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tv   Bloomberg West  Bloomberg  May 14, 2015 8:30pm-9:01pm EDT

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emily: is the writing on the wall for the nsa dragnet? we will look at that fate of the usa freedom that. -- freedom act. i'm emily chang. this is "bloomberg west." coming up is walmart ready to , compete with amazon? what the company would need to did you win over prime users. plus, a top google executives. what does rachel whetstone bring? kim kardashian visits our studio. the video game and reality star is getting us her secret to success. all of that ahead on "bloomberg west." breaking news out of symantec. a disappointing forecast.
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the security software maker saying it wants to develop more modern anti-hacking technology. let's go straight to cory johnson. it's about time, isn't it? cory: they might argue they have been making this is the very beginning. $1.6 billion in sale profit, 43 since that was expected. i just. most importantly, that is a decline. it is a percent less than the previous quarter. the company in the last six of the seven quarters have seen sales decline. predicting the same going forward in the next year. they are facing a lot of new competition. they need new kinds of anti-hacking technology. this company came out with a report saying hacking was up on the 40% year over year basis. companies are using tools on the cloud. they are hiring consultants to
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come in and do those things. these are not businesses where symantec is seen as very strong. they are trying to tailor its offering and cut costs in the process even as we saw sales declining on year-over-year basis. emily: we see hack attack after hack attack. presumably, it is the failure of symantec in many of those cases. thank you very much. staying on cyber security, the big debate over government surveillance continuing royal. the house passing a measure that would stop the nsa mass collection of phone records. your data. now the fight moves to the senate. the usa freedom act has the support of the white house, not everyone is so happy. former nsa and cia director general michael hayden writing the usa freedom act is exquisitely crafted to hobble the gathering of electronic intelligence. it is nsa reform that only isis could love.
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while the bill would make it illegal to collect phone data in bulk, information would still be held by telecommunications providers in the nsa would be able to access records with a court order. lawmakers have until june 4 two -- june 1 to find a compromise. for more on this i want to get to tom kellerman, and shawn henry of cloud strike. obviously this doesn't roll back the dragnet completely. someone stronger action taken. what do you want? guests: i want security and privacy. you have a balance of those things. you're never going to have 100% privacy and security. that is impossible. if you have one hundred percent privacy, there are people going to get hurt or killed. the lawmakers are looking at this as pandering to their constituencies and focusing on
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the privacy issues, and not necessarily weighing in the security aspects. it is important we not throw everything out completely without looking at security, where it has taken us, and the value it brings to safety of americans globally. emily: tom, you were obama's first cyber security officer. are we compromising safety here? guest: 20 in a fight what the weaknesses are and anderson with the vulnerabilities are, i agree with sean and that there needs fisa reform. to be is important for security that we maintain that preeminence of the nsa. to protect americans against electronic threats of today. emily: how do you expect this to play out? our phone records are still rolling in to the nsa. although some provisions in the
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patriot act are set to expire soon. that was a basis of the program in the first place. how does this play out? shawn: there is going to be some middle ground. there has to be accountability and oversight. our government needs to be held responsible for what they are doing in terms of collecting and how that is used with access to the data. that is critical. taking away all authorities to look at the data, to use it, but pieces of the puzzle together, to disrupt terrorist attacks that is a huge challenge to national security. there will be some middle ground. potentially with access through the carriers and having them how's it. i don't know that is fully effective but that may beware this lands in terms of lawmakers willingness to acquiesce in terms of privacy issues. emily: the phone records were
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exposed by former contractor edward snowden. i recently introduced -- interviewed a man at cam.com, a man who was concerned himself with these programs. he's the founder of megaupload and the target of the biggest copyright case in history. i asked him what his message for president obama is. take a listen. kim: what is my message? it would be nice if he delivered the change, if he didn't spy on the world population. emily: tell me about your relationship with edward snowden? kim: he will be remembered in history as one of the great people of our time. i think he is a hero and i admire him for his courage. emily what about julian assange? what is your relationship with him yet ofhim? kim: what julian assange is doing is putting a spotlight on the secrets. emily: you tweeted you were going to be hillary's worst nightmare. how so? >> it is probably more julian. i am aware of some of the things that are going to be roadblocks for her.
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if i can provide transparency with these people and make them part of what the internet party stands for, i will be happy to do that. emily: julian assange is going to be her worst nightmare? how so? kim: he has access to information. emily: what information? kim: i don't know the specifics. emily: why hillary? kim: she is an adversary to internet freedom. and she sent your -- emily: he signed your extradition request. and you have a bone to pick with her. kim: i like hillary. i like obama. it is crazy all of this happened. emily: should hillary be worried about julian assange? i will to bring back my panel of experts. tom kellerman obama's first
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cyber security officer and shawn henry, at cloud strike. what do you make of his remarks? and what julian assange may have on hillary clinton. shawn: he is implying he has gathered public in -- information that is not public. and underscores the sense that nothing is private anymore when we are talking about data being kept electronically, how they store it, how they transmitted. -- transmit it. it is not safe. it is not secure. i don't know, when he talks about internet freedom, if he is talking about everything being insecure people not having privacy. that sounds like privacy being breached in a way. perhaps hypocritical. but i think that when we are talking about data being kept electronically, it is never going to be secure. we have two up and recognize that. emily: we don't know what julian
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assange has on hillary clinton. but go ahead. tom: there is an assumption made that the u.s. is a monopoly on being big brother. there are multitudes of government agencies from other countries as well as hacker groups and crews that have the capacity to maintain omniscience, to be telepathic as it relates to our personal comings and goings. at a minimum we need to respect the fact that without cyber security legislation, we will never maintain the privacy of nationstates and criminal groups that abound. emily: what does this mean for companies like apple, google facebook, companies whose trust in them was undermined by the revelation of edward snowden? shawn: those companies, certainly everything i have seen publicly, they recognized consumer privacy as an issue they want to hold closely.
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i think that this process is a growth process for a lot of people. how data is maintained and stored. how it is shared. how companies or governments want to access it with subpoenas. this is a maturing process. it is an area people have a lot of experience in. we absolutely have to because the data is so sensitive and so critical to our economic and national security, companies are going to have to work closely to make sure they are abiding within the law and protecting the privacy of customers. emily: some people have been speculating that julian has some of hillary's e-mails. shawn henry, thank you for joining us. it is time for a status update. when i sat down with kim dotcom, one of the big questions was the
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status of piracy. it is a problem the entertainment industry is battling. there may be a light at the end of the tunnel. here is what we found. we have come a long way from napster and megaupload. it has been just too easy to of live music movies, and tv shows to the internet and share it illegally. take it from the so-called pirate king himself. kim: if you are a hollywood studio and you release your content in one country first the united states, and roll it out over a couple of months, and other countries along the world, and expect the internet community in these different countries to wait for the release. emily: "game of thrones" is the most pirated show in the world. the latest episode racking up 2.2 million illegal downloads in just 12 hours. that said streaming sites like spotify and netflix are said to actually be reducing the amount of piracy out there because they make it easier to watch and listen to what you want, when you want legally.
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then there is new technology fighting piracy. this is how the motion picture association of america puts it. youtube content id tool is one good example of a proactive tech driven solution that helps creators protect their work. joint initiatives are critical to ensuring that movies and tv shows continue to flourish online. twitter is life -- twitter's life streaming periscope made headlines. the ceo tells me he is working on it. >> part of our policies and how we craft products can make sure it is not a prominent part. emily: we went all the way to new zealand to interview kim dotcom. he is currently awaiting an extradition hearing. that is set for september. he does face 88 years in prison -- in prison. you can see my full interview tonight, 7:30 p.m. eastern and pacific. on "studio 1.0."
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up next the queen of selfies , kim kardashian tells us what makes her videogame and $90 million smash. ♪
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>> i'm pleasantly surprised at the success of the game. i see how hard the team works to update the game constantly and make these changes, to try and be current that it makes sense. i see what goes on behind the scenes. emily: that was kim kardashian west speaking about the hugely successful videogame, kim kardashian hollywood.
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the mobile game has been downloaded 33 million times and brought in $90 million. i even got a chance to snap a selfie with the queen of selfies. that was a little exciting for me. she was sweet and sharp in person. in this week's edition of wiring the world we focused on the future of fuel. the scientists may have found a breakthrough in ancient bacteria in new mexico. reporter: the desert can be a lonely place. i'm driving through hobbs, population 70,000. most people make the money off oil. oil isn't the only fuel in town.
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i found fuel developer jule, supported by $200 million in private equity and venture debt financing. it is making renewable ethanol and diesel using just sunlight, carbon dioxide, and bacteria billions of years old. search is ceo. he was skeptical when she asked him to join. six month into the job, he is a convert. >> i don't believe anybody can claim to be carbon neutral. reporter: if they succeed, it would need field that doesn't need to remind, fracked, and no co2 emissions.
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this is where it begins. this freezer at -80 degrees celsius has files of bacteria. one vial contains 10 billion bacterium. one. they are thawed and fed for two days. >> we start to get them happy. this is easy living for them before we get them ready for the outdoor world. reporter: cool spectrum light for four days. >> we bring them under this special light that will limit -- munich the life they see outside. reporter: this replicates the sun. then it is over to real sunlight. the bacteria are exposed to the sun for 8-10 weeks where they make fuel. today we harvest. finally what we have been waiting for. this is ethanol. the efficiency amazes relative
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to other options. an acre of corn makes 400 gallons a year. wood-based materials, a few thousand. an acre, 25,000 gallons each year. the efficiency can be replicated around the world. in 2017, jule aims to replicate these batches for a 1000 acre facility. until then it is slow and steady growth. bloomberg news, hobbs, new mexico. emily: silicon valley's revolving door swings again. uber poaching rachel whetstone. she is taking the job of another high-profile hire. he is moving into a bigger picture role advising and joining the board. whetstone comes with a serious record. she has handled numerous
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antitrust investigation across two continents and multiple consumer privacy inquiries. her challenge is getting in front of uber's local regulatory hurdles from france to india as it expands. coming up, a prime target. walmart sets its sights on amazon with a much cheaper delivery service. will it work? that is next. ♪
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emily: walmart is challenging amazon to a subscription service smacked down. -- smacked down. down. the world largest retailer testing a shipping program for $50 a year. it is restricted to a few markets but walmart has left a lot of questions unanswered. it should amazon be afraid?
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easy post ceo is here. we also have greg who covers walmart and amazon for ammo core. jared, i want to start with you. amazon has been doing this for several years. that's amazon have this in the back or islam are going to be serious competition? guest: walmart does five times as much revenue as amazon. they have significant experience. that is 2.5 times. as many good at apple. emily: the walmart service is going to be three days slower. they have one out of six million products. guest: it'll be 11 day slower. but the important hook is you know it will get there. typical free shipping you don't know when it is going to be there. that is what walmart is optimizing. it is going to get there in three days, and you know it. emily: would you agree walmart has a shot? guest: of course. they are the largest retailer in the country with a great logistics expertise.
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what they need to do is figure out that last mile, how to do it efficiently. this is a test it -- to see if they can do this in the summer and see if they can make it work and get consumables in three days as scheduled. i would never count walmart out. emily: it will take walmart three days to get goods to you. amazon offers same-day delivery. other companies offer same-day delivery. how much do people care about these the aspect? guest: if you look at the numbers it is a lot of marketing. most people just getting -- care about getting because to them reliably. it is not practical. it is not going to have a widespread adoption. emily: walmart has physical stores. does that give them an advantage? guest: we just did our most recent e-commerce survey and there is a big chunk of consumer that like multichannel.
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they love amazon, amazon prime. they spend more and more after three years. at the end of the day there are things they don't get it amazon. if they want it today, it is pretty hard to get it. that is why amazon is doing prime now in certain markets. it is all about getting closer to your customer. i would not count amazon or walmart out. in terms of serving the customer better to make that sale or it emily: let's talk about customers. how are walmart and amazon customers different? guest: look at the price point. it is half as much. let amazon prime is running up against is there are only so many americans that want to play -- pay $100 per year for just shipping. walmart cuts that price in and half you have twice as many people who would want that. guest: amazon has more perks. you get the streaming video service as well. how much does that matter? guest: it's a different model. amazon prime, think of it like a costco membership. you join. you get free shipping in two days. you get streaming videos.
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our survey work says 80% of people sign up for amazon prime to get the free shipping in two days. but 40% renew for the streaming. if it is a membership model that is what amazon has with prime. whereas what walmart is doing is try to figure out other markets where they can get scale by doing more regular deliveries. that is the way to think of the talk. is that where walmart is going? emily: there are a lot of unknowns. this is invitation only. we don't know who is going be testing this out. but certainly two giants we will be watching. thank you both. it is time for the daily bike. a number that tells a whole lot. -- the daily bite. a number that tells a whole lot. 13.3 billion. that is how much money sharp has lost over the last four years. the company struggling under a mountain of debt since its rivals began undercutting its core business in display tvs. today sharp posted a loss seven times bigger than forecast but lenders are coming to the rescue
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for the second time in three years, buying about one point $7 billion in stock today. in return, sharp will slasjh 10% of its workforce. don't miss "studio 1.0" tonight. ♪
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>> from our studios in new york city, this is charlie rose. charlie: marco rubio the republican senator from florida announced his plans to run for president last month. he sits on foreign relations the and and hence committee and outlined his foreign-policy doctrine today at the council on foreign relations. i spoke with him following those remarks, including questions from the foreign relations. in previous conversations with me you have said that we are trying to fix 21st entry -- century problems with 20th century ideas.

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