this as more evolutionary. we are still a long way off from masculine production but the value of the software that they will create, if you can really enable these robot cars to navigate through the world safely, that could really be transformative. >> the car itself looks sort of cute. they wanted to look friendly. >> it looks like a vw bug. it does have an innocuous looking bout it. i know you

out of stanford, larry page and sergey brin started google in his our dorm room while they were phd's. to figure outnted the best way to index the web because at that point, that

according to google cofounder sergey brin, they have only two seats. go 25 miles an hour with a start and stop button only. what it doesn't have, things you're used to seeing in a car, no steering wheel, brakes, gas pedal. it has designed sensors to steer clear of accidents. google plans to build 100 or 200 prototypes. the cars have been testing without any accidents. probably helps that they have two feet of foam on the front end. in a blog post google's time highlighted potential benefits for elderly and poor. this car could help those who can't get around on their own, get back out on to the streets. right now google hasn't said whether they will make the cars themselves or supply this technology to car-makers but sergey brin saying hopes regulators see it's a safe transportation opportunity. so, jenna and jon, i have to ask you, would you get in this thing? jon? jon: i would not. >> no? jenna: that is clear. jon: i like to drive myself. if i want to be energy efficient i get on my bicycle. >> would be comfortable trying it without being in a lot of

back then, no one had heard of there a page, sergei brin, or the new company with a funny name. larryone had heard of page. google? what does that mean? it doesn't matter. as long as you build -- pay your rent on time, you can build your googly thing here. they would talk to me about how their technology could change the world. then they would go on equally excited about the fact that my house had a washer and dryer. [laughter] proclamations. we will organize the entire world wide web followed by -- which is recycling day? when i asked them how much experience they had to back this ambitious plan they would say, our combined ages almost 50. they were entering a competitive area. there were many well-funded search engines. famous at that time, although you've probably never heard of them, altavista, lycos, excite. if you aregine searching for something online and you said you needed to altavista the answer? let's excite that? you should be thankful to them for the name alone. i was working at intel at the time and i think i can say this now. i thought they were crazy. then, one d

. >> it brings us to our twitter question, sergei brin mentioned a couple of google x projects, in addition, loon, the company has in the pipeline at the conference. among these, google glass of course. contact lenses, apparently that might be able to one day monitor your glucose, incredible medical innovation and the self-driving car prototype. it brings us to squawk on the tweet. google x has eight projects it's working on. what might be some of the others they are cooking up? tweet us@squawkstreet and we'll get your responses later on in the show. it brings us to topic number two. microsoft ceo spoke here as well saying we've reached the post-post-pc era, saying he has no plans to sell bing or xbox. he did unveil that translation tool for skype. where user speaking in english could talk to a user speaking in mandarin or german, take a list listen. >> hello, diana, how are you doing? >>. [ speaking foreign language. >> hello, my friend. >> hello, my friend. >>. [ speaking foreign language ] >> is it true that you were soon moving to london? >> yes, i'm currently planning to move there som

out of stanford, larry page and sergey brin started google in his our dorm room while they were phd's. to figure outnted the best way to index the web because at that point, that was the problem that people were trying very hard to solve but were not doing a good job of. they believed they had a way of doing get that nobody else had thought of. 1998, they started initially by indexing all of stanford's pages and ended up blowing up the stanford network and getting themselves in a little bit of hot water. as him pretty quickly, started google -- and pretty quickly, started google and it has been a rocketship ever since. i want to go back to the apple example is in some respects, apple and google arguably started at the same time. thee obviously started in 1970's, but then steve jobs got fired from the company in the 10-1580's and apple went years where fortunes really declined steadily. it was not until 1997 when steve jobs returned that apple's fortunes really began to rebound. in fact, it is pretty well-known among people who pay attention in the valley when steve jobs came back, app

sergey brin intends to put the car on the street sometime this world. >>> many expect to work longer and transition to retirement by shifting from full to part-time jobs and half believe the next generation will be worse off than they are. >>> but it is good to be a ceo a study finds the average pay for chief executives topped $10 million last year. it's the fourth straight year their pay has risen. ceos now make 257 times the average worker salary. frances, back to you. >> morgan thank you very much. >>> some other parties, texas tea party, the oldest member to ever serve in the house of representatives lost his primary runoff. 91-year-old republican ralph hall, a world war ii veteran who boasts the story of bonnie and clyde lost his term. >>> firearms and booze. the city of oklahoma city has approved a gun range. that's right, all under the same roof. they have a no tolerance rule, no shooting after awe drink. >>> new york city cops will now be carrying albums for heroin overdoses. the state is providing nra-can kits to battle the recent epidemic. they say the drug will save lives

to at's take a listen little bit more of what sergei brin had to say about why he's so optimistic abouthis and why he thinks it such a big idea. >> i think some of these business questions like service operation, their partners, things like that, are things that we will sort out when it's closer to being widely deployed. think the initial test vehicles, we will just operate the service ourselves because it will be a very specialized thing a. long-term, it's not clear. we will almost certainly partner with a lot of companies, possibly uber. >> they said it was potentially one industry that could be disrupted by self driving cars. >> the legal issues will be massive when it comes to proving safety. they will have a lot to go through in washington. >> i want to talk to you about the navigational and mapping issue. research ona ton of the specific issues and problems that could arise. what challenges will google face? use very precise prior mapping. it's the large-scale caption of information about the physical world that google is leading and it's like super gps. he gives them down to cent

>> let here a little bit more about why sergei brin thinks this is such a great idea. take a listen. next -- >> as far as the service questions as to how this will be operated and whether we will operate it ourselves or with partners, we will figure that out as it is closer to being deployed. these initial test vehicles will probably be operated by ourselves because it will be a very specialized thing. but in the longer term, it's not clear. certainly partner with a lot of companies, possibly move her. >> and he did make a point saying that google had invest -- had invested in uber. is the taxi industry something that could be disrupted by these cars? >> they will have a lot to go through with improving safety and through washington before they get anywhere. >> john, you've done a ton of research on these specific problems that could arise. what challenges will google face? >> googles approach uses very precise prior mapping. it is the large-scale capture of information about the physical world that google is leading. it is like super gps. it is down to the centimeter

so i think that was a decision that was sort of personal decision based on sergei brin and his experience growing up in the soviet union. i think the ceo is much more pragmatic and i think there's going to become a decision about whether they want to go back into china. i don't think they go themselves. i think they look to partner and i think baidu can make an interesting investment target. they're the leader in china and b baidu is stuck in the middle. i think there would come a point whe . >> you say facebook, there could be a good deal as well. >> i think you're talking about webo and twitter are sort of yesterday's news when it comes to messaging. what's up is the future. who else is left? there's a japanese company called line. i think that makes sense. there's a canadian company called kick that's the number one messaging for young americans under 24. is the messaging app, is a what's app kind of the browser of the future in the whole mobile space? that's sort of the jumping off point for doing all sorts of tasks on your phone. i think google will have a play there. >> eric, thanks

getting leaked e-mails between nsa director keith alexander and google executive eric schmidt and sergey brinernment and silicon valley, e-mails dating back to 2011 shed some major light on secret meetings between silicon valley ceos and the national security agency despite what they led us to believe. what is everyone laughing at? quite a graphic. james freeman and jonathan honig are with us. this is quite serious. what do you think? >> it is chilling. over ed decades, the government going after the real enemies of this country, militant islam and jihad has been targeting americans. pretty much under the board, they have been deceitful about it. they're looking for our e-mails at reviewing google searches, not doing anything to make us safer. melissa: let me be devil's advocate. i talked on background of some of the ceos about this and they say we are working as partners to try -- it makes logical sense, the government is our customer, our partner, we are helping them track terror, they see it, they are surprised by the fact that everyone is horrified and pretending they are horrified to mak

sergey brin mentioned some of those in the pipeline at the code conference in california.e/code. congratulations on what is turning out to be an amazing conference. >> lots more today. >> you drove the car? >> yes. >> i didn't drive the car. i not drove the car. >> exactly. >> your thoughts? >> i liked it. it felt like a disney ride in a weird way but it was -- it was nice. you could just sit there and it just went and so it was sort of odd. like riding in a bus or subway or something like that. it felt a little like public transportation. >> sergei did talk about in cities when traffic is at a peak a lot is people looking for parking this removings a lot of that. how do you think this is going to play in our daily lives? >> they will build a couple hundred he said, between 100 and 200. not going to affect anyone's daily lives but interesting if it got out into the wild and they could do these things and use them as fleets of cars. you could see uber being the reservation system. that's what's interesting about it. it has the sensors not to hit people which is great. which

." >> narrator: from the beginning, google founders larry page and sergey brin had discovered that web searches were very revealing and very valuable. >> every search is in some sense an expression of intention. it's an expression of what you want to do, where you want to go, what you're looking for. and that maps very nicely with the desire of advertisers to target their messages towards people at the moment when they are intending to go buy something. >> narrator: from a simple search box, google struck gold. >> i think it's the most effective product the internet has ever seen. google's ads were so effective that all of a sudden, their problem was hiding how much money they made so that microsoft and other competitors didn't come after them. >> narrator: page and brin would make billions. but it was their 2004 launch of gmail with vastly more storage than microsoft's hotmail and yahoo mail that immediately sparked controversy for how it mined email content. >> they would scan your mail and try to figure out if there was a relevant ad they could show you alongside the mail. >> they s

. >> ok. , willem marx.uch moving and shaking, sergey brin, who has unveiled the google self-guided car -- driving car. the first top speed will be just 25 miles an hour. 200y plan to build 100 to test vehicles. by 2035, there will be close to 12 million self-driving on the road, according to one estimate, but there is still 20 of work to be done on that front. "harry potter" author j.k. rowling is one of the a-list writers paying the price for the fight between amazon and hatchet. we will also take you down one of the most expensive street in the world. you will need to bring your credit card, maybe even your american express platinum card. ."ey -- stay "in the loop we're just getting started on this wednesday. ♪ >> first. bloomberg. >> you are watching "in the loop ," live on bloomberg television and streaming on your phone, tablet, and on bloomberg.com. as we have been reporting, amazon.com is refusing to take booksn orders by published by hatchet book group. amazon has been known to rub publishers the wrong way. we are joined by robin warner, a former of the shirt turned managing di

sergei brin says google as an idea to transport passengers at the push of barton.the cars of bottle -- the cars have no gas pedal and they will test these cars sometime next year. on the ways may be general motors after investigators are investigating potential flaws in 2000 jim vehicles. among the complaints is the unexpected failure of automatic printing and headlights on gm cars. backly, pimco is getting -- trying to restore some of its lost glory. mccully.inging in paul le pimco is trying to bolster its management. >> this is a huge deal. this guy is influential as an economist. he has influence at jackson hole. oftenyellen quotes them and particularly his focus on crisis in shock. redemptions pimco has seen come upwards of 20% and some of the funds, that is crisis and they need him. >> this is hugely accepted by international shareholders at allianz. >> bill gross needs to grow his mustache back, that is the problem. >> coming up, toll brothers earnings are out -- higher prices lead a rise in profits, what does that say about new housing, next? this is "bloomb

back then, no one had heard of there a page, sergei brin, or the new company with a funny name. larryone had heard of page. google? what does that mean? it doesn't matter. as long as you build -- pay your rent on time, you can build your googly thing here. they would talk to me about how their technology could change the world. then they would go on equally excited about the fact that my house had a washer and dryer. [laughter] proclamations. we will organize the entire world wide web followed by -- which is recycling day? when i asked them how much experience they had to back this ambitious plan they would say, our combined ages almost 50. they were entering a competitive area. there were many well-funded search engines. famous at that time, although you've probably never heard of them, altavista, lycos, excite. if you aregine searching for something online and you said you needed to altavista the answer? let's excite that? you should be thankful to them for the name alone. i was working at intel at the time and i think i can say this now. i thought they were crazy. then, one d

back then no one had heard of larry page and sergey brin or the new company with the funny name. google? what? what does that mean? it doesn't really matter. as long as you guys pay the rent on time, you can build your googley thing here. >> our coverage of commencement addresses continues tonight beginning at eight eastern on c-span. >> and live now to the hyatt hotel here in washington for remarks from veterans affairs secretary erik shinseki. -- eric shinseki speaking at the national coalition for homeless veterans annual conference, expected to discuss homelessness among veterans and his plans involving care for veterans. a growing number of lawmakers calling for secretary shinseki to resign after release of the inspector general's report indicating there are systemic problems in va medical care. we expect this to get under way in just a moment. live coverage here on c-span2. [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] >> and we're awaiting a speech by va secretary eric shinseki on homelessness among veterans, we are

a couple of guys from stanford, larry page and a guy named sir j brennan -- sergey brin had a start up called google. it is indicative of the change you have of the internet. , norths ago this year part ofew over japan as the test program. people will remember that very vividly. since then north korea has tested nuclear weapons three times and of even greater concern, it is now capable of displaying it. capable of reaching the united states. we have seen major threats in those 16 years. we have seen others as well. i will start by agreeing with your premise. while we need to look at trends, we need to be resilient for the possibility of surprise. i wanted to address three questions. the first fundamental question technology for missile defense over the next 16 years can keep up with the technology and operating concepts for ballistic mussels and cruise missiles. same consult that document, we would find it interesting although inconclusive. it remains to be seen. keep pace.y can be seen i want to go little further than that. cade, we next that de should expect a threat to continue to a

sergey brin explains that.isten. >> we worked with partners in the detroit area, germany and california. we used automotive suppliers. this is using car parts that are standard but sometimes we'd modified them to our needs. >> how about the whole body? >> yes, we've worked with partners, auto manufacturing firms that have helped us with the body. >> unless you live in mountainview, don't expect to see those cars going down the street anytime soon. they pretty much tested them in parking lots up to this point. these things have no steering wheels, no pedals. it's kind of like a ski lift experience except it's completely enclosed. brin says they'll be really safe because of the way they're designed just for people and they even talk about impact scenarios. you wouldn't want to get hit in these. they only go 25 miles per hour, guys. >> john, stay where you are. i want to bring somebody else into the conversation and get your perspective on more of this as well. good morning to you as well. i want to talk google ca