Death the interior minister. It is a protest over mining laws. And next month Vice President biden will hit the road to campaign for hiring clinton. The president will also be in philadelphia september 13. Both are critical battleground states. And Donald Trumps campaign now has its own mobile app. Users can earn point by donating to the campaign and sharing messages. Global news 24 hours a day powered by over 2600 journalists and analysts in more than 120 countries. Im mark crumpton. This is bloomberg. Bloomberg west is next. Emily im emily chang and this is bloomberg west. Coming up, twitters longawaited antiharassment tool. Does it do enough . Plus spotify and its longstanding feud with apple. We had to new zealand to hear why he wants the next chapter of his legal fight livestream. A 4. 3 billion conclusion to the yearslong question, who wants to buy the Cloud Company rackspace . The company apollo. Paying a 30 premium over before takeover talks heated up this month. All the details from new york. M a talk around rackspace has been going on for years. What did it take to get to this point . Youre right, this has been floating around for quite a long time. They were in early player in the cloud space they were an early player in the cloud space. They were in highflying, rapidly growing company. Then a. W. S. Steps in in 2013 and they cut their prices seven times that year and it became clear that rackspace just wasnt able to keep up the next year they hired Morgan Stanley to look at Strategic Options for them. Now more a manager of cloud services. Emily obviously theyve been trying to make a business transition. Going private may help them make that but talk about where rackspace fits into the cloud space . They are certainly a second tier player. Them and a lot of. Other smaller cloud providers have are not been able to compete because they do not have the strength. Gigantic companies, they need hundreds of thousands of computers to build these services and buying it in such huge volumes gives them very good relationships with their vendors, meaning they can get good prices and pass that along to their customers and the smaller guys like rackspace just cannot compete with that. Emily well see if they can do better in a private setting. Thank you for that. And turning to the fight between spotify and apple. Bloombergs lucas shaw broke the story. Is this as petty as it sounds . I guess it depends from what perspective you are looking at. Spotifys argument would be look, if you are going to make an exclusive agreement with apple and make people come to them, were not going to work with you but if you are an emerging artist and want to break a new song on vane loads, it feels wrong to have this Company Worth 8 billion, 10 billion, tell um were going to make your life miserable if you put one song on this radio show. Emily is it legal what spotify is doing . That, im not sure. It will definitely invite some antitrust scrutiny but its such a new space and it would be really hard to prove, i imagine. I did get a message from a friend of mine who is a lawyer and works on cases like this to say he is fascinated and wants to know more. So well see. Emily what has apple done to kind of invite this sort of behavior . We know apple music didnt get off to a great start but theyre overhauling it and were expecting a big sort of redo. Yeah, apple invited it because theyve made these exclusive deals a corner stone of their effort to catch up to spotify. Spotify is the number one paid music deal in the world, apple is next. But when they get an exclusive with someone for a week or two or three weeks, that means that that music is not on spotify and that is hurtful to spotifys business and there are some that think the deals are bad for the music business. Lucien gray sent out a memo to staff this week saying were not going to do any more longterm exclusives after one of their artists, frank ocean, managed to make a direct exclusive deal with apple. Emily whats the gain in terms of listeners . The last time, apple said they had 15 million and they added that in a year. Spotify said in a billboard they have 39 million, but thats over eight or nine years. Emily all right. Lucas shaw, covering entertainment for us in l. A. , and of course were expecting an apple event in early cement Early September where we may get to see the new apple. Apple music. Turning now to twitter. After years of criticism that it does not do enough policing on its site, news that now they will do more. We have been talking for a long time about how big a problem this is. Tell me how this Solution Works and whether you thank you its strong enough. This is something twitter has been debating for months. This would allow people to put a filter in their timeline so they could block out racist words, attacking words, sexist words, slurs and basically not have to see some of the worst of the internet as its coming to them. Its the first proactive filter instead of waiting to report after the fact the attackers. Emily youve been on the receiving independent of this. Ive been on the end of it every single day. You are saying were the ones who will have to decide what words we dont want to see and what tweets to filter out . In an ideal world twitter would be able to do some sort of technological solution that would make sure these things dont hit the internet before they do. Its just not that easy to do in real time. Emily right. And yeah, so people who have what what have to decide words they dont want to see and as weve discussed, i dont think it would be foolproof. People could misspell things or find creative ways to insult you instead. Its really a difficult problem and twitter has been working with outside counsel ever since february had they established it to try to preview their new upcoming products and try to get feedback and theyre just not there yet but they say theyll have updates in a couple of weeks. Emily one of the potentials is that the people doing the harassing are still writing these twits and theyre still being put out there even if you still writing these tweets and they are still being put out there even if you and i are not seeing them. Does that really change or combat the problem or the real issue . The one thing it could help is make the harassers less effective because one of the things they really want is to rile you up, respond and get angry and block them. Emily you dont respond, do you . I know. I do block them and they respond and say oh, ha ha ha, you blocked me. And they feel good about that. But there are definitely trolls out there making memes with your photos, tweeting out your personally identifiable information, attacking members of your family. When it gets to that level that is kind of stuff you want to see and be able to deal with. So its definitely not the full solution. Just something twitter is working on, debating. Hopefully there is more to the package. Emily how much do you think this problem is undermining the broader business in general . Overall weve talked about user growth issues and new monetization issues, the stock price is suffering. How much is this harassment problem contributing to the overall picture . I think it contributes to a majority of the bad publicity about twitter. Its caused several high profile people there was a New York Times reporter who had to leave earlier this year for a barrage of antisemitic tweets. Leslie jones, the actor from ghostbusters, was forced off twitter after she got a lot of racist and sexist tweets posted about her. Emily and then she had stuff posted about her on line . Yeah. And it can be a horrible space. A lot of this happens anonymously and you can block these people and they can keep coming back and doing it under a different name. I think its going to be a constant battle. Its hurt their user retention, not user growth. Emily well, thank you for that story you broke. Another story were watching, facebook is responding to controversy earlier this year over whether the editors silenced news stories on conservative news. Facebook said it will stop using a team of contractors that sorted the news, but facebook had already internally conducted an investigation and said it found no bias. Later this hour, how easy is it to hack into your car . The rise of socalled white hat hackers focused on the Auto Industry. This is bloomberg. Emily zurich is aiming to be europes next major tech hope. The city is one step closer to achieving that goal with the launch of a tech accelerator called kick starter. It will help develop startups from 30 countries, including from 19 countries. Caroline hyde has the story from berlin. When thinking of tech hubs, zurich does not really come to mind and the swiss city is trying to change that, funding a new kickstarter accelerator. This was unveiled earlier this week backed by Credit Suisse and Big Tech Companies looking to help entrepreneurship in the city. One told us why it could be a winwin for her particular industry. What it hopes is to find talents, interesting new ideas, but also to help the startups with their ideas to try them out and also in the kickstart accelerator to do proof of concepts on their ideas. What that does is they can really test if their Solution Works, what it takes to bring it live and to implement it in a Large Corporation like ubs and at the same time it enables us to see if thats a good opportunity. At the end of the day we want to see if these businesses stay on in switzerland and help create jobs here and help us to be a more efficient and Better Financial Services offering bank. Kick started is a division of 2025. We spoke to the head of that company and he talked about the wall between their company and the war for talent between their company and the rest of the world. Zurich is a very innovative city and industry. But probably in terms of the future, i think you are right, we are a bit behind the curve. Why . Probably because there has never been a real crisis here and at the end of the day, Industries Need crises to have urgency to change something. I am very optimistic. We need to work on the taxing questions. There is not a very favorable situation in zurich at the moment. You find a company, go into the First Financial round and lets say the Company Comes up to a valuation of 10 million, the founder has to pay fortune taxes on the 10 million so its going to basically kill his company before its really taken off. So we need to work on political and tech issues as well as we need to be a little bit more flexible and faster. But it started a year ago and basically 40 of the largest Swiss Companies have join the initiative and i think we have achieved quite a lost we started late but were speeding up. Digital europe begs the question of 2025. What sort of talent pool do you want . There is such a fierce fight for talent whether it comes to technology . The kind of, lets call it a war of talent. I think thats the most important point. What we have discovered of course is the great system of schools and universities we have, be it here in zurich or in the french part of switzerland, lausanne, so we have great science and knowledge culture in this country and were trying to create borders between the big universities and the startups and of course the big enterprises. This kind of bridging between science, education, and economic and Industrial Companies is very important. Does brexit help at all . Can you lure up startups from london . I think in the Digital World we should not hope that anybody is going to be harmed so somebody else, another c. E. O. Or cluster is taking advantage of that. So far we have not seen any impact that brexit is creating kind of difficulty situation for the fin Tech Industry or cluster in london. Its probably too early to say but we all hope its not going to happen because its not going to help anybody. Its rather europe has to get stronger and stronger and stronger regards digitization compared to the u. S. So another city wanting in on the top tech hub. Well see how that fares. Emily . Emily carolyn hyde reporting from berlin. Coming up, the vegan mayonnaise maker Hampton Creek facing fraud charges from the u. S. Justice department. Well dip into that next. This is bloomberg. Emily a story were watching. Theranos said it will appeal the decision to revoke its license to operate in california. They said its made substantial progress to improving practices there, including new lab leadership. Another startup in silicon valley, Hampton Creek, the makers of vegan mayonnaise, ands facing aaise, now Fraud Investigation by the Justice Department with reports that Hampton Creek bought its own product around the United States in an effort to make the mayo appear more popular than it is. When contacted, josh tetrick, the c. E. O. Responded to bloomberg with the following statement. We have no reason to believe this is true. Here to give us more details. Olivia, who has been reporting on the story. What is going on here . Well, this is a remarkable situation here. Earlier this month bloomberg reported that the company had been purchasing its own products and a week ago the s. E. C. Opened an inquiry, not an investigation, i want to be clear on that, into the potential of fraud or misleading investors and this morning bloomberg reported that the department of justice had opened an investigation into potential fraud. Emily right. What is the d. O. J. Looking at . Into the same things. They have more power pause they may be able to bring a grand jury, which allows them to get more information and they can press criminal charges. Emily so this potentially escalates it to a criminal case, right . Yeah. Could be very serious. Emily one thing that surprised me is the d. O. J. Took action so quickly. With theranos, it took months for it to be at least publicized after the wall street journal broke the initial story. Why do you think this is happening so quickly . I really cant say if its happening so quickly because i wouldnt know how the d. O. J. , how quickly they normally move. What ive heard from my colleagues when they reported on these kinds of cases is that this is really quite fast. Why, i just dont know. Emily youve been putting out a number of stories on this, looking at it very closely. I know you have been criticized for picking on the company and some employees are not happy with you, yet some of your sources are from within the company. Talk to me about how it all unfolded. This all started because i was really struck by Hampton Creek, what i thought was a beautiful mission, a really compelling founder who blew me away with his charisma. I was actually introduced to josh tetrick by an investor in Hampton Creek, and my intention was to write a story about this company that was doing something really impressive, to replace animal proteins with others and when you think about it, there are really profound sustainable impacts that can happen here. So i started with that intention, but as i started to do the profile of the company i essentially learned that there might be more than meets the eye and thats what people told me. Emily olivia, thanks koch for thanks so much for that update. Mark i am mark crumpton. You are watching bloomberg west. A check of your first word news. A federal judge temporarily ruled the university of North Carolina cannot block two transgender students and an employee from using bathrooms that match their gender identity. The plaintiffs filed suit, challenging a state law limiting protections for lgbt people. The judge says the injunction only applies to the plaintiffs, but said they also are expected to succeed in their claim that the law known as hb2 violates the federal title ix law that bars sex is commission in discrimination in schools. Secretary of state john kerry says he and Russian Foreign minister Sergei Lavrov have approached clarity on syria. They said the majority of issues needed to reinstate the ceasefire and improve humanitarian access have been resolved. Sec. Kerry in the next days, our experts will meet in geneva to conclude the few remaining technical issues and to move forward, to take the steps necessary to build the confidence to overcome the deep mistrust that does exist on all sides. Mark secretary kerry says experts will remain in geneva in the coming days to finalize the remaining details. Frances Supreme Court has overturned a towns burkini ban, a move coming after some muslim women were forced to remove bodyconcealing garments on French Riviera beaches. The binding decision is expected to set a legal precedent for all the 30 or so french resort municipalities that have issued similar decrease. Decrees. The United Nations childrens fund, unicef, warned friday there has been a sharp rise in the number of refugee and Migrant Children stranded in greece. Unicef says over 2200 are unaccompanied and vulnerable to exploitation. This new influx comes at a time when greece itself is really struggling to cope with its own economic challenges. Public service has been cut back. And, of course, the influx has created an additional challenge to the system. Mark for the second time in as many days, a trial against brazils president Dilma Rousseff was temporarily suspended after lawmakers began yelling at each other. President rousseff, who is currently suspended, will speak on monday. She is accused of breaking rules in her management of the federal budget. She denies wrongdoing, and says lawmakers are trying to stage a coup. Global news 24 hours a day powered by over 2600 journalists and analysts in more than 120 countries. I am mark crumpton. This is bloomberg. Emily this is bloomberg west lets look at the future of transportation n