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mallorca way after someone saw an armed man beating another person. reporter: what a chaotic day here in the marina district. an armed suspect was shot by police. he is hospitalized in serious condition. it began in front of this atm at the bank of america. a fight between two people that quickly escalated. >> heard somebody from the second floor window yelling for help. i called the police. >> he heard the commotion from his apartment near this bank of america atm on pierce street. he was shocked to see a man give a gun, beating a man holding a backpack. >> he told the guy to drop the bag and he had a gun in the hand and pistol whiffed the guy in the head. and then the gun went off. >> several rounds were fired. it's not known if the man with the backpack was hit. he quickly left in a waiting car. but the armed suspect took off on foot, and police officers cornered him behind a bush, ordering him to come out. >> at some point in time the suspect fled the bush, and as he was proceeding northbound, turned the gun on the officers, several officers discharged their weapons. the suspect was hit at least one time. reporter: the suspect was taken to the hospital. all of this unfolding on a busy sunday in a neighborhood where violent crime is almost unheard of. >> crazy. this is a great neighborhood. it's a wonderful neighborhood. reporter: back live here at chestnut and pierce where the police investigate continues. no police officers were injured today. the man with the backpack, who was pistol whipped was located a short time ago outside of san francisco. he is currently being interviewed by police. it's not clear what his role in this whole chaotic situation today may have been. we're live in san francisco. abc7 news. police in oakland are also investigating a shooting that happened just after 3:00 near the coliseum b.a.r.t. station parking lot. a man suffered a gunshot wound and was taken to the hospital. it happened during the oakland raiders game nearby but the victim was not attending the game. >> vallejo police are searching for a gunman who shot into a group of young adults changing a tire, killing one and wounding more. police responsibilitied to multiple people shot lastneath at 11:00. investigators say for carloads of young adults from south san francisco withgoing to involvement one car got a flat tire and the whole group pulled to the side. a neighbor warned they were in a bad area and then heard shooting. >> a lot of gunshots. you can't count them, how fast and how many. and that's pretty sad. >> a 19-year-old man died at the scene. police say the gunmen fired from a white suv with tinted windows. >> a memorial is underway in santa rosa today for a teenager, andy lopez, who was shot and killed tuesday afternoon while walking with an air rifle resembling an ak-47. the deputy says he told lopez to drop the weapon but the teen turned and pointed the air rifle at him. the deputy opened fire and hit the teen seven times. the funeral is tomorrow. a danville family is holding a mecklenberg -- holding a memorial right now for two children who died in a car accident a decade ago. they were riding a scooter and a bicycle on a city sidewalk when they were hit and killed by 45-year-old in 2003. she was under the influence of alcohol and prescription drugs. the memorial is underway at danville's sycamore elementary school. >> two more assist evidence living facilities in oakland and modesto have had their licenses suspended, both owned by the same person who owns the castro valley facility. 14 disabled patients were found cared for by just three people. we spoke by phone with the owner's attorney. he says the owner is severely ill and bed-ridden and disputes the allegations patients were abandoned. details are slowly emerging in a story out of new york city, where family of five was found stabbed to death inside a brooklyn apartment. the man who implicated himself in the killing is a 25-year-old relative. named don chen, who recently immigrated from china. the new york city police responded to the apartment in brooklyn and discovered the victims. a 37-year-old woman and her four children, ranging in age from nine to just one, with severe stab wounds. they were all rushed to the hospital but none survived. police recovered a butcher knife at the scene. there are reports today that national security agency may have been monitoring he cell phone of the german chancellor for ten years. she complained about the tapping of her phone. this is more of the fallout by documents released bidded a ward snowden. one u.s. politician doesn't see a problem. >> the reality is the nsa has saved thousands of lives, not just in the united states but also in france and germany and throughout europe. and the french are someone to talk. the fact is they have had spying operations against the united states, both the government and industry. >> president obama told merkel the u.s. is not and will not tap her phone, but he did not say it never happened. meanwhile, southern california congressman darryl issa had tough words today over problems with the federal healthcare.gov web site. issa called for the resignation of health and human services secretary kathleen sebelius if she is not able to get the site running smoothly soon. he delivered the comments on "face the nation" this morning. california's livestock population. why thieves are going after cattle. a first of its kind safety feature coming soon to a major san francisco intersection notorious for accidents. >> i'm meteorologist leigh glaser. temperatures down as much as ten degrees today. the clouds are moving in. we may see showers tomorrow. snow in the sierra. an intersection in san francisco is about to get a first of its kind camera to keep pedestrians and cyclist safe. the san francisco municipal transportation agency says next month a no-right-turn photo enforcement system will be activated at market street and octavia boulevard. until now cameras were only used for red-light violations. the intersection has been the site of several bicycle collisions because of eastbound drivers making illegal right turns trying to get on highway 101. up bee comment to us city slickers, cattle theft is on the rise in california and nationwide. the sacramento bee reports more than 1300 head of cattle were reported stolen or missing in california last year. that's a 22% increase from before the recession. the chief of the state residents bureau of livestock says it's likely because of the rise in cattle prizes. a cow can sell for $1,000. >> tomorrow, a state senate subcommittee will talk about how to improve safety communication between pg&e and city officials regarding pipelines. the news comes after a pipeline was shut down. san carlos officials first learned from the media, not pg&e. that's why documents were used to wrongly declare the pipeline safe. the line was shut down but has since been allowed to be reconnected at much lower pressure. >> singer chris brown in trouble with the law again. what he is accused of doing and saying before he was arrested. and how is your trick-or-treating forecast shaping up? leigh glaser has that after the break. now a look at what is ahead on abc's world news at 5: >> coming up, in miami tonight, the giant storm, the winter storm warnings in the west, as you know, that system marching across the country. we remember an american legend and his music, and red sox nation, did you see the call? what we learned about you gotta reel it up now,buddy. it.creel it up.t up, [father] reel it up,you got him on there.bring him in. is that a bass? [boy] yeah,i got a big bass. [father]bring it up.keep reeling.keep reeling.c'mon,eru where is he? whoa! you caught that all by yourself?oy] y! [boy] yeah! [father]how old are you to catch that? [boy]three! [father]you're three years old? show me how many fingers that is. and why can you move the tv out here? the wireless receiver. i got that when i switched to u-verse. but why? because it's so much better than cable. it's got more hd channels, more dvr space. yeah, but i mean, how did you know? i researched. no, i-i told you. no. yeah! no. the importan and i got you this visor. you made a visor! yes! that i'll never wear. ohh. [ male announcer ] get u-verse tv for just $19 a month for two years with qualifying bundles. rethink possible. hose who've been deniedndles. ewelcome to covered california. now, you can no longer be denied coverage because of a pre-existing condition. enroll today at coveredca.com. singer chris brown and one of his bodyguards were arrested this morning for felony assault. after an altercation outside a washington, dc hotel. reports say brown was at the w hotel for a party when he struck a man who tried to get in on a picture brown was taking with some fans. the web site tmz says brown used a gay slur against the victim before hitting him. the victim was taken to the hospital. brown is on probation for a felony domestic violence conviction involving his former girlfriend rihanna. >> lake merritt is making a comebag and we have the proof. a river otter was spotted running around. the first otter spotted on the lake in decades. this year the city began re-opening a tunnel connecting the estuary and the lake. bacteria levels and trash floating in the lake has dropped dramatically. students from the oakland unified school district went to the raiders game today compliments of the team. part of the raiders' first and goal kid is program. the team gives away 800 game tickets, transportation and meals for each regular season home game. it gives kid an opportunity to experience something many can't afford. >> get to hang out with friends, have some snacks, watch the game, get to do something. the students went to oracle arena for a special presentation. then over to the coliseum to watch the silver and black in action. it was chilly for the game today, and there's some moisture in the air, too. leigh glaser has the forecast. >> a mist and drizzle, and the clouds are out there. then with this stub been, all-day long, on the increase. and here's where the rain is coming down, along the northeastern corner of our state. a little lightning you see there just to the south of mt. shasta, and we're looking at all kinds of were the advisories in the sierra nevada. winter weather advisory begins tonight through tomorrow, and they could see anywhere from four to eight inches of snow above the 5500-foot level, and we have a high wind warning for the area as well, and it will be with you through monday afternoon, with those winds, specially through the higher passes there, to 75 miles-per-hour. and on the nevada side, we had a red-flag warning as well, and that begins tonight, too. winds around here, it is howling out there, novato, 35. 24, sfo, and check out concord, winds another of the west, gusting to 31 miles-per-hour. it is going to be a very windy night tonight. and tomorrow. san francisco right now, 55. 60 in san jose. check out mt. tam cam. you can see all of the wind up there and the mist and drizzle. temperatures in the north bay in the 50s. novato, 54. east bay, concord, 56. sutro tower cam showing you the low overcast. a cold are day tomorrow, chance of linger showers in the morning and the snow will be in the sierra can all because of this area of low pressure. we talked about it last night. just diving south, and here is a look at the forecast animation. 8:00 tonight, should continue to move towards the spine of the sierra. this is 1:00 a.m. and that's when we could possibly see a few light showers, maybe just mist and drizzle near the bay area, tomorrow, monday morning commute, the wind will be with us. much colder and the low will continue to move south and then it starts to move towards the east tuesday, and by that time we should start to see a little bit more sunshine. still going to be a cold, breezy day on tuesday. we'll warm up wednesday. lows tonight bass of the cloud cover, upper 40s to near 50 degrees, and the winds will pick up. the higher speeds around the higher terrain, gusts close 35 manipulated. the highs for monday. b-r-r-r, it's going to be cold. 67, san francisco, 61 tomorrow? antioch, and there's the chance of a few lying showers tomorrow as well. by wednesday, we'll start to warm things up, into the 70s. halloween will be dry and warmer. the next chance of showers, next sunday. >> that is good news. shu is here with sports, and you made a prediction last night. >> i did say the raiders and niners would win today. and they did just that. the nineers against the jaguars in wembley stadium, and it was in wembley stadium, and it was blowout. we love this kitchen! what's next? great! do you have measurements? yeah, i paced it off. it's about twenty by twelve of these. so, we can measure, plan and install it for you. yea, let's do that! ikea. professional kitchen services at a low price. love this kitchen! what's next? great! do you have measurements? yeah, i paced it off. it's about twenty by twelve of these. so, we can measure, plan and install it for you. yea, let's do that! ikea. professional kitchen services at a low price. >> 49ers spent the weekend london getting to know each other, and then just hammering the jaguars from the fifth straight win and second on the road. more than 83,000 fans at wembley stadium. first drive of the game, frank gore, this t.d., 19 yards. nice run. the second opening drive touchdown for the niners this season. vernon davis, touchdown catch in all but two games this year. wide open, one td for cap. colin ran for two touchdowns, fir time in a regular season game. 49ers scored on the first four possessions of the first half. 28-3 at the break. jacksonville never really in the game. 49ers win their fifth straight, go into the bye week 6- , >> a huge stage, wembley has great tradition and status as a venue, and it was amazing experience for our players and me personally. >> meanwhile, raiders 0-10, hosting the steelers. peyton had not shat down before terrelle pryor, right up the gut. 93 yards. the 7-0 raiders just like that. mcfadden, 4 carries. runs it in. ben roethlisberger sacked five times. he is tough to bring down. gets it to sanders for the touchdown. 2 -10 oakland. 1:35 left. roethlisberger gets away from the pressure, appears to be picked off for the third time moss, who made the pick, called for holing. and then sanders goes one way, cuts back and scores, steelers down three. then the onside. kick. it's kicked right to the raiders. those missed feel goals the difference. raiders hang on to win 21-18 your final. former bay area quarterback in kansas city, jason campbell, 292 yards, three t.d.s for the brown. 13-7 kansas city. but he was bested by alex smith. he threw two touchdowns. chiefs are now 8-0, 23-17 the final. to the ice. sharks are back to canada beating montreal last night, hosting ottawa today. they went right to work. rookie, hurdle, hasn't scored in six games. eighth of the year, 1-0 san jose. sharks, three first-period goals couture, denied on the breakaway. shepherd, off the far post. his first of the year, sharks with the 6-2 victory. >> a at 6:00 are more on the niner in london and what finnish detroit. still ahead, homemade derby cars hit the everyone deserves a better car. and now, during the "sign then drive" sales event, we believe you're closer to yours than ever. like the turbocharged tiguan the midsize passat or the 34 highway mpg jetta. and every new 2014 volkswagen comes with no-charge scheduled maintenance... ...all for practically just your signature. the "sign then drive" sales event is back. ...and it's never been easier to get a new volkswagen. get zero due at signing, zero down, zero deposit, and zero first month's payment on any new 2014 volkswagen. hurry, this offer ends october 31st. ot neces is this flu shot necessary? it keeps you healthy during flu season. but does it hurt? nah. plus you get a really sweet bandaid! anything else i should know? here's a thought, try scoring more points on the other team. okay. even a warrior can get sick. kaiser permanente reminds you to get your flu shot this season. >> coming up at 6:00, the family of the map accused of shooting several officerser is suspicious about what police say caused the shooting. plus, the important developmental step this bay area baby took this week, and how you can help name her. join us at 6:00. a group of youngsters went for a ride in san francisco's sunset district today. [cheering] >> that little fire engine. this was the race course for a soap box derby. the derby featured a variety of vehicles. this car first raced in 1970. the event aimed to raise money to build a play structure that looks like a fighter jet at larson park. kids played on retired navy jets in the park from the 1950s to the 1990s. all the kids had fun and had their little helmets on. >> that does it for us at 5:00. thank you for joining us. we'll be back at 6:00. world news is next. welcome to "world news." tonight from miami, inside the launch of america's newest cable network. who are they and who are they after? all the news here tonight, the extreme weather, the hail, the flooding, the forecast, the giant storm system heading from one coast right to the other this week ahead. remembering a music legend tonight, the life of lou reed as we take a walk on the wild side. ♪ take a walk on the wild side ♪ >> tonight here we look back. and the fairground horror, the operator under arrest after a ride spins out of control. who tampered with it? police say more arrests coming. and safe, the controversial call and what we've learned here about the umpire behind it.
New-yorkUnited-statesMiamiFloridaCanadaNevadaSierra-nevadaCaliforniaGermanyWembleyBrentUnited-kingdom i'm erik schatzker. >> i'm scarlet fu in for stephanie ruhle. airlines,al, malaysia -- >> we will try to make you forget about some of that stuff. in the meantime, newsfeed stories, and around the world. consumer spending rose slightly in february. it again 0.3%. oft is the median forecast economists we polled at bloomberg. americans are slowly shaking off the effects of the coldest winter in four years. household spending on services including utilities rose 0.2% in the month. cbs's billboard business has gone public and will start trading any minute now. raising $560 million. it will still be 83% owned by cbs corporate but eventually cbs shareholders will own all. chris christie says he is still baffled by decisions his formal -- former aides made in the george washington bridge scandal. the new jersey governor made the comment in an interview with abc news anchor diane sawyer. >> when things were first reported i said, this can't possibly be true, because who would do something like that? sometimes people do inexplicably stupid things. so that is what makes it so hard, as the guy in charge. none of it made any sense to me. to some extent, still does not. >> the interview coming on the same day a report that christie commission found he had no knowledge of the bridge closures. the final call for obama care. americans have until monday to sign up for health care insurance. though the deadline is a little soft, let's say. the big question -- are enough healthy people, the so-called young invincibles signing up? we have the president and ceo of independence blue cross of philadelphia which has been very active in seeking out the uninsured. how successful have you been finding the so-called young invincibles? >> good morning. as aendence blue cross blue cross plan, we have been committed to reform for the last four years, since the law was enacted. we realized in order to make this work, not only did we have to reach out to the subsidy eligible population, the older population, but we needed to get the young and traditionally healthier population into the mix. it's working. over the last month, we have seen a downturn in our average -- of enrollees to well over and well over a year. we used twitter and facebook and we're have got the people were young people are. we used what we called the independents express, a semi truck that folds out into the apple store. youtubeonline contests, contests where people talk about the importance of enrolling and we have seen a significant number of young people coming to us as the clock moves toward march 21 -- march 31. >> you have five planes offer. silver is right in the middle. where are the young invincibles signing up? silver as well? >> the majority are going for the silver plan. it seems to work in terms of theays and access to various networks, physicians and other specialties. that is where they are tending to fall. overall we have enrollees of 180,000 in our pennsylvania market, our new jersey market. and we have seen a trend downward. the last two weeks we've seen about 20,000 young folks sign up. >> for 2000 young people. to what do you attribute that? to the things you were making mention on -- your us, for example, willing out, trying to broadcast the message, or do you attribute and the some of it to the quirky, let's call it, campaign tactics used by the obama administration like putting the president on with zach --between two ferns? >> i think it is a combination of both. number one, yes the administration made an effort, the insurance industry has made an effort to be to the young invincibles where they are. it is all working. i think it is really using social media in ways that we have not done in the past. --rybody predict it government, the president, and the industry predicted that young people would sign up later than the rest. it is about educating them in the way that they hear it and the way they understand the importance of enrolling. >> i have seen the latest figures from the kaiser family foundation poll, nonpartisan gives us a sense of how people feel about the affordable care act. saidl 50% of people polled that they still have absolutely no plans whatsoever to enroll in obamacare. what is it going to mean for companies like yours which meet all of these enrollees to make it financially feasible? ? >> let's take a step back. the risk pool has to be right. , we made alan decision not to be political in implementation but out on the front line and enrolling people. we firmly believe that if we want to people are -- older people at community centers and churches, middle-aged folks at ballgames and other community events him and the young invincibles through social media, that we would attract them. it remains to be seen how it will work out financially. our first and foremost goal was to enroll as many people as we could. it is the law of the land. we have a responsibility to do that. so far, so good. >> so far 110,000 people have signed up for obamacare through you guys. what about the plans you had to drop? who are they and what kind of plans did you have to drop? realizede started, we that the first goal was to go out and educate people. we spent the first few months through the independent six arrests and social media and other means explaining what the new law means. the next couple of months we reached out to our existing customers who had plans that were not compliant with the affordable care act. working with the administration and state government here in pennsylvania, state government in new jersey, recalls walked them to compliant plans. all in all, the vast majority, with the exception of a few thousand, we were able to move to new complaint plans. we had a great deal of success. i think it has been a mixed bag across the country but we were very pleased we were able to get to those individuals, get to their families and help them move across the compliant plans. takew long is it going to before you and independence blue cross know whether the affordable care act is good is this? -- good business? >> and comes down to what you reference earlier, the case mix. we need to have enough of the younger, healthier individuals in the program to make it work. we believe that the first year, our goal is to enroll folks. we certainly try to price it at a level that was, a, affordable but, be, make it good from a business perspective. as we move forward we will have a sense of what we need to do and exactly how good it is from a business and financial perspective. >> what is your early read? as i said consistently it has been focusing on enrolling people. >> i understand that -- but if you look at -- at a segmentation of people you were able to sign up. you talk about the elderly, the middle-aged, the young invincibles. you look at the folks you do have signed up, the 180,000 between pennsylvania and new jersey, does a look at though that segmentation will lend itself to good business or is this going to be less profitable for independence blue cross than your previous business? >> you have to first take a step back and realize we are only talking about five percent to six percent of our overall business. going into that we had very conservative profit margins built into our plans. i would say what we have seen to date is it is just about where we thought it was, maybe trending a little younger than we thought. we did not plan to make a lot of money on this business. i think we will end up exactly where we would end -- thought we would end up. point, early indications are the demographics are about what we thought they would be. $246 a month. what if you don't sign up more young invincibles? what is the possible effect of policy premiums next year? >> i think it definitely will have an impact on premiums if the young people stay away. coming ine and more in the final days. but it will impact the pricing. here's the interesting thing, though. we are already working on our 2015 pricing and related data that we will have to put the prices in place by january, february, and march data. again, it is going to be a bit .f a crapshoot going into 2015 but less people who are young who sign up, that certainly impacts the risk pool. -- heard about the three r's risk carter, reinsurance or other means were somebody who gets a bad riskpool, other plants will compensate them for it or government will compensate. so what still remains to be seen how this whole thing will play out. but you are right, young people have to sign up to ultimately make this program work. >> and unofficially they have until march 31 to do it. thank you so much. president and ceo of independence blue cross of philadelphia. >> shares of blackberry arising. investors cheering an earnings report that showed a smaller than expected loss and revenue was also smaller than expected. what should you do take away? at hudsonrincipal square research and he has a sell rating on black berry -- blackberry with a five dollar price target. >> it looks like cost-cutting was a big beneficiary to blackberry's bottom line even with the loss. how much is left? >> they said consistently they expect to be cash flow positive by the fourth quarter. thanhile the loss was less expected on the net line, cash flow from operations was .egative $553 million they are burning through a substantial amount of cash. they have really net cash of $1.5 billion and they burned it million in the quarter. gross margins were better in part because they sold so few handsets. right now they are losing money when they sell a handset. when they sell few of them ironically it is better for the net line. only 1.3 million blackberry from a quarter of there are over 250 million smartphones sold every quarter. down 70% -- 78% year over year. great,ost-cutting sounds but you can only cause cut so much when your sales are falling 78% year-over-year. 43% yearevenue is down over year. it just seems like there is too much headwind in front of them. they have bit of a honeymoon with john chen who moved fast but now they are talking about different handsets. the core blackberry fan has always loved their handset. they did not need a bunch of different models. sort of a handset spaghetti against the wall strategy. promised ushn chen he was not going to do -- that blackberry would narrow the range of handsets? yeah, he was going to bring that the keyboard but ultimately would try to build an enterprise business that was not consumer handset focus? right. is exactly to be honest, i can't keep track of the number of handsets they have been talking about since the congress in barcelona last month. going to keep the company alive, if they can, is the overall platform. and consumers going to rely on blackberry for their go to mobile strategy? i will point to a big hole in the platform which is tablets. most consumers today have both. i think yesterday's announcement of office coming to the ipad helps underscore that. , the predecessor, said tablets were a fad. with the ipad -- ensuring it will be a productivity tool percentages and it came in and blackberry does not have an offering. they are just losing subscribers. that is were all the prophets are coming from. and then they have a strategy, which sounds good on paper, being the software service provider to enterprise -- similar to what we see with good technology and mobile iron and these services. in the past, blackberry has never gotten a lot of money from enterprise. they get it from the carrier sprint the contractor going away. -- being case of cautious or bearish about blackberry but what is it about john chen that has investors at least for now convinced they can make -- he can make a difference? >> when you have a new ceo, there is almost always -- >> i think we just lost dan. maybe he was talking on a blackberry. >> i will tell you this, i use a blackberry but the phone works just line. but unfortunately dan must have been on an iphone. >> or maybe his landline went out. daniel ernst from hudson square research. be speakingng will to the blackberry ceo. something you do not want to miss. if you are optimistic about blackberry maybe john chen will give you more reason to be a true believer. >> coming up, walmart is suing visa for allegedly fixing of transaction fees. what is this lawsuit boil down to? for profits. you heard all the horror stories from the high seas. and the cruise industry persuade you to come back? >> or take a first cruise. >> you are watching "market bloomberg television, streaming on your smart phone and tablet, all over digital -- bloomberg.com, apple tv, we are everywhere. ♪ >> a big take a legal development. walmart is suing visa for allegedly conspiring with thanks to fix transaction fees hear it and walmart wants $5 billion or more in damages. julie hyman is following the story for us. what does this boil down to? >> an old argument between the companies. various credit card companies have been basically fighting with retailers for a long time. there was a lawsuit if that happened that was settled in the fall involving some of the same allegations but walmart opted out of that because it wanted the opportunity to sue on its own, which it is now doing. essentially it says, yes, there is price fixing of the fees. visa essentially has recommended rates and that it recommends for all types of retailers in different categories. and as a sort of the fee setting mechanism, that is the target of this. iswhat walmart is saying there isn't a real competition between the credit card payment networks. >> i was talking to an analyst on how the discount swipe fee, where the money go and how does a breakdown? >> we just put it up. let's bring it back. >> you have the interchange fee, the bulk of it. this is the fee that is at the heart of the argument here. that fee, by the way, goes back to the banks. kept by visa and mastercard but visa is the target of this because it sets the rates. of aonly about a 10th percent goes to visa or mastercard. inquirerthe merchant -- acquirer, the processing company, it's the remainder. that is the nitty-gritty. overall fee is around 2% of that is the average. walmart negotiates with ease. it is negotiate between the two parties. because of the volume, the amount of transactions that go through walmart, it is likely that it is able to negotiate somewhat of a lower fee. is tied to how much the fact that walmart has been trying to do financial services on its own as well? >> and not just on its own but also with other retailers. a form something called the mcx exchange, basically an attempt to form some sort of mobile payment network on its own. the other mobile payment networks that are out there. basically walmart, and other retailers, they don't necessarily like to be beholden to the credit card companies in this fashion. so that is where it goes back to. and of course, there was a fight over debit cards as well and you got the cap on debit card fees. a long and been contentious relationship and this is the latest in that. how successful this litigation will be and whether it will end up being settled. visa and very least, mastercard has to pay everyone else to go away. is interesting is the original settlement went from billionlion to $5.5 because of this opted out, including the minnesota twins who brought their own sword. -- brought their own suit. >> coming back -- innovation in the cruise industry. celebrity chefs, rock climbing walls. cruisers as this industry attempt to move past the safety concerns. ♪ approaching 26 minutes past the hour. time for bloomberg "market makers" and we will give you a snapshot of major indices. the dow trading up 125 points. income increased 0.3% as well. consumer confidence coming in a little shyer of what analysts were anticipating but ending the quarter on a little bit of a high note. outdoorsention of cbs moving higher in their trading debut. the other forgotten ipo of the week. >> the billboard business owner i still 83% owned by cbs. we will be back in two minutes. ♪ live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. >> this is "market makers." schatzker. >> i'm scarlet fu in for stephanie ruhle. >> tgif indeed. .> it has been long i had to do radio and you were recovering from last week. let's move on and look ahead to more enjoyable times. for those going on vacation, the cruise industry is gaining customers in spite of several incidents last year. 2013.m how is royal caribbean making sure those travelers are sticking with them? us adam goldstein is with right now. the holy grail for the cruise line industry is the first time her. those who have never taken a cruise before and want to try. can you give a breakdown of how many customers are first-time travelers versus returnees? >> on average on our cruises, about 30% of the guests have never been on the cruise. the other 70% may have been with us before are not that they have been on a cruise. >> do they spend more money? is the idiot to bring them in for a lifetime? >> the lifetime value of the customer. bringing more into the category. bringing more into the cruise proposition at a young age. >> three retirement. >> has the cruise industry found itself having to spend more re the first-time cruiser because of the highly fires,zed incidents like illnesses aboard ships -- which we all read about and hopefully never find ourselves in the he costa -- or t concordia that capsized? easiesthas not been the of times for the various reasons you mention. one thing we have going for us is the customers we have, they know how much care we take in everything we do. are toow how devoted we always advancing the cause on safety and security and the environment. and so, would probably have to work a little bit harder to reassure potential -- >> what is involved? what's continuing to get the message out of the extraordinary safety track record and the incidents that occurred are extremely rare. >> it is tough. think about it -- if you were in the airline industry, the airline industry does not want to advertise saying, we are safe , the chances of crashing are very, very low. you don't want to have to find yourself doing the same thing with cruising. >> that is why for the most part we stick to the message of what a great vacation it is. it has the highest satisfaction rate of almost anything you can think of. but when people ask us directly, we need to respond. and we have a track record that says we are able to respond. >> one of the steps you have taken, late last year you and hiredrrival carnival retired military to oversee see operations. how much do you work together to address safety issues? >> and the last two years we worked together more as an industry on safety and security issues than the previous 40 put together. the industry association -- about 10 of them piecemeal to one global organization and within that organization there has been tremendous cooperation the last couple of years. >> what specific changes have you made to improve safety, especially with the bigger ships coming online question mark some say they might be too big to manage. orwe have come out with 10 12 safety policies within the industry the last 24 months. most either have been or will be adopted by the international maritime organization. we have been able to take the lead on a lot of safety matters. a lot that has to do with the drills that guess have to undergo, what information is to be provided. there has been a passenger bill of rights industry adopted to make sure they are treated well under all circumstances. we have been able to not only pay more attention to safety but to guest comfort when there are incidents. many different policies have moved us forward. >> how difficult is it to others take -- undertake brand-new initiatives? one of the things that stand out to me from your financials is how predictable your cost are. it is incredible. they are like exactly the same every quarter and the big variable seems to be revenue to determine how much money you make and the bottom line. even the fact investors are so used to that, how do you embark on expenses -- expensive new initiatives? want to true investors understand and believe we will continue to manage our costs well but i think most people do realize in this business the big variable is revenue generation. we need to figure out ways to invest in our brands, to keep the products fresh, contemporary, and vibrant. and in order to invest in that, revitalize the ships with newer features and bring out exciting , we have to be very, very careful about managing our general and administrative costs and it is about making sure the investments are things guest will be willing to pay for their a thirdeeship is smaller than your biggest ships, the oasis. are you making a conscious shift away from the super large ships? >> i love the fact it is referred to as only. [laughter] of the seas comes into service in november and it will be the third-largest cruise ship ever constructed and people are looking at her as a small ship. she has incredible features. the north star, the mechanical arm that takes you 300 feet above the water and you can circle around. a skydiving simulator experience. these are things attracting people into the category. they are amazed these things can be on the water. they are active. we are showing people like with our culinary reveal that the choices are yours. we don't tell you an e-mail -- what to do. there are 18 restaurants in the cruises are not longer than 12 nights. restaurant with genealogy are and get a meal cooked by him. >> maybe not personally by him but his italian restaurant is one week announced and a new gastropod by michael short. and we have wonderland. >> i read a little bit about wonderland, and what i read left more questions than answers in my mind. >> that is ok. it is supposed to blur the lines between reality and your perceptions. that is what the food and beverage people told me to say. [laughter] restaurant.ty funky we were given samples of the other day, there is sort of like ice cream thing that if you clamp down on it you can breathe smoke out of your nose. like a dragon. >> there we go. thank you so much, adam goldstein, the ceo of royal caribbean international. >> coming up, the great advertising ideal. we will speak to the ceo of cbs outdoor. brand-new stock that starts trading and it is higher this morning. ♪ outdoor is making a splash on its first day of trading. the outdoor advertising company just spun off from cbs opened trading about half an hour ago and the shares are silently appeared with me from the new york stock exchange is the ceo is this a ceo jeremy male. i guess we know you congratulations. i want to talk most importantly about the future of cbs outdoor. starting with the name. what are you going to rename it? >> good morning. we haven't made a decision on the rebranding get. we will be part of cbs. 80% owned until probably september october and then we will be looking to rebrand. when we make the decision, you will be the first to know. that you are a quiet sigh independent company, what can cbs outdoor do that it was not able to do house within cbs? cbs outdoors has been a great business as part of cbs for many years. but cbs has had a content strategy and to that extent we have been somewhat not core. i think it will re-energize the team. having management right from the top and focused on outdoor media will be good. i think we will be happier having all caps allocation decisions in our hands rather than having to chase capital around a bit within corporate. is considered a media company and you said you wanted to use money raised from the ipo to buy smaller u.s. billboard companies. it was a sense what direction you are moving in as you try to consolidate this fragmented market? the u.s.e 20% of market. it just here in this city you will have seen our signs everywhere already today. on the subway, buses, billboard, metro north. we have a great business but -- 35% still fragmented. dmae it makes sense, top 25 is where we want to focus. sure, we will look at where we can add some weight where it makes strategic sense. what distinguishes cbs outdoor from its principal competitors, including a company used to work more -- work for, and clear channel outdoor. what makes you different? are bothompanies particularly international. we are very much focused on an america strategy. we have a great business in canada, mexico, a small piece in south america. i think when you look at ourselves, we have this great billboard business. a very dominant in the top 25 dma's. and we have a great transit business. we operate parallel in this market rather than absolutely contrary to them. >> i know you are looking to convert more of your locations, traditional billboard into more profitable electronic signs. give us an idea how much spending it will involve. capitalcommend total expenditures will be around $60 million to $70 million a year. to put some other kind of metric, we have around 400 digital billboards now. driving about 10% of the revenues. we anticipate adding around 100 boards each year. the great thing about digital is you could be so much more creative. adds right across the u.s. based upon who just scored in a football game. a lot different from outdoor media in the past where someone was going out with a ladder and a bucket. way for outdoor advertising to capitalize, if you will, on the dynamism of social media? >> i think there is. i think the key piece for outdoor media is our audience is still growing. most media audiences are declining or fragmenting. i think if you think about the declining fragmented consumer, the fact you can be connected while out of the home, it is growing our audience. secondly, with the smart device, you will soon be in direct thing with our media either by swipe download. by click to actually we sometimes think as our medium as being a glue to the virtual world, if you like. >> and the virtual world, you mentioned the vices. what about partnerships with technology companies and those who make the wearable devices? for instance, the next generation virtual reality glasses? >> we have sort of done experimentation with the virtual reality. it is interesting. i can see that as being certainly an avenue we could take in the future. technology moves so fast in our industry. i think we have to be a little bit careful who you anchor yourselves to, so from that point of view we like to keep pretty flexible so that we move with what is out there at the time. >> jeremy, thank you for joining us on "market makers." the ceo of cbs outdoor. the writ -- the stock raise the $560 million. >> coming up, everybody seems to share or rent their music and stream it but they don't really buy it anymore. or pirated, too. how do you rank all the music when everyone is sharing it? coming up next. ♪ withllboard is teaming up twitter. they announced a partnership to create real-time music charts that will rank songs by how much buzz they are generating on twitter. the man he hind the deal is here, the copresident of the entertainment group of guggenheim media, owner of billboard. thank you for being here. how does it work? >> we are not going to reveal it to the public until the beginning of may. so, we can't tell you exactly how it works. of the business announcement. what it will do -- and is the measure of all things music, and twitter is the king kong of conversation. what we wanted to do with the partnership is figure out a way to organize around that. we are creating an algorithm. we want it to be based on chatter surrounding music. we were looking at ways to do a real-time chart for some time. all of the charts are time stamped, wednesday to wednesday. we wanted to come to market with something that wasn't real-time and the only partner that we thought to do it with with twitter. both twitter and billboard are ad supported project -- products. there are certainly a lot of opportunity around sponsorship. we think down the road there is opportunity around data. what we want to let the consumers first embraced the product. as far as music discovery and a battleground -- if you look at katy perry, 52 million twitter followers. when she releases an album they goes crazy on twitter. i believe they -- are called kitty cats. like the monsters, the kitty cats. be a battleground for them to rank it in real time. we think that data will be valuable down the road. initially, there are a lot of brands that want their messaging around the product. currentare the billboard charts are not capturing and how different the think the twitter charts were look -- will look from now? >> we are not cap -- capturing everything real-time. generally a week -- exactly, right. this would capture literally, if you wanted to drop an album today and you are miley cyrus annual of a conversation between you and your fans as you are dropping a song or a full album, you can actually have that and we can track it right then and there. songs puten have two out and once and see which 1 am i going to release to radio, what will i do my first video on, and have the armies -- >> it is the industry. >> the industry as well as consumers. we also think this is a huge opportunity for music discovery. because if there is something bubbling up. if you are a kid who lives in kansas city but you are a huge e dm fan of something is going on in miami, miami music week, and you maya huge edm fan, not know what is hot and happening right then and there but twitter can give the access to it. it can also be a huge opportunity for music discovery. ordo they demand the top 100 do they just want to know what their friends and peer groups are listening to? >> i think it is both. certainly what you're peer groups are listening to matters. but what we found is when the numbers get large enough, the average becomes the average. that is always the case. if you were to say i want to take all of yankee stadium and track what they are listening to, it will be a hot 100. fans, just because -- wanted the numbers become large enough, it always tends to go to the average. what we find, our hot 100 which is sort of our franchise chart, the top 100 songs, the traffic to that online is growing. off of that online are grown. you want to know what your friends are listening to but it is hard to organize in large numbers. you can say, what are the two or three songs by friends are listening to right now but you cannot go deep and you cannot say, what is the 97th song they're listening to right now. but billboard gives them the opportunity. do you keep artists and labels from gaming the system? twitter, things like this seem --ht for search in jim search engine optimization pin-high are a bunch of people in china to tweet about your new song or album it all of a sudden you rise on the top of the billboard twitter chart. best atn, coca-cola is marketing its product, more people will drink coca-cola. to gameit is difficult --like i said, and large numbers, is difficult to gain. katy perry has 52 million fans for a reason. about the always been true intention. so you can game but only on a certain level. me and i don't have talent as a musician -- >> don't sell yourself short. >> listen, lady gaga will be me on this chart 10 times out of 10 and they even -- and i even know the algorithm. >> joe -- we get the details beginning of may and i am happy to go back on and give you guys a demonstration and we will try to game it together and see if lady got back and beat us. >> in the span of two hours. i give so much. it is approaching 56 minutes past the hour and that means it is time for bloomberg to go on the markets. let's take a look at the broad stock indexes right now. consumerve some spending and income dated this morning that showed gains of with whatine economists were looking for. smp up 17 points and the dow industrials adding to its advance. >> can you believe one of the biggest movers of the day is microsoft? excel for theveil ipad -- >> office for the ipad. see an officeple for the ipad an extension of the cloud strategy that the new ceo has pretty much state the company's fortunes on. >> this is as much a referendum on how satya nadella did in his debut than anything else. >> the man with the cashmere hoodie. somebody challenge me on twitter to wear a cashmere hoodie. you think i should do it? >> next monday, erik schatzker in a cashmere hoodie. we have to go shopping. >> in the next hour, you will hear from the ceo of blackberry, john chen. the company just recorded a smaller loss than predicted. ♪ >> this is "market makers." >> taking on the tea party. big business wants republicans to push issues like immigration and tax reform. more than half of americans say it is time to move beyond the debate on obamacare. will the gop listen? you are going to hear from a member of the house republican leadership, live. >> ceo john chen of blackberry is cutting costs, revenue in the fourth quarter still declined. how the company plans to return to profitability by 2016. chineseands of rich citizens are getting visas to move to the united states. the catch -- they have to promise to start businesses and create jobs. it is a friday morning. i am erik schatzker. >> and i am scarlet will, in for stephanie ruhle. the most the afternoon. , but we are getting ahead of ourselves. >> we need to talk about business. a mixed bag for black hairy. the company lost less money than analysts expected. one reason the stock is rising. anchor emilyt chang is in san francisco, following the story. what are the highlights beyond the top line and the bottom line? >> the revenue number is a big ouch. sales sinking below a billion dollars since 2011. losses were less than expected, and shares rallied 20%. that is since four months ago. investors are liking what they are hearing. don chen is inspiring. he has real turnaround experience. he got in there and started making hard choices right away. he signed a distribution or production deal with foxconn. he began laying out about a third of the star. could bringl estate in as much as $500 million. that would significantly improve the tax position. they also got a big tax refund from the canadian government. why isn't he revising his targets more aggressively? he says they will be profitable by 2016. he is very much stabilizing the ship, what can he get revenue growing again? it is going to be very tough to do. the blackberry share of the global smartphone market has slipped below one percent. can you believe that? if you look at hardware sales, people are not buying the new blackberries. they are buying the old blackberries with the classic keyboards and the old favorite buttons. john chen is bringing back some of those features. but in terms of hardware, the story is not looking good. evolverying to pivot and this into a software and services company, vocus more on businesses and government and it is on consumers and hardware. weat the detroit auto show, saw impressive software from blackberry. ford is putting black area software in its cars, getting rid of microsoft. i know you will be talking with ceo john jim. any word on how important a role that will play? >> john chen is betting on cars, and they have a decent foothold in the car market. software -- actually partners with apple on the car front. like very helps apple software work on the dashboard. it is android that is a big competitor to black area. microsoft as well. cars as asees platform of the future. he has an interesting vision for the future of computing in general. he sees devices fading away. there'll be sensors in our clothes, cars, and homes. we will not necessarily need to carry a device. that is why cars are so important to him. he big question is, why won't blackberry get edged out in cars the same as smartphones? i will talk to john chen about that in our interview, coming up. >> you and the bloomberg west team -- what are they saying about library? what could they say that would help them move past their skepticism? of technk a lot companies are not using blackberry. president obama is testing android. they have used by kerry for a long time. snowden, nsa surveillance issues -- that has been good news for blackberry. first,g about security john chen is trying to sell that security story. now, it is more of a software and services play. , in 30 minutes she will be speaking live with blackberry ceo john chen. the latest sign that the broader economy may be able to wake up from a winter nap. michael mccue has been looking into the state of the consumer. when the eventually wake up, are we going to have a lot of energy, or post-nap lethargy? >> the consumer confidence numbers that have been coming out in the past week suggest that consumers are hanging in there. they do not really like where we are at the moment, but they do feel better about where we are going. they areem is what spending on in recent months does not give you a clue as to whether they will continue to spend. rise, but itending did not happen at department stores. it did not happen outlook sharia retailers. it did happen for utility companies. we saw a lot more money going into the kind of spending we see when it turns really cold, on heat and services. today's number really rising, compared with durable goods spending, which fell. >> what does that say about the months to come? >> the biggest issue here is, do we have the money to spend and the will to spend? he will we do not know about. wages and salaries are rising a little bit. we have seenon incomes rise is obamacare. there have been medicaid transfers that are pushing up personal income numbers. those numbers are not as reliable as they might be. is, all of theng major banks are marking down their gdp forecasts to the low ones right now. they do not know. wey are anticipating -- heard charlie evans tell betty liu we would see a quick rebound in the second quarter. what we will not know that until the middle of the year. we will not get that data until july. >> there may be a few months where we do not know what we are operating with. know the central bank has been trying to stimulate a wealth effect through its easing money. trading near record highs. shouldn't that trickle down and help? crexendo's what you would hope. we have seen a little bit of it with people who own stocks individually -- the wealthier individuals. market returns, dividends, have been going up. we look at the wealth effect through the dividend and interest payments. but home equity extraction has been falling. people have not been taking as much out of their houses, even though home prices have been going up. is the average person going to spend? that is a dilemma for fed officials. that is why you have dissension. the economy could still need the stimulus. the average person is not going to be able to spend. >> we do not want consumers to be using their homes like piggy banks. >> we do not want to reach the levels we did before, though we are still saying home equity extraction decline. if people do not feel they can get something out of their houses, that is a reason they do not want to spend. economics editor, giving us the state of the consumer at the end of the first quarter. still one more business day of the first order. purdy much, you get a picture of what is going on. >> from obamacare to immigration. we are going to be talking with republican representative cathy mcmorris rodgers. she gave the republican response to the state of the union. you will see her right here. it's the congresswoman from washington. it is time to play the yearbook game. he is a real estate mogul. he graduated from high school in illinois way back in 1959. >> i think i know who this is. >> highland park high school, involved in real estate. tweet us your guesses. ♪ >> this is "market makers." until january, you may not have rogers, congresswoman but she catapulted onto the national stage with a well-received response to the state of the union address. as the number for house republican, she is one of the most powerful women in washington. we welcome congresswoman mcmorris rodgers. let us start with the subject of the moment. it remains the subject of the moment until at least march 30 1 -- obamacare. as you know, the most recent kaiser family foundation poll shows that a majority of americans are tired of hearing and whatmacare, legislators like you to focus on other issues. will you? going to remain focused on getting health care right. it is too important of an issue. we need to continue this debate over, how do we ensure that people have access to quality and affordable health care? the concerns over obamacare continue. no one wants to go back to the way things were. but there is a better way or work, and it is up to the republicans to be showing that way forward, and holding the president accountable for the implementation. >> what is the way forward? >> a law that would bring back decision-making to individuals, so that you as an individual, as a patient, as a consumer, and your family, have control over your health care decisions, not a one-size-fits-all, government-centered approach to health care. this is the federal government saying they know better how to make your decisions. some of the most personal decisions you'll ever have, related to health care. better than you. you will see us moving forward thatal time to help people are being negatively impacted right now for the health care law, but also a bigger proposal. no one to make sure that those who have pre-existing conditions get coverage. >> that sounds reasonable. at the same time, individuals can choose the health care plan they want to set up -- sign up for. there are different levels. how would the republican proposal differ, pragmatically, and in detail, from what we have right now? marketplace, the exchanges -- it still is determined by washington, d.c., by the federal government. i think what you will see from us is an expansion of allowing health saving accounts, allowing people to go outside of state boundaries, so there will be more options available, so it is not an individual being limited by what the federal government says you need. if you are not going to have children, you do not have to be paying for maternity care, for example. you can actually go in there and find a health care plan that would fit your needs or your family needs. >> i would like to go back to the first question, which is oft even if -- not even 50% the republicans polled want to talk about obamacare. why does the party continued to make this the signature issue? or are so many other things that matter to americans and to our audience, to business, like immigration and tax reform. >> we are leading on those issues. >> well, no. the house is not doing anything about either. >> the house has put forward a tax reform proposal. ways and means put together a specific bill on tax reform, to address what is too costly, too complicated, the tax code in america. it is one of the best things we can do for economic growth. xd you support the tax reform proposal? >> we are getting that input right now. the ways and means committee is having hearings. we are going to continue this debate over what is the best way forward. that is an important part of the process, rather than being an obamacare approach, a small group that figured it out and rammed through congress. appropriate the steps. obamacare is also a huge impact on our economy. 2.5 million jobs are going to be lost. and the continued impact, because of the uncertainty, is also part of the reason our economy continues to struggle. >> in terms of other issues the republican party can focus on, one question eric wrote up was this idea of, what other issues will you be addressing that matter to businesses? for so long, many people associated businesses with the republican party, but that seems to have fallen apart a little bit. there is no longer that connection. >> it is the republican i continued to ask the question, where are the jobs? >> but what about solutions? 150e have passed over different jobs bills in the house. we are moving forward on immigration, on immigration goals,les and specific to both secure the border as well as visa reform and a guestworker program. that is important to our economic security and our national security. you see the republicans putting forward solutions to move this country forward and improve everyone's life. this is another aspect of it. the best antipoverty program is a job. we need more jobs in this country. what about the long-term unemployed? we have more long-term unemployed, the lowest workforce participation rate, since 1978. we need more jobs. we need to be focusing on the skills and education that people need, so they can fill the jobs that are open. that is another big issue, the skills gap. we passed the skills act to address this. these leading on all of issues. >> many of the most innovative companies in america will tell you the best way to create jobs is through immigration reform, yet there has been nothing but in action from the house. why? >> we are acting on immigration reform. >> when was the last lu passed on immigration reform? >> five bills have asked out of the judiciary committee. all of the separate aspects of immigration reform need to be addressed. starting with border security, interior enforcement. american were to ask business, i guarantee you border security would not be the top of the list. >> it is part of immigration reform. tookcongress, the house the lead on the high skills visa bill that passed the house and did not go anywhere in the senate. we have been taking action on immigration issues. >> in terms of the future of the republican party, people wonder whether the american people are as divided as congress. rootdo you think is the cause of all the dysfunction? not havesanship will left. >> i think what i would point to -- i would point to the way that obamacare was rammed through the house four years ago. >> what about before obamacare? >> it has made it worse. democrats said, this is the bill, this is the way we are going to do it. it was very divisive. the way that this bill continued to be implemented, that you have the president unilaterally deciding how the law is going to be implemented -- he unilaterally decides to delay who gets exemptions, what the deadlines are going to be. >> americans do not think obamacare and health care is the main issue. >> it still is a large issue in our lives. and there are still a lot of concerns over this health care law. even the deadline coming up for youh 31, which is the date had to enroll -- he is delaying back, unilaterally. as ais not his role president, and it undermines representative government. and i thinkrtunate, that as republicans and democrats, we need to be aware that we need to be working together. george would point out w. bush did the same with a prescription medicare plan. how is one different from the other? the dysfunction remains. >> president bush did not unilaterally decide how that was going to be implemented. underminedbama representative government. as president of the united states, you do not get to decide how laws are implemented, or change the law on your own. both on the employer mandate, the individual mandate, the exemptions he has offered, he is doing that outside of congress. in america, we have three branches of government, and it is the legislative branch that writes the laws on behalf of the people. we need to come back and he needs to be respecting representative government. >> he definitely is acting outside the wishes of, at the very least, a lower house of congress. what does he not have that prerogative? >> it is not his prerogative to decide to change the law unilaterally. >> is that to say it is illegal? >> i do believe that it is. our choice is to go to court. court cases right now, because that is the balance of power. we believe in three branches of government and the balance of power. that comes through court action. >> it could be your choice to go to court. how would you pursue an action like that? >> you have to have standing in court. but that is part of the challenge right now. do hear this concern regularly, as i am traveling the country. people see a president that is deciding, himself, what the laws are going to be, and how they are going to be implement it. >> if the administration or the white house were to be sued, and that is what we are talking about by going to court -- a lawsuit over the extension of deadlines for the affordable care act, who would file the suit? who would seek standing in court? >> we have worked on some legislation called the enforce a law act, i would give the house or senate standing in court when there is an example. quickly house would sue the president? >> the executive french. -- branch. >> is this going to happen? america, foundation of we have three branches of government. the balance of power that results in holds the different branches accountable. right now, we have the executive branch and the president that is acting unilaterally. that undermines fundamentally who we are as americans. we have passed the enforce the law act. we passed a bill that would require the president to notify congress when he is not doing what the law actually says. >> let us say republicans win back control of the senate. what are your legislative priorities going to be? >> our priority is going to continue to forward those legislative priorities that are going to grow our economy, get people back to work. tax reform. we have the highest corporate tax rate right now in the world. >> there is bipartisan agreement on tax reform. there are lots of democrats who like what was put forward. why can't we put tax reform before november? >> that would be great. >> who is holding it up? speaker boehner laughed off the tax reform proposal. i think the quote was "ha ha ha ha ha." this is a great opportunity. you want to see tax reform. >> we are moving forward on hearings in the house. we are working through the process, to make sure that we can be ready. we have a new chairman in the senate, senator baucus, ambassador to china. reform, health care reform, a better way forward on health care. it is impacting our economy. that is impacting every person in the country. a geisha are individuals and families have control over health care decisions, and he sure employers have some certainty. that would be of the top of our list. >> do you think we could see a republican in the white house without immigration reform? >> we are laying the foundation now. we have to get through the 2014 election first. >> foundations will be laid after the 2014 elections? >> i am still hopeful we will get it done this year. >> pleasure to have you here. congresswoman cathy mcmorris rodgers. fourth ranking republican in the house of representatives. a delight to have her with us today. >> i have to go wrapup radio. i am going to leave you here. we have a lot coming up, including a conversation with john chen. >> cheered investors with a smaller loss than anticipated. what it is a long road ahead for john chen. emily chang has some tough questions for the man. it is friday, the day we play the yearbook came. have a look. whoal estate mogul graduated from high school in illinois, way back in 1959. and wee your guesses, will be back in a couple of minutes. ♪ >> this is "market makers," with erik schatzker and stephanie ruhle. morning in neway york city. i am erik schatzker. stephanie ruhle is out today, but you will see her back on monday. it is time for top tech and media headlines. he willosoft ceo says hold nothing back in the quest to get company programs on all devices. satya nadella's comments came as microsoft rolled out software for the ipad, topping the charts in the ipad store today. mike asaph's goal is to get office on every gadget, even if it reduces sales of other products in the process. bloomberg is expanding into asia. is an effort, due to demand from customers all over the world. a three day trial of october in hong kong starts today. steve cohen has increased the state from zynga. this is according to regulatory filings. e valued at about $173 million. blackberry lost less money than analysts expected last quarter. the company is predicting a return to profitability. possibly not until 2016. more on blackberry's results, and the company's future -- charge.ang, the man in >> the ceo of five. joining us right now. ship.ghted the you stabilize the ship a quarter earlier than even you said you want. why not set more aggressive targets for profitability and cash flow? >> obviously, we could see it, but it is important that we take it a step at a time. it is a long journey back. we can make progress along the way. we were showing some good progress upfront. >> shares are up 20% since he took over. how confident are you that you can turn blackberry around, compared to when you started four months ago? >> i do better every day. the results show that. all the indicators are doing well. cash is doing much better. inventories are doing much better, in terms of managing them. we are losing less money. cash positions are good. i feel very good about our chances, going forward. >> how is morality doing? >> that is probably one of the better stories. i think in the last four months we had to go through a lot of ups and downs. we had to do some difficult things. we definitely had a tail end of all that journey. we are looking for the growth, for the possibility, and for the engagement. inside the company. meeting,d a town hall and things are starting to gel. still got work to do, but people are feeling better. fore laid out key areas growth in software and services. what about hardware? we know like perry shares in the global smartphone market dropped below one percent. how can you change that number? >> i do not know where you got below 1%. the numbers keep bouncing around everywhere. we still have quite a healthy business. sold over 3 million handsets in the last quarter. if you multiply that on an annualized rate, that is about 12-15,000,000 handsets. bigs not a humongous wood number, but not a small number either. we have a relationship with foxconn. that was going to push lower end phones in the emerging market. we also are designing really high-end phones here in waterloo , and many different places around the world. i truly expect those to do well, especially in the enterprise space. we will come back. >> i was looking at q4 numbers from idc. what about the white house? there are reports that have been testing android. the president has been a longtime blackberry user. how much are you lobbying them? >> i do not lobby the white house. make sure they know our roadmap, understand where we are going, in terms of boosting our security and productivity profiles, and the technology i cannot all stop comment on the white house testing any other devices. this is obviously their choices. the white house would want to know everything there is to know out there. different types of variations. i respect that. i still believe that blackberry is the choice. a couple of days ago, we announced that we want some sort of occasion to run on the dod network. we are the first one who has that. i am comfortable with our positioning in the government. >> what about becoming a google android for mobile business users, but only software and services, and getting rid of the hardware completely? wouldn't that be more profitable? >> we are an end-to-end solution. i think we have to see how the market develops. it is important for us to provide all components. we are not only on the handset side and the server side -- we are also in the messaging side. we also have our own locks, which makes us the most available network. we have the market share of the embedded car world. there is a lot of good technology. it is really an end-to-end solution set. a pathway to other devices -- that remains to be seen. we have some uniqueness in our handset that a customer >>. >> you mentioned bbm. lots of stuff going on in the messaging space. what do you see as the future? d.c. this competing in banking chat rooms? why wasn't bbm whatsapp? something -- there is . lot of security we are creating more hard-hitting issues. hand-in-hand, and align with our server strategy. -- give usmake us differentiation. among all the social messaging systems out there, we do have 85 .illion that is active registration. that number will continue to grow. not long ago, we put it on the windows mobile devices, as well as new devices. they embedded that in multiple different countries. there is a lot of momentum on building more registration. i need to tie that into the enterprise play with our server. i believe that is going to be strong growth. it is very focused on enterprise. we have a consumer play out there. we are going to continue to push on that also. >> how about cars? you have a strong foothold in cars. how do you see that playing out? future for thea internet of things. >> there has to be an internet of all things, everything connected. we are doing phones today. it is about the device. there is the connected car world. we own the lines share of the infotainmentrms of , car management systems, on the dashboard, and all of that. secure microkernel technology. over half of the industry uses it. with the compatible ,pple play, what google has working on. and as far as microsoft. there is a consortium out there. we are one of the leading providers of the consortium. i am very comfortable about our connected car positions. .hat should give you a hint we would like to continue to branch out to the jasons. there will be connected -- to adjacents. ,here will be connected homes connected everything. all things internet all stop >> thanks so much for joining us. >> thank you, emily. chang, in san francisco, interviewing john chen, the ceo of like perry, a man for whom we have lots of questions. , a manceo of blackberry for whom we have lots of questions. ♪ >> the american dream is alive and well, if you are willing to pay for it. the u.s. government offers a special visa program that is especially popular with chinese. they are threatening to overwhelm it with demand. yang yang is in washington this morning. how much does this cost, to get one of these visas? >> upwards of $600,000. ,ut for china's nouveau riche it is a small price to pay for the coveted american education for their children, and a better life. ,, thes known as the eb5 am really category for skilled workers, specific to immigrant investors or entrepreneurs. to investnational has of $500,000, and it has to be linked to the direct creation of 10 full-time jobs, or the visa holders risk the rotation. chinese accounted for 80% of the total eb5s issued. critics say these is should not be for sale. an attorney says the naysayers are missing the bigger picture. >> if you are in a position to be able to invest $500,000, most of those people aren't that money. they did not inherit it. i have already shown the entrepreneurship that is want.ing you i do not think it should negate the right for people to get this investment visa. >> one analyst credits nearly $5 billion in direct investment. >> which branch of the government operates this visa program? of more interest to me, who audits it? >> b program is administered through the state department and homeland security. the way they oversee the program is that within those two years -- the chinese moving to the united states have to prove a direct link to those 10 full-time jobs. if they cannot prove a link, they are deported. they need to make sure they are not going to risk deportation. for the most part, once the two years are over, they applied for green cards, and the rest of the process is just as it would be for any permanent resident in the united states. >> a little-known but fascinating program. thank you very much. it is friday. time to play the yearbook game. estate mogul. graduated from high school in illinois back in 1959. highland park high school. that is all we are telling you this morning. who do you think it is? tweet me your guesses. we would love to know what you think. ♪ >> this being friday, it is the day we play the yearbook game here on "market makers. this is a real estate executive who graduated -- i think he is more of an investor, is a better way to describe him. graduated class of 1959, highland park high school, illinois. do you know who it is? i think i know who it is. we are going to reveal the answer when we come back -- as a matter of fact, we are going to reveal the answer right now. scarlet fu is not here. she cannot congratulate me. i think i got it right. i believe the answer is none other than sam zell, perhaps the greatest real estate investor in american history. can you see the resemblance? sort of. back then, sam did not have the soul patch. here are some of our winners. he is indeed a wizard of real estate. congratulations. do we have one more? we do not have time. what lots of people got it right. sam zell, the answer. "on the markets" is next. ♪ >> we are approaching 56 past the hour. that means bloomberg television is on the markets. i am julie hyman. stocks are rising after a two-day decline. the vix trading back below 14. a stat showed an increase in consumer spending. is this a sign that the economic downturn might be turning around with the weather? i was talking with an investor earlier about this. we have been stuck in a range. the stocks have not been able to make much progress. if you look at the vix falling, that.ort of supports any signs of a breakout in either direction? >> we are not seeing any signs of a breakout yet. at the past month, the weather and how it has affected the economic data. we have overlooked some pretty downbeat ada over the first part of the year, and everyone has blamed the weather. the market is pricing in a big-time turnaround for the spring. every ceo at mr. earnings this quarter has blamed the weather. if we do not see that turnaround in the spring, this market has a long way to fall. 14, buyingx below protection is still relatively cheap, and probably prudent if you are a longer-term investor. >> is that something you would be doing as well, buying protection using the vix? >> we do not trade with that long of a time horizon. i am in and out quite a bit. trading the market is difficult, because it is quite choppy. equities,who are long i think buying protection is very good at these levels. might being else that a tricky bit to get in and out of his blackberry. the company came out with its earnings today. the numbers were better than estimated. emily chang just talked to ceo john chen. about theked a lot company being more efficient and elling off real estate. talk to me about what you are seeing, options-wise. highs now.ll off the leading into the earnings report, he saw a lot of activity in blackberry puts, investors betting the stock was going to looking foror protections. i think the stock looks weak today. it will put a huge wake on the top of the daily bar if it closes at these levels. it has found sellers in the range of $10 and $11 twice this year, and it took 20%. posting not gone be positive earnings until sometime next year, they be even late 2015. looking for investment opportunities, better opportunities out there. >> let us talk about a company that came out with earnings earlier in the week, gamestop. you said it reminds you of a company called blockbuster, whose business model essentially became obsolete. the stock pulled apart after the innings. it is coming back pretty good, but you are not competent it is going to stay up. >> i am not. it really is just like blockbuster. we know they are going to have to compete with walmart in brick-and-mortar stores. i think the biggest headwind is the fact that next-generation consoles allow players to download games via the cloud. they do not have to go through the store anymore. the stock is down over 20% this year. a terrible looking chart. i do not see things looking any easier for gamestop, going forward. >> talk about your strategy in the options market. >> the stock is pumping today. the options market is implying a to $4 lowernd $3.75 by may. i can buy the puts bread for $.25. for 25 cents.ead i could get 3-1 on my money. >> thank you so much. general mellie joining us to talk options on a number of different subjects. we will have more soon. ♪ . . >> welcome to "lunch money." i am adam johnson. here is what we've got today. in tech, forget 4g. facebook wants to bring you the internet with drones, satellites, and lasers. is john chen blackberry's savior? we will hear from the ceo himself. there are winners and losers in health-care enrollment. finally, meet the luxury veteran who made a winning bet on a
MiamiFloridaUnited-statesNew-yorkMalaysiaCanadaPhiladelphiaPennsylvaniaChinaMinnesotaIllinoisWashington million. the company losing in the gap earnings, down a lot, but once you strip that out, you see the company profitable when you stick out the stock conversation and as a result, the stock is going bonkers in after-hours trading. has twitter really fix the problems vexing their growth? twitter is a former director of platforming in san francisco and my friend david kirkpatrick joins us via skype him upstate new york. -- i lookedtoday hard for anything that looked negative and i can usually find something. i didn't see anything particularly bad here at all. this is a banner quarter for them and what everyone has been hoping to see. , incrediblerowth engagement and the revenue continues to beat everyone's expectations. a great quarter overall. >> your take? >> i'm probably not quite as optimistic. user growth could be stronger. these guys are like the little engine that could. i think they're going to have more trouble than they do. koslow is doing a great job and it's wonderful quarter nara major presence in the industry but user growth in the places they can make money, they still had a challenge. ask looking at user growth year over year, looking at a quarter after quarter, you're just piling people on top of people. it's not a seasonal thing, or is it? >> i think it's about getting a product in place that continues to connect with users and figures out how to get the best value out of twitter. they are hyper focused on opening a product that helps s see that value. >> do you think they are really doing a good job owning a product that can help ordinary users connect on twitter? >> i think they are getting there. the world cup was a great demonstration about building a product focused on a very specific experience. i think there's a lot of work ahead they are starting to get there and see the early turns of that kind of product. >> do you think they are building a good product? for usproduct is amazing and probably even name a jordy of the viewers of this show. it is not amazing for our siblings, our parents, and even our children. certainly our children have an easier time of it. an initiation process to use twitter. i know i myself still get confused about certain things about it and i think they've got an ongoing problem with the product itself. he also have a problem, even though they have a lot of users, the amount of time users were spending on it is down, so there's another negative. plus they have this huge challenge to international users that earn them way less money for a user than to mess to clean, like maybe 1/7 as much. big set of challenges. i do think it's an indispensable product that is a central figure in modern culture that will stay for the duration. my basic view of twitter remains that it will never be a company with the gravitas and scale of facebook and google. those who think it will will be disappointed. >> how long has there been a it seems to me there has to be a fundamental decision about do we tailor a product for different kinds of users different needs -- people like david and diane people in the media are constantly broadcasting ideas and reporting in different ways will stop but for other people, are there different products for different people? nearthink it's relatively what they have been doing and it's a simple product that speaks to everyone. they need to work at building a product that is understandable to all users. but i disagree that's not going to touch all people around the world and have gravitas like facebook. they're talking about the off network piece of twitter -- twitter permeates the fabric of society on tv, the web -- it's not just about the people logging into the service. if you think of twitter as an information you -- information news network and every user with a mobile phone, that's valuable. it just about albums of photos for friends of stop i think there's a level of gravitas you won't see. their job is to get from 271 million users to a billion users and at the vague challenge. but the fundamentals will be valuable to a million plus users. -- to a billion plus users. >> david kirkpatrick, thank you very much all stop we appreciated. yesterday, a judge ruled that the record to billion dollar sale of the l.a. clippers to steve ulmer can go ahead without the consent of the owner. the judge said sterling's life has the sole authority to sell the franchise after sterling was banned from the nba for making racist comments. trish regan sat down with the clippers interim ceo, dick parsons and asked about ballmer's reaction to the ruling? >> you can't wait to get approved and take ownership of this team and really start to participate in the way an owner can. was going tok he disappear before we got to this point, that's were sure. >> trish regan joins us from california. >> a lot of people are very happy. the community here, players on the team, and this interim ceo, dick parsons. he said there is a real potential for this to become america's team because a lot of people have been following the story very closely. now the worst is behind us as far as getting donald sterling of the mix. ballmer, about steve paying an extra ordinary amount of money for this team, 12 times revenue. $2 billion and he says there's a lot steve can do with this team and the players are very excited. it should be exciting. listen to this. i will go so far to say it's much ado about nothing. long way fromong, a transaction. i know time warner management very well. i put most of them in place. i know the time warner board very well. they manifest this -- i've been going half a dozen years -- that they have shareholder value uppermost in mind. the stock has tripled in the last six years. i think they have their shareholder base with them and they know what they are doing. they've got a plan going forward and with respect, just look at that from the outside. that was offered is way off the mark and the currency offered is way off the mark. talkingis dick parsons potentialtime warner merger with murdoch potentially coming in and buying the company. soused to run time warner, he has some insight to this. he specified he had not spoken directly but doesn't necessarily think this is a deal that is ready to go. meaning the currency, you are talking about nonvoting shares and he cited the price as being may be getting ahead of themselves here as we watched shares trading around $84. $80 billion for a bid for this company that many believe will only move higher and that may be one of the reasons rupert murdoch is selling off a lot of european assets right now. he still owns a lot of shares and is hoping for another bidder. it's interesting to watch his career going to work from governor rockefeller of the dime savings bank to the chairman of citigroup and the media company. theyou guys talk about media value created by the clippers? >> say that again? >> did you hear him talk about a tv dealer -- tv deal or how the clippers are immediate robert he that he may understand in a special way because of his time warner experience? >> i think he does recognize the value of the clippers. nonetheless, everyone is cautious when it comes to the valuation. parsons wouldick tell you and mbeki did in that anerview last and say it was enormous amount of money for the team. four times what any other nba franchise has been. a tremendouse been amount of potential in the television rights, it made number. >> enck you very much. "bloomberg west" right after this. ♪ >> i'm emily chang and this is bloomberg west. linkedin is rolling out a new design on its mobile product will stop the professional social network has been on a buying spree come acquiring companies. the startup comes the internet for blogs that mention users friends. the senior vice president of product and user experience joins me now from mountain view, california. thanks as always for joining us. ellis about these new mobile profiles and how they are effort from the old ones. >> it's great to be back on this show. it's always good to talk to you about new and excited things going on at linkedin, especially in the world of mobile. we launched our new profile and it follows the team of relationships. calledched a new product connected on mobile devices and we truly believe they should matter. relationships one of the reasons we established those relationships is when we meet new people and want to know more about them. rather than using the age-old icebreaker of how is the weather ? it's been a real hot in silicon what's happening with the price of gold -- they profile makes it easy for an individual to look fabulous for the folks looking at that profile as well as for that interaction and relationship to become more personal and intimate. >> mobile has been a big focus for you. what kind of growth are you seeing in mobile versus desktop? >> the mobile has been growing nicely for us. as we announced at the end of our last quarter, 43% of weekly visitors are coming on mobile devices. when we announce our earnings, you will see some new numbers in that direction. i look at our mobile interaction as a means of enabling professionals to work where they want to work and keep our strategy. it is a great crucible for innovation as we allow new things like our mobile profiles. we want to integrate some of that goodness back into our desktop topics as well. >> when are we going to see that? are we going to see new user profiles on the desktop? thee're always integrating things we learn from one platform on to the other. you can expect a lot of the goodness we see on one platform to show up on another. i will come back and let you know when we integrate those things. but i recently spoke with the cofounder of linkedin and executive chair of a reid hoffman. i asked him about what keeps him up at night when it comes to linkedin. take a listen to what he had to say. >> what i most worry about is are we under delivering against the opportunity? we have this ability to have people's identities on this platform to change the way they work. againstoing well enough that very long-term opportunity? there are a lot of things that need to be done over years in order to get there. are we being bold enough? he went on to say are we taking bold enough steps and making big enough decisions, taking risk. how do you want daily basis tried to do that to make sure linkedin is capitalizing on the opportunity you believe is out there? >> i believe what he says really resonates with me and the executive team at linkedin. taking boldust button exploring new avenues to fulfill the promise of what linkedin means to our over 300 million members, but we are looking at new ways of innovating and inventing how that connected world works. if you think about it as professionals, we get as he under to focus on what we are doing and at the same time, there's a little insecurity -- are we doing enough? are we presenting ourselves in the best possible way and putting the best foot forward? that part of the opportunity, promise and vision read thomases. long it is also a really 30. truly great companies continue to deliver on really far-reaching vision than those go on for decades at a time will stop that's really an exciting part of being at linkedin. >> you're looking at making smaller acquisitions right. how much more of this are we going to see? acquisitions fit in nicely with our product strategy. the people in -- knowing the people in your network is a great way to further relationships with them. similar to the mobile profile that we have. i was looking at your profile before the show and it turns out you went to the same high school my daughter went to summer camp a couple of summers ago. >> really? >> yes. >> in hawaii. what are the odds. is what these acquisitions are about. how can we further that goal and vision of enabling the professional to be the best at what they are and help them grow and nurture their relationships? >> you guys do have six apps total right now. why do you have some any? why not just focus on one? >> have the flagship apps. we want to make sure for our members that we are there with the right kind of experience for them throughout the day and throughout their career. when you have young children, you have the opportunity to go to a big ox store like bloomingdale's and do shopping. but once and a while, you want to go to gymboree or gap kids. a job searcher for instance could use a flagship app but they are intensely in the job searching more and we believe giving them an application that we just launched a few weeks ago is one of the better ways to go. you're not going to dozens of these apps. but you want to make sure we are addressing the right point and user experiences for our members. >> thank you as always for joining us on "bloomberg west. we will be right back. ♪ >> welcome back to "lumber bwest ." i'm emily chang. it's a big win for apple in a blow to act very. fortis converting to apple instead of like very. about 9000 ford employees will receive iphones in the next four years. don chen has been counting on corporate accounts to turn the company around. library may be used -- may be buying ard but is german company that provides anti-eavesdropping technology for mobile phones. it counts german chancellor angela merkel as a client. is the first acquisition under blackberry ceo john chen. jordan robinson covers cyber security for bloomberg news. tell us more about what this empathy does and why blackberry wants it. >> it is encryption technology that sits on the device itself. in this post edward snowden director securities everything for these companies. it is funny that blackberry is buying this empathy because blackberry gained its reputation and became they go to business smartphone maker a few years ago on the basis of the reputation for security and they lost that reputation for a while. this is a kind of back to the future moment for them. >> is it a little surprising they did not already have this technology? >> they were partnering with this company, so they had access to the technology, so it makes sense for them. they want to be seen as the security smart phone provider. they're facing competition. samsung has been pushing their products and hacking threats to mobile phones are not as prevalent as they are in pcs yet, so it is a mixed bag. it's important for them to have ended important part of their turnaround strategy. >> how do you see it fitting into the broader strategy? john chen is trying to remake the company but he is still making devices and trying to be less reliant on devices which less and less people are using. does it make sense he's doing something to make phones better when they are going to be focusing on enterprise software and services? >> that's a good question considering what this technology does. this is a hardware-based solution, so you encrypt the data, it stays on the device and you cannot access it. one of blackberry's date innovations of the past was its server, which was software essentially which encrypted the user information and nobody could access it that way. this is a hardware focused acquisition and a hard one, but it is a diversion from what he has described as a strategy. robinson in washington dc, thank you so much. thatpid comes clean -- dating site says they do experiment on users. what kind of tests are being conducted and what were the results? we will tell you next, on "bloomberg west." ♪ >> you are watching "bloomberg west" where we focus on the future of technology and business. ok cupid says they have experiment on their users, admitting in a blog post that they have conducted experiments, prompting the kinds of conversations when pictures were removed and changing the rating systems to match to for users. the admission comes just a few months after facebook apologized for similar studies on unknowing users. cory johnson joins me now from new york with more on ok cupid house experiment will stop tell theseut what exactly tests involved. >> there were a handful of tests where they basically altered people's profiles to see what kind of response they would get. some were as simple as changing the text or removing the text that describes somebody. the photo thing they did where they would take someone's profile and remove the photo to see what kind of responsible kind of messages they would get. if they found my removing the photos is users get 44% more messages and the conversations would actually good the per. were exchanged faster. but this is also messing with the profile somebody elected to put out there in the world. i think the most interesting one is the confidence game. not the old-fashioned three card monte game, but the card game was here where they would tell somebody with a 30% match ability score that they were 90%. they followed those people once they had that confidence and they would engage in more messages and get more active in the dating community. >> they said they would manipulate the compatibility score to make it higher or lower. they felt morer, inclined to message those people and it goes to show how easily websites can manipulate our emotions and emotional responses. thisthink the reason touches such a nerve is that maybe this is about dating or sex -- something so personal and intimate -- the notion that a business would change this data -- they were just messing around for fun and were not engaged me scientific study as facebook was a few months ago. trying toactually change user's profile to get more actions on their site and -- this is a commercial effort to try to change the way their businesses succeeding in the competitive world of online dating when they are up against eharmony and match.com. .ll of the other sites i think it's a pretty big deal and it is what makes this particularly pernicious. >> facebook has been the target of a huge uproar in the last similarlyeks for trying to do experiment to manipulate people's emotions. ok cupid doesn't seem like it's getting the same amount of heat. but both companies say this is in the name of experimentation and in the name of improving the service will stop -- the service. is it ok if that's the end goal? >> let me offer two takeaways -- mark zuckerberg and ok cupid's motion of privacy may not be yours but your data you are talking about. the bigger issue is for businesses that start to engage in social media at construct media based on user information. product -- when companies are engaging -- they love that word, engaging with their consumer and touching their consumers and new sorts of ways. the consumer might feel very differently about that relationship. while the company might think it's their data to mess with, the consumer that feels like it's their data and they can decide how to put it out there has a very different relationship with that business and brand. he'spid's cofounder saying only heard two complaints but the complaints you might hear are people jumping to match.com or you name it. whatever business they were getting they may not get anymore because they messed with the trust of their customers. reach out to ok cupid for comment, but we have not heard back. thank you. out -- rideiling r has rolled out a new program dedicated to business travelers. they hymnbook rides and play with -- and pay with corporate expense accounts. for more on the push to get more customers, stephanie ruhl spoke with the vice president of business for uber asking how the corporate service works. >> we're going to make it easier for employees to get their receipt from the system directly into their expense system and expensecorporate travel person, we are going to give them a dashboard on the web where they can add employees, remove them and look at their spend across their employee base. it's going to make it easier to manage. >> when you say look at their spend, will those coo's of businesses the able to look at the usage numbers? one of the issues they had with corporate accounts before is an endless pit of money they are spending on car services -- tens of thousands of dollars on the wait times that they cannot give to the bottom of? with paper dealt receipts, vouchers, credit card statements and all kinds of different methods. we are going to simplify that and urge them to consolidate cities where we are cheaper than a taxi, makes ber.ense not to use u >> do need to branch out in this kind of this is? you can't the cheaper and a tack -- cheaper than a taxi forever. >> you can, actually. things with our business models to make it cheaper for trimers to own and insure cars. we can bring the price down pretty low and places we can do that, it's going to be great for the corporations. >> when do people need to take cars question markets to dinner at 6:00 or 7:00, when it is time for surge. >> surge happens a small percentage -- >> i'm not going to give you that. i'm happy to pay my surge but it happens a lot. would you rather ruin your coat in the rain? i don't know. >> no, that's why i'm ok with that. but are you going to be tracked -- attracting these accounts because they ride at those surge times? >> i think we are an option. we give people an option and they can use us or they can use some other ground transport. if they don't feel like we're the best and most efficient, they can use something else but our mission is to provide the safest and most reliable ride so we want to get to you in under five minutes. if that means surge sometime, we are going to go for reliability is the thing we are providing consumers. people check twitter regularly but don't actually tweet question or we asked more than a thousand twitter users how they use the platform and we will bring you the results, next. ♪ >> i'm emily chang and this is "on request" on bloomberg television, streaming on your phone, tablet and bloomberg.com. we turn back to twitter. users have flocked to twitter since the first tweet was sent in 2006, but keeping users engaged is a huge challenge for the company. we asked more than a thousand people in the united states how they use twitter for this month's surveymonkey shakedown. cory johnson is back with us from new york and dave goldberg joins me now in the studio. sheryl sandberg, your wife, works for facebook, which is a competitor to twitter. you talk to a thousand people? >> we surveyed over a thousand consumers and ask them how they use water. everyone has heard of twitter but only 38% say they actually use it on a regular basis. but it was slightly higher with younger consumers. >> awareness is high and adoption is not? >> it's pretty good. i don't think it's horrible, just relative to the awareness. for.are people using it where are people not using it are some of the questions. >> are these newer users? >> most people -- this is interesting. most people who joined twitter in the last couple of years if they are using it and it's not surprising but it is greater than i would have guessed in the numbers of users that have joined in the last two years and the ipo probably did a lot to help drive a lot of new users to it. >> i wonder if that's a sign of user growth? we are talking about twitter early -- twitter earnings earlier today. atse numbers don't look that. a dealink overseas is a also. user growth is very different overseas will stop how did you guys select these people who responded? what do you know about where they were and how did you find them? >> these are people who signed take surveys for charity. it's general u.s. consumers, so is broadly representative. people take our survey. it's very high quality data. twitter.talk about about theeople find ads? >> relative to other advertising, we don't have comparisons here. people generally saw some of the ads. they were not particularly annoyed by them. if we look at other sites, it would look similar or worse than twitter. i don't think the ads are an issue or problem for twitters. >> the ad strategy seems to be in the early stages of stop at least that's what they say. there's a long way to go but also a lot of attentional. >> they're figuring that out and figuring out how to use the potential they get. the holy grail is not just a way to get people to look at ads but use contextual information about the way people tweet and show them ads they want to see where they don't feel like they are advertising. that is an enormous big data challenge and enormous learning challenge for the machines that run twitter to really figure out who people are to give them ads without having to get people involved in that media placement. >> about how people are accessing twitter? is 51% on smartphones some another 10% on tablet. 56% mobile -- that's not surprising. but forhard to say consumer applications, that's going to be the norm. that peoplee way consume it and it's short and always grew up in the mobile. twitter from its infancy was a mobile medium. >> we were talking about it today. i think twitter, the challenge that -- this is my personal thing. it's hard to explain to people the utility of it until they get used to it and then people find a lot of value in it will stop >> that's the problem. >> follow me on twitter and you will know much more about me. she's a facebook user and gets confused with twitter. >> at the problem for twitter. the on ramping of people. some people have no use for twitter because they don't think of themselves who -- as people who want to tell the world stuff in 140 characters or less. i had the same reaction when i was compelled to start tweeting when i started this job. of thing thatkind now i love sending out tweets and i think a lot of people certainly have that experience where it is a way to share and communicate. it's my personal experience but the fact that linkedin and twitter, linkedin has made it easy for me to do both at the same time. i've noticed by doing that i get a lot more reaction on both tms, by doing it through both at the same time. that has been good for both of those companies. >> all questions are good. thank you so much for today's survey monkey shakedown. we will be right back with more "bloomberg west." ♪ the spacex president made a bold prediction, saying they could be sending people to mars in 10 years. we spoke to the chief -- i asked howr far away we were from humans landing on the red planet. >> landing on mars is a real trick. we are much looser to getting people in mars orbit or flying by mars will stop -- flying by mars. that would be a great long-term goal. it's going to take some technology development. landed a one ton rover on mars which is an amazing accomplishment. one thing we learned from that is landing a five ton lander with crew on board is going to be really tricky and we will need several of those. it is difficult, but it's no more difficult than apollo was when that happened and is probably a lot less difficult. on a scale of hard, it's not quite that hard. >> you have a lot of different companies working on this from nasa to spacex. who's going to get there first? >> i think it's going to be a team effort. spacex have gotten where they have gotten in no small measure by working with nasa, both funding and technical as -- google expertise and have done an amazing job. these public-private order ships are really going to be the key. philanthropy is working with nasa as well as companies working with nasa. >> getting to mars is one thing, but what about getting back? >> if you only go into mars orbit am i getting back is a lot easier. if you land on the surface, that part of why getting to mars is so hard because you have to land all the things that get you back off the surface. it turns out if you can land equipment to make your rocket fuel on the surface of mars, that is enabling. it's very hard to land all of our rocket you'll on mars and take off with that fuel. you have to make it while you are there. beenu and your wife have planning your own trip to mars for the better part of two decades. why? why you want to go so badly and what does getting there involved for you? think going there really involves doing something that is so hard that it's worth the of america. -- morsi of america. that's what a lot of people miss about the space program. america needs is kind of hard technical challenges both to spur on innovation and also to inspire kids into science and show what amazing things can be done with science and technology. it's all about making america strong. >> how does the business model differ? the apollo mission you reference created a lot of as those opportunities but there was an enormous government spending. how is the business model differ in for nasa for such a massive effort now? >> i think nasa can probably do more in the way of ordering with philanthropies and companies for sponsorship. i think there's going to be more international partnering as well. nasa come in the administration and congress need to take a leadership position. then find the partners that make it happen. about what talking huge amounts of money this is going to be. maybe we had to get up to 1% of inspirent spending to america and secure our economic future. we are not talking about that much money, especially if nasa works with other entities. >> what kind of technology do we need to get her that we don't have yet or that is in development or is not deployed yet? >> one of the big inferences between now and apollo was we had to invent just about everything for apollo. need to inventwe really involve landing on the surface of mars and getting back off the surface of mars. the international space station has basically proven we have the technologies to get to and from mars and live on the surface. there is a lot more testing to do but a lot of propulsion and life-support technologies are in place. it is that last step into the surface of mars and back. >> spacex has been talking about going beyond mars, dominating the solar system by 2100. do you think that's possible? other planets? >> i would never want to musk and len elon -- they are doing amazing things. i think it would be a shame if there was one monopolistic company dominating the solar system. it would be the empire. would hope in good american tradition or planetary tradition that there are several companies out there competing. leading thetainly way in many areas. it is fabulous to see what they're doing. >> who knows what the future holds? chief officer for inspiration mars. and it's time now for the bwest white -- one number that tells a whole lot. cory has got the bite for us today. 788 million $197,000. that's the revenues match.com had four 2013. 10% rise over the previous years. this includes revenues for match.com thomas b date, date hook up, and yes ok cupid. little-known fact. ok cupid is how we met. people don't know that. for you ton waiting make an ok cupid joke the whole show. >> i almost made it. >> i have no comment. for watching. all the latest headlines all the time at bloomberg.com. ♪ >> welcome to "money clip," where we tie together the best videos, interviews, and stories in business news. i am adam johnson. the ceo of ubs talks to bloomberg about moving beyond multiples troubles. and tangling a timebomb of that. in motors -- the most luxurious private jet and even billionaires cannot buy it. finally the largest reconstruction project reshaping london's landscape. first, the brick wall that is
United-statesNew-yorkCaliforniaGermanyWashingtonDistrict-of-columbiaLondonCity-ofUnited-kingdomSan-franciscoHawaiiAmerica the company losing in the gap earnings, down a lot, but once you strip that out, you see the company profitable when you stick out the stock conversation and as a result, the stock is going bonkers in after-hours trading. has twitter really fixed the problems vexing their growth? my guess is a former twitter director of platforming in san francisco and my friend david kirkpatrick joins us via skype from upstate new york. the numbers today -- i looked hard for anything that looked negative and i can usually find something. i didn't see anything particularly bad here at all. >> i think this is a banner quarter for them and what everyone has been hoping to see. incredible growth, incredible engagement and the revenue continues to beat everyone's expectations. a great quarter overall. >> your take? >> i'm probably not quite as optimistic. user growth could be stronger. these guys are like the little engine that could. i think they're going to have more trouble than they do. koslow is doing a great job and it's wonderful quarter nara major presence in the industry but user growth in the places they can make money, they still had a challenge. ask looking at user growth year over year, looking at a quarter after quarter, you're just piling people on top of people. it's not a seasonal thing, or is it? >> i think it's about getting a product in place that continues to connect with users and figures out how to get the best value out of twitter. they are hyper focused on opening a product that helps users see that value. >> do you think they are really doing a good job owning a product that can help ordinary users connect on twitter? >> i think they are getting there. the world cup was a great demonstration about building a product focused on a very specific experience. i think there's a lot of work ahead they are starting to get there and see the early turns of that kind of product. >> do you think they are building a good product? >> the product is amazing for us and probably even name a jordy of the viewers of this show. it is not amazing for our siblings, our parents, and even our children. certainly our children have an easier time of it. but it takes an initiation process to use twitter. i know i myself still get confused about certain things about it and i think they've got an ongoing problem with the product itself. also have a problem, even though they have a lot of users, the amount of time users were spending on it is down, so there's another negative. plus they have this huge challenge to international users that earn them way less money for a user than to mess to clean, like maybe 1/7 as much. that's a big set of challenges. i do think it's an indispensable product that is a central figure in modern culture that will stay for the duration. my basic view of twitter remains that it will never be a company with the gravitas and scale of facebook and google. those who think it will will be disappointed. >> how long has there been a debate -- it seems to me there has to be a fundamental decision about do we tailor a product for different kinds of users different needs -- people like david and diane people in the media are constantly broadcasting ideas and reporting in different ways. but for other people, are there different products for different people? >> i think it's relatively near what they have been doing and it's a simple product that speaks to everyone. they need to work at building a product that is understandable to all users. but i disagree that's not going to touch all people around the world and have gravitas like facebook. they're talking about the off network piece of twitter -- twitter permeates the fabric of society on tv, the web -- it's not just about the people logging into the service. if you think of twitter as an information news network and every user with a mobile phone, that's valuable. it just about albums of photos for friends of stop i think there's a level of gravitas you won't see. their job is to get from 271 million users to a billion users and at the vague challenge. but the fundamentals will be valuable to a billion plus users. >> david kirkpatrick, thank you very much all stop we appreciated. yesterday, a judge ruled that the record to billion dollar sale of the l.a. clippers to steve ulmer can go ahead without the consent of the owner. the judge said sterling's life has the sole authority to sell the franchise after sterling was banned from the nba for making racist comments. trish regan sat down with the clippers interim ceo, dick parsons and asked about ballmer's reaction to the ruling? >> you can't wait to get approved and take ownership of this team and really start to participate in the way an owner can. i didn't think he was going to disappear before we got to this point, that's were sure. >> trish regan joins us from california. >> a lot of people are very happy. the community here, players on the team, and this interim ceo, dick parsons. he said there is a real potential for this to become america's team because a lot of people have been following the story very closely. now the worst is behind us as far as getting donald sterling of the mix. we talked about steve ballmer, paying an extra ordinary amount of money for this team, 12 times revenue. $2 billion and he says there's a lot steve can do with this team and the players are very excited. it should be exciting. listen to this. >> i will go so far to say it's much ado about nothing. but we are a long, long way from a transaction. i know time warner management very well. i put most of them in place. i know the time warner board very well. i know that if they manifest this -- i've been going half a dozen years -- that they have shareholder value uppermost in mind. the stock has tripled in the last six years. i think they have their shareholder base with them and they know what they are doing. they've got a plan going forward and with respect, just look at that from the outside. the price that was offered is way off the mark and the currency offered is way off the mark. >> that is dick parsons talking about the time warner potential merger with murdoch potentially coming in and buying the company. he used to run time warner, so he has some insight to this. he specified he had not spoken directly but doesn't necessarily think this is a deal that is ready to go. he cited the currency, meaning you are talking about nonvoting shares and he cited the price as being may be getting ahead of themselves here as we watched shares trading around $84. $80 billion for a bid for this company that many believe will only move higher and that may be one of the reasons rupert murdoch is selling off a lot of european assets right now. >> maybe he still owns a lot of shares and is hoping for another bidder. i think even dick parsons would tell you and mbeki did in that interview last and say it was an enormous amount of money for the team. four times what any other nba franchise has been. there may have been a tremendous amount of potential in the television rights, it made number. >> thanks. more of "bloomberg west" next. ♪ >> i'm emily chang and this is bloomberg west. linkedin is rolling out a new design on its mobile product. the professional social network has been on a buying spree come acquiring companies. the startup comes the internet for blogs that mention users friends. the senior vice president of product and user experience joins me now from mountain view, california. thanks as always for joining us. tell us about these new mobile profiles and how they are effort from the old ones. >> it's great to be back on this show. it's always good to talk to you about new and excited things going on at linkedin, especially in the world of mobile. we launched our new profile and it follows the team of relationships. we launched a new product called connected on mobile devices and we truly believe they should ships -- relationships matter. one of the reasons we established those relationships is when we meet new people and want to know more about them. rather than using the age-old icebreaker of how is the weather? it's been a real hot in silicon valley or what's happening with the price of gold -- thee profile makes it easy for an individual to look fabulous for the folks looking at that profile as well as for that interaction and relationship to become more personal and intimate. >> mobile has been a big focus for you. what kind of growth are you seeing in mobile versus desktop? >> the mobile has been growing nicely for us. as we announced at the end of our last quarter, 43% of weekly visitors are coming on mobile devices. when we announce our earnings, you will see some new numbers in that direction. i look at our mobile interaction as a means of enabling professionals to work where they want to work and keep our strategy. it is a great crucible for innovation as we allow new things like our mobile profiles. we want to integrate some of that goodness back into our desktop topics as well. >> when are we going to see that? are we going to see new user profiles on the desktop? >> we're always integrating the things we learn from one platform on to the other. you can expect a lot of the goodness we see on one platform to show up on another. i will come back and let you know when we integrate those things. but i recently spoke with the cofounder of linkedin and executive chair of a reid hoffman. i asked him about what keeps him up at night when it comes to linkedin. take a listen to what he had to say. >> what i most worry about is are we under delivering against the opportunity? we have this ability to have people's identities on this platform to change the way they work. are we doing well enough against that very long-term opportunity? there are a lot of things that need to be done over years in order to get there. are we being bold enough? >> he went on to say are we taking bold enough steps and making big enough decisions, taking risk. how do you want daily basis tried to do that to make sure linkedin is capitalizing on the opportunity you believe is out there? >> i believe what he says really resonates with me and the executive team at linkedin. we are not just taking bold button exploring new avenues to fulfill the promise of what linkedin means to our over 300 million members, but we are looking at new ways of innovating and inventing how that connected world works. if you think about it as professionals, we get as he under to focus on what we are doing and at the same time, there's a little insecurity -- are we doing enough? are we presenting ourselves in the best possible way and putting the best foot forward? that part of the opportunity, promise and vision reid promises. we -- it is also a really long 30. truly great companies continue to deliver on really far-reaching vision than those go on for decades at a time. that's really an exciting part of being at linkedin. >> you're looking at making smaller acquisitions right. how much more of this are we going to see? >> all of these acquisitions fit in nicely with our product strategy. really knowing the people in your network is a great way to further relationships with them. similar to the mobile profile that we have. i was looking at your profile before the show and it turns out you went to the same high school my daughter went to summer camp a couple of summers ago. >> really? >> yes. >> in hawaii. what are the odds. that is what these acquisitions are about. how can we further that goal and vision of enabling the professional to be the best at what they are and help them grow and nurture their relationships? >> you guys do have six apps total right now. why do you have some any? why not just focus on one? >> have the flagship apps. we want to make sure for our members that we are there with the right kind of experience for them throughout the day and throughout their career. when you have young children, you have the opportunity to go to a big ox store like bloomingdale's and do shopping. but once and a while, you want to go to gymboree or gap kids. a job searcher for instance could use a flagship app but they are intensely in the job searching more and we believe giving them an application that we just launched a few weeks ago is one of the better ways to go. you're not going to dozens of these apps. but you want to make sure we are addressing the right point and user experiences for our members. >> thank you as always for joining us on "bloomberg west. we will be right back. ♪ >> welcome back to "bloomberg west." i'm emily chang. it's a big win for apple in a blow to act very. fortis converting to apple instead of like very. about 9000 ford employees will receive iphones in the next four years. don chen has been counting on corporate accounts to turn the company around. blackberry may be losing ford but is buying a german company that provides anti-eavesdropping technology for mobile phones. it counts german chancellor angela merkel as a client. the first acquisition under blackberry ceo john chen. jordan robinson covers cyber security for bloomberg news. tell us more about what this does and why blackberry wants it. >> it is encryption technology that sits on the device itself. in this post edward snowden era securities everything for these companies. it is funny that blackberry is buying this empathy because blackberry gained its reputation and became they go to business smartphone maker a few years ago on the basis of the reputation for security and they lost that reputation for a while. this is a kind of back to the future moment for them. >> is it a little surprising they did not already have this technology? >> they were partnering with this company, so they had access to the technology, so it makes sense for them. they want to be seen as the security smart phone provider. they're facing competition. samsung has been pushing their products and hacking threats to mobile phones are not as prevalent as they are in pcs yet, so it is a mixed bag. it's important for them to have ended important part of their turnaround strategy. >> how do you see it fitting into the broader strategy? john chen is trying to remake the company but he is still making devices and trying to be less reliant on devices which less and less people are using. does it make sense he's doing something to make phones better when they are going to be focusing on enterprise software and services? >> that's a good question considering what this technology does. this is a hardware-based solution, so you encrypt the data, it stays on the device and you cannot access it. one of blackberry's date innovations of the past was its server, which was software essentially which encrypted the user information and nobody could access it that way. this is a hardware focused acquisition and a hard one, but it is a diversion from what he has described as a strategy. >> jordan robinson in washington dc, thank you so much. ok cupid comes clean -- that dating site says they do experiment on users. what kind of tests are being conducted and what were the results? we will tell you next, on "bloomberg west." ♪ >> you are watching "bloomberg west" where we focus on the future of technology and business. ok cupid says they have experiment on their users, admitting in a blog post that they have conducted experiments, prompting the kinds of conversations when pictures were removed and changing the rating systems to match to for users. the admission comes just a few months after facebook apologized for similar studies on unknowing users. cory johnson joins me now from new york with more on ok cupid house experiment. tell us about what exactly these tests involved. >> there were a handful of tests where they basically altered people's profiles to see what kind of response they would get. some were as simple as changing the text or removing the text that describes somebody. the photo thing they did where they would take someone's profile and remove the photo to see what kind of responsible kind of messages they would get. if they found my removing the photos is users get 44% more messages and the conversations would actually good the per. contact details were exchanged faster. but this is also messing with the profile somebody elected to put out there in the world. i think the most interesting one is the confidence game. not the old-fashioned three card monte game, but the card game was here where they would tell somebody with a 30% match ability score that they were 90%. they followed those people once they had that confidence and they would engage in more messages and get more active in the dating community. >> they said they would manipulate the compatibility score to make it higher or lower. if it was higher, they felt more inclined to message those people and it goes to show how easily websites can manipulate our emotions and emotional responses. >> i think the reason this touches such a nerve is that maybe this is about dating or sex -- something so personal and intimate -- the notion that a business would change this data -- they were just messing around for fun and were not engaged me scientific study as facebook was a few months ago. they were actually trying to change user's profile to get more actions on their site and -- this is a commercial effort to try to change the way their businesses succeeding in the competitive world of online dating when they are up against eharmony and match.com. all of the other sites. i think it's a pretty big deal and it is what makes this particularly pernicious. >> facebook has been the target of a huge uproar in the last several weeks for similarly trying to do experiment to manipulate people's emotions. ok cupid doesn't seem like it's getting the same amount of heat. but both companies say this is in the name of experimentation and in the name of improving the service. is it ok if that's the end goal? >> let me offer two takeaways -- mark zuckerberg and ok cupid's notion of privacy may not be yours but your data you are talking about. the bigger issue is for businesses that start to engage in social media at construct media based on user information. if you are the product -- when companies are engaging -- they love that word, engaging with their consumer and touching their consumers and new sorts of ways. the consumer might feel very differently about that relationship. while the company might think it's their data to mess with, the consumer that feels like it's their data and they can decide how to put it out there has a very different relationship with that business and brand. ok cupid's cofounder saying he's only heard two complaints but the complaints you might hear are people jumping to match.com or you name it. whatever business they were getting they may not get anymore because they messed with the trust of their customers. >> we did reach out to ok cupid for comment, but we have not heard back. thank you. the ride hailing app uber has rolled out a new program dedicated to business travelers. they can book rides and pay with corporate expense accounts. for more on the push to get more customers, stephanie ruhl spoke with the vice president of business for uber asking how the corporate service works. >> we're going to make it easier for employees to get their receipt from the system directly into their expense system and for the corporate travel expense person, we are going to give them a dashboard on the web where they can add employees, remove them and look at their spend across their employee base. it's going to make it easier to manage. >> when you say look at their spend, will those coo's of businesses the able to look at the usage numbers? one of the issues they had with corporate accounts before is an endless pit of money they are spending on car services -- tens of thousands of dollars on the wait times that they cannot give to the bottom of? >> you have dealt with paper receipts, vouchers, credit card statements and all kinds of different methods. we are going to simplify that and urge them to consolidate their expenses cities where we are cheaper than a taxi, makes no sense not to use uber. >> do need to branch out in this kind of this is? you can't the cheaper than a taxi forever. >> you can, actually. we do unique things with our business models to make it cheaper for trimers to own and insure cars. we can bring the price down pretty low and places we can do that, it's going to be great for the corporations. >> when do people need to take cars question markets to dinner at 6:00 or 7:00, when it is time for surge. >> surge happens a small percentage -- >> i'm not going to give you that. i'm happy to pay my surge but it happens a lot. >> would you rather ruin your coat in the rain? i don't know. >> no, that's why i'm ok with that. but are you going to be attracting these accounts because they ride at those surge times? >> i think we are an option. we give people an option and they can use us or they can use some other ground transport. if they don't feel like we're the best and most efficient, they can use something else but our mission is to provide the safest and most reliable ride so we want to get to you in under five minutes. if that means surge sometime, we are going to go for reliability is the thing we are providing consumers. >> how many people check twitter regularly but don't actually tweet question or we asked more than a thousand twitter users how they use the platform and we will bring you the results, next. ♪ >> i'm emily chang and this is "bloomberg west" on bloomberg television, streaming on your phone, tablet and bloomberg.com. we turn back to twitter. users have flocked to twitter since the first tweet was sent in 2006, but keeping users engaged is a huge challenge for the company. we asked more than a thousand people in the united states how they use twitter for this month's surveymonkey shakedown. cory johnson is back with us from new york and dave goldberg joins me now in the studio. sheryl sandberg, your wife, works for facebook, which is a competitor to twitter. you talk to a thousand people? >> we surveyed over a thousand consumers and ask them how they use twitter. everyone has heard of twitter but only 38% say they actually use it on a regular basis. but it was slightly higher with younger consumers. >> awareness is high and adoption is not? >> it's pretty good. i don't think it's horrible, just relative to the awareness. what are people using it for. where are people not using it are some of the questions. >> are these newer users? >> most people -- this is interesting. most people who joined twitter in the last couple of years if they are using it and it's not surprising but it is greater than i would have guessed in the numbers of users that have joined in the last two years and the ipo probably did a lot to help drive a lot of new users to it. >> i wonder if that's a sign of user growth? we are talking about twitter earnings earlier today. these numbers don't look at that. >> i think overseas is a a deal also. user growth is very different overseas. how did you guys select these people who responded? what do you know about where they were and how did you find them? >> these are people who signed up for us to take surveys for charity. it's general u.s. consumers, so is broadly representative. people take our survey. it's very high quality data. >> let's talk about twitter. what did people find about the ads? >> relative to other advertising, we don't have comparisons here. people generally saw some of the ads. they were not particularly annoyed by them. if we look at other sites, it would look similar or worse than twitter. i don't think the ads are an issue or problem for twitters. >> the ad strategy seems to be in the early stages of stop at least that's what they say. there's a long way to go but also a lot of attentional. -- a lot of potential. >> they're figuring that out and figuring out how to use the potential they get. the holy grail is not just a way to get people to look at ads but use contextual information about the way people tweet and show them ads they want to see where they don't feel like they are advertising. that is an enormous big data challenge and enormous learning challenge for the machines that run twitter to really figure out who people are to give them ads without having to get people involved in that media placement. >> about how people are accessing twitter? >> it is 51% on smartphones some another 10% on tablet. 56% mobile -- that's not surprising. >> it's hard to say but for consumer applications, that's going to be the norm. it's just the way that people consume it and it's short and always grew up in the mobile. twitter from its infancy was a mobile medium. >> we were talking about it today. i think twitter, the challenge that -- this is my personal thing. it's hard to explain to people the utility of it until they get used to it and then people find a lot of value in it. >> that's the problem. >> follow me on twitter and you will know much more about me. she's a facebook user and gets confused with twitter. >> that is the problem for twitter. the on ramping of people. some people have no use for twitter because they don't think of themselves as people who want to tell the world stuff in 140 characters or less. i had the same reaction when i was compelled to start tweeting when i started this job. but it is the kind of thing that now i love sending out tweets and i think a lot of people certainly have that experience where it is a way to share and communicate. >> it's my personal experience but the fact that linkedin and twitter, linkedin has made it easy for me to do both at the same time. i've noticed by doing that i get a lot more reaction on both tms, by doing it through both at the same time. that has been good for both of those companies. >> all questions are good. thank you so much for today's survey monkey shakedown. we will be right back with more "bloomberg west." ♪ >> welcome back. the spacex president made a bold prediction, saying they could be sending people to mars in 10 years. we spoke to the chief technologist for inspiration mars. i asked how far away we were from humans landing on the red planet. >> landing on mars is a real trick. we are much closer to getting people in mars orbit or flying by mars. that would be a great long-term goal. it's going to take some technology development. we landed a one ton rover on mars which is an amazing accomplishment. one thing we learned from that is landing a five ton lander with crew on board is going to be really tricky and we will need several of those. it is difficult, but it's no more difficult than apollo was when that happened and is probably a lot less difficult. on a scale of hard, it's not quite that hard. >> you have a lot of different companies working on this from nasa to spacex. who's going to get there first? >> i think it's going to be a team effort. spacex have gotten where they have gotten in no small measure by working with nasa, both funding and technical as -- google expertise and have done an amazing job. these public-private order ships are really going to be the key. philanthropy is working with nasa as well as companies working with nasa. >> getting to mars is one thing, but what about getting back? >> if you only go into mars orbit am i getting back is a lot easier. if you land on the surface, that part of why getting to mars is so hard because you have to land all the things that get you back off the surface. it turns out if you can land equipment to make your rocket fuel on the surface of mars, that is enabling. it's very hard to land all of our rocket you'll on mars and take off with that fuel. you have to make it while you are there. >> you and your wife have been planning your own trip to mars for the better part of two decades. why? why you want to go so badly and what does getting there involved for you? >> i think going there really involves doing something that is so hard that it's worthy of america. that's what a lot of people miss about the space program. america needs is kind of hard technical challenges both to spur on innovation and also to inspire kids into science and show what amazing things can be done with science and technology. it's all about making america strong. >> how does the business model differ? the apollo mission you reference created a lot of as those opportunities but there was an enormous government spending. how is the business model differ in for nasa for such a massive effort now? >> i think nasa can probably do more in the way of ordering with philanthropies and companies for sponsorship. i think there's going to be more international partnering as well. nasa come in the administration and congress need to take a leadership position. then find the partners that make it happen. people keep talking about what huge amounts of money this is going to be. maybe we had to get up to 1% of government spending to inspire america and secure our economic future. we are not talking about that much money, especially if nasa works with other entities. >> what kind of technology do we need to get her that we don't have yet or that is in development or is not deployed yet? >> one of the big inferences between now and apollo was we had to invent just about everything for apollo. now the things we need to invent really involve landing on the surface of mars and getting back off the surface of mars. the international space station has basically proven we have the technologies to get to and from mars and live on the surface. there is a lot more testing to do but a lot of propulsion and life-support technologies are in place. it is that last step into the surface of mars and back. >> spacex has been talking about going beyond mars, dominating the solar system by 2100. do you think that's possible? other planets? >> i would never want to underestimate elon musk and len -- they are doing amazing things. i think it would be a shame if there was one monopolistic company dominating the solar system. it would be the empire. i would hope in good american tradition or planetary tradition that there are several companies out there competing. they are certainly leading the way in many areas. it is fabulous to see what they're doing. >> who knows what the future holds? the chief officer for inspiration mars. and it's time now for the bwest byte -- one number that tells a whole lot. cory has got the bite for us today. $778,197 million. that's the revenues match.com had four 2013. 10% rise over the previous years. this includes revenues for match.com, hook up and yes ok , cupid. little-known fact. ok cupid is how we met. people don't know that. [laughter] >> i've been waiting for you to make an ok cupid joke the whole show. >> i almost made it. >> i have no comment. thank you all for watching. all the latest headlines all the time at bloomberg.com. ♪ . . >> do not miss these inspirational stories of cancer survival in the following program brought to you by cancer treatment centers of america. >> this is a story about fighting cancer, a story about fighting complex and advanced stage cancers, heart breaking cancers, but it is not a tragedy. it is a comeback story, because these people -- rod, melanie and
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