Funerals were held today for three of the five Police Officers killed in dallas, texas last week. Officers attended services for the man. The men. The pentagon confirmed the death of a militant leader responsible for orchestrating multiple attacks in fact them. In pakistan. He was killed in an airstrike. He planned the 2014 attack on a skill on a school that killed more than 130 children. Global news 24 hours a day powered by more than 20 x hundred analysts and analysts in more than 100 26 countries. Im mark crumpton. Emily im emily chang and this is bloomberg west. Prime day pasta triumphant second coming. Amazon said it was its biggest sale day ever. We discussed where they go from here. Plus google plays defense the tech giant fighting back against claims its piracy protection tool enables bootleggers. And moon shots under the microscope. We will ask laura ultrasecretive products projects eating developed in the shadows. Amazon prime day amazon said worldwide orders climbed more than 60 over the last year. The hot seller is the video streaming fire tv. It helped the Company Triple sales of devices. It contradicts culinary estimates from tuesday suggesting sales were flat compared to last year. Amazon shares popped before closing down half a percent. Here to break down the numbers is our bloomberg editor at large, cory johnson. Amazon says it was the biggest sales day ever, contradicting some numbers we got yesterday. How big a success you think it was . Mark i think results were generally in line with expectations. They said was three x growth for thirdparty sales they always give you these puzzles and never the exact numbers. Probably a billion in total gross sales. One year ago, it was 400 million, so i think thats roughly in line. He did not gap up on this news. The fact that only moved half a percent probably tells you it was as expected. Emily why such a gap between what thirdparty advisers were saying and what amazon is saying . Cory i think it has to do with the fact that they could not see a lot of the traffic. As a separate story and they really good one, it shows our ability to. Into amazon is more limited than we thought because those numbers were so off from what weve all yesterday. Mark how many echoes do you have . Cory i have one and im trying to get a dock for another. Mark i think they have a runaway hit on their hands. We will have several iterations and it will get smaller and more functional. I think it will lead to incremental sales like other devices have. Thats one reason thirdparty sources that had no idea what was happening at amazon. The other thing is thirdparty sources only track thirdparty sales. Cory they obviously dont measure very well. The emphasis on amazon stuff, what is an important part that help to skew the numbers, it shows how they are building an ecosystem. One of the important things added with the ability to shout out to another room from the refrigerator that i need to, i need tomatoes, i need whatever. Emily they are saying customers purchase on average one alexa exclusive deal using their voice per second. Cory thats amazing. Mark theres also Something Else that is important. Theres the number of new prime customers they bring on. The longer people are with amazon the more loyal they are. One way to get you to be loyal is get this expedited shipping and like these free videos. The one thing they did not discloses how many new prime members they got. They will buy more frequently and by a broader range of products. Emily the average of a prime membership is seven years. I assume it will only get longer for cory thats why they are spending 2. 5 lien dollars on spending 2. 5 billion on original content. More Retail Experience will happen within the amazon tent. Emily where might you poke some holes in these numbers . Theres a lot of information we dont have and given that this is the second year and you benefit from everything you learned in the first year, maybe they learned that hammocks were popular in july. Mark there were a lot of aggressive price offers. Fashion and apparel, its possible you could see a nearterm negative margin surprise. Thats one thing to look at but the days sales are important but just as important are these new prime numbers that we dont have much visibility into. They are extremely loyal and they are willing to spend a lot of money. Cory you dont want to poke a lot of holes in it. [laughter] emily we heard from Mark Andreessen at our Bloomberg Technology conference where he says he believes amazon has lapped all of the other Big Companies in ai. How do you think amazon is positioned compared to other tech giants out there . Are they in a better or more unique condition . It seems like they could hit a trillion dollar market cap. Mark its hard to say anything better i will say that i was with the head of amazon devices yesterday. He said one of the things they are doing is they are trying to make alexa a ubiquitous that form. Theyre going to integrated into cars. They are going after google and going after theory. It wide open for developers, so this would be a change. Emily one analyst says there says they could be a 3 trillion company. Cory the way to poke a hole in the amazon story is the margins. Any margin you want to look at is pathetic. The endless wall street fantasy that they will someday turn on the profit machine does not hold a lot of water. Once they jack up prices, can they close up all the retail in the world . The question is with high prices, could they generate profits . I think they are content to keep these low margins for as long as they can. Emily what about the kindle . Mark thats one of the devices that gave them the confidence that they could sell this at a profit. You buy a kindle and guess how many books you are going to buy anything that reduces friction. Give some of the a device and let them carry around the shopping cart, not just to do this but to speak out to your echoes device. Thats the message behind the amazon device tragedy. Google cannot cross sell things effectively. Amazon is the ultimate crossover. They can get away with selling devices that cost. Cory when they launched the fire phone, it was a total face flop. At go was announced to silence. They are brave to try things but cautious to look before they leave. Emily look before they leap. Mark i think the story has been ramping, rising cash flow for free cash flow. We saw an acceleration in north american retail growth from amazon i think due to prime and the rollout of thirdparty dollars. Now we are just starting to see International Markets in europe and japan and we are starting to see good traction in india. I think the next leg of the growth in the stock is international retail. Does that accelerate like north america did . Emily how formidable is alibaba . Mark in china, game over. Theres no game for alibaba out side of china that we have seen. Emily what about walmart . Cory you see walmart struggling. Walmart has not been able to put out the complete offering and you see amazon taking share from walmart. Mark amazon has changed the equation. They have defined convenience as speed of delivery. They went from an investment cycle to guarantee they had the fastest delivery, next day, same hour delivery. That that them years ahead of any retailer and you see have miners trying to lease out that space. I think they are too late. I think amazons competitive lead has widened. Emily thank you. Coming up, google is beefing up its fight against piracy. That is next. And a stock we are watching mobile accessory provider gaining may be due to the battery draining affect pokemon go has had on phones. This is bloomberg. Emily google is getting serious about fighting piracy, giving rights owners a way to generate income. Youtube has generated to the lien dollars for rightful owners, double of what it did in generated 2 billion for rightful owners, double of what it did in 2014. That comes hot on the heels of criticism from the Music Industry saying that youtube is rife with piracy. Talk to me about the improvements you have made to content id in the last two years. Guest the report we released details the steps we have taken to fight piracy in regard to the Youtube Content id system that allows rights holders to detect and monetize content users are uploading has generated more than 2 billion. Ways in which this has transformed and revolutionize the content and creativity space is this matching. When content id first launched, rights holders were using this technology to detect their content but the vast majority set their settings to block, so the content was removed from the system. So now more than 90 of these claims are allowing the user content to stay up so creativity can drive and the audience can see these new videos and 90 of rights holders are choosing to leave the content up and choosing to monetize it. Thats were the claims of the User Generated Content comes from. Emily there are still folks in the Music Industry who think content id is an ineffective effort. How do you combat that effort and mark combat that effort . Guest one key piece we realize was for the Music Industry, 99. 5 of their claims are automated. Thats telling us the systems are working extremely well. We saw u2 has paid out over 3 billion to the Music Industry in particular. So there are examples we have seen recently of a video poised to hit about billion views. Thats super successful and phenomenal. But the user generated mixes and mass job mash ups have help to drive that song to the top of the charts and created a new Revenue Streams that never would have existed before content id existed. So we see it as a winwin for rights holders to find new ways to generate income from their online content. Emily talk about the avenues this has opened up for artists. Guest artists of all different flavors on youtube are earning revenues. Tens of millions of creators are earning revenue on youtube. Labels and publishers and songwriters can use these tools but also film studios, news broadcasters, educational content. Another wonderful example was the use by disney when the film frozen debuted. Disney was very smart and forward thinking. A letter the user content stay up and stay on the web and once the kids saw those videos and love the songs, it drove ochs Box Office Ticket sales and help it stay at the top of the box office for a historically long time. Emily Record Companies and publishers say that still fails to identify up to 40 of their recordings. Where do you see room for improvement . Guest i think that number has been debunked by many scholars. The Music Industry, i mentioned the majority of rights holders monetize and on average, 90 are monetizing. For the Music Industry, its 95 of claims being monetized and 99. 5 of claims are being automated. We dont see content id breaking at all. We see songwriters who created a song and would be happy that people are singing their music on a road trip in a van, we are seeing those videos now that theres the ability to upload them to a global audience, they generate new income that never would have existed before. We are seeing these new innovations work in partnership and as more people come online, i think 2 billion more people are expected to come online index two years just on mobile. One of our issues is to make sure we are licensing to make these users with these with this content. With google play, we have licensed music and more than 60 countries and film in more than a hundred countries. We are so excited to see the opportunities the web is creating all around the world to reach these kinds of audiences. Emily google, the Search Engine, plays a big role in people finding content and issues have been raised over whether the Search Engine is doing enough to combat that. What are Broader Company efforts directed at that issue . Guest we have run the data and we see search as a great place for driving users to legitimate channels. Theres a section in the report debunking some of the myths and showing you can query a film, query a music artist or song title and what you are going to see is clean results as well as interesting ways weve used the ad formats that you can click in one click and get to itunes or google play and get right to that authorized content. Thats a place were we have tried to innovate and work with partners where if the user indicates they are seeking film or music, we want to give them compelling, legitimate results and we have innovated a Backend System where if someone is sending us a notice that i certainly get his infringing, we are making sure that is having a act on the ranking system and weve shown a really huge impact. Sites being targeted by that signal or use are losing massive amounts of traffic if they have content infringement in those links. Emily thank you so much for breaking that down. A complicated issue. I appreciate you joining us from washington, d c. Tesla is in the hot seat over autopilot features, but that is not stopping the competition. Nissan is unveiling driverless technology. The system sends warnings when drivers take their hands off the wheel and will disable if the prompts are ignored for a few seconds. If you make less than 20 an hour, a robot is probably going to take your job according to a new study that says 47 of u. S. Jobs are at risk. M. I. T. s latest robot helps nurses decide a reading from everything where to move patients to assigning them to a csection. This is bloomberg. Emily intels Security Firm mcafee is trying interest from private equity firms. They say they are among the firms conducting preliminary research on mcafee in the event of a sale. Sources tell Bloomberg News no bank has been hired and intel may choose to keep them after all. Virtual reality could be a magic button to reboot journalism according to the Axel Springer ceo who says vr will not only improve the way we tell news but create new models for the entire industry. He expressed confidence that Virtual Reality tech will replace email and phone calls. And 23 and me is launching a new service to use saliva collection kits and geocaching services for their own research studies. Participants can enroll in the database and receive information about their genetic makeup. We spoke with the ceo on my longform show, studio 1. 0, to discuss her longterm vision for the company. I want to say we develop secure for lupus. When i think about my success moment, it will be when we have that kind of cure that came because millions of people came together and shared the data. Because of that, we were able to create something. Emily still ahead, moon shots under the microscope. We will explore ultrasecretive projects and whether they can change the world. Series a is up next. This is bloomberg. . C sv heading for the longest rallies in several on continuing stimulus hopes. The regional benchmark is set for the smallest gains this week the cost be is slightly the kospi is slightly lower. The aussie dollar is on track for its best run of weekly gains in 2012 since 2012. Jobs were added in june, bolstered by a big increase in fulltime employment. That underscores in a fashion economy with bigger strength. Makes itsf england most hotly anticipated call in years. Most expect a cut. The Prime Minister theresa may has named her brexit cabinet, including Boris Johnson as foreign secretary. Lets get the latest on the markets now with juliet. We are seeing lots of momentum. Yes, we are seeing asian stocks higher for the fourth bysion this week, really led japan. Coming back online after the lunch break, of the by 9 10 of 1 . We have seen more upside coming through in that equity market despite the fact that we had a cut in the gdp. There has been weakness on the shanghai asian market. If you look at the fundamentals, we are seeing signs that the market is a little bit overbought. Certainly a little bit of weakness coming through. A lot happening in terms of the economy. Cpi forecast cut by the bank of korea today, even though they left the Interest Rate on hold. In australia come a little bit. F upside the unemployment level picking up a little bit in june. But there was a good pickup in the number of fulltime jobs created in the australian economy. New zealand looking pretty good. Here in hong kong, stocks off by. 2 . There has been a little bit of a switch out. Crude oil starting to recover, but the big slump coming through in the new york session. Emily this is bloomberg west. Im emily chang. Time for our weekly roundtable where we explore themes in tech investing. We hear a lot about moon shots but what do we know about them . Often veiled in secrecy and development three years think flying cars and solar planes and the hyperloop. What does it take to fund them and which ones will breakthrough in our lifetime mark joining us is a futurist and nana biologist, partner on the next human genome project that aims to build a human genome in the lab. And we have Ethan Kurzweil who made early investments in Companies Including switch and para scope. Thank you for joining us on such an exciting subject. I want to start with a broad question why invest in moon shots . Guest they can change the world and make the world better place. They can change peoples behaviors and make peoples lives better. They can solve the intractable problems of humanity. Why wouldnt you want that . Something i was thinking about on the way here we had a rough week in this country in terms of race relations, getting along and some of the tough that happens, we need moon shots for that kind of stuff too. You have to be open to it. If you dont have the answers, moon shots have the answers. Emily is the goal social progress or making money or hacking life to make it easier . Guest i think the goal is to inspire. So much innovation is incremental and a moonshot pushes the boundaries further. I dont think the immediate goals should be processed. I think its learning to think beyond the current paradigm in learning to collaborate in new ways and hopefully build new communitie