Currency as they do for virtual currency. He also said that the banks better capitalized and more stable than they were. Google and apple are urging the legislation to curb nsa surveillance. The clock is ticking to get this done before republicans take control in january. Many republicans are staunch supporters of the surveillance program. The ceo says the Solar Power Company has seen a growth rate for each of the last eight years. Thepoke about disrupt tang business. The utilities do not like it that much. They would prefer the captain to not have any other choice. If you can maintain a monopoly, you can maintain your pricing. Te the committee the committee is chaired by his cousin, elon musk. Toms as stake in aol a comes as yahoo announces possible combo with aol. The fund bought 1. 9 2 million shares of aol during the third quarter. Now to our lead. Alibaba has raised a record 25 billion in its September Ipo and just sold 9. 3 billion worth of goods ons in a single day, thethey are about to top u. S. Bond market for the first time. Alibaba is hoping to raise as much as 8 billion and will use refinance their credit lines. Why cap the bond markets now . Is it simply to take advantage . F low Interest RatesBloomberg Ipo reporter leslie joins us now. Good be in a better position after the biggest ipo in history. They are a company of big numbers. Many billions of dollars in transactions. Now is a great time to refinance their debt. They did that to buy back their state from yahoo in 2012. They are refinancing the debt because it is a good time for them to do that. However you also have to wonder what theyre going to do with all this cash. They have this discussion of what theyre doing in hollywood and on the payments front. His there any the question is if there is any indication of things coming. Reid hoffman suggests that alibaba might be interested in ebay and not paypal. What do you think of the potential for big deals like that . For jack ma, ebay would be the crest of an actual opposition. Acquisition. I think ebay would be an interesting play in the u. S. It does have that same sort of marketplace model that ali baba does. What they would do for alibaba is a big question, is the synergy there . How do you integrate those two business models. Is this the best way for ali baba to get into the market. That is the question. The ecommerce market in china is potentially reaching its peak. How do they grow . What do you think about all of the they have all of the Strategic Investments from hollywood to pharmaceuticals. Which of these is likely to become a big business . What theyre trying to do right now is to diversify. The diversification, by doing that, that will then lead to further growth. Ecommerce market in china, i think it will slow, so to smart for them to look for growth in other areas. Alibabas bonds are rated a plus, and twitter is now rated bb. This comes two days after twitter promised a suite of new features. What does the company need to do to win back Investor Confidence . Joining me now is the former head of let format twitter platform at twitter. And from chicago, s ps director andy loo hoo kior third the latest report. Andy, andy loo, who coauthored the latest report. Andy, why exactly are these unsolicited . Twitter has a realtime social Networking Service at scale. Great brand recognition, and good ebita margin. But the company is not turning positive in cash flow. It is relying on cash on its Balance Sheet to fund the operation. Twitter shares dropped on the back end of this report. What is your reaction to the end of this report . If our to put myself on their position, this is not the important conversation, this is noise. I would want to continue to grow my audience. It is a dramatically monetized audience, and there are still a ton of opportunities there. This is just noise, have you respond . Just noise, andy, how do you respond to that . I guess i cant. The bottom line is the way you , should think about a Credit Rating is a reflection of the underlying business trend. Twitter is doing the right thing. They are focusing on the business. If they have the mentor they have the metrics they want, if they want the cash flow numbers they are looking for, the rating will move with it. We were following the twitter shareholder meeting, a lot of chronic denouncements product announcements. A lot of optimism from twitter executives. How optimistic are you, and what stood out to you . I think theyre working to get the message out there, and it was pivotal. It was great to hear them acknowledge their most important goals. There are tons of people around the world who have heard about this. It is a product that is valuable to one billion plus users. What is the single most of for thing twitter needs to do to win over wall street . At this point, from a credit of, credit perspective, cash flow generation. The need to generate more than 100 million by 2060, and we could see a slightly higher rating. Who is the product visionary at twitter . I think it is going to be a group. We talked to kevin, christian, and todd yesterday. We heard a great group of people. They are impressed by the articulation of focus of what they are doing. Kevin is the leader, but i think he has the team to execute the vision. I walked away very impressed about what they are doing. Thank you so much to both of you for joining us. Companies disrupting the real estate and travel industry. Zillow and expedia cofounder rich barton joins us from bloombergs year ahead conference next. We turn now to the year ahead conference in washington dc where we are bringing you insight on the industries, companies, and trends that will matter most in 2015. Market makers Stephanie Ruhle is there with a very special guest. Take it away. I am here now with the man who knows disruption. I dont like that word. We are not even going to use it here. What were going to talk about is your principles. Whether were talking glass door, zillow, you have this notion of power to the people. What do you mean . It is a fundamental human tendency to want the information required to make decisions, to want power, to tear down the wall that separates you from the information. Like expedia, zillow, glassdoor, i see the ability to take smart phones and computers and plug them into world information and empower people with that as a really fantastic as this opportunity. I have created multiple businesses to do that. You do not think the employee or the user has the power to do that . This is all about taking control of your own governance and that kind of revolution is happening because of technology. The biggest story in the Business Media is about bill gross. We know he was paid 290 million in 2013, when they did not even have great performance. In the glassdoor world, how would things have turned out differently 10 years from now . We have 23 Million People a month who come to glassdoor to see how much money people make at different companies, what people think of the ceos performance. We have a ceo approval rating. Interview questions, one of his really what it is like to work there. I do believe that transparency in salary information would bring better behavior. Having democratized salary information might actually mean that women in the same job as a themight actually get paid same. You have changed Consumer Behavior in some industries. Much impact do you think apple pay would have. . The way they do it right when they enter is pretty interesting to me. I would not bet against apple pay. I get notified whenever an expenditure happens on my credit card. One issue is i dont think they are really disrupting the way credit card payments actually work or the way banks get their fees. They are riding along under this very profitable layer of 3 of all of our transactions and taking money from that. I would rather see a payment where it is nearly instant. That is what we should be evolving. Is there a risk to the consumer that we could see more dead than we currently have . If it is in a credit card somewhere and what you are not actually opening your wallet saying my uber just cost 38, is more a risk we could spend than we realize . That is always a risk. However, the fact that we are getting notifications of what we and we have coulding tools, actually mean we dont do that. I would like to see credit card fees end up back in consumers pockets in the forms of goods and services. For you, if there was you could create next that we havent seen, what would you wanted to be . I just invested in an Interesting Company in new york city. Artife and i like to buy and have for a long time. Cheappensive, but not the stuff you see in a poster store, real artists. We have been frustrated that there is not a store for us to. O to to buy art the connects galleries and marketplace. I realize that his niche is niche, but i think this will make art much more accessible and a much bigger business, which i think is good for the world. The only reason i am not asking you more is because i would need to ask you what you consider middlemarket art and the price would probably break our hearts. Wouldnt you agree . Thank you for sparing us. It is friday, and nobody wants to cry on friday. Next, what do netflix, amazon, and cocacola have in common . They all rely on technology. Will talk about how the future is changing with ip for some of the World Biggest companies, next. Welcome back to bloomberg west. From nasa to netflix, Amazon Web Services provides Cloud Storage to thousands of companies. Cory johnson spoke with the amazon cto at the Amazon Web Services conference in las vegas. We power most small or medium businesses in the world these days. You see large and a prices and Developers Enterprises and developers for startups all here. Im surprised by the nontech companies that are here. Cocacola and procter gamble. Agility these days is what its all about. Digital technology will make this more competitive. These companies you actually know more than a lot of our viewers understand. Someone stop me in the hallway you have to talk about lambda. How do you describe it in laymans terms . Is the ability for developers to not have to think about infrastructure. They can take a piece of code ine piece of data arrives the development its revolutionary. They dont have to think about where their code sits or what service they have to use. Like and ifthen platform. If this happens, that outcome happens. Everything gets recalculated. Things can happen in the business application as well. If you upload them in a document or the internet of things device suddenly, you get one of those lambda functions. You guys have added over 200 features this year. Over 400. Amazing. How do you your kingmakers in that way. You could wipe out someone elses business. How do you communicate that with your partners . To us, its really important to Work Together with our customers. We are really customer focused. We are driven by the feedback of our customers. They also have great influence on how our platform evolves. We are extending Offering Services so they can extend it as well. We work very closely together with our partners to make sure we develop software they can use themselves. We have entered a place with there are new types of services. Because the breadth of services we have allow our developers to really focus on building new stuff instead of redoing all the other stuff. I. T. Does not matter. We all have access to the same services. Now, we all get to focus on building better products. I think about that with Companies Like google or netflix. They dont have to worry about that stuff because its happening netflix runs 100 on aws. They dont want to worry about infrastructure. They want to build the best streaming service. They make use of our platform to reach a global audience. More on aws. The man responsible for glowing growing it into the huge business it is. Also, we hear from Malcolm Gladwell on football, next. You are watching bloomberg west. Im emily chang. Major changes at message board and sight read it as the company tries to become a more viable business. Message board site reddit. The ceo has redesigned. He wrote that he is completely worn out. The board says he left over a disagreement over where to locate a new office. An interim ceo has been named. Harassment suit is scheduled to go to trial next year. The reddit cofounder is returning to the company fulltime as an executive chairman. And well head of marketing, and will head up marketing, strategy and communication. Hes the author of five New York Times bestsellers, the man behind the tipping point. One of the most influential writers of the last decade. Writing at the intersection of psychology, sociology and science. Most recently, he has taken on a personal war against the nfl. The nations most popular sports league. I sat down with gladwell for the latest edition of ceo 1. 0. Studio 1. 0. One of the subjects he wrote more recently about was the nfl. You said it would become more ghetto because of concussions. Only poor athletes willing to pay the game. The sport could become obsolete. The nfl has been settling with former players. Are they doing enough with current players . No. I think the sport is a moral abomination. The nfl just released that report, the actuaries report, theyre try to estimate what percentage of retired players will be in need of some kind of assistance, medical assistance from the league. The came up with a third. When you watch football on sunday, they are incurring injury which will significantly impact their life. Can you point to another industry in america which in the course of doing business maims a third of its employees . This is untenable. We are talking about brain injuries causing horrible protracted premature death. The idea that we are paying people to engage in a sport for our own entertainment that causes irreparable damage to themselves is appalling. What about how the nfl has handled the Domestic Violence issues . This is a sport that is living in the past. That has no connection to the realities of the game right now. No real connection to american society. The whole ray rice issue was they are completely disconnected from the consequences of this sport they are engaged in. They are socializing young men into a culture of violence. Is it all surprising that you see the kinds of corollary social damage surrounding players . Not surprising at all. They are off on this 19th century trajectory. Your friend bill simmons called the commissioner of the nfl a liar with respect to the ray rice case. He ended up getting suspended for three weeks. Was that the right decision . No. Totally wrong decision. It is a sports columnist cant call cant exercise free speech its not like it came out of nowhere. One reasonable conclusion from the whole ray rice saga was that the commissioner of the nfl knew about the videotape and lied about it. Im not saying thats what he did. I dont know. Its a reasonable conclusion. In the course of expressing their opinions, sports columnists are allowed to draw conclusions. Apparently not. Apparently you get suspended for that. I thought that was no management. Do you think the ball goes away football goes way . I dont see how it doesnt. Atwill start to trouble up the high school and College Level and then the program will eventually wither on the vine. Boxing was one of the biggest sports in this country in the 1920s and 1930s. Where is it now . Sports dont exist forever if they cease to have some kind of compelling narrative. Footballs narrative is falling apart. Be sure to tune in for my full interview with Malcolm Gladwell on studio 1. 0 tonight at 5 00. As a startups emerge, it would have never been possible without cloud computing. Amazon web services continues to make new features to meet their needs. What are some of these features and how is aws attracting even more customers . Cory johnson spoke with the vice president. Today, all these companies have had these infrastructure startups where theyve had to have their own people run servers. Your best resources in some companies are software engineers. They have to manage the infrastructure, which matters, but it hardly ever differentiates your company. Those engineers can instead work on your business. That is a huge advantage. The infrastructure people will move up the track and add value. This may be one of the most Important Technology companies in the world. This is where they can make or break someone elses business and empower all sorts of other things. This is the third year. We did not know what to expect our first year. Our customers have really loved it and its gotten bigger every year. First year, we did it for 6000 people. This year, we have 13,500 people. Apart from launching a number of services here, the primary purpose of this conference is an education and learning conference. Our goal is that people are able to go to classes here and learn about what people are doing in the cloud and take it back to their company and change their business. You must encounter so many bizarre uses of aws. Were things you had not thought of. Think of one. Unimaginable stuff. There are so many incredible uses. Novartis research wanted to run huge analysis on 10 million cancer compounds to see if they could identify markers that would allow them to solve one of the problems they are trying to solve. Typically, to run that type of analysis, it would cost 50 million. It would take them 89 months to do it because its a huge amount of resources. Using aws, they did it in just eight hours for 4200. Well. Wow. So many interesting and inspiring uses. The things people are doing on top of the platform. Cory johnson in las vegas. Would you drink water from your toilet . One of californias biggest counties is using science to take water from toilet to tap. Willis all the drug problem will it solve the drought problem . That is next. Im emily chang and this is bloomberg west. With 2014 winding down, business week traveled all over the world to give our audience and exclusive look at the technologies and innovations set to shape and disrupt our lives in 2015. Using science to fix californias drought problem, a solution might be closer than you think. In Orange County, the groundwater replenishment system is transforming the way water from your home becomes drinkable water in just minutes. This is the year ahead. Southern california is in trouble. There is not nearly enough water to go around. Even though the region sits right by the pacific ocean, turning that ocean water into something usable costs way too much. Meanwhile, the entire area sends 1. 3 billion gallons of wastewater out to see every day. One place has a solution for both of those problems. This is a gigantic scientific instrument. It manufactures Drinking Water on a massive scale. Six miles from the shores of the pacific is orange counties groundwater replenishment system. It takes water flushed down the toilet, cleans it, distills it and returns it to the local water supply. The project produces 70 million gallons of Crystal Clear fresh drinking that we serve to 2. 4 Million People in Orange County. Did not decidey to recycle wastewater because it seems like a neat idea. They did it because they have to. It was formed 80 years ago. Today, there are 3 million something has to give. More conservation and less usage or that in combination with what we are try to do. Find another source of water. Wastewater goes through a battery of filters and purifiers to remove anything that is not hydrogen or oxygen. The first step is called microfiltration. They are there to pull or suck the water out of the individual basis we see and strain it through a hole that is small enough that we can remove the larger particles. Those holes are about two microns in size or 1000 times smaller than the diameter of a human hair. The water is filtered again using reverse osmosis. We take the water and force it through a solid plastic membrane att the the molecular level, such that bacteria and viruses are left behind. The only thing that can penetrate that membrane are the oxygen and hydrogen molecules. Just to be extra safe, there is a third stage. We put it through ultraviolet light. An additional layer of protection. It will destroy any organic molecule that may have escaped. Whatever is left, this will catch it. By early 2015, this plant will deliver an additional 30 million gallons of clear fresh Drinking Water per day. Critics of water recycling have called the process toilet to tap. To reassure the public, Orange County has an onsite lab that can monitor water quality. All of that is fine, but what matters most is that Orange Countys residents feel comfortable drinking this water. There is one way to find out. Bottoms up. It tastes like water. All water we drink today is always recycled. There is no new water. Its the same water that has been here forever. Talk to people about water recycling, and its easy to walk away with two seemingly incompatible reactions. Optimism and frustration. The optimism comes from seeing the science and technology work. The frustration comes from seeing the lack of political will in some communities to address the water needs with sensible Solutions Like this one. Sure Orange Countys project , costs a lot of money, but its less expensive than the alternatives. Its certainly less expensive than doing nothing at all. In that case, eventually, all that water would be gone. Bloomberg businessweeks sam grobart. Be sure to tune in for the year ahead special on tuesday, november 18. 9 p. M. Eastern and pacific. We will be looking at 10 innovations that change everything you know about technology, food, and medicine. Welcome back to bloomberg west. Dropbox recently announced a partnership with microsoft making it easier to edit Office Documents. Users can edit office files with the tap of a button. The feature will be available on the web next year. I spoke with the head of product at the techonomy conference. What the Partnership Means for dropbox users. Dropbox has 30 million users 300 million users today. A lot of them use dropbox to get work done. 35 Million Office documents is a lot of office document. Creating awesome experience around office and dropbox working together. They can take the Office Documents and edit them on mobile devices and on the web. And of course today they can already edit them on the desk top. How does it help dropboxs business . The more productive people are, the more engaged they are with the service, the more utility they get out of dropbox. The more value they get. Another big move by microsoft is making office free on mobile. How big of a surprise is that to you . I think its incredibly valuable to people who want to be productive. Who want to be knowledge workers. Getting access to the best product there is is exciting. 1. 2 billion people use Office Around the world. Its an incredible move up for them. One of the interesting things i read about dropbox is you are part of the shout oh shadow ip phenomenon. Shadow i. T. Phenomenon. Ple like me use brought use dropbox, but its not officially used by my employer. How do you come out of the shadows and how much of that is part of your strategy . We have incredible success with our business product. 200 growth in the u. S. Sector alone. Last year, Companies Like hearst and news corp. National geographic came on board. We see this as an immense opportunity. Theres Something Like 40 million unique businesses using dropbox today. Our goal is to get them onto this amazing product we have built. We get them all security and control they need to manage their business on dropbox. What is more challenging, the consumer side or business side . All of them are incredible opportunities. We have tons of people storing photos and documents. Its all really exciting for us. What is the most challenging . Where are you finding the most resistance and try to break through . We see poll from all the pull from all of these directions. People want the solutions because universal access to data, being able to get to her stuff on mobile thats your stuff on mobile. Our biggest challenge is delivering more experiences to people. Whether it is consumer or business. Both of those are incredible. Dropbox has been thought of as consumer first. Your competitor as business first. What do you want us to think . Think of dropbox is a place for your most important stuff. Your important stuff is your personal life, your documents and your work stuff. I want to go to work and share an excels spreadsheet. Or a marketing deck with the sales team. Putting it in dropbox and getting it to everybody in the field its really easy. , its about simplifying your life whether you are using it at home or work. Both are important. The consumer side for us has been great because we have 30 Million People in the world who are dropbox users. That allows us to get to wherever they are. Copies like google are Companies Like google are dropping the price of storage to free. Its about the enduser experience. Having the best in class sink which is what we have, and building great experiences around document collaboration. Which is what we are doing. Its about being the home for peoples most important personal information. Its really about the endusers parents, the highquality system share some the trust people have that will we will always have the data for them and keep it to care. Its about all these experiences. What kind of additional features are you going to add . What businesses and employees wind want is the ability to analyze and organize and share with teams and connect teams. For the business, we have launched a number of really important controls around document access and document sharing. We are also really thinking about the collaborative spirit experiences around these documents. Oflaboration is a big part what were doing. All of these things are really more productivity and collaboration. A lot of our efforts are to create this place for all your memories. Im a huge carousel user. Everybody is saying this partnership is a huge win for dropbox. Where are you out with an ipo . Our core focus is expansion. We are going global. We are opening up in sydney and tokyo and london. We are expanding the business. Investing in products and is investing in better experiences. Growing the organization. The dropbox head of product. Ibms ceo is having a bit of trouble leading the turnaround at the software giant, but she has been brought into one of the most exclusive clubs in the world. She was extended an invitation to become a member at Augusta National golf club. She will be just the third woman to become a member. Its home to the masters and that famous green jacket. That does it for this edition of bloomberg west. We will see you next week