Government scrutiny. The reason, the pentagon, the government officials want to make sure that lenovos purchase will give china a backdoor access to u. S. Secrets. And the white house is angry with samsung after a use of selfie, taken by david ortiz. The slugger signed an endorsement deal with samsung. The company retweeted the picture in an advertisement with more than 5 million followers. The white house has object and to using the president s likeness for commercial purposes. And google is suspending sales of the anoxic alarm. Web nic feature of the of the nest smoke alarm it could take two to three months to fix this problem. Google. Them in january. Technology ipos are hitting wall street. Grubhub and a Cloud Software company both started trading today. The grubhub ceo joint Market Makers and had this to say. Washe reason we did the ipo to gain exposure for the company, to communicate to the world that this was a massive marketplace. There are 70 billion spent annually. Only three percent of that is being placed online in any way. It is not just grubhub. The other company, opower. They have filed to go public. Seeing a ton of ipos producing technology. Now feels like a good time for these companies to go public treated investors are friendly to new Technology Ipos to go public. Investors are friendly to new Technology Ipos. Is thely this is company that is profitable. They had sales of 137 million last year. This Company Looks a lot like opentable, which is another Company Investors have shown an affinity for because it is a dominant player in that space. Theres nothing else quite like it. There was this notion that the market is as big as the restaurant market. They say they have penetrated in many more cities. These guys are all over the place. You opportunity is delivery anywhere. Grubhub, seamless, they are very much a city phenomenon. People go to restaurants and eat food anywhere. Once they sort of penetrate the that is potentially a big market. I think that is what investors are seeing. The shows the appetite sorry, i had to do that. My calculations is showing 300 times last years earnings. Yes it is a Profitable Company but what does it tell us about where we are in the ipo market and the demand for these Technology Ipos wherever they are . They are insanely optimistic valuations. For a company that is already generating revenue you can kind of get a sense of where you expect the numbers to go in the next couple of years. It may take a little bit of time for this valuation to catch up with the realities. When you compare that to what else is happening in the technology world, 19 billion for whats apt. Hatsapp. W i think investors are having trouble waiting the risks versus rewards here. I think the differences they were getting paid primarily in stock where as these people, grubhub, are getting cash money from investors. In terms of the numbers of ipos, do you get a sense of the companies you talk to in the bay area sense of the companies you talk to in the bay area are approaching the company . There is thirst for capital throughout the technology industry. The ipo market, it wasnt a very viable place for technologies that for Technology Companies to go. Capital so much venture money going out there. There is still so much private money available. Dealswere several more earlier last month. The private and Public Market are ready to throw tons of cash. Thank you very much. One of the Companies Going public today revives provides software for utilitybased companies. Shares rising in the public debut. Joining us now from the floor of is New York Stock Exchange dan. I havent heard a single thing about the Company Since a few days ago. Really interesting, how your business is helping Imaging Companies cut power usage. Thats right. And what we do is we work with utilities all over the globe to help them help their endusers get better information on their energy use. It helps them retain customers in competitive markets. It helps them help their consumers save energy, which is, while counterintuitive, and increasingly huge part of the utility industry. It is that the cold for all sorts of environmental and legal reasons. Is that the ultimate goal for your service, but the Power Companies want to increase the power available without building a power plant . Thats a good way to think about it. What you have seen in the last 80 years, the bulk of the life of utility in the electric industry is that these utilities count on demand going up every year so they can build new power plants, they can make more money by getting a rate of return on that. It is just not an option anymore. Nobody wants a car plant built in their city and county. Utilities are looking for new ways to profit. What they have worked out with the regulators in 30 states across the u. S. Is this mechanism where when they invest in Energy Efficient programs to help consumers like you and i save energy they not only get their money back they get bashed their money back, to get a rate of return that is greater than if they had just delivered the energy. They get a rate of return that is greater than if they had just a liver the energy. You guys into deuce your first product in 2007. What has changed technologically and if you have been able to change or new business with new technology . A lot has changed in within the utility industry, one major trend is that smart meters have rolled out increasingly across the globe. In the u. S. More than one third of homes have smart meters. That gives us an enormous amount of data to work with. Over 52 Million Consumers worth of energy data, which we believe is the largest dataset of the time and the planet. , what dovetails is the innovation around virtualization and cloud model for software development, rapid developments, big data analyst digg data big data analytics. These new technologies make it easier for us to extract deep insights about customer data. You guys have just done an ipo. I wonder why you decided to go public now. Going public is a fundraising event. We see this enormous opportunity in front of us. We are cash flow positive this year. We see all these companies that need to do it desperately. You dont really need to. To got is the best time public, when you really need to youre not going to get the value in the market. Doing this is because while we dont need to for survival, we see this enormous opportunity and we want to capture as much of the market as we can. We are barely penetrated in this market. We serve across any of our four solutions, 30 Million Consumers. We took a late 710 Million Consumers and businesses that we can serve. We are less than five percent penetrated into our and market. The exciting thing for us as it is not like those consumers out there that were not serving it is blank space. We are raising this money to go as quickly as we can to build our company. I will let you get to it. The ceo of opower. We appreciate it. Find out what is behind the name cortana and why it may rival siri. Look him. Apples latest acquisition is a company out of the u. K. They make Speech Recognition Software and could play a part in improving their virtual assistant. The terms were not disclosed, which is often the case with apple acquisitions. There is a new challenge from microsoft. Earlier this week microsoft unwrapped its new os, windows 8. 1. It features a new personal assistant called cortana. Much of cortana is powered by the bing search engine. The director of being at microsoft i caught up with him earlier this week. I asked him on the focus on the assistant and why they decided to call it court,. Call it cortana. They thought how this thing should be created, what was the principal of this character. Cortana in halo was master chiefs assistant. Engineers literally thought of this. You saw these dolls everywhere. Unlike what we usually do, we actually stuck with that name. I thought you were going to name it cory. Kind of like in seinfeld when kramer was movie phone. More searches means more revenue. More searches means the users are finding what they want. Do you think this leads to more or fewer searches . What katana allows what when i says something like, is that flight tim . Ontime . People are able to trust that the vice. They use that device more often. We are a device and services company. Is there any reason this couldnt run on other oss . We have to ask the Engineering Team on that. Certainly a lot of intelligence is in the cloud. It really is a snappy experience. A lot of that is tuned to their Windows Phone device. Bing. Com, if you go there and have a court, device a cortana device, the thigns you c the things you care about will flow to bing. Com. A new hbo series called Silicon Valley, were going to take a look next. Hbo has a new series called Silicon Valley. Show creator is mike judge, the guy behind office space, beavis and butthead, and others. We caught up with them at the premier deep in the heart of Silicon Valley. He spent some time working in Silicon Valley you spent some time working in Silicon Valley. Can you sort of describe that experience to us area to us . He i worked up here in 1987 as an engineer. It wasnt a great experience for me. I got a lot of comedy material out of it for later, for movies like office space. Alto andn east paolo worked at a couple of different places. If you were starting out now the way Silicon Valley is do you think you would have stayed a little longer . Almost have been born 25 years later ash its a different world now. You can started smaller with less resources, less money. You have to theres a lower barrier of entry to do that kind of thing now. What was the take away from that, what did you learn . Clock this is one of the shows werent the more research you do the more you realize how much there is comedy wise to do with this area. We came in with certain ideas about a story about this and a story about that. Every time we talked to somebody , practically everything they said you went, that is so much funnier than what we had. You said if that happens you may get into some of the bigger issues. If you talk about starting up a business of Innovative Products they talk about the income gap and women and their role in Silicon Valley. I get a sense there are deeper aims you want to explore potentially. Deeper themes you want to explore potentially. These came up. There is just plenty of material out there. Hopefully we do in other one. Googles executive chairman has a camera has a cameo in a party scene. You did get feedback on how authentic that was. What did he tell you . Clocks it was encouraging. He looked around and said it was encouraging. He looked around and said, ive been to this party. There are references to steve jobs. Could you have done the show without making references to specific people . Was that integral . I suppose. Veryones got macs and pcs it is so everywhere there are pretend companies. They coexist in this. It just seemed right. Do you think it is about your show that will make a difference then some of the other temps . We did an enormous amount of research and really tried to get all of the subtle details as right as we could. I do feel like there is a nuance to reality that we have gotten in our show. We wanted to make it is funny and enjoyable as possible. Keep running. Why peopley that is watch it, not because it is technically correct but because it is an enjoyable experience. Actors like tj miller, he said you told him you were looking for a sort of Penn Gillette type. I know you have your recent animation. How specific do you get on what someone should look like and what the somebody from Silicon Valley look like to you . Im very specific sometimes. Ands in the script sometimes you will put a description when you havent cast anybody, you are just trying to paint a picture. I told him he didnt have to put on weight for this. He said, no, no, its cool. Tj got fat. I didnt ask him to. What has this experience been like for you guys . Its been great. Hbo has been wonderful and supportive. They were amazingly supportive every step of the way to the point where they were so unintrusive that it is such it is sort of a bummer. If the show doesnt work it is 100 our fault. There is no way we can blame anyone else for it. That is sort of a downside. Ofwe will have more bloomberg west,] the break. Bloomberg west, right after the break. Is 36 past the hour. We are on the markets, i am matt miller. Nothing is bad as the nasdaq, up 2. 25 . Shares of the online brokerage e trade are declining. It is the third day for e trade to drop, breaking below its 100 a moving average 100 a moving average. This highfrequency training could effect years of commercial featuring the air against talking baby, e trade is hiring an arrogant actor instead, kevin spacey will replace him. You are watching Bloomberg Johnson i am Cory Bloomberg wes. I am cory johnson. San francisco has the highest gdp per capita in the nation. The growth has been a big boost to the economy. It is not without controversy. Income equality that income inequality has reared its ugly head. Does this mean . How has San Francisco chronicle be a vibrant digital city and what are the lessons to be learned for the rest of the world . Those issues are explored by two new interesting reports. Mandel is the president of economics at i found these studies fascinating. What is a Booming Technology giving us in this area . , several cisco has created more jobs than all but three states. What we have seen here is that the tech sector, rather than creating jobs out in the suburbs, has been migrating to the city in areas of great , which is a tremendous thatle for other cities want to try to revive their inner cities as well. Why should anyone care about your study . I adore it but why should anyone outside the bay area care for it . The first is San Francisco is a very large and vibrant tech success story. There are other cities that are traveling the same trajectory. To understand how to think about the challenge that a large Tech Community can actually, what impact they have on the overall city is actually instructive. While there has been a lot of press backandforth over the last several months about the corporate buses that go from San Francisco down to the valley, the view of the people in San Francisco is more nuanced than it might read in a newspaper. I thought one of the most interesting things was the notion that during the. Com , it was focused on finance and did not tend to bleed out the rest of society. We see unemployment when it is around technology spreading a lot of other disciplines and types of jobs. It turned out San Francisco was very heavily dependent on the finance sector before. Sometimes what made the. Com bust worse the dotcom bust was the loss in finance jobs. It is actually much better setup for the future. That you are not going to see this sort of problem as last time. When i look at the San Francisco economy i dont see an that is fraught with inequality and i see an economy that is generating jobs across a broad sweep of occupations. Only two states have done better than the small city of San Francisco. One of those is north dakota. I presume that is driven by the boston oil discovery. And i presume that has led to a lot of spending and industries in north the coda. Are there industries that spread the wealth more greatly than technology. We did some work in new york city along similar lines. One of the things that is interesting about this rise in it islogy is that incorporating a broader set of adjacent industries. Isnt just in hardcore technology, it touches retail, it touches car rental services. This has a bigger impact in that way. This is an important point. What it means is that the tech info boomer has the potential to spread jobs and growth across the broader part of society than people think. What are the government actions that have aided in this and what could have done to help grow them fasters . Not really sure you want it to grow faster at this point. They were very encouraging and welcoming to tech firms. They offered some very targeted tax breaks. It is very effective and encouraging firms to do so. I think part of the combined lessons from new york and San Francisco is that if the City Administration is focused on a tracking tech firms, that is a very potent force for development. We have seen places like new orleans that you can actually do if youre prepared to do a little work on tax break but more important, run your strategy around the tech firms instead of focusing on it. You can actually bring in a lot more growth than you think. There has been great controversy in San Francisco, particularly one of the things you cite in your study was held with her was drawn into a blighted neighborhood. Was howhat twitter was drawn into a blighted neighborhood. Sometimes when rich white people come into these neighborhoods they change them by being there. Is there any guidance as to how these companies folded into a community and not slapped on top of it . We did a survey of interviews of leading Technology Companies and a survey of residents. One of the things that came out cl