Discussions of the National Liberation army. The talks raise hopes for and ended to Political Violence in the country. Global news, 24 hours a day, powered by our 2400 journalists and more than 150 news bureaus around the world. From the Bloomberg News room, i mark crumpton. Cory im cory johnson, in for emily chang, and this is bloomberg west. Microsoft makes a big new bet on Artificial Intelligence after the last ai project lead to a stream of profanity laced tweets. We will show you what Satya Nadella has in store. Foxconn stopping negotiations to acquire sharp at a discount. Through will tell you how the iphone hack has one japanese stocks soaring. But first tower lead. Microsoft opening his Developers Conference in San Francisco. Satya nadella making a big bet on Artificial Intelligence. A week after his last Artificial Intelligence effort flamed out in an embarrassing and hilarious fashion, microsoft launched a tweeting program which went from antiseptic tweets to racism and sexism hours later, but he is going for take two. We want to take that power of human language and apply it more pervasively to all the computing interface and computing interaction. To do that, though, you have to infuse to computers and computing around us intelligence. That means you have to bring forth these technologies of Artificial Intelligence and Machine Learning so that we can teach computers to learn human language, have conversational understanding, teach them about the broad context of people and places and things. Context about your preferences, your personal knowledge, so that they can really help you with your everyday tasks and life, both at work and elsewhere. Cory does microsoft have a future in ai . The glad to happy with San Francisco. You were there all day. What were you talking about . A lot of the focus is microsoft has been working on ai for a while. They duhave toplevel researchers on it, but the new focus is tai, the first example we got in the u. S. , these chat bots, that do things for you in a humanlike fashion. Microsoft wants than in commercial areas, but also to sell you things and provide customer service. They are not only going to make them themselves, what they were pitching is asking people to write bots themselves. They put out a bunch of developer tools. Had people say on this program that microsoft is quietly making a big comeback with Satya Nadella. Is microsoft very relevant . People are paying attention again, and there is a lot of interesting stuff happening. This is a company that is more to do to the more tuned in to the overall state of programming and coding, but every now and then the old microsoft comes out and that things happen. Cory interesting. From to perspective microsoft is a company that dominated technology, that flatout dominated every conversation about technology regardless of the aspect not that long ago. 10, 15 years ago. Now its in the background. What matters most is microsoft . What matters most is building a future. Steve ballmer, that is the one big hit on his legacy. It put microsoft in this on position, the pass is still haunting them. For the future, it is carving out a new market. Artificial intelligence seems to be a strong part of that; conversation is a platform. Cory that sounds thoroughly ridiculous. Of asurhink the success i say asher. Cory their we go. Thats a huge success for them, even with amazon and their backyard. But you see a lot of your clients talking about this. Absolutely. Its part of the big two. Ist microsoft hopes to do is use intelligence into that delivery of cloudbased services. Cory like a bouncing paperclip that will help us use word . [laughter] in this instance, developers can call it, the different apis Walking Around the convention center, there were all these cameras. And when you walk by, they can tell you what your emotional state is. Oh, your happy. Oh, youre sad. Youre 31, 51. They are trying to make those tools available, along with certain recommendations, so developers can incorporate them. Cory your thoughts about the cloud . I think theyre killing it. Theyre numbere two. Ppy. Were back to clic anwas based on the idea that interface like that could help people deal with microsoft word, and things like watson are trying to do it for the whole world. Work . Didnt clippy the idea of a conversational insistent wasnt assistant wasnt bad, but it did know when to shut up. The idea that microsoft is pitching is with ai in Machine Learning, these things will understand your context and will understand what you need and when you need it. Thats really the best for them. They are not the only company pitching this kind of thing. Cory yeah. To any of you use amazon echo . Your take . Is catching on for a reason. It actually seems to understand natural language. That is something Satya Nadella cory its not just that it understands you. Siri works, but i dont use it for a lot. People use siri for things like they are in the middle of driving and they need to send a text, which is ok, but its not super intelligent. Its not like order me something. Today they showed the idea youre chatting about your says do youot want me to make a recommendation on your Favorite Hotel . That is proactive intelligence. Cory is this anything more than the advancement of moores law, computational power along the line of Machine Learning . That is been talked about for 70 years, but we are finally at a point that only because of these advancements there is something going on. When you talk to people in the world of ai, they will tell you that things on deep learning, theres a new statistical approach, new models for representing knowledge, doing weird things with data. New things are happening, there are new approaches, lots of excitement. But the basic idea is still the same. Is not entirely dissimilar from what we saw with clippy. You have huge amounts of Information Available to everybody, that they can use for the open web, and on these databases to play with. Hundreds of millions of users to interact with. Cory yeah. Incredible stuff. I wish alan turning was here to see this. Thank you very much. A stock we are watching, the Worlds Largest maker of memory chips reporting its first quarterly loss since 2013. Tank,prices are in the with revenue for the Current Center resulting in a five to . 12 loss for every share. Terry gallus on how tricky negotiating worked. This is an amazing story of negotiation. Cory we have a Little Red Book we hear Little Red Book and we think communism, but now that same name has become a symbol of capitalist success. Giving a 1 billion valuation to Online Shopping sites and overseas merchants of local buyers. The funds will bankroll the Little Red Book expansion. A new deal the main assembler iphones and the First Television sets. Get an is able to reduced price in the stake of sharp. The university of michigan seen, evenas never though we talk all the time, we this is antantly, amazing story, what happened with foxconn, with sharp. Sharp had another suitor in japan that was going to make some help to keep it a japanese company. Talk about what foxconn did to seal the deal. Foxconn is pretty clever. I dont ever want to negotiate with them over anything. They came in, they made an offer that was a stronger offer than the incj deal. A typical japanese deal that involved government and who knows what else. Foxconn comes in and puts a deal on the table that is much more valuable to the company. The company, of course, takes it. Then the Company Gains the foxconn sword. Take the sword; here are some big contingent liabilities we didnt tell you about. Foxconn knew what to do. Minute,d, well, wait a we have got to rethink this. Then after the other suitor walked away, they were like, there were problems of this problem business . We arent paying that. The other suitors already gone. You clear the competition out, and then you faint as if you wont do the deal. You have them so scared that they might be stuck with their creditors. Sharp isnt in a bad financial situation; they have gone through to japanesestyle financial prop ups in the last cory hes bag. Sorry, we lost you. Yeah. Says, goshfeints and maybe we wont even do this deal. Everybody is nervous, and then they say, look, we will do it at ¥88 per share, and people breathe a sigh of relief, because foxconn scare them into thinking there might not be a deal. An importants company, not just historically, but they have put so much money into new plans for lcds, that they were really at a loss when the chinese economy slowed down, yes . Yeah. They built all these panel plans and solar panel plans. The timing couldnt be worse. But sharp is a real gem in japan. Sharp as one of the innovative japanese companies. Not be will copy and make it cheaper company. They were Technology Leaders and still are, and the brands beloved in japan. Is a toptier brand. That is a very humbly experience, a difficult experience, and a new experience, because the old japanese troika, who traditionally love each other, usually they hold together and keep japanese things japanese. This now goes to a taiwanese company. Its the first for a Major Electronics company in japan, and its a bit of a shock. Cory finally, i wonder what you think foxconns ambitions are with sharp. What do you think they want . They want to expand their margins. They are a screwdriver shop; they put together pieces of the iphones in turn them into an iphone using really cheap labor. That cheap labor is becoming more expensive; their margins are getting squeezed. They need to get into higher value things like screens that sharp is so good at. Foxconn has got to move from being low margin to highvalue, highermargin, and sharp gives them both a brand but also a product. The screens are very expensive. Give them a product to get margins they want to see. Cory interesting stuff. Eric gordon. University of michigan, thanks a lot. For that when he took a look at private holdings in Technology Last month and didnt like what it saw. The company cut the value of its marketx, zenefits down 38 . It wasnt all bad news. Others liked it more. Snapchat was marked up. U nextp, teslas most important product unveiling ever. Everything we know, coming up next. Cory thursday could be the most important day ever for tesla. They are lifting the curtain on the highly anticipated model 3. It is the everymans tesla cheaper electric car. Tom randall has a preview of the model 3 preview. M this is the big one. The car that elon musk says will take electric cars mainstream. Here is what we know. Were expecting something similar to the 70,000 model s, but with fewer bells and whistles. It should be about 20 smaller, and there is no word on whether it will have the distinctive oval brand. The model 3 will start at 35,000, but thats before government incentive, which in the u. S. Could bring it below 30,000. Thats an extremely Competitive Price for the entrylevel luxury market they will compete in. It is promising 200 miles per charge, but might give more for a larger battery. They are designing a whole new battery architecture to make it cheaper and easier to build. Elon musk predicts that in the 1015 years, on new cars will be able to drive themselves. Therefore you can expect the model 3 will probably have some autonomous driving, even if drivers have to pay extra to activate it. If you want to get your hands on a model 3, you will have to get in line. They will start taking deposits on march 31, but the first deliveries will come until the end of next year. Cory here with more about the head to. Had to bloomberg. Were joined by ramy inocencio. Ramy today we saw a rally, call it a yellen twoday dove rally. Nasdaq all, dow, and opt on the order of about half a percent. The highest since the end of last year or early this year. Fundss are no pricing in a 50 chance of a hike, no earlier than this coming december. A lot of change happening with what creators are envisioning. Hop into my bloomberg. I want to show you the performance of the nasdaq, so far year to date, and i want to direct your attention to this green box here. The nasdaq for this month is up by 6. 83 . We are definitely pairing the losses we saw from the cross equities, down 7. 8 in january. The last time we had a good Market Performance for the nasdaq was back in october, 2015. Five months since we have seen a good rally. Lets take a look at whats happening with some individual stocks right now. First off to the nasdaqs top two. 1. 8 ,rising, up by nearly rallying to a threemonth high after an upgrade. They are also increasing their 12 month price target by 10. They say sales growth is up 18 in the past year. Afteroft up by 6 10 of 1 the microsoft build conference with the ceo. There is an interesting split that is happening; elsewhere shares and amazon shares are saying, with amazon that Home Services rose every month by about 20 since last year. This includes Services Like home gutter cleaning, tv wall mounting, and repairs. On the flipside, facebook and netflix are going the other way. 5 . Ebook is down by 1. 2 they did hit a record high on tuesday so we could be seeing some profit taking their, but netflix is down by nearly 2 , basically getting some heat from the scc, saying that because netflix has admitted it is throttling streaming speeds, its filings should be reexamined. Before i send it back to you, i want to head over to asia, to japan and the land of the rising sun, because the companies Sun Corporation is in focus. In the past two days it has risen by 12 , and we are talking about this because they are at the center of whats happening with the apple and fbi. Suncorp owns the israeli data that has beenpany implicated in unlocking the iphone of the San Bernardino terrorist. Sun corp . S its the owner of something called pachinko. Its what you can see on the screen its the equivalent of a pinball machine in japan, but they can gamble and earn money. Thats what sun corp is all about. Thats my shares have been rallying over the past few weeks. Cory we will dig into that deeper. Thank you very much. Show me movies with explosions. Show me more like this. Show me previously watched. Whats recommended for me. X1 makes it easy to find what blows you away. Call or go onliand switch to x1. Only with xfinity. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Mark lets begin with a check of your bloomberg first word news. Republican president ial frontrunner donald trump is walking back his statement that there would, quote, have to be some form of punishment for women who have abortions if the procedure were outlawed in the u. S. The comment came during the taping of a town hall meeting set to air on msnbc tonight. In a written statement emailed to bloomberg politics, mr. Trump writes, quote, like ronald reagan, i am prolife with exceptions, which i have outlined numerous times. End quote. Mr. Trup trails texas senator ted cruz by 10 points in wisconsin. Thats according to a new Marquette Law School poll. Cruz leads trump 40 to 30 . John case you can has 21 kasich has 21 . Bernie sanders has a slight edge over hillary clinton, 49 to 45 . The food and Drug Administration is approving an experimental blood test to screen for zika virus. U. S. Territories with active zika infections, primarily puerto rico, will be able to resume collecting and screening their own blood. The Brussels Airport will remain closed to passenger flights until at least tomorrow. Its been out of operation since last weeks terrorist attacks. Once the airport does reopen, i eye arriving passengers will be september to a hang ar to collect their bags. Hangar to collect their ags. Its just after 6 30 p. M. Wednesday here in new york. 10 30 thursday morning in sydney, where im joined by bloombergs paul allen. Good morning. Paul good morning. Were expecting a mostly positive day across the asia pacific. Following a good lead from wall street. Expected on the nikkei and the asx. New zealand currently the only market open. Running for 90 minutes now, barely in positive territory. But well be closely watching chinese banking stocks in hong kong when they open, three banks reporting very weak Profit Growth yesterday. We have icbc reporting 42 billion. The weakest growth in a decade. China construction net income up just. 1 . Bank of china up. 7 . This is going to see a weakening dividend payout as well. All to do with bad loans rising and a slowing economy. Bank of china president saying the era of doubledigit Profit Growth has ended. A brief word on steel out of indiana. They may be looking to sell their u. K. Assets bought a decade ago for 10 billion. The book value now worth close to zero. Thats, again, thanks to cheap chinese steel exports. The u. K. Government saying it may look to intervene to save some jobs in the British Steel industry. Thats just some of what were watching around the asia pacific today. Im paul allen for bloomberg trs tv. Streaming music business, teaser, the most popular music stream hg service in france, thats the beginning of their market ambitions. Company hoped to fuel international growth. Those plans were scotched. We sat down with their c. E. O. And asked about the current prospects for public offering. We decided athe time that the market wasnt there. Wasnt right. Some conditions were complicated. And we always have other options. We just finalized our funding privately. We raised 100 million euros. And we keep all the options open at this stage, no rush. Reporter when you talk about the options not being there, is it because its difficult to get funding on the markets, because markets are volatile, or you saw something uglier . Guest i think there were two issues at that time, a, the markets started to get very volatile, obviously. Tech Companies Like us always need good market support in the first place. Second thing, there was just a few months after the apple launch, the impact coming there, and some concerns about other groups which didnt make the environment easy. The good news was we had options. Reporter how do you make yourself different to others . Youre kind of the incumbent. Youre the new guy on the block. Guest were the new guy on the block but the big nest france, for example. So we have been around for a while. I think the three areas, all of us of course are competing on the music side. We focus a lot on the personalized experience, based on algorithm. We have a product called flow which is unique in the industry. Second point is that we are the first one that decided to go beyond music. We do audio books, we do sport events, we do talk shows, for example. So everything reporter there you go. You can put the pulse on. Weve signed a deal, people. This is breaking news on the pulse on bloomberg. Give me a sense of the u. S. Market. This is the biggest, its the toughest to crack. I know youre very present in france and a lot of investors say maybe youre a little too close to orange. How do you make sure that you crack the u. S. Market . Is it pricing . Is it offering Something Different . Do you need to get some of the bands and the music acts on board more . Guest no, i think the u. S. Market really needs, in our case at least, a good partnership. We built a decent Model Partnership like orange and other companies. Once the u. S. Opens markets up for those kind of deals on the tell could he side, i think were going to be there because were one of the big threes in the world anyhow. We have a Successful Partnership with at t for contradict. Cricket. We are observing the market, we just havent found the right timing to go in there. Reporter do you have to spend more on marketing . Guest the u. S. , theres a good example of other companies which left the market. With a few hundred million, you dont do the trick. So either you commit it very strongly, and if you commit it very strongly, you have to put a lot of Financial Resources behind it. And its a question of options. Reporter how . I dont understand. Is it social media . Everybody knows spotify in the u. S. If you want to tap into the market share, what kind of narrative do you have to play out for consumers . Guest its a mix of social media, its a mix of tradition alameda, a mix of p. R. And communication. Its all about complaining to people what you get, what is different, but to be fair, i think the Biggest Issue for all streaming companies is how do you access the consumer, what are the best Sales Channels and telco partnerships are a very good solution. Reporter a lot of music acts have been wanting a say in what music goes into what service. Some of your competitors have given into that. Will you . Guest yeah. We are in the constant debate with people as well. I think we explain very good to the artists and the Music Industry what the values are. The big debate has been always on the free side. On the free side, whats going to happen there. Which is fair. Overall i think we all agree more on the opportunity is huge. Were at the beginning of a big, big market. Already now more than 50 of the revenue for universal are digital revenues. You can see the potential. Reporter emerging markets, are there any markets, any countries, that are willing to pay for how they listen to music . Guest were the leader in the emerging markets. We have africa and latin america. We have some asian markets. Good example, colombia, for example, was a very small market for the Music Industry. Now its a doubledigit Million Dollar market because of our Market Leader position there. You can talk about south africa. Other places. Those markets are going to leap frog. People jump into streaming and the opportunity there. Reporter what needs to happen . Infrastructure . Guest yeah. Infrastructure. Its the mobile economy. Its mobile phones as a tool, independent payment infrastructure. Reporter five, 10 years away or shorter . Guest i think its shorter. You can see the kind of top level of customers take Music Services now. You can see latin america, it goes very fast. Africa, it may take a bit longer. Reporter is there potential latin america, we talk about brazil, we talked about the politics of brazil. Are these things that you look at . I dont know how you do your pricing plans. Guest we adjust the price a, we pay in local currency. And we pay the royalties in local currency. To the labels. B, of course, we adjust pricing to the purchase power of the individual markets. And you have to understand, in most of those places, in the emefrpbling markets, there was never big revenues anyhow for the Music Industry. Every new revenue you generate is very positive. Reporter whats your biggest headache . Distribution . Funding . Or currency . You get back all the money in euros. Guest two things. To explain to people what superior product we have and the streaming industry. And the second part is, which is normal, prescription got ath the beginning, you have to do a lot of up front investment in brand and distribution. Those are the two issues you have to focus on. Cory deezer c. E. O. Talking to bloomberg in london. Meanwhile, spotify said to have raised 1 billion in debt, according to people fal with familiar with the matter. That debt is a loan that converts into stock, convertible shares that turn in certain scenarios to class a shares. Ic this has some intoxicate terms. Were monitoring that story from london. Reporter theres a lot of i. P. O. Noise coming from the music streaming world today. With deezer chief executive telling the French Business may revisit the share sell. It seems spotify has also started the clock on its own i. P. O. By raising funds that get more costly for the business if it doesnt sell shares in a year. The sweden based streaming company with presence in about 60 countries has raised 1 billion in convertible debt. With investors such as capital. Perhaps using the instrument rather than a normal fundraising to ensure it doesnt have to lower its previous valuation of 8. 5 billion. Betting it will be worth more in a years time. Now, the reported that spotify has signed up to giving investors in the debt a higher coupon than the current 5 and the juicier discount in the share sale if they have to wait longer than 12 months for an i. P. O. Its a pretty big bet by spotify. As it tackles the challenge from apple music, and has to pay high fees to the music labels. But spotify is already winning the race versus the competition with 30 million paying subscribers and about 100 million who listen free with advertising. Now, its a race to the i. P. O. Cory that was bloomberg in london. Coming up, technology that promises to make Virtual Reality nausea a symptom of the past. And, shares of a little known japanese pin ball machine maker are soaring after reports it may be behind the f. B. I. Hack of an iphone. That incredible story next. Cory apple computer, Major League Baseball and apple have struck a deal that puts ipads in the dugout for the coming season. Those will be strippeddown ipads sms. No texting the official score. But players and coaches will have access to statistics, videos, scouting reports, all during games via special mlb dugout app. Partnership and the baseballs decadeold ban on the use of computers during games. Apple says its hit a milestone in supply chain transparency. 100 of its suppliers are audited for the use of conflict minute rals and subject to a thirdparty review. Sticking with apple, all reports point to israels cell bright as the company used by the f. B. I. To unlock an iphone used by the San Bernardino gunman. Their Parent Company saw shares soar 40 since the f. B. I. Announced a third party was indeed able to hack that phone. But they may be known better as a maker of pin balllike gambling games. Amazing story. I did some work on this company today. Sort of amazed that theyve got an important enough majority of the business, but an important part of the business making these pin ball machines. Guest yeah. Sun corps sounds like the kind of company we should know about. Its the name that seems omni present. But its completely sort of off the radar. If you look it up, it has a rudimentary website. Its like a holding company. It has a number of Different Things underneath. One of which is this israeli firm. Cory small company. Colored in the same suit. Guest sorry. Just glad youre not wearing the pink thing from the other day. Cory this is an interesting company. Maybe we should think of it as a company that made slot machines and stuff like that. But interesting that theyre in this business. This thing, though, not a huge secret in the intelligence community. F. B. I. s had a contract with them for a long time. Guest yeah. The f. B. I. Does contract with a lot of different people. I think when i was looking into this first sort of last week, people were saying there are half a dozen, maybe 10 companies who could do this and a number of those work with the f. B. I. In some capacity. Actually in local bureau, there might be a Little Office here in San Francisco as far as we know which could be two device who were super expert in one aspect of technology and they might help the f. B. I. Local lowelly. Cory s its not just software, its a machine, right . Guest yeah. Eople talk about a cellebrite. Cory its a machine, the companys based in israel. The Parent Company is based in japan. Its been around for a while. Guest yeah. It was bought by the japanese in 1999. But as far as i understand, it remains largely independent. H. Q. , c. E. O. , israeli, they do have offices over here in the u. S. I think its largely a sales operation. Most of the r d is done out of israel. Cory one of the stories said theres 500 employees in a suburb of tel aviv. Theres a lot of cybersecurity work that happens out of israel. Guest yeah. Its one of the reasons i think bloomberg themselves says a lot of Tech Innovation happening in that part of the world. Cory any notion heres the question. If the f. B. I. s had a contract with these guys for a long time, the f. B. I. Saying the inability to get this, or let me rephrase it, the f. B. I. Said they needed apple to get into this phone and they didnt need apple to get into this phone. But one wonders, when they realized they didnt need apple to get into the phone, and if the court case had testify itself was what some say it seemed to be, an excuse to get a legal ruling, to get into lots of iphones. Guest i think thats one of the things the legal experts have been talking about. If it seems as though the f. B. I. Could have done this for a lightning time, then it means that judges are going to be very sir come spectacular Going Forward when they look at these rulings and they will perhapses have a second look and say to Law Enforcement agencies, you sure you cant do this . Who do you have on your books, who are you using, go away and have another try and come back to me. Cory we dont know if the founders of this company came out of the famous unit 8200 out of the israeli army that leads to a lot of companies doing cybersecurity. But it suggests that israel once again has some of the strongest ability to hack and get information when they want information. Guest if you think about it, going back six years now, you think about the bug which infested a huge number of factories around the world and that was people suspect came out of some sort of combination of israel and the u. S. And it targeted iranians. Cory its been reported that the u. S. And israel combined in that. Certainly a focus in both defensive and offensive tools. Guest yeah. Clearly a huge amount of ability there. People still say that the greatest concentration of mines in this area is the n. S. A. And so thats another question people ask. If the f. B. I. Cant do it, surely the n. S. A. Can. Great sports coat. Good story. Great story as well. We appreciate it. One thing were geeking out about today, potential cure for Virtual Reality induced nausea. Mayo clinic has been working on integrated hardware and software meant to synchronize what users see and feel wlile wearing a v. R. Het sed. Within a 10th of a second. It causes motion sickness that people can feel when using v. R. The mayo clinic says its licensed this technology to an l. A. Based Entertainment Company but none of the hardware makers have chosen to use this technology. Key vote in front of the s. E. C. Could make it a lot harder for internet providers to track your every move. Were going to ask the experts what this means next. Cory story weve been following, pandora may sell the south dakota Radio Station it bought last year to get lower music royalty rates. A regulatory filing, its reevaluating whether to remain a broadcaster. Earlier this week, pandora announced that c. E. O. And cofounder im sorry, the cofounder, once the c. E. O. , will be c. E. O. Again as it struggles to fend off rivals such as spotify and even apple. Turning now to federal communications commission. Looking at two key measures that will impact every american on the internet. On thursday the s. E. C. Votes on privacy rules meant to give consumers control over their personal information. As the i. S. P. s collect information on them had they use the internet. For example, with web which websites you visit and how long youve been on them. They could also have a big impact on revenue. But not to some of the other biggest players in the internet. Also before the s. E. C. , perhaps the most complex spectrum auction in u. S. History. A twoway auction that could net the government up to 40 billion. Brad barker in new york. Love me some f. C. C. Stories. And this privacy one seems like its a big deal. Guest its a completely big deal. Thanks for having me. The f. C. C. Have been awful busy essentially this privacy rule tomorrow, had they vote on it, will allow consumers like you and i to opt out of being tracked by the cable and mobile Broadband Companies and them having share that information with advertisers. Cory talk to me about this. Basically, with the latest in technology, the i. S. P. s can see a lot more about what youre doing and do something with it. They can start to develop the kind of profiles that other firms, like, lets say facebook, and google, already have about users. Except that these are the guys who dont just have some content. They own the pipes. Guest they own the pipes. This telecom data business that is supposed to grow from 24 billion to 80 billion over the know, ve years, and, you to take this business away from e telecom companies, just as their Wireless Companies may be matures, would not be a good thing for them. And the internet companies, when you look at Companies Like google, who gets 90 of their revenue from advertising, and facebook, who gets 95 of their revenue from advertising, theyll be able to continue to do this. Cory what does this mean look at the m a activity, though, right . You have comcast acquiring nbc universe and all of the websites that go with that. What does it mean for their ability to use those websites like other websites . What does it mean for verizon which has acquired a. O. L. And a lot of the media business, including ad businesses that function from the cookies of their users, whats 2 going to mean for those companies and the properties theyve acquired to build up their business . Guest thats a great question. Verizon has acquired a. O. L. And millennial media. They acquired them to help them create datadriven tracking platforms and if you and i can opt out of this program, you know, this is not going to help verizon. And also, Something Else to think about, verizons been mentioned as a possible buyer of yahoo . Currently right now, yahoo can collect user data freely, but if i. S. P. Were to buy them, you know, that would change, of course. Cory does it mean that they would have to spin these things off . Does it mean that google d and and facebook and yahoo get a competitive advantage against a. O. L. , against a. O. L. s ad serving business, against even some of the Nbc Universal online assets . Guest absolutely. Theyd have a competitive advantage. Something to keep in mind here. This rule that theyre going to vote on tomorrow, would take six to eight months to get finished. If they were to do it. And Net Neutrality decision, you know, according to one of my colleagues, is supposed to be handed down likely in the next month. And depending on how that plays out, if that doesnt go well for the f. C. C. , theres likelihood this rule would not proceed further. Cory so, really quickly, whats our expectation to vote . Re do we know how the commissioners are leaning . Guest sure. Tom will win this vote 32. It will go along party lines. Cory very interesting. Ill be watching this one because i think its a really big deal. Well watch what this means for verizon and at t and others. Good stuff. Thank you very much. Guest thanks. Cory that does it for this edition of bloomberg west. Tomorrow, full conversation of tesla ahead of the highly coverage of tesla ahead of the highly important modsle three unveiling. Well look at all the bells and whistles and discuss whether or not we can believe it or not. Thats it from bloomberg west here from San Francisco. Charlie jack lew is here, the u. S. Secretary of treasury. A role since february 2013. He was previously president obamas chief of staff. And prior to that, he was a director of the office of management and budget. A role that he also played in president clintons cabinet. On wednesday he will deliver a speech on the impact of u. S. Sanctions policy. He will deliver that speech at the International Peace in washington. Coordinated sanctions led by the u. S. Were integral to reaching the agreement with iran to suspend their nuclear