the engineer has been released from the hospital and will be interviewed. a cambridge university study shows the use of body cameras good lead to a sea change in modern policing. 93% decrease in the number of complaints made against police when they are using the devices. in southeastern china, dozens of people remain missing and hundreds were evacuated halloween a landslide -- following a landslide. rome city council has back to the mayor's decision to reject a bid for the 2024 olympics. that leaves paris, los angeles and budapest in the running for the games. this is bloomberg. "bloomberg west" is next. ♪ emily: i have emily chang, and this is "bloomberg west." coming up does qualcomm want a , piece of the self driving revolution? details on a deal that could turn the chipmaker into a car industry contender. after losing out to microsoft and linkedin will salesforce , stop it from happening? we look at the complaints with eu regulators. and questions still linger about an upgrade to american voting technology. we will discuss whether ballot box technology is already out of date. first to lead. first, qualcomm said to be in talks to acquire nxp. this is according to the wall street journal and analyst speculation. they want 8%. shares of nxp surging in thursday trading. a busy yearfollow for m&a and the chip industry with $100 million worth of deals announced in 2016. we crunched the numbers on bloomberg, and you can see that record high activity there. here to break it down is ian king who suffer -- looks at the chip industry. how could this happen? this is something that has been speculated about for some time, and other targets of qualcomm have been looked at for time. qualcomm did not participate in that record year you just mentioned last year, did not buy anybody, and still has $30 billion in cash now. it is attracting quite a lot of attention. emily: does the deal makes sense? ian: the market likes it. again, as you pointed out, people are saying, qualcomm really needs to diversify away from its dependence on the cell phone market where it gets 90% of its sales. automobiles would be a good adjacency for them. on the other hand, people are saying, does qualcomm really need to spend that money on a company which is in itself in the process of digesting and acquiring? you will remember they just bought a free scale. emily: what about in the broader industry? we saw what looked to be the climax last year. we expect that to happen again this year, that much m&a? ian: a lot of the m&a they can about last year in the first half of the year was the thing being announced, instead of rumored, and the stock market reacting positively, and it seemed to have a positive effect on willingness to go forward with the deals since the stock market liked it. then we had a falloff as the market started to look at things in a bit of a more cynical view. today we have seen a huge pop, so clearly you have to take into account that these things create their own momentum. emily: all right, ian king who covers the chip industry for bloomberg news, thank you so much for that update. now to another player in the semi conductor space, skyworks solutions is a major provider from companies like apple. and the chinese smartphone maker xiaomi. but they are looking at opportunities and major shifts for semi conductors. liam griffin joins me in the studio. so you have been ceo for two months -- four months. you were at the company for two years before that. how do you intend to make your mark? guest: i have been with the company's is 2002. i been ceo here just since may. what other the things we loved about this market is the tremendous ecosystem we support. if you look at what really drives our business, look at alibaba, facebook, it refile -- he recoils -- requires mobile hype every year. we are seeing a rich content. managing a massive amount of global data and facilitating that within bite-size pieces. emily: does that mean more business? liam: yeah, it means more business. if you look about two or three years ago when we were at the 3g or 4g phone, we have explosive architectures with more frequency bands, more amplification gps, all of that , content are things we do well at sky works. emily: talk to me about this transit. what do you think about the potential sky works --, excuse me, qualcomm and nxp tie up? liam: we look at mna with a discerning view. we are extremely aware of the money that we have earned at sky works and the cash that we have. we have a powder cash -- powder house of cash. m&a is a great opportunity, but our core business is so good that we're finding that with research and development. powder,e do have the the appetite, the right deal comes along, we will get it. to microsoftst out for $2.5 billion. looking forward, you have a $13 billion market cap. you are in the mid range. do you see yourself being a predator or prey? liam: definitely, definitely predator, no question. no question. we did a deal with panasonic, we carved out there high-frequency filter technology. we now have a 3 billion unit factory in osaka. in to bring wi-fi 2011 technology into our portfolio. that has been a home run. we did a local deal here in silicon valley to bring in power management. what we do uniquely is rather than sell those parts independently we integrate them , into these elegant solutions. exactly what our customers want today. emily: if predator, what is the strategy? what is the end goal? liam: the end goal is to find acquisitions that augment our business. emily: like what? liam: opportunities that play along the court of connectivity. can we round out this franchise , and enhance that and move that into iot? kim emerged with some of these emerging opportunities like autonomous driving? we're seeing tremendous need for data and speed. and lower latency. emily: given the size of your company, do you see sky works as a company that can afford to sit -- can't afford to sit on the sidelines? liam: yeah, we are a significant player. $13 billion market cap. every corner that we have not done a deal, we generate more cash. it puts us in a better position to do i do not think we are one. going to be on the sidelines forever. emily: nearly half of your sales are going to apple and there is , concern about saturation and apple particularly -- their place in the market, they are losing steam. how do you plan to address that? liam: i think the high-end of the market has been phenomenal for us. if i go back to this ecosystem that we talked about the amount , of mobile data and commerce through mobile devices continues to increase. the premium players really put performance first. performance first. in that case, the leaders here in the u.s., china, you mentioned huawei, they look at high-performance technology and architecture driving this data. for sky works, that has been great. we are in r&d heavy company, we manufacture most of our product in-house. we have our own ship design, factories, really think about the high-end and augmenting our technology with that. emily: do you plan to diversify away from apple? liam: we'd would not want today for so way for many -- diversify away from any customer specifically, but we want to grow our market. int is one example where you have a market of things that has been around forever, and the i part is pretty that the internet. it is a portfolio of opportunities that we have been addressing successfully anything from thermostats, appliances, may be a health and fitness watch. all of those work well for us. emily: what about things like the amazon echo? or such devices? liam: yes. emily: what about cars in particular? this is such an exciting industry right now. we are seeing this qualcomm -nxp deal happening there. how do you see things changing in the chip industry around automotive technology? liam: yeah, i think automotive technology is going to be phenomenal. big, bigot been a player in automotive, but in the last four years, we have been closer to the market, and typically with our solutions in the entertainment. the next step is if we go to autonomous driving, that mobile pipe has to expand tremendously. data rates go up, latency has to be almost instantaneous. there is safety issues, real-time control. it will be a big step up for the whole industry. i think an activity is going to be a key driver. emily: we talked on some of your customers and some of the players in this industry designing their own chips, making the run silicon -- -- their own silicon -- what does that mean for you? frontwe have been on that for a while. we have two significant -- check design, filter factory in japan, significant assembly and test facilities in mexico. when it comes to trying to chase is done the markets, i like our chances. emily: what about long-term margins? do you plan to focus on margins or increase investment in r&d? liam: we can do both. if you look at the last few years, our margins have come up considerably. even current year fy 16 we are up 280 basis point really kind of slow revenue. if you look at our r&d investments, it is learning we get by collaborating with the players in this industry the mix is more effective. -- that makes us more effective. emily: last question on internet of things, a space of for grabs, a lot of devices have yet to prove themselves, but in the chip industry who do you see as , being the leader in internet of things? liam: we are a leader in the connectivity portion, and again if you think about what is unique about this, it is bringing these markets that have been wired to wireless world, so our technology will play in all of these applications from wi-fi to bluetooth. around that there are some sensor companies, power management companies at play. it is a great space for just about any significant from. -- firm in some eyes. -- firm in semis. emily: thank you so much for stopping by. great to have you with us. in today's revolving door, microsoft says a key architect for ai is leaving the company to health issues. he ran both office and search groups in his decades at the company. microsoft will create a new research group under another veteran. months after losing out on a bed for linkedin salesforce is , urging eu regulators to scrutinize microsoft takeover of the social network claiming the deal threatens competition and privacy. the deal, microsoft's largest ever had already been cleared in the united states but has not been officially submitted for european approval. coming up, apple is making moves into health care. we will give you a preview of what the company is working on next. this is bloomberg. ♪ ♪ emily: samsung is apologizing to chinese customers after new complaints of combusting note 7 smartphones set off more safety concerns. earlier this month samsung recalled 2.5 million phones on reports of batteries bursting into flames, but samsung says the chinese models were safe. they did not recall devices there. apple searching for new ways to drive revenue growth, expanding its presence in health care. new functions planned for a new iphone health kit app would make it more like a diagnostic tool than just a fitness tracker. their recent health tech acquisitions, they have assembled a team of experts working on two problems, transferring data safely from one hospital to another and helping doctors analyze mountains of data about their patients. joining me now to discuss these developments and explain what it could mean for apple's bottom line is bloomberg reporter alex apple for us.s so what does it mean for the bottom line? alex: we do not know if they will monetize this directly but if you have an iphone and you have all of your music on the iphone, it doesn't give you much incentive to switch to an android. there is a similar logic behind this. if you have all of your data stored in your iphone, it makes it very hard or increasingly difficult to abandon your iphone and go for another operator. emily: talk about how apple is expanding. alex: at the moment, health kit is a place to store data. if you have a watch, maybe your heart rate data as well. but it wants to make is a repository for all of your information. it might be you have other wearables. if you are a diabetic, if you have high blood pressure, you might have a blood pressure monitor. that will feed into your phone. not only that, but they made an acquisition a while ago to help them pull data from hospitals. putting all that stuff into your phone is all well and good, but if you present it to a health-care professional, the response is quite often going to be, what do you want me to do with it? it is a huge amount of information, does not tell you what it means. emily: in the turn this into a lucrative business just like itunes and the ipod? will the same happened for health kit based on the watch? alex: there was an interesting analogy based on this acquisition apple did with a company called gliimpse, in engineer said that their vision for health care was similar to the ipod. a music playing device in your hand, and from there they built the whole music business which was of course itunes itself. the analogy you infer from that is the watch and the phone might be taking step data, and that makes it easy to have all your health information stored on the devices, and then they layer on levels of complexity on top of that. emily: they now also have a partnership with an who is subsidizing the watch. what else does that open up? alex: they will subsidize the watch, give it to their employees and subsidize to some customers. we don't know the scale of that. they have 23 million in the u.s., policyholders. probably not will be 23 million. maybe thousands to begin with. the biggest question has always been with the apple watch. how are they going to break the delta selling watches? is there ever going to be a 50 million unit device? it is $300 for a watch. that is usually something which is for life and that will last a , few generations. this implies if health insurers are incentivizing policyholders to have this stuff, it makes it likely that they will sell a lot of these devices to incentivize people to reduce their exposure. emily: so 6 million watches -- alex: [indiscernible] emily: so how much of a sales bump could we see? alex: in the short term, not colossal, but if it proves to be successful, then we might see other insurers to a similar thing. then you will see big numbers. emily: alex webb who covers apple, thank you. coming up, 16 years ago the term hanging chad first enter the political lexicon here in the united states, but has the voting system, have they gotten any better since the electronic voting revolution or lack thereof? this is bloomberg. ♪ emily: a story we are watching , the owner of a majority of cbs and viacom voting stock is proposing a merger of the two companies. sumner redstone's national amusements as they will not consider a takeover by a third-party. cbs and viacom split up a decade ago. since then, cbs has flourished with television ratings but viacom's cable networks have slumped. in the 2000 presidential election, underperforming voting equipment introduced the world to the hanging chad. it also led to congress passing the help america vote act which provided him was $4 billion -- provided almost $4 billion toward modernizing putting technology. but that turned out to be easier said than done. in the latest edition of the theness week, we discover computer voting revolution is buggy and obsolete and plagued with mishaps. so there are out of date machines from california to florida. talk to us about the extent of the problem. >> this is one of those stories of good intentions and ready bad unintended consequences. congress in 2002 with the help of the american vote act through almost $4 billion to move the entire country onto a computerized voting. what has happened since then is you have developed a strange kind of niche industry that found out there was not actually a lot of money in computerized voting so instead they put a lot , of money in different elections with the technology than it is being used to run his -- those elections on is in fact very outdated. it was built from the 1990's or even earlier, and is found to have a lot of critical bugs in it. the problem is the counties that use these $4 billion to purchase all the voting machines do not have any money to replace it, and there is not really great technology to replace it with. so you got a lot of really bad background sort of testy equipment out there, and that is about to comply with one of the most contentious elections in u.s. political history. emily: and obviously having a electronic voting machine sounds great except that you know in comparison to a traditional machine, you could lose the vote if something goes wrong. are we better or worse off than 2000? right, because at least with the old machines, you had a piece of paper that said, this is what somebody voted on. with electronic voting machines, there are five states and parts of 10 others that don't use any paper at all. it is just ones and zeros. so if something goes wrong, it can be hard to reconstruct that vote. so think about florida with the hanging chad, trying to figure out software that is 20 years old, and the servers have gone down or crashed. the possibilities are really bad. as the story that we wrote points out, you really got a problem of already a lot of distrust in this election, and technology that is capable of inflaming that distrust in a really serious way. emily: what is the worst case scenario here? could these machines be hacked? is the worst case then simply failing? mike: you know, they have a lot of security flaws. the good news though is that it is really hard to hack enough of these things to change the election. that is largely because the u.s. votes are counted at the level of jurisdictions which are counties and townships, and there are 7000 of them. even hacking it up in swing states would be really hard. what might be worse is you just get the kind of systemic technological failure in a few key places, and people believe that attacking or manipulation -- donald trump has already said that he thought the election was going to be rigged. the democrats have said that the russians are trying to influence the election up and on till election day. if something goes wrong technologically in a few places , is going to be really hard to sort out. and in the meantime, it is going to be filled up by a lot of fear and anxiety, thoughts somebody is trying to fiddle with the system. emily: it is an incredibly scary situation and a fascinating read in this week's edition of bloomberg businessweek. mike riley, thank you so much for joining us. business this story in week online and on newsstands and hear from the magazine reporters every saturday and sunday on bloomberg television. coming up, mobile advertising continues to grow and outpaced legacy platforms. so what is next? we look at the takeaways. and if you like bloomberg news, check us out on the radio. you can listen on the bloomberg bloomberg.com and sirius xm. this is bloomberg. ♪ hey how's it going, hotcakes? hotcakes. this place has hotcakes. so why aren't they selling like hotcakes? with comcast business internet and wifi pro, they could be. just add a customized message to your wifi pro splash page and you'll reach your customers where their eyes are already - on their devices. order up. it's more than just wifi, it can help grow your business. you don't see that every day. introducing wifi pro, wifi that helps grow your business. comcast business. built for business. >> the top story this hour, the best order for asian stocks in 2012 is ending on a sour note, concern about deutsche bank's health is the nerve to investors. shares are among the biggest drag on the region now. it was a record low in the u.s. after bloomberg revealed 10 hedge funds cutting exposure. indicatingauge expansion in september. 50.1, in line was with estimates and up from 50 in august. with the economy is for now and prices in major cities soaring, they could switch from easing to tightening. the offshore yuan has strengthened past 6.72 to the dollar. it is into the imf basket of currency. it will become one of five global reserve currency's along with the dollar, the euro, the pound, and again. -- the yen. they are hoping to boost their global prestige with a two-year low. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. you heard it, it is financials leading the markets. what is the latest? shery: the yen has been weakening for four consecutive sessions. 101.46, but stocks in japan not budging, at least not in the morning session. they declined one point, 5%, now 1.4%. financial shares heading for 30% decline this year. i want to take you through some commodities. we are seeing basic industrial metals are retreating from their highest levels in more than a year. copper, aluminum, they all retreated 0.4%. we have private data out of china for september showing manufacturing did increase. it helped those declines, but still in negative territory. iron ore has also declined in shanghai, losing more than 2%, and is heading for the first quarterly decline this year. ore areoducers of iron declining today and remember this one being upgraded by cigc. and china commodity exchanges are closed next week due to a national holiday in china. ♪ emily: this is "bloomberg west." i am emily chang. the new york conference is wrapping up this week. advertisers around the globe meeting to discuss the future of the industry in a mobile domino world. this taking place one week after facebook admitted it has been miscalculating its video metrics for advertisers. joining us now from new york, harry cartman cargo, which , creates mobile specific ad campaigns, and i reporter sarah frier, who was at adweek all week long. harry, i will start with you. what is your biggest takeaway about what is going to define the ad industry over the next two to three years? >> mobile has been the big leader in the market. if you look at growth in the market, it is the only area where there has been major growth now. it is exciting. when we look at ongoing rates across the industry health care , is growing at 26%. retail is growing at 9%. mobile is going at 38%, it's like the fastest-growing area of the industry right now. emily: this facebook snafu over how they calculate their metrics, how much did that bother you? harry: i mean it's a real , problem. if you think about it facebook , is supposed to be the gold standard in the industry. you are supposed to be able to trust them. they more -- run more money other than google they run more , money than any other major media company in the industry. if you look at major media companies, they get such a small share of the dollars, i think $0.85 of every dollar in mobile and in digital overall is going to facebook and google today. and so for facebook to fall short in terms of their self metrics, really what you are saying is, can i trust this company or not? the good news is they've done integrations with third parties, like mode, and hopefully the industry will push them to be third-party audited moving forward. if you get that, there will be an apples-apples comparison between facebook and all the other major media publishers as well as snapchat and others. emily: now sarah, you cover facebook, twitter, you sat down with adam, the ceo of twitter at adweek. there is a lot going on. you have reported that disney is interested, salesforce is interested, alphabet even potentially interested in buying twitter. there is a lot of skepticism around the future of twitter as a platform that can continue to grow. what were the most significant things that adam had to say to you? sarah: well adam is convinced , that live video will drive the growth.f twitter's potential, potential, potential. this is the latest product that has potential for twitter. you know we still haven't seen , it in the numbers, but we know adam bain is confident that people are tuning in for nfl. people are tuning in for the debates. 2.4 million for the last nfl game. we will see what they have tonight, and this is really the future of twitter's growth strategy. they are trying to get not just the social media budget, but the video budget that would otherwise go to places like youtube and hulu. emily: so harry facebook and , google dominate mobile advertising. how much potential do you think twitter actually has to take a more significant cut have that? harry: twitter has been one of the key companies in social. if you look at snapchat, facebook, instagram, it has been one of the key leaders. one of the things twitter needs to do, and you saw with their acquisition of mobile, is make it much more self service and easier to buy twitter for lots of third parties, but we call the long tail advertisers. you see with facebook's announcement this week that instagram will be available self-service. that's a signal to the market that self-service is the key. it is the key driver to growth in the market itself . when you look at facebook's revenues, when you see 25% comes from brands. 75% comes from small businesses and app downloads. when you look at those percentages of a part of the market, you realize twitter and snapchat and all the major publishers and media companies out there, they need to be able to self-serve and allow all the longtail third-party advertisers access to their platforms. emily: sarah, did you find that people are taking snapchat seriously as an ad platform, or should i say snap, spectacles and all? ,sarah: people are definitely interested to see what they do with the future of their ad platform. they are expected to open up their ads api soon which would allow people to build ad products off of snapchat, which would be a very big revenue driver for them. the thing to worry about with snapchat is they measure their video views different than facebook, which measures some different than you to. -- youtube. there is a common denominator for people to evaluate whether their videos are doing better on one platform versus another. snapchat seems to be determined to play in its own sandbox and some advertisers are little bit frustrated. why can't you just go with the standard of the market? you are new, you are trying to get budget. we don't want to do something completely different for snapchat. that said they are very excited , about a millennial audience, the younger audience that they can target. emily: harry, how do you feel about snapchat so far? harry: the team over at snapchat is great. philippe browning, without cbs, -- was at cbs, he's a close friend of mine. he's one of the best in the industry. elon came over from an investment bank. he is really thinking thoughtfully about the business. when talking to him, he basically said he is going very bullish about the growth of snapchat's advertising business going forward. they have a lot of work to do, obviously they are starting out and building their overall ad sales team. it's a brand-new business for them to get into ads. but given the massive amount of teenagers, tweens, and even millennials using the platform, i think there's a lot of growth and a lot of interest in investing in that platform. emily: all right, harry cartman, ceo of mobile ad tech company. sarah frier bloomberg news who covers facebook, snapchat and twitter, thank you for joining us. coming up, elon musk wants a city on mars. so which companies will help him get there? we will dig into the private space industry next. and do not forget, too in this weekend. we will bring you all our best interviews from the week. including our expect -- exclusive intervention -- in interview. "the best of bloomberg best" this weekend on bloomberg television. this is bloomberg. ♪ emily: mercedes-benz is taking a page from tesla's playbook. the daimler unit said thursday its planning to release several battery-powered cars under its new eq brand. eq, which stands for electric intelligence will also offer , energy stores for homes and charging services. the daimler ceo says the move is part of an initiative to embrace new technology across vehicle segments. by 2025 the automaker will have more than 10 fully electric vehicles on the market. bloomberg's carolyn hines sat down earlier at the paris auto show it has all the details. caroline: everywhere you turn here in paris, new electric vehicles. the race to take on tesla. behind me, the new concept id by volkswagen. we have spoken to the chief renaultve with citroen, it unleashed, even general motors european unit as well unfolding its new electric vehicle. and not just electric vehicles, but technology in general. volkswagen is announcing an entirely new unit focused on the future of driving. it seems as though mobility is the watchword, autonomous vehicles. we spoke about that with the chief executive of daimler. they own mercedes-benz. he really feels that the big competition now is the tech giants as well as the autos. >> we are seeing the digital world, they are taking possession of the automotive world and vice versa. had this drives -- and this drives four main, if you want to disruptive, paths into the future, and this is connectivity in the first place, the internet of things. it is autonomous driving technically. it is sharing, and it is electrification. caroline: electric vehicles and technology, this is at the forefront of everyone's minds in paris at the auto show. caroline hines, bloomberg news. emily. emily: that was bloomberg's caroline hyde from paris. from auto tech to space travel, now spacex ceo elon musk calling , for a new era of interplanetary travel, and even a colony on the red planet. now, it is true that back here on earth, the private space industry has taken off in recent years, with launch costs coming down and everything from satellite tech to imaging capabilities taking stride. joining me now to dig deeper into the private space industry is one of the earliest investors in the field, david cowan. first of all, david what do you , think of elon's plan to colonize mars? is it realistic or crazy? david: first of all, it is super exciting, and i think that is the point. the most important objective of his announcement is to galvanize support for these for this idea , of becoming a multi-planetary species. i think that he knows the idea of actually getting people there within the next 10 years is not really going to happen. i think that's why he's calling the first ship heart of gold, a tip to douglas adams' improbability drive. but he's taking on some important steps to solve the very, very difficult problems around launch. emily: we hear so much about elon musk, jeff bezos, richard branson. beyond them, who else is out there in this industry? where do you see the most opportunity? david: really the opportunity for innovation is coming from the new technology that emerged in the last 10 years. what has happened is there is now this inversion that has gone on in the aerospace industry. through the last century, innovation of space meant making satellites bigger and bigger. and that meant that they were more expensive, harder to launch, so you had to radiation hardened them give them , redundant systems. the whole industry collapsed under the cost and weight of those. it got into the billions of dollars. the whole industry collapsed. it was actually a very dark and dry time for the space industry. so in that vacuum, these philanthropic billionaires came in with a sense of mission, but more importantly, students from cal poly and stanford figured out that they could get their sensors into space by using cell phone parts, and create these very small cube sets, and suddenly space became cheaper. and 50 years of moore's law was there to be harvested. and now you see companies like , spire and others taking advantage of this cube set platform to really disrupt the entire space industry. emily: do you think it's possible that dark time could defend again once people realize this is a really hard problem and that maybe it's just too , expensive and too hard to get there? just like it did once before. david: right. we are talking about two different things. one is getting to mars and the other is the development of the space ecosystem. emily: right. david: getting to mars is very difficult, and elon did not even talk about many of the challenges around the human factors. emily: like what? david: there is radiation danger, which he dismissed way too quickly. there is impacts of space on how we live, our vision, our psyche, on our organs. these are human factors nasa has been working on for a while and they are not figured out yet. and then, he is also trying to take a shortcut. if elon were to wait for the ecosystem to develop, there would be fueling depots in space. we are going to figure out how to mind the moon and mine asteroids -- mine the moon and mine asteroids. he won't have to send his boosters back-and-forth bringing fuel into space. it will be cheaper and safer if he leverages the ecosystem that the rest of the startup community is really building in space now. emily: ho do you weigh the risk -- how do you as an investor really weigh the risk versus reward here? obviously getting to mars is one thing and investing in space in general is another thing. but it is still a hard and risky thing. how do you decide that it is worth putting your money here when you don't know if it will be profitable? david: you know we take risks on , very, very iffy startups that are doing much less important things like helping teenagers share videos with each other. this is worth taking a risk on. there are really, there are the space ventures like elon's that are focused on the long-term social missions of preserving our planet from asteroids, preserving the species by becoming multi-planetary, advancing science. companies can be profitable only if they are able to sell their technologies to the government, to nasa, in order to advance those missions. there are a lot of other areas where you can see economic value much more quickly. that primarily today is in communications and planetary awareness, sensors that are keeping track of what is going on on earth. the ozone marine traffic, all , kinds of sensing and imaging. then there are new applications being developed, like pharmaceutical research and zero gravity, asteroid mining. lots of other interesting areas that i see every day. emily: so from a business perspective how big a business , do you think this could be? how big could returns be, or is it really largely unknown? david: like any new, it emerging market, the answer is we don't know. but the overall aerospace industry today is in the hundreds of billions of dollars. it's a very large industry just waiting to be disrupted, just like automotive is waiting to be disrupted and if silicon valley comes in. and invents new business models there. emily: it is fascinating stuff. we will have to check in with you in 10 years to see how it's going. staying in space now blue , origins test dummies are in for quite a ride next week when they performed this in-flight test. jeff bezos space series will launch the flight. they will test the reusable launch system new shepherd and how it responds in emergency. if all goes according to plan, 45 seconds after liftoff the crew capsule will abort, shooting away from the rocket. it will parachute to safety. the launch will take place next tuesday and be broadcast live on its website. coming up, the real-life shazam for everyday noises in our monthly tech series. how the world -- hello world. we had to the heart of cambridge and introduce you to an ai startup like no other. and tear in tomorrow when jason furman, chairman of the u.s. council of economic advisers, joins bloomberg go. 9:45 new york time. do not miss it. this is bloomberg. ♪ emily: tesla keeping up the legal fight to sell cars without dealers in any state banning the practice. the electric car maker sued michigan last week for the right to open its retail stores there. the tesla vice president said direct sales were stymied because of traditional automakers' holds over michigan 's legislature. but o'connell said they will fight and go back to the line to the factory locations. now to our monthly tech series, "hello world." bloomberg's ashlee vance takes a fresh look at the explosion of technology around the globe. this time, he heads to england to find out how the country is fighting to inject new life into its tech industry. first stop, cambridge, to visit audio start up analytics. check it out. ashley in the heart of cambridge : there is an ai startup like no , other. it's called audio analytic, and you can think of it as a type of shazam for real-world sounds. >> we use intelligence to allow -- artificial intelligence to allow smart phone devices to recognize a whole range of different sounds. you can make your house a bit secure by detecting glass windows being broken and turning on lights to scare away the burglar, taking active protection of the things you care about. ashlee: so what we have here, what is all this? >> have a couple of devices. they make sounds, they detect smoke alarm, they detect the smoke alarm on their. nobody is at home. they leave a message. another sound is glass break. ashlee: yeah. >> you can see it says window , broken. ashlee: what is the science behind all of this? >> we have to do a whole bunch of innovation in terms of understanding sounds, how to detect them, how to have a machine understand them. even if we take a simple sound like a smoke alarm. a beep. now we have got two of them going, beep at different times. with a whole bunch of background noise going on. that's a big ai problem solved. ashlee: computers have to be trained to distinguish one sound from another and to learn the unique signature of say glass , breaking. audio analytic trains its software by presenting it with examples of a particular noise. of course, no two brekaing windows sound exactly alike, so these guys get to relieve stress by breaking a lot of glass. how many windows have you had to break? >> windows, we have literally filled warehouses for it different sizes, different , thicknesses, different types of glass. ashlee: how many smoke alarms? >> we literally bought all the smoke alarms you can find on the marketplace and indexed towards those. that was a huge undertaking. ashlee: the software can also recognize the sound of a baby crying. hi, daisy. hi. and as luck would have it, we found a cute, hungry baby on which to experiment. >> you can see on the screen it is affecting the baby crying. ♪ ashlee: audio analytic software ships inside a number of smart home products. and the company plans on adding many more sounds. >> here we go. ashlee: but for now, it's the perfect technology to discover. when an angry baby has thrown a smoke alarm through window. >> i'm sorry we have to do that. no. ashlee: she was very sweet. [laughter] ♪ emily: bloomberg's ashlee vance there. you can catch "hello world" on friday, 9:30 eastern time, or that full episode at bloomberg.com. and that does it for this edition of "bloomberg west." make sure you join us tomorrow, will be joined by the nea managing partner. that is all for now. this is bloomberg. ♪ it's noon here in hong kong. concerns over deutsche bank. financial shares are dragging. adrs at a record low after hedge funds cutting exposure to deutsche bank. beijing is hoping for a boost in the yuan's international usage. japanese cpi fell for a sixth straight month in august with healthful