Transcripts For BLOOMBERG Bloomberg West 20160709 : vimarsan

BLOOMBERG Bloomberg West July 9, 2016

Where a lawsuit was filed. The state Department Says the u. S. Expelled two russian officials in response to an attack on an american diplomat in moscow last month. The man was attacked by russian policemen outside the u. S. Embassy. A state Department Spokesman says the attack was unprovoked. Russians claim the man was a cia agent and refused to provide identification. Nato says the deployment of troops in four European Countries is an openended commitment that will last as long as necessary. Nato says it has tripled the size of its response force. Global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Bloomberg west is next. Cory i am cory johnson. This is bloomberg west. America reeling from a night of violence in dallas. Five Police Officers dead, seven wounded, and a robotdelivered bomb used to kill a suspect. We will explore the complex role of technology in this tragedy. Is there a place for apple in a world of four dollar phones . A body blow for theranos as ulators strip its labs a peaceful protest in dallas on thursday contorted into a night of violence. Five Police Officers are dead and seven wounded. Police officers ultimately using a robotdelivered explosive to kill the suspected gunman. In the aftermath, america grapples with questions about how and when police should be able to use new technology, previously only used in war zones. On the phone, we have professor seth stotten. An expert on police and technology and the rules that govern these things. Selina, let me start with you. You have a terrific story on bloomberg. Com saying this is the very first time that Law Enforcement has ever used Something Like this domestically, with the exception 1935. Move bombing in this does set an uncomfortable precedent. This is the first time we know of that a Police Department has used a robot to kill someone. These robots have been used before, mostly to defuse bombs, never weaponized. Does this set a precedent . This does not mean this might not be a sign for something to come in the future. There are a lot of concerns about what if defense manufacturers start to see a market for weaponized robots. If this does become a common use case, what does that mean . For cases that arent as cut and dried as this one . Cory if this one is even cut and dried. What is the state of Law Enforcement agencies buying this militarygrade equipment . It is a sad day. The world is going to change so much more dramatically in the next five years than the last 50 years combined. These kind of questions are going to continue. That bear in mind, particular robot was humancontrolled and was not autonomous. That is a very important distinction in giving Law Enforcement authority to do what they need to do, but the math is the math. There are 300 Million People in the u. S. , about 750,000 Law Enforcement professionals. Every mall, every campus, every school will have to rethink their physical security presence and strategy. The world is unfortunately going to get more volatile. Cory thats disconcerting. But then again, we need new technologies and new tools. We cannot continue with the same path. It will not scale. Cory the conversation about the use of technology, militarygrade equipment, whether technology or not, for Law Enforcement came under a lot of scrutiny after what happened in ferguson, missouri. I wonder how that conversation has changed over the last year in the legality of using these things. First, it is a conversation that goes back a long way, back to the 1850s when people were debating if officers should carry the pistols of the day. In some ways, the use of the robot, and the use of explosives raise new issues and new contexts, but the greater conversation about how police adapt to changing technology, and how they use force is a series of questions that goes back that just a couple years, but much further. Whether this is primarily a properly considered a militarized piece of equipment is up for debate. When talking about mraps or armored personnel carriers, they may have a role in domestic policing, but they are certainly militarized. Police have used bomb disposal robots for a long time and explosives in different ways for an equally long time. This is very much a new horizon for domestic policing. Cory selina, you write in your piece there have been prior uses of using these robots to drop chemicals to disable a suspect or examine a situation. Where have we seen this used in the past in less lethal situations . T the two big cases there was one used in a chemical situation in 2014. In another one, police were actually dropping a bomb. But in this case, using the robot as the weapon itself, this is unprecedented. Bill brought up a great point. These are not just killing robots, it is someone controlling it. That said, this raises questions about the security of the systems. What controls are there to make sure nobody could hack into these systems . Drones have been hacked into. Governmentowned drones, cars, computers. We have to make sure that when there is a robot with a bomb strapped to it that nobody can hack into it. Cory no kidding. It seems to me that the increased militarization of police force the day started with the debate about Police Killing an unarmed black man, then began with a peaceful protest, which led to more weaponry and ends with this robot. Wonder if the desire is just a purchase stuff to fix problems rather than fix policing, which might be the more appropriate focus. That is a tough one. Fixed policing is a difficult thing. Usually when you are trying to fix something, follow the money. If you look at the department of 600ses budget, its some billing, and we give our troops every level of advantage and i am ok with that. But the department of justice has no federal jurisdiction over the 19,000 Law Enforcement agencies, 18,000 private security firms. When you want a new submarine or jet fighter, you go to the secretary of defense and there is a whole massive establishment and complex to build a new product. In the Homeland Security space, there isnt. Other than a taser, a bulletproof vest, and a camera, in the last 100 years, name me massive improvements to our massive movements in improving the safety of our neighborhoods. There isnt. Because there is nobody in charge. That is where the private sector needs to begin to help innovate and provide new tools and technology. Cory Hillary Clinton just made some comments that i will echo. We must not vilify Police Officers. Certainly not. Is this use of Technology Uncharted territory, or is there long legal history that will ultimately guide us and the legal use when officers decide when to use lethal force . In many ways, the Legal Framework has been eclipsed. We seen that in legal policing, in the first modern use of deadly force case. Tennessee v. Garner. The Supreme Court pointed out that the commonlaw rules about using deadly force against fleeing felons no longer applies in part because technology has changed. The firearm had fundamentally changed the landscape of police use of force. As we get further and further into technological innovation, i and Autonomous Vehicles delivering Weapons Systems in various ways, i think that our Legal Framework will need to catch up. We have solid legal principles now. They are not always the best, but they are relatively clear. They are not well equipped to some of the changes that i will that we will see coming. Cory thank you, i really appreciate you coming. Thank you very much. Coming up, in times of protest and times of crisis. Protestors people are increasingly turning to Live Streaming social media. We will talk about the importance of Facebook Live and snapchat, next. Cory two years after widespread calls for police to wear body cameras is Facebook Live a personal body camera . Sarah, this is interesting. A year ago we talked about, hey, maybe this is a solution. They start selling these body cameras. We see this total failure of the thing where these cops wearing body cameras in louisiana it suddenly didnt work. In those cases the police have the videos and can decide not to release them fast enough. Cory at the same time, we have this case in minnesota where you have somebody using Facebook Live, of all things. Facebook live is taking an increased role in providing eyes to the world. Hours after she used that to broadcast the death of her fiance on facebook, it was used again in the dallas shootings. There were several facebook users streaming what was happening on the ground as shots were firing. It is becoming this use case for facebook that is much more serious than we have seen in the past. Exploding watermelons and the chewbacca mask video. All these things people know Facebook Live for. This is more like the equivalent of calling 911 when youre being attacked by the police. Cory and making a Public Record of it. What strikes you about the technology, the body camera case and the notion of Live Streaming . What is interesting about both cases is that you really see black and brown folks who historically might not have had an easy time of calling 911 when they need assistance. You really see the reliance on emerging technologies to get the word out and get help. I think, obviously the woman in minneapolis did not feel safe with cops all around her. She thought that Facebook Live or Periscope Technology was the only reasonable way she had to get help and get word to her family. What is so heartbreaking is that it was reported that the deceased mans mother was watching the Facebook Live stream. I can imagine how heartbreaking that must be, but it makes sense that if people dont feel safe, they will use technology to reach communities where they do feel safe. Cory Facebook Ceo Mark Zuckerberg took to facebook and posted about this. In a section he said, i hope we never have to see another video like this, like diamond reynolds. It reminds us of why coming together to build a more open and connected world is so important and how far we have to go. In terms of body cameras, i think i mentioned in the last block that there was a notion that the technology would save us. If we put body cameras on the cops, it would govern their behavior in different ways, so the few cops that are bad actors would not be that way. We are seeing that is not the case. Exactly. I think that body cameras and legislation that makes it possible to wear body cameras at all times is a great first step. But i want to push back on the idea that investing in body cameras will make us safer and fix our broken criminal justice system. Its not body cameras. You cannot just throw money at a new, fancy technology and fix the problem. If it does, it will be a bandaid. If Law Enforcement agents dont wear the cameras, or they convenientyly conveniently fall of, or theres no transparency in how we use them, its not going to work. I think it is a great first step, but in no way doesnt fix does it fix the problem of the broken system. That temptation to throw new technology at the problem is a bad one. Cory to the point, the other technology that is working seems to be Facebook Live, snapchat, and periscope. And in many ways it is protection. Having this moment livestreamed with an officer who acted out of turn, she is protecting herself from future abuses. The guy is being filmed and he knows it. Cory it is interesting that the technology that is really working is a technology thats open, and that the technology is the struggling technology that is closed. Thank you very much. We appreciate your time. Coming up, asias mobile market intensifying, we will dive into it. Next. Cory espn may start selling its own streaming package direct to consumers. It could have niche leagues and some college sports, but not the most popular items like nfl and the nba. Espn saw subscriber numbers dip at the end of 2015. The turner Cable Network looking to buy more sports streaming rights. Twitter already has the rights to stream thursday night rights. This week, twitter is on the ground at wimbledon, streaming live interviews and postmatch analysis. Its a race to the bottom in asias smartphone wears. We got news that india is introducing a four dollar smartphone. Apple is falling to fifth place in china. Joining us, julie ask and john butler join us from new york. Julie, we start with you. A four dollar smartphone . As you said, it is a race to the bottom. Apple doesnt have to win that race to the bottom. There are a number of ways you make money on smartphones. You can sell hardware. You can use it as a distribution platform. If you own the mobile os, you can monetize that data. Cory google certainly has. Apple is not going to go there. Julie right. Apple is nearly unwilling to use the data even to improve their own products without consumer permission. Cory it seems that what we have seen in technology is the ultimate bifurcation of the market, the top end gets a lot of profit and limited market share, and the bottom end continues to go to the bottom. Prices fall and the margins are garbage. The margins may be garbage, but the phones in general arent. They have got much better over the years. In a way, that is apples biggest problem. I dont think they need to worry about a four dollar smartphone. They need to worry about xiao me and other vendors who offer phones at low price points, call it 250 or less. Cory im going to push back a little bit. Do they really have to worry about xiao me, a Company Selling things at negative margin . How long will that go on and threaten their business . Actually, they are one example that made a dent in china. They are moving way up that curve in terms of features and processing power. They are riding on apples coattails. As they move higher and higher volumes, the component costs are coming down and enabling the smaller vendors to take this in margin, but move some volume by coming out with these featurerich phones. China is not the same premium market as it is in the u. S. With a low and is not as developed. I would say that the u. S. Is less price sensitive because of higher average income. As it is in the u. S. Where the low end is not as developed. I would say that the u. S. Is less price sensitive because of higher average income. Xiao me is a bigger problem in china than it would be in the u. S. Cory what do you think about these lowcost providers . I do not think they are an in apples target market. Someone who can afford an iphone is typically someone in the middle class. Those households in india and china are in the tens of millions. I think apple wins not only when somebody buys an iphone but they are able to perform other products within the ecosystem. Cory and maybe go down the iphone looms much larger as an important device when you look at those markets. Julie the other thing you think about, the smartphone is a platform. If apple is not able to sell content and stream video, it limits their upside. And one of the other wildcards is the smartphone as a payment platform. Thats going to become a very large source of revenue as we look forward, for someone. Cory that is a place where apple has a device, that have they have apple pay, but they dont generate much revenue if any. Not yet. But apple pay is magical and is it is just a matter of time before consumers say, why am i carrying around my wallet . Cory magical. When i go for a run, i can have my phone. I dont have to have a card. I can stop for a few beers on the way. Julie when i was in london last week, i paid for 80 of purchases with my watch. Cory did you really . John, apple pay . I think it has great potential. There is rumor that the next generation of the watch is going to be free of the smartphone. When you talk to retailers, a lot of them say, when they look at who is using apple pay, it tends to be people who have the apple watch. I dont have the watch but i do use apple pay. I think it is just a matter of time before we see that Service Start to ramp up much more strongly than there is now. Cory for the record, i do not actually stop for beers when i am out for a run. [laughter] john butler, i will stop for beers with you anytime. Thank you very much. I appreciate it. Lyft is getting luxurious. They are announcing a new upscale option. The latest swerves in the ridesharing wars, next. Get ready for the rio Olympic Games by switching to xfinity x1. Show me gymnastics. X1 lets you search by sport, watch nbcs highlights and catch every live event on your tv with nbc sports live extra. Im getting ready. Are you . X1 will change the way you experience nbcuniversals coverage of the rio Olympic Games. Call or go online today to switch to x1. Taylor im taylor riggs. You are watching bloomberg news. Is mother of alton sterling denouncing the shooting of Police Officers in violence. Alton sterling is the man who was fatally shoot days ago in baton rouge, louisiana, by police. A fatal encounter. A family Attorney Says that the dallas killings were not caused by castiles death alone and that she wants justice for everyone. The justice department, including agents with the fbi and atf, are in texas working with local investigators. Lynch says this has been a week of profound grief and heartbreaking loss. Ag lynch to all americans, i ask you, i implore you, do not let this week precipitate a new normal in this country. I

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