and you will meet technology that promises to build you custom clothing. you don't even have to leave your home. first, let's get headlines from carol massar. >> cbs reporting second-quarter profit topping estimates. doubling the buyback and boosting the cash dividend as it looks to counter a decline in revenue in operating income. last season, cbs had the largest ratings decline of the four big u.s. networks. newscorps reporting losses as it completes its first year as a standalone company. the "wall street journal" continues to face difficulties, with sales falling 6%. zynga out with earnings after the closing bell, posting second-quarter results at the low end of the forecasts. zynga stock is falling in after-hours trading. those are the top headlines at this hour. >> thanks, carol massar. shares of zynga down 6.5%. we turn to the gaming industry. i am joined by "bloomberg west" editor at large cory johnson. also, a guest from idg. and from bloomberg intelligence, providing context in a variety of industries. what is going on with zynga that is different from other companies? >> the difference between zynga and its peers is that zynga started as a gaming platform on facebook. of course, the challenge for zynga has been how to manage the shift to mobile devices. based on numbers we have seen today, there is no clear sign the company knows how to get user growth back up on mobile devices. >> cory johnson, is this all about the inability to get mobile gamers to use the games? >> that's where they need to have success. that is where it is going. it is an arena where no one is really dominant. you don't have great success from activision and the like. it is clearly where the focus is. zynga saying today that 45% of r&d, half of r&d spending will be on new games. they are clearly focused in this mobile arena. >> would you invest in zynga? >> you know, currently with zynga's performance, what we see with acquisitions, products, it's hard to make an investment case. when you think about what would really push zynga out of what it has fallen into, it is an outsized hit game. you are dealing with a company where the dna is optimization, but you will never be able to find a new, exciting product category that is what they need to get to the next level. >> what do you mean by dna optimization? >> you are dealing with a company where the ceo is quoted to have said, "i don't care about finding new games, this copy what other people do and do it slightly better." >> cory johnson, the ceo of zynga, mark pincus, he's been, i don't want to say games, but he has been doing something with the money at zynga that might lend the company a credibility problem, no? >> i called attention to it before the ipo, but no one seemed to care at the time. they took money from future period by making a legal adjustment, deciding they would count the money now. it is a legal adjustment. if you understood the one paragraph of the filing that described that, you could see what they are doing. the problem is, when the future came, the money was not there anymore. so they created a financial structure that was going to hit an air pocket nine months after the ipo or so. it certainly did that. the inability to replicate the hits of the past, whether they were copied or organically created, the inability to create that success really hurt the company because they took the accounting adjustment to really create an air pocket in the revenues. >> the chief executive at the time, mark pincus, in that air pocket managed to make $200 million out of the sale of his stock. what does he need to do in this mobile arena? you mentioned facebook is being the original platform to play the zynga games. why do you need a separate platform if you have a mobile device -- don't people download apps? isn't this something you have a relationship with? >> that is the trap zynga falls into. app usage is almost 80% of total mobile usage, very different from when zynga started. zynga needs to adapt and have the smartphone app type of games. that's the usage shift their dealing with, and they have not been able to get to it yet. >> tyler, what do you think about selling the company? would anybody want to buy zynga now? >> the most valuable asset zynga has is its user base. so maybe some of the other casual gaming players. the issue is there's not much other companies cannot get directly for user acquisition, so it's a tough investment case. >> cory johnson, what happens to technology such as the kind used by zynga? it is relatively simple to reproduce? >> it is pretty difficult. one of the things we know about mobile advertising, some of the most successful advertising is getting people to buy other apps. the most successful pushing other people to buy apps and it downloads. so zynga should know a lot about the gamers, people who play games on their phones. that is a valuable market. we have seen statistics about people who play games on their phones. an enormous number of people. he's the kind of guy who should be able to find it and manage the creative process to make it. what he did at microsoft is fairly impressive. he's the kind of guy you want leading such an effort, but fundamentally they have to find a great game, whether it is a tiger woods golf or a non-brand named angry tetris birds pong combination. we are onto something there. >> angry birds pong tetris. >> i see it in our future. >> i think the clear competitor is king. king has done very well with candy crush. the worrying thing is king has 660 employees and zynga has almost 2000. their revenue and user base is larger. that does not make a good comparison for zynga. there are competitors out there who might be able to do very well. so it is all about producing hits. >> that is the point, right? that you never know where the next success is. to do all this acquisition and see candy crush appear as a massive -- >> i know you are just waiting to go off and play a game of kim kardashian. isn't it all about celebrities? >> celebrities can help, but not necessarily. the kim kardashian game on the iphone is supposed to be a lot of fun to play, not only that it has kim's name attached to it. >> is that the key to success? >> it's all about the gameplay. the brand can only help to a certain extent. people spending day by day, it comes down to the game. >> you each get one pick. favorite online game? >> for me, candy crush. >> cory johnson, how about you? >> clash of clans, all the rage. >> tyler, what is your favorite? >> dota 2. pc gaming is seriously underappreciated. we see a lot of opportunities there. >> we want to thank you all very much. coming up, we will stay with gaming, but where does one go to get an undergraduate degree in gaming? we talk to one of the few schools in the united states where you can study game design. a b.a. in making games. that is next. ♪ >> this is "taking stock" on bloomberg. how can you get into the videogame industry? how about a bona fide undergraduate program devoted to the videogame design world? tracy fullerton joins us live from los angeles. start by explaining to people how the actual gaming curriculum at usc was put together? >> actually, it began with a really generous gift from electronic arts. as the medium of games is coming into its own, they wanted to give back. there are so many young people who want to get into the industry, and they came to us with this gift and a lot of insight, to help us set up this program. >> you are an experimental game designer. you have written books. tell us about your background. >> i have been a game designer for just over 15 years now, and i worked on interactive television games, multiplayer games, some of the earliest casual games. you name it, i have probably made a game about it. >> you made a game on "the weakest link" on nbc. what makes a good game? >> games are things that challenge us intellectually and allow us to be creative, to test ourselves, to connect with other people, and great games add to our lives in this way, enrich our lives. we have all had an experience with some game or another, even people who are not gamers, when i push then it turns out there is a game they played that they loved, that changed their life in some way. >> you helped found a company called spiderdance. one of the games that they helped create was "history iq." what are some misconceptions for people who don't know a lot about the gaming industry, about game designers? >> one misconception is that they play games all day. we work for a hard on everything it takes, including programming, visual design, a psychology of players, business management, audio, there's so much that goes into a game. one of the myths is that we sit around and play games. we work very hard. the skills we are teaching kids in game design are really important 21st century skills. they learn to code, to work in teams, visual design, they learn leadership and entrepreneurism, that can leave them not only into games, but many other careers in and around digital media and technology. >> tell us a little bit about the actual scale of the program, how many students, how many professors, how many teachers and so on -- >> there is about 300 students. we are a multidisciplinary program that spans the school of cinematic arts, interactive media and games division, and the school of engineering and computer science division. we have degrees at both the undergraduate and graduate level, so the 300 students work in interdisciplinary teams and work collaboratively with students across the school, in business, music, animation, and many other fields, to put together the really amazing student games they have made. >> the graduates of the program, tell us what happens to some of them. >> you know, many of them go right into industry, and that is great. their parents are really happy about that. but recently we have been seeing many of the graduates strike out on their own and start their own companies. for example, some of the most famous graduates of our program formed a company called "thatgamecompany" which created "journey," game of the year in 2013. so we see a lot of students interested in doing this. we started an entrepreneurial track so they can create a company that allows them to take the projects out as commercial games in the future. >> quickly, does tracy fullerton have a favorite game? [laughter] >> you know, i have so many favorite games, when people ask me it is hard to choose. it's almost always the game i am playing right now. >> which is? >> one of my favorites is called "zombies, run." a game you play while you are out running. zombies in a post-apocalyptic world are chasing you while you are running, and you have to help the survivors get resources and keep on surviving. >> we hope you outrun those zombies. [laughter] tracy fullerton, head of the university of southern california's game innovation lab. next, the business relationship between india and the united states. this is "taking stock" on bloomberg. ♪ >> this is "taking stock" on bloomberg. i am pimm fox. russia retaliates against the u.s., imposing a ban on food imports from the u.s. and europe. here to discuss the ban and india's relationship with the u.s. is karan chanana, chief executive of amira nature foods, a global provider of packaged specialty rice. thanks for being here. >> thank you. >> let's talk about this ban the russian government has imposed on imported food products from the u.s. and western nations. have you ever heard of using food as a retaliatory tool? >> i think a better thought through mechanism would have suited them more, but knowing what the situation is, they would have definitely thought about it. this is giving opportunities to some emerging markets and brands to get a foothold into the russian market, and maybe level the playing field for some of the unknown brands and emerging brands. >> the emerging brands could take advantage of this opportunity, move into this? but there are all kinds of laws and regulations about what can and cannot be imported with and without tariffs. india, for example, having to do with the world trade organization, has put on hold their membership in the wto for certain reasons. i wonder if you can explain what is going on? >> india's situation is unique. this is the biggest opportunity for the west to sensitize itself to 1.3 billion people on the planet in india. india has 1.2 billion people, two thirds of which live off the land. off of farming. meaning the gdp contribution per capita of those individuals is based on that. so if the world will come to recognize that, and india has to be allowed to provide food for their own people. >> this has to do with stockpiling food. you have a situation where the government pays rice farmers more than the market rate in order to encourage them to grow rice, because then they stockpile some of that rice in order to forestall any future food disaster or food shortages. >> the way it works, rice is not a commodity. it is a staple that provides nearly a quarter of the calorific value to the population on the planet. you cannot traded on an exchange or buy it hedged. it is all physical. the government of india needs to provide for security. it is less to do with stockpiling and more with sustaining food security. as a result, there is a mechanism in place in india and most countries, actually. in the west to collect intervention price. if the price is below a certain threshold, the government supports. it is not unique in india. the same is done in thailand, china, and emerging markets. unlike the west, emerging markets do not have a social security mechanism. this is the only tool available to the government for equitable distribution of income. at the same time, it provides a double benefit of feeding the population. today, we have a human rights crisis or a crisis in a lot of places that do not do this. can the world risk 1.3 billion people not having food security? >> i'm glad you mentioned the indian government, because there is a newly, relatively newly elected government in india. i wonder if you could tell me from a business perspective what this means for you. >> as a matter of fact, i said earlier, india has changed. we have a young population. 100 million people came into the working age over the last five years. india has given a clear mandate to a single government after nearly 30 years. that has brought about a very clear, strong government with a clear view and an eye on infrastructure development, which is a big opportunity to the west. sensitize yourself to india, and then ask for market access. imagine all the foreign direct investment and retail. i think it would have more legs to stand on if the western powers said, you want to secure food for your people, we will help you do that. work out a mechanism where big retailers like walmart get access to the indian consumer as food security. >> we have to leave it there. thank you very much, karan chanana, chief executive of amira nature foods. ♪ >> this is "taking stock" on bloomberg. i am pimm fox. -- targeted air strikes to protect american personnel and a humanitarian effort to help save thousands of iraqi civilians who are trapped in a mountain without food and water and facing almost certain death. let me explain the actions we are taking and why. first, i said in june that the isil began anp intense across iraq, that the united states would be prepared to take targeted military action in iraq if and when we determined the situation required it. these terrorists have continued to move across iraq, to where american diplomats and civilians serve at her consulate and american military personnel advise iraqi forces. to stop the advance, i have directed our military to take targeted strikes against isil military convoys should they moved toward the city. stay vigilant and take action if these terrorist forces threaten our personnel or facilities anywhere in iraq. urgentalso providing assistance to the iraqi government and kurdish forces so they can more effectively fight against isil. second, at the request of the iraqi government, we have begun actions to help save iraqi civilians stranded. as isil has marched across iraq, it has waged a vicious andand against iraqis minorities including christians. beenntless iraqs have displaced. chilling reports indicate mass executions and enslaving women. yazidi women,, men and children have fled for their lives in the thousands. they are now hiding high up on the mountain with little but the clothes on their backs. they are without food, without water. people are starving. children are dying of thirst. forces belowil have called for the destruction of the entire people, which would constitute genocide. these innocent families are faced with a horrible choice. this end the mountain and the -- descend the mountain and be slaughtered or die of thirst and hunger. andunited states cannot should not intervene every time there is a crisis. let me be clear about why we must act. when we face a situation like we do on that mountain with innocent people facing the prospect of violence on a horrific scale, when we have a mandate to help -- in this case a request from the iraqi government -- and when we have the capabilities to help avert a massacre, i believe the united states of america cannot turn a blind eye. we can act to prevent a potential act of genocide. that is what we are doing on that mountain. i have authorized targeted airstrikes if necessary to help forces in iraq as they help to break the siege and protect the civilians trapped. american aircraft have begun conducting humanitarian airdrops to help these desperate people survive. earlier this week, one iraqi in the world cried, there is no one coming to help. today, america is coming to help. we are also consulting with other countries and the united nations who have called for action to address this humanitarian crisis. many of you are rightly concerned about any american military action in iraq, even limited strikes like these. i understand that. iran for this office in part to end our war in iraq. that is what we have done. i will not allow the united states to be dragged into another war in iraq. asn as we support iraqi's they take the fight to these terrorists, american combat troops will not be returning to fight in iraq. there is no american military solution to the crisis in iraq. the only lasting solution is reconciliation among iraqi communities. however, we can and should support moderate forces who can bring stability to iraq. even as we carry out these two missions, we will continue to pursue a broader strategy that allows iraq to confront this crisis. leaders come together and forge a new government that represents the legitimate interests of all iraqis. named a new president, a new speaker of parliament. they are seeking consensus on a new prime minister. this is the progress that needs to continue to reverse the momentum of the terrorists who prey on iraq. once iraq has a new government, the united states will work with it and other countries in the region to provide increased support to deal with this humanitarian crisis. ane of iraq's neighbors have interest in this terrible suffering or instability. we will continue to help refugees get the shelter, food and water they need and help iraq pushback against isil. the american advisers i ordered to iraq will continue to assess what more we can do to help train, advise and support iraq he forces. consulted congress today, we will continue to do so going forward. americans, the world is confronted by many challenges. while america has never been able to right every wrong, america has made the world a more secure and prosperous place. our leadership is necessary to underwrite the global security and prosperity that our children and grandchildren will depend on. we do so by adhering to a set of core principles. we do whatever is necessary to protect our people. we support our allies when they are in danger. we lead coalitions of countries to help uphold international norms and strive to take true to the fundamental values that are common to human beings wherever they are. that is why people look to the united states of america to lead. that is why we do. let me close by assuring you that there is no decision i take more seriously than the use of military force. over the last several years, we have brought the vast majority of our troops home from iraq and afghanistan. i have been careful to resist calls to turn to our military because america has other tools in our arsenal. we can lead with the power of diplomacy, economy and ideals. the lives of american citizens are at risk, we will take action. that is my responsibility as commander-in-chief. when many thousands of innocent civilians are faced with danger and we have the capacity to do something about it, we will take action. that is our responsibility as americans. it is a hallmark of american leadership. that is who we are. tonight, we give thanks to our men and women in uniform, especially our brave pilots and crews, for protecting our fellow americans and saving the lives of so many men, women and children that they will never meet. they represent american leadership at its best. we should be proud of them and of our country's enduring commitment to uphold our own security and the dignity of our fellow human beings. i want to -- god bless our armed forces and god bless the united states of america. >> president obama reiterating some of the things he did just talk about. the authorization of military airstrikes, talking also about humanitarian drops to help out the ethnic group, and also saying that today america is coming to help and is acting to prevent any act of genocide with regard to those people. you can get more from our white house correspondent. >> that is right. what you heard today is the president that has struggled mightily over the integrity of his term over what the role of the u.s. military is on the international stage, what he outlined today is kind of dual track. the humanitarian aid which has already been dropped, and then the authorization of targeted strikes. an important point that he made is when he said, today america is coming to help. there have been questions, critics about america' in iraq. they are sending force their. i think there is no expectation that it will grow much further than this. roleis an expansion of any that the president wanted the u.s. to have in iraq. >> thank you very much indeed, phil mattingly. obama was talking just a short while ago. let's digest all this. have a look at what is going on at the moment. markets in doldrums currently. here is david ingles. >> markets were already falling, even before this. we are looking at four straight days of losses this week. energy prices, that is a one-day -- a spike does look up, but look at that, 97.50. take a look at brent for example. relatively smaller. we are not even above 106. if you look at the currency markets, that is where we are seeing more of this risk aversion. dollar-yann is now back below 102. consequenceseeing a -- if you take a look at the japanese market, a fall for the nikkei. looking at sterling, that is coming down as well. 168. we have broken below that eight week low. the lowest since june. take a look at aussie dollar. that one is taking a similar hit. there is your reaction right there. gold, yes or no? not really. 113.10.t -- i want to also show you treasuries. earlier on, before president obama spoke, we saw yields coming back up after a sharp drop yesterday. year,are we now, u.s. 10 239 basis points. the lowest since the summer of 2013. what is happening in japan is continuing to fall. you lend money to the japanese government for 10 years, that is what you get, 0.5% as far as these yields are concerned. let's check in on what is happening across the equity markets today. that is what asia looks like at this point in time. just a few things to keep in mind. we have economic data coming through today. gates,ne out of the current account deficits out of japan, a little bit larger. ¥400 billion basically. i will be back with more on what else is moving markets here. back to you. >> going to take a break. president obama talking, approving airstrikes, authorizing airstrikes to take place in northern iraq. approach the northern iraq you town. that is something which we will be looking at closely today. there is lots more. this is "on the move." ♪ >> whether you want a bigger chest or looser arms, we will do it. whatever makes you happy. penn want tomiles get into the shirt making business? >> i grew up with two sisters who got me into close. when i was working at goldman sachs, i needed a well tailored shirt. you learn how much people care about it when you are there. $150 or want to spend more on each shirt. me and my cofounder came up with the technology to solve that problem. shirts are just the beginning. we are going to do suits, pants, jeans, any part of your wardrobe should be custom to you at a reasonable price. >> how does the technology adapt to the changing shape of the individual? it depends on what time of day you take the measurements. what time of the year. if you have had a little bit of fun on vacation, you might not have the same physique that you have when you go back to work. >> definitely. unlike going to a taylor which is about a half-hour process, ours is five minutes. if you need to get remeasured, you are in and out before you know it. >> is there a minimum order? >> one shirt. , we willn't like it remake it for free or give you a full refund. >> what kind of shirts what i find in your closet? ilor shirts. right now i think i have seven or eight. i get experimented on a lot. >> how about for women? is there an opportunity to go into that market? >> definitely. we started with one product. women is a big market as well. >> money, how about raising money? >> we are in a startup accelerator in california. that process, we will start raising money very soon. >> as far as the combination of great fit but also the is onence with taylor's, exclusive to the other? a tailor is a personal thing. is this meant to complement that? >> i don't think we will ever really replace that, like a guy you go to. he knows you super well, hands you a scotch. for most people, that is not a realistic option of getting shirts. so we are bringing a lot of experience to the rest, democratizing. >> any chance we will have technology that can wash and fold the shirts as well? [laughter] >> maybe someday. >> thank you very much for joining me, the cofounder of mtailor. coming up, want to find out what mitt romney, p. diddy, and mariah carey have in common? find out next. ♪ >> this is "taking stock" on bloomberg. at age 16, andrea launched a catering company from her parents' home in long island. now she caters over 800 events a year. customers include billy joel, kevin spacey, and mitt romney. let's meet andrea. thanks so much for being here. >> thanks for having me. >> so you start when you are 16 years old. you decide to be a caterer. how did that come about? >> i was always passionate about entertaining. when i was a child, even though we had a modest budget, we always decorated the house beautifully on halloween. made everything thematic, and it kind of gave me a warm, fuzzy feeling inside and i became inspired to give that to others on a larger scale as an adult. >> but how do you go from being a 16-year-old with a dream to doing 800 events a year, including events for people such as mitt romney? >> i started a company when i was 16 called rent a waitress. i marketed my services to very wealthy people on the gold coast of long island who had private chefs and in-house staff. basically i worked with their chefs when they had an event that they could not handle in-house. i did that for a number of years. by the time i graduated college, i had about 500 clients on the north shore and 45 people that worked for me. at that point, i just went into full on catering and event planning. >> tell us about some of the events. give us an example. i'm supposed to ask you about a cirque du soleil party. >> they hired me for a number of years to do events at the roseland ballroom when they came into town. it was a party for 2000 people, and we had to come up with some really interesting tablescapes and food stations that coincided with things happening at the show or in the show. so we did that, and we gave them some really showstopping stations that people were impressed with. >> i am sure you have followed the fortunes of the food industry on television and in the media. it is now as much entertainment as the shows on broadway or in the movie theaters. >> absolutely. >> how have you been able to translate that excitement about food into the kinds of food you prepare for your guests? >> a lot of the types of food stations we do now are interactive food stations. so instead of just having a buffet where people come up and take from a bowl of food, there will always be a chef tender instead of a bartender, beside each station explaining each dish or preparing the dish in front of the guest and giving it out to them. so everything is more interactive. >> what kinds of things are being asked of you in terms of the food by the current guests? >> big trends, farm to table. everybody is eating healthier, cleaner. people don't want to see pasta, don't want to see bread, don't want to see but are. things like quinoa, organic chicken, cauliflower, brussels sprouts. >> kale, too? >> kale caesar salad is the new healthy first course entree. those are the things you are seeing. people have been more health-conscious in the last four or five years, but when it comes to entertaining that trend did not catch up until now. people are really starting to want to offer healthier foods, more vegetarian options on their menu than ever before. >> of course, celebrities and famous people such as mitt romney, that can add to a business. can you give us a story about celebrities and what they like? kevin spacey has been a customer, mariah carey -- >> we just did a party for kevin costner's movie premiere. it was a black-and-white party, so we came up with a black-and-white color scheme, did a fabulous black-and-white striped ravioli with heirloom tomato sauce. when i did an event for al gore years ago when he was running for president, he wanted sugar-free chocolate pudding and we had to go everywhere to get that for him with whipped cream. >> it kind of defeats the purpose a little. >> i know. >> ever had a situation where you had to talk a client out of something that they really wanted? you say, i have something better? >> billy joel, when we did his fourth of july party, he loves fried calamari. but he wanted these cherry peppers that came in a jar. i didn't want to use processed peppers, so i made them on my own and he loved them. >> tell us a little about the money involved in all this. if you source very specific things, that can get pretty pricey. >> it all depends upon the event. an event can range. a high-end event -- because i am not a catering facility, if you wanted a big event in your home we have to bring everything in. i am not just coordinating the food, but the whole production. the rentals, the china, flatware, glassware, music. >> and the table -- >> everything. people could spend north of half $1 million on an event. it all depends on the amount of people and the scope of the event. >> what about the scope of your business in terms of number of employees, sales -- what would you like to see? >> right now, when the economy dropped a few years ago we were hit hard, like everybody else. people throw events with discretionary income, so our sales dropped 60%. a lot of people in my industry had a very difficult time. i'm happy to report that our sales are way up now. we're projecting north of $5 million in sales this year, which is fabulous. we are happy with that. >> is there a place where you always wanted to cater an event that you look forward to doing in the future? >> i, you know what? i don't have a particular place or dream, but i am blessed where a new opportunity comes every day. >> thanks very much for spending time with us. thanks for "taking stock." i am pimm fox. good night. ♪

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