Tax. It has not been raised for 20 years. He also called the u. S. One big pothole with repairs needed for roads and bridges nationwide. Photoshop maker adobe has reported firstquarter earnings. Sales were just over a billion dollars, a 3 gain. Profit was up 12 as the Company Makes progress toward a subscription model. They are also buying a stock Photography Company for 800 million in cash. Cbs has extended the contract of les moonves through june of 2019. He is currently 65 years old and has built cbs into the mostwatched tv network. He was paid roughly 67 million last year, among the highest of any ceo. Under the new deal his new salary will remain the same but he will be eligible for bonuses and other equitybased compensation. And, why an iphone 6 on the cheap . Walmart is selling the smartphone for 129 with a contract, a 50 discount off the usual price. The larger iphone is also discounted. The deal is only available in actual Walmart Stores as the company tries to increase holiday sales. Lending club investors have fun glenn t of money to lend plenty of money to lend after todays successful ipo. Shares rose more than 56 after pricing at 15. The Company Raised 870 million in the offering and now has a market cap of 8. 5 billion. Higher than all but the biggest u. S. Banks. Earlier leslie picker caught up with the lending club ceo on the floor of the New York Stock Exchange and asked about relation in the online lending regulation in the online lending industry. Our customers benefit from the Consumer Protection banking regulations. The fair lending act, reporting, truth in lending. All of these regulations apply to us, the same way they would apply to a loan made by a large bank. So does lending club represent the future of banking . For more, i spoke with our ipo reporter leslie picker, editor at large cory johnson, and the founder of the leading site Funding Circle. We asked if the term peertopeer lending is a misnomer with Institutional Investors getting more involved. One of the most exciting developments over the last 18 months has been the institutionalization of the market. You have active markets with a whole mixture of Retail Investors and large institutions. We are really excited about the you have huge names behind this company, everyone from Larry Summers to john mack. There is talk this could take on the traditional banking industry. I wonder how many loans are being taken away from big banks or if this is just adding to the , loans out there because these are loans to banks dont want . Its interesting you mention that. John mack was at a breakfast this morning at the New York Stock Exchange and he did for predict that to be the case. Hes a backer of lending club and has some skin in the game but says this is going to be the new model, this is the type of business that does disrupt the traditional banking model. And that is coming from someone who knows Morgan Stanley quite well. One of the big issues is they are unique. When you look at the business, is this going to be a race . Because the returns look awesome. Is there something unique about that is this for your business that is going to keep imitators at bay . Absolutely. One of the reasons this is so powerful is that this is a marketplace. By aggregating borrowers and lenders, you generate a tremendous Network Effect and have great returns to scale. As you get more experience in the market, your credit algorithm can actually improve. Are they really . You would have to do, i think tens of thousands of loans and see lots of different return environments to find out what your risk really is. In lending clubs financial case they got started before the crisis. We got started in the thick of the financial crisis, so we had many years of experience, and what we see is our loss curves are tightening to what predictions are. Over times, it gets better. You have been talking to investors. How concerned are they about the risk question . Because the loans are lower quality borrowers, right . Ultimately how can you guarantee , there are not going to be more defaults . What if something happens macro economically . What if these fail . Lending club doesnt hold any of the Balance Sheet risk. The ceo told me they have the weather to whether the storms, and the average fico score is 660 that is a question right now, what happens when the Economic Cycle turns and things do not look as amicable for the company as they do now . Even if lending club is not holding the risk down, what about the model in general . Something going on out there, Interest Rates go up9 with up . Like you have to be thoughtful about liquidity in the marketplace. It accounts for changes in underlying Loan Performance as we move through the cycle. As you diversify the Funding Sources in the marketplace, you stable, suchh more that even if there are liquidity them. You can weather liquidity about what . I just mean sources of capital. Capital for the loans, meaning this marketplace got started with retail and over time, yet seen other investors come in. Even banks are buying through marketplaces like us. Which is ironic, because they are not using doing the lending anymore. Banks have stepped away from the role of lending to Small Businesses and individuals like they were before. Arent you taking on lower quality buyers and more risk . We are early in the game. Relatively small relative to the opportunity ahead of us. You are talking about a 240 billion annual opportunity. Is it is as little premature. Once you are up at scale, you have to think about that as you grow. We are not anywhere near that yet. Im fascinated by the fact you have john mack talking about this. The guy who ran Credit Suisse and Morgan Stanley. Yet you have this monumental change in the American Banking system, where they are not, individuals are not getting loans from banks that they have gone for most of the last 100 years. Did he acknowledge banks created this opportunity for this new businesses, and banks are maybe still in a position to get back into the business they are historically chartered to be in . Absolutely. He says the traditional banking model has left this opportunity for Companies Like lending club to come in and provide an area for people to get credit who could not get them from traditional banks. There has been some talk that potentially traditional banks would acquire one of these guys. Obviously not lending club now that it is an 8. 3 billion company, but others where they could get into the alternative lending space. That is something to keep an eye out for in 2015. Its interesting to see how far this model will go in truly disrupting a banking model we have seen for centuries now. Is Funding Circle for sale . Not today. But what do you think about the idea of a big bank buying one of these companies . Is possible. These businesses can stand on their own two legs and have models that are sustainable over time. We are not planning to sell anytime soon. Im emily chang. This is bloomberg west. Its a big day at the north American International auto show. Forward ford Just Announced they will deliver 12 new giggles, including a new f150 pickup truck. Ford is investing in innovation thanks to a partnership with techstars, the incubator in detroit. For more, i want to turn to matt miller who is at the Ford Research and Engineering Center in dearborn, michigan. Dearborn, michigan, but it feels like Silicon Valley today. Im here with the global head of Product Development and you guys are doing a lot more on the west coast. You are really expanding your presence out there. We are expanding in palo alto. There is so much going on. A lot of opportunities for connectivity and autonomous vehicles. Making a lot of connections. And you are trying to bring it here as well. Bill ford was talking about this collaboration with techstars to bring Mobility Solutions and ventures here to detroit. An Incubation Center here in detroit for technologies that will interface with the automotive industry. Theres a lot of innovation happening here in detroit over the 100 year time here with the automotive industry. We are seeing synergies with the Tech Companies and ourselves, investing in this Incubation Center to develop 10 projects a year that we think would be viable. Bloomberg west is our technology vehicle. Applyy at home, you can until the end of march. We will start 10 projects in june and we will be mentoring with people from all parts of the company. Were looking at the sync system, the new version. I didnt realize, you were equipping cars with sync before the iphone came out. Thats correct. We introduced it in 2007. The whole aspect of mobility and connectivity has changed so much since then but we were out before the first iphone was revealed. The way it changed our business is incredible. Sync is now the most widespread Automotive Infotainment system out there. 10 Million Units on the road. This is the latest version, which is a lot more intuitive , a lot faster response, better Voice Recognition and more applications. It acts more like your smartphone or tablet. More of an evolution than a revolution as far as the in car system is concerned . We think it is a significant change in the way its bringing the technology that you are used to with your tablet or smartphone and bringing it into the vehicle. Having an intuitive interface is crucial in the automotive environment. You dont have time to figure out commands. The more we can do to make the system intuitive and easytouse in an appropriate way in a vehicle environment, is really important to the customer. This is one part of the announcement youre making, but for me the focus is the Performance Group. You are putting together all of, the vehicles these are all going to come under one roof . The Performance Group will not just put those together, but our european offerings and our racing group. The racing team and performance vehicles, parts and accessories, all of that globally were putting into this Performance Group, Ford Performance. We are talking to that enthusiast customer. There are synergies with that. Because the group is going global, we announced the focus rs, a top performance focus vehicle. For the first time its going to , be a global offering available in the u. S. And europe. Typically a european offering. Isnt it the biggest sold nameplate vehicle in the world . Thats right. I am wondering what you think about people saying this is the second golden age for cars . Because the cars you are putting out now are so performancefocused. Mustang of the jt3 50 that you unveiled in l. A. At the auto show. Just a base mustang is really a highperformance vehicle. Is this the new 60s . I like to think so. There are so many great vehicles and they are affordable as well. A lot of our team thinks these are the most fun vehicles we have in the lineup. The base mustang gt, 430 horsepower. When i got my first mustang in 1988, v8 was 288 horsepower. We now have more horsepower in the focus then in that mustang. It is a great age if you are a performance fan, particularly if you are a Ford Performance fan. What else can we expect . I heard you say 12 new vehicles are coming out through 2020. Im hoping a new raptor will be one of them. I just got a chance to drive the new ecoboost in the new f1 50. It is so quick. So light. You take 700 pounds out of the vehicle and have that ecoboost engine and 350 horsepower, its going to be a great experience. The raptor is an important name for us. The raptor we had last year we are very proud of. Nothing to announce on raptor yet. Come on, man. I bought one last year and alan mulally gave me the keys himself. We want you to enjoy that. We will talk about another one for your lineup. Thank you for joining us. Back to you. Matt miller there. Coming up despite ubers growing , regulatory challenges, how confident are investors that uber can be a success . Im emily chang and this is bloomberg west. Despite being thousands of miles from new york, berkeley, california has been a hotbed of protests over the death of eric garner. Now venture capitalist peter thiel is the latest target. While speaking at a for him protesters marched in saying , black lives matter. He tried thiel was forceout state by protesters who shouted back. You can hear more from th next week. Iel he is my next guest on studio 1. 0. B bill gurley is todays guest on studio 1. 0. I spoke to him on october 20 and asked him about ubers potential, and which tech ceo ubers ceo remind some of the most. If i looked along a vector, he is most like jeff bezos. The business is most like amazon. It is not a facebook, its an operational intensive business. I find him to be most like jeff. The thing that is least understood about travis is these he is an insanely good recruiter. Jeff was always going into walmart and getting their cio, just getting the best people he possibly can and that is what travis has done. Gurley has not commented since allegations of uber targeting journalists surfaced. We did speak about the competition in Silicon Valley between google, facebook, apple and amazon. Who does he think is the most dominant of the four horsemen . Between google, amazon, apple and facebook, these are companies are referred to as the four horsemen. Who has the most to worry about . I would say amazons position with prime is pretty remarkable. I would put them in the safe camp. Google, with the profitability of the search is nice and this insane footprint of android, i would put them in the safe camp. On facebook, i think they are working through an interesting challenge. Theyve lost the trust of their user. If you ask someone as to do you have certainty of who is seeing your facebook content, i think 90 of people say no. I think that made room for snapchat which we are an , investor in. That lack of trust limits what you can do next. And apple . Apples only problem is android and google and googles willingness to be aggressive. Apple should have paid anything for waze, flat out. If you are going to pay 3 billion for headphone company, m llion for a mavs maps company is a nobrainer. They should have also find a way to buy nest. Should apple buy twitter . I dont know if they would know what to do with it. Thats why i would probably say no. Twitter is one of your companies. Yes. And i think twitter has one of the most amazing moats. They have the most important people in almost any field in the world, remarkably committed to their own persona within this system. Peter thiel recently called twitter a horribly mismanaged company, probably a lot of pot smoking going on over there. How do you respond to that9 he . He is on a book tour, correct . I would leave it at that. Once you make a Statement Like that about a Management Team thats created a 30 billion company, taken it public, i think you lose all credibility yourself. More of my sit down with bill gurley tonight at 8 30 eastern and pacific. He made his name as a top tech analysts on wall street, leading coverage of the end of the ipo. Then, bill gurley made his way to the Promised Land of Silicon Valley. Joining benchmark capital in 1999. Almost right away, the bubble burst. He wrote the market down and then up and then down, and then up again, along the way making early bets on some of the hottest names. Twitter. Uber. Snapchat. Instagram