Community and the broader world. This is coming as the rift widens between the tech elite in San Francisco and everyday residents. We have talked about protest against google buses. Rocks have been thrown, windows broken. Rising real estate prices. This gets what he said. In a letter to the wall street journal, he wrote that writing from the epicenter of aggressive thought, i would call attention zi the parallels of na germany to the parallels of the americannt to the progressive for. I am being demonized, he says. In the not sierra, it was racial. Now it is class. They have distanced themselves from his comments. They say they were shocked by his views and do not agree. This is also prompted outrage from many in the tech community. Mark andreessen wrote and said [beep]one of the leading in the state. Tell us about him. He is one of the most successful venture capitalist in the industry. He was one of the founding members of a group that led one of the most successful investment. They were one of the most successful funds. They had an astounding 3200 return. Had similar returns that returned many times their investors money. I was led in large part by investors. They ran graphics. Money, all lot of the way up to and into the. Com bubble. Out like this . N this he write a lot of letters to the editor . Certainly nothing like this. This was a stupid comment. Youll find a lot of agreement with that. It is unusual to hear from him. It is usual to hear from him with a strong point of view, making a case that might not be popular. You can imagine how that could serve. In this format, i do not think we have seen it like this. I want to bring in a panel of experts. We are joined from San Francisco. We have phil bronstein, the former chronicle editor. I want to start with you. Have you ever heard anything like this coming from the tech elite . It depends on what they say privately. Maybe i have. There is an informal thesis about the bay. Hitler loses. You have heard them say this privately . There is a lot of anger and hyperbole. Mugging shuttle buses does not seem like that smart of a thing to do either. People are upset. We have talked on her show before about the fact that gentrification battles there is inequality of wealth that goes back i have been here since 1970. They were happening then. That was when the Gay Community was expanding and moving into areas that traditionally bluecollar africanamerican families were living in. They work in question out. This is not anything new. I do think that he attacked the chronicle. That is my old newspaper. He said that every word was anticapitalist. That is a little ridiculous, i have to say. The chronicle basically covers opera openings and ballet openings. They have wealthy patrons. Base of the subscriptions for the San Francisco chronicle probably comes prominently from the upper classes of San Francisco. Gentrification does not always have to mean the former resident having less money. Sometimes it can be beneficial to them. Is San Francisco having a problem the way that it has been dealing with this issue . Paul, i want to bring you in. What is your take . The comments are they are contemptible and stupid. Take your pick. What is happening with San Francisco with the elimination of antisemitism is beyond words. Its good that outoftheway. Going beyond that, this is a kind of eminent he is of the older guard. He wants to zig when other people that. He has always been fond of rattling things to get people to Pay Attention to what he is doing. The reality is. He has been out of the venture industry for 20 years. He wishes people would Pay Attention to him. He is rattling on about things that should be he should be vilified for saying. He has issues with respect to his relationship with the people who have made him best known around the world. They are entrepreneurs and the newly moneyed classes. Everywhere this is happening, including San Francisco a decade ago, this has been a tense and difficult thing. High propertyh prices. It will never get easier to live in a place like this. Lets talk about preppy. Home prices have drive risen 50 . We do not have all of the data for every year. Based on what we can find, 25,000 new residents came to San Francisco between 2010 and 2012. What can the city of . The nature of San Francisco has changed a lot. There is the Housing Stock that has changed a lot. The whole area south of the 101, near the at t park, they build all these highrises. Most people more people live there than anywhere else. These are highrises for people who are making money. Young urban professionals. Add to that the type of Technology Work in the business angle. The type of work that is happening in technology is more urban. It is more based on talk of things like media. It is less about that were initially making their hay out of. That is not the nature of what technology is today. That kind of manufacturing has moved offshore. The need to be in a suburban and firemen in Silicon Valley is no longer there. That is one of the reasons that you see the change in technology. The change in business there has been a surge of social marketing and networking. It has pulled johnson to the urban area. That has led to a lot of this angst about what it means to be wealthy. What it means to turn wealthy. As an agent part of american history. Phil, how would you say the city has responded . Has the city done enough . There are not enough new places. The city has not done enough. There has been a lot of talk. This may be the beating up of the google shuttle buses maybe that has called attention to this issue of low Income Housing. Challenge the city of San Francisco. I do not think it is an impossible challenge. Can you keep your altar highaltitude tax people people you rely on for not just the symphony and opera, but for subsidizing other things. The center for investigative reporting is a nonprofit. We need these people to support investigative reporting. Can you keep those people in high taxpaying and build low Income Housing . There so many environmental issues. I do not think theres a barrier to it. There are challenges. The mayor of San Francisco is saying that this is part of the solution. Build more low Income Housing. I think that that is possible. If the city can do both of those things, it can avoid becoming like the potemkin village. Paul, we will continue this conversation after the break. Thank you. Welcome back. Im emily chang. Tom perkins, cofounder of Kleiner Perkins has ignited eight higher storm of controversy after comparing the treatment of the richest one percent in america to the treatment of jews and not see germany. We are back with paul and phil bronstein. Phil is the former editor of the San Francisco chronicle. And cory johnson is our editor at large. We are spoken further about the comments. He gave us additional color on why he said what he said. He added that his late partner fled from austria. Do not imagine that the unimaginable cannot become real, both positively and negatively. Paul, does anything justify what he said . No. That last homages insane. That is a wacko stuff. Some of my best friends were fought against hitler. Therefore, everything that i say needs to be filtered through that so i get a free pass . It is ludicrous. It is contemptible. If i were kleiner, who quite andtly came out early dismissed the comments and said they do not represent the views of Kleiner Perkins if i were them, i would take it another step. They should have taken his name off of the door. He no longer is there. There is no reason for them to be called Kleiner Perkins. This is a great opportunity to cut all ties. He is digging himself in deeper in deeper. Phil, you mentioned you think we are overreacting. With all due respect, why are we still talking about this . You heard the comments characterized as ludicrous. And worse. Why are we still talking about it . Doesnt reflect the chasm that exists . The inequality and the wealth gap . I do not think anybody is saying there is no problem. It has sparked a discussion. What is the responsibility of Technology Companies . What is the responsibility of ceos versus employees . That is the question to ask tom perkins. Yes, there has been a discussion again i run a nonprofit. We look at Silicon Valley and the wealthy people there. They help us do investigator reporting. Ife reality is that you talk to people in San Francisco who are working at facebook and making a lot of money, they do not consider themselves making a lot of money. They look at their friends and there is a sliding scale of are you wealthy or not . One of your correspondents said there is a definition of wealth and what it means. Theres an impact that has on society. The question for the venture firms and tech firms that are doing so well is, what is your social responsibility . What is your responsibility in the valley where he said . That is the question that we ought to be asking. That is the conversation we all cap. I think 99. 9 of people would agree that tom perkinss comments were extreme and unwarranted. But a lot of people would say there is an issue. Buses are getting rocks are getting thrown a buses. What do you have to say . Why are we still talking about this . It gives us a chance to talk about income inequality. We do not often hear from the one percent defending themselves. We would hope that we hope they could do it more eloquently. Dont you think that maybe he accomplished something and say what he said . It was provocative, but it provoked us to talk about it. You have been on the show and we have been talking about this for weeks. And we should. Not that i do love seeing you, but we are we are again. The Business Impact is an important thing. Increasingly, the economy is reflecting the Economic Activity of the one percent. Wealthier people are driving the economy. The income inequality actually creates great risk for the economy. If there is a failure, it is most felt by the people who can afford to stop spending. That hurts the overall economy. That was one of the causes of the great depression. It is an increasing risk rainout. Heres the solution. Valleys a rebel in the his books basically say a small group of people make the lands of dollars off of your data. How about if you recharge for our data to be used . He claims that that will save the middle class in the united states. Micropayments of the use of our data. I have no idea that is a viable solution or not. But it is an interesting thought. Paul, i went to quebec in here. Obviously, we are still talking about this. We all agree that there is something to discuss. Where does this go . I think that this is all, lets take the whole guy whose name starts with p out of this. Look at the attention being paid to the new book about this new machine age and what is happening with the labor structure of society. The disappearance of the middle class. There a great conversation to be had. We are having it. Leaving aside this particular catalyst. Were talking about what we want in terms of how we want to structure the way we live and work and succeed in society. The consequences of having so much wealth accrued into a relatively small group of people who happen to live in a particular Geographic Area that is a conversation that can be had without having this firebreathing nonsense. And philedrosky bronstein and cory johnson, thank you all. Im sure this will not be the end. Still ahead, comcast wants to transform how you watch the winter Olympic Games by bringing Digital Content to the big screen. That is next. Welcome back. Comcast is taking the latest step in the tv industrys evolution to become alive and digital. For the First Time Since subscribers have used the latest set top box, they will be able to access content that was once digital only. Joining us now is sam schwartz, their chief Business Development officer. He led the team that developed this new set top box. Lets start with the grammys. A were last night. This is one of the few live events that people will not cut the cord for. You cannot get anywhere else. What are you doing to prevent cord cutting . Biggests one of the moments in Television History in london. One of the mostwatched events was the london olympics. We are turning it up a notch for sochi. For london, it was not about the television set. There was a lot of content that was on the mobile platforms and the web. Were doing even more of that for sochi. When you think about how many hours of events there are more than 1000 hours of events at the olympics. Only about 500 of them can be broadcast on traditional tv. Nbc has an app called the nbc live extra app. It features every event available streaming to your tablet. The news from comcast is that we are going to make that available on our platform. You can watch it on tv . Every minute will be available to watch. When you decided to tape delay a number of events, that was very controversial. Some people were pretty pissed off about it. Is this a result of some of the lessons you learned . We are taking it one olympics at a time. We learned a lot from london. We learned that when people have available the live content as it happens, and actually adds to the ratings later in the day. It does not take away. We think it is additive. We have made the distinction that every event will be available as it is played in sochi. Lets talk about sochi. What will we see life . Live . Inon the comcast platform, addition to the networks of nbc, which will feature content all day long we will take the nbc live extra app and move it to our platform. How many people have the settops . More than one million now. We are rolling out in markets. That is not many compared to europe. Not everybody. 2014 will be a big year for us. Ok. We are making this available on our platform. Theres also video on demand is available for subscribers. They can watch replays. In terms of lead content, we will have every single event available as it happens. Coming more about the x1 in general. The olympic sorry special event. There has been a lot of discussion about whether it is worth covering. Yes. Olympics aside, what else . We are using it as a way to push innovation for the company. There is a lot that we did for london that brought and broadened not just for the olympics, buffer between do. One thing is that people are trying to figure out how to login. If you are in your home, we can tell that you are a customer and we automatically log you in. You do not have to have credentials anymore to get access to all of that content on your ipad. We will broaden that capability across all of our platforms. You are also experimenting with instant video on demand. What is that . We will have that in a subset of country. If you are a few minutes late to watch a sporting event on the you can start over from the beginning of that show. You do not have to wait until it is over. At any time during the airing of that broadcast, you can join from the beginning to catch the event. I will be watching the olympics. Sam schwartz, comcast chief Business Development officer. Thank you very much. It is 26 past the hour, temper on the markets. Lets get straight to new york and mark crumpton. Thank you so much. Lets get you caught up on the markets right now. Stocks are heading for the biggest threeday drop since june. Led by losses in the emerging markets. Earnings forecast they topped estimates. Royal caribbean shares are surging after it posted a fourthquarter profit compared to a loss a year ago. This is the Early Edition of bloomberg west. You can also catch us at our later time. Now for your top headlines. Ukraine may be on the verge of a state emergency. The Justice Minister is considering declaring one after a government protester briefly took control of the Justice Department headquarters. The state of emergency would allow their embattled president to expand his powers. A new acquisition in europe. They are buying a dutch broadband provider for 6. 7 billion. A premium over the friday closing price. The move. Globals dominance. And prices are down for super bowl tickets. It may be the lowest since 2002. There are concerns about the weather in new york. The average price to watch the broncos and the seahawks is just over 2000. Apple earnings are out after the bell. How good of a holiday was it . Joining us from new york is our editoratlarge, cory johnson. What you expected a . Were above the sales projections. We feel pretty comfortable with our numbers. I think it will be a strong quarter. The profit cycle will turn positive this quarter. Could bends like it the first profit in more than one year. Apple has no new products coming that we know up. How big of a problem is that . Fiscal 14, wet have characterized as the year of innovation. There will be an iwatch and bigger iphones. We will have an ipad pro. There is a lot in the pipeline. This is been a home run. We will see this and the results tonight. The ipod air has done very well. Cory, will we be looking at . There will be the expectation of profit growth. We have not seen im quite some time. There is the expectation of that. One thing is to try to tweeze out what we can of success from china mobile. Already hadbers iphones. Most of them are prepaid. Theyre not likely to be iphone customers. Business, it will be interesting to see what fraction traction they got. It will also be interesting to look at the ipad business. That did not grow at all yearoveryear in the last order. We might expect some growth with a new device as well. I will be an interesting one to see. Brian, wh