Transcripts For BLOOMBERG Bloomberg West 20150330

Back in the u. S. , a potential deal is causing Stark Division between the white house and congress. We have a regime that has never quite kept their word about anything. I dont understand why we are signing an agreement with a group of people who in my opinion have no intention of keeping their word. It is surprising to me that there are some republican senators who are seeking to establish a back channel with hardliners in iran to undermine an agreement between iran and the broader International Community. Cory russias foreign minister has left the talks. He says he will return only with a realistic understanding of a deal. The index of pending home sales has hit its highest level since june 2013. It posted a 3. 1 gain last month indicating a pickup in the Housing Market ahead of the spring selling season. Gains in employment and rising rents are convincing more americans to buy homes. A pair of deals in the Health Care Business United Health has agreed to buy a pharmacy benefits company for 12. 8 billion in cash. United plans to combine it with its own drug benefit unit. A team of pharmaceuticals is buying a san diegobased company. Intels possible acquisition of a fellowship creator could be announced within the week. Lastly, people familiar with the matter told us intel and altera were trying to be the log gets the largest acquisition of intels history. Tesla ceo elon musk has tweeted tesla will unveil a major product line april 30. He tweaked it is not a car. He says he is very optimistic about the future in china despite low sales certainly off among chinese salespeople. Now to the lead. Indiana legislators are looking to clarify the states controversial law which is average many. The law allows businesses to deny services to people based on the businesss religious views. Among those speaking out in the Tech Community is apple ceo tim cook which we did apple is greatly disappointed. Marc benioff is limiting employing travel to indiana. Angies list has withdrawn a proposal to expand in indianapolis. Here is ceo bill oesterle on the law. As nothing to do with creating jobs are educating children. It has nothing to do with attracting talent to the state of indiana. Cory this week, governor pence to spend of the law defended the law. His tolerance a twoway street or not . There is a lot of talk about tolerance having to do with people on the left but here in indiana, steps forward to protect Constitutional Rights and privileges. A freedom of religion for people of faith and families of faith in our state. This avalanche of intolerance has been poured on our state is outrageous. Cory we couldnt find any businesses that spoke out for the law. We are joined on the phone by chris. This law has drawn a lot of instant reaction from the Tech Community. What is different about this law and this time that similar laws we have seen in many other states over the last year or so . Chris thanks for having me on. If you look back to arizona and the fact they were going to be passing a bill that is very similar to this, which is eventually vetoed it shows the Tech Industry and Many Industries around the country and the world realize that this is discrimination in its most blatant form. This terminating in business or those around the country is bad for business. Tim cook said it in his oped that discrimination is bad for business. I would turn around and ask governor pence why was it a closeddoor session then . Why was a closeddoor signing if he was truly feeling this is a good law for the state of indiana . Cory jerry also joins us from bloomington, indiana. He is the director of Business Research at indiana universitys school of business. When you look at this, is there a sense that this was going to have a big impact in the global Tech Community or is this a local issue . It has been perceived by many to be an issue in attracting tech businesses and keeping tech businesses in indiana. There have been a couple of noted cases in the last week to have stepped forward changing plans. Angies list was going to build a 40 million facility involving thousands of facilities and that seems to be on hold. A website out of San Francisco has a major operation in indianapolis and they are talking about limiting flights to indiana and traveled indiana while this is in effect and traveled indiana while this is in effect. If they wanted to bring in more skilled people and people looking for a free lifestyle to go with it as they do in many cities, i think it creates challenges in bringing in those people. Cory i have been amazed at the visceral reaction from marc benioff. He seems to have taken this on and trying to encourage a lot of people to speak on this. He posted on facebook late last night saying in response to this unjust legislation, we are reducing employee travel to indianapolis and canceling all marketing events requiring customers to travel to the state. We might offer Financial Assistance to salesforce employees impacted by the discriminatory environment and want to move out of indiana. To me, this is kind of unprecedented in modern times. The ceo of one of the Biggest Companies in the world is saying he will help people leave the state because of the laws passed. Jerry it is a strong statement in getting a lot of attention. There has been a lot of comment by businesses about the problems that this legislation has perceived to cause. I think perceived because the legislation itself is really unclear. It doesnt directly address anything having to do with groups that would be discredited against or not. And basically sets forth judicial standards by which cases would be judged if there is a conflict. Unfortunately, this legislation poses two basic types of freedoms. Freedom of religion and freedom from discrimination to potential come to butting heads. The only ones that may come out ahead from an and him impact is the Legal Profession from an Economic Impact is the Legal Profession. Cory quickly broadening this let me read from this oped in the Washington Post this morning. This is a political issue this is not a political issue or religious issue. This is about treating each other as human beings. This is the Biggest Company in the world by a market cap and it is run by a gay man. Is it unusual for such a leader to be so candid on this issue . Jerry i think he realizes that it is important for him to be outspoken about this. Last year, i was on bloomberg west talking about his announcement in alabama and coming out eventually as gay. It is important for him to be a leader in his position talking about the importance of treating each other with dignity and as human beings. The lgbt community, each individual and a committee is just as human as the next individual standing next to them, whether they identify as lgbt or not. At the end of the day, for business what matters is getting the job done. We continue to produce technology that is changing lives each and every day. I feel that tim cook sees that. He realizes discrimination is extremely bad for business and this law is rationalizing injustice for so many. Not only the other bt but taking a direct hit at the lgbt community. Cory christopher and jerry thank you very much. We appreciate your time. Up next, a streaming app that took sxsw by storm. Nearmeerkat. It is happening real time here at bloomberg west. Cory this is bloomberg west. The ceo of the breakout video streaming app meerkat. We will talk about the rivalry that has emerged. First, some top headlines. The german wings copilot believed to crash the plane of purpose was treated for suicidal behavior years ago. Here is a spokesperson from the docile door Prosecutors Office from the duesseldorf Prosecutors Office. We had at that time he had at that time been in treatment of a psychotherapist because of what is documented as being suicidal. Cory German Authorities also created a Homicide Commission to investigate whether the copilot intentionally crashed the plane. Greeces proposal still needs a lot of work. The 15 page draft proposal. Is sure on information and they could run out of money in weeks. The National Football league making a separate business. Has bridget operational control to the nfl on location. The new company will be called newco providing unique fan access to the super bowl, draft and more. It is one of the most talked about at launches app launches in recent memory. We are talking about meerkat. The app lets users broadcast live videos and comments with the smart phones to twitter. They cannot save the videos. It is like snapchat meets vh1 pop up video and i dont know. It is falling from 140 on the iphone app download chart to 523 yesterday. Meerkat ceo ben rubin joins me now. Amazing attention to what you guys are doing. The App Store Numbers have fallen off. What do you make of this . Ben we have been in the live video space from within two years now. We have known success and failures before. One thing that is interesting to see about meerkat is that it was able to unlock behavior of Live Streaming behavior. People that wouldnt live stream otherwise are now Live Streaming. Cory so we are meerkating right now as we are having this conversation. Gil martinez is holding your phone. People want to watch this broadcast while it is happening, what do they do . Ben the moment you go live, it is published on twitter. Everyone who follows you on meerkat gets a push notification and they can watch you from the web or phone. Cory they can go to my twitter account or your twitter account and see this . Ben yes. If you are commenting on it, it will be shown on your twitter account. Cory tell me how your business works because you launched at sxsw right . Ben no, we launched out product hunt. It was a side project. We had a product of live video and we closed that. It was 400,000 users that we had and we shut it down and went to this exploratory mode. We said we will release a very simple product every two months. One of them was meerkat. We had six experiments. The first one we put out was meerkat on product hunt on february 27. We didnt plan to do anything at sxsw but the community was extremely supportive. Cory there is also this search for the next big thing. Twitter was launched at sxsw. Ever since, people have tried to find something that would be the next twitter. Ben twitter was out nine months before sxsw. There is a cultural readiness. There is a technological readiness. We dont look at it as kings or queens or anything. It is more about is the technology now allowing a different behavior that could be impactful in a meaningful way . If we can allow people to participate in a large audience to participate in that happening by removing friction from going live or removing fiction from watching in different places in the world, everyone can watch live stream from their pockets basically or stream it from their phones in their pockets. That means the cost to go live and distribute to a large audience is literally zero now. Cory i wonder what people are commenting now. I also wonder that instantly Twitter Announces they will pull the rug out from under your. Twitter is announcing a competitive product. Is that a sign of success to you . Ben it is a sign of success for the space. For us, twitter was a launching pad. We didnt expect to be so received so well in the beginning. We understand twitter and the business decision it is making. It is a good sign to see the company that is very smart with a great product like twitter is doing steps in this direction. Cory we can have a further conversation later on meerkat. We appreciate you coming by. Really cool stuff. We will be right back. Cory this is bloomberg west and we just spoke to the ceo of meerkat. It is in a battle to rule the live video space. The app lets users stream live video from their chemistry to their social media feeds. Is there room for two . Meerkat, periscope and other apps launch on places for people to discover cory to me the launch of meerkat or the attention it got and then twitter pulled out the rug and launched a competitive product. What do you make of that . It is interesting that meerkat and paris scope and others are colliding in this space at the same time. This happens frequently. It is not that twitter is copying them or vice versa. It is a change of behavior and change in technology that is pushing people to look at Live Streaming as a medium. Cory what is the inspiration . Snapchat helps create the behavior of people sharing insuring themselves serendipitously in public. The screens are better on phones and everyone has this Live Streaming device on their pocket in their pocket these days. Cory i will not try to figure out who will succeed. I wonder when you look at businesses that are marketplaces versus businesses out there. When there is a marketplace that is hard for competitors ebay has a lock on online auctions still despite the efforts of some competitors like amazon. Is there room for lots of Different Services like this or will everyone go to where everyone is because that is who you are sharing with . There is a lot of room in the Live Streaming space. One is focusing on Live Streaming video games. Cory it is huge. It is still early and who knows how the audiences will converge. It is still early. Cory i wonder if the existing social graph like facebook knows who my friends are. Linked in as a different graph of me and twitter has a third graph of me. There is a lot of overlapping. His expectation of these businesses that people will have dozens of social graphs or that the couple of companies who owned that like twitter or Linkedin Facebook will own everything on top of that . That is a good question. Meerkat launched using twitters graph. I think the tv graph is relevant to maybe a twitter graph but it could be different as well. The people you watch on tv and the tv shows you watch a different. Cory thank you very much. Bloomberg west will be right back. Cory you are watching bloomberg west. On cory johnson. The campaign to become the next u. K. Prime minister is officially underway. David cameron visited the queen today marking the start of the formal campaign. He says the opposition of the leader of the Opposition Party david miliband, is not fit to be prime minister. I know what it takes to lead this country and i dont think Ed Miliband David Miliband has it. Some say dont make it personal, but when it comes to prime minister, the personal is national. Cory hes as businesses are concerned that miliband will take the country out of the European Union and says the labour party is committed to staying in. U. S. Spending for consumers decline for the first time in almost a year. The reading indicate the biggest part of the economy will find it hard to sustain momentum after the best quarter since 2006. Colder temperatures and snow in the middle east and throughout the northwest could be part to blame. Ebay stuff of is suing ticketmaster and golden state warriors. They are being sued over measures that unfairly blocked the resale of game tickets. The law hinges on stubhub and the warriors policy of reselling tickets. Stubhub claims the listing of tickets has fallen by 80 over the last year as a result to limit resales. Dreamworks new movie home is a hit. The movie took home 50 million in the opening week, smashing expectations. It is the best opening for the studio since madagascar 3. The strong debut means that debuted dreamworks may avoid a loss on the film. 2. 5 million songs will be streamed through alibaba apps. They will also help to detect against the Copyright Infringement of bmg artists. It has been determined that Emily Powell Pao was not a victim of discrimination. If i have helped to level the Playing Field for women and minorities in Venture Capital then the battle was worth it. Although she lost the trial she did bring awareness of the issue to light. Joining me now to discuss this is sarah kuntz and you see law professor. Sarah, let me start with you. This case as a journalist im sure that i know there is discrimination, sexism. Straight, white guys like me dominate Silicon Valley and the financial firms, but as a journalist, i can say here is an example of it, when the jury says this is not an example of it. The things the jury was asked to rule on were incredibly narrow. When we heard during the trial was sort of a referendum on pao s years at Kleiner Perkins, but the journey was really deciding on snippets of that, and whether it meant typical legal standards. We have seen other cases where Public Opinion can differ from what the jury decides. There has been a lot of that recently around ferguson, the i can breathe in new york. Definitely something that happens. I think you can still look at something as a learning experience and take insight from it even if they do not win the case. Cory can i acknowledge that there is racism, and the horrible things that have happened in missouri happen in missouri, and did not happen here . Of course. Just using that as an example of Public Opinion going one way and the court going the other. Cory joan will we remember this as an important case . I was surprised to see it on the cover of the new york times. I think it is a very important case. I certainly do not think, Going Forward that you will have a honeypot like Kleiner Perkins not being able to define its ceo policy. Cory you think . And not have a situation where a woman is not invited on an important networking event like the ski trip or the dinner. There were a lot of factual disputes here. Also, Kleiner Perkins got lucky in that, some ways ellen pao was not as sympathetic a plaintiff. If she had been, if this were a different kind of job a job where there were more clearcut requirements, this could have been very different. Remember, the court ruled that Kleiner Perkins was potentially on the hook for over 140 million of punitive damages. They dodged a bullet, but Going Forward, i think practice will be very different both in Venture Capital, and intech more generally. Cory we all know about the case. Those that know with the best, the jurors were kind enough to speak with us after the decision was announced. I want you to listen to what one of the jurors have to say after the announcement. When you see comparable or similar feedback meeting areas that have been proven, yet one gets promoted and moved to the fast track and the other is held back in a particular role, to me it validated the claim of being discriminated against on the basis of gender. Based on the testimony we heard, it probably had more to do with her sales ability and her ability to get along with people, her personality. A lot of people can be analytically driven, which it sounds like she was, which was what made her great in the chief of staff role, but we felt in the long run, that probably was not what her role would be, based on the reviews that we saw. Cory so there are the two sides of the case. The latter side carry the day there. When you look at this, is this the right issue, but wrong case . It is pretty hard to listen to some of those stories, as well as other stories that have come out, about women in tech and not think that something is amiss. I do think this is an issue that is not going away and something that almost everyone who works in Venture Capital has stories of. It is pretty toe curling, considering we are talking about billiondollar funds. Cory is it worse in finance or business . One of the things that is hard about finance is there are not always alternative assets. Deals continue to come to fruition. Even if they do, who knows if they are successful. During that time, you are really getting by based on your reputation and who you know and the perception of success, rather than in a business you have Quarterly Earnings to tell you if you are doing good job. I think women can do better sometimes in an analytical environment where they can prove they are good, as opposed to needing to on a strip clubbro out bro out on a strip club bus or Something Like that. Cory we have heard this issue with other companies, so could this have a more wide reaching effect . During the trial, there were two more lawsuits filed against tech companies. That could be a quintess. I suspect it is not. What we saw in this trial was that although there was a lot of evidence that was in favor of Kleiner Perkins, there was also very clear evidence of gender stereotyping and specifically, the type of gender stereotyping that is often encountered by asianamerican women. In a recent coauthored study one of the findings we had was that air is an american women asianamerican women are often halted for being too passive. That word came up in the trial. Asianamerican women walk a very narrow tightrope between being seen as too feminine to be confident, too quiet, too passive. But also to massive to be likable. She was bought both called passive and demanding. That is a narrow tightrope. This is gender bias training for the world. It has changed the conversation in a permanent way. Cory thank you very much. We appreciate your time. Bloomberg west will be right back. Cory still to come, ford brings back the Lincoln Continental and Comedy Central takes a gamble on the daily show the daily show new host. This week, we look at the intersection of medicine and the options of closing internal wounds during surgery. Sam grobart travel to a company who is giving patients more options of adhesive journals to permit labonte tissue inside the human body. The inside of the heart is one of the most harsh environment inside the body. Extremely dynamic, constantly expanding and contracting. Like a hurricane of blood inside the heart. Of all the places you can perform an operation, the heart is probably one of the hardest. It is even harder when at heart is very small like in the instance of an infant 10,000 of which require openheart surgery every year. If you want to repair the heart defect, you have to open up the chest of the baby, expose the heart to suture, which can cause a lot of effect to the tissue. We wanted to do something to solve the problem, so we went off and developed this adhesive that could work in the harshest environments in the body, inside a beating heart. In 2009, 18 team at m. I. T. Was asked to solve a problem. How can you prepare a hole in the heart of a child without using stitches or staples . You were setting out to create a new kind of it he said. What were the properties that you needed it to have . A lot of materials can react with blood and therefore was not attached to the tissue. The material we have developed is hydrophobic, which means it can repel water or blood. We can place this inside a beating heart, and then what happens is it will start to infiltrate into the tissue almost like tissue velcro. Then the heart, expanding and contracting on the order of 60 times a minute materials have to be able to respond to that. Tell me a little bit about what this contraption will do. This is a mechanical tester. You can grab the patch which is cured with the glue and measure the force that the glue can generate. You will get a reading of the level of adhesion, as it were. Exactly. We can see around two kilograms of square force per centimeter, and that is Strong Enough to remain in the heart septum. The top of the tissue is bent up. The glue needs to be strong but it also needs to know when to get out of the way, and that is what makes it particularly impressive. It works with the patients own body to create an even better permanent fix. As the material degrades, the patients own tissue forms a bridge, and that seals the hole and eventually the material is gone and the patient has their own tissue filling the whole. Hole. Besides working in the heart there are other places where this could go. Other applications that we can think about, currently exploring, like when we need to bring two vessels together, we can apply the glue to seal a leak. We can think about other approaches, ulcers in the stomach. We formed the Company Gekko biomedical, to translate this technology, and we are determined to try to get this to patient as soon as we can. It is scheduled to be first in man testing later this year. Their hope is that widespread use of their products assignment with the company a lot of money, will lead to fewer invasive open surgeries, cutting down on Recovery Time for patients and reducing infections. The dream of every science person is to translate something to the clinics. The most exciting moment was when we were able to show that we could fix these patches inside of a beating heart inside of a live animal. Of course it was the moment where we knew we had something that could impact the quality of life of patients. Cory that was sam grobart in this weeks edition of the spark. Time for a look at the top headlines. Ford is bringing back the Lincoln Continental. The new look sedan was introduced this week. Mark fields introduced 2. 5 billion on four can models. He spoke about the impact of the stronger u. S. Dollar. When the dollar is strong, that means the u. S. Economy is strong. This is our largest and most profitable market. At the same token, it does erode our Competitive Price position, particularly versus competitors who are importing vehicles. When you stand back, it is a net negative or us. Cory ford will reintroduce the lincoln brand in china. Two former agents have been charged with feeling stealing Digital Currency from the silk road marketplace. Both agents were investigating the website when the alleged thats occurred. The feds have been auctioning off bitcoins seized from the silk road and have held three auctions so far. Bottom line and Mark Crumpton is coming up at the top of the hour. Tomorrow is the deadline to reach a deal in Iran Nuclear Talks and there are still major differences to work out. The International Community wants to curb Irans Nuclear activities. Iran wants relief from crushing sanctions. Indira lakshmanan is covering the talks in switzerland. Peter cook is following the political backandforth in washington. Back to you in San Francisco. Cory thank you. Bloomberg west will be right back. Cory this is bloomberg west. I am cory johnson. The replacement for John Jon Stewart has been announced. Trevor noah has been announced as the replacement, a comedian from south africa. I have known people on the show more than three times. Thats crazy. In a short space of time. His debut was in december 2014. He is absolutely a newcomer. A bull for Comedy Central and by, but in december 2014. His extensive, the background outside of the show is what helped him. Cory big shoes to fill. He has 2 million twitter followers, he is on instagram, as videos on youtube. As the cliche goes now, he is digitally native. Absolutely. 31 years old, so a couple years younger when john stewart took over in 1999, but he hosted his own show in south africa when he was 25. He has been doing this for a while. He has been in the social media game for a while. Jon stewart is sort of antitwitter, social media, so i think Comedy Central went after someone who could integrate social media more into the show. Cory i wonder what the notion is of having a more global show. The humor is very u. S. Centric very focused on the u. S. Occasional references to the golden age of comedy with the borscht belt humor. I wonder if those jokes disappear and it becomes more of an International Thing and less of a u. S. , cultural response. I think that could work for the show. Former correspondent john oliver did a great job bringing his outside british experience on the sometimes ludicrousness of american politics. Trevor noah will be able to do the same. In his debut, he compared the mentality with police with the brutality that he saw with a parttime growing up. Apartheid growing up. Cory i also wonder, i saw him online on my computer or ipad but the daily show has been one of the most inclusive in putting all of their stuff online, cataloging it all extensively. Is there a notion that that is what they need to do to be successful Going Forward . I think so. That is the only way that they will reach new, young audiences. That is where they live on instagram, twitter, snapchat. Trevor noah embodies that. Comedy central has definitely made a push for those new, digital audiences. Cory its also interesting the success that john oliver and others have had on different networks, being digital. They are doing web exclusives over at last week tonight, even when they do not have new at the suits episodes. That is the way to keep your audience interest right, even when youre not on air every week. Cory thank you very much. Were cruciate your time. All the latest headlines on bloomberg. Com. See you tomorrow. Mark from bloomberg World Headquarters in new york, this is bottom line. A mainstream perspective. Main street perspective. To our viewers in the u. S. And those joining us around the world, welcome. These of the stories making headlines on this monday. The watches on in switzerland with the latest on the iran nuclear negotiations. Peter cook