Transcripts For BLOOMBERG Bloomberg West 20160712 : vimarsan

BLOOMBERG Bloomberg West July 12, 2016

Officials say Micah Johnson taunted lee says they tried to negotiate with him during an hours long and off. They are poring through 170 hours of video and statements taken from as many as 300 witnesses. Johnson killed five officers. His parents said the veteran returned from afghanistan a changed man. President obama will attend an Interfaith Memorial Service tomorrow in dallas. 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. This 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. Ani was on vacation, so fill me in. Three separate accidents . Cory three accidents in three 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. Cory lets 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. On the 18th, they sell 1. 4 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. Then according to the dow jones, 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. We dont know what led to it. It is also worth noting and i dont think a lot of attention was paid to this, elon musk specifically tweeted about the 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 following augmented reality 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 pokemon nintendo getting a boost from nostalgia. Just days after its debut, its the top grossing app in the u. S. 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. Emily 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 that comes from google and a lot of interesting and chasing of finding of cool things and meeting people in the process. Emily i spoke about the president of nintendo about this 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 of niantic which 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 . Guest 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 . Guest 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. Emily do you think at a certain 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. Guest teslas 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. Emily i did have one when i was playing it earlier. I dont see myself spending hours doing it but i was concerned for my own safety, running into other people. I know you are close to people in the gaming community. What are the implications of the success we have seen here . Guest i think it is going to drive everything we are seeing in terms of ar. You can imagine everyone building the next generation of devices, 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. It is social networking for the 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 dweeby sounding term may be. For experts like him, it is a dream come true. Emily 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. Joining us 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. Emily why do you think this particular lawsuit is weak or unfair . What should facebook be responsible for as far as monitoring and policing content . Guest the idea was that congress wanted Technology Companies to be able to develop an become plant forms for users beach and Free Expression and to become the economic juggernaut Silicon Valley has been. In 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 great disincentive and give them 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. Emily 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. I dont think facebook can or 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. It is a political disagreement that is a conflict between a company and a local law. Emily if 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. We should not be outsourcing those very difficult determinations to private forms if we can avoid it because the consequences are great. You can imagine with too much 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. Emily interestingly, isis traffic is falling 40 on twitter. It 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 . David i dont agree that it was 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 aggressively toward becoming an 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. This is where content is migrating. Emily thank you both. David, you are sticking with me. We will be back with more. Could brexit be the reason for expansion in london . Emily we work has scrapped plans for expansion in londons very worth. They say in addition to a note 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. Japanese shares are heading for their steepest today johnsons january as the end weekends. Shinzo oblique shinzo abe with a fresh round of stimulus after the s p 500 closed at a record. Global equities are now almost back to prebrexit levels. An early decline reversing to strengthen the most in two weeks on sign that Chinas Central Bank is intervening. The Monetary Authority may have stepped in after unusually high on short trading volumes. Yen turnover exceeded 30 billion on monday, the First Time Since january. Revoking the certification of almost half the models by folks widen. Kswagen as tests there will be a public hearing on july 22, amid requests to ban deisel and 148 petrol models. Global news, 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. This is bloomberg. Lets get the latest on the markets as japan comes back juliette. Res juliette the nikkei 225 was ahead of the break, holding onto gains, which means we have seen gains in Japanese Equities over the last two days. Remember, its only tuesday, up over 7 . For three weeks since the brexit vote, its almost as if it didnt happen, Global Equities shrugging off the regional index, nearing a threemonth high and global stocks around a onemonth high. Here in hong kong, hang seng is up by half of 1 . You can see the stocks coming up from a sector, with a little weakness coming high on shanghai, adjustment on his lunch break. A pickup in Business Confidence and conditions has helped australia, which is. Flat in korea, following that strong rally we saw monday. Southeast asia looking very positive, new zealand up by 131 . Here are some of the players we have been watching. Nintendo hit that daily limit in tokyo on the pokemon go launch. Nintendo added 4. 4 . Illumina under pressure after a positive morning session. Its kicking things off and earnings season. Wyn macau leading in hong kong on the broker upgrade. Thats the state of play across asian markets as we head into lunchtime on tuesday. 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 pr

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