Brokered by the u. S. And russia has failed. France arrested several people in connection with a truck bomb that left 86 dead. The suspect were linked to the attacker who was killed by police. Im Mark Crumpton in new york. Bloomberg west is next. Emily im emily chang and this is bloomberg west. The u. S. Paves the way for Driverless Cars to hit the road. We will hear from government and Industry Experts about where innovation goes from here. Adobe scherzer popping on higher software. Their cloud and is india oracles next frontier question mark the ceo tells us about her ambition for that fast and growing market. First to our lead the u. S. Government is paving the way for Automated Vehicles to hit the open road. A framework released by the highway regulators say cars need to meet a 15 point check list showing, for example, how their virtual drivers will function and what happens if they fail, how they have been tested. In an oped for the pittsburgh gazette, president obama threw his weight behind Driverless Cars as a way to save tens of thousands of lives. Automated Car Technology has been the focus of scrutiny in recent weeks after a tesla car crashed driving on autopilot, killing the driver. Up with mark rose kind on the release of new guidelines. I began by asking how he would make sure Driverless Cars are safe when they hit the market. Mark if you look at the policy we released today, the first part is guidance that includes a 15 point safety assessment. The list the 15 areas we expect manufacturers and designers to look at as they design, test and deploy these vehicles. This is a departure because were trying to build safety into the front and rather than the usual department of transportation, which is waiting until someone gets hurt or killed. Safety in the beginning is a new proactive approach for us. It is interesting because the Companies Making these cars have different goals. Tesla is pursuing a semiautonomous model and google thinks it is confusing it is pursuing a full autonomous model. Mark what you just represented as a full range of what is out there. Nobody knows what is going to be safest. That is why this policy identifies certain performance objectives that we expect manufacturers to attain, but we do not tell them how to get there. That means we are opening this up for all kinds of innovation to look at new safety mechanisms for people to save lives on the road. We are waiting to see what will be most effective. At at what stage will regulators need to tackle things like insurance and liability and who is at fault when something goes wrong . Mark the second part is a model state policy that differentiates what the federal versus state rules are and specifically, for the states responsible for the human part of the driving, they have liability and insurance concerns. Theres a specific recommendation to start a commission to look at Liability Insurance for how the state should address that issue. Pervasive do you think Self Driving Technology will become . Greatly think pervasive. It represents great lifesaving potential. It is a great future but it is being created in front of us. Theont really know what future is going to look like. It is being designed and innovated right now as we are experiencing it. You think it will become pervasive . Will the drivers license become obsolete . If so, how soon will that happen . Mark the pervasive part is as soon as we can get it on the seat on the street. Im not sure drivers licenses or people who are going to want to have their own hands of the wheel with the top down on highway one out there in california im not sure thats ever going to go away. How involved are Companies Like google and tesla shape these guidelines . Did you consult with mark them mark and how often . Rangesulted with a wide of people. We had an open Public Meeting in washington and in Silicon Valley. We had almost 50 speakers and dozens of people who submitted stuff to a public docket. We have interacted with safety advocates, many factors, Tech Companies, academic to do research in this area and a wide range of people. We have a is out but 60 day comment time and 23 other day thats we will be doing over the next month to make sure we continue to learn and make a commitment to annually update this policy. Emily my earlier conversation d. Ere with mark rosekin i also want to continue this conversation with david strickland, now the counselor for the coalition for safer represent several companies. Thank you for joining us. Where do these new guidelines hit the mark . David thank you for this opportunity. The process is where it is pitch perfect. Looking at traditional rulemaking that can take eight to 10 years before it cycles for ah is way too slow tremendous lifesaving technology such as self driving cars. And hisdepartment leadership, to find a way to create a Regulatory Framework that is faster than the status quo is a tremendous outcome. Where do you think they missed the mark, where they could have gone further or did not go far enough . David its a 114 page document and my coalition and team members are reviewing it. Theres a lot of awful substance that went into the work. There are number of policy issues, so i cant say specifically which is the perfect aspect they are looking at or where there are opportunities for improving it, but thats why the agency has created a 60 day comment time as we work through those issues. We will speak to them specifically when we have had time to absorb it. Emily where do you think the big issues will arise . David there are a number of issues that will have to be fully and thoughtfully. Liability is one aspect. Preventing a regulatory patchwork is huge. While guidance is helpful in creating a framework, it is not a legally enforceable regulation to control the marketplace. There is still an opportunity for states and localities to create differing approaches which is the reason why the administration has taken a step to issue hope lee a framework which will be followed by the United States. Thats one of the largest issues we will be working with to make sure it does not happen. An interesting question we did not get to is the issue of mapping. We have seen over hit the street with self driving cars in pittsburgh, which has incredibly difficult range navigate. Do you think regulars will beginning involved in mapping and will there be privacy issues that arise . Geolocationng and are difficult issues. One part of the policy guidance is having the agency asked questions to figure out best methods and approaches. I think we are early in that aspect in making sure the maps are accurate and properly dated personallyive of identifiable information and geolocation. Looking very is much forward to working with the department as we go forward and thinking about mapping issues. David strickland, thank you for joining us today. Of Car Technology, tesla is updating the software in its cars after chinese white hack hackers managed to break into the model less control system, taking over the locks, breaks, turn signals and when of wipers. The company said on tuesday that a realistic estimate is a risk to our customers was very low, but this did not stop us from responding quickly. Days toys it took 10 fix this particular vulnerability. Microsoft shares gaining after hours after the Company Announced its buying back up to 40 billion worth of stock on top of an existing 40 billion repurchasing program that will be finished by the end of the year. They are also boosting their Quarterly Dividend to . 39 a share. Microsoft shares have jumped 31 in the last year. Coming up, a singaporebased startup that beat uber to the punch. About the company that has the worlds first self driving taxis. Is bettingra catz big on cloudbased growth in india. This is bloomberg. Emily google has sent out invitations for an october 4 event in san francisco. They are expected to unveil their new Flagship Smartphone called pixel. Theres also rumors about a four k capable chrome cast and the daydream Virtual Reality headset. On october 4 to bring you the latest news as it unfolds. Earnings adobe shares popping, trading 4 on the news that company with reported thirdquarter revenue of just under 1. 5 billion. To explain what is behind the boost, i want to bring in our editor at large, cory johnson. Adobe has been undergoing the shift to the subscription model. How is it going . It is going well and going well across all their business units. In the short term, the market like the results. By that was interesting if you look at the 55year stock chart for this company. Dramatic move up and to the right and it continues to go that way for this company. , you are r chart if you are a stock owner, thats what you want to see happening. It reflects a big change they made from selling boxes of oftware to getting all emily their customers on to the cloud. Users have complained about this mandatory shift to the cloud. Its not reflected in the stocks, but is it reflected in the numbers . Cory not at all. Increasingly, a strong pace, 20 growth in a quarter they just reported, but steadily increasing is the size of the revenues. The percentage of growth is very strong. The Third Quarter can be difficult in the place with a 10 to screwup is where orders tend to be soft us. They were able to deliver a Strong Quarter this late into the transition. Oracleyou have been at open world for the last couple of days. The company is looking to reposition itself in the evergrowing cloud market. Hurd told ceo mark you that amazons lead is over and you spoke with the code ceo, safra catz about the push into india. Phenomenala is a opportunity. As big a contribution they were, i believe the potential ahead of time to what it is now because the market is so enormous. We had the chief minister say the state alone has 110 Million People in it. Can you imagine . So many of them still need the opportunity for so many young people to andt and pull in technology become consumers. India, i focus on think you have been there personally. You have put a lot of effort into it. Oracle is now focused on the cloud and where india is, that adoption could happen now. Safra with cloud technology, you can deliver much more quickly and at a much lower price. Both of those things are important in india because you can scale fast and they are on a very short timeframe. The chief minister wants to have things up and going throughout his state in three years, not 15 years like plans usually are. We can get everything going in the next year and be delivering to the citizens right away, and additionally, with cloud it allows you to benefit for the massive economy of scale, not only for oracles mobile infrastructure but india and that infrastructure and that size. They needbetween what to do to empower their citizens and the technology we bring is a perfect match. I imagine the size of the business is different to because you can get them up really fast. You can handle industry of all sizes from farmers and remote villages to Industrial Companies and the world are based in india. We can scale all the way to full size with the cloud. There is a governmental digitization strategy, unlike a lot of countries. What got me started was the Prime Minister came here to Silicon Valley to talk about saw a realia and i ability to bring everyone forward. I said i have to go and i met with the Prime Minister and the chief minister and many other officials and what i saw was a real unity. They very much had a vision and a were going to make it happen and they were going to make it happen fast. Oracle and embraced us, i knew they could make it a reality. The world of the cloud, is the database still the center i realize im asking the ceo of oracle. What is the database . Thats where all the big data, all of these things all go somewhere. Platform is the database. Tools, all the analytic the infrastructure under it, all the applications, sewed dont miss our foundation. It is not all there is and there are so many new technologies enablee able that your mobile phone, that enable sensors, that enable much better decisions. Emily a very rare interview there with oracle coceo, safra been larryas ellisons righthand for a long time. Interesting to hear her speak. What stood out to you . Cory does the first time she has talk to us on camera. So much power and Financial Assets like no one else. They can out market sales force and buy anything they want. To be really getting a lot of traction. Emily they have also gotten a lot of criticism that they have not done it fast enough. The other types in the industry are pushing this idea that oracle has been way too late to the cloud. They told us last week they were criticizing them for buying oracle revenues and i asked about that and listen to what she had to say in response. Safra we are growing faster than they are by a lot. Im pretty sure he would like to see that. Emily take that. Cory i look at the sales function for salesforce they are doing a 10 of acquisitions. Some investors are not happy about it. I know you spoke to mark heard about it. What are they saying about it . I asked if they were going to go higher. Going to vote their shares and they won a higher price. Says at 109 is the price theyre going to pay. Emily the cloud wars are ongoing. Salesforce, microsoft how do you see its differing in three years from what it is today . When it comes to the hosting business, the hosting business as a service, microsoft is the number one player there where you have ibm and google trying to be in that business, theres a tremendous outlay of cash. Amazons capital expenditures, about 1. 2 billion. They would have to spend billions and billions of dollars to build a business as big as amazon in the cloud. Its going to take a lot of spending. Cory johnson, two great interviews and row. Thank you very much. Coming up, the land grab among the worlds biggest right healers is growing. Details of the latest mega funding round, next. Emily the right hailing a ride healing at grab just received funding from soft tank, bumping their valuation to 3 billion. This is the largest ever funding round for a Southeast AsianTechnology Company and the latest example of how the Ride Services are arming themselves to fend off uber. Staying with car tech funding, lay at go has raised more than a billion dollars to develop its First Electric sports car. In a statement today, they say they got a handful of chinese investors for the project including legend holdings. Last month, another company said it had raised a billion dollars to prepare to challenge tesla. Coming up, the quiet rise of chinas number two smartphone brand. Shout me. Re taking on if you like Bloomberg News, check us out on the radio. This is bloomberg. Mark im Mark Crumpton. Lets begin with a check of your first for news. Senator warren says the wells fargo ceo should be criminally investigated by the Justice Department and securities regulators over allegations Bank Employees opened accounts without customer permission to meet sales quotas. The massachusetts democrat is one of the fiercest critics of wall street and challenged him about what he has done regarding his repeated claim of being accountable. She asked if he had returned one paid orf what he was had fired any executives. Gutless it is leadership. Authorities in the greek island of lesbians are calling for the evacuation of thousands of refugees after people set fire to a detention camp. Transfers to the mainland would be limited to avoid secondary movement to the rest of europe. Are than 4000 refugees housed at that camp. A volcano in costa rica corrupted four times, forcing authorities to close the capitals international airport. The airport will open after the ashes cleared from the tarmac. It has cost more than 200 million to battle a wildfire burning on a californias the egg sir coast. Not include the actual damage done by the fire like destroyed homes. Im Mark Crumpton in new york. Its just after 6 30 on tuesday here in new york and 8 30 in the morning in sydney. My colleague, paul allen, has a look at the markets. Zealande market in new currently showing the most modest of gains. Ab 2. 4 percent after earnings came in very strong. We are expecting a flat start here in australia, though Energy Stocks may see a boost oil. U. S. Ch lead from the markets waiting on their key policy decisions today. Deep anding to see negative rates from the bank of japan or more bond buying or both . . R are we going to see neither no action from the bank of japan would add fuel to the speculation that they are beginning to run out of ammunition. We are expecting an announcement at 1 p. M. And a press conference about two hours later. Theres no trade in japan because of the holiday. Im paul allen for bloomberg tv in sydney, australia. This is bloomberg west. Im emily chang. Apple had aen chance to unveil eseven but before that, a dramatic shift in the chinese Smartphone Market was starting to take shape. Lesserknown domestic players had been seated show me top spot in china. Joining us to take stock is David Gramley in beijing and are Tech Team Leader in tokyo. Thank you for joining us. With gotten some new information on the status of the samsung recall. 500,000 new phones ship in the United States as replacement. Whats the latest . What we are seeing is like a trickle of phones that and that in peoples hands, ei