After processing some requests to have content hidden from search results, some news outlets have complained other things have disappeared. Google has restored some links to affected news articles. Is known for its lavish offices and Employee Perks and now you can add one more to the list high paid interns. The competition for talent is consistent the Companies Like twitter and linkedin are paying a big price for high school students. The average monthly pay for an internet twitter intern is nearly 7,000. Facebook pays over 6,200 per month on average. Traveling into the United States, make sure your Electronic Devices are charged up before you get into that security line. The tsa is instituting a new rule at several undisclosed airports for u. S. Bound travelers that phones, laptops, tablets must all be turned on to show they are not hiding a bomb. More, what is the impetus for this . Have they been finding bombs lately . They are not saying that specifically. Are scanning terrorism situation in different countries. Withthe tsa comes up something that theyre concerned andt, they will go ahead institute some new rules. Thats what we see in this case. Its overseas airports with flights come that come into the u. S. There are some airports we know in africa, the middle east and at least a few in europe including heathrow. Just a few International Flights will be subjected to this . Well, it could be more than a few. Airportsollection of that the tsa will not say which ones. They are airports that have there en route to the United States. It could be airports from countries that are known to be to have active cells of terrorists but it also could be airports in europe with flights that originate in some of these other countries and then there is a connecting flight for a destination in the United States. Talk to me about the technology because those machines that we already put all of our stuff through, they cannot detect whether a phone is hiding a bomb or potentially is a remote detonator . We dont know exactly what they are looking for or what theyre worried about. Cases, that in previous the technology that terrorists use for making bombs has changed at various times just a few years ago, the main concern was mechanical bombs. Five years ago, the tsa became more focused on liquids. Thats why we have had all these restrictions on liquids and the 311 rule with liquids and bags. As you know, electronics go through the scanners that they are looking for something specific but they dont go into details because its terrorism related and they dont want to tip off the terrorists to everything they know. We know that theyre asking people to turn on their electronics before they are. Llowed to board a flight if its not every person, its a random selection. The main message for travelers is to make sure those electronics are charged because they are serious about this and if youre asked to turn something on it wont turn on, you have a problem. Delayed. Be the airline may take the device from you and if you need to get on that flight, they may send it to you via a different means. They may rebook you on a different flight which would be inconvenient for the traveler. Talk to us about the evolution of the tsa and policies. It has been a long road and the rules are constantly changing. Where do you see what they are doing now and what is next . I think the big question for us in the United States is will these rules that they have designed for specific airports in europe migrate across the atlantic. Bethey do, that will ratcheting up inconvenience for the american public. Into someruns political problems when they do that. Congress can get involved. In the last couple of years, the tsa has tried to make the traveling experience easier and there are things like precheck and they will still try to do that. Plungis, thank you so much for that update. Samsung is just out with its earnings preview, secondquarter operating profit dropped to a twoyear low. Its the third consecutive quarter of declining profits. The worlds Biggest Smartphone maker is blaming disappointing sales on slumping demand in europe and asia and domestic consumption in china and competition from Companies Like lenovo and others putting pressure on their market share. What does it mean for smartphone sales globally . Even the cfo of samsung said last month that it will not be so good and it was worse than expected. What stands out to you . What stands out to me is the numbers on the low end of the smartphone side. We have all known that highend smartphones have been child challenged for a while. Its a pretty saturated market. The growth has been expected to be in the lower end. Have thema sudden also say now we are getting hit on the low end, that is a big red flag. That means there are challenges for samsung but also means it reflects challenges for the Smartphone Market overall. Is most of the pressure coming from china . I think a lot of it is and developing markets in general. Had one billion smartphones last year so where is the next one billion . Maybe there is not another billion. Maybe its more like 400,000 or Something Like that. Maybe we are heading toward a peak like in the pc market. They talk about tablets as well. Within a few years, we will be in an era where it will be difficult to make any money on hardware except for the biggest guys and samsung will make money but not at the levels they used to. Iphone sales are slowing down. I think apple will have a tough quarter again until iphone6 comes out. What about that and the larger screen size . Do you think this will be a new boon to the apple bottom line . I think it will be a nice fit for apple. There is clearly pent up demand for larger size iphone. We have seen everyone else moved to these larger phones. Once you have used some of these bigger phones, they are kind of nice to have. By the way, theres a direct impact on tablets. If ive got a big phone, why do i need a small tablet . I dont so it is all a bunch of factors coming together so i think youll see iphone6 does very well for apple which will hurt samsung on the high end. Theres continuing competition on others on the lower end and that means for samsung to move forward, they will have to depend on other businesses. That got semiconductors which is part of it but i would argue they will have to do something movingly different, software and services, do Something Like by netflix or something crazy that gives them an opportunity in the Services Space because i think they will need that longterm. So radical is not wearables are a smart watch . We will see them do wearables and as part of the incremental growth in hardware but that will not change the world. The price point these things are selling at, theres not a huge amount of profit potential there either. How does the Smartphone Market evolve . If it is plateauing, what happens three years out from now . I think we have a couple of years of growth. Instead of the numbers that people have thrown out around 2 billion per year, we could end at 1. 4 billion. After that, it becomes a refresh cycle. How frequently do i refresh my phone . That is lengthening because of i have a bigger phone then why do i need a tablet . And i will not refresh this as frequently. We have hit these devices and these are pretty good. Until i break it, i am good. What do you think about the market for wearables . Another report thinks the wearable market will decline. I was on the lower and. Will seeat in 2014 we more announcements for wearables than actual wearable sheet month shipments. Whatve not figured out they are really good for him what people use them for. Are we going to get people to use them for longer than four weeks . People use them for a month and then they give up. Would my nana have a compelling story yet. We will be watching but thank you for joining us. Annualhead, is the tethering that resulted in major buyingike jeff bezos the washington post, we take you to some valley next and you can watch us on bloomberg television, streaming on your phone, your tablet, and bloomberg. Com and now available on apple tv and amazon fire. This is bloomberg west, on bloomberg television, streaming on your phone, your tablet, and bloomberg. Com and now available on apple tv and amazon fire. Valley and the annual gathering of media and technology executives. The conference has resulted in major deals like comcasts acquisition of Nbc Universal and jeff bezos buying the washington post. When news can we expect this year . We go to some valley live. Sun valley live. Who have you seen so far . We have not seen anyone really yet. We have heard a lot and we have heard a lot about what we are not allowed to do. We are behind the fence and have heard about increased security measures. We are just waiting for people to arrive. They have started trickling in from the airport. Valley isthat sun frequently a site of techm a and that is heating up in google and facebook have been buying things left and right. What deals are you watching for . We always say a lot in the media landscape. About going to hear more what companies are reaching for in the future. Jeff bezos talked about Cloud Computing a few years ago. We are planning to talk to people about what they are hearing and see what the new ideas are that are making everyone want to do these deals. On all ofng that is their minds is talents and the competition for talent which is heating up. Youve got a piece out today talking about high paid interns, young interns, tell us about that. What was interesting in this story is that we heard that there was a lot of focus on internship or grams within companies. We actually found that people can teach themselves to program, it has become easier and easier to get a job just from being selftaught. That means that younger people ,re coming to these companies 17yearolds, 13yearolds, getting internships and getting paid and getting more experience and in some cases being highly recruited. These people are getting 7,000 per month. When i was an intern it was not paid sometimes that changed. How does a 13yearold get a job at air b b or facebook . You have to go to the hackathons. There are so many ways to demonstrate your knowledge of software and apps. One of the people we featured, michael, who interned for facebook this summer, he started crating apps when he was 13 learning from tutorials and googling things and figuring it out. Once his app had climbed the ranks in the app store, facebook called him and asked to talk to him about how he did that using our developer tools. The relationship with facebook started and led to an internship. They are getting an early start. You so much. We will be coming out to you throughout the next couple of days. Dropping her gym membership is a reason that could prompt a phone call from your doctor. We will explain how Health Care Providers are using big eta to keep you healthy, next. Welcome back to bloomberg west. Could you be getting a call from your doctor over your unhealthy Shopping Habits . Hospitals are now turning to big data to try to keep you healthy using Consumer Spending information from public records, store Loyalty Programs and credit card purchases in the hope it will paint a more complete picture to Health Care Providers and prevent people from getting sick. We have more from new york. Youve got a piece out in does this week about this. How are hospitals getting this information . They are buying up from data brokers, the same Company Selling information to retailers for years. Those retailers used to market new products like knowing whether a customer is pregnant or whether you should send them coupons for baby products. What these companies do is they buy hundreds of bits of information on every u. S. Consumer, things they glean from your Voter Registration or property tax records, they have details in every credit card transaction you make and every item you purchase with the store loyalty card. They compile this information and they sell it to retailers. Now they are getting into the business of hospitals in selling this to Health Care Companies and doctors. Is this ethical . Could this lead to discrimination . Care, doctors and hospitals are no longer able to deny coverage to someone because of their medical condition. Is this is the word creepy is one thing and a lot of readers have written in and people i talked to have said what i do between me and cvs or mcdonalds is between the two of us. Its not between me and my doctor. There are certain things i tell my doctor in certain things i dont. People do not seem to like the idea of having a third party, this doctor and hospital, now looking in on things they dont think are related to their medical care. How exactly will this work . Is it as specific as your dr. Picking up the phone and saying you had ice cream on friday . One example that was given to me by the Carolina Health care system which is one of the largest hospital chains in the country thats in the early stages of using this. They are hoping to collect all this information on their patience and then put it into a complex algorithm that will flag certain highrisk patients. A patient with asthma if they know you have not been filling your asthma medication prescriptions because they are buying your prescription records, if they know you are whining cigarettes at the drugstore and i know you live in an airy with a high pollen count, youll be flagged to them as someone is likely to show up at the er with an asthma attack or with obesity. If they know you have diabetes and they can see your eyeing a with yourar at cvs care members card and they know you no longer have a gym membership, you will be flagged as someone who is likely to have complications with diabetes and they can call you and say you have been flagged as a highrisk patient. Maybe you should come in and talk to a counselor. Is there a program we can connect you with . Maybe get a reduced rate on the gym membership, how can we help you . We are just in the early stages right now the doctor wont necessarily have the details and wont necessarily know that you bought junk food at cvs but he will know that something is going on and youre not eating a healthy diet or working out regularly and he can intervene from their. Interesting, i guess my diet starts now. Thank you so much. Tech ceos turn a crisis into an opportunity . The apple chairman gives us the answer when bloomberg west returns. It is 26 minutes past the hour that means we are on the markets. Lets look at where stocks are trading, down for the second day in a row, off the lows of the session, but a lot of risk aversion being expressed in stocks and investors have recently been calling for a pullback. Of thet stocks, some biggest losers in the session are pandora, twitter and yelp all falling from 57 on the sector has been hard hit earlier this year. It retraced some losses before the selling began again this week. The best performers today, Piper Jaffray upgraded the retailer from neutral to overweight and the firm cited promising sales in europe behind that upgrade. We will have more on the markets later. You are watching bloomberg west. Box just raise an additional 150 million of funding to buy time and flexibility for its ipo. The company has delayed plans to go public as the bumpy stock market is made conditions not so favorable. The decision was made by the ceo aron leavy but was it the right decision in what could be a crisis for this company . Joining us is the yahoo for our maynard webb office hours segment. I know you are close with aaron and you are an advisor to him. Was this the right decision . Thats a question for aaron. I dont know all the facts about it. Fannin he willn figure out the right thing to do. Outside, was that a mistake to file when they filed . Timing is always interesting. I would not say its a mistake. If you raise money in the spring of 2008 and it looked brilliant and if you are waiting to get your business a little further along and you did not raise money, you look like an idiot. The market timing is not something you ever tried to get her they right. You try to build a business for the long haul and thats what he is trying to do. When boxer of build there is talk about how much they are spending on marketing and if thats sustainable, is there a Bigger Picture problem that he needs to be thinking about . Im sure hes thinking about how to grow a Great Company. What does he need to do to get the talent and the products into customers hands in a way they love it . That will solve all else. When it comes to a time of crisis, what should a ceo do . Advice several pieces of having lived through a few of them myself. The first thing his problems dont get better with age. Its important to know that you have a problem and assess how big it is. Put your best resources act quickly . Act quickly and be suspected that what you know and do not know. Often times, people get in trouble as they think it will go aay in a day and it becomes storm and it becomes taking a lot of energy. I have being a fan of picking up something as a drop of blood or a time of love flowing out of an artery. If its a ton of blood, you have to put your best people on a 247 and build a whole work stream around what to communicate. I would be careful to communicate only what i know. The world wants to know more than you know. Often, people get in trouble getting ahead of that medication. How important is communication . When a company goes through hard times, maybe you dont hear anything from the top. The first interesting for people is its not fun to talk about problems. The first instinct may be to hide and hope it goes away. Or fix it without saying anything. To tellalways better the truth and run into the fire and the honest about where you are and when you will fix things. When i was at ebay and we had a product or a tech issue, we would tell people when it would get fixed and then we would make sure we lived up to that. Then they were ok. People want a checkpoint at where you are and when will you know. They might want to know everything right now but you dont know it. What about reaching outside the company for advice. . Was talking about the paypal situation. And he i called tim cook had experience dealing with carl icahn and he called some members of the paypal mafia. How often does that happen . It happens a lot. If you are at the top of the company come you can get advice for the people that work for you and advice from your board. Most ceos are heat seekers for the best advice possible. You have to balance that with what you can talk about. Is ahing like carl icahn great example because it was very public it was no secret. We had a situation earlier this onr on one of the boards im and i reached out to meg whitman who gave me on believably great advice which was helpful. Give me an example of a time an example you can share details on when you are in a crisis and you handled it either the right way or the wrong way. I have done both. At ebay that we were rolling out a new feature because we we knew better and it itld change everybody, forced everybody to it whether they wanted to go to it or not. An unbelievable amount of damage. We had to roll it back. Stood to apologize and we firm for two or three days well everybody got more angry and started selling their ebay memorabilia and everything else. I would say thats one we did not do well. Theher one was 9 11 when trade towers went down, people were selling rubble on ebay within 30 minutes after the crash. We decided that was not ok. We turned that around and in four days, built an unbelievable governor raisehe a ton of money for charity. You mentioned apologizing. I wonder when company should apologize and when they should not apologize. Facebook recently had been getting flack for the study they to where they tried manipulate users emotions but either showing them more negative posts or negative or positive posts and facebook has not apologize. Sheryl sandberg apologize for the way it was communicated. However, some of the people behind the study said that was not a good apology. I cannot speak for facebook but i can tell you my mother sits on my shoulder every day. I was always taught that being a southern boy, its good to apologize and move on and admit what you have done if you have done something incorrect. Try to put context on it and get to the next place. Ok, yahoo chairman maynard webb, great to have your address in our office hours segment. Thank you for stopping by. Google is being accused of censorship after following a European Court order. We explained why next on bloomberg west, on bloomberg television, streaming on your phone, your tablet, and bloomberg. Com and now available on apple tv and amazon fire. This is bloomberg west, on bloomberg television, streaming on your phone, your tablet, and bloomberg. Com and now available on apple tv and amazon fire. Google has started removing webpages from search results in europe following a right to be forgotten ruling by the European Court of justice. The ruling allows europeans to ask Search Engines to remove links about them but google has come under fire from organizations like the bbc that say the Search Engines implementation is censoring legitimate journalism. Im joined by the Electronic Frontier foundation founder. This is such a complicated story. You start off thinking it will be so easy in this is clearly what the court of justice ought. Thought. There are facts and pages on googles search index that perhaps you could move because they are inaccurate or outdated and this is what European Data protection law is about. For example but this is public information, the information that is being removed from the index in the original case was published in the newspaper. The newspaper keeps that online but google is not allowed to mention that its out there. Are they supposed to be removing links to these results or the actual results . That google has decided to implement this which j wasin with what the ec implying is if you search for someones name on its own, they remove that link. If you search for me in the third search is that i set fire to a shed when i was seven and i want that gone, that does not happen. If you search my name shed, maybe it will come up. Its a very specific kind of removal. Is this googles interpretation of the ruling or is it the ruling itself . Itself goesg through a lot of this and you can kind of tell they are trying not to be very technically specific. You kind of have to be because you are saying make it though away but dont make it completely go away. You got organizations like the bbc and the guardian saying those are legitimate articles. Then google is putting them back. The other part of it is that many people feel google is kind of interpreting this deliberately to mess it up so that they are removing these things so people will turn against it so the law will change. I dont entirely think thats the case. I think its that google is trying to feel its way around. The original case was about a newspaper article. They are trying to see what would happen. The thing that worries me is its find that the bbc and the guardian can kick up noise but what if an individual website has its content removed . Able to going to be successfully campaigned to put that back in . Google has worked with governments in the past like china to remove content. They have said this page does not contain all the results. Are they could do Something Like that in europe . That was one of the good things that they always did when content was being removed. They had this tradition of putting a message at the bottom saying that some of these things have been removed. Case isy have done this they still have that little message but theyre putting that little message on every search that looks like a name in europe. Unless its famous. If you look for james bond, it does not say that message. If you look for my name, not yours, it actually has a message that says maybe something is gone or maybe it hasnt. I might not have burned down the shed but it puts that on every listing. Whichyou go to google. Com is the u. S. Search engine, it is the same. But google. Uk is censored. That is a concession that these companies have made in the past. A country requires them to do this and they move it but only in that countrys website. Could this have implications for u. S. Citizens . Good eye as a u. S. Citizen say i dont want some of the stuff out there so i should get a removed in europe . That is a good question. Data protection law definitely is interpreted in europe as applying to everyone. I think that would be really interesting to try out. What impact will this have on googles Global Operations . Could this happen in other parts of the world . Whoy problem as someone considers the Civil Liberties implications of this is that this sets a precedent that other countries will try to take advantage of. A lot of the most are connie and censorship Services Like google a lot of the most are connie informationnian Services Like google could use this opportunity as a wedge to try to force more censorship of big centralized sites. There are Companies Like reputation. Com back and help you manage your reputation online. Can you imagine a world in which we all had control over what exactly when online about us or how it was organized and presented . Who is actually going to have that power . The court said is there are exceptions for people who are public figures. I think the rich and affluent people, public or not, will be the people who have the ability to make information and hide information and regular people will not necessarily have that opportunity. We will continue to watch how google interprets and implements this ruling abroad. For now, danny obrien, thank you for joining us. Coming up, remember the yellow pages . Companies like google and yelp that made the telephone pages something the telephone book something of a relic. The yellow pages are still around. Welcome back to bloomberg west. That hasc yellow pages been operating for over 100 years has on through its own digital transformation. It has 70nown as yp, million monthly users of the popular mobile app. Yp staying relevant among intense competition from other Search Engines . Joining me to discuss this is aaron clark. Every time the book ends up in my startup on my doorstep, seriously they still make this . People still use the book. Bookep track of where the is getting used and how its getting used and you would be surprised that lots of places in the country it is very popular and especially thats what theyre used to. Yp, is agital site, complement to and you have been activate actively recruiting local businesses to get online and get listed. Tell me about that process. On the digital side, were about getting businesses online make sure they have a website that works for mobile and the web and make sure theyre listed everywhere they need to be listed and we do it good job of driving them leads. On the consumer side of the business, we have an app and experiences that reach 70 million unique visitors every month. Has 132 million, how do you keep up with the competition . Up . Do you keep many people dismiss the core find experience, having a fast and easy and comprehensive view of the businesses you might be looking for. In addition, we are pushing new features that help People Choose the best is must thats a thing called my book which started out as a bookmarking feature. Now we are revolving that into a publishing platform so you can leverage your social graphic and people around you can find out what the best is this is are in your area. You have some art ships with yelp and google . Absolutely, we compete on the consumer side than on the media side, we are eyeing and selling traffic and inventory. What do you make of the continued that of google to take on both of you. . When i type a restaurant into the search engine, the person that comes up our google results in google reviews. I think its a Great Company but i think local is a deep and specific problem. It and get focus on into the nuances of what the businesses are doing to build how dostuff area you deal with widely varying demographics and a Younger Generation of consumers . The print side, we let the consumers choose how they use that and whether have you thought about not printing it . Theres places where we dont print it. We do a lot of targeting where we deliver the book to make sure we will get maximum usage. Its called smart delivery and we make sure we are sending up t who are most likely to use them. We are proactive on the green side of things where people can opt out so we art about doing the right thing. What about reaching other consumers . Its about mobile. We have been in the app store from day one. We are ranked pretty high on google play. For local and that category. We are pushing harder the mobile front. We think weve got an interesting piece, advantage because we have so many merchant relationships in so many fees on the street would think that helps us from a content respective understanding the community. You also have a lot of yahoo alums . Im one of them. We have a larger Engineering Team than anyone would imagine. We have 600 engineers and alumni and other places. Weve got a lot of tech capability and we run a big data pipeline and are a big open source shop. We do our best to keep up with the big boys in the valley. Good to hear what you are working on. Bytes time for the bwest where we focus on one number that tells a lot. Erlichman joins us from kansas city, washington. City. Nabis this is the store. We are in an industrial spot in seattle. Legal pote first store in the city of seattle. The number today is 100 million. According to the company handling the software to track where this pot is coming from, they have tracked more than 100 million grams of marijuana over the last five years. Its a Technology Angle to a story we have been covering. This is a big deal for the state of washington. You now have legal pot selling across the state. Tracking where that pot is coming from is important because regulation requires that it be instate pot. That youre smoking and buying at these locations. Are you really working today . I cant quite tell. [laughter] this is fascinating. I guess this is kind of play. This is an unusual situation. I think many people have curiosity. These are not just people who are coming to sample some of the companys material but also because there are a lot of theys who are wondering if can generate more tax revenue over the next few years. We will likely see a vote in alaska later this year and is likely you will see big campaigns for california and arizona, maine, massachusetts, nevada over the next few years. This is kind of a big deal to watch for sure. To answer your question, its kind of fun. Seniorerlichman, our west coast correspondent tomorrow you will be in sun valley on the opposite end of the spectrum. I can offer watching this edition of luber bwest. Bloomberg west. From bloomberg World Headquarters in new york, i am mark from 10. This is bottom line. Mark crumpton. This is bottom line. The Senate Banking committee extends the role of regulation on highfrequency trading. And the high look at robotics. To our viewers here in the United States and those of you joining us around the world, welcome. Full coverage of stocks and stories making headlines