Hes scheduled to meet with relatives of the officers who were killed and wounded. The president will host a meeting with activist and law enforcement. Global news 24 hours a day powered by more than 2600 journalists around the world. Im are crumpton. S is bloomberg for top this is bloomberg. Emily im emily chang and this is bloomberg west. Is tesla facing an investigation by the sec question mark we will ask what is going on and who knew what the autopilot crash. Pokemon go is sending nintendo stocks soaring. Does it open a new chapter for japans story Gaming Company . And facebook slapped with a lawsuit for a billion dollars in damage, new questions about how platforms should monitor can vacation. Tesla shares under pressure after hours with the dow jones reporting the sec opened a probe into tesla after the company failed to disclose a crash apparently caused by the autopilot feature before elon musk and the company sold shares. A tesla spokesperson said tesla has not received any communication regarding this issue for our blog post provided relevant information about the issue. I want to turn to cory johnson theres a lot happening. And i was on vacation, so fill me in. Three separate accidents . In threeee accidents states. The issue at heart is that tesla did not make a disclosure about the accident itself when they knew about the accident. They told reporters they knew about it shortly after a fertility in florida. After the fatality in florida, they said they knew about it shortly but did not tell investors before they sold 2 billion worth of stocks. 600 million of that was elon musks stock. But they changed the risk actors after the accident, maybe after they knew about it but before they told us about it. Listen to the brandnew risk factor there was a claims related to any misuse or failure of the technology we are pioneering, including autopilot could generate substantial negative publicity and would have material adverse effect on our business product and furthermore, we selfinsure against risk. In other words, they have no insurance to protect them from this writ. After this the talladega before they admitted knowing about it, they added this claim, so that is a concern. Emily so a hotel in florida in two other accidents that supposedly involved these self driving features. Tell us about those. Run through the timeline. They had ecotality in florida. They said they knew about it shortly thereafter. On the 10th, they added that it is a risk which might lessen their culpability, but they did not admit to the fact that it had already happened. Sell 1. 4h, they billion. Elon musk himself sells 598 million in shares personally. Then in the end of june, they tell the national highway Transportation Safety board about it and then we find out more with another rollover blamed on the autopilot. A 77yearold from michigan. Over this last weekend, another crash the guy said he was driving his car and it feared off the road into a wooden fence. The car got really banged up. I saw pictures online. Jones,cording to the dow there is indeed an investigation about the fact that there was no warning before the sale of stocks that this crash happened and they knew about it shortly after it happened. Emily there were no fatalities but there were injuries. Cory the one in florida was a rollover. In montana, the side of the car was sheared off by a wooden fence. I dont know what happened. Led to it. Ow what it is also worth noting and i dont think a lot of attention was paid to this, elon musk about thely tweeted driver killed in florida before hand because he put a video up showing how the autopilot work. His relationship with the driver, encouraging that driver rather than discouraging shooting video while you are driving is another concern as well. Emily cory johnson, i know you will continue to follow that story for us. To another story we are realityg augmented is coming to the masses. Nintendo out with a new mobile game and the app is taking fans by storm. It has nintendo stocks soaring. Bloomberg west looked at with the craze is all about. The quest of catching them all nintendo getting a boost from nostalgia. Just days after its debut, its the u. S. Rossing app in app store. It has been installed on over 5 of all android devices, beating out tender and rivaling twitter user numbers on android and beating whatsapp and instagram. All with just a limited release in the u. S. And australia and new zealand. Players chase mythical creatures in real world surrounding using their smart phones again uses the camera on your phone and Gps Technology to determine where you are standing physically in the real world and make pokemon virtually appear around you. They game was built by a google spent off capitalizing on cuttingedge mapping technology. Investors could hardly contain themselves. Shares of nintendo soaring in tokyo, the biggest gain since they began trading. But down from the 2017. Can pokemon keep up the momentum and restore their former gaming glory . Joining us to discuss is the cofounder of fusion. You are one of the foremost experts on augmented reality in this country. You have a nap that uses 3d technology. What do you make of the games success . Guest it is really phenomenal. For everyone leaving the applications out there, it is a big piece of technology with consumers. We were walking by the Ferry Building in san francisco. I dont think they were texting. What is your take on this . Guest it is interesting how social this game is. I think the popularization of augmented reality is a big part of the story but there is a sense in which this game is a real World Social Network for right there, they show flirting happening in the course of playing the game in the real world. That is really in the way they have incorporated tapping data and a lot from google of interesting and chasing of finding of cool things and meeting people in the process. Emily i spoke about the about thisf nintendo game. Listen to what he had to say. We are very excited about it. We think this is going to be a fun experience for the pokemon fan, the older fan and younger fan. For us, this is something we are very excited about and we look forward to driving it forward next month. Emily i also spoke with the ceo was spun out of google and develop this game with nintendo. They were the lead investor of the company when it was spun out and they took the learning to build a realworld game around the pokemon franchise, which is the number two franchise just behind mario. I think they sold 175 million total units of that game. It is a 20 year franchise and a really important one for them. We are bringing a fresh take on it. Emily how does the Technology Actually work . It is really cool. It uses your location and the camera and tries to put characters in the world and you have to find them and collect them. Emily do you have any concerns about hd issues that you are doing this or the legal issues if you wander onto private heart right at me . Absolutely. I have heard stories about people getting into accidents and all kinds of things. But it just people getting extremely excited about it for top just like you should not text and drive, you should not collect pokemon. At a certain think point there may be some new rules us to mark a remind you throughout the game to be aware of your surroundings, but im not sure thats enough. Owners manual also says dont take your hands off the steering wheel. I dont think you can be sure how these will get incorporated into a real world that is changing so fast. 24yearolds like your Production Assistant who escorted me down was telling me that when he was seven, he played pokemon and he played this all weekend. It is perfect. For millennials, it is going back to their childhood and they are walking to it. Wasy i did have one when i playing it earlier. I dont see myself spending hours doing it but i was concerned for my own safety, running into other people. Peopleyou are close to in the gaming community. What are the implications of the success we have seen here . Tost i think it is going drive everything we are seeing in terms of ar. You can imagine everyone building the next generation of , so this is insane validation for everyone working in this field. Emily what about other industries beyond gaming . Guest thats an interesting question. I think it is most interesting for social networking. And as we just heard earlier, it is crazy how popular this thing got so fast. For thecial networking real world with virtual objects. Emily you wonder if nintendo new how popular this was going to be. For someone who has covered technology for a decade, what do you think this could mean for nintendo knowing the Gaming Business is such a hit driven business and you need to maintain momentum . Guest i love the speculation about how they might make money by getting partners having the game direct people into coffee shop or retail stores, that is pretty smart. I think its impact will be bigger on the perception of augmented reality and finally people understanding what that slight lead we be slightly term may be. Ng for experts like him, it is a dream come true. The ceo and cofounder of using and David Kirkpatrick, you are sticking with me. Coming up, facebook slapped with a lawsuit seeking a billion dollars in damages, raising new westons about how platforms should monitor how users are communicating. We will break it down. Emily facebook is facing a 1 billion loss. Plaintiff says people affiliated with Hamas Facebook to communicate during attack that killed four americans in israel. This is after graphic live stream video when viral across the platform in the wake of fatal shootings in the u. S. Last week. My guess previously spent years at google focusing on policy issues. And still joining me is David Kirkpatrick. Do you think this is a strong lawsuit . Guest i dont think it is a strong lawsuit. Its similar to other losses that have been filed and defeated under one of the key american internet the Communications Decency act. This why do you think particular lawsuit is weak or unfair . What should facebook be for as far as monitoring and policing content . Guest the idea was that congress wanted Technology Companies to be able to develop usersome plant forms for beach and Free Expression and to become the economic juggernaut Silicon Valley has been. Order to serve those goals, it created a law that they plan form is not legally responsible for the speech its users if facebook were responsible for the legality of everything we say on facebook, it would be tremendously expensive and a and give themtive every reason to take down perfectly legal speech in order to avoid risk to themselves. This framework where they are not responsible for what users say on their form is pretty important to the way we use the internet or communication today as was illustrated this past week with the Police Shooting video. It is very much having a form where anyone can go imposed content without a gate keeper. Should facebook be responsible for terrorists communicating on facebook . If not, whose job is it to police these platforms . David i think what daphne said was articulate and ella went and that sort of thing needs to be said more often. Can or think facebook should be fully responsible for everything set on its plan warm. On the other hand, facebook does abide by the laws in the jurisdiction where it operates. When governments have reasonable cause to ask for something to be taken down or for facebook to insist in an investigation, it does do so when presented with the legal requirements to do that. The problem is a lot of areas where these incidents are occurring is in a legal gray zone. They are in the occupied territories where facebook abiding by International Law accepts the general view that those are illegally occupied areas. Israel considers it part of israel and demands that facebook gives them information about ink that happened in those regions. Thats part of the problem and one of the things that led the israeli minister of security to call zuckerberg a monster and has blood on his hands. A political disagreement that is a conflict between a company and a local law. Facebook is not responsible for monitoring these conversations unless they get a request from on enforcement, who is responsible . Daphne this is a question for public determination. We are talking about speech that is of the utmost public importance, each related to a Police Shooting in the u. S. , speech related to political violence. It is complicated and difficult for any country to come up with what the right laws are to balance Free Expression rights with preventing violence in reaching that should be a public process. There should be accountable public bodies deciding on it. Outsourcingt be those very difficult determinations to private forms if we can avoid it because the consequences are great. Muchan imagine with too pressure on facebook to take down anything that looks violent or antiauthority, the Police Shooting videos would never be up there. Asking them to take responsibility for everything that goes up and find nuance, who is speaking and what are the legal consequences in the country where they are, that is too much to ask of a plat or men take this conversation about politics, speech and violence out of the hands of courts and out of the hands of lawmakers. Isis interestingly, traffic is falling 40 on twitter. Has been focused on working closely with the government on this particular issue and on the subject of twitter, twitter announced today deal with cbs to stream the republican and Democratic National conventions. It is interesting at a time when facebook has so much omentum or perhaps unfortunate reasons. What do you make of this announcement coming from twitter and need of urgent and their strategy when it comes to live video . That it wast agree unfortunate that facebook streams that live video, however unfortunate it might have then. I think twitter is more of a National Media forms of make sense that twitter is moving anressively toward becoming infinitely tunable Television Network and i think they have good cause to get that kind of important public content a lot of people are going to watch. Facebook is moving in that direction a little bit by paying content companies to produce content for facebook which is a major shift in their strategy, but i think those of these systems, facebook and twitter, are increasingly are windows to the world and the place where people expect to consume content along with other places. Content isre migrating. Thank you both. David, you are sticking with me. We will be back with more. Be the reason for expansion in london . Emily we work has scrapped plans for expansion in londons very worth. To a noten addition to leasing the 45,000 square foot space, we are looking to lease a building it to be is the first time you have canceled a deal in the u k capital. Its one of the biggest ipos of the year it raised 1. 3 million after pricing its ipo at the top of the range. 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. Mark you are watching bloomberg west. Lets begin with a check of your first word news. Secretary of state john kerry is heading to russia this week. The visit comes at a particularly sensitive time in u. S. Russian relations. In addition to deep differences over syria and ukraine, it follows the latest expulsions last week of diplomats from both nations after an incident outside the American Embassy in moscow. In central and southern china, weeks of torrential rain have cost the country s worst flooding in almost two decades. At least 173 people have been killed. Officials say the problem was compounded after a typhoon hit over the weekend. The u. S. Is sending 600 additional troops to iraq. Defense secretary ash carter made the announcement during a surprise visit to the country today. Secretary carter says the new forces will be used to help iraq retake mosul, which is controlled by islamic state. The Washington Post selects reports donald trump will select a running mate by the end of the week. Other still in the running include former House SpeakerNewt Gingrich and governors mike pence, chris christie, and mary fallin. On the democratic side, from on senator Bernie Sanders vermont senator Bernie Sanders rally with Hillary Clinton in New Hampshire sh. I am mark crumpton. This is bloomberg. It is just after 6 30 p. M. London in new york. My colleague paul allen has a look at the markets. Paul off to a good start in new zealand. Off following record highs on the s p. Futures indicate good gains in australia, of about 0. 5 , expecting Business Confidence figures out later for june, although the timing of the survey means it will not reflect the recent reelection of the australian government. In japan, the nikkei fixtures futures look mixed right now. The most since october 2014, with the bank of japan promising more stimulus. The real big difference a shinzo abes win in the upper house elections, meaning more stimulus coming from the government as well, promising to prop up domestic demand and speed up the building of highspeed trains. Finally, a big decision out of the head today hague today on a case withina sea, china and the philippines on when an island is really an island. Theres trillions of dollars of oil and gas there, and we make it a little clarity. From bloomberg tv in sydney australia, paul allen. Emily this is bloomberg west. Japanese messaging app line raised 1. 3 billion dollars after pricing their ipo at the top of the targeted range. At that pric