Transcripts For BLOOMBERG Bloomberg West 20160106

Gap between chinas onshore and offshore currency has widened to a record after they cut again rates for a seventh straight day. The offshore saying thats going to a fiveyear low. That is the weakest level since april 2011. Lets take look at the markets. Closed for the lunch break, here is how they were trading in the morning session. The hang seng down close to 1 . Afternoon they say this is the picture in singapore, tokyo, red. Ubai all seeing some north korea confirming this nuclear test. Emily im emily chang and this is bloomberg west. Coming up, we will look at the big news coming out of this years consumer electronic show. Plus, the worlds most valuable company, a little less valuable today. Sellers take a bite out of apples stock price and the company is cutting back iphone production. Virtualreality about to become a real reality for consumers. We will preview the developments for 2016. First, the lead. Cars that can drive themselves and speak to your home devices. A vehicle that can rival a new a. I. That can make it safer. These are some of the things you can see at the consumer electronic show this year. The big theme is Silicon Valley working with detroit to make technology to make your cars smarter, more connected. Organizers have dedicated 25 more floor space to 115 autorelated exhibitions like ford and bmw. Joining us now is david walsh. We have car news. David, i want to start with you. Who are the big Auto Industry players making news . Lets start with ford. David mark field took the floor in talked about the new investments they had coming. The big news was they are the number of Autonomous Cars they are testing on the road. They are tripling the fleet so they can test the more and see how they actually work in realworld situations. Emily talk to me about the microsoft announcement today. Of course, microsoft getting into the connected car game. It is a pleasure to be here. Microsoft is happy to be here. The number of our customers and partners, highlighting capabilities that are critical. Starting off with the productivity, think of this as the office. The work we are doing is a great example of how we can enable new productive experiences, almost reinventing the car. Do skype meetings. As cars become more and more connected, these are capabilities that people need. Microsoft is playing the role of being the Technology Partner for Auto Companies for these innovative experiences for the consumer. Emily on one hand, we are seeing the race for connected cars apple, google. And then there is driverless cars, apple, tesla, uber. How do you see these races playing out . David the holy grail seems to be if you have a car that is autonomous, it drives itself, then you can really bring connectivity to life because people can send email. They can watch video into all kinds of things with data while driving. You have Companies Like google that love to get those two hours a day you were commuting in your car they want to get your eyeballs on their content and marketing and the things they do to make them so much money. If they can get the vehicles going and carmakers can have the driver out of the picture, then you can be back on the web and consuming content and paying for all kinds of services. Even mark fields talked about this. He would want to make revenue off the driver when they are in the car, and they are not seeing them again for another five to eight years. It really enables connectivity from a business standpoint that everybody is trying to get to. Emily sanjay, one of the things we have been talking about, automakers had great sales last year. They are preparing for slower growth. Are they getting creative with technology to balance out a potential slower year . Sanjay one of the exciting things that consumers needs and having a connected experience. That has been a big driver for demand for vehicles. What you are seeing Automotive Companies investing more in this space to ensure they can make the brand more compelling for the consumer. Make the driving a fun experience and have a capability that consumers will look forward to. Absolutely, you will start seeing the new productive experiences, connected experiences. The fun work balancing with the home and on the commute. Making the commute a productive experience. All of these will play into making the cars more attractive and drive more demand. Emily david, you attended the unveiling of the future car. This is coming out as a competitor to tesla. How does it compare . We will dig into it in a moment. David the car they showed last night is not a real car in the stricter sense. It goes back 10 to 15 years with what cars used to do with really advance, futuristic, but not realistic cars. Fantasy stuff. It has one seat. It almost looks like a modern version of the batmobile. The batmobile from the original series, the original cartoonish one. It was fun, neat. 1000 horsepower. It is not the kind of car kids pick up their kids from school. They want to show they can design things that are really neat. It is like a skateboard with the motor on each wheel. You can put any body style and easily manufactured it. They want to say we have aggressive styling. And you can put your smartphone in the steering wheel, it can drive and you can have unlimited connectivity through the partner. You can get content from that provider whether it is movies, entertainment, videos, business work whatever you need, you can get it through the smartphone embedded. That is a big part of it. Driving, connected driver, all different kinds of styles. It is not a car that will go up against tesla, per se. Emily ok, david, sanjay, you are both in las vegas. We will have a lot of great interviews from you guys all week long, including the ceo of ford and a number of different folks in the auto space. Do not miss it on bloomberg television. As we mentioned, the electric car start up finally gave us a glimpse of the potential. The company poached engineers from tesla and spacex, worthy of an apple event. Tom tells us what his batmobile type car that this is not the world is waiting for. Tom welcome to the future. Whatever that is. It is this supersecret, that wants to compete with the likes of tesla. It just released the first concept car which looks worthy of a batman car. They also have a factory in nevada and want you to know they are for real. The ff01 constant car has a motor for each wheel and go from zero to 60 in under three seconds, putting in the same club of the worlds fastest supercars. We are talking 1000 worst power and a top speed horsepower and it will be equipped with sensors. It is built and will later be the chassis for other cars and suvs, whatever this Company Wants to dream of. Unfortunately, this is still just a concept car built for a racetrack. No concept cars never get built. Another problem there is already an electric car that goes from zero to 60 in under three seconds. It is called a tesla and it has been putting ferraris to shame for years. Faraday wants to be a tesla today. Best of luck. There will be a lot of other electric that mobiles to compete with. Emily not so much a rival to tesla yet. Later this hour, we will go back to ces for more futuristic technology. Espn of esports kicking off the new year with a new deal. I will have the details next. Emily the French Telecom industry could be getting smaller. The combined entity would control the mobile markets, sparking concern from antitrust regulators. The companies are evaluating a bonanza of after sales according to people familiar with the matter. There could be other two major providers monitoring the situation closely. And, as the tech m a does not stop, a group by China Resources can have a better deal. It is a move that brings the Gaming Company closer to its role of being the espn of game sports. Tell us about the deal and the potential. Alex this has been a bit of a backandforth. Reaching a deal with fairchild. This was about a month ago at this point, for 20 a share. Then, this company, China Resources a big company out of china the Semi Conductor unit which is much smaller, they made an unsolicited offer which was deemed to be not a superior offer. They addressed some of the concerns that fairchild had, including paying a breakup fee to the semiconductor because of a did not happen, there was a breakup to be associated with the deal. They said they would pay it. Now, what we broke last night and confirmed today that fairchild is saying, ok, we think this is reasonably likely to lead to a superior offer saying that allows fairchild to have a dialogue. What they have not said is say this is a superior offer. The current deal will exist as is, but it allows them to dialogue which could lead to a new offer. If it does, semi would be in a position where they have to raise their bid. Emily it sounds a little bit complicated. China is emerging as a tough player in this space. Alex they want to have their own access to technology that has been long dominated by u. S. Companies. They want to be Major Players in mobile phones and tablets. In order to do that, you need access to the technology. This is step one. That is why we are seeing chinese entities attempting to buy u. S. Companies. The big question is will regulators allow it . To people i speak with say they are probably will not be a regulatory issue that would bar a deal because fairchild is 2. 5 billion company. Some of the bigger Companies Like micron that have elicited some interest, it is a harder deal. Emily activision why do they want to become the espn of esports . Alex espn is the dominant cable company, so of any trouble is that cable bills are getting too big so people are starting to not have cable and espn subscribers have gone from 100 million to 93 million. It still cost a lot of money because people want to watch live sports. The next wave of this is people will watch live gaming sports, in other words, watching other people playing games. It has been a big hit on youtube and other channels. Activision figures why not throw 50 million at this . They said they plan on launching an egaming around their current games like call of duty. This seems to be a small bet which could be a big option value. Longterm, i think the big question is will the legacy media Companies Like disney actually decide they want to buy an activision or ea . That is something as i will be watching for the next year or two. Emily we will be watching it too. Activision come a potential takeover for disney. Thank you for joining us. Coming up, we will stay on the gaming beat with an investor that has backed the most successful games. See what he has to say about this year. Emily i want to pick back up on gaming because 2015 was marked by consuls the mobile. Activision dropped 6 million. Billion. Nintendo made plans beyond the wiiu. If you look at the Top Grossing Games in today, classic lands is clash of plans is on top. Thank you for being here. What is the investors take on what is happening on the gaming industry this year, given that we have seen a number of mobile gaming struggle . We have to keep in mind gaming is a massive category. Anybody with teenage kids knows this. Emily or some adult children. Or even some sevenyearolds. It is the biggest thing people do with smartphones, better than phone calls. You talked earlier about activision, which bought king and getting into esports. It is that. Super cell. Microsoft with minecraft. You have to concentrate with people on the Big Marketing budgets and the abilities. Emily who will get bought by whom . Sandy i see more consolidation because there is more power in the platform. There are the big Asian Companies which i dont see of acquiring in the u. S. That they are the model to some extent. It was really something that was a learned experience from the big asian game makers. There are a number of Small Innovative Companies that i think will be acquisition targets rather than ceo ipo candidates because they dont have the marketing clout, but they have the innovation. Emily zyngas struggles have been well documented. Is zynga going to be taken over . Sandy the company has a strong cash position. I dont know they are the first ones to go. I think back to zynga, they were developing games in San Francisco at the chip factory. Small teams developing what became farmville and other big hits. I think all the Game Companies need to get back to that the basics of a small team that can really develop great games as super cell did. Small people doing amazing super things. Emily the environment for deals is potentially on the environment. What do you see when you see for the tech exit for 2016 . Will this year be better for tech ipos than last . Sandy absolutely, yes. 2015 was a very weak year. Only 31 tech ipos which is nothing compared to 150 in 1996. Today, there is way more interesting private companies than earlier. It is a tiny fraction of Companies Going public. I see that opening up quite a bit more in 2016. A lot of great companies. I have been around Technology Companies for about 40 years and there are more companies to scale, growth, interesting products today then there is ever been in that time and by a wide measure. Emily dropbox, snapchat my guess is dropbox would go public. Do you see a company like dropbox or another bigger name taking advantage . Sandy i think all the bell whether Companies Like that because the private companies have been so favorable have been so wellfinanced. It is a great branding event and it kicks off the liquidity process. I dont have any comments about those particular companies and i dont think anybody is rushing into the market with the feeling is good because the deal that happen are towards the end of last year which work. They were priced conservatively and they traded well. I think investors are interested in ipos again and im optimistic they will see some flow. We dont get the visibility we had, so we dont know who is coming. Im hopefully will be a great year. Emily we will be watching. Sandy miller, thank you for joining us. We will be back with more of bloomberg west. Reports of apple cutting iphone sales, next. When youre on hold, your business is on hold. Thats why comcast business doesnt leave you there. When you call, a Small Business expert will answer you in about 30 seconds. No annoying hold music. Just a real person, real fast. Whenever you need them. So your business can get back to business. Sounds like my rides ready. Dont get stuck on hold. Reach an expert fast. Comcast business. Built for business. Yvonne south korea has strongly condemned the Nuclear Weapons test the north says a carried out this morning. Hydrogenscribed as a bomb which would be far more powerful than an atomic device. They claimed was for selfdefense, but went perfectly and would not be the last. Defense stocks soared, but the wider economy declined. The developer shares were halted last month over a battle for control with its largest shareholder. They said they will announced a recent a restructuring. China shares jumped 20 after an opportunity can private. Numeral development which is controlled by the family of hong kong billionaires offering cash for shares at a 26 premium. Rejected byd was minority shareholders back in 2014. Sony is falling off the ceo said the company has decided not to pursue market share. Sony will concentrate on products that matter. It showed off some of its 2016 line up at the show including 4k televisions and audio products. Lets check on how the markets have been trading. Lets go to david. David were coming off a little of it from the lows of the session. Before i get the big picture, just an update here. A lot of these guys have been bid up, unsurprising given the development. For example lig, for example. That is what we have seen. Times, acrosscent the index down about a quarter of 1 . Did get some initial comments from the bank of korea they are watching this closely and are prepared to jump in and smooth over any volatility. See any signs of herd mentality when it comes to the market. We have some instability giving up whats what is happening there. Very quickly, lets have a look at our map across the region. Fairly uneventful. We are counting down to the reopen in shanghai and here in hong kong. Investors took a bite out of apple today. They initially told supplies to keep production of the newest models at the same level as it was for the predecessor. According to the Nikkei Asian Review apple told them to keep production at the same level as for the predecessors but inventories of the iphone 6 and 6 s plus have piled up at retailers and developed markets like china and europe. Apple didnt respond to our request for comment. Joining us now from minneapolis the Senior Analyst for Piper Jaffrey covers apple and our other guests. Gene, ill start with you. How significant is this report . It is really not significant. Every cycle, every year when apple releases a new phone, they cut production quickly after they launch the phone. The reason is what they want to do is make sure their supplier is able to handle any capacity. The concept of cutting production is nothing new to the story and historically has not been correlated to the iphone units. Emily that said it does fall in line with the trend weve seen from jpmorgan, credit suisse, about iphone declines. 30 sounds like a lot. Tim, what are you hearing from suppliers . Tim well, we saw a couple splares have already announced december sales this week, Taiwanese Companies have to report every month by the 10th of the following month. One of the big names reported yesterday and we saw their december sales fall quite a lot from november. Other names have seen rather large decreases including the company which makes the back light for a lot of apple products and the batteries and the metal casings for phones have all posted pretty strong double digit sales declines for december. But as gene says, we often see that. What were seeing this time is a lot larger scale than maybe in the past but the normal cut going into the First Quarter, the calendar First Quarter is very, very common. So, really, the concern would be the scale, is it out of the ordinary or not, and that is what people are looking at in taiwan. Emily if it is all just part of a cycle, adam, how much greater does the iphone 7 need to be for sales to pick back up . Adam i think every time they come out with a redesign there is a lot of anticipation and hype around it and apple needs to always live up to that. The broader context of what this is is a lot of the skittishness around apple right now about what the next big thing is going to be. The company is incredibly reliant on the iphone for business and so any hiccup that investors see in how the iphone is doing causes these sorts of blips in the stock. Emily gene, how dramatic do you expect the redesign of the iphone to be . Will an iphone 7 be that much different than an iphone 6s given that the screen has already gotten bigger . Gene probably modestly different. One of the things they could do is potentially remove the home button and use things like ultra sound to do some of the biometrics so there is some technology that could allow a slightly bigger screen inside the same form factor. The substance will probably look a lot like the iphone 6 plus and 6s plus. The big trend investors should take some safety in is the pace at which people are buying iphones is speeding up. Theyre buying iphones more on subscription at least in the u. S. And apple says theyll export that program to outside the u. S. If that happens, that should speed up the pace and create a severalyear tail wind to the iphone starting december 16. Emily now, gene, you and i have talked about this over the years, but this is still an iphone company. 66 of revenue comes from the iphone. At what point do you see a significant diversification in revenue where the revenue, a significant portion of revenue is coming from another product . How many more years is apple an iphone company . Gene well, as far as iphone, its going to be probably four or five more years. Youll see other categories becoming bigger like the watch. Its a few percent. That could ultimately be around 10 but it is still an iphone story until other categories like the car or this augmented mixed reality kind of this next generation google, apple will eventually be involved in. Those are the type of things. So a longterm investor shouldnt have anything to worry about. It is the investors quarter to quarter that impacts the stock on days like today. Emily all right. Gene munster, piper jaffray. Thanks so much. Tim culpan, our reporter in japan. Thank you. Staying with apple now, fit bit taking a page from the cupertino companys playbook. The Wearable Company releasing the blaze, a fitness tracker with some apple watch like features including a color touch screen and changeable bands. Investors, however, werent enthused in the face of increased competition shares falling to their lowest price since fit bits ipo. Fossil and underarmor also debuting fitness devices. Staying with the latest, imagine waking up to the smell of fresh coffee or croissants every morning. A google back start up is making an alarm clock that will give you just that. Over the last couple years weve seen a lot of innovations with alarm clocks that wake you up with different lights and sounds and vibrations but this is an alarm clock that wakes you up with smell. This is the olefactory alarm clock. It is an alarm clock that wakes you up with smell using the little pods. These little pods contain scents developed by a french perfume house specifically meant to stimulate your senses and wake you up within two minutes. If that doesnt happen you will get a backup beep so you dont miss the morning meeting. There are scents like buttered toast. The perfume tods cost 10 for a two pack and it is sort of a razor blade business model. You buy them and each pod lasts to 30 days. You are effectively paying 5 a month to wake up to the smell of fresh toast. It first appeared on kickstarter last summer and will start hitting kickstarter backers this may with Units Available for retail by the end of the summer. Emily bloomberg there and tomorrow we have full coverage of everything out of c. E. S. Well hear from the tomtom founder and the blackberry c. E. O. And robert lloyd. Emily the nations leading economists are in San Francisco for the American Economic Association Annual conference. Bloombergs senior economic correspondent started by asking if productivity is measured correctly. I think the question is were certainly not measuring productivity right but then we didnt measure it right before either, so are we doing a worse job in measuring productivity now than we used to . And i think there are some arguments that suggest we are. Mainly services for the most part where weve seen growth, seeming productivity growth, and weve seen situations that are quality changes and that makes it hard to measure productivity when you have Services Plus quality. The argument and this is one advanced by a panel here as well, has been that as amazing as Networks Computing has been, the real productivity enhancer was indoor plumbing, was internal combustion. So will Networks Computing actually provide the productivity boost that the model t did . I agree with Robert Gordon the 20th century was a hard act to follow. My grandfather said he was born when people got around by horses and buggies and he lived that was 70 years, really remarkable. So its difficult to get boons like indoor plumbing twice. You only get it once. But the kind of Technological Innovations we are seeing in i. T. Are pretty incredible. They are incredible but are they creating Economic Growth . Many of the things they create then become free. Yeah. Well, let me give you an example. Look at the gps systems. Gps systems had a big, measurable Productivity Impact on the shipping, trucking, Logistics Industry for obvious reasons in the late 1900s early 2000s. Now the price has fallen so much that everybody has a gps. You dont get lost anymore. The kids arent crying in the back seat. You dont have to sit fumbling with the maps around. That is a big productivity increase in reality, but youre right. It doesnt show up in g. D. P. Because it is home production. The kids are always crying. But the question is always then how do we turn this into policy . Policy makers are scratching their heads trying to figure out how we then create growth. Is productivity even the culprit, right . If what youre saying is were seeing im sorry. Productivity we arent seeing in the data, so do we need to look somewhere else for the lack of growth . Because were definitely measuring growth and it is definitely not growing as much as it used to. Right. Weve seen similar phenomenon around the turn of the century, the last century, the 1900s where you had big technological advances in production, washing machines, driers, dish washers, vacuum cleaners, lawn mowers all of this stuff that made home production much faster and easier. People were much more productive but it didnt show up in g. D. P. We have a lot of that going on now where many of the productivity advances were seeing are not easily measurable. How do you capture that in policy . I think we should not be so obsessed with some of these measures of productivity and we should continue as economists. We should continue trying to measure this unmeasurable phenomenon. Weve done some stuff in that area. Other people are doing things. It is not a completely bleak picture. One of the things thats really changed in the profession is this ready availability of so much data. If youre a young economist right now, you might be going to google or some other firm thats sitting on all of this data where you can actually learn something about human behavior. Is there a way to generalize what it is were learning when we have all of these micro transactions that can help us do Macro Economic predictions . The holy grail. Right. Well, there are two things. One is having more data and the other is having more time. Look at the statistics which come out once a month. G. D. P. Comes out once a quarter. You can look at a lot of these economic, online data measurements that come out. Google is on an hourly basis. So on this friday im going to the bureau of labor and statistics for the jobs day lockup. Is there a time when i will also be going to the google jobs lockup . Oh, yeah. Absolutely. Look for queries. Go to google trends. Look at queries like looking for a job, is anybody hiring, where is the unemployment office. These are taking the polls of the labor market these kinds of queries. Emily googles chief economist hal varian. Is a tweet longer than 140 characters still a tweet . That is the question. Twitter may be preparing to raise its character limit according to a person with knowledge of the matter. The maximum number of characters could be raised to as high as 10,000. Depending on how users respond to the trial. Joining me now, you cover twitter for us. 10,000 characters is the equivalent of a 20minute speech. No one is going to write 10,000 characters. Emily okay. But why 10,000 . It is like having no limit at all. It is really just a way to say people can write whatever they want. There has to be some limit of the code you have to probably have an end, right, no one wants to put a whole book into a tweet. But i think what theyre really saying here is they dont want to restrict people anymore. Emily of course the twitter sphere has been very active over this news and jack dorsey just tweeted before we came on the show, a lengthy tweet that did not confirm that they are raising the limit but suggested that they are experimenting with raising the limit. He said, what if that text and he is talking about tweeting a photo of text, what if that text was actually text that could be searched, highlighted . Were not going to be shy about building more utility and power into twitter for people as long as its consistent with what people want to do we are going to explore it. My favorite tweet from the opposition as im calling it, jack, please, twitter is all i have. Dont do this to me. Sarah there will always be people who are really worried about change and who think that the 140 character limit is the defining feature of twitter. How is it twitter without that . But if you search for reported 140 characters on twitter you see a lot of complaints from your every day users, not the journalists or celebrities or politicians who use it but people just trying to use twitter to talk to their friends who get really annoyed. Emily so does twitter lose what makes Twitter Twitter if this happens . Sarah i think theyll try to make it more like what you see on facebook where you have a little preview and then you click to expand it. Emily interesting. Well be watching. Sarah frier who covers twitter for us. Bloomberg news. Thank you. Coming up Virtual Reality is finally getting real. The technology expected to grab the spotlight at the Consumer Electronics show. Well have a preview. Emily the Consumer Electronics show gets under way tomorrow in las vegas. Over the years the technology that debuts there has had a profound impact on the lives of american consumers. Consumers around the world really. In 1970 the v. C. R. Changed the way people watched tv and movies. In 1981 the c. D. Player changed the way we look into music. Now, in 2016 its Virtual Realitys turn. Sales of v. R. Headsets are reportedly expected to increase 500 this year. Joining me now from las vegas with a preview of Virtual Reality developments at c. E. S. Tim stevens editor at large at c. E. S. Tim, thank you so much for joining us. Of course the long awaited oculus rift will be unveiled and of course also a big headset from h. T. C. Is it really just a race for consumers at this point . Tim it is definitely a bit of a race and a long race. V. R. First came into prominence in the mid 1990s. Its taken a long time to get here but is ultimately finally here. Weve been waiting for this debut of this Consumer Device and it will be available for view tomorrow morning so the long wait is about to end. But there is a competitive product as well with the vibe. It is going to be an interesting race to see which of of these two is the strongest. Emily what about past 300 to spend on a headset . Tim there are super options. It may actually be quite a bit more. Were still waiting to find that out. Probably the best low cost option comes from samsung. If you happen to have one of the latest generation samsung phones, the galaxy note or galaxy s5 or 6 you can get a gear v. R. Which is a Virtual Reality headset minus the display. You plug your phone in and your phone becomes the display. It is only 99 which is quite a bit cheaper than any of these headsets are going to be and is a surprisingly compelling experience. Samsung put a lot of time and investment in these and partnered with oculus on the technology. It actually works really well. Emily i want to talk about augmented reality. Weve been waiting a long time to see something more from magic leap that is working on this very secretive augmented reality technology. It works with your smartphone. I could potentially shoot aliens on my desk for example. What are you watching for when comes to augmented reality and magic leap in particular . Tim magic leap is a very Exciting Company to watch. They have been very secretive about exactly what theyre up to. I have seen a demonstration and the technology is quite compelling. Basically a camera in your phone detects what is going on behind you and basically projects these 3d images on top of it as if there was a tiny elephant walking in your hand for example. Things like that. Kind of magical experiences delivered within your phone. Since it is in your phone there is really no cost other than the potential cost of the app. But what exactly theyll do with that technology we are still waiting to find out. Thats pretty exciting. One of the other interesting augmented reality applications comes from microsoft, hollow lens, like a big v. R. Headset but transparent. Instead of just going to a Virtual World it can actually bring characters to you so you can imagine playing a game like halo and having the enemies running around in your living room and shooting them. That is pretty exciting but that is going to be pretty expensive and not in the hands of consumers for a while yet unfortunately. Emily and it is of course based on the p. C. Which you have to have as well. Lets talk about some of the Practical Applications of this technology. Ive been watching some of these amazing demos and v. R. And a. R. Videos, h. T. C. For example has this incredible demo with the animator of the little mermaid. What sort of Practical Applications do you see for this in the real world . Tim well, on the Consumer Tech side of things gaming is definitely the thing to get this into a lot of homes quickly but a lot of productivity applications ultimately. Theyre actually using v. R. To help designers come up with better interiors for cars. They can quickly and easily make changes to the interiors and the designer can put the v. R. Headset on and act as if theyre sitting inside the car. You see a lot of potential for designers and doctors to look at things on a scale as if they were inside of the cells. Theres a lot of potential applications for v. R. And it is pretty exciting to think about what people can do with these things once theyre on the market and affordable, too. Emily when it comes to gaming what are the top titles right now . Tim mine craft is probably the most exciting. Weve seen demonstrations on oculus rift and also seen that running on microsofts hollow lens so you get augmented Reality Experience to have your creations on the table in front of you which is pretty exciting and is one of the most popular games in the world. That will be a huge seller i think for v. R. One of the most compelling experiences is alien isolation as if youre basically in one of those creepy alien movies. You can imagine walking down the corridors and hearing the alien kind of hunting you. That is a pretty compelling, freaky experience to say the least. Emily okay. So if you can pick one company that you are most optimistic about, which one would it be quickly . Tim right now it has to be oculus rift. The backing of facebook and aiming high with their technology. I think theyll do very well. Htc has a great product but oculus has better backing. Emily well be all over it this week. From the heart of the action in las vegas, tim, thank you so much for joining us. Tomorrow of course we have full coverage from the Consumer Electronics show. Well hear from tomtom cofounder, rob lloyd, and blackberry c. E. O. John chen. Thats all today from San Francisco. The following is a paid program. Announcer on todays paid presentation youll discover the , secrets to not only aging gracefully, but beautifully while looking your best every step of the way. Cindy my philosophy on aging is the same as my philosophy on living, which is do it well and take care of yourself. Its about celebrating where you are and being the best you can be in that moment. Its not aging, you are living