Transcripts For BLOOMBERG Bloomberg West 20160805

The special ops are in brazil. Larger military units on stand by. Global news 24 hours a day powered by more than 2,600 journalists and analysts in more than 120 countries. Im mark crumpton. This is bloomberg, bloomberg west is next. Emily im emily chang, this is bloomberg west. Coming up the nasdaq and s p 500 end the week with an flourish, both ending at an alltime high. Well break down the numbers and the historic day. Last year shattered all of the records for deals in the tech sector. How does 2016 stack up . And tesla putting a dollar figure saying the cost may exceed expectations. Well tackle the unforeseen challenges ahead. To our lead. U. S. Stocks jumped the nasdaq and s p 500 both hitting alltime highs after the government reported better than expected jobs data for the second straight month. The private and Public Sector added 255,000 new jobs in july including coveted highpaying tech jobs, wages also showing solid gains and Unemployment Holding steady at 4. 9 near an eightyear low. The nasdaq rose 1. 2 led by tech giants apple, microsoft and alphabet. Joining us to break it all down, c. E. O. Of a recruing firm with a close eyes and cathy wood who has been investing in Silicon Valley for more than 30 years and focuses on disruption. We had a slew of positive earnings from the tech giants. Can tech equities keep up the momentum . Yes, we think they can and while a lot of people are worried and think about the past bubbles, tech an telecom and so forth, we think were at the threshold of a new bull market. Its about s curves. Amazon is less than 10 of retail going up in s curve and the fly wheel is amazon prile. Thats one example. Facebook and google, only 16 of advertising around the world is mobile. As you get toward that 20 mark, you hit a tipping point. So we think these are big s curves in motion. Emily so, john, when it comes to jobs, we saw Tech Companies actually hiring for more fulltime jobs. We got a chart of this on the bloomberg terminal. Hiring fewer contractors which has been a trend. Does that sort of echo what youre seeing . John i think it does. When people are more certain about the future, they look to bring on more fulltime employees. When theyre more uncertain, its about temporary and contract. We see people really bullish right now. The tech sector is roaring back off the lows of february. Venture Capitol Investment now alltime high, 23 billion into venture capitol funds just in the first half of the year. A nice time to be in tech. Emily cathy, does this renew talk in a bubble or end it . Were trying to educate people that, who are still very fearful, very conservatively positioned in the market that you dont move off an s curve when there is a real one in place. In the tech and telecom bubble, there was no s curve. We didnt have the right technology to make the cloud happen, to make mobile advertising happen and Online Retail happen the way it is now. So we think were just beginning. When were only 16 in mobile advertising, it has a long way to go. So were very excited about where we are. Emily john, hiring can also be symbolic of euphoric trends or lack thereof. Its interesting, i have heard from folks at google and facebook that hiring has actually slowed down because all of the good people are taken. There is this land grape for people, the good people between facebook and google and airbnb and uber. Have you heard anything to that effect . Joe there is a counterpoint. There has been a lot of tech m and a this year. You have linked in, you have neck suite. When there is m and a, that tends to shake things loose. I dont want to work for eye Bigger Company that is going to slow down. I want to work for a startup. The m and a thats actually red hot in the tech sector does mean there are a lot of people moving around. Emily were talking more about m and a in the next block. You focus on disruption. Where is more room for discorruption if you dont think were in a bubble. Where is the most room for growth . Cathie we see it all over the place. You have the whole ecosystem going to change the way health care works. You have the auto sector. Tesla is going to shake things up big time. I dont think people understand how theyre going to revolutionize manufacturing in the united states. Theyre going back to vertical integration away from the system that we have today. We see Autonomous Vehicles. Theyre going to be here before you know it. We think tesla will lead the charge there. They have really a billion miles worth of mapping data, more than any company in the world. So we think the auto sector is ripe for disruption and its going to happen a lot faster than people believe. Obotics as well and the last one really is Machine Learning. The whole Machine Learning, Artificial Intelligence, that is going to add a whole new did i mention to the cloud. The cloud is seeping into every sector. Economy. So many, many Big Companies out there who have been very successful over the last 30 years are going to be facing disruption, which is what we study all the time. Emily now, john, you make the point that the world is getting more tech centric, the economy is getting more tech centric. Does this mean more jobs absolutely in tech . On the other hand, a lot of these companies that are getting acquired werent necessarily growing. An acquisition can also be a wait out rather than a way up. Joe we believe the world is becoming more tech centric. You see demand in engineering as cathy mentioned. Security is becoming such a big concern, i. T. Security, Retail Companies that didnt think of themselves Aztec Companies and then got their servers hacked, theyre now thinking about themselves Aztec Companies. We dont see that change anytime soon in terms of more demand for tech. Some of the big fortune 500 companies are coming to us all the time saying we need more engineers, designers, more data scientists. We dont see that slowing down at all. Emily theyre growing in absolute terms . Joe we talk with a lot of these companies on a daily basis about what the cutting edge is in terms of their recruiting needs. They tell us its tech, tech, tech. Emily where could there be weakness or challenge ahead . Cathie there is weakness in a lot of companies that really led the charge in the old days. We think the Auto Companies are going to struggle. We think the old Tech Companies, the ones that were not built into the cloud and havent been able to gravitate towards it are going to, are really going to theyll either be acquired or go out of business. We see robotics causing a lot of dislocation in the employment industry which should be good because we do not think that technology at the end of the day will be bad for employment. It will mean a lot of shifting around, but it will mean higher value add and higher paying jobs. We see a lot of dislocation, but we also see a lot of opportunity, huge productivity gains ahead. Emily john, what trends are you saying in the economy, for so long, there were more and more uber and lyft drives, were hearing talk of l. Y. F. T. Struggling, what is happening in that economy . Is it getting bigger or starting to plateau . Joe it seems to be still growing very strong. One of the big differences, the labor force is shifting. There are a lot of people that simply dont quality. If youre driving for uber, delivering meals for somebody, delivering groceries, you may not be counted in the jobs report. You might be able to make a great living. We see a more Flexible Workforce emerging. Its a big opportunity. Uber is still growing incredibly fast, lyft is growing fast. You see Companies Come into all different sectors and say we can tap into this more flexible labor force and have incredible success. Emily all trends well ontinue to follow, john, cathie, great to you both here on bloomberg west. Still to come, a slow year for tech deals, serious steams in the Second Quarter. Well focus on the m and a pipeline for the rest of the year next. Apple announcing a deal to acquire an Artificial Intelligence company. Well bring you the details next. This is bloomberg. Emily now to a story we are now following. Apple announcing a deal this friday acquiring turi for 200 million. Our Bloomberg News reporter mark reporting this stoirp, welcome, mark, your first time on the set here in san francisco. Its great to have you. Already making news, why is apple buying this company . Mark apple is investing a lot of resources into future products and services. One of the difficult areas theyre focusing on now is Machine Learning and Artificial Intelligence. And turi brings a lot of that to the company. Emily how does this different from past acquisitions . Mark the past acquisitions have focused on products they want to develop. They bought suri and integrated it into the iphone. This company turi has a very fast portfolio of Different Services and plat performs and algorithms that apple can use across the entire portfolio. Emily will it make suri better . Mark there are some recommendation engines, features that will allow systems to better apply products to different customers based on how they use the products. This really fits in photos, perhaps apples online store, the app store. Its very much relevant across the product line. Emily now, a lot of people, namely Mark Andreason has talked about how apple has lagged in a. I. He told us at the bloomberg tech conference that amazon has lapped everybody including apple in a. I. Is this an incremental step forward or a really big deal . Mark apples acquisition of turi today, we might indicate this by the high 200 million price point, this is one of apples biggest steps forward in a. I. And Machine Learning yet. Turi is very integrated into the a. I. Development community. They are very open about their progress. They write lots of Research Papers and followed by lots of students and universities in the field. We actually ran a story late last year indicating that some of apples issues in a. I. And Machine Learning are because of the companys Privacy Culture. This shows that apple is willing to move beyond that and invest 200 million into a company and lots of resources thats very well known for integrating with the community. Emily how is the Privacy Culture holding them back . Mark apple doesnt want to reveal what its working on next. And Machine Learning is a very hot topic right now in Silicon Valley and across the world. That has sort of held them back. They cant talk about what theyre working on. They would talk about it and bring other people in from the developer community, they wouldnt be able to keep it private. Now theyre showing they want to take a step forward to make it more open, hire more people and bring in more resources that can push the technology across the product line. Emily changing the culture of secrecy, not opening up everything. Mark, covering consumer tech, great to you here. Mark thank you so much. Emily on the topic of deals, we started with cutthroat rivals selling on a deal in china. Uber leaving the home turf in exchange for 1 billion and a 20 stake in its competitor and tesla looking to be a one stop for tropical depressions. The those are the confirmed deals waiting regulatory approval. The unconfirmed deals, h. P. E. For several billions of dollars and apollo looking to scoop up the i. T. Company for for several 3. 5 co reuters. Shares went up 1 at one point in friday trading. Where do we stand compared to a record breaking 2015. Joining us with more, the head of u. S. Tech deals, it feels like a record year . Is it really . How does it stand up compared to last . Thanks for having me on the show. In terms of where were at so far this year, we are on pace with last years record. We have 125 billion in announced transactions through the Second Quarter and then just in the past week in terms 20, nts, announced, 30 billion announced. It was 135 billion fourthquarter in 2015. A big feat to match. Emily were looking at a chart of what is going on here. Microsoft and links in having an outsized impact on the numbers this quarter. There were a lot of other deals. Is microsoft inked inan outlier or more huge deals like that . We think that mega deals are the trend that are going to continue this year. Looking at the numbers this past year, 30 transactions over the 30 billion mark. That trend started last year with a lot of the semiconsolidation and certainly were expected to see continued mega deals as we go through the end. Year. Emily Bloomberg Intelligence had its own report how private equity firms are paying more attention to the Software Industry for deals. Tell me about trends youre seeing in software in particular . Software, its always been the bedrock of tech m and a. Its 50 of the volume. In particular this past year, you look in terms of software in terms of valuations. Public multiples are way down. They are in a much more affordable for companies to consider. Private equity are coming into that. Most of these companies in the software space, you generally have more predictable cash flows, especially if youre going into a cloud model. Were definitely seeing more interest there. If i look at the key areas within software, there is probably three that were particularly seeing. Number one is cloud, of course. You got a lot of companies transitioning into the cloud and cloud is supposed to double in terms of revenue size over the next five years. The second area is security. We have seen some big security transactions this year. If you look at that market, thats a highly fragmented market. You have 1,000 to 2,000 different Discreet Security companies. Thats an area that is ripe for some consolidation. The third area is anything related to i. O. T. , internet of things. In terms of software in particular, what were seeing is more of the platforms in the middle of the stack and moving up the stack a bit into apps and the analytics that you apply on to that data. Emily so,ed toson, what about i. P. O. s . Obviously we have seen a slight pickup in the tech i. P. O. Market. Is this trend toward staying private, is that turning now the other way . Well, i think its turning, but its turning slowly. In some respects, it was easy to beat the firstquarter mark of zero when it comes to i. P. O. S. We got six out this past period. I think from p. W. C. s point of view, we certainly see the i. P. O. Market coming back and that pendulum swinging back from staying private longer into coming into the public markets. We really think that trend will be more into 2017 and m and a is more of the driver for some of those private companies as we finish out 2016. Emily what are the big etech i. P. O. S well see this year . Yeah, i dont have any great speculation for you on that point. Ily will we see bigger tech i. P. O. S . The ones that have happened have been on the smaller side. I think the market creates a challenge for that. As you mentioned at the start of the segment, we got a lot of Economic Uncertainty both within the u. S. , especially on the political front, but then more importantly, abroad both in terms of china, brexit impacts, et cetera. That could hamper the ability of companies to come out in a big way until we get through some of this, get into the start of 2017. Emily what about some of the other private Tech Companies or valuations, private market valuations have dropped, drop box and box which is a puppet company, never sort of lived up to the valuation that some expected, will we see buyouts here, will we see drop box take the plunk and go public, what will happen . Our expectation is that well see many more of those types of companies being acquired as we go through the end of the year. One of the Key Statistics if you look at unicorns out there today, a lot of them are going out for funding over the next six months. As you have reported quite often, private funding is getting tighter and there is quite a significant expectation for down rounds and so if you combine those two pieces and the fact that there is not a guarantee for a large i. P. O. , i think were going to see a lot of those Companies Getting acquired and there is certainly a lot of buyers ready out there. I mean, if you look at the record of 2015, even though that was a record year, most of the serial tech choirs sat the year out and werent happy with the valuations on offer. As we start to see valuations come down this year, those companies are coming back into the market and not all of them have yet. We certainly expect them to be active as we get through the end of the year. Emily all right,ed toson paige, u. S. Tech deals leader, thank you so much for stopping by today. Still ahead, amazon c. E. O. Cashing in on his most valuable stock ever. Why he is selling amazon shares now. This is bloomberg. Emily on demand Food Delivery Services continue to rake in funding. The londonbase startup for ordering takeout has raised 275 million pushing its valuation to more than a billion, germanys delivery hero and uber. Venture capitalists poured 5. 5 billion into Food Delivery Companies globally. Jeff bezos is cashing in selling a Million Company shares for more than 755 million. It brings the sales for the years up to 1. 2 billion. Amazons shares are up 13 yeartodate, the sale appears to be routine. Bezos sells a large number of shares every year. And the Washington Post is adding a Surprising New member to bolster its olympic coverage, robots. The publication announcing it will be using software to automatically produce hundreds of realtime news reports on the olympics. Starting saturday, reports will begin to appear without human intervention on the posts website as well as its twitter account. Still ahead, big changes coming soon to the way we drive, how big Tech Companies are going headtohead with the global Auto Industry. That is next. And if you like Bloomberg News, check us out on the radio, you can listen on the Bloomberg Radio app, bloomberg. Com and in the u. S. On sirius x. M. This is bloomberg. Mark im mark crumpton, youre watching bloomberg west. A check of your first record news. Brazil is the center of the sports universe as the summer olympics officially get underway tonight in rio. Lastminute funding and an interim brazilian president underscore the economic and political turmoil which forced organizers to make do with a budget thats a fraction of the amount spent by 2012 olympics host london. It wasnt enough. They needed 11th hour Government Funds to make ends meet breaking rios 2016 long held promise for the event to be privately funded. Soccer legend pele says his poor health will keep him from lighting the olympic caldron at tonights opening ceremony. Brazils most famous athlete had hip surgery several years ago and often walks with the help of a cane. The theytime world cup champ apologized for disappointing his homeland. Black lights matter activists holding protests across britain. They walked the road leading to Londons Heathrow airport. The movement is needed in britain and all over the world. Demonstrate strayings are said to have been peaceful. Londons metropolitan police said they made several arrests. Donald trump may be coming to terms with his waning popularity at the polls. He made a Campaign Stop in des moines, iowa, and had a message for hesitant voters. Indiana governor mike pence was picked as mr. Trumps running mate in part to reassure republicans reluctant to vote for the real estate imagine in that. A toll on taking neckles rating. They are defending her refugee policy after voter support plunked to 47 , the Second Lowest rating of her third term. The death toll from the attack in nice last month is 85. French Authorities Say the latest victim, a 46yearold man died in the hospital. The mans wife and 13yearold son were killed july 14 when a truck driven by an Islamic State sympathizer plowed into a group of people celebrating frances holiday. Malaysia is saying for the first time that the pilot plotted a course on his home Flight Simulator to the southern indian ocean where the jet is believed to have gone down. The simulator had other destinations and there is no hard evidence that the plane was deliberately crashed. Global news 24 hours a day, powered by more than 2,400 journalists and analysts in more than 120 countries. From bloomberg World Headquarters in new york, im mark crumpton. Bloomberg west continues. Emily this is bloomberg west. Im emily chang. Ladies and gentlemen, start your engines. Disruption is coming to the way we drive. It may be coming quicker than we think. A bloomberg scoop this week said samsung could be the latest tech Company Setting sights talking to fiat. Following suit at apple, google and uber, jousts for pole position, our correspondent explains. Change is coming to the car industry. Big change. Global automakers from ford and g. M. To volkswagen and toyota are all gearing up for a future of connected, driverless, electric and shared vehicles. Tech giants are also speeding up to meet that future. Google redesigning the car from the wheels up, testing vehicles in mountain view, austin, washington, and phoenix clocking more than 1. 6 million miles of test driving. Recently told investors were solving a big need, safety access and deficiency. What is motivating for us, when you look at 30,000 car deaths in the u. S. Alone, that inspired the founders to start working on this issue. Tesla c. E. O. Insists autopilot features will make driving safer despite a fatal crash in florida and pennsylvania under investigation by regulators. Connected cars will reduce traffic and emissions, too. Ll of this technology is buoyed by the cloud. Using these tools cars are learning how to park for you, break automatically and change lanes. Until one day soon, well need no driver at all. The industry is racing to have these new vehicles on the road before the decade is out. Emily joining us to discuss this further, brian, an intel managing director for internet of things bridget here with me in san francisco. You see entire fleets of selfdriving cars driving down roads and freeways by 2021 with nobody behind the wheel. Why so soon . Is that really possible . Its very exciting. What were seeing, first of all, were in a new era of technology and its the era of i. O. T. , the internet of things. I. O. T. Is enabling us to reinvent the whole driving experience and frankly the entire transportation concept. Were seeing that when we think about entire fleets of vehicles rolling down our streets and not only driverless, but literally no one inside the car, this is completely transformative. We think about the i. O. T. S, its essentially a collection of devices that are connected to the cloud and theyre generating data that can be analyzed in real time. Emily why could you do you think this can happen in five years . Bridget the data is enabling this transformation. What were doing at intel and frankly the entire industry, were working together to define open standard platforms autonomous the driving possible. Its enabling these kind of experiences to happen. Emily brian, do you agree, by 20221, well see fleets of cars on the road with no one behind the wheel . Brian i think youll see more automated driving on the road. When you think of the u. S. Auto industry and 260 million cars on the road and 17 Million Units told per year, even if the technology were to really be there and it likely will be, youre likely to see, at least in our view, a bit of a longer the 2025 e out into period before you really seeing a meaningful dent in new car sales. Part of that has to do with the cost of the new technology. The eriod before you really seeing right now acts of safety is a 500 per vehicle cost. Full autonomy, 5,000 we are car with an average car price around 32,000 right now, there can be an adoption curve that may be a little bit slower than the Tech Industry may be hoping right now acts of safety for. Emily bridget, well talk about how all cars are becoming more autonomous on a relative scale. You look at the difference between googles vision and teslas, google being a selfdriving car and tesla where its more of a semiautonomous car, which one is safer . Bridget youre identifying something when youre talking about these cars and driving, its happening in stages. None of this happens overnight. You think of the vision, what three basic stages, automatic braking or cruise control. The second stage is when you see autonomous functions like Collision Avoidance or selfparking. The third strange is an advanced autonomous stage, driverless, you dont need the driver at all. When the evolutions in Technology Take place and make this more possible, you see this staged effective capability. Emily brian, google is saying giving the driver the opportunity to remain engaged can be confusing. Regulators are investigating this crash where the drivers die. Musk says his cars are the safest. What do you think . Is one model better than the other . Brian no, i think there is room for both. As bridget said, everything here is incremental, from blind spot detection to active lane assist to things like autopilot which may have been somewhat misnamed given that the driver does need to stay engaged. As this evolves over the course of the next decade, really the suppliers, thats really where we spend a lot of our focus, are really engaged at first making the car safer and beyond that, well have room for both. Dont forget, were talking about a very large industry, so it will take sometime for full autonomy. In the meantime, well have the semiautonomous growth as well. Emily do you think that this investigation by safety regulators could have an impact on the industry . Could it be actually a setback . Bridget first of all, its a very sad situation. The entire industry is i think understanding and committed to safety first. That is first and foremost the objective here. Million hink about 1. 2 people dying every day from car accidents, we know there is an opportunity to improve with technology. Thats one of the objectives we have, a key objective. When we think about the stages of technology, we are committed to making sure that the platforms, we look at the components that you need to have with autonomous driving, invehicle computing that is robust and powerful. A 5 g connection for connectivity, ultrareliability and ultrafast. You need a data system that can support tons and tons of data being analyzed and being supportive the machines learning algorithms in the vehicle. You need an interface that builds trust with the passenger and the vehicle and you need security. You need end to end security in the Autonomous Vehicle platform, securing the functions of the car and also the trust and the privacy of the data that is coming back and forth to the vehicle. Emily brian, you looked really closely at the companies that are supplying some of these more incremental technologies that are making cars more autonomous. Where do you see the innovation and the technology isnt ready yet . You test a lot of these features. They dont actually work that well. Brian i think bridget hits it on the head. You need a very strong interface with reconfigureable displays, companies out of michigan are leaders in that. You bring up power management. As these vehicles gain the semiautonomous and autonomous characteristics, there is a need for power management. Johnson controls, the worlds leader in battery technology, 29 billion equity cap company, theyre going to be heavily involved with things like 48 volt power and a. G. M. Batteries that the cars are going to need. As we see the cars evolve, with a were excited about are the opportunities in the supply bays to really have base to really have the brakes, have the power train really actively engaged with the driver. Emily now, bridget, intel and b. M. W. Have a new partnership. Tell me about that and what intel is providing there. Bridget were excited about the partnership with b. M. W. They have delivered 8. 5 billion cars that are connected, they have 4g communications. Already b. M. W. Drivers can take advantage of things like selfparking and locating electronic vehicle charge stations, that kind of thing. The partnership that we have with b. M. W. , it spans really 10 years, in fact, we just celebrated our 10th anniversary together. Were very excited because together what were doing is that we are creating an open platform for the next generation Autonomous Vehicle. We can define the safest Autonomous Vehicle platform. Secondly, were aligning together to help lead the industry on defining a standardsbased autonomous platform so that the entire industry can contribute and define an open standard so we can get the best and safest platform for the entire industry to adopt. Finally, this isnt just about a concept car and doing work in the lab. We are committed to developing these technologies so that b. M. W. Can use these technologies in their Series Production in 2021 in their b. M. W. Inext model, fully autonomous and equipped with the capabilities. Emily happy anniversary. Brian, were getting headlines on tesla that the giga factory is going to cost more and get longer to get online than they had originally expected or said that they expected. What is your reaction to this . Brian the Auto Industry is a very difficult to operate in and break into. If youre going to make an omelet, youre going to break some eggs, certainly. Its very capitol intensive and things take longer than originally planned. I would say its much easier to underpromise and overdeliver than hope against the opposite. Ily brian, analyst, intels bridget, thank you so much for joining us. Now to another topic, the same topic, actually, the head of google selfdriving car chris is leaving the company. He took over the car project two years ago and hasnt revealed details about his future plans. Next week we will pick up on the future of ride sharing and Car Technology with andrew pennington, his company just merged with a division to eate europes largest taxup app, thats on monday. Well hear about angies list c. E. O. About the jobs report and how the Tech Industry is fehring. This is bloomberg. Ily nearly 1 3 of the 255,000 job gains were seen in professional services. That includes coveted highpaying tech jobs. Earlier today, bloomberg caught and th angies list c. E. O. How it was fehring, take a listen. Scott its a good report. I would have been concerned if it was less than 190,000 new jobs. 255,000 new jobs means its not a concern, particularly when you put it next to the report that came out last friday with the slow 1. 2 per capita g. D. P. Groaning. With that said, you go a little bit deeper, its not enough to say im going on a hiring craze. Thats because product activity is flat. If you look at the actual disposable income that is sort of implied in these numbers, its not really materially moving up in a way that would get you really excited about expansion. With that said, it takes away what could have been a cause for concern. Emily scott, how are your listings reflecting what is going on in the jobs economy right now . What are you seeing becoming listed more . Scott a good question. Angies list, were seeing robust demand. You cant just read into that and say, oh, its a great economy because angies list does well in down cycles and it does well in up cycles. In down cycles, people do smaller jobs and try to make the most out of their current home. Theyll do repairs, theyll do renovations. Its different in the robust economy where the nature of the mix of services shift more to what you do when you move into a new home, bigger expansions, renovations, bigger jobs. When i look at the mix of the services that were actually selling, its moving modestly towards more of a recession nature type of a mix, but at the top level of overall demand, it doesnt change the overall voice mail. It just changes the type of things that people are actually do. When you talk about a recessionary type of mix, what do you mean . Scott it puts homeowners much more into a mindset of trying to make the most of their existing home doing painting jobs, doing sort of repair work around the house, doing things that might turn, you know, a basement into an extra bedroom, making the most out of what they have as opposed to in great times, people get much more into a mode of doing room additions, getting a roof job done, that kind of thing. Scott, indiana became subject to a wider focus when donald trump looking at mike pence as his running mate. Looking at the economy, indianapolis growing at a pace of 18 , nationwide, its closer to 6 . What is it about indiana right now, about the structure of the economy that is encouraging that kind of growth and do you think from your perspective as the c. E. O. Of a national company, there is something about what is going on in indianapolis, in indiana, that is replicateable nationwide . Scott yeah, there is, i would say. Indiana i would say overcall is a great environment for business expansion. You have a set of pro growth tax policies, incentives. You have a close relationship with the universities and trade schools. Its a cluster that really has a lot of the key elements that you need to be able to grow, particularly for a technology company. I know in the past, scott, your prescriptions for helping the jobs economy have included things like training and so forth. Is there any way angies list data could help that way, im thinking mentorships or the german model where you train with somebody for a couple of years and then youre the class person . Scott were doing a fair bit of that. We work closely with the universities. We articulate the specific skills that were looking to hire. So html developer, java developers, devops people and were hiring in those areas. We have been hiring in product and technology and in sales. Were hiring for very specific skills that we communicate and are able to draw upon from those different institutions. The restructuring plan, how is that going . There are some startups trying to get into the space, how do you plan on pending them off . Scott well, we communicated a profitable growth plan to investors back in march that sort of laid out a fiveyear view for how we would sort of turn around and grow the company. We are really on track. We have been executing to the letter, the milestones we committed to. We took down our reviews pay wall and we have been seeing 700,000 new members joined angies list in just about a month. We have seen great Consumer Engagement and now the challenge will be to drive that into new revenues and im quite optimistic about the prospects for that. How are you possessioning would you though, consider selling . You fended off some offers at one point. Scott well, were a public company, so we always have to be open to Value Creation opportunities. Were laser focused on executing our growth plan. It couldnt be off to a stronger start. Emily that was angies list c. E. O. Celebrating the anniversary of one of its most challenging extraterrestrial landings of all time. This is bloomberg. Emily this weekend marks four years since nasas curiosity rover arrived on mars. Its remembered as one of the most dramatic landings in the history of space exploration. A sky crane lowered the rover on the surface of mars and flew off and intentionally crash landed a safe distance away. This technique had never been fully tested on earth, let alone on another planet. Still everything worked and curiosity began exploring. One of the first zhriferse was signs of an ancient water system that could have supported my crobal life if it ever existed on mars. It has driven more than 13 kilometers and returned more than 128,000 images of the red planet back to earth. Turning to a trending tropic earlier this week, instagram has a stories feature. Its facebook to take on the picture dissolving app. It will include a Selfie Camera at the top of the feed. It will include filters and stickers. The test begins today in canada and brazil. This weekend, we will bring you the best of all of our interviews from the week. Do not miss roger and his predictions for the next big m anderson m and a deal in technical. Ill be speaking with joe of alibaba. Thats it for today from san francisco. From our studios in new york city, this is charlie rose. We begin this evening with a zika virus story. The government issued a warning for pregnant women to stay clear of a miami, florida neighborhood. The mosquitoes carrying the virus have infected at least force at least 15 florida residents. Funding forederal zika is in danger of running out this month. Joining us from washington, till they want the most important thing for us t