Skip to main content

tv   Bloomberg West  Bloomberg  March 8, 2016 6:00pm-7:01pm EST

6:00 pm
from the european union and turkey to handle the migrant crisis. migrants would arrive from greece and be sent back to turkey unless they apply for asylum. for each migrant sent back, a syrian already in turkey would be resettled in the eu. security officials in indonesia say the government will take all necessary steps to make sure president obama's plan to close the prison at guantanamo bay does not result in the return of an alleged terror chief who has been accused of heading an al qa group linkedlitant the bombings in indonesia. sexual transmission of the zika virus is more common than first thought. says there is evidence a spike in birth defects is caused by zika. people who went without health
6:01 pm
insurance last year are paying a hefty price this tax season. h&r block reports finds more than doubled for people who failed to enroll. global news 24 hours a day powered by journalists in 150 news bureaus around the world. bloomberg west is next. ♪ emily: i am emily chang, and this is "bloomberg west." legislation that could protect execs if they do not comply with requests for information. millions to grow prime and compete with netflix. to mark international women's day, we asked a panel of experts
6:02 pm
whether there is such a thing as a pipeline problem. a decision in france could give prosecutors the power to force companies, including apple, to unlock encrypted data. french lawmakers are passing a bill that would put execs in jail for five years if they do not comply. in addition, every other person who refuses to share information related to an investigation could face fines and jail time. the government aims for a final vote in coming months. our paris correspondent has been following the story for us. than threeno less terrorist attacks in 2015. phone data has become sensitive since many of the attackers used phones with encrypted data. in the wake of the charlie hebdo
6:03 pm
, the chief prosecutor wrote in the new york times an open letter urging apple and google and other smartphone makers to give better access to data during a terrorist investigation. since then, we had the attacks in paris that killed 130 people. that made this problem even more urgent. admittedly, after the november attacks, the government crafted an anti-terrorism bill. will be included in this bigger bill. penaltiess new targeting directly smartphone to 350,000tives, up fines,nearly $400,000 in and up to five years in jail.
6:04 pm
this has been approved by the lower house and will go to the senate. the french government is expecting a final vote in the next couple of months. i do want to talk more about this with our panel of experts. ler,ing us, tara mul research fellow at new america. , who worked at the department of defense and nsa, a covers apple who for us. you were in paris, reporting on the attacks. what do you make on this latest twist in the french government? it did not just support the legislation. i was culling french media
6:05 pm
reports today, and there was barely a blip on the radar. after -- there after both attacks, charlie hebdo and bataclan. they were petrified this could happen twice. emily: what are your thoughts? i know you are on the side of apple. >> you can understand where the french government is coming from. a company like apple has brought engineering resources. they can force certain people to insert capabilities to give access they might need. what happens to a smaller corporation? you force and executive to comply. what if the people who program the devices or software do not want to comply? can you put an executive in jail for that. a, you worked for the
6:06 pm
cia and joined us on the night of the paris terror attacks, there.till loom large i wonder how much sentiment is driving that legislation. >> i actually join you from that exact studio. french sentiment is probably more sympathetic to the back door policy than the united states. having said that, i am not sure this is the best approach. you have seen punitive measures being placed on executives. they are taking a different type of strategy. problems is, if there is an imminent threat, what happens if the company fails to comply? what if there is a legal battle? i am not sure how it will work in time sensitive cases. in the united states, you saw testimony from director comey and apple.
6:07 pm
you may see congress passed legislation mandating a backdoor entry for the government. it is something the government and tech companies need to work together on. it will not be solved immediately or perfectly. emily: alex, you spoke about france specifically, but what about the rest of the eu? how does the rest of europe feel about this encryption issue? u.k., there are measures introduced called the per's charter to increase access to social media. germany is a slightly different perspective. germany has its own historical context of fascism and communist governments with huge access to personal lives. there is a fair amount of pushback in germany. it is a complex issue across the region. emily: with this bill put tim
6:08 pm
cook in jail, if this iphone were used in the paris terror attacks? >> i imagine there are a number of people at the apple organization that would be more likely to become the scapegoat than tim cook. i cannot imagine the u.s. deporting tim cook. nski --g about roman polas emily: but apple executives, potentially. what ripple effect could this have in terrorism cases around the world? >> the issue extends beyond privacy. it extends to technology companies as a whole being able to secure user data, more broadly speaking. i think the implications of this, we do not know what they will be. as soon as apple is forced to comply with something like
6:09 pm
this, from a security standpoint, it really gives us chills. we know these backdoors are going to be used nefariously. emily: how much do you think the u.s. government is following what is going on in france? when it comes to antitrust issues or the tax investigations happening in to u.s. companies in europe, the u.s. has not followed suit. do you think this is something they could follow on? >> they need to pay close attention to what is happening in other countries. the iphone is used globally. it is not going to be the case there will be different regulations in different countries. the day, there is going to be some consensus legally or it will not make sense. you cannot have people with backdoor policies in one country and other policies in another country. at the end of the day, as much as we speak about this, we must
6:10 pm
remember that, when we talk about these things publicly, when we have these debates about encryption and what is going on between companies and the government, it is going to undermine our accountability in this apparatus in the long-term. accessiving terrorists to information that enables them havederstand which apps access. they will maneuver around those in countries where the laws are certain ways. emily: that coming from a former cia analyst. alex, thank you for joining us. alex, you are sticking with me for the next block. this thursday is a key date. that is when the federal government is due to respond to apple's court filing. march 15, apple must respond to the government response. all of this perceived a showdown in court march 22, the day of
6:11 pm
the hearing in riverside, california, over whether or not apple must comply with the fbi request in the case of the san bernardino shooter. speaking of apple, the first widespread ransomware attack on macs his drawing attention to a lucrative corner of the hacking underworld. hackers can hold information hostage. 6500 macs were infected with malicious software designed to make programs inaccessible, and it is not cheap to fix. users were prompted by hackers to pay one bitcoin or $411 in decrypted data. could cost millions in damages. coming up, we will look at how the encryption fight at home may
6:12 pm
be throwing the foundation of a privacy agreement with the eu into doubt. also, a long-running discussion on the show. what does silicon valley need to do to create a more inclusive environment for women? we will be back with this very important issue. ♪
6:13 pm
6:14 pm
emily: turning back to apple and its fight with the fbi, in the united states, there is concern it could delay a transatlantic pact with the eu called the privacy shield, a framework of draft agreements last month designed to make sure that european user data cannot be accessed by the u.s. government when it is shipped across the atlantic for commercial reasons.
6:15 pm
thatontentious issue demonstrates distrust between eu regulators and the u.s. government in the post snowden era. here to discuss, danny o'brien, and alex webb. i find it interesting this privacy shield situation seems a little contradictory. i say this as a european. europe is not one place. emily: exactly. >> germany is the biggest country in europe by population, economy. in germany, they have a huge session.of session -- ob they also did not have the terrorist attacks that britain, france, and spain has had. on the european level, there are
6:16 pm
interests -- different interests at play. emily: what is the status of the privacy shield? >> the privacy shield is set to be rectified any day now. the fact is it is unlikely to really change immediately. what it might mean is that there is a credibility gap. in general,ll say if u.s. authorities can find a backdoor into a phone in the u.s., what will stop them from doing that in europe? emily: danny, put this into context for us. >> the reason the privacy shield has been raised is because the original agreement between the u.s. and europe to allow data to move between the two continents fell. the reason why is because the european supreme court declared dataagreement violated
6:17 pm
protection standards. to emphasize, those privacy are at sort of a constitutional level at this point, embedded in the european charter. this was an attempt to fix that as a commercial agreement. the problem is it is not the commercial sharing of data this conversation is primarily about. it is about the nsa getting access to all of this data. the european court of justice does not want anyone to have those mass surveillance powers across millions of innocent people. alex, you mentioned, not to overgeneralize, the entire continent, i should say. i should bring in on what has been happening on a country- specific level with facebook. germany's antitrust regulator is looking into whether facebook abused market dominance by
6:18 pm
forcing users to allow the use of their data. googles sided with facebook, saying antitrust issues and privacy issue should not be mixed, perhaps an example of brewing distrust the eu regulators and u.s. tech companies. connect the dots for us. >> google and facebook have a apple.nt role from they are lumps of information you can track over time. you can see what people are writing over months or years. you do not record a phone call in retrospect. emily: are eu regulators unfairly targeting facebook or is this really a privacy issue? this as aasy to couch difference between eu and u.s. regulatory environments, but there is a disconnect across all
6:19 pm
of these different markets. when we look at this strange contradiction between france simultaneously wanting -- emily: the government to have access to data and not wanting us to have access. >> exactly. what you see is war between branches of the government. there are some parts of the government that understand the importance of privacy to commerce and want to protect to keep dataity private, protected the ability of companies like facebook and apple to say, your data is safe. law enforcement and other groups within the government who want access to the data, no matter what it does to the value or ability of these companies. emily: where does the privacy shield go from here? >> i think it will be completed. emily: ok. >> it is just to the extent to
6:20 pm
which privacy shield is credible to normal europeans. i think the real point of credibility is whether the european court of justice thinks it will going to pass. there has not been any reform of mass surveillance in the u.s. emily: danny o'brien, thank you for joining us. alex, you will be back on the show a lot. competition heats up in the digital video streaming space. how the major players stack up. ♪
6:21 pm
6:22 pm
emily: amazon's foray into video continues. they will launch style fold live, a ramped up version of qvc. it is free and will not feature advertising, but will offer
6:23 pm
viewers the opportunity to buy ,eatured items within episodes another way amazon is trying to improve its standing in the fashion industry. staying with amazon, the company is spending billions of dollars to expand its prime video offerings. cory johnson caught up with the head of amazon studios, roy price, on the relationship between amazon and the viewer. >> people tend to get more engaged with amazon. it works out for them and amazon as well. , from makingormula a show to buying a tooth brush which will arrive tomorrow. emily: how does amazon prime video stack up against competitors? cory johnson took. a look at the prime numbers. can streaming digital video
6:24 pm
best the sale of digital goods? video was added to prime service in 2011, allowing prime customers to watch online movies , tv shows, and original amazon content like "man in the high castle." >> liberty and justice. cory: amazon is spending fortunes on contest. 1.3 billion in 2014. an estimated $2.6 billion this year. that spending has led to a big user base. amazon prime video has 31.4 million users, an increase of a third from last year. netflix is the obvious comparison. how do they stack up?
6:25 pm
when it comes to tv shows, netflix has 2600. amazon, 1900. netflix has 6200 movies. 18,000 for amazon. is story of their offerings digital revenue. that is in addition to amazon's subscription price. amazon's offering is quite different. withave netflix and hulu subscription levels and hulu doing broadcast tv. then you have live broadcasts like the state of the union. >> that is what makes me hopeful about the future. you also have the rentals and downloads. it is a unique offering. all three are getting interest from hollywood. four emmys last year, and amazon took home five.
6:26 pm
quality matters. an addictive showed leads to a sticky customer. in other words, a successful prime video business could lead to a bigger business for all of amazon. cory johnson, los angeles. emily: we will bring you cory's for interview with reuters later this week. it is international women's day, and we are focusing with -- on the gains women have made in the tech industry and what work needs to be done. ♪
6:27 pm
6:28 pm
6:29 pm
mark: you are watching bloomberg west. south korea is imposing penalties on north korea following its recent nuclear missile test and south korea
6:30 pm
will prevent entry of any ship visiting the north in the last six months and blacklist anybody late to pyongyang's weapons program. tehran says they were part of a military exercise. disclose their payload capacity of their missiles but saner designed for nuclear weapons. the maximum range is said to be 1250 miles, possibly exceeding u.n. limits. loretta lynch has asked not to be considered by the white house as a supreme court nominee. she isatement she says deeply grateful to be mentioned as a potential nominee but is committed to carrying out the work of the justice department. hillary clinton is taking a break from the campaign trail to attend the funeral for nancy reagan. michelle obama will also be
6:31 pm
among the dignitaries paying respects. global news 24 hours a day powered by our journalists and news bureaus. inis 6:30 on tuesday here new york. i am joined by paul allen with a look at the markets. paul: good morning. a very weekly from wall street. we are not expecting great things across the asia-pacific. in australia, the tsx is off one half of a percent pure declines are expected on the nikkei as well. convenesaying he cannot the board today. we will look for news from them tomorrow. malaysia will hold its cash rate decision later this evening.
6:32 pm
no change expected. the central bank governor -- it is her last decision and there is no news on who her replacement will be. in australia, energy and mining taking a beating. rio tinto off almost 4% following heavy declines in london overnight. nickel and copper both getting hammered. iron over seems to have stabilized. this week's price movements were all part of normal shortselling hasvior even of the asx looked into the spike on monday. ♪ no secret that women are underrepresented in silicon valley. in a spirit of international
6:33 pm
women's day, we are looking at the state of women in technology. i have spoken to leaders in the industry about this issue in her different responses. >> will you are not prepared to do is to lower our standards. if there are fabulously bright, driven women who are really interested in technology, hungry to succeed who can meet performance standards -- men and women get discouraged from leaving. they are not seen as serious as they go home to be with a child. not every workplace can be that flexible as facebook or version. >> i am not sure you are right. companies, butme
6:34 pm
most of the head office type of jobs around the world, they can offer flexibility. >> we could all do better. we have one female general .artner at gd we have not succeeded at finding people, finding women for that role. 6% of women make up only top technology ceos. 3% of founders. here with me to discuss these jarring numbers, catherine's zoleski andatherine leslie miley. you are focused on treating diversity. you have been very outspoken on this issue.
6:35 pm
especially while working at twitter. why do you see a continued dearth of women in technology? >> thank you for having me. i do not think it is a pipeline program. when you look at the number of women's graduating from stem programs and it doesn't reflect women in technology roles, when you look at the leadership in engineering, it is predominantly male or because it is predominantly male, you are biased toward people who look like you and who come from your networks. first part of it that is harder to break out. i also think you need to have more women founders, more women in the rules, just like you need more ethnic and racial minorities in those roles. emily: so becomes a vicious cycle.
6:36 pm
catherine, you have been outspoken about this issue, including your own personal ceilings. you wrote an article where you all, quote, i am sorry to the mothers i used to work with. i did not realize how horrible i had been until i had my own daughter. what is your take on the why, why, why is this such a big problem? >> leslie hit the nail on the head. we have an empathy problem. the people that you had on the screen keep talking about having who need to integrate. they are doing nothing to change that culture to bring in more women and diversity. they are setting a bar for white man. we really need to look at how people, who are at different stages in their lives, mothers
6:37 pm
-- i had no idea what it was like to be a working mother. now that i understand, we don't accompany around that. there are all sorts of ways we need to figure out how to walk in other people's shoes. we do not do that enough. we continue to face problems because we are trying to mirror ourselves. everybody knows the numbers of women in the tech industry are horrible. bloombergtes was on television talking about how the tech industry has been leading on a number of diversity-related issues. sector at the technology . they have decided that if they want to keep their best women in the workforce, they are offering very generous paid family leave policies -- not just for women, but for men. you need to have it for men to say it is ok to do it, to take time off.
6:38 pm
it did not decrease competitiveness in california businesses. and googlee facebook have flexible policies, but it is not reflected in the numbers. their numbers are no different than any other tech company. less than 20% of women are in technical and leadership roles. >> the companies have to do more outreach. they have to increase diversity. women, ethnic and racial minorities, from top to bottom. they cannot initiate a policy and expect women to flock to them. one of the things i have been thinking about -- maybe you go to places that have a higher ratio of women in technical roles and open offices there. come to cupertino, mountain view, san francisco two yard if
6:39 pm
these are places that are already inhospitable to women, why would they want to join? they are like, sit into our culture. they want people to fit into a culture that is not welcoming. emily: katherine, how much is the burden on startups right now? at a company like google or twitter, it is difficult to move the needle when you are that big. do startups need to be taking this on at an earlier stage? what is going to compel them to prioritize diversity? is alsoing the culture about changing how your office is set up. we have a completely remote team, we are 95% women. in los is a woman angeles. we have a culture that welcomes women from all backgrounds. we have women including saudi arabia -- including one in saudi arabia that works for us.
6:40 pm
workers allow companies to be more efficient. they are not spending money in silicon valley in office spaces and local government -- local recruitment. our policies are friendly on the diversity front. as a huge opportunity for startups. the bigger companies are doing it to be competitive with each other. extending maternity leave is wonderful, but let's think about when they do come back to the workforce. some will have take policies, but no child -- take your dog to work policies, but no childcare. we have to think about these things more expensively than just maternity or paternity policies. indeed. gets harder, >> there is a bias when people see resumes. i have been in a hiring
6:41 pm
committee or somebody asked, why did this woman take 10 years off ? they did not ask, did she have a family issue? they used it against her. some things that companies should do is try to obsess you kate the hiring process. they are not looking at men's faces and women's faces, not looking at schools where they are 75%-80% male and a certain discipline. that is one of the reasons why i joined the company that i did. the more companies do that, the more diversity they will bring in. emily: i ensure we will have this conversation for years because there's so much progress that needs to happen. i'm very grateful for your leadership or thank you so much for joining us. return, can i heart
6:42 pm
media deal with its download? we look at the radio broadcaster. ♪
6:43 pm
6:44 pm
worst pandora among the internet company stocks on tuesday. analysts noted the forward-looking fundamental maybe concerning as the streaming music race goes global . they launched a new service to increase artist to fan communication. spotify is also improving its social gestures. pandora shares are down about 22% this year. iheartmedia is going to battle with its creditors.
6:45 pm
they said it received default .otices from bondholders lenders claimed they broke their debt agreements on a transferred half $1 billion of shares to a subsidiary. in our mediang reporter to break this down for us. it seems that they have a mountain of debt to the tune of $20 million. can you break this down for us? the structure of this company is not easy to understand even for a sophisticated investor. glenn iheartmedia -- when iheartmedia was acquired by private equity firms right before the recession, it inherited more than one of the billion's, close to $21 in debt. has found ways to postpone paying off the debt and increase liquidity, finding ways to stay
6:46 pm
solvent while they try to find ways to try and grow the company. they have pretty much just pushed off the payments on the debt, they have not reduced it. that is what this is all about, than tryingnews is to move assets around within the company, within subsidiaries to make it stay solvent. emily: how serious are worries about whether or not they can pay this off? lucas: i would assume they have come to some resolution. they have found ways to just keep going along. at a certain point, it will become unmanageable. their biggest debt payment isn't at the end of this year -- they have a big one in 2017 or 2018, with a big one down the line. management has postponed payments. at a certain point, they will run out of time. emily: how are they doing in the broader -- we talked about pandora earlier -- how are they doing? radio is still
6:47 pm
the biggest terrestrial radio owner. they took the name of their streaming radio app. they say that they have 80 million users, they don't say how many are active. it has been very infective -- effective getting installed in cars. our bloomberg news entertainment reporter in los angeles, thank you. worth geekingng out about, a showdown of man versus artificial intelligence. google's artificial intelligence takes on the champion in the go.ent chinese game of this professional south korean player will take on an artificial intelligence program. i am confident because
6:48 pm
i thought it would be difficult for the computers artificial intelligence to read human senses like tuition. however, i felt that the program may be able to mimic the intuition of humans. go is an incredibly complex game. in chess, the number of possible moves is about 20. a go, it is about 200 and number of possible board configurations is more than the number of atoms in the universe. he is not sure he will win all of the games, but perhaps he is being optimistic. theprogram has artie wiped board against the european program last october. at this point, the project becomes more than just a game. the number of high-profile thinkers from elon musk to
6:49 pm
stephen hawking are warning of the risks to humanity from creating artificial super intelligence. the creators of the broken consider the technology itself neutral but what it is used for is up to society. >> certainly, we worry about lots of these things. we are thought leaders on the , how these systems should be used in a way that will fewfit the many and not a and will benefit society for the good. reporter: the winner of the contest will take home $1 million. emily: after the break, we will look at the changing landscape for advertisers and the rise of automated ad sites. ♪
6:50 pm
6:51 pm
emily: an update from the deutsche bankemily: media conference.
6:52 pm
speaking about the networks advertising position, which he says is incredibly strong. >> for the eventualities of the ever-changing world, our core business is strong. i have not seen advertising this strong from the network and local businesses in many years. had a rough front last year not in terms of cvm's but in terms of volume growth. third quarter, fourth quarter, first quarter, unbelievably strong. emily: moore as the conference continues. gone are the days of mad men bidding for advertisements. automatic bidding for ad space is set to totally change the landscape. three years from now, the market could be worth $37 billion up from $10 billion in 2014. the majority appear on google and facebook. the biggest agencies are rushing to purchase inventory.
6:53 pm
angie lau is in town from hong kong in san francisco pier great to have you. you have been taking a closer look at the story. it's programmatic advertising capable of taking over all of advertising? angie: that is the trend, you are seeing it here in the united states and globally. the don drapers of the world will have to find a new job because it is the robots that will be taking over. programmatic advertisement buying that really specifically takes a look at who the eyeballs are going to be. instead of people figuring out what the parameters are, the humans put in the parameters for the algorithmic buying and take a look at, ok, is it man or woman, how will they are, their social standing. it is going to be that specific. emily: do the robust need a don draper to direct them? angie: there is always going to
6:54 pm
be the don draper but perhaps his department is going to shrink, right? it is going to be the marketing departments of the going toands that are be taking a look exactly at what their ad launches are going to look like, the agencies are also excited about this because they can be very specific. at the end of the day, when you ad spacetal online that is growing by leaps and bounds, it is going to change as way in how you and i consumers figure out what brands we want to buy. emily: i am curious about how it is playing out in china. facebook and google on the market that they are not available in china. angie: the google of china, , which is alibaba trying to rival amazon in e-commerce, they make up 90% of programmatic advice in china and
6:55 pm
that is only expected to grow. this year alone, it is going to be 48%. it is going to slow down in 2017. as you know, china's slowdown -- that would definitely have an impact. emily: how important is mobile in programmatic at markets? about it,you think 1.3 billion chinese, 600 million internet users, but 80% of those users access the internet through mobile. they skip the laptop. if you are a marketer and you want to match your advertisements with consumers, you are going to want to communicate to them in mobile spaces. the problem is, in terms of real-time ad buy in, there is no universal cookie that exists.
6:56 pm
that makes it problematic. as hard to determine you, emily, looking at your mobile home and doing searches to pinpoint exactly what you are browsing versus if you are using a laptop with cookies. they do not have that. these algorithmic programmers will have to figure that out. emily: poor don draper. [laughter] thank you so much for that does it for this edition of "bloomberg west." ♪
6:57 pm
6:58 pm
6:59 pm
7:00 pm
>> from our studios in new york city, this is "charlie rose." charlie: former first lady nancy reagan died at her nome los angeles yesterday. she was 94. the cause was congestive heart failure. president obama said on sunday that she had redefined the role of first lady. she was widely considered to be her husband's closest counselor, offering consequential advice on many major decisions and personnel. her protective instincts, independent thinking, were often sources of public controversy. critics called her "queen nancy." she began her path to public life in hollywood where she starred in several films and met her future husband ronald


info Stream Only

Uploaded by TV Archive on