Will ultimately win this fight. Is the russian government behind the major hack attack on jpmorgan . Investigators have found key clues pointing to a city in russia. We will have the latest as investigators search for the and motivesntity and were all that stolen data may have ended up. First, to our lead story. From google to the white house, president obama has named megan smith as the nations new chief technology officer. Most recently head of googles secretive google x lab where its creating moonshot products like self driving car and delivery drug. Twitter general counsel has been named deputy cto. Their mission, to help the United States and on top of technological innovation while dealing with tough questions. For the latest, we are joined by the nations very first chief technology officer. Rate to have you here. Great to have you here. He made you the first. What do you make of megan smith thing appointed cto . Great selections for the country. It affirms the opportunity we have to make sure that we have the best team in place to harness the full power of technology, data and innovation. And grow our economy and ensure the internet continues to be a source of innovation and problem solving. Cofounder of google singh make an inspired sony people through her commitment to inclusion and innovation. We are excited to see what the future holds for her in washington. Google would like a lot of things from washington. They want self driving cars on the road. Do you know where the origins of the Technology Behind the self driving cars came from . You have a long history in our country where research and development is now seen as a Building Block for innovation economy. As our nation invests in rmb and continues to do so, it will open up more opportunities for commercialization. I would say make and has a front row seat to how this commercialization model is working and can help support the next generation of breakthrough innovation. s how does she represent google at silico and silicon valleys interest . Look at the role of government as president obama has identified it, he wrote a strategy for american innovation. It says the country invests in these Building Blocks, making sure we have the Human Capital to be successful in the Global Economy and make sure we have Digital Infrastructure and broadband. Further affirming it as an important part of our infrastructure. She will continue to advocate her Infrastructure Investment that will facilitate innovation for the decades to come. Its also about rules of the road. The assignment to make sure the internet can still be a force for innovation while making sure we get privacy and security everettn of baseline in baseline internet privacy principles. That will help everybody in the internet ecosystem. Its ensuring we harness all of these technologies to fix the challenges of our day. Health on energy, education and this more open and collaborative government megan has done a phenomenal job ringing new ideas to the market. He also worked at google for six years before that. Should google and twitter rivals be worried . Tide lifts all boats. You have two individuals with incredible capability. They understand technology in question and the opportunity to bring an idea out into big commercial opportunities. That talent is what matters. Its going to have an impact on the entire innovation economy. What is the Biggest Challenges theyre going to face . We know the president has embraced technology, but there have been problems like the rollout of healthcare. Gov. We will have plenty more challenges operationally in the years to come. You put the seeds and plant the seeds to make sure they have a longterm success. We are in execution mode. Thatwill take the playbook we started in the first term and execute, execute, execute. I dont imagine a lot of surprises. They will put their stamp on these late books and make sure we execute with great rigor. What did you find was the hardest part of the job . Is all about culture and change. Part of the idea was to say its ok to try new ideas and fail. Making sure agencies understood that part of innovation is capacity for failure. Its less of a technological challenge and more of a cultural change issue. How do you bring the mindset to people that this is possible . That we can have ubiquitous data flowing . There are so many technological issues on the play. Recent nsa revelations, the hacking of jpmorgan. What should be the first thing on megan smiths to do list . Execute the plan that todd park and his team have set up for her. Launching with rigor the playbook for the Digital Service for the government, ensuring we have R D Investments within the agencies that are rightly positioned to create longterm economic opportunity. To execute the internet policy principles so that when we make these tough decisions on Cyber Security and privacy, that we execute those. The policies have already been written. Ideas theexecute the president has already been championing and see them to the finish line . What does it mean in practice how doesvalley the cto impact them . An opportunity i for interface. That publicprivate interface that will solve problems. The principal role of the cto is to foster greater improvement in the interface between the public and private sector. As government opens up more data, it allows entrepreneurs to consume it and build new interfaces. Scopey shape wide security policies, it allows us to engage in ecommerce with confidence. Is that interface that is critical. What a statement for our country that our third cto was a woman in a profession in which weve seen a lot of room for improvement to bring more women into the science and technology field. Has been a big champion for inclusion and has been at google. Thank you so much for giving us the lowdown. Things for having me. Thanks for having me. Samsung versus apple. Each unveiling their latest smartphone less than a week apart. The stakes are high. What should we expect for apples upcoming iphone release . Find out, next. Welcome back to bloomberg west. Im emily chang. The google backed Life Science Company which is turned to find ways to prevent aging is teaming up with a drugmaker. The two companies will invest about 1. 5 billion to find a treatment for agerelated diseases. It will also build a new Research Facility here in the bay area. Indepth look an at the ongoing battle between samsung and apple. For every three years, the two companies have clashed on a scale almost unprecedented in business history. Engaging in a series of lawsuits that have cost more than 1 billion. Samsung just unveiled its latest galaxy note edge and other devices at an event in new york. Next wednesday, apple is set to unveil a new iphone and details of the longawaited smart watch. Who will ultimately come out on top . Engadgetrinchief of and director of mobile devices at ibc joins us now. We asked both of you, what are your biggest wishes for the next iphone . You came up with completely different lists. Ryan, i will start with you. Number one, a larger display. This is all but confirmed at this point. This is the most important thing for the series. You have an iphone user base that has been using the same sized screen for the duration of iphone. This will be the game changer regardless of this play type they use. Display type they use. Big game changer if they are the last to market . Theyve been doing ok without it. The real opportunity there is, youve had a lot of people who for choosing android bigger screens. People like having more room to look at on their phone. You will be able to pull in more folks. What else is on your list . Wirelesst expect charging. It is a game changer in my opinion. Nfc is one i do expect. This is their segue into making mobile payments easier. It helps with pairing devices. Widgets or live app icons . Its not something i expect. I think this does change the landscape when you start to have you see android has had widgets from the beginning. Nokia and microsoft with live titles. Changes how you interact with the device. Your turn, michael. With what itch up want. I dont like having cases on my phone. The iphone hardware is beautiful. Durable. More the sapphire display. You dont need any screen protectors. Thats one that i think were likely to see. They have been using sapphire glass on their touch button and camera lenses. That one is easy. The next is waterproof. Japanese manufacturers have been making waterproof phones for a long time. Samsung is doing it now, too. You hear about people dropping their phones into the toilet or out in the rain. It would be nice to have a waterproof iphone. Those are the durability things. The one usability thing i want is better integration with google services. Calendaril and google and google maps. I want the same experience on android and iphone. Know apple and google arent the best of friends. Youre asking for a twoday battery life. We are expecting a larger display, and its the nfc, sapphire screen. Any surprises on tuesday . I feel like we are bound to see a surprise. I dont know what it could be, though. The Biggest Surprise will be a lot of emphasis on battery. When you double the size of the screen or the device itself, it gives you more opportunity to put a bigger battery. If we do see to sized devices, im expecting a double in the battery for the larger display. This will give people that longer lifetime on the device itself. You guys are sticking around. We will continue this conversation after a quick break. Still ahead, lines have already started to form at the apple store on fifth avenue. We speak to a couple who claims to camp out there until the next iphone comes out. Welcome back to bloomberg west. Im emily chang. We turned our indepth look at the ongoing battle between apple and samsung. Apple has yet to announce details of the next iphone, but a line has already started to form outside the companys flagship fifth avenue store in new york city. Was therewest this morning could we spoke to a couple who has been there since monday. The phone isnt even announced yet and it may not even be released for weeks. When will the phone go on sale . It usually goes on sale a week or two after the announcement. They could be in for a bit of a haul theire. They have a tent. A whole set up. Im wondering whats in it for them at this point. The have a startup to promote. They have their own agenda. They got what they wanted. Do you think these phones are going to be that impressive . Are they going to be enough . I mentioned this before ive been saying for a long time now that the bigger screen is what people want. Iphone users have not gravitated towards this. This will be the first opportunity for them to experience computing on a larger device. Really does change how you interact with the device when you have that much real estate. 5. 5 inches is just too big. 4. 7 is going to be im going to love it . You just came out with a report that they will top tablet sales. Thats not so much in the theres a lot of places around the world where people, the phone is in. They dont have laptops and tablets. Thats why the tablet makes a lot of sense. You are seeing cheaper, large screen phones showing up in china. People want to have a bigger screen but it needs to be portable. Thats where you see the trend going. A lot of that is cheaper Android Devices outside of apples target audience. Somethink this will drive premium Android Devices were apple now has an opportunity to get those customers back because of the larger screen. Its not just apple and samsung out there. I do want to touch a little bit more on the battery problem. You mentioned the phone is likely to have a bigger battery, but also a bigger screen. How long does the battery last . Its all about usage. I do think we will hear them talk about this. There will be a bigger battery. Why is battery life such a hard problem . Samsung did the waterproof thing. The chemistry behind batteries has been maxed out for a while. Does, its because they happen able to make it bigger because the phone is bigger or more efficient processors and software usage. Ares where the gains coming from. Its not a new type of battery. Is Wireless Charging a realistic thing . For apple, now, no. Down the line . I would think so. You sacrifice design and depth and all these Different Things. I dont think its worth it for them at this point. Same thing with waterproof. They are still focused on the best design in the market. Ryan and michael, thank you both. We will see if you get your wishes next week. Tech savvy football fans lookingll fans are at a new connected device. The latest Game Changing innovation hitting the court, next on bloomberg west. It is 26 minutes past the hour. Bloomberg tv is on the markets. We have had a bit of a rally in the u. S. Market following the ecb unexpectedly raising rates. We are seeing the s p gain. 25 today. We have been seeing a bit of selling in the u. S. Bond market. We are watching shares of dbh today. Climbing the most in nearly two years. Sales of its Tommy Hilfiger unit up 9 . More on the markets later. Youre watching bloomberg west. Im emily chang. From jumbotron footage captured by google last two virtualreality stadium towards. Sports franchises are stepping up their game to attract more fans. Joining us now from the bloomberg sports business summit in new york with the president of the sacramento kings. Cory . When he bought the sacramento kings, there was lots of speculation about what this tech genius might apply to his nba team. There are lots of gimmicks. Google class google glass. Youre announcing a new initiative called prime sports that does what . Of ourn sports was Born Partners and sponsors telling us we love what we are doing. We want more. We want to go yearround. We want additional opportunities to grow our brand with you. What we have decided to do is partner with other active lifestyle am other iconic brands throughout Northern California what we are going to do is have a marketing and sales relationship with venues like Alpine Meadows or u. S. Snowboarding to be able to say, would we go to market as the kings or crown sports, we offer you a potential partner, a range of assets. Not just the kings, but all of sacramento, lake tahoe and everything in between. Manageg technology to the sales process and go out and call those customers that might be willing to buy ski tickets. We just think if we have more Marketing Tools in our will box, more places to most people and more television opportunities, we become a more interesting partner for the sponsors that exist. Not just regionally, but nationally as well. Whether its the Sacramento Convention and Business Bureau or other ski resorts, the idea that we have an intact salesforce and activation force we can use to help grow not just er team not just our team brand, but the other brands as well, they enjoy the breadth of opportunities. That is the what. Tell me the how. Everything we do is grounded in either technology or sustainability or community outreach. Those are the precepts. To the extent that we can partner with other likeminded brands who have an interest in millenials and youth lifestyle and can do that with the the type ofthat is business we are looking to partner with. How are you managing this process . Lot ofre trying a Different Things. We want to be disruptive. Whether partnering or oculus with oculus or google glass or bitcoin, there are so many leading technologies right now that we are having fun trying Different Things and seeing what works. They enjoy that process where they are a part of it. You are taking business back to the most basic thing. Ran into two guys in front of the watercooler saying, is john trying to sell you something, dan . Get on the phone and tell something. Thats how ticket sales were handled in the nba. Organizationales first and foremost. Its more than just banging out 100 phone calls a day. There is more of a science to it. A scienceore of behind it to make sure that we are successful, especially in a small market like sacramento. Sales organization. Whether its ticket sales or sponsorship, we want to do things that are cuttingedge and things that drive the business of our partners. Thank you very much. Go kings. Apple and samsung dominate the smartphone world. Competitors are trying to steal their market share. How real is the threat . That is next on bloomberg west. Im emily chang and this is bloomberg west on bloomberg television. Anything apple can do, samsung wants to do better. The two rivals are behind almost of two smart phones being sold in the country. That is being threatened by Companies Like chinas upstart, xiaomi. For more, im joined by bob odonnell and the korea economic institutes troy. Thank you for joining us. Done a lot of research on what people actually use on their phone. What do people do on their phone these days . Really, the name phone is a misnomer. They are not making phone calls. I did a survey of 2500 people around the world. What we find is that phone calls are the fourth most common activity. Its only about 11 of the time. Instead, what theyre doing is browsing the web, doing texting. More and more about watching tv and things like that. All of those things really cry for a bigger screen. Because of that, we will see a huge hit for iphone six and it will give further legitimacy to the other large fonts. You look at korea, in the korean market, its already about 7580 of all their smartphones are the large size smartphones. , that is what everybody is using there as well. Would ask people, what is it you are thinking about buying over the next year . The number one thing people were interested in buying, a large smartphone. A large smartphone or tablet . Its like a pocket computer. Mentioned before, apple is the last to market with a large phone. Steve jobs was famous for saying, we will give the people what they want. We tell them what they want. Samsung is different. They do a lot of User Research and then come up with a phone. Samsung is very methodi