Keep the euro intact before heading to brussels, telling german lawmakers if the euro fails, europe fails. In switzerland, Swiss NationalBank PresidentThomas Jordan pledging to keep Interest Rates low. He also promised continued intervention to keep switzerland from deflation. In a very shortterm we have to accept inflation is below zero, negative. That will change. We expect inflation will be back in positive territory early 2017. Cory jordan says the swiss franc remains significantly overvalued. Google and intel are teaming up with tag heuer to develop a smart watch. The watch will be unveiled sometime this fall. Here is the tag heuer ceo at basel world, the worlds biggest watch and jewelry trade fair. We announce a huge partnership. Silicon valley has met switzerland. By doing a partnership with the two giants from Silicon Valley google and intel, google and intel will partner together in order to make the next tag heuer connected watch. Cory other swiss watchmakers are adding digital features to their products. Go daddy has plans to sell 22 million shares priced between 17 and 19 apiece. Go daddys ipo comes three years after the company was taken private. They are hoping to get an uptick from that investment. Go daddy posted a loss last year and revenues of 1. 4 billion. The ncaa tournament kicks off in minutes. 36 leaders from top corporations are taking part in a bloombergs brackets for a cause. Tech titans include eric schmidt, john chambers. Undefeated kentucky was the top pick of the 23 entries. Now to the lead. Teslas ceo has a message for model s drivers he says. With the new Software Update, it will be impossible for a car to run out of a charge, released by accident. Musk unveiled the Software Update earlier today. He says tesla will have charging stations in most of 50 states within the next year. Elon musk the charging network has grown dramatically over the past years to the point where virtually the entire u. S. And canadian population is in range, as well as northern and western europe. Cory he says the model x will hit the road this summer. Will a Software Update suit fears with the cars battery konking out . Joining me is a battery expert and author of a terrific book about the search and battle for a better battery. Also, from new york, a senior analyst. Peter, i know you are very bullish on the company. What was the best news for tesla out of todays press conference . Guest about managing expectations when the gen3 product comes out. I dont think customers with a model s have range anxiety. This is about managing the inside part of the experience, and with a potentially smaller battery, range anxiety will be an issue and this will address it for them. Cory when did you expect the car, and when do you expect it now . Guest by 2017. When the giga factory is up and running, we will have the car. Cory what are the technological limitations to creating this car for the masses . The luxury tesla, they say the base price is 70,000. To sell a 30,000 car, what do they have to overcome technologically that they have not already . Guest i wanted to Say Something first. That was a followup to what mr. Oneill said. I got a different message from what elon said in his press conference because he said that 200 mile range is a passing grade for an electric car. He scorned the question regarded gms plans for a 200 mile car. He said, if you have 200 miles thats only a passing grade, and the sweet spot the tesla shoots for is 250 to 350 miles. I saw that as a signal that the model three is going to shoot for longer range, its going to try to get into the 250 to 300 mile range. Cory the cheaper version of the model s is the one that starts at 70 and change, has the 200 mile range. The more expensive version has a range closer to 280, they say. Guest yes. He went on to say that even if you do have 200 miles and you get that passing grade, it has to be a real 200 miles. It cant be that you have your air conditioning off, you are crawling along at 40 miles an hour, the weather is perfect. It has to be real driving conditions. I got the impression that he was setting the bar differently from how we until now have been looking at that race among the carmakers for the car, the 200mile car in 2017, 2018. I think hes saying at least theres going to be the option to go further than that. Cory theodore oneill, elon musk often sets a high bar. Last quarter they said they would sell 11,000 cars. They sold 9800. We think of that as his own aspirations, or the promise from a Public Company ceo . Guest he knows exactly what hes doing. If they can get jen three to get to 350 miles, im not sure where they would shoehorn all of those batteries in that would be great. What they talked about today in their press conference was software, not necessarily about the batteries, but how to let the customer be comfortable with letting the car control the charging aspect, the planning aspect so you dont have to worry about running out of battery power. Cory to be fair, one might mock this, its a warning light coming on the dashboard. It does say, you are now about to drive beyond the range of the nearest charging station so if you dont turn around from the direction youre going right now and get to a charging station immediately, its your own fault if you run out of juice, right . Guest what musk said today, in effect, is that range anxiety is a psychosomatic malady. Its totally mental. Im going to give you bedside manner. Im going to tell you when youre about to be sick if you dont do something about it here and he said, my cars effectively go far enough. If i can put in a 500mile battery but it would be dead weight in the car. What you need is that kind doctor. Cory do you think the competitive efforts to come up with a better battery might actually alleviate these worries of distance in a much bigger way, or is that too far off . Guest this still is the essential tension in the industry. The folks like gm and the rest of the industry that is trying to create the super battery and thinks that is where the tire hits the road, and then elon musk, who thinks im going to engineer my way there, im going to create the mental framework for people to feel calm about owning an electric car, and im going to build a gigantic lithiumion battery that cuts the cost by 30 . Cory steve levine, author of a terrific book about the battery business. And peter oneill, thank you very much. Cory coming up, one of the worlds bestknown Cyber Security experts told us what you think Russian Hackers have a strange advantage over the rest of the world. Also, going to the dogs, rover or airb b for dogs has raised a big round. Making fidos vacation easier than yours. The bank of new york mellon is close to settling allegations it defrauded clients in Foreign Exchange transactions. The bank will pay more than 700 million to settle the suit brought by both the feds and new york state officials. Some private lawsuits will also be settled. It can cost less for the pentagon to fly lucky martin Lockheed Martin f35 fighter jets. It can cost 7. 5 billion because of lower labor costs. They are now expected to spend 391 billion for a planned fleet of 2443 jets. Eu leaders gathering in brussels. The ceasefire in Eastern Ukraine is tenuous. Ukraines Prime Minister says he must not let down his guard. We can talk about the rollover, and how to scale up sanctions in case if russia is not eager to implement the deal. Cory leaders that expected to announce any new sanctions at the brussels meeting. The most popular makers of the early Cyber Software in the world, the moscowbased firm generated 670 million in revenue in 2013. The software is loved by the best buy geek squad. The firm also has close ties to the russian government. American Cyber Security firms have similar issues. How does this impact the business these companies do . That story is featured in this weeks issue of businessweek. Jordan robertson is in washington, d. C. This company is so fascinating. You have known it for a long time trade what have you learned in your story . Jordan it has been an object of fascination for a lot of usbased security folks for a long time, primarily because its a moscowbased company, and the founder was once affiliated with the kgb. What we discovered through our reporting is the ties go much deeper than that. One of the most interesting findings is that there is a man at the company who is their chief legal officer. Until we started asking questions, he did not have a public bio on the website. He is essentially the point man for all requests for data from the fsb and other russian spy agencies and other Government Agencies. Its not unlike what many u. S. Companies have. Until now we have not had a clear picture of what that looks like. That was the point we try to make in the story, put names and faces to what the companys ties to russian Government Agencies looks like. There were some revealing findings in that. Cory i know the company best for the reports about Illicit Activity going on across the web, and weird reports that suggest the nsa but always stop just short of those three important letters. What is the companys Main Business line . Jordan the Main Business line is the Antivirus Software that you will see on the shelf with best buy. If the big driver of revenue in the u. S. For them. Its really important that people buy it. The reports are basically pr for the company. It serves two purposes. One of the reasons we decided to do the study was because they came out with this report not so long ago about a Hacking Group called the equation group, essentially believed to be the nsa, really highlevel sophisticated spying in other places where kaspersky is that the u. S. Isnt. One of the reasons theyre able to put out such reports is they are places where u. S. Companies are not, but also theres a tendency at the company to focus on those threats at the expense of russian based hacking attacks that u. S. Companies like to focus on. As one analyst said, theres a cyber isolationism occurring within the industry but if you are a usbased company with ties to the nsa, youre going to report on chinese base tax. If you are a russian based company, youre going to focus on u. S. Based attacks. Cory we will have more from kaspersky soon. Thank you for coming onto the show and writing the killer piece. Stay with us. Cory im cory johnson. This is bloomberg west. Eugene kaspersky began his cyber career in 1989 after his computer was infected by a virus. The former kgb officer decided to launch what would become one of the worlds most profitable security companies. It now operates in 200 countries. Here is what he had to say. Mr. Kaspersky its not the same that it was 5, 10, 15 years ago. The players are different. There is a revolution of the cyberspace. In the past, they were several bands of kids, students writing the computer viruses. Then the cyber criminals came. They were individuals. Then the cyber criminal groups they became organized, informational, very professional. Then we are facing the espionage company. Now its even different. Traditional crime is coming to the cyberspace. They employ Software Engineers to support operational crime. [indiscernible] we are in a very interesting business, which is not easy. Its hard to do our job, but its a cool place to be. Cory when you said traditional crime, what do you mean . Mr. Kaspersky they hack computer stations, the transportation hubs. For example, they hacked the antwerp seaport to transport cocaine. In some of the containers they have cocaine planted in. They know which containers they have cocaine. They hack the system to unload containers with cocaine. Or they hacked the petrol station to steal petrol, or they hacked the coal mine to steal coal. They report more coal, which is actually lower. They were arrested. Thats why i know that. The company that was trading stolen coal. Cory you have been operating in the u. S. For 10 years. Do you see this happening in the u. S. As well . Where do you see it the most . Mr. Kaspersky i made a report about traditional crime in cyberspace. Im pretty sure it is here as well. Cyberspace doesnt have borders. They trade technologies. They speak many different languages. What is going on in the rest of the world is in the United States as well. Cory this may be very basic but why are there so many hackers in russia . Mr. Kaspersky russia is very rich of Software Engineers thanks to russian education. Russian engineers are the best. Its not my words. Condoleezza rice once told me that. Russias engineers are the best. But other side of the coin is that russian cyber criminals are the best as well. Im sorry. [laughter] cory i wont give you the credit or blame you. I wonder what its like running your very important antihacking organization in a nation filled with hackers. It must raise interesting challenges. Mr. Kaspersky we have a very strong presence in many nations. Being in the nations which runs the source of attacks, we benefit from that because we see their tracks before our competitors see that. We are first to find, analyze, and report the new types of attacks. Cory that was eugene kaspersky, ceo of kaspersky lab. How about an app that can transform your daily commute . Cory you are watching bloomberg west. Im cory johnson. Lets check on some Bloomberg Top headlines. Oil resumes its plunge, erasing gains from yesterday. Traders focused on the supply glut. The u. S. Dollar is strengthening following yesterdays selloff after the fed cut its estimates for Interest Rates. They need to see a turn upward in core prices first before they will raise rates. Its the faith versus proof factions on the committee that are fighting with each other those who have faith in their outlook and will go on that and those who want to see proof in the data. Its not about the labor market at that point. Its about core prices. Cory janet yellen says the fed wants to make sure the labor market is strong and inflation is approaching the 2 target. The world famous yellow cabs are now outnumbered by ubers. The city says there are 13,600 mendelian taxis. There are now 14,000 uber cars. Phillips is planning an ipo for its lighting unit. That would allow the Dutch Company to focus on Consumer Health care. Could be a 100 billion market. The competition has intensified in the industry, as the industry is moving towards led. China cutting 200 to 300 jobs. Yahoo does not offer local product experiences in china. Marissa mayer is under pressure from activist shareholders to cut costs at the company. Amazon expanding its sameday Delivery Service called prime now to baltimore, miami. Prime services debuted in certain parts of manhattan. Twohour delivery is free. Google and ebay also offer onehour Delivery Services. What about traffic . Are we all sick of traffic . A new app says it can transform your daily commute. Urban engine analyzes data from trains, buses, tollways to improve traffic in the worlds biggest cities. It is unveiled and app for consumers to navigate rushhour. Joining me is the ceo and cofounder. Great to see you. This is a fascinating use of the data. Guest we look at buses, cars, trains, see where people are. We figure out how many people are stuck in platforms waiting for trains. Cory this is impossible data to gather. For example, lets imagine guest also from the smart cars they use in travel. Cory smart cars in singapore, in brazil. Guest and washington, d. C. Cory it seems like it would make sense. You can see if a bus slows down, everyones phone slows down. But then one bus jumps the other one or if im driving a car pool lane, does that mean im effecting the traffic flow of all the measurements being taken of everyone else . Guest to a certain extent, you are, but its very local. You need about 10 or 15 . It works in the aggregate. Cory the Tipping Point is 10 to 15 . You have got to have 10 to 15 of everyone on the road or on the bus. Guest from buses to buses on the same road that are available at the same time. People tend to jump in a bus that is coming at them. If youre waiting at a bus stop and nothing is coming your way for five minutes, you will jump on the next bus. What happens is the bus behind that crowded bus is usually reasonably empty. It is a Snowball Effect where the first guy picks up everybody and the guy behind him is less crowded. Cory is the notion here when youre stuck in traffic, when im waiting to get on the Golden Gate Bridge or the bay bridge or whatever, and i suddenly see all the cars around me have four or five seats that are empty and everyone is single passenger you think if we were all just riding together, or riding at different times the city has tried Different Things over the years to get big corporations to shift their days later or earlier to help traffic flow in the city. Guest there are three things what all can do, try and change our motive travel, change the time at which you travel. Mode of travel does not mean public transport. Another is ride sharing. Many people work at the same place but live reasonably close to each other as well. Of course, change the roads on which we travel. Moving people, shifting the main space, time, and mode. Cory how does the Technology Work . What is happening behind the scenes here . Why is this possible now and it wasnt before . Guest in terms of why it is possible now, the cloud is available and data can be obtained and shipped into the cloud. Gps location of a bus, its very cheap to do so. You can understand where the supply of capacity is available right now for you, the commuter, to get where you want to go quickly. What do we actually do . We work with the transit operators on the buses, trains to understand where are the bottlenecks. Cory dont the operators of the trains and buses know where the bottlenecks are . Guest in general, they do. But if you look at three trains can go within a 15 minute interval, usually at that level is the peak of the peak. It shifts during the course of a week. Cory does it really . I know when the bart train will be crowded after the trading day ends, and 5 00, that is when its crowded. Guest you are right. Generically, that is true at some locations. What happens is the train going in the outbound in morning rush hour. The outbound are actually empty because no one is going the other way. People want to flip those trains around. They dont want to take the same train all the way back to the starting point. Our platform allows them to understand which stations to you flip the trains at, how can you get the capacity of transport. Cory i read where you guys are going to start offering the service to regular joes. It struck me as a brilliant way to get more data on your platform. Is that the goal . Guest the goal is to give information to the commuters. We give realtime information to commuters. Guest waze cory waze is a lifechanging app for me. Outsourcing, crowd sensing. Guest our app has three features that really make it unique. It can go completely offline. You dont need connectivity. This means you can look at the map, search the map while being disconnected from the network. This is useful for someone stuck in subway systems where connectivity is very poor. Or if you are traveling and you dont want to pay data roaming charges. We use augmented reality to help you understand where the bus and train stops are relative to where you are just using a camera view. It is really fast in terms of routing. This is what the app allows you to do, the computer, to find out how to get to any one of those. Cory thank you very much. Really cool stuff. Bloomberg west will be right back. Cory coming up, microsoft and salesforce. S. A. P. Paying investors to keep the stock. Rover can make your dogs next vacation easier. The Worlds Largest mobile carrier, china mobile, lost 9 billion in market cap. The Company Posted its largest annual profit decline since 1999. China mobile has been spending more to promote its 4g network. Costs drag down yearly profits by nearly 10 . S. A. P. Announced a 1. 4 billion dividend two months after cutting its profit target. S. A. P. Changes payoff policy boosting portion of profit in returns to shareholders by more than 35 . The head of the secret service has reports of agents crashing the car into the white house barrier are overblown. The car entered the complex at speeds of 1 to 2 Miles Per Hour before hitting a plastic barrel. The start of his brain together two of the biggest rivals in enterprise tech together insidesales. Com raised 600 million in funding. It has competitors coming together. Salesforce and microsoft working together. Joining us to discuss this is the chairman and ceo. Talk to me about this. Its like cats and dogs coming together. Its like the sharks and the jets. Guest its an unusual round. It was exciting for us and it was surprisingly instigated by the two partners. We have been a longtime partner with salesforce. Com and we suggested we were considering a strategic investment. We had been a partner with microsoft and they suggested, it might be interesting to consider some other strategic investors. They said, we would be particular if they were the right or wrong people. I said, we have a really Good Relationship with microsoft. They said, that would be fabulous. I went, awesome. Lets do something. Cory you inked the deal. What is the premoney valuation there . Guest well north of 1 billion. Cory thats not a number. Sales, man. Come on. Guest sales has a fairly good evasive tactic at times. It was a good step up. Our previous investors are pleased. This is about creating an ecosystem. There was a lot of demand well over the 60 million we ended up raising from crossover investors. For us, this is about a key strategic investment and aligning with the two largest ecosystems in the space. Cory youve achieved this billion dollar market cap because you solved what problem that has not been solved before . Guest sales have gone through a significant disruption. We are solving the challenges associated with the more traditional sales. Companies are trying to lower cost. They are applying an inside sales technique to deliver a more efficient acquisition of revenue. We provided technology that delivers that, typically 1 3 to 1 2 the cost. Ours is a toolset that delivers that. We are doing this with the data. Its a massive crowd sourcing engine. We have over 2000 clients and they are helping each other be better. Theres 45,000 salespeople on the platform. Using the data to provide recommendations that help everybody be smarter. Cory every Company Using some sort of crm software to run their Sales Organization is also acting as a sensor so that you can recognize trends using big data of what a real lead looks like, what Real Progress looks like, and spent that back to them in real time . Guest we are looking at contextual data. If it is sunny in l. A. And rainy in phoenix, you should be selling in phoenix because contact rates are higher where it is raining. If regional gas prices are low purchase rates are higher. There is a euphoric effect and people are buying in a much higher rate. Were looking at massive amounts of contextual data. Cory now i know why the bay area economy is booming. The warriors are winning. Thank you very much. We appreciate your time. It has been dubbed the air b b for dogs. Details are next. Who let those dogs out . Who . Cory im cory johnson. It is time for the bwest byte. That number is 25 million, that is how much money raised by rover. Joining me is the ceo with some friends. Who do we have here . Cory can you read the teleprompter . This is ginger and henry. These dogs are typical customers. We have dogs of all sizes, but labs and golden retrievers are always popular. Cory how does rover work . Guest you go to rover and type in your zip code or address. You come up with a list of dog lovers in your neighborhood who will care for your dog while youre traveling. Cory it is like finding a babysitter, finding some stranger to take care of your dog. What is the biggest gating factor . Guest 65 of our customers are people who have otherwise never used a commercial service for dog sitting before. There is a natural newness for people, but they get over it quickly and once they use the service, we become their primary go to service when they travel. Cory talk to us about growth rates. Guest we have quintupled yearoveryear. The sitter base has doubled. Cory you are seeing more uptick of the sitters . Guest absolutely. In the last five months, dog owners come back about 40 more frequently than prior dog owners. Customers are becoming increasingly more loyal and use a service that much more often. Cory in terms of cities, do you pick regions and fill in . What is the right number of fill in dogs per capita . Aaron it varies by city. We have members in 10,000 cities, but San Francisco and new york and seattle where you have a lot of density and a lot of dogs. Cory dog density, where are the biggest cities . Aaron San Francisco and new york probably have more dogs per square mile than anywhere else. Cory what is the most Effective Marketing tool . Is it wordofmouth . Aaron 92 of our customers have referred someone else to rover. 40 have referred five or more people to rover. We can absolutely do marketing as well. Cory what kind of marketing . One of the things of bloomberg west is that the methods of marketing is changing a lot more. Knowing someone is a dog owner is a very big thing for marketers of all types. Aaron 90 of dog owners until rover did not use a commercial solution until they traveled. You have to look for those who do look for commercial solutions. Google and yelp can be great. For those who dont look for commercial solutions, Brand Awareness marketing and wordofmouth. Cory you raised 25 million. What kind of premoney valuation was that . Aaron into nine figures. Cory do you want to keep that number low so your future rounds could see bigger appreciation . Aaron we have always wanted to be measured how we grow the business. This business is never going to grow in the way that uber would because most of the owners currently dont search for solutions. We think it will ratchet up over time. Cory this dude is looking for a better contract, i think. [laughter] what is the biggest thing you feel like you could not have gotten to without the 25 million . Aaron educating the broad populace that this option exists is probably the most expensive most difficult thing to do costeffectively. Were excited about being able to expand the customer base. Cory ginger, henry . Over here. Dude. Its the gray hair on this dog. Thank you for coming here. Congratulations on the round. Henry, ginger, appreciate your quality time as well. Check us out online on your phone, on the radio. More bloomberg west tomorrow. The following is a paid for time life and start vista. In the 50s and 60s, Country Music poured out of the hunky tongs. Music history was made. Legends were born