Transcripts For BLOOMBERG Bloomberg West 20150413

Reform conservatism better than anyone else in the field. That sets him apart and gives him an argument in addition to the biography, gives him things to say that mary up economic policies and proposals to biography to create a whole narrative. Mark as a reformer talking about the middle class it seems part of why some democrats fear marco rubio is he has the capacity to appeal to democrats independents, maybe bring other people into politics. Scott walker, rand paul, rick perry have less of a claim on that. Al that is what they say. We are not sure of that. It has been tested only in florida. Some local races, he beat charlie crist. That was impressive. I am not sure it is more impressive than scott walker victories in wisconsin. Wisconsin is more of a blue state than florida is a purple state. That is the potential. Let us see if it really materializes. Mark it seems to me a lot of president ial candidates, their strengths are their weaknesses. Rubios youth, vigor, and future looking our big assets for him. At the same time, he does not look like a man with a lot of gravitas to a lot of people. For a Republican Party that has spent six years, more than six years trashing barack obama for being a firstterm senator with no experience, no foreignpolicy knowledge a disaster because he was not ready to be president. How does that Republican Party wrap its arms around someone who looks so much like barack obama . Al you are right. If it were not for barack obama the challenge to have gravitas on Foreign Policy would be less of a styling block for marco rubio. It was 56 years ago, if my math is right, the same charges were named against a man named john f. Kennedy during the cold war, another difficult time. Through the fact that he was a really good candidate, he ran well and he reassured people. That is rubios challenge. Mark youngest person likely to enter the race as a major candidate, 43 years old. His wife named jeanette is a former bank teller and Miami Dolphins cheerleader. They have four young kids. It will be interesting as the country gets to know the rubios whether they can show a family americans would like as their first family. Here is marco rubio making his declaration to run for president formal. Lets listen in. Back after this. Sen. Rubio thank you. Thank you. That is a lot of cell phones. Thank you. Thank you for being here. After months of deliberation and prayer about the future of our country, i have come here tonight to make an announcement on how i believe i can best serve her. I chose to make this announcement at the Freedom Tower because it is truly a symbol of our nations identity as a land of opportunity. And i am more confident than ever that despite our troubles we have it within our power to make our time another american century. In this very room, five decades ago, tens of thousands of cuban began their new lives in america. Of cuban exiles began their new lives in america. United by a common faith in their godgiven right to go as far as their talent and work would take them, a collection of immigrants and exiles, of former slaves and refugees together built the freest and most prosperous nation ever. For almost all of human history, power and wealth belonged only to a select few. Most people who have ever lived were trapped by the circumstances of their birth. Destined to live the life their parents had. But america is different. Because here, we are the children and grandchildren of people who refused to accept this. [applause] sen. Rubio both of my parents were born to poor families in cuba. After his mother died, my father had to go work when he was nine years old. My mother was one of seven girls raised by a disabled father who struggled to provide for his family. When they were young, my parents had big dreams for themselves. But because they were born into but because they were not born into wealth or power, the future was destined to be defined by their past. And so in 1956, they came here to america, to the one place in earth where the aspirations of people like them could be more than just dreams. Here in america, my father became a bartender. My mother, a cashier, and made a maid, a kmart store clerk. They never made it big, but they were successful. Two immigrants with little money or education found stable jobs owned a home, retired with security, and gave all four of their children a life better than their own. My parents achieved what came to be known as the american dream. The problem is, now too Many Americans are starting to doubt whether achieving that dream is still possible. Hardworking families that are living paycheck to paycheck, one unexpected expense away from disaster. Young americans, unable to start a career, or a business, or a emily, because they of thousands of dollars in Student Loans for degrees that did not even lead to jobs. And Small Business owners who are left to struggle under the weight of more taxes, more regulations, and more government. Why is this happening in a country that for over two centuries has been defined by equality of opportunity . It is because while our people and economy are pushing the boundaries of the 21st century too many of our leaders and their ideas are stuck in the 20th century. [applause] sen. Rubio they are busy looking backwards, so they do not see how jobs and prosperity today depend on our ability to compete in the global economy. And so our leaders put us at a disadvantage, by taxing and borrowing and regulating like it was 1999. [laughter] [applause] sen. Rubio they look they look for solutions in yesterday, so they do not see the good paying modern jobs require different skills and more education than the past. So they blindly support outdated Higher Education systems that are too expensive and inaccessible to those who need it most. And they have forgotten they have forgotten that when america fails to lead, global chaos in never to the follows. Inevitably follows. [applause] sen. Rubio so they appease our enemies. They betray our allies. And they weaken our military. Look, at the turn of the 19th century, a generation of americans harnessed the power of the industrial age, and they transformed this country into the leading economy in the world. And the 20th century became the american century. Now, the time has come for our generation to lead the way towards a new american century. [applause] crowd [chanting] marco, marco sen. Rubio if we modernize immigration laws, and repeal and replace obamacare if we do these things if we do these things the American People will create millions of better paying modern jobs. If we create a 21st century system of Higher Education, that provides working americans the chance to acquire the skills they need, that no longer graduate students with mountains of debt and agrees that do not lead to jobs and that graduates more students from High School Ready to work, our people will be prepared to seize their opportunities in this new economy. [applause] if we remember if we remember that the family, not the government, is the most Important Institution in our society. [applause] sen. Rubio if we remember that all human life deserves the protection of our laws. [applause] sen. Rubio and if we remember that all parents deserve to choose the education that is right for their children. Then, we will have a strong people, and a strong nation. [applause] sen. Rubio and if america once again accepts the mantle of Global Leadership by abandoning this administrations dangerous concessions to iran, and its hostilities to israel. [applause] sen. Rubio by reversing the hollowing out of our military. By giving our men and women in uniform the resources, the care, and the gratitude they deserve areas [applause] sen. Rubio by no longer being passive in the face of chinese and russian aggression. And by ending the neartotal disregard for the erosion of democracy and human rights around the world, especially cuba venezuela, and nicaragua. [applause] sen. Rubio then, if we did these things, then our nation would be safer, our world more stable, and our people more prosperous. These are the things that we must do, but this election is not just about what laws we are going to pass. This election is a generational choice about what kind of country we will be. Now, just yesterday a leader from yesterday crowd [booming] sen. Rubio began a campaign for president by promising to take us back to yesterday. Yesterday is over. [applause] and we are never going back. You see, we americans are proud of our history, but our country has always been about the future. And before us now is the opportunity to author the greatest chapter yet in the amazing story of america. But we cannot do that by going back to the leaders and ideas of the past. We must change the decisions we are making by changing the people who are making them. [applause] sen. Rubio and so, that is why tonight grounded by the lessons of our history but inspired by the promise of our future i announce my candidacy for president of the united states. [applause] sen. Rubio thank you. And look i know my candidacy might seem improbable to some watching from abroad. After all, in many countries the highest office in the land is reserved for the rich and the powerful. But i live in an exceptional country. I live in an exceptional country where even the son of a bartender and a maid can have the same dreams. I live in an exceptional country where the son of a bartender and a maid can have the same dreams and the same future as those who come from power and privilege. [applause] sen. Rubio i recognize i recognize the challenges of this campaign, and they recognize the demands of this office. But in this endeavor, as in all things, i find comfort in the ancient commands. Be strong and courageous. Do not tremble or be dismayed, for the lord, your god, is with you wherever you go. [applause] sen. Rubio i have heard i have heard some suggest that i should step aside and wait my turn. Crowd no it is your turn. Sen. Rubio but i cannot. I believe our identity as an exceptional nation is at stake and i can make a difference as president. [applause] sen. Rubio i am humbled by the realization that America America does not only anything. But i have a debt to america i must try to repay. This is not just the country where i was born. America is literally the place that changed my familys history. I regret that my father did not live to see this day in person. He used to tell me all the time used to tell us all the time [speaking spanish] in this country. That means, in this country, you will achieve all the things we never could. [applause] sen. Rubio on the days when i am tired or discouraged, i remember the sounds of his keys jingling at the front door of our home, well past midnight as he returned from another long day at work. When i was younger, i did not fully appreciate all he did for us but now, as my own children grow older, i more fully understand. You see, my father was grateful for the work he had. But that was not the life he wanted for his children. He wanted all the dreams he once asked for himself to come true for us. He wanted all the doors that closed for him to open for me. And so my father stood behind a small portable bar in the back of a room for all those years so that tonight they could stand behind this podium, and front of this room and this nation. [applause] sen. Rubio that journey that journey from behind that bar to behind this podium, that is the essence of the american dream. And whether we remain a special country will depend on whether that journey is still possible for those who are trying to make it right now, the single mother who works long hours for little pay so her children do not have to struggle the way she has to. The young student who takes two buses before dawn to attend a Better School halfway across town. The workers in our hotel kitchens, the landscaping crews in our neighborhoods, the late janitorial staff to clean our offices, and even the bartenders who tonight are standing in the back of a room somewhere in america. If their American Dreams become impossible we will have just become another country. But if they succeed, this 21st century will also be an american century. [applause] sen. Rubio this will be the message of my campaign, and the purpose of my presidency. And to succeed on this journey, i will need your prayers and your support, and ultimately your vote. And so tonight, i am asking you to take that first step with me by joining us at our website marcorubio. Com. My wife and our four children are here tonight. [applause] sen. Rubio the next 19 months will take me far away from home. I will miss watching amanda run track, and daniela play volleyball, and anthony play football, and dominic play soccer. But i have chosen this course because this election this election is about them. Theres is the most important generation in america. And i will tell you why. Because if we can capture the promise of this new century, they will be the freest and most prosperous americans that have ever lived. But if we fail, they will be the first generation of americans to inherit the country worse off than one left for their parents. The final verdict on our generation will be ridden by americans who have not yet learned. Let us not yet been born. Let them record that we made the right choice, that in the early years of this century, faced with a rapidly changing and uncertain world, our generation rose to face the challenges of our time. And because we did, because we did, there was still one place in the world where who you come from does not determine how far you go. Because we did. Because we did, the american miracle lived on. Because we did, our children and theres lived in a new our children and theirs lived in a new american century. God bless you. God bless the united states. Thank you. Thank you. [applause] mark that was marco rubio in downtown miami, announcing that he will become the third republican to officially enter the president ial race in 2016. I am John Heilemann here with Mark Halperin on our set in washington. Al hunt down in washington, d. C. In honor of both age, wisdom, and beauty, i go to al first to get your reaction. A brief, and i would say extraordinarily welldelivered speech. Your view of style and substance . Al it was good. It is a compelling narrative. He does it very well. A few verbal stumbles that were minor. The customary drinking a cup of water. He told the story well. He touched all of the political erogenous zones of abortion and cuba and israel and religion and he spoke spanish. He is a very attractive guy. This is a very good open for him tonight. John he talked about generational choice. He talked about generations a lot, playing off his youth. These think there is a risk in that, or do you think that is all upside for him . Al the upside, far more than any small risk in that. It is tomorrow versus yesterday. He is talking about Hillary Clintons announcement yesterday. I think that is his only hope to be the candidate of the future, and a contrast to not just hillary clinton, but also jim rush. John before we go today on, i want to go to mark bender, our rubio man. Mike, give us a sense of how the room reacted. It sounded enthusiastic. How did it play in the hall is to mark in the hall . Mark [indiscernible] they helped him along in the room. I thought he came out a little bit flat. It is important that he comes out and starts the game with his adrenaline, adrenaline pumping. He stumbled at the beginning of his speech. But a quarter of the way through he had the line, the time has come for our generation to lead the way to a new american century. The room interrupted, and rubio took off after that. John thank you. We are going to come down come back to you a little bit later when maybe it is a little more quiet where you are. Back to our humble home. Dan, we called it the republican inside man. You have been involved in a lot of her republican campaigns. You spent time with marco rubio in various settings. Give me your initial reaction. Dan a good speech. Verbal stumbles will not matter much. What people will remember from that speeches, he is one of the most talented communicators on our side. The youth, the new generation the tomorrow candidacy is mostly upside. You guys were talking earlier, there is some risk that people make the argument he is the republican barack obama. John in a bad way. Dan who got into all these problems with a lack of experience. That will work itself out in the primary. If he performs in the primary, if he beats jeb bush, Chris Christie ted cruz, and ran call rand paul Formidable Political figures, he will come out of the primary looking like he has tremendous gravitas. He has the tomorrow message combined with a guy who, like barack obama, gained a lot in 2007 2008 by defeating hillary clinton. He came onto the stage in the fall of 2008 looking like he had tremendous gravitas, because he had been through a brutal primary. John i want to get marks views on this. I know you have not done your grades yet, but your quick overview on what you thought you saw here today . Mark very strong and right on the message you would want to be on. My instinct is, doing it when he did it, right after he after hillary clinton, at 6 00 at night eastern time, i am not sure he is going to get quite the attention of the senators who announced preceding him. Big part of what these announcements are about is to raise money off of them. Insiders know him. He is still trying to introduce himself. A very wellwritten speech, i thought. Maybe better written than delivered. He did have some rough delivery. A little nervous, maybe understandably so. Fundraising, more than one talented candidate in both parties over the years has failed because he could not raise enough money. Where is he in winning over people in terms of not grassroots fundraising, but super pac fundraising and bundling . Dan a lot of interest in the donor community. Jeff has done very well in the donor community. There is a sense i have talked to donors over and over. There has been almost a slowing down of people moving to candidates, whether it is jeb or walker. They have lined up donors, but there is a sense there is no front runner in the race. Polling shows that the enthusiasm from the ground in the early states, the activists, so there is nobody dominating this field. There is room. Donors are responding to that. Donors are a little weak doubt by the fact that there is no front runner. Donors of her donors abhor these vacuum situations. Mark we are fine without a front runner. It is a good story. This is a guy who you are friends with, with half a dozen of these guys. You have not endorsed anybody. We talked earlier about scrutiny. I wonder if based on your time with marco rubio are they prepared for scrutiny . Are they worried . Dam he dan he was thoroughly vetted when ronnie was looking at him as a vp running mate. Mark just as john edwards was vetted as a running mate. Dan the john edwards issues many of them were following that period. I was not involved with the vetting procedure. Mark the only comparison im making is, it is a different kind of vet. Dan when the National Press corps is breathing down your throat, i know. Trust me. I have seen that with other candidates. Im saying that is the baseline we have. I understand it is a different world when everyone is chasing you. Based on the vetting that romney did, i understand there was nothing substantial enough to get anybody concerned. But he is about to go through this process. It is a healthy process. His opponents will go after him. He will have the press breathing down his throat. This is all good. I would rather be in that situation then be in Hillary Clintons situation. John what is his path to the nomination . Where does he win . Dan this is a challenge. If you look at the field right now, there is no segment in the electorate that he owns. Ted cruz you can see segments of the electorate for whom he is their first choice. For jeb bush there are segments of the primary electorate, the established types, but even some conservative types, that he owns. There is not a large segment of the electorate you could say marco owns on the one hand. So it is going to be a very dynamic process. Some people are going to have to rise and others have to fall for him to find his face. That being said there is no front runner in this thing. It is wide open. There are so many sub primaries going on. It is the moderate bracket versus conservative bracket. Mark we need to bifurcate our digital audience. Those on television have been watching. We are going to take a short break. We will go back to television at 8 00 p. M. Stay tuned to bloombergpol itics. Com for more of our talk here. Amalie this is bloomberg west where we focus on innovation, technology, and the future of business. Hillary clinton is running for president , if you had not heard, and she already received endorsements from politicians in her adopted home state of new york, including Governor Andrew Cuomo and senator charles schumer. Not endorsing her yet is new york city mayor bill de blasio who managed clintons 2000 senate campaign. Mayor de blasio i want to see a vision. That is true on all visions. It is time to see a clear, bold vision. You are not yet endorsing her . Mayor de blasio until i see a vision of where the candidates want to go. Emily the white house says president obama is not endorsing anyone at this time either. The trade group u. S. Telecom has filed a new action in federal court to throw out the new Net Neutrality rules. U. S. Telecom members include verizon and at t. They say the rules are needlessly intrusive and give the fcc too much power. This builds on earlier lawsuit fired by u. S. Telecom, which it admits it fired [indiscernible] a sophisticated Hacking Group has been targeting governments and companies in Southeast Asia for a decade according to fire right, which is the group increased hacking activity ahead of regional diplomatic meetings. We have seen that all the evidence which we have identified points back to china. The evidence includes the vic them groups that were targeted and the information that was sourced. We looked at who would benefit. We also looked at the technological artifacts. We looked at the tools, the malware, and the hosting that was used, the technical details. What we noticed was that all of the tools that were used were designed to be used by chinese link which audience. Emily Chinas Foreign Ministry Defense Ministry and internet regulator have repeatedly denied the nation is behind any cyberattacks. Twitter has long made money by selling its data to third parties, but the company is poised to cut off that stream of data, known as twitter firehose to bring it inhouse. Twitter said it came naturally after it acquired a third party last year. Twitter made 147 million, about 10 of its revenue, in data licensing. Pepsi is replacing coke as the official partner of the nba. This means pepsi co. Will be the official partner of all four major u. S. Sports leagues. Cocacola had been the nba official partner since 1986. Google has joined the search for a better battery. According to the wall street journal, a small group began testing batteries in 2012. I year later, the group expanded to look at Battery Technologies google might develop itself. Google has at least 20 batterydependent projects so far. Running us now from washington, steve levine, battery expert and offer of author of the powerhouse. Steve, Battery Technology is famously difficult to advance. Can google make more breakthroughs than anybody else . Steve we do not know what google will come out with in the lab. What we do see the head of the google group was head of the apple group until recently, a couple of years ago. And he was responsible for a few tremendous breakthroughs. In fact, batteries that are inside the iphone 6 and the six the 6x. Both came from his lab. His people produce that. What we are seeing it is very interesting that the end users google, apple tesla, of course, Richard Branson they are all in patient with the battery makers. They are taking the process of creating the better battery, the super battery, into their own labs. And by pushing the process, i think we are going to see this going much, much faster. Cory i wonder when we look at what they are doing it is funny you mention Richard Branson. I talked to him last week. He dipped into his pocket and pulled up a folded piece of newspaper about some advance he read about happening at stanford around the use of batteries and the duration which they can be used. For google in particular, a way they have already done things with existing lithiumion batteries to try to combat some of the weaknesses, such as project blue, their effort to spread the internet using hot air balloons but at temperature, the lithiumion does not work well. Do you expect advances from google to be focused on new technologies in the same way gm is trying to be a powerhouse . Or do we expect them to tweak existing technology the way tesla has . Steve what we are seeing at google and at the other majors that are all working on this is tweaking engineering existing technology. They are not getting away from lithiumion. They are using their engineering genius, their ingenuity they have shown again and again to make that better. The team at google one thing the leader has proven especially adept at is taking a standard battery and cutting it up into pieces different shapes different sizes and stacking them up so they can fit inside custommade into a particular users device. This is a huge problem with google glass, for example. How do you power google glass . I would expect he is really good. This is the best age to be a battery genius. There may have been no time in the age of batteries that you can make your name and get rich. If any of your viewers are in that space, if they are battery geniuses, go to silicon valley. You can earn a lot of money right now. Cory it is one thing to try to figure out better batteries for Consumer Electronics phones glass, whatever. The automotive industry, as you write about so wonderfully in the book going up against gm is a tough effort. You still think there is a lot of innovation to be had in the battery cars . Steve yes, i think that the fact that apple and google and then Richard Branson they are attempting to be in the space. That google is in the space is a very good sign for producing the super battery. They are better than gm and doing this. There are two pillars of creating a commercial super battery. One is discovery in the lab. The other is genius and manufacturing. That is what they have. Producing design products that Consumers Want to buy. They have that sizzle. Getting them out into the market, owning the product after it has been invented in the lab. Emily how far off is the day i do not have to charge my phone multiple times a day or have to worry about it losing charge in the middle of the day . Steve this is the main thing i think that most people worry about. They are so upset. I just flew in from minneapolis. Minneapolis five chicago. You go through the airport. Everyone is looking at the floorboards of the airport as they walk away, looking for a place to plug their phone in. I think this is the first stop. This is the low hanging fruit. I do not think it is far away. The greater challenges cars challenge is cars. I think your electronics, two, three years depending on how you use your advice, of course. Emily the battery expert and author of the powerhouse. Coming up next, how to make wood without trees. A new material made from mushroom. And we look at the game of thrones leak. How would the most pirated tv show respond . Emily could your home someday be built from mushrooms instead of wood . We visit one company that is already planning for it. And game of thrones taking on a real battle hbo versus hackers. First, a check of top headlines. Antigovernment protesters are turning up the heat on the brazilian president. About 100,000 demonstrators marched in sao paulo, calling for her impeachment. Brazilians are upset over a massive Corruption Scandal at petrobras, along with a struggling economy and a slumping currency. It has been quite a reversal for coffee. It is one of the worst performing commodities this year after being a top performer last year. The reason . Rains have returned to one of the biggest coffee growing areas of brazil, likely ending a supply crunch. A notebook the longing to british mathematician alan turing hits the Auction Block today. Turing is the man who cracked the german enigma code during world war ii. This is the only extensive touring manuscript turing made a script known to exist and is expected to fetch at least 1 million. Could we soon be building our homes out of mushrooms . In the spark, we looked at innovators taking on seemingly unsolvable problems. This is an upstate new york company that believes rigid board like materials made from mushrooms could replace play board and manufactured Wood Products in the furniture business. It has created biodegradable packing materials out of natural mushroom fibers. Take a listen. Stan manufactured wood is everywhere. Each year, we make millions of cubic meters of particle board that goes into everything from the chairs we sit on to the houses we live in. But there is a problem. Most manufactured wood contains urea formaldehyde, a binding agent that sounds nasty because it is. The federal government has classified it as a known human carcinogen. In order to maintain our current quality of life, we need to challenge the way we are using, discarding, and manufacturing materials today. Stan i am inside a factory in upstate new york where new breeds of renewable Construction Products are not made. They are grown. This new process is based on an unconventional source, the root structure of mushrooms. In about five years, we expect you to be building your home with mushroom materials. Stan what are the problems with the existing traditional material that we use for building and other products . Traditional Wood Products the principal composition is typically around 85 of the total mass is would wood. The remainder is synthetic resins derived from natural gas human carcinogens. Stan you are talking about what people might call particleboard. Gavin exactly. The chair in your office or the desk or table in your home. Stan by replacing formaldehyde with my psyllium they can avoid the complications. It is like a natural adhesive. We used to constituents we use two constituents of groundup wood waste, and inject that with [indiscernible] it goes through and around the particles, binding them together through the growth of the organism transforming discrete particles into a physical composite. Essentially, we are using natures technology to grow a glue. Reporter this is what is in all these racks behind us . We have an enclosure. The enclosure provides the shape and geometry we are looking to grow. We cracked this open. All of the white material you see here this is really pliable. It is a living, breathing fungus. Look at the side of this. We have some of the corn waste completely encapsulated with the stuff. It is pretty tough. How long did it take to get from raw ingredients to this. This is day four. This is ready to go to our press. That is going to consolidate the material to a thickness that can be used in the furniture material. It is moving the water, killing the fungus, and increasing the stiffness exponentially, to a range where you would see traditional Wood Products. This takes about 10 minutes, to press and remove all the water and set it so it maintains the shape we are looking for. Reporter at the end of that, we are left with Something Like this . That is right. This material is used as a chair back. Reporter as far as cost, how does this compare to plywood . Chris this is being sold in a slightly lower price point than traditional products. Reporter so far, they have been able to make chairs and packaging materials from the plantbased mushrooms. But they see this is only the beginning of what they can do with fungus. It is a naturally occurring polymer. We think most of the best applications are replacing other synthetically derived polymers. We only have one planet. Although we are going to continue to grow and prosper as a people we want a material that can be up cycled or reused in the future. Emily you have bloombergs sam grobart. Bottom line coming up at the top of the hour, with Mark Crumpton in new york. How i have missed you. Mark we are going to be talking president ial politics 2016. Florida republican senator marco rubio is expected to formally announce his candidacy. Yesterday, it was democrat Hillary Clintons turn. What is big business going be looking for from these candidates, and for the rest of the field, going into next year . Also, what are their economic platforms like . Is this an extension of what we have seen the last seven years from president obama . As far as marco rubio is concerned, is there still blowback from the decision to kind of force forward the immigration overhaul package . We are going to take a look at those questions and more. We speak with the president of American Action for in a few minutes. Welcome back in san francisco. Emily we will see you soon. Up next four episodes from game of thrones have been leaked. A much is piracy really hurting hbo . Emily welcome back. The bwest byte is where we focus on one number that tells a whole lot. Cory johnson, our editor at large, here with us. Cory 3,170,0002370 times, game of thrones was illegally downloaded over the weekend. A couple of Companies Found the number of downloads was extreme this weekend. There are a lot of pirates in game of thrones, but these are the worst kind. Emily that is significant, given that hbo has 31,000 subscribers. 31 million subscribers. First of all, rory how big a blow is this, really, to hbo . Game offense is already the most part written in history, right . Rory what we saw was a 100 increase in piracy, caused by the leakage of the new shows. The Previous Year on year increase was only 10 . I think hbo is definitely on the right track with hbo now. Unfortunately, the leaking of the series resulted in a doubling of piracy. Emily hbo has famously said that piracy complements the viewership of its hit shows. What do you think . I actually do not think piracy hurts hbo whatsoever. Their Business Model is predicated on getting more people to subscribe to hbo. It is not like a movie studio where they need to sell tickets opening weekend. I need people to pay every month. I do not see people dropping their hbo subscription to watch a few pirated leaks. If anything, it exposes the new season to the very people who might buy a subscription to watch the rest of the season. Emily what has to be done to stop piracy . Can it be stopped or is it an evil that will always exist to some extent, a Necessary Evil . Rory i will always exist. I think hbo hasnt Excellent Initiative has an Excellent Initiative to reduce heresy. Most people want to pay a price for a good product. Those folks were using popcorn time to do peertopeer downloads. We have their ip addresses. We can track their geolocations. In some countries, we can even get their names and addresses from the isps. There is one site offering a legitimate, valuable service. On the other side, prosecuting those who refuse to pay. Cory do you pay, emily . Emily yes i am a paying customer. But i found a way to watch it early, because i cannot stay up until 10 00 at night. There is an hbo sd channel where you can watch the east coast feed. Cory did you like it . Emily i thought it was great. I cannot wait to see episode two. Cory the cast members, it is amazing how little tech is in their lives. Interesting people. Emily watching and as steve these days is quite painful, given how amazing the shooting is watching in sd these days is quite painful, given how amazing the shooting is. Thanks for watching. From our studios in new york city, this is charlie rose. Charlie phil knight is here. He was the first ever Deputy Director of the [indiscernible] his new book is a guide for approaching tough decisions in the digital age of data overload. It is called the head game. I cannot imagine who gave it that title. I am pleased to have philip