Transcripts For BLOOMBERG Bloomberg West 20141118 : vimarsan

BLOOMBERG Bloomberg West November 18, 2014

Bidding process. They say they have identified possible misconduct, including theible bribery in awarding world cup to russia and qatar and referred the matter to swiss authorities for investigation. Grand threat and grand v isauto roman five pushing the game further, allowing players to have sex. This is a criminal setting, gritty underworld, and it is art. I embrace that art and its youthful. But lets make no bones about the environment in which we operate. We stand shoulder to shoulder with other major Motion Picture releases and Television Shows that explore a similar universe. He says he sees a market for both console games and mobile games. Spotify is moving ahead with its expansion even with taylor swift pulling her songs from the service. The cofounder says the streaming Service Plans to add 500 more workers to improve the spotify app and expand to more countries. He says spotify sees plenty of opportunities in the u. S. Which is already their biggest market. How manyead tesla cars are really hitting the road . Its a bit of a mystery as tesla makes more cars but fewer of them are registered to the u. S. Drivers will stop hedges and company in a study commissioned by bloomberg found tesla cars,red 21,008 hundred up 40 over last year. But new registrations only leaving9331, down 33 , the whereabouts of 12,490 cars unknown. Were they simply sold overseas . Tesla says a majority of its thirdquarter sales came from america or have they simply not sold them all . Cory johnson is here with me in the studio and kyle stock is in new york. You have been tracking tesla sales closely. What happened to these cars . Europe is definitely a big story. They are selling more there. The company is not super keen to give a playbyplay every month. It is fair to say a lot of them are there. The factory and dealerships here in the u. S. Isnt quite as straight and smooth as the company has let on bus far. Let on the us far what is your take on this . Why would tesla exaggerate the number of cars sold . In the history of time, when we see companies who want to demonstrate great gross margins, they push a lot of product through the factory because it improves gross margin. It is worth noting the metric wall street pays attention to more than any other for tesla is not revenues, its certainly not the losses, its the number of cars they make. Sold a dont say they lot of cars are made a lot of cars, the stock plummets. If they say they made a lot of cars, the stock goes up. But it leaves the question of where are the cars going . What has teslas response been to the story . They are not keen to talk about registrations will stop thats not a theme that comes through. A talk vaguely about orders and deliveries, thats the number they give to the street. Strong, deliveries are as is their take has always been a demand is unfaltering and thats the most important thing. As a bring production up to meet that demand, the polls should be happy. Is not musk says demand a problem for them, its actually production. Ok. He can say that but in our home state of california, we see teslas all the time. We live in fancy neighborhoods in Northern California where people have access to a car that cost 100,000. But their sales in california are down 43 yearoveryear. As the car gets longer in the tooth, that number the number is what the number is. They are registering fewer cars in this state and the cumulative number of cars is going up. But the growth rate is tanking. They are talking about new cars in the future. Announced new cars and its a problem for tesla. Us numbers about how big their backlog is. They stopped giving the number maybe it doesnt look as good or maybe it is that her. That number is great but what we can see, its not so good. There were a lot of peculiarities about where this car is being sold outside the u. S. Europe, 40 of european sales are to norway. Great dealsffered for people buying tesla cars there. They are facing a lot of headwinds and the car is really cool, but the marketplace is not embracing it as if it is a ford taurus or bmw five series. Those cars are selling so much better than tesla and increasingly so. They are genuinely up generally up and to the right, why dont investors call them out on it . There is a lot of momentum in the stock and everyone is pretty thrilled the production is finally coming out. They are excited about the new model, so you see people get out here and there as the numbers looked shaky but it is momentum stock and still an exciting company. It certainly a story that will that we will continue to follow. Ahead, huber is going after journalists, hiring is goingrs uber after journalists. One Senior Executive is raising eyebrows today. Thats up next. Im emily chang and this is loom request. Is uber targeting journalists . The Vice President said the team of researchers should dig up dirt on journalist critical of the company according to buzz feed which said that michael was particularly upset with the reporting of sarah lacy who has written several stories article of uber. In a statement to bloomberg west michael said the remarks attributed to me bored out of frustration over an informal debate over what has been sensational coverage of the company does not reflect my actual views and have no relation to the companys views or approach. They were wrong no matter the circumstance and i regret them. Said we spokeswoman have not, will not investigative journalists and have no basis in the reality of our approach. Joining me now is a bloomberg reporter who covers uber and cory johnson. This happened at a dinner in new york and the investigate and the Vice President thought it was off the record. The buzz the journalist said he was never told the remarks were off the record. What is your take . I think he probably went a little bit off the reservation and felt comfortable speaking offthecuff at a dinner, but you know who is in the room. The guy from buzz feed was not the only journalist there. Michael wolff was in the room, another journalist. This feels to me like an example of uber just not growing up. These sorts of things were maybe more ok when it was a little start up that was trying to move quickly and be seen as the underdog. But this is a 17 billion company and these executives need to act like adults. She describes the moment and set a chill ran down my spine. Getting out ofst their bath and pulling up their pajamas and the this company was willing to cross would affect him. Doesu think about it, uber have a lot of personal information about everyone who uses this service, journalists included. It is kind of scary. And there is a history from this from companies in silicon valley. There was a notorious scandal 2005ulep packard in about hundred were following journalists, going through their three pretexting, they were hiring people to pretend to be a person to find out about all the phone calls that person had made. This was a huge, huge scandal. And there have been companies that have gone after journalist in the past, so lets be clear this is not isis, this is not journalistseat to right now. But i wonder how much it does tell us about uber itself and this comes in the context of uber raising money at the same time its competitors are trying to raise money to say to their competitors and starve them of cash will stop this comes amidst is makings that uber fake calls to their competitors so they wont have a successful service. Is dumbt think uber enough to do that. The fact that he suggested this as an option in an informal setting is a little frightening. But i think the company is probably smart enough to not actually go down a strategy like this. This was even suggested as an option we are looking at photos right now of him on bloomberg west. He has been on this show in the past. He has admitted to calling investors who were interested in potentially investing in lyft and saying we are going to raise another round. Or the ride was an incredibly hot chick campaign in france. They are notoriously aggressive in their tactics, but this is certainly over the line. The French Campaign was different. That was a local team trying to talk to their local constituents. It was still a dumb idea to try to get people to ride with models and think that would be ok and it was a bit of a pr nightmare. Not another example of uber being able to keep everything under control will stop i thought delivering cats was just as dumb. It is not offensive. The anticompetitive stuff is serious. Going after journalists is that of trying to fix your business, running your business best to win, these are things other companies dont do. Its not common behavior in silicon valley. He has experience in washington and is an adviser to the pentagon. This is a dirty, political lay to go about running political way to go about running a business. As a politicalr campaign and we need to run it as such. And they just hired david lust to run their marketing. What kind of job does he have ahead of him . Hes going to have his hands full if the executive keeps saying stupid things like this. He cultivated a reputation of being a jerk early on which he says was necessary, but its a big, Important Company now and they cannot act like a little startup. What does this mean for uber customers . If they can say it and retracted that they are going to go after the personal information of one reporter, what does it mean for a customer they dont like or other Business Partners if this is the way they are going to run their business, its a serious change in the Way Companies are run here. He certainly a polarizing figure. To investors who absolutely love him and compare him to jeff bezos and the dedication to the mission. And then there are stories like thank you so much for joining us today. I obviously dont think this is the end of this story. Is trying to make exchanging money a snap. Find out why the photo sharing site is teaming up with square and how secure their new payment product could be. Welcome back. The at that make sure photo disappeared now wants to help you make your money disappear. Snapchat is partnering with square to offer snap cash a quick way to send and receive money from friends with your mobile phone. Snapchat users can open a private chat and hit a button to send cash using their card information stored on square. But will it be secure given snapchats prior Security Issues question mark joining us is the security atproduct june group. June group helps drive social ,edia traffic to sponsors brands like cocacola and mcdonalds. Used square cash in the past and its almost a too easy way to send money. What do you make of snapchat now doing this and how popular could it be . Has a lot of hurdles to get over. On the surface, you have two companies that could get something out of this. Forakes a lot of sense snapchat to want to give users another sense to give up the phone and use their application. They are drawing plans that are taking place on someone elses playground. The operating systems are owned by google and android and if they decide to compete in this area, and its a little different than Google Wallet and apple pay, but only a few days a few degrees off. Its going to be hard for them to gain traction with this. Snapchat says square will have all of the sensitive information. Does that include that it is safe using snapchats history . Yes and no. Snapchat does have a rocky history. They had a pretty major breach with lost user names and phone numbers. The plumbing is done by square and square has a good track record and may focus hard on it. But that does not put snapchat out of the woods. In fact, whats going to happen is if a user chat gets compromise, the bad guys are going to take the money and that falls under the responsibility of snapchat to keep track of it. Now think about when you login to snapchat, how strong of a password in those different controls if that falls apart, you are losing money and not just pictures. Course is trying to change things up with Facebook Messenger and theyve got the former head of paypal running that roddick. It is certainly something that makes sense and facebook has alluded to in the past. Trying tond twitter start these operations that have not taken off will stop what does it mean that snapchat has done it first . You are correct to point out the broader landscape and you have all these players wanting to replace the magnetic strip of our credit cards in various different ways, including a group of retailers that includes walmart, best buy and a number of others. Landscape and a big opportunity. I would not be concerned about being first but think about how its going to play out. You said it was so easy for you to use but it would not be usery not be easy as a to signup. A lot of users are younger users and they are not going to be too interested in putting in a credit card and put them a whole process to get rigged up with this. This partnership faces a lot of uphill battle. Those youngerk users might care about their security . Up until this point, it was just to send a picture. They are not going to think about all of those ramifications. There goes that money and for users that may not have a lot of money, having it all wiped out at once would be painful. Im interested in this because of my own personal experience with square cash but we will see how popular this becomes. Tank you for joining us. Former blackberry ceo Torsten Hines joins us to talk about his new gig of ceo of power match. Will he have more success than he did at blackberry . Is 26 minutes past the hour. Lets get you caught up in how stocks are trading today all Healthcare Companies leading that rally and trading in the benchmark. Highlighting some movers for you shares of the Advisory Firm by the for the most most since april after announcing it plans to sell more shares. Shares have climbed since its ipo seven months ago and check out shares of Urban Outfitters falling to its lowest levels since 2012 after it reported thirdquarter earnings that missed estimates. We will be back in two minutes. Welcome back to bloomberg west. Former blackberry ceo Torsten Hines has a new job he left blackberry after failing to reverse the companies slumping market share and now hes on to his next challenge taking over the reins of power matt technologies, an israelbased company that enables Wireless Charging of mobile devices. Betty liu sat down with him to speak about the new role. What you look at communication and wireless has , we going through, we call serve the we surf the internet where ever we are, but then you get to the point and say do i have enough juice in my battery and how do i keep going . We still have these people in airports looking at power outlets to plugin. I think we are on the verge of serve of solving the next egg problem by allowing people to wirelessly charge wherever allowingbig problem by people to wirelessly charge wherever. And they can do it simply and easily. Table, put it on the it on the surface and here you go. Andt is a Great Innovation its also one of the frustrations of investors with this company who felt like it had such a big market potential but generating very little revenue. You going to take power matt to the next level . Startups go through these various phases of inventing something in changing directions. Its never a straight line. Blackberry was not a startup when you take it over. Years youck on the are at blackberry, do you regret anything . Is there anything you would redo again . I dont regret the time at all. Started. Citing when i blackberry invented it. We rose the revenue to about 10 billion. That was lots of fun and then things get harder. Years were quite rough. But someone had to do this. We had to put it in a whole different context, a very dramatic and strategic change. If you look back, it is always 20 20 hindsight. Point, you have huge pressure. The new Management Team can execute upon and i wish them all the best. Platforms carry them into the future and they really manage to turn that company around. Think john chen is doing a good job . This is not what my position is. I think his team is continuing that path on a very disciplined execution, so fingers crossed they are going to make it. You mentioned the last two years were very rough. What were people not understanding that you felt like was the toughest moment for you . In order to change the Business Model of blackberry, you have to separate the hand set there was a monthly recurring fee. In order to become an enterprise player and get some play, you have to break it up. It sounds easy but it was a whole new strategy of how you develop the product and enterprise. I think i could say at that time it was not well understood or well communicated, but that was the crucial element of the strategy i laid out and we executed against. Where do you think blackberry has the biggest opportunity . Is it in emerging markets or software . Clearly like barry has a play an enterprise. It is the most secure platform, the most modern operating system, that gives blackberry room to explore things way beyond just handsets or enterprise. Think about this topic we all talk about the internet of things or the internet of everything that business will need what blackberry has because you want all of those parameters to be secure. Secure onis the most the planet on this one . I think the team is executing in doing what they need to do. What about the blackberry classic . That goes back to the leverage of the original blackberry. Would you buy it . I bought a passport. I know during the last few years you were at blackberry, a lot of talk about selling the company, whether it remains independent, given how it is slowly being turned around, should it be for sale or should he give blackberry a chance to grow as an independent company . I cannot really give advice on that. After one year, i am probably too distant from that. Is a card the board will have it is a decision the board will have to make and i will watch it, but i dont need to give any advice to the board will stop they will do the right thing. It sounds like you are a blackberry loyalist. Absolutely. No iphone . No iphone, no other thing, just blackberry. Meet created from plants actually go mainstream . We will take you inside a company that says it has come up with a meat substitute that tastes and feels like the real thing, next. Im emily chang in this is bloomberg west. Down, samwinding grobart got a look at the technologies that may disrupt our life in 2015. Today, we

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