Investigation for processing transactions for iranians and sunnis, violating sanctions. The police are using showcasing stew find a person who opened fire on two officers in ferguson, missouri, last night. One of them was shot in the face. They were shot outside the police station. Both have been released from the hospital. We know those two officers took a very hard hit. Any time you take a bullet to the face and have a bullet lodged in your head one going through the middle of your right back by gods grace, we did not lose two officers last night. Cory this is one day after Thomas Jackson resigned as police chief after a scathing Justice Department report showing racial bias. Charter communications in communications with bright house networks. They say both sides have agreed to the outline of a potential all stock deal. They are not expected to announce a deal until after regulators rule on comcast and time warner cable. The fcc has finally made an approval to show us all the internet rules they approved. 400 pages now available on the fcc website. The documents include the dissent of two w oh republican commissioners two republican commissioners. The phone Companies Say the relations are unfair and could lead to write regulations. Cyber security is one of the most Critical Issues facing businesses today. It seems today, congresss joint to do something about it finally moving on Cyber Security legislation. The Senate Intelligence committee will vote on sharing Cyber Security. This bill has proven to be very divisive. Peter cook is on the scene in capitol hill. Peter we have the Senate IntelligenceCommittee Meeting behind closed doors. The chairman of that panel dianne feinstein, they have joined forces to put this bill in front of the committee. We havent seen the final language. We saw a draft a few weeks ago. It would provide a Safe Harbor Provision for companies that share information with the government. There are other components, including efforts to address concerns about privacy, personal information of customers of those businesses. That information would have to be removed before it is shared with the government. There are questions over whether that will go far enough. That is the situation right now. We expect the committee to vote this afternoon. We will get our first test of whether or not this legislation truly has bipartisan support and whether this becomes the main vehicle for Cyber Security legislation in this congress whether or not this is something the white house could accept. Cory privacy advocates have weighed in. What have they said . Peter they dont like the draft. They are worried about the nsas access to this information in almost real time. They are worried about the nsas use of this, whether or not nsa surveillance legislation should have been moved first. They are also worried about that personal information, worried especially that there wont be enough restrictions, enough sticks, if you will, on these companies not to show that information with the government in realtime, that it is really airtight. Content concerns about how Law Enforcement is able to use this information going forward. Cory what is the white houses role . Peter the white house has put forward its own proposal. A little bit more attention to privacy issues. So far, they have no weighed in specifically on this bill. If there is a dixon agreement if the whiteout if there is a disagreement, if the white house doesnt like this bill, there could be another battle in this congress. Cory thank you very much. For more on this you can watch richard burr on street smart at new pacific 3 00 beckys. Alibaba plans to invest 200 million in snapchat. The state would take alibabas total equity to 6. 3 billion. Its not just snapchat, tango, and messaging services and startups like lyft. Why is ali baba spending all this money specially on especially on yours companies . David, this is fascinating to me. What does this mean . What does alibaba want out of snapchat . David they want higher returns on their capital. They are only getting 1. 3 or so from snapchat. It is not a significant stake in terms of strategy or ownership or control of snapchat or something that would lead to an acquisition per se. Alibaba raised more money than it needed in its 22 billion ipo not long ago. It is a very profitable company. Like so many investors around the world, it is try to park its cash that it is cash where it is lucrative while Interest Rates are very low. This investment is very different. This is much more significant in terms of alibabas longterm future. Cory heres what i cant figure out. Does alibaba want to play in u. S. Tech . Or does it give them a way does it give snapchat a way to get into china with ali babas blessing and maybe the blessing of the government . David those are two x and questions. Certainly two excellent questions. Certainly, it wants to be in the worlds secondlargest internet market. Line and is growing like crazy, especially in asia. All of these communicationsoriented companies, each that is somewhat different though, is competing with one another. If snapchat is super aggressive in its growth ambition, they have to be global. So they have to get in china. Cory im so interested in the chinese interest. We have a ton of viewers in hong kong and china and throughout asia. I feel like they want to know what is going on in silicon valley, not global tech. I wonder if this investment is a peak, a snapshot perhaps, what is going on for alibaba. David there is another piece of it from their strategic challenges. Alibaba is primarily a commerce company. It has become almost a conglomerate. It is doing so many things are but one thing it is not strong and is an indications. Which is why its investment in weibo is so c important. Very interesting some of the things they are doing at snapchat in terms of using media and turning consumer content into media for the consumers. Cory there are also parallels or it dovetails with the collapse of messaging, sms messaging, which has been a huge contributor to the growth of Telecom Companies all over the world. We see it. Im back and being replaced by snapchat, by all these services. David that was a big topic in barcelona. All those carriers view themselves as being attacked by the socalled over the top layers, like snapchat or Facebook Whatsapp facebook messenger, which is taking away big part of their business, which is text messaging, sms, and only requiring them to provide the bandwidth. This is an ongoing global battle between those two sectors of the industry. Nobody really knows how it will come out. Frankly, they are both quite profitable sectors of business so i am not setting any tears on either side. Cory just a little bit of tears for verizon and at t . [laughter] david, always good to see you. Bloomberg west will be right back. Cory i am cory johnson. This is bloomberg west. [indiscernible] they are cheaper and easier to trade. Toyota is recalling 2500 rav4 ev models made with tesla drivetrains. The glitch could cause the car to shift into neutral while driving and lose power. Toyota and tesla ended their partnership last year. Lyft has gotten a huge funding round, 530 million raised from investors, including rakuten in japan for. 11. 9 of the company. The money will unit a boost as it tries to take on its larger rival uber. In health care genetic testing is moving the on sewing test kits to consumers and data to go in to pharmaceutical companies. Today, they started investing in drugs themselves. Liars 23 why is 23andme getting into pharmaceuticals . This is fascinating to me. This is a very big change for them. In some ways, you can argue it is the Natural Evolution of the data. Now they are saying they want to turn this research into drugs. But they are moving fast. They just got their first fda approval for a single test. And now we are going to sell drugs. Cory her comments to you are hilarious. Carolyn yeah, she was joking. We dont want to be born here. Cory what advantages does 23andme have in developing drugs . Caroline it has genetic data from 650,000 customers that have consented to let them use the data for research. So they can look at the data and say are there genetic components that are leading to these diseases that these patients have and use thats a start finding drugs. Cory and they can discover new things that have not been seen before because they have that data. Caroline they have an infinite question box. They get this information about customers that goes be on just their dna and they are hoping to draw ties. Cory it has always been a big data play but it will be increasing. I wonder if this changes their requirements, what they need in the backend, a whole different level of Computing Power to understand what this is all now if they are going to go in that direction. Caroline this is so new and to happen so fast. Richard scheller announced his retirement in december. Instantly went on board with 23andme. Even talking to them, they do not know which diseases they will go after. How far will they take this up before they start looking for partners because running the Clinical Trials are beyond their scope. They dont know yet. Cory have you taken the test . Caroline i have not appeared they stop to being able to sell it for help analysis. Cory stick around. We are going to talk about this some more. We are going to dig a little bit deeper into what this means and how the world might change. Cory 23andme is transforming itself. Lets talk about what this means. Jay, you invest in tech. You invest in pharma. This is an interesting development. Jay it is certainly big news, a surprise to us. Cory why is a big news . Jay you dont think of 23andme as a company that would go into drug discovery. Cory is this a direction we will see of companies that are doing rock tech stuff with electrons and big data and exploiting that . Or is this really a specialty that it will be able to exploit . Jay there are lots of ways to solve this problem. There are nonprofit entities that have big genetic data they can use. A lot of great discoveries in terms of the mechanism that comes out of academic and nonacademic institutions. Cory theres this a fairly unique approach, to start with massive piles of data and try to find a drug within it . Caroline yeah, it is unique. Those that have taken the approach of working with Pharma Companies already have been selling chunks of genetic data to pfizer and companies to partner. Now they are doing it on their own. Cory do you think selling data to pfizer will hurt the cousin now it will be a competitor and not just a partner . Jay i dont think so. There are so many paths to success. It is unlikely whoever there customer would identify the same target and be competitive. Cory what is the hardest part for them starting this new venture . Jay i think it will be raising the money to support drug discovery. Its experience a important it is extremely important. This industry is unique in the world in that it takes between 10 and 12 years to target, to actually launch a product. It probably costs on the order of a billion dollars or more per product. 90 to 95 of the time, you fail along the way. You need capital to really drive the discovery forward. Its a challenge for anybody. We are in a Good Environment to raise money. They probably will raise the money but it will be ethical. Cory do they but it will be difficult. Cory do they think they will have a that her rate and a better speedtomarket as they know or they might know or they think they will know how the drugs will react before they tested . Caroline yeah, 48 total four a total newcomer on the market. They say they have connections with consumers. They are basically saying that other big pharma goes out and finds patients, use them as lab rats, but we have a connection with our consumer. We talked to them. We can recruit them. And we can talk to them and tell them you are helping with this research, with this discovery. They think that will make them different. Cory is that an expensive an extensive part of designing drugs . Jay Clinical Trials are expensive and timeconsuming. Im not sure it will be 10 times faster or cheaper using 23andme. You spend a lot of time waiting for fda to get back to you when you request to start a trial. They need to review data and they may ask for more data. Even just the final step of submitting our new drug application to fda, they have nine months to review it and get back to you. Cory thank you very much. Bloomberg west will be right back. Cory you are watching bloomberg west. I am cory johnson. Russia has expanded its presence in latin america in ways that signal a clear return to cold war tactics. That is according to so than forces john kelly. Kelly emphasized that russia is stepping up efforts to gain gain influence in the americas. Vladimir putin accuses america of meddling in his backyard, in ukraine. The ayatollah ali commodity suggests internal division in washington when the Current Administration is no longer in office, the deal that america is agreeing with you and the commitments it is making is no and void. This is the ultimate collapse of political ethics. Cory those talks are said to resume on sunday. On march 4, agents were returning from a party. They have since been reassigned to other jobs. One of those agents is more commonly, the second in command in president obamas security detail. Sales will be 20 million lower than analysts had been predicting at lavrov liquidators at lumber liquidators. We came into this with positive brand sentiment. Since the broadcast proximately 8 of consumers say they would not consider buying from us at this time. We have brought in Additional Resources to assist us in responding. Cory he also said the company is unable to offer any profit Sales Forecast for the following year. Intel is down to is down about a billion dollars. Corporate demand has been following. It is happening in small and medium businesses. Hillary clinton thought it would be easier to carry one device for both personal and work emails. Doesnt everyone . But could she have done differently to protect your data. We have that, problem of having a job and having a life and having email for both. This coalescing of technology and politics, particularly interesting. You can have two email accounts on one phone. Can you in government . Sanjay of course you can. Perhaps a little bit of an indictment of what you could do on a blackberry. Balance came out in 2013. Cory so on a blackberry at that time, you could not due to do bureau . Do two . Sanjay in the iphone world, samsung world, it is so much easier. Today in the business world, we have been very good in making Security Management for this containerized life. Cory you guys have had a particular product sandbox describe that to me. Sanjay we acquired sand watch, working with the highest levels of security. This is the department of justice, white house and several others. In essence, we are able to create a personal space for you where you can have your personal life, facebook or email, and a secure place for your email i rarely. Corporate managed and corporate controlled. Cory lets see what hillary had to say when she was asked about this. Secretary clinton i thought it would be easier to carry just one device for my work and for my personal emails instead of two. Looking back, it would have been better that i had icily used a second email account and carried a second phone, but at the time this did not seem like an issue. Cory is this unusual . Was it unusual at the time because of the limitations of the blackberry . Sanjay possibly. In todays world i am not going to comment on having a private server. Cory Bloomberg News did a story that said a highly insecure way Hillary Clinton said shealy sent one classified said she only sent one classified email to a u. K. Official. That is incredible. Sanjay it is not very different from banks. Banks have very high security. They have been creating a security zone. The government has no different needs. What we have been focused on is how you can mix those two lives in this post pc world, even post black airy world. Blackberry world. What happened between 2008 and 2012, i am not going to comment on the political hot potato. Nonetheless, if you look back even secretary of state kerry said he is doing their. If they are using an iphone or samsung phone, have a separation of church ends late, so to speak, between their work life and their personal life. Cory i wonder how big is that business. Sanjay absolutely big. We talked about this almost a year ago. At least up to 7 billion people in the world. A billion of them work for some company. And all of them have at least one. I have three devices. Cory you have three devices . Sanjay you have to keep folks happy. Whether its an ipad or some smart phone or another. Everybody needs to be secured and managed for exactly these reasons. It could be a highsecurity use case like a bank or one that is not as regulated. We take that entire landscape of a billion devices. It is similar to what symantec and mcafee did in the pc world. Cory is the byod trend of users is to bring their own device, does that exacerbate the problem of insecure emails the mix of personal and work . Sanjay either a corporate own policy were the company or government gives you phones, you have to be on the forefront of being on a byo policy. Most of that is now becoming a self science a salt science a solved science. Cory bloomberg west will be right back. Cory the workforce in many Tech Companies are white dudes like me. But now he more diversity to Digital Media and advertising. Iab Education Foundation is designed to foster this. Talk to me why you guys are taking this big effort. Randall and order to get a continuously improving workforce, we need to be a hell of a lot more open to the diverse constituencies that make up our market faces our audiences here in the United States and abroad. You got to represent the people you work for and we dont. So if we are going to have a better workforce, we have to be open to higher degrees, much higher degrees of gender diversity, ethnic diversity, and also economic advantage and distant bed edged and this advantage diversity and disadvantaged diversity. Tim most companies are not representing the consumers that they are touching or need to touch. Diversity is a real social and cultural challenge inside our industry. It is also one of the biggest Business Opportunities in general. Something i would like my own company is how do we make our products and services more attractive to more diverse audiences. I think that comes with diversity inside first. Cory and this notion, how hiring works, it is interesting how these issues come up in a way where the hirers are just not aware of. People being passed over because their name looks different. When Lakisha Jackson applies for a job and emily smith applies for a job. Randall we have been doing a lot of work in our listening to her here at the bloomberg headquarters. She has some of the best research i have ever seen on unconscious bias. It is breathtaking. It is so astonishing, you cannot even be depressed by it. You would be amazed. You mentioned one, changing the names on top of resumes so they are identifiably hispanic or identifiably africanamerican or seemingly white. And the difference in callbacks is three or four acts. Once she showed today i had never seen before which kind of blows your mind. She headlined it crossing while black. Drivers will stop for a white person in a crosswalk i think it was three or four times more frequently than they will stop for a black person in a crosswalk. But it is over and over again. She had this wonderful piece of the presentation where she had a student with whom she was working who was completely natively fluent in spanish and he was and his real name was ron baker. So they send him on video job interviews under his real name juan baker and alejandro diaz. Some were totally fluent unacce nted english. The difference in callbacks in video interviews was night and day. Cory we knew there was a problem, right . When you are hiring people, tim, what are you doing what caught me was in Computer Science 101, where there are all white dudes applying. What are you doing in your hiring to get away from that . Tim what we have been talking about our roadshow across a country is making sure that Diverse Talent is involved in the recruiting process. If you and i are trying to recruit Diverse People it is different if they are sitting across the table from somebody different. Even at university campuses, when a diverse person comes onto a university campus, if they dont feel like the Diverse Community there is available to them and figure out how to fit in, they have higher attrition rates. Companies have the same problem. Even if you hire Diverse People if the culture is not around more types of diversity or it is not understood how diversity fits in the culture, you end up with more diversity issues. Cory sending the black woman down to the career fair, then they say dont forget about your real job. It is important for the ceo or manager of a company to say this is your real job. Tim just instituted this year, we are going to try to get 30 increase in diversity in the polls we hire from. I think people in the diversity area are afraid that if we put a metric is ther a metric in there. A leader in my position, i can affect how we do diversity inside of my company and i can help randy with industrylevel things. My goal as a manager is to make our company a strong as possible with the best talent in the world. You would be kidding yourself right now if you look at where the internet is going or where digital is going. If you dont look at diverse populations, you are probably going to regret it. My team recognize that and we made a physical change. Our hump and is going to get this get paid this year on its metrics and how we open up more diversity and to bring more talent into the company. Cory thank you very much. Lets get the top headlines. United technologies [indiscernible] they make black hawk helicopters for the military. Sikorsky probably does not fit into the companys portfolio. The nba says its owner phrase are getting it wrong. They have made the wrong call or noncall more than 14 of the time in the final minutes of a game so far this month. One of the biggest fights in history, Manny Pacquiao and mayweather junior finally facing off. They met with the media yesterday. This is a fight that the world cannot miss. This is an unbelievable matchup. Actionpacked fight. Cory tickets for the fight are as much a 7,500. It could be much more in the secondary market. Mark crumpton joins us from new york. Mark the u. S. Department of the interior is teaming up with American Express to enlist volunteers to preserve Americas National parks and public lands. Interior secretary sally jewell will join me to discuss the state of the National Parks and the importance of Community Service in the time of budget cuts. Cory thank you very much. Bloomberg west will be right back. Cory its time for the b we st byte. Ive got 4 . One is 4 of the 6 million 6 billion at a thai zingy agency is run by miss 6 billion of Advertising Agency is run by machines today. When you think about it, if this were a baseball game, we would be two outs in the first inning and the other team has not gotten up yet. We are excited about the 4 going into the 96 . Cory do you see this will we get to 100 . How big will programmatic be in advertising . Randall they already are. The upper advertising you see in taxicabs actually, lots of billboards are already. The barbell strategy is a good way of thinking it through. There will be a big chunk of advertising that will be priced placed, optimized through automated mechanisms. But we are already seeing the opposite take place. There is a big chunk of advertising that is increasingly customized, specialized, really designed to fit very specific environments and very specific consumer bases. That is the barbell that tim has talked about for years. It is bothand, not either or. Much more highly customized partner marketing programs. Cory do you think we will see this adoption spike this year or next year . Tim i think it is. Movie viewership in theaters has resay fiveyear low. People are really Going Digital has reached a fiveyear low. People are really Going Digital. Cory bloomberg west will be back tomorrow. From bloomberg World Headquarters in new york, im mark crumpton, this is bottom line. A main street perspective. Mel mark welcome, we have stories in the stocks. Scarlet fu is following lundberg liquidaters. The company is reporting lower sales as its Company Takes a hit. And