Reasonably confident that inflation will move back to its 2 objective over the mediumterm. Cory the fed is indicating an increase remains unlikely at the april meeting, and not necessarily occurring in the june meeting either. Swiss officials have frozen more than 400 million in assets with accounts linked to a massive Corruption Scandal of the Brazilian Oil giant, petrobras. Steps have been taken to return more than 120 million back to the rightful owners in brazil. A terror attack in a museum, the capital of tunisia. Holding hostages and opening fire. These 19 people were killed, at least 70 tourists. Two of the gunmen were killed in a shootout with police. It is the worst terror attack in tunisias history. Two former executives at clecs pharmaceuticals left after accounting errors are getting a big payday. The former ceo and cfo get a combined 46 million. Salix and recorded sales in the wrong period, counted rebates as business expenses, and failed to account for millions of dollars in potential product returns boosting results are in Financial Issues prompted an sec scc investigation. Tmobile unveiled its uncarrier program. Tmobile ceo john leger spoke earlier today. John what is still happening in the business environments kerley gigantic. 83 billion of Business Wireless Services controlled by the four major carriers. 87 at t and verizon, sadly about 9 billion 9 controlled by sprint. It is like used car land. It is haggling and no rate card. What we announced, real simple pricing. Cory tmobiles plan comes after a similar offer comes from sprint. Tesla can now sell cars directly to consumers in new jersey. Governor Chris Christie signed legislation that overhaul. s dealership overhauls the states dealership laws. Now to the lead. Rhapsody is making its Music Service available to twitter users. That includes 32 million songs. Rhapsody is the first Music Streaming Service to let people listen to a full library of licensed humans within twitter. Rhapsody subscribers will post songs to twitter. This Partnership Comes as twitter has failed attempts to build their own music apps. This could be a game changer for the music industry, really bringing music to social it has not been before. Rhapsodys interim ceo joins us from austin, texas which is better than rainy seattle. David this strikes me as a big deal. Really going back to the roots of twitter, which has meant inventors of twitter, jack dorsey and others, wanted to share musical stuff. Now you have a way to do it. David absolutely. Its just amazing with all this new streaming services that exist, and everyone is listening to them on their phones and in their headphones. Its kind of a lonely experience. We thought why dont we figure out a way to make it social again. Partnering with twitter and taking advantage of their audio card seemed like the perfect combination. Cory ringing music to mobile, going back to the ipod it seems in a lot of ways it revived the music industry. The licensing quality how much money apple was able to hold away from the publishers, have really hurt the industry. More listening, less money. What is the licensing background and why has it taken so long for this to happen . David we had to make a decision as rhapsody that we would pay for the music the people listen to on twitter. We are doing that because we want to expose the world to the fact that streaming music exists, rhapsody is here and has been here for a long time. We have a fantastic Subscriber Base that is growing. We are still very early days great days. Less than 1 of people in the world are using a subscription Music Service great we want to educate the market that you can listen to music, artists can get paid, and you can have access to all the songs in the world. Cory this will come out of the not all that deep pockets of [indiscernible] david that is true, it comes out of our pockets. We are making a sound business decision, we believe. We are advertising to streaming music and rhapsody to the twitter user base by paying for the music. In return, as people get educated and they understand streaming music is possible, that it exists, that we have a fantastic service, they will engage with our product and we get more customers. We believe its a very sound business decision by us and great for artists, because they get paid. Great for people on twitter because they can listen to music and share it and its better for us. Cory it is a marketing thing. When people make this share youre bringing people back to rhapsody. Maybe it wont even be 90. Do you think about it that way . Its like a response in singledigit percentages could lead to real business for you guys . David absolutely. The Conversion Rates think of it like advertising, Conversion Rates for advertising, for apps for people to install them are fairly low, but it works. It is todays social way. People would send you mail for direct response. That worked for a while. What works today is social. We have hit on something we believe is going to work great. If it doesnt work great, we will stop. In the meantime, we think the fact that you have to be a rhapsody user to share music on twitter will drive people to the app and once theyre in the app, theres Nothing Better than having all the music in the world in your hands. You can listen to it all the time, take it with you. As our customers experience this and new people do we get more and more customers. Cory radio is very different now than it was five or 10 years ago. Music discovery seems to be the great mystery in a new world of streaming music were a lot of music is available, a lot of different genres. Finding new music has not gotten any simpler. You could argue it has gotten more difficult. David this is really why we think the Twitter Partnership is so important. Where do you learn about music . You learn about music from your friends, the people you know, the other people, you are used to hanging out and saying, what are you listening to . That has been lost when everyone has their own silo, their app, their headphones by themselves. Footer provides a opportunity for you to share your music, what you like. People can follow you, listen to it, check it out. We hope to get excited about sharing music on their own. Cory im curious about whats going on in the world of licensing and what the emerging trends are. We keep talking ascap and bmi, the holders to the rights of most of the music written in the last 100 years. Theyre wanting higher and higher royalties for every stream and every play. What is happening there right now with bmi and ascap, and does that differ from the demands of the labels that own the music but not the songwriting . David in general, our service from the beginning has been set up to pay rights holders for their music. We created this model of all you can consume and then paying back on the back end. We pay a lot of money. We continue to believe that its important to do that. We just want to have equal rights to the rest of the industry and if we can do that, we will compete is a great product and innovation for acquiring customers. Cory what is the first song you will sure on this service once you have launched . David we did launch, and i have been holding back, trying to decide. I believe its going to be 10 by pearl jam. Cory a fine seattle choice. Thank you very much, we appreciate it. Cory an cory johnson. This is bloomberg west. General motors making major changes in russia. The company will stop selling its opal brand, along with most chevrolet models. Car sales dropped 38 last month as russian sanctions and the oil collapse have hit russia hard. Folks wagon looking to get back into the u. S. Van market. The company may also sell pickup trucks in the u. S. Executives also said volkswagen will decide in the next few months whether Battery Technology is ready for prime time in electric cars. American skier lindsay vonn has captured her seventh world cup downhill title by winning the final race of the season. Upon return to the slopes after two surgeries in her leg vonn missed the olympics last year. A new feature will roll out in the coming months. For now, facebook does not plan on charging a fee for these transactions. It is not a huge surprise. [indiscernible] joining us now, sarah frier, who covers facebook for us. I was a little bit surprised initially. This could be a really big deal. Sarah yeah, and the fact that facebook is in charge again, this is something where you are already connected to your friends they will connect you to your facebook Friend Network if you want to send [indiscernible] Cory Facebook has half a billion users of messenger all over the world. Not that the process of signing up for venmo is particularly daunting. Does this make this easy . Well their adoption curve be that much faster . Sarah i would be at least a little bit skeptical. What you have to look at is how people are treated facebook artists like this in the past or we saw a lot of skepticism last year when facebook forced its users to use messenger instead of chatting to the facebook app. I know people who still downloaded to read a message and then delete it right after because theyre still worried about the privacy concerns all the commissions they get asked for the app. Permissions they get asked for the app. If people are freaked out by the app, will they use it to send money . I dont know. It will be a little bit more seamless this is all Technology Developed inhouse. They will not be giving your information to a thirdparty provider. Cory this allows users of facebook home a friends who use Facebook Messenger, to link their debit cards and send money. It sounds like it is just a button on the messenger screen. Sarah yes. It is designed to be pretty seamless. The question is, have people got into the habit enough that they dont want to switch . Are people just as skeptical of these things as they will be of Facebook Messenger . I think people will be holding them accountable for privacy. They will be wondering about all the permissions. Cory there is so much innovation in this arena right now, with a lot of money behind it, whether it is visa or square cash or venmo. Do these guys immediately jumped to the front of this instant payment business venmo is making the most noise does facebook jump to the front of contenders in this arena . Sarah we will have to wait to see how it gets adopted. People have had this sort of mob mentality about facebook over the years. There was this big question on download messenger. They got more than 500 Million People to use it or it facebook does have this massive power. They also have people who will square off it. It will be interesting to see if when its all gone we will have to wait and see. I do know that the kind of peertoppeepeer payments the people do has become increasingly common over the last year. Cory for research purposes, when you send me some money . Sarah maybe two cents. Ill give you my two cents. Cory sarah frier, bloomberg news. Thank you very much. Cory tiger woods, move over. The new videogame star in town fourtime major winner roy mcilroy. Does mcilroy had the same kind of star power is tiger woods . Brett nelson, executive director of eapg tour joins us. Golf has pulled back in terms of popularity when tiger has not played, but roy is really getting a following, maybe not equal to tiger,. But why now . Brett just looking at where we are at with our golf business, we had made the decision to take an extra year of development in the game. We moved to a new engine and it was our first offering on the new generation of videogame consoles. When we were building the game we had this mantra of the next generation of golf. We always talked about in terms of what that meant for the game but we started thinking about it in terms of what that meant for the sport of golf as a whole. It became a real easy decision for us. Rory mcilroy roy mcilroy really does represent the next generation of golf. Rory right at the top of that list, world number one. European tour and pga tour player of the year in 2014 the international appeal. His star continues to rise. The list of accomplishments and sunday and some at such a young age is joining the life of tiger woodses, when you look at how things are trending historically, and what he represented in terms of representing the next generation of golf from an actual sports standpoint and how that tied in nicely to what were doing with the game and launching it for the first time on the next generation of consoles. Cory tiger was not on the cover of the game. There were a few years when he was not playing the tour, he was getting divorced, and that was a colorful story for a while. You took him off then, but you brought him back. Could he return yet again . Its about play in the last year. Or is this about building a new franchise for the future . Brent this is about building a new franchise for the future. We have made a commitment. We are really excited to be partnered with rory. The sky is the limit for him. I recently had a chance to spend time with him in dubai when he was in between tournaments there. Analyzing his swing for putting it in the game just where he is and where his game is at. Cory hes a beast. He won the masters as a young kid. Its an amazing thing. I wonder, what is the cost to your business to make this change . Brent i dont know that you can really quantify a cost, per se. I think it is the right thing to get on board with rory. His star is only continuing to rise. I think hes poised to continue to do great things in the world of golf. He is one masters win away from competing in a grand slam. Cory we have to jump right now. Bloomberg west will be back. Cory youre watching bloomberg west. Im cory johnson. The obama admission nation has stopped short of congratulating Benjamin Netanyahu in his party victory. Officials say he will not way in until israel has formed a new government. Netanyahu says there are issues that must be addressed immediately. We are facing great challenges ahead. I cannot elaborate on all of them but i can say with certainty we have challenges in both diplomacy and security. Cory Netanyahus Likud party are formed performed better than expected. Swedens Central Bank CutInterest Rates deeper into negative territory. The bank lowered the repo rate to a. 25 . The central bank also spent the Bond Buying Program to 2. 4 billion. The registry is designed to combat a decelerate inflation in sweden. The u. K. Economy will grow 2. 5 this year and 2. 3 in 2016. That is an upward revision to previous estimates. George osborne delivered his final budget to the parliament for the may 7 election. George osborne the hard work and sacrifice of the british people has paid off. The original debt target i set out in my first budget has been met. We will and this parliament with Britains National debt share following. The sun is starting to shine and we are fixing the route. Cory that said, unemployment in the u. K. Is that a sixyear low. The jobless rate Holding Steady at 5. 7 . An illinois congressman aaron schock is going to resign at the end of the month. The 33yearold republican has faced questions about his spending, including private jet trips, whether he inflated the reimbursed mileage on his private vehicle. Shock decorated his Congressional Office with an downs and abby scene d ownton abbey scene. Users get ondemand and live her grammy programming. Sony is beating rivals like apple and verizon to the streaming tv world. I said i owed my friend germany 1. 84. I owe him one dollar . 50. Decisions and comedians and artists had to spend a bit of pure luck to make it. Artists have a new way to make money and sell stuff on youtube and soundcloud and vimeo. Patrion is taking it further. No middleman. Artists and their fans connect directly. [indiscernible] how does the business work . Guest exactly like you just said. These days there is this new emerging creative class. Its not 1000 or 5000 people. It is hundreds of thousands of people who are growing up and realizing they can be creative entrepreneurs. Cory five weeks in the studio jack its the opposite. It used to be there were three pipelines to the people to the masses. There were people who control those pipelines, and its not that way anymore. If you have something great to say, people will listen. Cory how do they work . Jack you create a patreon page i go to your fans through whatever channel you have and you ask them to help you. It is one dollars per video or five dollars per web comic. We have some folks paying 100 every time artists really something. Cory you have fans essentially offering to buy a subscription to the work of an artist. Jack yes and no. The artist is not saying, you cant watch this unless you give me five dollars a month. The artist is saying, im making stuff anyway. If you want to pay me five dollars a month, you can. If you do you get all this other cool stuff. Cory did louis ck do Something Like this . He said, im going to sell some of my stuff. If you want to throw some money at me, i would appreciate it. Jack he sold his comedy special directly to his fans. It was an incredibly successful campaign. I think he generated over a Million Dollars in sales. Cory you are a musician as well. Jack i have been a professional musician for the last 10 years now. It has been my living. I still am a professional musician. My fans are pledging they pledge a little over 6,500 per video be released. The band makes one video a month. Credit cards are run and we get 6,500 for making that video. Cory you try to make it with a budget of at least 6,499 . Does this change the way you do your work to think about it in an economically responsible way so you have an income . Jack having a regular budget as an artist is the coolest thing ever. Other artists can tell you money comes in chunks in this field. You will go for six months with little income and then get a big licensing deal. Its hard to budget when you have such a regular bursts of income. With patreon we know when we release this video that you will get a check for six to 500. Cory people have tried things like this with youtube. The revenue was not there. Does this fundamentally depend on the charity of strangers . Jack you could call it charity. I dont like thinking of it as charity. There are some creators that i just love so much it is difficult to describe. I want to pay them to make more stuff. That is an old feeling. Cory i dont want this music to go away. Jack that is how every great piece of art that we know has been made. Cory i guess we are patrons. Its different. Jack why is it different . Cory it was smaller groups, not infinite groups. Jack but now you have the crowd. You have everybody. Instead of depending on one rich person, there are one Million People to give you a dollar. Cory what was your initial inspiration for patreon . Jack i spent three months working on a robot music video for myself. It was a serious robotics music video with inanimate tronic robot and animatronic head. It took me three months to make and i spent over 10,000 making the video. I knew when i uploaded it it would get half a million hits. Our catalog on youtube has about 120 million hits total. That leads to very little at revenue. My last check for half a million hits was 74. Cory you were doing a tech video. Is that what made you think, theres robots, maybe theres crowd funding . Jack no the connection was im going to get half a million hits on this. I know theyre going to enjoy it. Is going to lead to 70 of ad revenue . That does not make sense. Five football stadiums a people should not be worth 70. I dont buy that. Cory you will give me the link when were off the air. Jack conte founder of patreon. Cory this is a story about elon musk. He is trying to put questions about the cars battery to rest. Tomorrow he will make a big announcement that he says will soothe customer anxiety. Tesla has been hit with technical issues from engines bursting into flames and batteries losing power in cold weather. It is an anxiety provoking thing if youre in one of those cars. The director of the joint center for Energy Storage research joins us. George, this issue of battery innovation is such a fascinating one. How much can tesla push the envelope on the technology that they already have with software . George they have been able to push the envelope an amazing amount. We are on the edges of our seats to see what elon will say tomorrow. Their battery is basically a set of computer batteries. It is repackaged for the tesla. His announcement that hes going to make it a little strange because tesla already goes further than most electric cars. I and i think everyone else and very curious to see what he will say. Cory as it relates to our gun you guys have been trying to push much further than tesla. I wonder how you guys look at tesla. You say, why dont we get some duct tape and computer batteries and do what tesla is doing . George the reason is that lithium ion batteries, which is what tesla and all the other manufacturers use, just does not have it in itself to go more than about 50 . Real optimists would tell you a factor of 2, more than it does now. We are taking the next step right step. We want to get something that is a factor of 5 better. Its a bit of a gamble. Its very visionary, its very aggressive. We think we can do it. We gave ourselves a rather short timescale. We said five years. That is the length of our contract with doe. The answer is out there. Cory i think it is fascinating. Its interesting how tesla is used the infrastructure of tax credits to fund their business and their development. It may be one of the reasons they could not wait is because credits are available. You look across a map of all the places you can get tax credits for building the cars in california. As long as they are selling cars in a list of states and a few other states and arizona, they are getting tax credits based on how many cars they have produced to be sold in those states. Those credits are available now and probably not later. The something that factors into the economics of what you guys are doing . George it is one of the motivators for tesla. Common sense would tell you it is. Elon is smart enough to figure most of the things out. I dont think it has a big affect what we are doing. What we are producing we hope to transfer to manufacturing maybe in a few years, and it will take the manufacturer another three to five years to bring it out. We are talking about something that is five to 10 years out from now. Cory to that, in the last quarter, tesla, 33 of their gross profits. Talk about how they are leaning on these tax credits. 33 were from these tax credits in the last quarter. Tesla says that is going away. Is that worrisome when you think about how this business works . George tesla has to try hard to get its market eager. Bigger. That is a sign that the Revenue Generation mechanism is shrinking and maybe going away completely. That means you need to sell more cars. That is one reason for the announcements tomorrow, to make it more appealing to people to buy a tesla car or the next generation tesla car. It will cost us maybe 30,000 instead of 70,000. Then it is starting to approach the massmarket. Probably he is feeling the pressure of time. Cory do you think they will have a ready thousand dollars car in the next two years 30,000 car in the next two years . George i hope so. If the price is low enough, im there. Cory george crabtree, thank you very much. Time for a check of Bloomberg Top headlines. An essay later Edward Snowden holding a News Conference via video link at the cbit tech fair in hanover, germany. Edward snowden we were removed from the ability to know that these policies have been enacted without our knowledge or consent. We did not know that we need to think about who we are calling in the middle of the night what it might signal to our own government or an adversary government something about our own human relationships, our associations. Cory snowden has been given temporary asylum in russia. He previously addressed sxsw conference and has held a reddit q a. Starbucks announced the 2 for 1 with new shares payable april 8. The coffee giant split its stock six times. The last one was 10 years ago. Starbucks got a modest boost to its earning guidance in announcing its split. Cory more people are ditching traditional jobs to work freelance, whether they want to or not, but freelancers and Health Insurance . It does not always happen. A Companies Using big data to predict Health Care Expenses and offer recommendations. The ceo im one of the few people who loves insurance stories because we care about it so deeply, the business is so opaque but this issue of insurance for freelancers, its such a huge problem. Guest it is. 1 in every 3 American Workers 60 million American Workers by the end of the decade that are on their own. They love their freelancing lifestyle, taking fractional work when it makes sense in their days are in their weeks, but theyre on their own when it comes to picking their own Health Coverage in understanding how to navigate that system throughout the year. Cory what do you guys do to help them . Noah we are a mobile first web app. You can go to stridehealth. Com. We help freelancers build a Health Profile about themselves that we can use to forecast their Health Care Use for the next year. Its a fairly complex Financial Model on the back end but for the user its fairly simple. Cory you work as a discovery engine for the different offerings from the insurance carriers, and you are a lead for them . Noah we dont just drive you to an insurance company, we stick with you. Sort of like a financial advisor. We will map you to the right choice of a health plan. Cory roboadvisor. Noah you can use the word robo if you want, sure. We enroll you in that health plan. We will get you a government subsidy if you qualify for one. Cory is obama care o bamacare, is that a thing that leads your business to a fast word option . Noah before the Affordable Care act, a letter people focus on subsidies, but it also structured health plans so they would be more machinereadable so we could create an index out of the health plans on the market and use an intelligent engine to sit on top of that index and make recommendations for you. Cory the Affordable Care act codified the plans so they could be compared, and that allowed you to do the comparing . Noah yes. Used to have freeform text from all these companies. Very hard to figure out if an individual, also very hard as a machine or a piece of software. Cory you are doing in many states across the country. Are you picking by market size or the ability to do the ease of doing business in no states . Insurance regulations are a mother. Noah for us it has been market size. We cover 44 of the u. S. Population across the seven states. That is good coverage without too many markets. The regulations are different in each state. We are regulated like an agent or broker traditionally. It is an ancient model. Cory with Companies Like uber and taskrabbit, its interesting you are messing with these new Economy Companies . Noah yes, these Companies Set for the first time are gathering freelancers around a particular type of work and recognizing that they have needs and they need someone to take care of them in a human way. That is what we are there for. Cory noah lang thank you very much. Its time for the bwest byte. Here to tell us katie, tech columnist. Katie we have three problems for uber today. First the company is banned in two cities in germany. The paris office of uber was raided. Executives have been charged with running an illegal taxi firm in south korea. Cory its amazing. It seems like the Business Plan at uber is storm your way out into a market, figure out how it is legal or illegal later. Katie yes. The Business Plan has worked for uber so far. When you see these hiccups, it does not threaten ubers existence, but ubers ability to own these cities. When they have these legal hiccups, they have to press pause and then competitors can come into the market. Cory when i talk to uber investors, they say they have a better shot by going market to market as opposed to going into a whole country and saying, make us legal. Are the challenges different in south korea, germany tom and france . Katie i think they are finding the Global Expansion plan is hitting road bumps because there are cultural challenges they have not anticipated, like in india, perhaps in south korea definitely in germany, where people think of taxicabs very differently from the u. S. Uber has been scaling back its militaristic approach to entering countries. Cory thank you very much. 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