Written to the iranian government by senators unconstitutional. John kerry i do know this letter was absolutely calculated directly to interfere with these negotiations. It specifically inserts itself directly to the leader of another country saying dont negotiate with these guys because we are going to change this. Cory the deadline for a deal with iran is at the end of the month. Lastminute campaigning in israel ahead of key elections tomorrow. Benjamin netanyahu is trailing in the polls. He says rivals will bend to the palestinians and failed to safeguard the country from iran. The centerleft leader says the public wants change. Procter gamble is one the sale or ipo of the beauty brand. People familiar with the deal says it is working with advisers but has not finalized the deal of which products would be spun off. Includes cover girl. It wants to exit a number of product lines where it is not a market leader. They have accepted a sweetened takeover officer from valley. Valleyiant. They will pay 11 billion in the deal. Valiant was to get its hands on drugs, including a potential blockbuster still awaiting fda approval for additional uses. The alibaba chairman is in germany at a conference talking about improving relations with europes tech community. He says the day is coming when women will assume more power. Jack ma i strongly believe in the future, we will have a lot of Women Leaders because in the future people not only focus on muscle and power, they focus on wisdom. They focus on caring and response ability. Cory ma also showed off a product alibaba is working on that would allow people to make mobile payments using facial recognition technology. Blackberry is reentering the tablet market hoping its reputation for security will turn the new product into a hit. Blackberry is working with ibm and samsung. Security software is the focus. The tablet is equipped with a Security Guard with encryption along with software that allows a user to separate personal and work apps. The c. B. O. Is at the conference in hanover, germany. In toronto, the Vice President of security compass let me start with you. Is it possible to have a spy proof device of any kind . No, you cannot say anything is spy proof. What you can do is do your best to build and security features and build security and from the start so it is as spy proof as possible. More secure than other devices. Cory interesting. Do you maintain this product is spy proof . In what way is it more secure and how can you measure such a thing . In fact, we do. When the goal is security, if you want to get security in peoples hands, it has to be as visible as possible. From that angle, it is always hard to prove. We have certifications and or ongoing and are undergoing evaluations. Achieving those securities like the nato restricted grade gives us great confidence it is as spy proof as possible. Cory when petering about multifactor identification and what happens with the network about hiding the identity of the device. What is the secret of how it works . One is we are not relying on the security of the device. We are relying on the security of the external hardware token, a smartcard chip. Longterm secrets like private keys are embedded in the card and never leave and are not exposed to the device at all. We use that chip which is inside a card that we can access from the application to authenticate things like encryption and so forth. Cory tell me about this chip. What is it about it that is able to do realtime calculations and creating new personal identification keys all the time . Yes, absolutely. That is what this chip does. Like the smartcard chips on credit cards or some cards sim cards, but much more secure. They are practically tamperproof and nonhackable and act like a mini crypto computer that do encryptions realtime as you need it. Cory we have seen this approach before. Typically a personal identification key is written once and sticks with the vice device forever. Is this a different approach . Go ahead. I think there is Something Different about this. As he mentioned, where it is being stored on the device and the fact there is physical separation does make a difference in terms of how exploitable it is. There is a difference from your standard device. Cory i also wonder if the market share or lack thereof for blackberry sort of makes the device more secure. Why would hackers but a lot of time into going after something that has less than. 5 of market share . That is a valid point. When you hear about Public Disclosures of Security Issues they are typically done by security researchers. Security researchers are volunteering time or paid to find Security Issues in hardware or software. They will typically spend their time focused on things that do have a lot of market share. From a mobile apps perspective they would be spending a lot of time on ios and android devices. It is hard to say without the same scrutiny what level of security another platform would have. Cory go ahead. Our products are typically in the hands of the leaders of state, prime ministers chancellors, president s. Maybe the market is a niche, but these individuals are highly important individuals. We are seeking to protect their information. Cory we have seen the n. S. A. Infamously thanks to Edward Snowden that they hacked into Angela Merkels phone and we re able to take the metadata from her phone calls. Is that your first sales call to call Angela Merkel and say you have to have one of these tablets . She does have one of our products. She has a secure blackberry. Cory it is curious to me that your software has developed is developed in germany and that library which has a reputation for security going back a decade had to acquire your company to get the software. What is it about the development of the software in germany that was better than anything blackberry could concoct in canada . The reputation for my company is based on encrypting voice. Blackberry is famous for encrypting data. Library has a huge blackberry has a huge pedigree in securing email. That his wife is to get a perfect fits together that is why it fits together perfectly. It is a niche market. Blackberry is still addressing larger enterprise operations. Cory when you look back at what happened with the playbook, what makes this better . I know you say you will shift ship 10,000. How many do you think you will sell . Was the playbook fly from a security perspective . I dont think so. I think this is a project we brought into the marriage. We have this partnership with samsung and other partners to make the secure tablet for government customers long before we got acquired by blackberry. With the partnership between blackberry and samsung this fits well into the overall strategy blackberry has. Moving to services, maintaining our own hardware with highsecurity applications and offering other platforms. I think that is the key here. We are not trying to argue who is making the best tablet. We are just trying to offer our service on whatever tablet you want. Cory interesting stuff and interesting approach from samsung and blackberry. Thank you both. We appreciate it. Bloomberg west will be right back. Cory im cory johnson. This is bloomberg west. Here are top headlines. From her durst has agreed to be extradited to face murder charges. He was arrested in new orleans over the weekend. The h. B. O. Documentary showed him whispering he killed them all. He was acquitted for killing a neighbor in texas on a selfdefense claim and questioned but never charged in the 1982 disappearance of his life. Wife. Angela merkel says the e. U. Will consider more sanctions against russia if there is a violation of the ceasefire in ukraine. She met with ukraines president in berlin today. Petro poroshenko accuses rebels of violating the truce saying forces were attacked a dozen times last night alone. On a different note, who can knock off the wildcats . According to the oddsmakers in vegas, wisconsin has the best shot. The wildcats would only be a 5. 5 favorite compared to do. Kentucky is going for the first undefeated season since indiana pulled it off in 1976. It is the annual interactive festival with the top minds of technology in austin, texas. This year, the social media app is getting a lot of attention and so are protests over the highly anticipated robot by google. Our Technology Reporter is there covering it for us. Going to the food trucks with the startup geeks. I may texas gal, so im glad to be here. Cory how is the barbecue . Great. Cory they are trying to glom onto the microbrews, music and have acute barbecue. There are a lot of craft brews a lot of mexican, a lot of margaritas. It has been a good time here for the Tech Companies. Cory we were having margaritas on the set to get ready for your appearance this morning. The task of being a reporter at an event that is so spread out where you want to figure out what is bubbling up while youre there but you dont really know is not unlike investors showing up at an investor conference. How do you approach the task of figuring out what is going on . There is a lot of noise. I have boiled it down to some things themes. Weve seen a lot about connected devices. There is a focus on women and diversity. You boil it down to your themes. Ive taken a lot of meetings offcampus. There are wonderful folks in from the west coast i dont get to see on the east coast. A lot of coffee, drinks, and having a good time. Eric schmidt is one of the keynotes. You can see the folks starting to line up behind me. He is expected to talk on another theme that was a continuation from last year, which is privacy. You saw snowden last year talk about encryption and how the onus is on Tech Companies to protect users. We may hear more of that today. Cory lets start with Edward Snowden. Last year, he spoke from russia by satellite where he is on the lam basically. He spoke again this year. Maybe the shock value was lost. He did not get so much attention. What did he have to say . Hes still hammering home the idea the government should be staying out of our information and it is the Tech Companies who need to be the shield for users. If users are going to trust somebody with their information, it is on the Tech Companies to maintain that data for users. Cory in terms of connected home we have been hearing about it for the last 20 years. I am surprised that is a focus. A c. E. O. Did a keynote in the last couple of days this weekend talking about some of the challenges, saying some of the onus that now falls on home depots and retailers the need to educate your salespeople to tell consumers why these connected devices are so valuable. He was there with scott weiss who asked if connected homes is a normal thing or a nerd thing. He did say it is still for the nerds mostly because these devices do not talk to each other yet. It is the folks having to get the devices to talk to each other and build it out in their own homes. Than normal consumer is not there yet from a technological standpoint. Cory there is a company that was getting a lot of attention going in. Twitter kind of pulled up along pulled out the rug underneath them. This is a live conferencing app that would map on top of twitter followers. Twitter said not so much meer kat cannot have it for free. The c. E. O. Spoke to bloomberg yesterday and addressed it and said it might have been sooner than we expected, but we are focused on building out a social platform and continuing to do what we can without that information. Meerkat is still up and working. I have seen a lot of it at the conference with people showing what they are seeing in realtime. They are trying to work around this lockout from twitters user data. Cory we appreciate your time. Thank you very much. Bloomberg west will be right back. Cory i am cory johnson. This is bloomberg west. The videoconferencing system only a few month after shipping the first product in december have only sold to 500 company so far. The system, the apps, and hardware. The c. E. O. Joining us now. Theres clearly hardware involved. Show me how it works. The way highfive works as it gives companies a way to seamlessly join video calls wherever you are, weather in a physical room or from a mobile device like i5. You install the app. I will open my calendar. We have one of our coworkers in the office on a video call already. I will click on this link. You will see us jump directly into a video call. Jess is going to appear. We will be able to talk to her on the iphone. Wave to everybody at bloomberg and say hi. Cory she is in our office. She is in the room next to us. We set this up special for bloomberg. What is unique is the integration between the app and hardware device attached to a high five enabled television set. It works seamlessly. Is awkward for us to be talking to each other on a phone. This purple magically appears that allows me to swipe and hand the call off from the phone to the t. V. I will swipe and jess will move magically from my phone to the television set. We will be able to use the t. V. To interact with her. Cory talk about the dynamics in the industry. Cisco was huge in the business before. You have other competitors, traditional makers of the hardware. The sales of the hardware units have been falling and replaced by purely app based stuff. Let me say goodbye to jess an answer the question. Thank you. The thing that is interesting about this market is Companies Like cisco and polycom have largely served the highend of the market, fortune 500 c. E. O. s, executives, where the money is today. The reason why is because those customers are the only ones that can afford the complexity and cost of those systems which are too hard to use. What is unique about highfive is we have taken that technology with a comparable experience and quality, better functionality, and made it available to companies of any size to put in every room at 1 20 of the cost. The softwareonly solutions are a big market. Companies are delivering softwareonly solutions. Would it unique what is unique is todays workforce is demanding to work from anywhere. That is why the integrated solution gives companies a way to put video everywhere. There are 25 million rooms in the world. Only one million are wired for video. Over the next five years, you will see all 25 million wired for video. Cory thank you. Bloomberg west will be right back. Cory you are watching bloomberg west we focus on innovation technology, and future of business. Im cory johnson. Russian president Vladimir Putin makes his first appearance in 11 days. He held talks with his counterpart from curious dan. Here they are today. The president of russia is not only walking, he drives his guest around. He even drives ready fast, so as they say in russian, dont get ahead of yourself. It would be boring without gossip. Just boring. Cory it was proveds longest disappearance from public view in years. U. S. Factory production fell, a signal of muted Economic Growth will stop the rising u. S. Dollar and bad weather on the east coast all hurting production. Life time fitness is going private. Leonard green and tpg capital are buying the minnesotabased company in a transaction worth more than 4 billion. One of the biggest buyouts of the year so far. They said that they were going to slow their conversion after cutting our sales forecast. Some of these is getting a new ceo. Tad smith will take over at the end of the month, the former ceo had been under pressure from daniel loeb to cut costs and increase shareholder value. So the has failed to turn the big auction volume into higher profits. The wpp ceo stands to rake in more than 53 million from a controversial Incentive Plan this year. Its the maximum allowed payout under a plan approved shareholders 2009. It went into place into 2013 following a shareholder outcry. Hes already the highestpaid ceo in great britain. Does the Digital Generation really care about tv news . One person is making a big that that it does. It allows people to watch me News Services anytime, anywhere. They are teaming up to bring 30 local news stations to the app. Joining us is the cofounder. This is of particular interest to those of us who wear makeup for a living. Tv news is interesting because it so well adapted for the television, but theres great consumption on the smaller screen. We are hearing more and more about it on mobile. How do you adapt tv news for mobile . Its interesting. We examined the we designed the whole experience around the idea that you can watch news anytime, anywhere. Theres a whole generation of millenials that deeply care what is going on. That many of them say watching news is interesting to them. The problem is how the content is packaged at how User Experience is designed. What we have done is make it extremely easy to consume and watch this awardwinning journalism from brands like bloomberg, for instance. Cory tribune is a big deal because it is local and a different focus, but i wonder about you say the awardwinning journalism available, but in the same way that i read people read more than they have ever read before but they are reading buzz feed list. I wonder if they might he watching more video, but they are watching gifs, watching people do skateboard tricks and fall on their faces. What do people want to watch thats different than Traditional Television . I think there are a few things. First of all, the length. Very long pieces do not work on digital. We have found the ideal size is about three minutes. In terms of topics, cory lets stick with this they like three minutes more than five, but do they like three minutes more than two minutes . It depends. If its a short segment about what are the top stories for the day, just a minute is probably enough. But if it is a feature report from a remote area in the world like iraq or syria, maybe they prefer a type of media like vice news coming for instance. You can see more serious topics like politics and business resonate very well. Its all about how you create the User Experience. Cory in terms of how millenials want to focus on news the collapse of revenues in the news market is pretty interesting. Millenial still want to watch local news . He they want to watch the business of advertising from car dealers and so on . Thats it is about the experience. When we are talking about traditional, local tv newscasts y