Be a small part of the discussion at todays summit ukraine ceasefire and terrorism will dominate the thoughts. Yesterday, finance ministers were unable to reach an agreement on extending the aid package to greece to expire at the end of the month. Cisco shares enjoy a big rally, hitting it ties double in seven years. Revenues were up 7 and John Chambers is company is growing again. We in an industry that will change the way the world work. The network is at the center of all technology. Now every country, every city every company in the world will become a digital. That will allow for faster innovation and will allow horses go to become the number one i. T. Company. Sales in china were down 19 . Ecommerce site jet. Com has raise another 100 million from investors. They have now raised 220 million ahead of its test launch next month. The company is founded by the diapers. Com founder and it is a members only market is, in costco online. Dealmaking takes in the Online Travel industry weeks after reaching a deal to buy travelocity, expedia is at it again, purchasing orbits or 1. 6 billion including it. The purchase will add orbits and cheap tickets to its portfolio as it gears up to take on priceline and competitors. So what does all of this consolidation . With me now is someone from rbc capital and sam shank ceo of hoteltonight. Talk to me about Online Travel. Since you are the senior guy here. What does this mean or lose Public Companies for these Public Companies . We have seen tremendous consolidation over the past few years. Has become a duopoly. Two the cap. Expedia and priceline. They have a lot of the vertical planes. They may look to buy more like hotel tonight, but this base is consolidating and they do it in a way that is usually pretty smart. Setting up accretive deals, a multiyear trend, probably will see more of it. Euro about no antitrust issues. This is what was called a life is. You dont make any money selling airline tickets. All the economics are in the hotel market. The smart thing would be to start a Hotel Business wait that is what you did with hoteltonight. What is the trap you see orbitz having to deal with . The shift to mobile is the big trend. The starting point for Online Travel, the largest is google. That is where people go to start their travel. In a mobile world, people are going directly to apps. That means brands are important. That place will to Something Like expedia is gathering all of the starting. In case of expedia, why wouldnt the app why wouldnt that be the most successful thing they could be doing . They are investing in that but there are other places that people are going to. Other flavors of apps that resonate better with people. We are the leaders in Online Travel. We have carved out a nice market is for ourselves and we are growing fast. From a design standpoint, you offer a different type of service. Expedia is like a smaller version of the website where you have to pick dates and scroll through stuff. These design an important part of that . These design a business impediment or expedia . I think their legacy business is an impediment for the we started with a clean slate. The front and back and were invented specifically for mobile use. It is very fast to book a room the only show you great tells because of the way the hotels compete on hoteltonight our rates are about 10 lower than anywhere else in the world. That really did sound like a commercial. When you look at expedia and mobile, do you see this as a problem . There have been two seismic shifts in the internet space the rise in mobile particularly. This requires expedia and priceline to pivot well. They can certainly put the effort in to make sure all of their apps work seamlessly on mobile devices. There are opportunities especially when you have these big ships. Whenever i talk to anyone in the travel industry, they talk about google, some antitrust issues with the way that they show search results. How big of a threat is this to expedia . Chances are, they will always be the biggest player in travel because it will be a required marketing challenge. You may have figured out a way to get around them, but you want to succeed in Online Travel and commerce, you have to pay the piper. They will stay at the top of the final, along with trip advisor. I doubt that they will get deep into the bookings are. They have tried for years and have that much traction. They are fine, their Business Model works just fine for travel. When users search on their phones, are they getting the best options for travel, the cheapest tickets, the most direct connections to hotels . It is imperative for google to present that, otherwise, people will search on a meta search company. The big thing for us is that the starting point is not necessarily google. Once you have the hoteltonight app and you come back several times over the year, we see people looking sometimes, sometimes researching rates, but we are not requiring that of the customer over and over again which is what happens in search and optimization. Very interesting stuff. Sam shank mark, good to see you both. Questions about twitter and Ceo Dick Costolo. He gave an interesting interview yesterday. Our exclusive interview with dick costolo. Here is a check on your world news headlines. Citigroup is raising prices on currency trades. For some clients, it could be a 25 hike in fees. Citigroup is looking to boost revenue after suffering more than 150 million on losses from the search of the swiss franc. Train manufacturer bombard ea is replacing its ceo. The new ceo is Elaine Belmar of united technologies. They have faced delays and cost overruns in developing its new cseries jet. Its been postponed four times and is expected to cost 5 billion, up from 1 billion a few years ago. Chinese smart tv maker lay she will invest billions to sell electric cars in the u. S. The executives tells us they can be successful because it will capitalize on the design manufacturing, and distribution strength. Twitter does not want to become an electric car company but are talking about an ecosystem of products and they want to make more money off of each including vine. To reach the goal, twitter has agreed to buy niche. Brad stone sat down with an interview with Ceo Dick Costolo to ask him about that acquisition. It is absolutely the very beginning providing monetization opportunities to the viners who have done such great work at building this unique community of content creators and connecting them to brands we think will be awesome for the brands who want to leverage the great work these viners due to create stories and for the viners who are able to build a career of the fun things they can do on the arm. Do you find yourself competing with snapchat for this new generation of video creators . I think of it more as this unique platform we have developed in vine. There are the stop Motion Animation experts, comedians, vine magicians, frame by frame animation work. Being able to leverage their talents to help companies tell their stories across the twitter ecosystem, we think is cool. By bringing niche on board, we think we can do that across the broader twitter ecosystem, within twitter itself. There is so much energy right now around the vine and snapchat ecosystem. It makes me wonder whether you to the squandered their opportunity in mobile video. There will be lots of players in this native video mobile space. I say that a lot and what i mean by native video mobile is radio primarily produce for consumption on mobile. We led the way with vine. We think there is an enormous amount of opportunity there. Buying niche was part of realizing that opportunity. A couple weeks ago, my twitter app allowed updated itself to allow for native video. As that rolls out to users, what kind of consumption have you seen . Great usage. One of the things we have been fascinated about in the first couple of weeks is how much people are using native mobile video to reply to tweets. Someone will text and mention another user on twitter and that user will reply with a short video. We have seen that from individual Users Companies medium has been doing a q a using native mobile video. We just did a q a today with comedian amy schumer who is in this movie coming out this summer. She did all of her responses via video. It would not have been the first use case we anticipated, but it is need to see that. Let me ask you about user growth. Recently in your Quarterly Earnings report, user growth was down when you expressed confidence that it would come back up to previous levels. Why are you so sure . That was in the first week of february. We had the benefit of seeing what happened in january. That outlook was based on seeing a return to organic Growth Growth initiatives that we have had inside the company that are delivering results and then some seasonality where q1 is higher than q4 traditionally. You have introduced the cadence of launches. One of them is instant time to talk about the importance of that. I have been talking about it since we were on the ipo roadshow, bridging the gap between awareness of twitter and really engaged on twitter. Part of that gap is new users coming to the five warm they saw it on tv they sign up for the platform and they cannot find the right accounts to follow, they dont understand how to use it. Instant timeline delivers immediate value to the users the moment they sign up. We can get them a great timeline of 20, 40, 90 accounts to look at immediately and show them how to use the platform, not try to teach them. That was twitter Ceo Dick Costolo. Later on we will have Sony Pictures former cochair amy pascal, talking for the First Time Since the studios massive hacking scandal. She talks about what it was like the days after that massive attack. Im cory johnson. Twitter ceo Anthony Notos account was hacked this week, the second time he has had issues with his companys product. A few months ago, he sent a private message to his public followers. So how big of a problem is the direct messages if the ceo cannot even figure it out . Brad stone asked that question to dick costolo. It is being able to take a public conversation private. We believe when you see these public conversations and you participate in them, there is a tremendous use case for taking the conversation to a private channel whether it is between you and a company how many times do you see people say i missed my flight at delta, Virgin America united, please help me, and they respond. Being able to take that context of any public conversation between two accounts to a private channel between one or more of those accounts, we think is a huge opportunity both for businesses and users on twitter and also there are times when you see a public conversation on twitter and you want to have a sidebar conversation with your friends about this thing happening. This is about enabling that and enhancing it to make twitter increasingly a daily use case. The product behind these features, you have some instability. Some managers coming and going. Has that situation stabilized . The short answer is yes. I love theme we have in place and i have also been particularly enthused by the way that my reports are building on their bench and strengthening it in bringing others into the company. We had a couple more additions to our engineering leadership. That is something im excited about. Organizations will always change over time but i like the team we have now. Do you feel like you make previous mistakes in made mistakes in previous incarnations of the team . I always tell people it is up to you to improve your team. Your job is not to defend your team but to improve your team. That is something i focused on and pay careful attention to. I love the way the team is set up now. I was struck about the internal statement that you mentioned about bullying. What would you like to see the organization do . I think that was the first time i said we suck at this, used cross language like that in a companywide email, and of course that is the one that is linked leaked. The point of writing that no to the company was to let them know i take responsibility for that. We are not going to go ahead with the status quo anymore. We will get more aggressive. It is on me to make sure that we do that and we will be aggressive and fast about making changes. That was about me putting the weight on my shoulders and letting the rest of the company no we are going to get more aggressive. Ecommerce on twitter. I feel like amazon has been trying to sell me the same portable usb charger since the feature was introduced. How big can this feature be . We are still experimenting. The opportunity for twitter is to really be the place for in the moment commerce. Now commerce. In the context of seeing some public conversation i want that. As distinct from other kinds of commerce here is just a catalog of stuff. We have a number of experience we are running. We are learning a ton from running those experiments, we do not have anything new to announce. You will see us continue to explore with what now commerce means. Facebook has 1. 2 billion users. A 200 million market cap. Is your vision for twitter still on par, is a facebook scale . Our vision is to have the largest possible daily audience in the world. We believe twitter is of value and can be of value to every connected person on the planet. That is the strategy we are delivering against. We think that strategy is comprised of stringent moving the core of logged in users, but also organizing content experiences for the more than half billion users a month that country twitter and do not log in and syndicating those experiences across the entirety of the web and mobile lab it landscape. Your cfo anthony noto, some goodnatured ribbing. His account was hacked recently. What is going on . Does he need a tutorial on two factor authentication . He received a compelling office offer from a nigerian prince. Hard to resist, i will leave it at that. Coming up departing pictures of cochair amy pascal from sony. She speaks about her in her first public appearance after her studios hack attack. You are watching bloomberg west were we focus on innovation, technology, and the future of his is. Amy any as gill out for the First Time Since the cyber attack on sony. Speaking last night in San Francisco at the women in the world conference, she opened up about the very early moments when she first learned about how big this attack was. Youve been through something so extraordinary in the last few months that none of us can hardly imagine what it must be like. You cannot. I promise. Tell me about the moment when you first realized that this slowmoving car crash has happened, the North Koreans have hacked sony and they are sabotaging whole system and people are finding skull and cross bones on their computers and its all shutting down and you think of living is going haywire and then there was this awful personal moment when you realize they were about to dump all of your personal emails on to the internet. Tell me what you went through. First of all, iran this company and i had to worry about everybody who was really scared for stop people were really scared all of their Social Security was out there, people worried about their passports, about all kinds of things. But nagging in the back of my mind, and i kept calling, they dont have our emails, right question mark tell me they dont have our emails. Then they did. That was a bad moment. You know what you write in emails many of the emails i wrote between my friends we had been having an ongoing fight since the moment we met. There is no way you can never explain the way you talk with someone where you just kind a go into metaconversations and sarcasm and roleplaying. Anytime i even thought i would try to explain it to anybody, it would just dig a worse hole. What could you do . Years the thing as a woman, i figured what i did was control how everybody felt about themselves and about me. Thats how i did my job will stop thats kind of the way a lot of us act as leaders so there was this horrible moment when i realized there was absolutely nothing at all i could do about whether i had hurt people, whether i had betrayed people, whether i had said things i didnt mean, i couldnt protect anyone, not their feelings, not what they thought of me, and it was horrible because thats how i figured i did my job for all of my life and it was also strangely freeing. All of a sudden it was just what it was. Maybe that wasnt the way i did my job. May be controlling the way everybody feels about themselves in the way they feel about me isnt what i was doing. Maybe i thought thats what i was doing, but i wasnt. Theres something really interesting about that. How about repairing some of the relationships that had been damaged or did people understand . The first person i talked to was angie after that email. Everybody understood because we all live in this weird thing together called hollywood. If we were all actually nice, it wouldnt work. [laughter] these actresses dont realize theyre getting paid less explain. I run a business. People want to work for less money they work for less money. I dont call them up and ask if they want more. The truth is what women have to do is they have to walk away. People should not be so grateful. I shouldnt be grateful, they shouldnt be grateful people should know what they are worth and say no and they will. [applause] amy pascal speaking last night at the women in the world event in San Francisco with tina brown. Shes not the only executive who has talked about the lessons learned. Redstone talked to the glass door ceo at the Goldman Sachs tech conference. Glassdoor is where people go to post anonymous reviews about employers. One thing i have definitely learned is first off, everybody makes mistakes. I made lots of mistakes as we were building glass door and i have my share of truthful, negative reviews. People accurately portrayed where i screwed up and they were right. We have learned and we have gotten better. Glassed more raise 70 million with Tiger Global Management valuing the company at about a billion dollars. All eyes are on the federal indication commission as they abate an open internet stop my guest will join me next on bloomberg west. Im cory johnson and this is bloomberg west. Tom wheeler shared his proposal for a new and open internet with his four fellow commissioners last weekend not everyone was happy with the proposed rules. The public will have to wait until after the february 26 vote to take a look at the proposal but wheeler stated these are the strongest internet protections ever proposed. One of the commissioners has spoken at this proposal and joins me now from washington. Are these the strongest rules ever proposed . One thing is were sure its a monumental shift toward government control of how the internet works. That is about the best thing i can say about it. What is the worst thing about it . The worst thing is it micromanage his virtually every aspect of how the internet operates and opens the door to billions of dollars on broadband consumers will have to pay. It will lead to slower Broadband Speed and will lead to trial lawyers following litigation filing litigation across the country. There are a whole host of harms that are going to happen and thats why wish you could see the 332 page plan which will not become public until after the fcc votes on it. Lets go through those objections one by one because youve listed a handful of them. Lets start with micromanagement. At some point if the skirmishes happening at the moment at which a user is trying to get information isnt that where the regulation has to happen if there is to be any regulation . There are two responses to that. First, nowhere in this document does the agency identify any systemic problem with last mile connectivity. They might say it is limited but they dont give examples of isps acting as gatekeepers in such a way that industrywide rules are necessary. Second this document goes beyond last mile collectivity. For the first time, the agency would insert itself over debates over connection. It sets not only requirements that companies physically interconnect but the rates they have to adopt and it would open up a complaint process, more litigation that it would allow either the commission or courts to secondguess all of these decisions which are currently made in the free market. That is not something the agency or the courts are equipped to do. A lot of this hinges on the Guiding Principles of how to administer this. What tom wheeler wrote about it in his oped, he talked about this commercial reasonableness and the evolution of what he thought about what that meant. He said essentially i believe the fcc could figure it out but he says i became concerned with this relatively new concept and that it might be determined that whats reasonable for commercial interest and not consumers. Should the rules be there to promote what is reasonable for business or for the users of the internet itself . I view our role as vindicating the Public Interest. In my opinion, the Public Interest is driven fundamentally by what is good for american consumers. Putting that to decide, restaurant about commercial reasonableness is something weve applied in a great many contexts and i assume we can do that here. But what the president in an fashion in unprecedented faction said they should adopt his plan to regulate the internet. More than any other change of mine, that is what is driving this us. You mentioned heavy taxes. Isnt there a rule in place that prevents there from being taxes on the internet . How can that lead to more taxes . This is a critical point. It only applies to a sales tax on internet access, not the fees that would necessarily follow from us reclassifying broadband as a Telecommunications Service which is what we are on the brink of doing. This order explicitly leaves the door open to raising the federal fees under the universal service fund and letting states do the same. Thats why an independent study said 11 billion in new fees at east would have to be increased as a result of this reclassification and thats something consumers are going to have to pay for. That was the Progressive Policy Institute study. That was the highend of their estimate. You might say it is the highend, but who would have thought a year ago the fcc would spend 1. 5 billion to expand our programs and contemplate the lifeline program. These are programs funded by these fees. If you look at the spending ambitions of the fcc its going to come at a price and that price will be paid by consumers through universal Service Fund Fees assessed on broadband as a result of this order. When you talk about the fccs party lines, you talk about knuckleheads like me saying republican commissioners and democratic commissioners, those appointed by democrats, as if those are strong party lines. Is there a possibility you can convince the other commissioners that this rule might be worth some voting against . Im not sure if im going to be able to persuade my colleagues on the other side of the aisle, but i stand in the shoes of president clinton and the shoes of chairman canard who embraced the bipartisan consensus that has served this country so well when it comes to broadband dating back to the day of 56 k modem and aol discs coming in the mail. I think the broadband Success Story has been a good one because these issues have not been political until recently. If you look at the reporting, becomes clear this is a politically driven agenda for a couple of months which is unfortunate. Digital opportunity is something that does not know political affiliation. You talk about litigation political issues are going to be political. Isnt any rule going to invite litigation . And the question is whether these rules are necessary in the first place. Ive said Net Neutrality rules are ace are a solution in search of a problem. Getting rid of some of the legacy regulations still on the books come making it easier to deploy Wireless Infrastructure getting more spectrum into the commercial marketplace. I can assure you most people in this country would not find anything problematic about that. They would love to have more broadband choice at better prices and higher speeds. Net neutrality take sesame opposite direction. Generating litigation for the sake of making a political point i dont think is good for anybody. I really appreciate you coming on to talk about this thing before the vote. Big deal. Sweden, the central bank is cutting its main Interest Rate below zero to stave off deflation. The bank is planning to keep the rate negative until underlying inflation is close to 2 . The bank also announced a plan to buy 1. 2 billion in government bonds beginning this month. Credit suisse is cutting costs and slashing pay for top executives due to the rising swiss franc and the settlement for helping americans evade taxes. We did feel it was right to acknowledge the impact of the earnings on that settlement and as a result, the board and executive board voluntarily took these reductions in compensation as a result of the impact the settlement had in 14. That bank pledged to maintain its dividends. The chinese maker of the drone that crashed into the white house lawn plans to double sales this year. They are pushing for clear rules on the use of drones. The company is planning to open its own store in china later this year. Speaking of drones, im going to stop droning on and let Mark Crumpton tell us what is up with his show at the top of the hour. World markets are watching developments in brussels. The finance ministers are holding talks on greece. The countrys continued membership in the eurozone could hinge on whether bailout tones will be extended or negotiated, but some members are insisting greece abide by the original agreement. The former u. S. Ambassador to greece, Thomas Miller will be joining me. I will see you in a few minutes. You are not going to want to miss this next story valentines day is fast approaching, but all is not lost for those looking for the appearance of love invisible girlfriends the Service Offers makebelieve girlfriends and boyfriends. The cofounder joins us next. Im cory johnson and this is number west. In honor of valentines day this saturday matt homann is here. What is your number . The number is zero. That is . The number of boyfriends and girlfriends you need this holiday. My wife would agree with that contention. What is invisible girlfriend . Its a way to help you tell a story about a relationship youre not in. My friend calls this the saddest thing theyve heard. Is this for people who cant get a girlfriend or is this for people who want to steer their computers and can be eight worried about actual relationship. I think the whole judgment about whether you are not somebody unless you are in a relationship. There are people you want to have cover it work because they want to focus on their job. Theyre lots of reasons people might use the service. Next and the Service Works how . You pay 2499 four dollars and nine cents a month. A real invisible boyfriend or girlfriend. You get handwritten notes and voicemails and we will be expanding to gifts some perhaps even flowers at work. When you go through that really fast . How many social media messages might you get . Were not using social media. We are using actual text messages. On the other end, there is someone im thinking of the movie her where the persian where the person had an actual relationship with the computer. We not trying to convince you in a relationship, we are trying to give you prove you might be able to show to others. But we found our users are starting to use this for conversation, talking to their invisible boyfriends and girlfriends at a higher clip than we anticipated. Be on the person getting hit on at work not a problem i have, who else would need this service . A soldier overseas without a girl back home somebody who might be gay or lesbian and have conservative parent in the bible belt. We have lots of people using it for different reasons. One person is trying to make their x jealous, so there are different possibilities. If i signed up, my my my wife might be jealous and give me better presence on valentines day . She might. Im not going to try that. You have a lot of users already . Be launched three weeks ago and over those three weeks, 50,000 people have created boyfriends and girlfriends from all over the world. You want a big startup contest . We when the startup weekend competition and got some attention right then. We have been working to build the services we launched three weeks ago. Who are the people on the other side of sending these messages . Are they polyamorous . They are polyamorous. Who are they . We are a roughly 500 person work force in the United States and we are partnering with a company in st. Louis that helps generate micro tasks. There are all of these people around the country doing these small tiny tasks for us, so they are able to respond on a per text basis. So it is a distributed model, not unlike huber where they are volunteering their services and you can scale the business rapidly . Thats exactly right. Are you hosting on Amazon Web Services . We are not, but weve seen such an immediate influx of users and interest that we are focused on scaling the business to handle that sort of traffic. What are you doing for valentines day . I am spending it with my wife who is next door. A fascinating business maybe not as sad as it seemed at the outset. Thank you very much. You can get the latest headlines all the time on your phone tablet on bloomberg. Com and on bloomberg. And on bloomberg radio. More bloomberg west tomorrow. From bloomberg World Headquarters in new york, i Mark Crumpton and this is autumn line the intersection of business and economics with a main street perspective. Bottom line of we have full coverage of the stocks and stories making headlines on this thursday. Alix steel tells us why a decision by india may transform the global gold market. Our chief washington correspondent, peter cook, is tracking the delicate ceasefire agreement in ukraine. We begin with our in