Transcripts For BLOOMBERG Bloomberg West 20160318

Administration in jeopardy. A federal judge has suspended an injunction that blocked her appointment of her mentor, former president , as her chief of staff. Global news 24 hours a day, powered by our 2,400 journalists in more than 150 news bureaus around the world. Bloomberg west is next. Emily im emily chang and this is bloomberg west. Coming up, apple set to unveil new products at an event on monday. Will we see an unhackable phone in the lineup in well ask the experts. Plus, its a Virtual Reality hat trick this week. I sit down with h. T. C. s head to check out their new hardware. And the show time. As the network sets out on an ambitious expansion. We catch up with the man leading the charge, the c. E. O. First, to our lead. Silicon valley gearing up for announcements from apple on monday. One day before a major ruling in the San Bernardino case, which could determine whether apple is in fact required to unlock the gunmans iphone. So, what can we expect from this event on monday . Could it have any bearing on the debate raging over encryption . For more, im join now by the Senior Editor at 9 00 to 5 00 mac. Set the stage for me. What is going to happen on monday and will this have any bearing into the hearing on tuesday . Guest its clearly going to be an event where everything tim cook says will be passed very closely. Any illusion to new security and privilegesy measures in the device privacy measures in the devices, people are go go going to see that as a jab at the department of justice and the f. B. I. Know if hes going to directly address shoot or make some sort of statement when hes got all the world, the tech media looking at him. But clearly its very close and it would be a great opportunity to do so. Emily if they bring out steve cook, that would be something. Mark, you have a network of apple sources that is unrivaled what are you expecting to be unveiled at this event, specifically, will there be a smaller phone, an iphone s. E. , and what will the features be . Guest sure. I think that this events going to focus on three product lines. The iphone, the ipad and the apple watch. In terms of the iphone, were hearing thats going to be an iphone s. E. , which will have a smaller fourpoint 4. 0inch screen which is smaller than the 4. 7 and other screens. This will really be appealing to people who had older iphone models, looking for something thats a little bit more functional and easier to hold in the hand. Emily so, you also believe theres going to be a new ipad, potentially an apple watch update. Tell us. Guest sure. So theres going to be a new version of the 9. 7inch ipad and this is the ipad screen size that first launched in 2010. The current ipad at this size is the ipad air 2. Thats going to stick around. What apples going to do is take the ipad pro, with all those features, with the physical keyboard and the stylist pencil, and theyre going to bring that to the smaller screen size. So theyre going to come out with a 600 ipad pro, with a 9. 7inch screen, which is going to appeal to education, and business customers. Sort of another higher end tablet to go after the microsoft surface. As for the apple watch, we understand that theres going to be a apple watch 2, a redesign with many new features, around september in the fall. But for now, were going to see another refresh, sort of like the one we saw last year. New colors, new bands, new Software Features. Its going to be a light event, but theres going to be some refreshes across the three major apple platforms. Emily now, with regard to the encryption part of this debate, i was speaking with michelle, cofounder of cloud flair. Take a listen to what she thinks is going to happen on monday. Another way to look at this, theres a security vulnerability on the phone. Apples going to close the security vulnerability. And theres going to be an update in the future operating system where its not possible. It might be right now, but that windows closing. And if i was a betting person, i think on monday at the apple event, the biggest announcement there is the update to their operating system. Emily so, mark, theres been talk of an unhackable phone. Is that going to happen on monday . Are we going to see a new operating system that is quoteunquote unhackable . Guest i really dont think so. I think its way too soon. In terms of apples Software Engineering infrastructure. For a new operating system and a whole new dynamic thats quoteunquote unhackable. I think were going to see a lot about security enhancements and Software Features in mid june, at the annual developers conference, and perhaps around the time of the iphone 7 launch this fall in september. As for monday, perhaps theyll highlight the security features that already exist in i. O. S. 9 or perhaps theyll highlight the secure n. F. C. Chip for apple pay and the touch i. D. Sense or maybe tim cook will have some thoughts on the whole f. B. I. Case that he wants to share publicly. But i dont think were going to see any major security announcements in terms of new features or software next week. Emily from a business perspective, this is the first year that analysts are predicting an iphone sales decline. In a decade. How important is this event to their business . Guest analysts, ive been speaking to a lot of them, the consensus is theyre going to do about 15 Million Units on this per year. Now, compare that to 231 million phones sold last year, its not a massive blip on the radar. It could help taper some of the faltering sales. The customers who had the iphone 5, maybe had them two or three years, now if they want to upgrade a phone, if they want a cheaper option right now, they probably have to go for a samsung. This kind of plugs that gap. They can keep the apple customer basically. Emily one last quick question to you, mark. Normally we see phones announced in the fall. Do you think this is going to start a new pattern where apple starts spreading out the launches over the course of the year and does that help the business ultimately . Guest absolutely. For the past few years, before last year, we saw apple move many of their product launches to the second half of the year. And the hardware launches really toward the fall, september, october, october, november. But we see theyre starting to move some launches across the year, maybe in the spring time frame like theyre doing this year and last year and in the summer as well. I think thats going to improve apples earnings and what to watch for in that regard over the next few years. As they transition away from a packed second half of the year to more of a spreadout product road map. Emily all right. Thanks so much for joining us, mark. Our very own alex, our apple reporter, youre going to be with us later in the show. I want to stay with apple, though. Taking a look at how the company has been doing in the markets. More analysts changing their calls on apple. What are you hearing from the street . Guest first up, lets take a look at whats been happening in terms of apples stock so far today. It has not changed very much today. Were up by only about. 1 today. Weve been talking about the year to date number. Lets see whats happening year to date with apple. We can see that weve seen a fall from january in that january and february route that weve seen. And we come back up to where we actually begin. Its up about. 6 , just year to date. Now, its interesting that looking ahead to the apple iphone, the new one, that analysts calls seem to be slightly positive, slightly negative. People dont seem to be exactly sure where they want to go. So, for example, ill read out a couple to you. R. B. C. Capital today just saying that the march 21 event should be a positive catalyst. As alex just said, they expect apple to sell only 10 million to maybe 15 Million Units each year. But that could boost results in the runup to the iphone 7. Oppenheimer also going the other way, saying investors are likely to be underwhelmed by the next several events. With that said, if you look at my bloomberg terminal right here, behind me, basically analysts are still very, very bullish on the stock. The green here represents the bicalls, the yellow represents the holds and the red represents the cells sells. You can see the price target here is stillwell above the actual stock price for apple. So its interesting to see that analysts, despite whats happening with apple, despite the iphone sales potentially dropping, analysts are still very, very bullish. Emily thank you so much for that update. We will of course bring you all the details from apples product event on monday with special coverage starting at 1 00 p. M. New york time, 10 00 a. M. Here in San Francisco. As the event kicks off. The Tech Industry is getting more vocal about social issues, with the c. E. O. s of intel, twitter and yelp among those calling for georgia governor to veto a controversial bill. It would allow businesses in the state to deny not only employment but also education and Charitable Service on the asis of religious beliefs. On friday, twitter c. E. O. Tweeted, twitter and square oppose discrimination in all forms. Do the right thing and veto house bill 757. Roud to be a lgbtqally. Its one of several political skirmishes playing out at the state level. Coming up, the h. T. C. Vibe hits the market hot on the trail of the oculus rift but at a staggering cost. Emily as the Game Developers conference in San Francisco comes to a close, we have final details from the big three Virtual Reality headset makers. Consumers can now decide which is worth their money. The rift hits the market first. The c. E. O. Made the case for the rift saying it has the allegiance of hard core gamers. We look at this buehrle first generation as something thats largely pioneered and supported by enthusiasts. And especially hard core gamers. And having they want the best. So having the best is a really good place to be. Emily next, playstation v. R. This is way cheaper than the competitors. But the down side is its not available until october. Sony expect told us why the delay isnt a big deal. As far as the v. R. Experience goes, i think were really happy were able to address over 36 million ps4s that are v. R. Ready right now. Emily then theres the h. T. C. Vive, the most expensive of them all, coming in at 800. H. T. C. s head of Virtual Reality joins me now to make the case for the highend headset. So its the most costly. Why should users buy this over ock us will, over oculus, over playstation . Guest our solution is the most complete solution. Its the best solution. Emily why . Guest its the solution that puts you at the center of the content and allows the content to be all around you and actually gets you up and moving around in your content. So you have what we call room scale. You can move around in that content and have it all around you. And then you also have controllers for the solution which are tracked in space and you can interact with your content. All of that is in the box. Emily to put it in lehmans terms, when youre wearing the headset, the vive, you can actually see whats going on outside. You have the camera guest yes. We also have a frontfacing camera. With the ability to get people up out of the chair and movea around, which this solution does do seated experiences, standing experiences, and then room scale. When you move people around, you need a safety system. We have a chap rone system which keeps you safe, keeps you from bumping into walls and other people and things like that. Emily and you can make calls, you can get texts. Thank goodness. While youre wearing that headset, youre not cut off from the rest of the world. Guest thats right. We spent a lot of time in v. R. Staying connected was extremely important. Emily one of the biggest advantages you guys have is your relationship with on the software side. Tell us about that. Guest we built this in partnership with valve who also owns steam. The steam is, you know, 125 million customers, really hard core gamers. People that already have that highend p. C. That youre talking about. To use the vive without doing any kind of upgrade. So we actually have a very healthy base of customers to go work with. With our partner. And then we also developed not only the hardware and software together. Emily oculus and sony, they say theyre targeting different audiences. What audience are you targeting . Guest if you look at the types of content that we have, a lot of it is gaming content in the very beginning. Then now we also start to show where we have a wide breadth of partners. Well beyond gaming. Gaming industry is going to really start to innovate and pioneer and drive the adoption of this. But then we also have nongame partners like audi, auto desk, surgical theater, whos developing an application by doctors for other doctors. To actually take a scan of your brain and be able to walk through that instead of looking at it in a 2d format, so we have a lot of partners that are in the game and then in the nongame space. Emily weve seen the viral video of the animater doing the little mermaid, wearing the h. T. C. Take us a little deeper into some of the more practical uses of this now. Guest right. So, not only just having fun and playing games, but you look at what glen did, that was actually an art medium where he was drawing in 3d and being able to walk then through the actual art. So that was really fun. Emily are animaters using this technology now . Guest yeah. Theyre having fun with it. Theyre just Getting Started with how they can use this. Then looking at somebody like audi or some of the other partnerships that we have, theyre not just looking at it from a standpoint of getting people to, you know, look at a car in a show room. This is actual engineers that are looking at, i dont have to design a car in clay anymore. I can do it in v. R. Emily so when do you come out with a more affordable option for an everyday user . Guest quite honestly, were really proud of this price. Because its delivering not only the hardware and the product in the box, but its delivering a lot of the content. The delivering the best experience. Its delivering on what we all thought that promise of v. R. Was, of being at the center of the content, having it all around you, being able to sbler act with it. And then interact with it and then delivering it through a world class partner and platform of steam. Emily when could you think do you think Virtual Reality passes the mom test or are you not going after your typical mom . Guest my mom has tried it. She loved it. Emily really, when are they not going to just try it but actually pay for it, want to use it . Is that even guest i think thats a little bit down the road. I think that your initial adopter in this first year is tech enthusiasts, a lot of gaming, and then a lot of enterprise. And professionals are going to start adopting it and using it for their applications. Presenting content, presenting different mediums and product. So i think its going to be its going to follow the developers and what the developers actually develop and have the content for, thats how the consumer adoption is going to happen. Emily all right. Thank you so much for joining us. Its the one i havent tried yet. Guest cannot wait for you to try it. Emily thank you. Speaking of v. R. , nokia has officially returned to the consumer hardware space. Not with a phone. But this time with a launch of a 60,000 Virtual Reality camera. Its called the ozo. They claim this is the first highend v. R. Camera thats ready to go out of the box. The meant to be sold or rented to pro film makers but eventually they plan to introduce cheaper versions for hob yifts. Hobbyists. Coming up, after a week digging into the most sfift kuwaited Virtual Reality headsets, we asked the question, is the age of v. R. Finally here . Or do we need to get back to reality . Emily a Global Real Estate engine geared for chinese buyers is seeking to go public by the end of the year. The firm is raising funds from Institutional Investors before an i. P. O. Plan in australia. The c. E. O. Declined to elaborate on specific timing for the initial offering. Chinese buyers have been stocking up on property overseas with increased wealth. Turning back to the world of Virtual Reality, we just heard from h. T. C. s head of v. R. Who made the case for the most expensive headset among the big three makers. Oculus, playstation and h. T. C. With these gadgets hitting the market so soon, we asked whether the age of v. R. Is finally here. Joining me now to bring us take us put this all into context is our Bloomberg Intelligence analyst. Youre a huge v. R. Buff. Youre probably more excited than anybody i know about Virtual Reality. But bring us back down to earth. We dont know if how big the market really is. All of these headsets are different. If there is a huge market to be had, its going take time to develop. What do you see . Guest if you look at the expectations for this year, there are about 1. 4 million headsets projected to sell. A billiondollar business. Great start, but its going to take time. Its going to take time for it to become a mainstream product. Something like what the iphone did to the smartphone industry or for it to reach those skills. The fun factor needs to become much more simpler, the Processing Power needs to go up. The bandwidth issues need to be resolved. There are a lot of things that need to take place before we hit mainstream. Whats going to happen in the next couple of years is youre going to see unique angles coming from a couple of companies. Ny is pitching it to their people. Its a fairly priced product, i guess. Plan for the holiday season. It works with them, not just from a sales perspective of the headset, but to help them take market share for from xbox one. It helps sony from that perspective. If you look at facebook, its going to target it toward p. C. Gamers in the beginning and doctors initially. But the evolution of this thing, the price points coming down, thats whats going to sort of spur it. And the partnerships that they forge longer term to grow the ecosystem in general. As far as h. T. C. Is concerned, they have a great product. But again, its a little more the a little more involved, i would say. Theres a camera up front, cameras moupted on the rooftop, roof of your house. There are a lot of its rations that the Industry Needs to go through as far as the form fact factor is concerned. Emily this might sound like a strange question but do you see these headsets as Game Changing as a smartphone or is this going to be like a gaming console or the ipad . Guest in the near term its going to be more of a gaming device. And of course it will be in applications and medical education and industry. But as the industry evolves, if we look at the timeline by which our bandwidth catches up to the requirements, Processing Power catches up to the requirements, the form factor holds a lot more, its all points to 45 years down the line. For mainstream influx points. Emily im not a huge gamer. Will i buy one in five years . If so, why . Guest it will be much different, much simpler. Right now the not a smartphone where you can pick it up and do your thing. The not like that. You need a p. C. , you need to go through a lot of steps. Its not just a simple plugin and play device. Its not easy to use. Plus the killer apps, apart from games, are still developing. Video would be one of the big applications. But its all an ecosystem that needs to evolve for that to take place. So just dont look at the price points and the product, but also look at what it takes for those things to be delivered an experience that Everybody Needs and not just wants. Emily thank you. Our v. R. Expert at Bloomberg Intelligence. Thanks so much. Coming up, my exclusive interview with the new c. E. O. Of showtime on findsing the networks next major hit and how he plans to compete in a world of netflix and h. P. O. And if you like bloomberg news, check us out on the radio. You can listen on the Bloomberg Radio app, bloomberg. Com and in the u. S. On sirius x. M. More of bloomberg west next. Im Mark Crumpton and you are watching of what bloomberg west. Captured belgium today the top fugitive wanted in connection with novembers deadly terror attacks in paris. Ls neighborhood where he grew up. The operation to secure the premises started at 880 p. M. At 8 30 p. M. He was arrested at 4 40 p. M. During the house search. He was injured during the intervention. Two other suspects are also in custody and multiple explosions were heard as officers with riot shields cordoned off the area. The u. S. Is calling for a meeting of the Un Security Council to discuss north koreas latest Missile Launch. Mediumrange Ballistic Missile into the sea earlier today defying a council ban. The council imposed sanctions on north korea for a Missile Launch and Nuclear Weapons test a few weeks ago. The u. S. Also hit them with additional sanctions this week. The u. S. And philippines have agreed on five locations where American Forces will be allowed access. The tenure defense Cooperation Agreement comes as the u. S. Looks to reassert its presence in asia. The allies have been Holding Strategic talks in washington due to heightened tensions in the south china seas were the philippines is challenging chinas territorial claims. Leaders from south africas Ruling African National congress are debating whether to keep the president in power. Has been trying to contain a Corruption Scandal that threatens his presidency, the key issue is whether he left a family of wealthy industrialist and out key positions in his cabinet. President obama lays for cuba on sunday. He is scheduled to meet with cuban president rall castro and hold discussions with distance. The White House Press secretary talked about that in the press briefing today. The list of people invited to meet with the president in cuba is nonnegotiable. The white house and the president will be determining who he meets with. Surprised ife there are people on that list that the cuban government would prefer we not meet with. The president will nominate the first woman to head a major u. S. Military combatant command. If confirmed by the senate, air force general Lori Robinson will be the seventh commander to head the u. S. Northern command. She is currently the head of the pacific air force. Day,l news 24 hours a powered by error 2400 journalists in more than 150 news bureaus from around the world. From bloomberg World Headquarters in new york, im Mark Crumpton. More bloomberg west next. Cory its investor day this week it emily showtime is about to embark on its most expensive time in the man in charge is producer turned chief executive david nevin to took over from showtime executive matthew blank in january. For this weeks it russian, i traveled down to showtimes offices in los angeles for exclusive interview and started by asking about the leadership transition and how he is settling into his new role as showtimes ceo. This is the rare orderly transition in this business where its been sort of carefully planned over the course of the last two years. Matt has been the architect of it. He has been great about it. He is now the chairman. I came up through the creative side. I find the business side very motivating. To become ceo at this moment when the business is in such intense flux is really an exciting time to do it. We are now selling ourselves over the internet. There is a whole new way. We now have a direct relationship with our customers. Television has finally reached the top of the totem pole in terms of its place in the sort of cultural, you know, hierarchy. Emily is this the golden age of tv . I think so. Its an overused term but how can you say its not . Movies are no longer on a higher pedestal and television gets now the highbrow conversation, the highbrow criticism and critiquing that you could not do when it was simon and simon and matlock. Have you and matt blank done hbo. What distinguishes showtime from hbo . What justin wishes showtime from netflix . What is the shows brand . We are doing similar things. For better or for worse, the sort of rhenium highend areas were Everyone Wants to go. What distinguishes a showtime show, i wanted to be culturally relevant, homeland has things to say about americas place in the 21st century world. Even masters of sex, a. Show, has a lot to say about gender and are complicated relationship with sexuality. Cultural relevance, entertainment value, characters with some complicated adult psychology. Emily some would say youve got all of these hit shows and you have not had your major hit. Whats going to be your game of thrones . I dont think you can plan for what the big it is pretty i dont know what homeland was going to be. We are delivering consistent shows that people want to watch across the year better than anyone now. I would love to have a game of thrones emily is that your white whale . Got a lot of shows that are working so, im trying to figure out how to make each one 10 bigger than it is now. Thats what keeps me up. Emily how du view Something Like hbo . Are they your nemesis . The world is much bigger than hbo and showtime now. There isfx, netflix, amazon, there is hulu launching shows now. Amc and there is a Million People trying to get into that game. Generally, whats good for hbo is good for showtime. Emily whats showtimes biggest threat . Complicated 21st Century Media world and theres a lot of people clamoring for attention and we have to stay at the top of the list. We have to continue putting out shows that feel like they have risk to them but that are going to make people pay attention. Even within the traditional universe, we are still only in 23, 20 4 million homes in the traditional way. Of the homes in america dont have show time. Emily how disruptive has netflix been to your business . Unlimitedve seemingly amounts of money to throw towards programming. That has a challenge to compete with. They buy our program so they are a customer and the buyer programming internationally. Its a complicated relationship. Emily have you considered throwing all the episodes out there once like a do . I thought about it but i think there is great value in having the conversation sustained over the course of a couple of months. World is going to come back to a little bit more measured although different shows go out in different ways. Out,we put out twin peaks it will be fun to not just do one a week but do it in a different way, who knows . Its something i will talk about with david lynch. There is all sorts of possibilities. Out,dea of throwing it having a week of buzz and then having it die down, i dont think that makes sense for us. Emily for more of that exclusive interview, tune into studio 1. 0 this sunday at noon eastern. Do not forget, you can access all of the interviews by going to bloomberg. Com or download the studio 1. 0 podcast. I loved this episode an interview so dont miss it. 2 social networks are reportedly in a battle to gain rights to stream conventional tv facebook and twitter are eager to increase their ability to deliver Live Streaming video according to the new york post. According to anonymous sources, both companys have approached programmers about a deal for tv rights. Debutedr, Facebook Facebook live come a platform that allows you to broadcast live videos to their followers. Coming up, the ondemand shipping app announcing a Major Partnership with an ecommerce giant and we will talk to the startup ceo after the break. Plus, nasa asked not scott kelly will not hold one of his Historic Records for long. We will tell you why. Emily in this edition of out of this world, a russian soyuz rocket is on its way to the International Space station with three new crew members. One american and two russians blasted off from kazakhstan friday afternoon. They bring the total number 26 and take the place of three astronauts who returned this month which included scott tellys Yearlong Mission brought his total time and space to a record 520 days, the longest cumulative amount by an american astronaut. That record will not last long. Nasas Jeff Williams is a bore this latest launch and by the end of his six month, he will rack up a total of 500 34 days in space. World, 51 out of this years ago today, soviet cosmonaut alexi leonov ventured into the void to become the first person to go on a walk in space. Connected to the spacecraft by a cable, his landmark stroll in space lasted 12 minutes and nine seconds. Back here on earth, the shipping and logistics startup ship is partnering with ebay. They will assist ebay sellers bite sending a courier to ship impact purchased items and will waive its regular five dollar the now through june as part of a promotion. The service was tested in San Francisco, new york, and chicago in december and just expanded to allocate. I spoke to the ceo about the partnership. This is the reason that i started the company. I was a power seller back in college 12 years ago. It was the largest pain point of my business, present preventing you from scaling. I was doing it mostly myself i just learned a lot about the shipping industry. I decided to actually change it. This is something i have had my eye on from day one with the company. Emily what is the next big goal . Expansion, obviously, is important. I would love to continue this partnership with ebay. This is the first small but rather large step in that. Just continue to solve as many pain point as we can for our customers. Emily earlier in the year, you change the Business Model a bit and customers got some additional options, business customers, while people shipping bulky items had to pay more and you had to leave miami. Our users reacting to these changes . By up miami decision was really tough. Its about being financial reason risk financially responsible. While,e had been ever a the ticket option is not close to the rest of the cities. Rather than fighting it, we decided to pull out of the market. For now, where pausing the operations and once weve a better game plan, we will reenter. Some of the other changes we have made we introduced scheduling which is something that people have wanted from day one. On demand in 20 minutes is great but especially with us serving more business customers, they want to plan their day around it. You can choose our window. We will be there and you can track us on the way there and all that. The last change we did is we started charging for packaging. This is the nonebay orders we are offering packaging. This was also to become a business. When we created the Business Model initially, there was a lot of guessing. This andrned about charging for the value we are providing, while a lot of the items that come through our system are quite small and we could not charge for it, we have tvs. Of 5060 inch lcd we are good at that and have technology and processes and experts that you are packaging but it costs a lot of money. We decided to pass on some of those costs but still try to be in the range that we will be a sophisticated business doing it and hopefully our prices reflect that. Howhow well make will you make the Unit Economics sustainable and keep me as a customer . In 2016, we are marching towards profitability. Emily will you be profitable this year . We will be in our season within this quarter, we have actually decreased our cost in our cities. San francisco is more than 50 . The number of things that we talked about, there were reasons but a number of other things as well. We will continue to do that. Emily we know amazon is interested in the religious to explain his and they are working with drones and leasing 20 planes. What do you make of them getting into this business and how do they change the business . They have a lot of volume. Its no surprise. A couple of years ago when maybe ups and fedex to not actually had some of their promises to customers like amazon, its scary for a company like that. To be able to do some of the deliveries, its a small percentage of it and it makes sense for amazon from a risk perspective. Will they continue to continue to offer all the deliveries in their own fleet . Who knows . Will they expose it to other people questio . We dont know. Emily most things are now Free Shipping so it pains me to pay shipping for anything. Even amazon is recently raise the minimum price rate you can actually get Free Shipping. Does Free Shipping survived this sort of ecommerce boom . Or willhere to stay retailers eventually pull back . Its never Free Shipping and it may be free to the consumer but they have to cover that cost. They will make it elsewhere. They will make it in the margins on their products. It always costs something. Will the retailers continue to be able to try this . To compete with amazon, i think they need to to survive. Even amazon feels the pain of that and upping the price they are charging for the nonprime subscribers and things like that. Kevin that was shyp ceo evans. The heated debate over twitter has been put to rest. Jack dorsey tells the today show that the limit is too much a part of the companys identity to change it saying its staying, its a good constraint and it allows for more of the moment remedy. Coming up, we are wrapping up the actionpacked week that was straight ahead. Emily trending in todays news this photo shared by mark zuckerberg. He posted a photo of himself chocking past Tiananmen Square in beijing smog causing quite the controversy on social media. The photo had more than one or 50,000 interactions. The comments range from ridiculing him for not running with a mask to anger over showing the infamous site of 1989 violence. It could be a hiccup in his quest to better facebook relations in china. Now for our week in review where we break down the biggest stories in technology. Joining me is tim higgins from washington and back with me in San Francisco, alex webb. We were talking earlier about the hearing in particular, thats happening on tuesday. What exactly are we expecting . We expect the ruling . Its possible. It become it on a stage from tuesday onward. It could take six month or week and a half. The magistrate might you have an indication on what she is feeling and thinking and there will be evidence presented and some expert witnesses will come forward. Then we will see what the judge says at the end of it. Emily i spoke with the apple attorney earlier this week so take a listen. We are looking forward to getting our brief on. We will walk through the facts in the law and show why the government is really asking for something no federal court has ever granted. Emily do we have any indication which way the judge is leaning . We know what the judge said. Emily exactly. Its very hard to tell. We have had no guidance. Until tuesday. Its perhaps a big shock for what is essentially a regional, local judge in riverside, california dealing with this huge, potentially multinational issue for the Biggest Company in the world. Emily this is something tim has also been covering from washington. What is the word on the street there . What are you hearing from your sources . All eyes will be on the courthouse. That is the courthouse battle and then theres the court of Public Opinion which apple is trying to elevate, taking it to the halls of congress for a policy discussion and possibly some kind of solution. Emily you have also been covering the self driving car hearings on capitol hill. Interesting messages are coming to the u. S. Government from google and the technology industry. What is the take away . It was an interesting week. Kugel took the unusual step of asking congress to grant the department of transportation more authority to regulate autonomous cars, essentially elevating the fight out of california regulators had been putting had been proposing rules that google and others thought were too restrictive, trying to take this out of the state level. They are worried about a patchwork of 50 states coming up with ideas on how the future of cars should be in arguing its something that should be at the federal level. It was interesting to see. Emily they also brought the issue of china. We spoke to the head of baidu self driving car unit but the idea that competition in china needs to be watched . Absolutely, the head of google cars was telling the Senate Hearing that every way, it their team is being approached by folks from china trying to recruit them to their car development. This is not just a u. S. Effort. There are companies around the world racing to create the future of the car. We see it in germany and asia and we see it in silicon valley. Emily all right, tim higgins and alex webb, i know you will be all over this apple hearing next week. Apple aboutnd from how long this could go on . We have heard theyre are willing to take this to the Supreme Court. Are we talking years . Potentially, apple said they are preparing a case to take to the Supreme Court depending how the judgment goes. They are willing to take it all the way. Emily thank you both. It is time to find out who is having the best day ever. Today its waz. After beating out elon musk and sheryl sandberg, Steve Wozniak will be immortalized by Madame Tussauds. The museum will unveil a lifesize wax figure of Steve Wozniak saturday during his silicon valley, con keynote. Comiccon keynote. The finished wax figure will be on display next to the wax steve jobs at Madame Tussauds in San Francisco. That does it for this edition of bloomberg west. Do not miss studio 1. 0 with showtime ceo david nevin and on monday, special coverage of the road ahead for apple and were live from the companies latest product event and that is all from San Francisco. Have a great weekend. Bend me shape me, any way you want me as long as you love me, its alright bend me shape me, any way you want me. Shape the best sleep of your life. Sleep number beds with Sleepiq Technology adjust any way you want it. The bed that moves you. Only at a sleep number store. From our studios in new york city, this is charlie rose. We turn to the ongoing battle between apple and the fbi, fight over access to the phone of the San Bernadino shooter. It continues and the two sides will meet in federal court next week. Time magazine managing editor nancy gibbs and writer lev grossman sat down with tim cook. Nancy gibbs is with us and im pleased to have her here. This is the cover of the time magazine. Talking about his fight with the