Twitter, a redesign, really interesting. My whole twitter page is very different. It looks a lot like facebook. Twitter is experimenting with things like this all the time. Current users get upset when things start to look different. That is the ultimate issue. Twitters appeal to people who do not use twitter, but not alienating people. User growth is falling down. They have to address that. We are following a news story. The Obama Administration is releasing new Cyber Security guidelines today to improve their defenses against hackers. They will outline some guidelines, but these are voluntary guidelines. It is a rising issue. In the context of what was going on with the nsa, more and more security things around digital lifestyle and where people record their behavior in different ways. One of the big criticisms is that it does not offer any incentives for companies to make changes. We will talk a little bit more about that. Phil, this is the result of a yearlong effort. Is this really going to change . It depends on who you ask. This is a nice start, but it is not anything that will change the game. What they are laying out is a group of best practices. You hit the key point. Missing from this document, incentives to get Big Companies to really want to participate. They have to pay for infrastructure and be careful about information sharing. None of that is addressed. Until it is, it will be difficult for the companies to jump in. What kind of incentives are you looking for . We think this is a very good step on the part of the administration. There is more that needs to be done, including steps Congress Needs to take. The Financial Services industry has already spent a tremendous amount of money in developing systems and protections. We know there is more to be done because we are only as strong as our weakest link. They will begin to spur, across all sectors we view this as a positive development. The financial industry sees the least amount of successful hacking. What does it understand that places like you name it, target, yahoo , twitter we do not represent the Consumer Finance area. We look at it from a markets perspective. So many ways to come into the system. You are only as strong as your weakest link. What has happened in the case of target and Neiman Marcus indicates that there are risks. This needs to be a top priority for the administration and for congress. Is it the responsibility of the federal government to give a company like target incentives . A lot of other Companies Look at what happened to target and Neiman Marcus, they have plenty of incentives right now. How are Companies Like target different from utilities . Different from Financial Services companies . In the grand scheme of things, they are very similar. Kens point is the key point you hear from administration officials. As long as there is a weak link, there are major problems within the system itself. Maybe a leading indicator of not only these attacks, but maybe they are getting worse. As members of congress, if they cannot find some legislative fix, these problems are just going to continue to snowball. What you see with target and Neiman Marcus and the retailers, people are saying, we have a weak link. We have major problems systemwide. Ken, you have run experiments where you are testing out a nightmare scenario. I think you call it quantum dawn 2. We will do another one in a couple of years. They are working with our regulators, the treasury department, across the Financial Services industry. We have looked at what a cyber attack on the equity markets would look like. What we learned about this, it is not so much about incentives, it is about the need for better coordination between the industry and our regulators, the need for better information sharing between industry participants, market participants. Some of that is where congress can help in providing Liability Protection so when the industry is sharing information about attacks or sharing with the government, they do not trip other regulatory rules out there. I think we look at it more in the case of lets make sure we are all talking. It is not just in the Financial Services industry, but in the other sectors downstream. We need to be seeing more engagement and activity. Phil, with the lack of policy movement in congress, is this a symbol of the toothlessness of the white house right now . It is offering suggestions because it is not offering legislation. This is as much as they can do. From that perspective, it is fairly robust. They are all working together on these guidelines and they have worked with hundreds of companies to pull the standards together. When you get a positive response, they are doing something right. There is not a lot of legislatively you can do. Until that changes, it will be like that for a while. Thank you so much. We will talk about the twitter redesign. It is looking a lot more like facebook. How will that impact user growth . I am emily chang. Mobile payments Companies Like square and paypal are growing in the u. S. , but facing higher levels of regulatory scrutiny and security concerns, especially overseas. Could social media hold the key to making them more secure . You were at paypal for nine years, at google for three years. You were kind of like a guru in this space. I am passionate about innovation. Innovation comes from the small guy. Even the early days of the web, people forget about the company who invented the payment gateway. Innovation comes from small guys. They push the limit. Wepay is looking around the corner and focusing on the next chapter of ecommerce. They have an amazing Risk Management asset. They use facebook to authorize payment, which sounds interesting. I wonder if you have a hard convincing customers. It is not just focusing on facebook. Payments has always been about risk and technology, right . This is the secret sauce. Even when you go back to when visa was started. They would say they are still a technology company. Building great risk systems for todays problems has always been a recipe that worked. You can look at your facebook profile and tell a lot more about you than where did the transaction happen . Wepay made a huge pivot. How do we know they are on the right track . The numbers are pretty good. Look at this new chapter. For 15 years, ecommerce has been about products. You used to go to a corner of your house and Search Online and have it shipped to you. The future is these marketplaces that bring buyers and sellers together. It is a crowded space and a challenging space. You said just over a year ago when you were at google wallet, nobody is delivering any solution that will get scale, including me. What are the Biggest Challenges . I was speaking about offline. It is a longterm thing. How do you update todays swipe to Something Better . In terms of marketplaces that are reinventing services, think about the way you find a babysitter or you get your laundry done. All of these are services coming about in a new environment where consumers are also creators. Fundraising is another big one. The marketplace has a new set of payment problems and risk problems. We are seeing Companies Like square run into big problems internationally. The rest of the world uses chip and pin and we are behind. We are still using swipe cards. Is wepay going to get the same International Problems . We focus on online marketplaces. There is a lot of room to grow. It is focused around the experience and the payment is an afterthought. That is what these marketplaces are looking for. An ebay, paypal spinoff . Good idea, bad idea . I can see both sides of it. Who is going to rise to the top . I do not think it is a one winner takes all. The mobile platforms are in a good position. We are in the age of developers. Really smart engineers that want to reinvent anything. Anyone who caters to those, everything is a service, will also win. Thank you for joining us. We will be talking a little bit about google Driverless Cars and what a driverless city might look like. The results of a new intel study. Twitter is testing a new page redesign and it looks a lot like facebook. It looks a lot like facebook. I thought, dont change my twitter. That is one of the big challenges when a company like facebook or twitter tries to make a big redesign. Tell us more about this test. The company said on the call last week that they would be trying to be make twitter more approachable for users. They will make it easier to understand. This is a move in that direction. People are very familiar with facebook and facebook has 1. 2 billion users and twitter has 241 million. The numbers we saw in twitters quarter really showed them struggling. They added only 9 billion users in the quarter. I use twitter because it is different from facebook and i can see a lot more in one quick look than i can scanning my facebook page. Yesterday, i walked around downtown and i talked to people about why they were or were not using twitter and out of the dozen people i asked, nobody was a twitter user except for one guy. That guy had not tweeted in a year. This is in San Francisco . The quarter in which they announced their ipo, they get all kinds of universal press coverage. The number of timeline views per user declined. Isnt that the best way to consider User Engagement . What you want to look at is how many retweets and favorites. Why dont they release that kind of data . Search engagement has gone up, for example, 120 . It is possible to change the design in such a way that users engage more. It is just a test, dont worry just yet. Sarah, thank you so much for bringing us the update. Robocop is returning to theaters. A remake of the 1987 film opens today. Jon erlichman is with us to tell us more. We will get some popcorn and go see it. This is a weird story. People have seen the trailer for this film. Robocop is cruising around town on a bike, which is a ninja from kawasaki. Is that your bike . The producers reached out to us and they were interested in using the bike. They could not work out a deal where they would provide the bikes because there was some beef over the branding. The producers still used the bikes. A director who might be interested in using a particular brand. A great example, in minority report, Steven Spielberg wanted to go inside a futuristic lexus factory. A lot of times the brands are being involved because the creative types are interested in the brands. What about the suit . There is a potential 3d printing angle. We have come a long way since 1987. They go for the more sleek look overall. What you end up with is a firm called legacy effects, which also works on the iron man movies. Designing this with some 3d ideas. Lets use 3d printing. They are using this in hollywood, the technology, like they are using it in the fashion industry. Not for emily chang. Thank you. We will have more of bloomberg west after this quick break. You are watching bloomberg west, where we focus on technology and the future of business. Hackers have hit at least one website owned by las vegas sands. They posted statements criticizing the chairman and staunch israel supporter over comments he made about iran. The company is working with law enforcement. Disney is launching a program with the support of techstars. They will select up to 10 startups for the threemonth program. Participants will get 120,000 in Venture Capital as well as mentoring from top media and entertainment executives. Alibaba is going to launch a new ecommerce site in the united states. The website is being developed by alibaba subsidiaries. It is focused on loading a compelling platform. Today, here in San Francisco, Francois Hollande will be visiting, first time in 30 years of french president has visited San Francisco. Do you take a french president to a french restaurant . Apparently, the answer is yes. He is going to be having lunch with sheryl sandberg, eric schmidt, jack dorsey. Part of his agenda, look, france is open for business. Start your company in france. It is the Third Largest company in europe. France has had issues with technology. A long list of big tech mergers that have gone poorly. The difficulty has been making the kinds of rapid changes in employment that Technology Employers like to make. They struggled for years. There are some tax evasion probes against linkedin and google right now in france. We are friendly, we are friendlier than we were before. Please do not divert your money to ireland. Good luck with that. We will continue to follow Francois Hollande and his visit to San Francisco. We should hit every french restaurant. I am hungry. To the future of american cities. Is it the jetsons . The driverless decade may be upon us. 44 of people aspire to live in a driverless city. The changes in new york. Times square is now pedestrian. Reducing the number of cars by taking the roads away. Is a driverless city full of Driverless Cars or no cars at all . Steve, what exactly do you mean by a driverless city . What is the world you would like to see . 44 are interested in seeing a completely driverless city. A city environment where they can hop into a car, there is no human behind the wheel. It is an optimistic view. I doubt this will happen in the next 10 years. Life is more convenient, less congestion. Selfdriving cars tend to be safer. The number of people in america not getting drivers licenses. Is that a notion about a sharing economy or are there fundamental changes with the way people look at it . People my age and older, we have been sold the American Dream of car is a symbol of freedom. If you are a millenial, you are much less likely to see it that way. You have to pay insurance, taxes, and park it somewhere. Most cars spend 22 hours doing nothing. The millenials are much more disposed to sharing cars. The ideas that you would not really ever own one. Is this happening only in cities . What are the trends outside cities . In the suburbs . We might forget the rest of the country really still needs their cars. You will see more and more people coming into cities as a global trend, but you are right. People will decide what kind of car they want to drive. To take away the pressure of driving, more pressure in an urban environment. If you have been in a big city, you know how miserable it can be. It is not the vision the car company sell you of driving on an open road. There is a bifurcated notion of what a city is. The preindustrial cities of San Francisco, new york, boston, you could argue d. C. There are postindustrial cities, the cities that are growing like crazy. A very different physical infrastructure that require automobiles in a different way. Because most of the cities were developed after the era of motor cars, they developed around the notion of motor cars. This may be a way to have Public Transportation in the form of a selfdriving car. People are really interested in that model and very open to the idea. Cars that talk to each other and share information, to be able to share information about what might be some hazards up ahead. Or maybe ways to move cars outoftheway so ambulances and fire trucks can get through. That is a really good idea, they would love to have instrumentation and trackers in our car. We have also talked about the technology as a means to prevent Car Accidents and crashes. You also talked to people about drones. What is Public Opinion about drones . Are they scared of them . This is the thing that surprised me. We have all heard a lot in the news about drones. People are understandably anxious. In this survey, about 60 of people are enthusiastic about drones for public service, drones that could go into a building and inspect the building, check the air for chemicals, understand where people are that might need help. If an ambulance cannot get crosstown because of bad traffic, for a drone to stabilize the patient. The jetsons are the future. Once a week, we do a story. There it is. Steve brown, thank you so much for painting a picture of a possible jetsonlike future for us today. I want to cover a story out of bloomberg news. Apple working on a settop box to be announced as early as april. Peter covers apple for us and joins me now. We are talking about potential content players. There is a new apple tv, this is an upgraded apple tv box. It could be announced around april and it could be ready in time for christmas. We are hearing talk of a new interface that would make it easy to use. Would this be different from the apple tv . We do not know. Apple does not often come out with something radically different. Content is what they have been missing. It is still a hobby relative to the size of apple. They have referred to it as a hobby product. You know, if they can get it so they have all Time Warner Cable content on it, now it is a place where it is a primary viewing vehicle. We are hearing it is going to have a processor and be easier to use. The pressure has been on apple to come out with something new. It does not sound like this is really it. Even in the tv world. We have been hearing for years they would come out with an actual tv. They have a lot of big projects in the works. They are clearly working on iwatch. It is a major effort for them. We will see whether this is an evolutionary improvement of a fairly minor product or whether this is when they start to craft the living room in a big way. What are we hearing about a Real Television set . Who knows . Clearly, apple has the wherewithal to look at a lot of things. I am sure people are working on a television somewhere insideout. There are lots of questions. It seems like sometimes the street wants margins. Sometimes the street wants growth. A tv would cause a margin problem for them. What about consumers . Consumers want new products. This is true. We will continue to follow the story. We will be back with more bloomberg west after a quick break. Welcome back to bloomberg west. I am emily chang. Vmware is partnering up with google. Could the cloud plus Microsoft Office with chromebook equal the ultimate modern desktop . Big announcement just made within the last hour by vmware and google. How do you describe this . This is awesome and it will revolutionize the way the two brands bring chrome to desktops. We are able to bring a powerful technology and load that into google chrome. How much software is made for chromebook . If you think about it, the whole web any application that you are used to using, everything runs designed for chromebook. What makes this interesting, it seems to me it would allow im a big excel geek. Powerpoint, those things people use so much. We care about all of our users. There is a trend towards people moving towards cloud. They have certain legacy applications they want to bring to this. They can have the cloud and be able to transition seamlessly. You have a lot of customers with windows xp. As you think about the way in which you want to be able to handle many of those old applications. They still want to keep them on their desktop. It will be the new generation of apps. It will provide a lifeline to many of the old apps. It will be a bridge to the future. Because the desktop support will no longer be in microsoft, rather than upgrade, they will run on the cloud and users use a version of those apps. It is all customer choice. In certain industries, this is becoming the norm. Look at retail, for example. Different stores all over. Now you have to figure out how to manage the computers and take care of those computers. You do not have an i. T. Department. A combination of chromebook and your old existing very secure. You can use them from the cloud and have them delivered to these very secure devices. Can you quantify this announcement today . We hope chromebooks will be used by businesses after that. It is not just the cost of hardware. You can save up to 5,000 over the lifetime of the single pc user. They are cheaper, right . The cheap part is education. The number of different education places, putting these devices in the hands of kids. This is going to be a big benefit. Last year, one in four laptops sold were chromebooks. It is going to improve peoples lives. That puts tablets aside. The tablet has also crept in there. It depends. Think about a Grade School Kid doing simple math, that works well. If you want to write an essay or history assignment, you want to keep a laptop. Google has a great story with android. We want to be able to stretch to desktop and mobile. Thank you very much. Thank you. I want to get back to that news about apple, said to be working on its new settop box to be announced as soon as april and to be on sale by the holidays. Jon erlichman is with us from los angeles. Apple is in talks with Time Warner Cable and other partners about content. What exactly would a Partnership Look like . When you think about the people who use cable today and the box they get with it, you pay for that box. If you are in a position to use apple tv and still have a cable deal, are you able to do away with some of those costs . I think on the actual hardware, apple has to stay competitive. They have to stay competitive with roku. We just heard some on the google story. The chromecast they put out at a very low price got a lot of peoples attention quickly. That is part of the story. Apple has to continue to come out with new devices. The pressure has been on apple to come out with something new. It does not sound like the big new tv that people have been talking about. You have to keep microsoft in mind, too. The xbox1 has some of these capabilities. What do you hear about apple . They were trying to get involved in these negotiations with the carriers and with Cable Operators, but the Cable Operators were very reluctant to make a deal with apple. They saw what happened with itunes and the music industry. We know the Cable Companies have been especially difficult to work with. Hasnt that been a big stumbling block . The biggest fear is that if your cable bill is looking too big and too high, you are going to choose one of these alternatives. Maybe this is a sign that they are aware the alternatives are getting better. Look at the numbers for netflix and that is so easily accessible on these platforms. They want to live within that world and make sure they are relevant to those people and they are still being relevant to anybody paying for cable. It could be smart if it is executed in the right way. They are scared about it because the technology is enabling people to shift away from the traditional ways. It would be nice if you did not have to pay for cable and netflix and apple tv. Some fantasy land where emily chang lives. We will continue to follow this story. Thank you for watching this edition of the show. We will see you tomorrow. The following is a paid program. The following is a paid advertisement for omega xl. My name is larry king. A few years ago, i had to have open heart surgery. When i recovered, i established a cardiac foundation to help people like me avoid heart problems with proper foods, medication, and a healthy lifestyle