Transcripts For BLOOMBERG Bloomberg West 20150508 : vimarsan

For labor. Here is Prime Minister David Cameron speaking after winning another term in power. Prime minister cameron we will govern as a party of one nation one united kingdom. That means ensuring this recovery reaches all parts of our country from north to south, from east to west, and, indeed, it means rebalancing our economy, building that northern powerhouse. Emily cameron has reappointed George Osbourne for another term as chancellor of the exchequer. There are talks to raise about 25 billion in financing for its potential takeover of milan according to people with knowledge of the matter who say the extra cash would give temba the ability to increase its offer. Last month mylan rejected tevas 40 billion takeover attempt. A federal court says broadcasters will not have to turn over sensitive video programming documents as part of the governments review of the at t direct tv deal. The court ruled that the fcc did not prove that the confidential information from cbs, disney, and others was necessary to the merger review process. A. O. L. Shares are rising the most in 16 months. The Company Reported a 7 gain in First Quarter sales and turned a profit of 7 million. A. O. L. Has shifted the focus to Digital Advertising and sales at its platforms unit which includes Digital Advertising growing 21 . Now, to the lead. Hoover is willing to spend billions to buy one of the Worlds Largest digital mapping services. The New York Times says uber has submitted a bid of up to 3 billion for nokias mapping business known as here. Nokias map business has an 80 marketshare for built in car navigation services. Ubers bid is competing with another one from a group of german automakers including b. M. W. , audi and mercedesbenz. The automakers are also teaming up with the chinese Search Engine on their offer. So why are all the Companies Bidding for nokias maps . Joining us, our bloomberg west editor at large cory johnson and with me in the studio the mapping expert managing director of a Consulting Firm that helps Companies Integrate maps and location into their businesses. I am so glad youre here today. We are all wondering what is so special about nokias maps. Mark its been interesting. Since they announced theres been a flurry of rumors about who might buy them. It goes to a couple things. One is the map data is reamey key here. Theres just not that Many Companies that own map data of the world. Emily how Many Companies . Mark four. Google owns their own. Theyre doing their own thing with it. Nokia has here. A company in pompom in amsterdam and then an open Source Community called open street map. Those are the only options. Its scarce and also super important. Emily all of the maps, the digital maps we see are from one of those four companies . Marc basically. There are other regional providers and other types of maps and most of the maps you see in your car, on the internet, on your mobile phone comes from one of those four places. Emily uber uses these maps already but why would they want to buy them . Marc a lot of people have different reasons. I think thats the interesting piece to figure out whos a head. Uber obviously is building a huge logistics business. If they can understand the map data and how people move around that better than their competitors they build competitive advantage around that and that would be the rationale for them. The rationale is different for others. That makes it interesting to watch. Does the kind of data change . I remember looking at this when i was looking at garmin 10 years ago and it was amazing there were a lot of other Companies Making devices but not a lot of providers of the data. I wonder if the data, itself is different. Marc cory, that is a really important part of this. The needs are breaking into two different groups. You have the general mobile internet guys primarily around local search. They want maps to show where people are, find places, things like that. On the other hand the automotive guys are really trying to move beyond the navigation that you might have in your car today to really High Precision navigation where theyre looking at things like what lane are you on and High Precision things that lead to Autonomous Vehicles ultimately. You have this data set being pulled in two different directions. And so youve got the automotive guys with their requirements and you have the mobile internet guys with their requirements. One way to look at this is what do you get if you buy here . The other way to look at it is what do you lose if someone in the other camp buys here . Because theyre unlikely to invest in the technology that you want. Marc you didnt mention apple. Why not . Well apple obviously has built a huge mapping effort since they sort of stumbled a couple years ago. They built a really big team, hiring a lot of guys. Apple right now is built on pompom maps. Theyre using that and as far as the publicly announced share which is very little thats the plan. There is a lot of speculation that apple is building their own mapping data. Its a huge task. Google can it. It surprised everyone. Its a very big task. But, you know, apple certainly has the resources to do it if they want to. Emily how long does that take . If apple is coming from so far behind how many years would it take . Marc it is in years. Google started oh, i think the ground truth project in about 2007 2008. You could argue theyre still building it out. It takes years. I think that becomes an issue for companies that havent started in this to start from scratch and build your own is a long long process. Emily talk about the specificity of the data. There is a difference in knowing what street youre on and what lane youre actually in on that street. Right . Marc yeah. Emily who has that very specific data . Who is the furthest ahead there . Marc think of it as three layers. One is display maps. This might be what you see on a search thing when youre looking for something, you want to find where something is. The next level is the data that allows you to navigate which says you might be able to take a left turn here and not there. That stuff is fairly common in most of the data sets. The highest level is the thing theyre calling h. D. Maps, the lane guidance. And thats going to automotive navigation. Really only two companies are working on that seriously. Google is and nokia here. So if nokia here goes either to an Automotive Company theyll focus on it but if they go to say someone in the mobile Internet Business that may fall away as part of their focus which puts the automotive guys in a real issue. Emily why would Companies Want that data, what lane theyre in. Beyond that is there another reason . Marc. The services are more and more complex. One thing the automotive guys are looking at is the car is the last largely unconnected device out there. They see it changing dramatically in the next few years. The question is who is going to control that the better User Experience will control that. I think the pressure is coming from the googles to be put on the automotive guys to win it. The lane guidance ends up giving you a more concrete experience of where youre going, and as cars start to speak to each other you get into traffic related issues. So theres a big push on that. But its very hard to do. Right now its too vague to figure that out. Marc yeah. Gps is one of many technologies that deal with positioning. Theres a number of others including dead reckoning and even in the mobile world using sensors to position yourself but i think that part of it, of sort of understanding with precision is where you are is one of the key things. There are things happening in the u. S. Gps is a u. S. System. There are other systems in europe and russia. And as those evolve they will improve the accuracy as well as combining with other sensors to get better information on the actual location. Emily why would the german automakers want to partner with bydu other than its a big company . Marc an interesting question. The german automakers are interested in the High Definition maps part. Right now they run, they are one of the major map properties in china. We miss them sometimes in china. Massive map company. I think they have a strong interest. You can see it becoming a buyer in this because bydus maps while very good are in china. Some of the reports said theyll use nokia in china. I dont understand that actually. What would seem to make more sense is to get out of china into a broader worldwide market. Emily how do you expect this to play out . Marc the automotive guys have a huge amount at risk if they dont secure some position. Having said that the advantage the internet mobile companies have is theyre growing so fast they can think about the company theyre likely to be in two years and it might be a very Much Bigger Company and could justify an investment the automotive guys may not be able to make. It is a tough one to call. Emily ultimately if say uber who i would think is the underdog, would you agree . Marc cr. I think uber has a strong case for it. I dont know that i would put them in the leading position. Emily right. How would owning these maps change uber . Does it make uber more scary . Marc it gives uber the ability to really unrstand how people move around in the world. One of the things we see is in the beginning maps were the data you were interested in, how to get places. Now the ball haul on data. Where people are going. Where theyre going. Where theyre moving. Uber launched uber pool where they want to pick up multiple people on a ride. Knowing how people move around and the trends is one of the key parts of data inlaws is driven back from maps. I think thats what uber is really looking at. Emily you are the mapping guy. You are the mapping guy. Ive learned so much just in the last five minutes. Managing director, well have to see how this plays out. Thanks so much for joining us. Coming up, the clock is ticking for the u. S. To change over to chip and pin technology. What are the road blocks . Next on bloomberg west. Emily this is bloomberg west. Im emily chang. Up next we take a look at plans for Chip Technology in the u. S. And after that talk to the 23yearold who took on United Airlines by helping people book cheaper flights. First though a check of your Bloomberg Top headlines. Shares of bow jiang ls are popping today as the Fried Chicken and ham and biscuit chain goes public. Bojangles raised 140 million in the offering. It joins other chains like pot belly and shake shack in going public. The Illinois Supreme Court has rejected the states plan to fix its 111 billion shortfall. The court said the law which sought to cut costs of living increases and boost the retirement age violates the states constitution. The state had argued it could enforce the law because it is in a fiscal emergency. Well october, 2015, is the fast approaching deadline for visa and mastercard to adopt e. M. V. Technology otherwise known and chip and pin for retailers across the u. S. What are the potential road blocks . We have more from new york. I jutcht got i just got new credit cards and they had chipandpin technology embedded. It seems the shift is happening. I guess we can go shopping then. We can. Lets do it. Maybe come back next week. This is a fascinating change going on here particularly in america right now. The vice chairman of risk and Public Policy joins me right now to talk about this. Ellen, i think that people dont realize how big a deal this is. Where all of the merchants in the u. S. Now have, how does this work . Theyll have liability if they dont accept this chipandpin technology at their sales locations . Ellen well, they are in the process right now of rolling out those chip terminals. If you look around you youll see the little slot where you put your chip card in about onethird of the terminals in the market today. Not all of them are activated. Start looking for those today. Merchants will be in a position to offer a much more secure payment experience to their card holders. Why has this taken so long in the u. S. . One of our colleagues is from across the pond and says whats the matter with you americans . Why has it taken so long to adopt this . Ellen a lot of people ask that question. The answer is about a decade ago a little bit more, maybe 15 years ago, the u. S. And europe adopted different paths for controlling fraud so the u. S. Has been the most advanced country in the world with Predictive Analytics to prevent fraud at the point of sale. Youre familiar with that where your bank will call you because they note a suspicious transaction. This is a big data application doing that. Meanwhile, europe decided to adopt this Chip Technology. What were seeing now is the two are cop verging. Converging. Whats visas role in pushing this change along . Ellen well, of course, as you mentioned we set up the structure in 2011 with an incentive that the party with the weaker technology will bear the risk of fraud. So if the issuer hasnt issued a chip card the issuing bank that sends you the card will be the one who pays for fraud. If the issuer has issued a chip card and the merchant doesnt have a term ninl then its the merchant. We set up that structure all the way back in 2011. Its going into play in october, 2015. But very importantly were investing a lot of time and resources into educating, consumers and merchants, about how to use the card, how to implement the technology, and thats what were kicking off for Small Businesses especially this month and Small Business month. This has to lead to a big boom of spending by merchants by buying new terminals. Ellen well, i suppose thats right. As i said, for a few years the terminal manufacturers have been sending out the terminals anyway. With the Chip Technology enabled. Its more about the back end, the message processing and the merchant environment they have to invest in now. Luckily for small merchants they can get terminals that are plug and play and available for less than a hundred dollars. Do you think this is an advantage for visa and that visa will gain more marketshare as the change takes place . Ellen not really. The whole industry is aligned behind this initiative so our competitors, ourselves, large banks, merchants associations have formed a Security Task force and are moving in lock step to get this done. We all believe that security is paramount for the payment system. Cool stuff. Really interesting. Ellen richie visa vice chairman of risk and Public Policy. Thank you. We appreciate it. Emily coming up next, why did United Airlines sue a 23yearold . We take a look at some of the secrets of how Airlines Price their flights, next. Emily this is bloomberg west. Im emily chang. Back in november United Airlines sued a 23yearold who started a website that helps people find cheap flights. How does it work . Well, a lot of airlines use whats called a hub and spokes model for planning flights. Planes lay over in regional hubs before going on to other destinations but what if your real destination is actually the lay over city . Skip lagged helps people find those routes where you can hop off the plane during the lay over and you dont have to take the final flight. Earlier this week uniteds lawsuit was dismissed but it doesnt mean their fight is over. Skip laggeds founder joins us from new york with more. So youre the 23yearold guy they sued. I imagine its good to have united not on your back. Are the legal problems over . As of right now, there is no lawsuit against me but im cynical. Well just have to see what happens next. I dont think its that easy. So how does this strategy for finding flights work . So, hidden city is where your destination is a layover for some other destination. So lets say from new york you want to get to miami t might be cheaper to book to tampa with a stopover in miami. So you just take the fillet you need and skip all the flights after. Emily now this idea isnt new. I mean, i guess it sort of makes sense. Why are the airlines so against it . Why are the flights more expensive to go just straight to San Francisco rather than to lay over in San Francisco . It has to do with market competition. The Airline Might have a strong hold on new york to San Francisco whereas they might not have a stronghold on San Francisco to burbank. So they can charge whatever they want for new york to San Francisco and then charge that for the burbank flight and this just has to do with how the markets work. They want to maximize their profits and theyre against this because this is this is sort of a weakness to how their pricing model works. Emily the vast majority of travelers taking a look at some surveys think this is a perfectly legitimate way to travel even though the airlines dont. Im curious about the technology that you built. How difficult is this to do . Is it something that any of us can do on our own without using skip lagged for example . So the way savvy travelers if you do it before say to get the definition to search on other websites so new york to miami for example they will try to guess, new york to tampa and search it on their website and it would be a very tedious process. But on skip lagged you just search new york to miami and in just a couple seconds you get your results. This is why airlines are against it so quick that its now brought to the masses really. Emily any other tricks you found to find cheaper tickets . Yes. I also for example have noticed that it can often be cheaper to book to arbitrary one ways rather than round trips so when you search on my site i also try to combine arbitrary one ways and it tells you to book the departing and returning separated also for cheaper fares. And there are miscellaneous tricks such as not booking for groups, rather booking for individually Like Airlines will sometimes mark up the prices if they see that, for example, you might want to travel with family and. Emily boy. They dont let us off easy. They let you off for now. Thanks so much for joining us. Well check in with you in a few months and see how everything is going. Well be right back with more of bloomberg west. Nology, and the future of business. Lets check top headlines. President obama visits nike headquarters where he pushes for a Trans Pacific trade deal. Heres the president speaking earlier today. President obama if we dont write the rules for trade around the world guess what . China will. And theyll write those rules in a way that gives Chinese Workers and chinese businesses the upper hand. And locks American Made goods out. Emily many Congressional Democrats are opposed to the trade deal. The Baltimore Police department is now under investigation by the justice department. Heres attorney general loretta lynch. Attorney general today the department of justice is opening an investigation into whether the Baltimore Police department has engaged in a practice or pattern of violation of rights under federal law. This will begin immediately and focus on allegations that Baltimore Police Department Officers used Excessive Force including deadly force, conduct unlawful searches, seizures, and arrests, and engage in des crim nah tri policing. Emily the citys mayor had requested the probe. Riots broke out in baltimore last week following the deaths of a black manfredy gray in custody. Police custody. Disney espn will not renew the contract of bill simmons, a popular sports columnist. Espns president says it was time to move on. Espn says it remains committed to the website founded by simmons. Ericsson has sued apple in three more countries germany, the u. K. , and the netherlands. Ericsson accuses apple of using its technology in products without a licensing agreement. Apple had been paying royalties to ericsson before a license expired in mid january. A lawsuit has also been filed in the United States. Well, while apple and ericsson battle it out in court over Patent Infringement new legislation is before congress in an attempt to reform the current u. S. Patent system which is by many counts broken. I spoke yesterday with the head of the u. S. Patent and Trademark Office who has been spending a lot of time in sill convalley speaking with the Tech Community about the new reforms. Take a listen to why the director is focused on input from the Tech Community. Im here in the Silicon Valley to meet with many of the companies. Recently congress has introduced some legislation related to patent reform so its critically important we get the feedback from our innovating companies to ensure we arrived at a piece of legislation that is balanced meaningful, and consensus building. You were deputy general counsel at google for a long time. What does a company like google want in patent reform . Michelle i cant speak on the specifics of what google may be looking for but i do hear from Many Companies in the Silicon Valley and there seems to be a desire to curtail abuse of Patent Litigation to create the innocent i ever that if you are a party in a patent lawsuit there are incentives to behave reasonably in the through the streamline some of the discovery costs and create a level Playing Field for all innovators. Emily i was looking at a study from Price Waterhouse cooper. Patent trolls are responsible for 67 of all patent losses filed. Is that true . Michelle i dont know if thats the precise number but they are certainly involved for a number of lawsuits that are being filed in the country. Emily if that is even close to true that means the majority of patent lawsuits are coming from people that dont actually produce anything. Michelle that may be true. Emily that sounds like a big problem. How big a problem are trolls in europe . Michelle so there are, i dont like to use the word trolls but focus on abusive litigation. If you ask 10 people what their definition of patent control is you might get 10 different answers. The administration is focused on curtailing abusive litigation. Abusive Patent Litigation is the assertion after patent against an operating company with very vague or virtually no information on the reasons for infringement asking the company whos in receipt of the threat, dont look at it too hard but you know what . The cost of litigation for defending a lawsuit will be far more than what im asking for so, you know what . Why dont you just cut me a check for an amount less than the cost of the defense and well call it a day. Emily has the Patent Office been too easy on people applying for patents . In awarding too many crappie patents . Michelle i dont think so. I think the u. S. P. T. O. Has done a very good job in issuing quality patents especially with so many. The examiners work very hard. It is a very tough job. Innovation and Technology Changes by the day. It is a difficult job. That said, one of my main initiatives as director of the United States patent and Trademark Office was to announce an enhanced Patent Quality initiative. With all the conversation going on about abuse of Patent Litigation and also now that we are in a firmer financial situation due to the fact that we now have our own authority and also having been a user of the patent system i recognize the need for the u. S. P. T. O. To really issue the very best quality patents possible. Emily is there a legal loophole though, the fact that the majority of patents may be filed by patent abusers . Michelle i wouldnt say the majority of patents are filed by patent abusers. I dont know the statistic because its hard to find what is an abuser or not but many, most of our patents i have to think or many are filed by hard working, Innovative Companies who want to recoup the cost of their investment. They invest time and money in developing a technology. They want to bring the product to the marketplace and the patent gives them excluesary rights for a limited period so they can recoup their investment. It is an engine of americas economy. It is a necessary part. Emily you dont think trolls or whatever we call them are holding back innovation at Companies Like google or apple or facebook that may be applying for legitimate patents. Michelle abusive litigation has a cost to society. It means that companies are sending money defending against Patent Litigation when they could be spending it hiring engineers or investing in research and development. It is particularly concerning when the companies are small Start Companies thefment have a limited amount of Venture Capital funding they raised. They just got off the ground. Theyre trying to hire engineers, develop patents, get products to marketplace. If you have to spend from 1 million to 5 million in a Patent Litigation defense thats on an abusive assertion of patent money they dont have to spend. Thats the focus of this administrations support of legislation that we hope to get on the president s desk this year. Emily you said recently the Patent Office is now financially secured. Does that mean you have more money to hire all of the examiners you need and get the resources you need to stop the abusers . Michelle the primary goal is to issue patents and register trademarks. In some sense the abuse is occurring in the courts. We do advise the administration on intellectual property policy including the policy related to abusive Patent Litigation. Where the fees and the being in a sounder financial situation, i wont say a completely secure forever after but a sounder financial situation helps, is that were able to focus on an issue such as the enhanced Patent Quality initiative and also we have proceedings at the Patent Office that allow the public to bring back patents to the office that have already issued and allow technically trained jurists, a panel of three, to reevaluate the validity to see if the patent should have issued. We have the ability to take away some patents and remove them from the system if they should not have issued. Emily as i understand it some patents have been invalidated that if the apple samsung was big, apple samsung case were to go back to trial samsung would win instead of apple. Is that the case . These invalidations could have big implications. Michelle they can have broad implications for companies. If youve got a patent against your company and you can invalidate it at the United States patent and Trademark Office the cause of action is gone with regard to that patent. So it was designed that way by congress. Providing a faster, more cost efficient means, an alternative to District Court litigation for the Expert Agency to reevaluate the patent. It does have broad business implications. Emily would samsung have won . Michelle i dont know. There were so many patents involved in that case who knows . Emily that was the u. S. P. T. A. Director michelle lee on congresss efforts for patent reform. Well hear more from her and her push for more women in the stem field and coming up shortly well dive into facebooks focus on Small Businesses. Coming up next we continue our conversation with u. S. P. T. O. Head michelle lee about how to encourage women to get into technology and facebook talks to us about its relationship with Small Businesses. First though a check of your Bloomberg Top headlines. Nintendo is delaying the introduction of a new console focused on emerging markets. The gaming giant hopes to offer more smartphone titles. The games could come out as soon as this year. Tesla has already taken orders worth 800 million in potential revenue for its new storage battery for homes and business which were announced last week according to figures compiled by bloomberg business. Thats nearly as much as the company took in from car sales in the entire First Quarter of this year. Toshiba has withdrawn its earnings forecast for last year and will naught pay a yearend dividend after it found improper accounting on infrastructure subjects. Toshiba is setting up a thirdparty committee to further investigate the matter. Now, id like to turn back to my interview with the first female director of the u. S. Patent and Trademark Office michelle lee. After spending nine years in the Tech Industry serving as deputy general counsel of google, lee focused her efforts on improving the patent system. Now the u. S. P. T. O. Is working to encourage more women to enter the stem field. Listen to why michelle lee is focusing on this issue. Michelle i was born and raised in the Silicon Valley. All the dads on the street i grew up on were engineers and they invented things. They filed for patents. They started companies. Some of them succeeded and some did not but for those that did they revolutionized the world and the way we live. I helped build a radio with my dad in our living room and i went to m. I. T. And studied Electrical Engineering and Computer Science. Ive always had innovation and entrepreneurship as part of my background. I have to say when i entered m. I. T. We were certainly in the minority. Women were certainly in the minority. And when i went to grad school in the Computer Science department in the m. I. T. Artificial Intelligence Lab where i was a graduate student and a Computer Programmer the numbers were even lower. There are definitely fewer numbers of women app girls entering the science technology, engineering, and math field. As you move up through the ranks, too, young women i think tend not to stay in the numbers that perhaps they should. Emily why are they there so few people who at a young age would be playing with the radio with their dad . Michelle i think there are not enough young girls building radio sets so one initiative under way at the u. S. P. T. O. Is to encourage girls and, well, men, women and children, boys and girls, to enter the stem profession. And we have a summer camp where we have a bunch of kids who come, show up. Theyre given a pile of junk and asked to build something out of it, design it. Create it. Hands on. And to sketch out the basics of a patent. Its a priority for the p. T. O. To try to increase the numbers. Emily what do you think about the ellen pau trial . Michelle ive been following with great interest. I guess i would say i hope that it increases an awareness of the scarcity of women in technology in corporations and law firms, and i hope we all Work Together to try to increase those numbers. I think its a benefit to society. We cannot afford to leave behind any inventor or entrepreneur and i was sworn in on the stage of south by southwest. I have the privilege of being the first woman director of the United States patent and Trademark Office. And i would say 15 years into the 21st century im tremendously honored to have this position. Im delighted that president obama has selected me for this role. But there can be more women in roles like mine and in the tech sector and i asked the innovator, the creators, the entrepreneurs, commit with me and make a pledge to increase the number of girls who are entering the stem professions and open your networks and mentor young women in their careers in science, engineering, technology, and math. Join me. Theyre all Decision Makers and leaders in their companies. They all make hiring and promotion decisions, and they create corporate culture. So they are in a position to be able to influence and improve the current situation. Emily so, so important. That was u. S. P. T. O. Director michelle lee sharing her insight on getting more women in technology. Well 80 of facebook users are connected to a Small Business. So whats the social network doing to keep these companies happy and buying ads . Next on bloomberg west. Emily this is bloomberg west and im emily chang. 40 million Small Businesses using facebook could play a big role in boosting ad revenue. The company is investing in its Small Business audience by launching specialized support features like live chats and setting up meet and greets in major cities throughout the u. S. We caught up with facebooks Small Business v. P. To find out more about the social Networks Strategy for engaging local businesses. Dan Small Businesses are really important to facebook. Something almost 80 of people on facebook are actually connected to at least one Small Business something a lot of folks dont understand. So it obviously matters to the people on facebook. Weve been investing quite a lot not only in products but also for national Small Business week. Recently we announced our boost your Business Program an expansion, which is getting out from behind our computers and mobile phones and going to see Small Businesses in their tunes and communities. The key element of boost your business is a facetoface education with facebook experts at more than a few dozen cities around the United States. Emily how has that changed engagement between Small Businesses and facebook . Dan were seeing great momentum in Small Business on facebook. Just in the last year weve seen growth from 30 million pages to more than 40 million Small Businesses now active on facebook. I think one of the things we learned is as great as our online tools are and well continue to build all the best online tools we also see that being able to meet with Small Businesses face to face, being able to provide greater support has been a huge help. Obviously we cant reach all of them face to face so weve also ruled out a series of learn how videos as well as live chats. Emily how do Small Businesses use facebook . Dan with more than 40 million, they are using it lots of different ways. One of the ways were starting to see a lot more engagement with Small Businesses is theyre realizing it is not just about driving likes and clicks and shares but real business results. Theyre using some of our new mobile tools, auto play video and other things to tell their marketing story the way they might have been telling it on more traditional media a few years ago. Now they realize facebook is the place to reach consumers on mobile devices. Emily how important or popular is video among Small Businesses . Dan this is a pretty surprising statistic when we first saw it. More than a million Small Businesses have actually posted videos to their page. I think a lot of folks when they think about video think about big, branded, super bowl type commercials but what were seeing is Small Businesses especially with the advent of smart phones are able to produce and cut their own videos quickly. There was a great example last week. An independent watchmaker mvmt actually started rolling out 15 and 16second short videos of people using their watches and it turned out to be a really Good Marketing Campaign for them on facebook. Emily on that note mark zpwuckerberg said on the Earnings Call he is paying more attention to the quality of ads on facebook. How did that affect how Small Businesses can they produce something of the same quality a big brand can . Dan we think Small Businesses are really important to driving quality ads on facebook. With more than 2 million advertisers we have a huge choice of which ads we can show to people and we know that people want to see ads targeted toward them. So when you can see an ad from a local business or a watchmaker if youre particularly interested in watches rather than potentially a national campaign, you might actually find that Higher Quality and more engaging. Emily facebook Small Business Vice President there dan levy. And it is time now for the b. U. S. Spice where we focus on one that tells a whole lot. Its a friday t. G. I. F. , right . Absolutely. I thought you were going to go to your favorite because its friday. You can smell the finish line from here. Yes. 10,409000 fit bit devices were sold in 2014. The company is on pace to sell more than a billion dollars worth of these things in the current calendar year. We learned these numbers from their filings. They filed an ipo last night and it looks like a monster deal because the business is growing super fast and very profitable and something to see. Emily im curious about whether people are wearing about half are in washing machines. Mine is in my desk drawer unfortunately. How about you . Mine is on my arm as always. Emily all right. Well, we also have Something Else to talk about. We do. Emily you are going to be spending a lot more time on the radio, right . Tell us the time. Bloomberg advantage. Well be doing three hours of radio with the lovely carol masser at 10 00 on the east coast, 7 00 a. M. On the west coast every day so a big change for me doing all that radio with carol. Great stuff. The drive time in the bay area is going to be fantastic ts on in new york, boston. Of course thats on Sirius Satellite Radio as well. Emily i listen to you when im driving in. We have something to announce as well. This show is going to be moving to a different time 4 30 p. M. Eastern and 1 30 p. M. Pacific. Then again 8 30 p. M. Eastern and 5 30 pacific. So i hope everybody will tune in to catch us at our new times. Good stuff. Emily all right. Thanks so much. Thank you all for watching this edition of the show. Have a wonderful weekend. Catch us on our new time next week. Lie welcome to the program. We start with the store a deflategate and the legacy of tom brady. Joining me is peter king of sports illustrated. Peter what i am an easy about is one day when tom brady dies, his obituary in the New York Times, if the nfl comes down hard on him in this case, the second paragraph is going to be about how the nfl slammed him for cheating in 2015. And when i read the 139 pages of