Transcripts For BLOOMBERG Bloomberg West 20160519

They are not liable for shootings in 2012. Cinemark said it could not have predicted an attack. He was sentenced to life in prison last year. Bloomberg west is next. Coming up, a question of trust. Did Mark Zuckerberg convince conservatives that it is not biased. Plus, google has a plan to take on apple and amazon. I caught up with a former google executive. The manufacturer is reinventing home appliances. We talk about the plans in the pipeline. Now to our lead. Mark circa big met with conservative leaders to address concerns over a bias in the companys trending topic section. Wasg those in attendance glenn beck, Barry Bennett and former White House Press secretary. Saying he facebook wanted to hear these concerns personally about how we can build trust. Toant to do everything i can uphold the integrity of our product. It seems have located some of the concerns. In a post on his website, glenn beck said the overall tenor to me is of the salem witch trials. Joining me now to discuss is someone who attended that author brookes. Gentlemen, thank you both for joining us. Start with you. How would you describe the overall tenor of the meeting . It was a good constructive meeting. The Senior Leadership was there. They are worried about trust. People might be worried about being underrepresented on their platforms. They wanted to know what we were thinking. They told some of the things that they were doing to fix it. We got some feedback. And it was very good. Would you say that Mark Zuckerberg admitted that there was bias . No. They have an investigation that is ongoing. It is implausible that there is some sort of conspiracy going on. What he say that . Conspiracies are hard to pull off. There are a hundred 60 million facebook users in the united states. Having people inside the company or leadership that we are trying to bid. Pretty that idea for business. I dont think anybody in the room about that. 89. 6 of facebook employees are liberal. Does that matter . Dont think so. Facebook is a reflection of both and the silicon employees that work there. What i think that is really interesting is that it is moving us closer to that line where facebook is acknowledging that they have influence over us in very subtle ways. It sounds like they reiterated that today. Did the knowledge that . Did they say that they understood . They talked about trust. Trust matters. Disseminatest information that without editorializing. You dont want to identify it with one particular point of view. Does it matter that they are it is kind of an interesting question. I believe that i could represent liberal point of view as well as conservative. It would be a good idea they had more different points of view in the room. Zuckerberg andrk Sheryl Sandberg could use this as a major opportunity for this to be a forward leaning kind of company. There seems to be some tension here in that facebook is an independent organization and that the conservative party should say that the government should never interfere so what do you want from facebook . I dont know what i particularly want. They were asking my opinion. Its not that i was going to facebook with some set of demands. I want a free enterprise. That is the job of capitalism. Iey wanted to know what thought to make the situation go from what it is now two and. Thats why i was there. What do you think that they can do . This is a big idea. It is a big entrepreneurial thing to do. If you have a company in Silicon Valley that it is the left wing place. A nonreligious people are not all like that and maybe this is a Good Opportunity to build that community. Maybe this would be naturally avoided . Trump has more like sent any other president ial candidate and also fox news gets more interactions than any other news outlet. I would not have thought there was any bias here. Facebook is going to position to use their technology to show that. Could show there is a systematic bias. I am curious, do they talk about that . Will they be able to rebut that . The trending topics algorithm is a very new thing. It is very small compared to the newsfeed. It is something that they are trying to get right. Iny are extremely interested doing that. We are to see some actual positive changes. Cultural solutions are going to have to come along too. Author brookes, president of enterprise institute. Thank you for joining us. Thank you, emily. Another story is apple ceo tim cokes trip to india. Apple says the venture will create about 4000 jobs. Started to already set up an App Development center in bangalore. This is not been made available. He will meet with the Prime Minister later on. Coming up, we speak with the former director of the cia and nsa. Damage control continues. It voided two years of data from its devices. It could have led to unnecessarily dangerous treatments. The Elizabeth Holmes led company was once considered revolutionary. The accuracy of the machines came under the microscope. Apple battle may be over but the encryption wars have just begun. It lies in wait in the nations capital. Tensions remain at an alltime high. Our next guest is a former director of both the cia and nsa. He backed apple at the height. He joins us now from standard university. General hayden, thank you so much for joining us. Encryption,e of even that you cited with apple. You have him saying that encryption is seriously impacting National Security and hurting criminal investigations. What is your response . I sympathize with it. There is a real problem. This is a bit of a safe haven. Security,e world of there are always tradeoffs. It is Cyber Threats. Has said that those Cyber Threats is threat number one. You really have to be careful for legitimate reasons to do something that is actually going to make it successful. My bottom line is the government can do this. I dont think it is a good idea. Use that in the past that we are headed to a world of unbreakable security. Im wondering do you believe that there wont be actors out there that will be able to break into things. What i meant was we all have to embrace in the Security Community the reality. Nomatter what lobby we pass, matter what Court Judgment we get, it is going to come increasingly difficult to understand the concept of communication. It is inevitable. Rather than try to slow the onislation, we need to get with our lives in terms of still doing our jobs. Here is immake arguing for security here. Lot of digital exhaust out there. Actionableeate information. Is that they are ramping up of cyber war on isis. What is going on behind the scenes . I like the fact that we are saying we are at a cyber war with isis. I have worked my entire life in government. Now we have the secretary of defense and director of National Intelligence publicly announcing that we are taking offensive cyber action against the islamic state. I celebrate the action and i celebrate the announced. Details, i am the not in government. I suspect we are making it more difficult for them to sustain their digital identities. Tois more difficult for them use social media. I applaud the effort. Of the current president ial election, you told bemar recently i would incredibly worried about Donald Trumps comments on how he would govern it. Theou were to order that, American Armed forces would refuse to act. You work for president bush and now that trump is the nominee, are used gill concerned still concerned . I am going to fall back on that australian secret Ballot System we have had. Im not going to talk about how were going to vote. Nothing has changed my view. Began governs the way donald tops, i think america is far less safe than it would be. Things he has said is completely unacceptable. Creating the force within the deport 12tes to million residents, that will be gary for everyone. Hard for them to undo. Hayden,eneral michael thank you so much for joining us today on bloomberg west. I appreciate you sharing your views. With theg up company that reimagines the vacuum cleaner reimagines something else. The Company Wants to totally remake the way we think about household appliances. Redesigned they spent 71 million redesigning it. This is a 400 hairdryer. Why should i spend that money . We can still talk. It is a fairly quiet hairdryer. Have reinvented everything about the hairdryer. We put that in the handles. All the weight is in the bottom. We have intelligent heat control. In drive faster. It gives you more shine. They would absolutely kill me if i took this away. You spent all that time on this technology. Drama here that much. It is a great example of what dyson does. Our engineers get frustrated about things and want to solve a problem. If we develop different motives, we have done the same with bathroom cleaners. Angie what else are you spending your research and develop men on . Were in the midst of lossing dyson 360. G it is a new vacuum cleaner. It is connected. Vacation, youn can tell it to clean while you are not even home. We have 2000 engineers. There is enough frustrating things in the world that maybe we can find a solution. Why did it take so long to radiant redesigned the hairdryer. If you really want to come up with different technology, you have to take a foundational approach. Spenteloped a motor and 70 million only to make a better hairdryer. It is very small. That, you can create a difference appliance. You are working on making better batteries . Are definitely working on batteries. Similarly today, we are relying on the best conventional Battery Technology and limiting what our projects can do. This is with the aim of finding a breakthrough that can deliver significant higher density than is available today. Higher Energy Density means machines that can go on much longer. Angie do you think you could take on tesla . We are not commenting on that. Max cons, ceo of tyson. Thank you for joining us. Thank you. Angie i do use hairdryers every day. You can try it. Angie coming up, and exclusive first look. What gives you the ground tour . Next. Bring in all our best. Im mark crumpton. Youre watching bloomberg west. Early reports from Egypt Civil Aviation Ministry says that floating material were found in the mediterranean off the greek islands. Greek officials dismissed the report. If you analyze the situation ofperly, the possibility having this is higher. Down onus 320 went egypts coastline. It was en route from paris to cairo. Is North Atlantic Alliance asking for turkey to be the 29th member. The alliances under national parliament. The houses voted to allow for the department of affairs to allow medical marijuana to its patients. It is shifting alongside public sentiment. Im mark crumpton. It is now 6 30 in new york city. Paul allen has a look at the markets. Good morning. Beis not really seem to leaking through to the asiapacific. We look at new zealand. It is off 1 10 of 1 . Crude oils strengthened. It was down to 63. Also in australia, we are awaiting on the fiscal outlook. There is no nasty surprises afterwards. That will have an impact on that as well. We are now below that. Over in japan, g7 finance ministers are focused on boosting growth. That is some of what we watching. Im paul allen for bloomberg tv. This is bloomberg west. Im emily chang. To find theping right to be forgotten decision. Last year, the commission ordered google to leak search googleat led to announced that the it would avoid add geoblocking technology. Sticking with google and shifting our search back, googles annual developers new mence unveiled the box. This is googles way of stepping up the competition. I got an exclusive first look. It is the biggest Entertainment Market in the world. Show me how it works. This is the andrzej tv home. Android tv home. The more you watch content, the better these recommendations will be. It is relatively new in this industry. They also support hdr comment content. What is interesting about this is the approach of the content. It is probably working on collaboration with google. Providers aretent bringing them here. You have a huge number of games. You can only get it on andrzej tv. There is a wide friday of content offers that you dont get anywhere else. Plus you have a lot of google innovation in it. I can do this. All of the cool stuff around. This is the beginning. Do you have a google answer to google home . We have a very much were smart home strategy. We are launching a new feature. We are very excited about the home. Tell you about your International Expansion strategy. These great numbers came out about the me banned. You are beating apple. Most of them are in china. I think it translates very well. It is what this market cares about. We are seeing all this innovation. I think our focus is to select those products we believe people in this market are going to associate with in thinking they are highend products. That is where the angle at which were going to come. Are you ready for these challenges expanding globally . There are no challenges in particular. We have been in china for six years now. We have been in india for fears. We are just at the point where we are thinking about the next market. Not only because it is a very large market. Having a strong range here. Back with us, my guess for the hour at customer ventures. Use invested in twitch and periscope. You are very focused on video you video. Do you think his me box stands a chance . I think it stands at chance. U. S. Consumers like their apple iphone. They like it branded by the certain brands that they know. I wouldnt bet on it at this point. I think everyone is going to take the little slice. Apple has shown some fallibility there. Is a greatle tv product. I think they could do so much more with it. Other Consumer Electronics companies have shown really strong entries into living rooms. Im not so convinced yet that apple will run away from it. I think theres going to be a lot of different players. You have people from facebook lives. Lets start with that. Playerbook is a strong when they talked about how they see it. Has beenuckerberg vocal about video as a strong trend. Summit, theyof the said they were all taking facebook very seriously. Could stealink they from twitter . I dont know it will be one player who has live video and thats it. Smartk twitter made a investment in periscope. I just thought it was massive. I see that is a huge opportunity. I think they have shown just how much they can benefit from being part of twitter. What is the next big thing in cano selfmade people take the mantle away from hollywood and do a without the whole production expenses of the hollywood machinery. I think there will be a lot of sites that will proliferate. They will focus on shopping. We think therell be a number of things like that that are coming back. Some i get a facebook, some may go to paris. We are excited about that. Thank you for sticking with me. , juggling a Major Business strategy transition. What he is doing to revive the bottom line. Onestop we are watching is cisco. Chuck robbins explains his outlook. I think the data switching performance says that customers also buy into this notion of a hyper cloud notion. Robbins went on to say that earnings are not where they should be. Earnings, thish is the Software Maker known for Engineering Design programs. Was not untilhare the sales kind of soft. Joining us now is coral. Karl, thank you so much. This is away from traditional licensing. How far is that transition . We are pretty far into it. We are about halfway through it. We were arst started, flagpole into the tent. Every Software Company is going to be towards this transition. The transition is going great. That we wereort way better than expected. All things are good. Sales are down as you go into this transition. Issued, what would out again . We dont want to. This means people are moving to the new model faster. Will we got to report was the number of subscriptions way exceeded our guidance. Front andless up revenue goes down. I would love to have the same thing happened next quarter. This is the kind of paradox goal situation. After that, rings returned to normal metrics. You guys have been barely. Ctive how is that going to continue . We are serial acquirers. It is almost tiny. After really talented teams. We have identified the market opportunity. If we can get a great team that has been working on this. We will continue to do that. How is that played out . The degree of difficulty is much easier. Different fromy anything else. When you bring in a small team, you have to lead the effort. Withou have been dealing activists investors. How is your relationship with them now . You for them to disappear. I cant wait to have more of these guys. Hand, theyre going to regions and their ideas are good. A lot of discussions with activists is what kind of returns are you working looking for . Whether investing for longterm or not, one of the things you can do is to drive shortterm returns. Generally ceo is allens. Notion to the job instead. You told her not to . I thought it was the company that was becoming increasingly irrelevant. Talked. D i have i thought they had to do problems. The second was a strategy problem. There are a lot of who couldve helped on the execution. On the strategy i do not know how the Problem Properties that have become more relevant. Do you think yahoo disappeared . I think it is unfortunate but aty valued the company negative. It is crazy the valuation out there. It has a lot to do with the tax rate. The first thing they do is clear that up and separate their holdings that are invest versus the court business. Theink they can go back to business of running docket. Do you think it will survive . The really important question is what to say become . It has had a really long time. Emailot quite an aol address. When you get an email from yahoo , you are not talking to the hipsters. A company like that takes a long time to die. Thank you so much. We will be right back with more of bloomberg west. It makes project management and brings and 50 billion in revenue. It literally has no sales tax and that turns head. The strategy is highlighted in the latest issue of bloomberg businessweek. One of your ceos recently talked about sales tax being like adderall before an exam. Means that we are focused on something else. The adderall reference was an additive. If you dont have a sales tax, have you grow . Building a great product and by wordofmouth. That as aname way example of does not have salespeople. We build a product that largely dealt with health. Sells its self. I think it takes discipline and it is really hard to go back to when the company was born, it was born after the. Com crash in 2002. It can be a little shortterm oriented. It was focused on building a longterm, viable business. We focused on holding something. Building something. Have you stay relevant finding that were on so many different fronts . On fighting all three legs. It reports all of those capabilities. Isporting the universal need a big differentiator for us. There are a different kind of productivity tools. We are one company that has really focused on the network effect. We bring people together and earned what we need. That slack is also promising an enterprise. How do you keep them at bay . Slacker, chitchat and this is how people are communicating in real time. It is kind of a live, screen sharing capability. That is a huge market. Incumbentused on technology. A live communication server. That is a huge opportunity for both companies. Should move more communications go public. We have been thinking about it for a while. Hopefully that evidence shows that we have worked hard to build it. Thank you so much for joining us. And my fabulous guest host for the hour. We have made some pretty good calls in investing. Lets see who is having the best ever. Winner is applied materials. The stock jumped 8 . Company is saying revenue is ending in july and will arrive at 14 . It is up 6. 6 this year. We will catch up with the ceo tomorrow for an exclusive interview on bloomberg television. That is all today from san francisco. Thank you for watching. In in announcer from our studios in new york city, this is charlie rose. Charlie in Anthony Mackie is here. He takes on the role of Martin Luther king. Brain cant Bryan Cranston is here. Way. M is all the the Hollywood Reporter calls the film of fastmoving portrait and rights Anthony Mackie plays king with authority and soul. Here is the trailer for all the way. Anthony