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tv   Bloomberg West  Bloomberg  December 12, 2013 1:00pm-2:01pm EST

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>> live from san francisco, welcome to the early edition of i am emilywest." chang. our focus is on innovation, technology, and the future of business. gets direct with its competitors. it is taking on snap chat and
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twitter with its product. will this be a game changer in photo sharing? how do you interact with victoria's secret supermodels? there is an app for that. viewers will have a more interactive experience with the runway show. and ron burgundy will take to the anchor desk in one week. we have a look at the business of burgundy and just how successful the classic has become. first, to the lead. photo sharing app instagram is launching its first private messaging tool. the new tool is called instagram direct and it was announced by the ceo at an event in new york today. it will allow people to send photos and videos to rex late to as many as 15 friends, who can then comment on them. people you follow consent things
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directly to you. photos from strangers will end up in the pending queue. is this a game changer? will appeal away users from snap chat and twitter? jon erlichman is in l.a. with more. take on instagram? announcement be an , but this is very much a facebook story. i think of facebook as a battleship. it could choose to focus its attention on any number of products. it is focused on messaging. we have seen this explosion of messaging apps. that is being fueled by the fact that people do not want to pay those high fees that you pay when you text a lot. facebook is in some ways playing catch-up. maybe once to capitalize on the trend. they tried to acquire staff chat and that was not successful. now they go through instagram to push this ahead.
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why not? if you look at the growth of the platform, a lot of people are going there. they commenting on photos. to do something like this might improve the engagement. if i taken a shot in los angeles, someone might comment on that one hour later. i might get my gratification then. if someone can tell me right away and i can get the thumbs up, maybe i stick around longer. >> i will keep my eyes on your feet. instagram just rolled out recently and advertisement. is messaging something that they could make money on? >> when you talk to people who make these products and build businesses around them, money mixing with messaging is a tough thing. , and that ledtext to the creation of these free messaging apps, that model makes sense. apps have ang
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challenge because it is not easy to target those ads. it is really tacky. it is different from a twitter feed or news feed. earlier, youted can improve engagement. you can keep people on the platform longer. maybe they end up posting a few more pictures. backx months, you can look and certainly see this as a win. >> all right. thank you. apple, who sends an independent medical team to a chinese factory. comes after the death of some employees at the plant. in an e-mailed statement, they said that while the medical experts have found no evidence of any link to the working conditions there, the company realizes that it is little comfort to the families who have lost their loved ones. several workers passed away in a
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very short. of time. they also alleged that a worker died of severe pneumonia. for more on apple's approach, i want to bring in adam, who has been covering this for bloomberg news. also, our editor at large cory johnson. adam, what is apple investigating here? how many people died? >> there will were several people who passed away. there may be a connection between the two. apple is sending out a group of investigators. both companies have said that there is a link between the lord -- the working conditions there. >> is this something that they have done before? >> they clearly have sent out different auditors, whether through fair labor or through their own company. they put out a report annually. misconduct. lot of
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they have been very local about trying to clean it up. >> apple gets a lot of attention. they also point fingers at other companies. what do you make of this latest news? does it sound more serious? >> i sent you the story of 5:00 this morning. i thought it was very shocking that there is a 15-year-old working in their factory. that is the idea, to point out what the working conditions are. i think it is fair to note that apple is talking about this. they are doing something. they are actually going to investigate themselves. they also released a lot more information. thenow that they say that average worker is working 53 hours. that is above the law. it is supposed to be limited to 49 hours. i do not know how much that is enforced. to their credit, they are investigating this.
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they are releasing the information and shining a little bit of light on this. they are also going there to investigate. i do not see the same thing out of hewlett-packard or samsung. i think that is worth noting. they are shining some light. it is probably a good thing. >> i believe that the 16-year- old -- his papers were forged. they said that he was 20. how common is it that someone that young would work and it factory? >> the law says that the limit is 15. apple says that 15 is a limit. it is not entirely uncommon for someone. >> it is allowed? >> correct. these papers were forged and you have to imagine that that is not totally unusual. people get work there. >> how do they get their information? >> they say that they get
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information from on the ground. they speak with people and interview. they are a pesky group who can continue to prod different companies. particularly apple. apple is the biggest company and industry. i pushing for change from them, it is something that can trickle down to the rest of the industry. moreple has been a lot transparent than a lot of technology companies. do you think that that has worked in their favor or has it backfired? >> i cannot say that this looks good. deplorable that 15-year-olds are putting together my iphone. also, my printer. god knows what else. it is disconcerting. if that is the conditions by which people are working, then maybe by talking about this, nudging this conversation -- it
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does not look pretty. >> all right. thank you so much. it is one of the most talked about issues these days. should passengers be able to talk on their cell phones while in flight? we will update you on the lawn next. ♪
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nowhis is "bloomberg west." to a story that everyone is talking about. phones on the plane. they are voting on whether passengers should be allowed to talk on their cell phones off- line. it sounds good, but there is a lot of opposition from passengers. our washington correspondent has been following today's action. is the person next to me going to be chatting on the phone? >> hold on a minute there. the vote today is just a step. it is a bit of a process. this is happening at 2:30. they will open up to public
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comment. you can bet they will get an earful. separately, you get another agency. they will be looking at this. anthony fox is saying that he --ld work on their own rule the department of transportation would have their own role. congress is also considering legislation to ban passengers for making all. you have a lot of entities at play here. there is a hearing before the congressional communications panel. tom wheeler testified. he says this is all about getting serious on regulation. he no longer serves the technical purpose. >> i am the last person in the world who wants to listen to someone talking to me while they fly across the country. we are a technical agency and we will make technical roles that reflect the way the new technology works. >> keep in mind that calls we
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are talking about would go through specialized onboard equipment. it would only be above 10,000 feet and it would be up to the airlines to decide what they would allow. they could ban calls as well. >> what do you think? will happen in the public comment portion do you think it will get heated? >> it seems that the public does not want this. there have been different surveys. 69% of respondents have said no to voice communications. delta had its own survey. there is already a white house petition that has more than 4000 signatures. if you take a look at the parties involved, unions represent airline pilots and flight attendants. they are asking lawmakers to get involved. they do not want to see passenger speaking on the phone. they say they will not hear the safety alerts. it could give terrorists another toward. that there could be
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cruise distracted by having to mediate between passengers. the one group we have not heard from is the wireless association. they have all been pretty quiet. >> we will be waiting to hear from them. thank you. another issue getting a lot of attention is the virtual currency bitcoin. we learned that an online provider raised $25 million in funding. cory johnson is back from new york. i know you have been experimenting with du quoin all week long. what is your take? >> it is that same character here. matt miller. >> what have you been doing that i do not know about? >> i cannot tell you. a friend of mine asked her boyfriend what to give for christmas. he said get bitcoin and got to.
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about $1800 right now. maybe more. --the process to get those it is coin based. >> : based will tell you strenuously that it is not an exchange. they arehe trades -- randomly broken. customer service has not been applauded. there are some big exchanges that you can look to if you want to trade bitcoin. albeit with some issues. biggest du quoin exchange in tokyo. there is a bit stamp. and the biggest exchange of all and china is ironic because these banks do not accept bitcoin. these are the biggest exchanges. they all have the same kind of issues. >> you used the phrase broken trade.
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particularly in an environment where the price of bitcoin goes from $800 to over $1000. toit went from $1200 down $600. >> and back up to? >> $800 or $900 this week. >> broken trade -- at $690.ed to buy 10 >> trade is good. the price came back up and then he said we are worried about fraud. >> they're pretty serious about all of the personal information they take. they will tell you that they are not an exchange. this investment shows that some very smart and big money believes the way to go. they're very heavily active on the merchant side of things. they have the services that bitpay has, where they help
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other merchants. >> this points to the crucial problem with this. in the wild west, it is completely unregulated. when someone breaks a deal, they do not pay you. there is no recourse. >> that is right. a lot of people involved do not want to do trades. a communitynight to founder named after the of bitcoin. these are regional, local exchanges. you go to a place for you trade this commodity and currency with others. >> a lot of fun people. >> i have never been to this sort of thing. i just want my first to coin on monday.
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maybe i will sell. now it is worth $920. --if i did not have plans matt miller, thank you so much. we cannot wait for the next day. >> now i know what you should get me for christmas. >> really? >> just a couple. >> i care about you too much. it is a worthless security. >> pessimist. it is interesting. still ahead, and activity site wants to make your holiday travel easier with a holiday at. we will talk to the ceo next. you are watching bloomberg tv. we are streaming live on your phone, tablet, and ♪
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>> welcome back.
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i am emily chang. if you are searching for the perfect holiday vacation, we may be able to help. they offer holiday tips on where to shop in u.s. cities. i spent the day in san francisco testing it out. take a look. stop one, the ferry building. so you cannot start a perfect day with out -- >> we are in the right place. this? are youy is trying to replace a travel guide? >> we are making them book-able. discover -- locals can and book amazing things. >> we had to our next stop. >> nice to meet you. >> ready to make some pizza? >> all right.
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i had always wanted to take a pizza class, but never knew how to find a good one. staffers work with locals and travel experts to find hidden gems. they take a 20% cut on eight sale. crowded field these days. everyone from expedia to buy a tour is working to make travelers feel special. how long have you been on the list? >> for over a year now. it is great to get people from out of town. they read about us and make him take our classes. they tell their friends and it has been great. >> it seems like things have been going great for peek too. they have secured endorsements. back in class, lunch is ready. that pizza was so good. at. just launched a new ios
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wasn't a good? i really remember that pizza. let's talk about the app. how does this improve the experience? >> we found that 80% of people book activities when they get them. they were using things in advance. as a result, we decided to launch a mobile app. in real time, on the go. >> how does this fit into your broader vision? long term, mobile is becoming more of our everyday life. every consumer is using whatever other apps they may be using. mobile is the natural next step. we also see that we are providing ways that users can find great activities. we also provide activities -- old needed to run the backend. >> you put money on commissions.
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you take one sip of every transaction. what about partnerships down the line? >> we are absolutely open to partnerships. we do very focused. expanded to 17 u.s. markets. we have expanded internationally to london and paris. we have improved and enhanced the peak user experience. launched sopp has you can download it. there will be more to come. >> any interesting holiday travel trends? >> we're seeing a lot of people will go away. they will be needing to do activities. part of the reason we launched this is to be able to prepare for that. >> we will have to leave it there. happy holidays and thank you for joining us. it is time for on the markets. it is 26 after the hour.
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let's take a look at how everything is going. ♪
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>> this is the early edition of now for yourst." bloomberg top headlines. the house is expected to vote on a new two-year budget deal this afternoon. they are predicting that inflation will pass the house. the bipartisan pact was put together by the budget committee leaders in the house and senate. it will push off automatic spending cuts that neither party likes. department is slapping sanctions on more than one dozen companies and individuals for doing business with iran. they freeze the u.s. assets based in panama and elsewhere. the administration is lobbying congress not to pass additional
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sanctions against iran for fear that it could undermine the nuclear program. governmentfrica's says the simon which interpreter who signed meaningless lines at the nelson mandela nouriel service was not a professional. english is not his first language. he iso said that receiving treatment for schizophrenia and that he had an attack while on stage. the victoria's secret fashion show was on cbs. while tv ratings were up last night, it was not the only screen you could watch. the first time, cbs offered a second screen experience. they synced audio to your ios devices. joining me now is the president of cbs interactive. it is a tough job. what kind of things were you able to see in the app? viewersund that 80% of
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have some other device with them while they're watching. we have been building tons of apps. you can see them on the grammys. you could do things when you sync up, like getting clips or taking quizzes. getting information or seeing sketches of clothing. you could see live cams with taylor swift and models. a lot of things that go along for super fans. >> how much work does it take? >> a lot. the first screen cannot fit all of the content. the second screen gives you that opportunity to repent these people who want to get more stuff around the show to see that. >> can you give us an idea of how much traffic there was on the app? >> it was the number one rated show on tuesday night. 36% over last year. we are seeing more and more people. by the end of this week, we will have stats overall.
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>> the fashion show is the perfect and to do. buy the stuffly that the models are wearing. what other kind of shows does this work for? >> for live shows, like the super bowl. it is like a backstage pass and more information. for a scripted show, we are doing a ton of stuff. you can sync it up and see evidence or back stories about characters. a choose your own adventure type experience. the villain and who will be the culprit at the end of the show. the east coast picked a different villain than the west coast. we should both of the different endings. >> there has been a lot of talk about the second coming. it feels like the second screen has not arrived yet. and experience, twitter has been the one consistent second screen.
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you cannot get that kind of content, but you can get conversation. do you think in the future that it will not be one company or one app provides this experience? will every network provide their own thing? will that be consistent enough to peek -- to keep people coming back? >> we want to distinguish ourselves from our own site and do these apps. it started with social. that makes the most sense. it is now turning to engagement and more content. i do think that the scale of platforms -- for cbssports, we have 1.2 million followers. it is extending. the platform is really where we will devote our time. >> it is a lot of work to do that. right? >> there is five times more engagement. than theuper fan,
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casual fan. i do think that the trend over time will be the casual fans will become engaged with these products as well. >> let's talk about the technology that makes this possible. >> it is essentially a timestamp. it will be weird when you first see it. , incontent starts appearing this case as the model on stage. the clothing, for her, for the band. fallout boys playing. it is tied to that exact minute. >> how much are you driving traffic to the app? you have to balance. >> is a little different. i think that what we're trying to do is be complementary. the super bowl is another experience. you could watch the game. people will watch that on tv. you could see different camera angles. you could go back to all of the commercials. things that accent the
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experience, rather than replace them. they spendr thing is a lot of money to advertise on television. you do not want to upset them. you obviously get advertising here, but how do you balance that? an advertiser wants to know that people are actually watching. >> that is right. online video is a huge trend. it is exploding. the hours per month in the u.s. alone are twice as much as youtube globally. you are seeing a huge amount of confidence. over time, it starts to come together. cbs is a content company. we are agnostic as to where people watch it. we will monetize it. >> all right. ray to have you, thank you for stopping by. the golden globe nominees are out and the films that got the nod have not even been released yet. that is just after the break. ♪
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>> this is the early edition. i am emily chang. more signs of trouble in networking business. innna has followed sysco reporting a disappointing quarter. all of this comes in the wake of reporting their first yearly decline in over four years. the company repeated that guidance, but says it sees improvement coming 3-5 years down the line. dell is holding its annual iit conference today in austin, texas. they hope to show off their new software and products. they are also getting fresh insight into what life is like inside the new private computer maker. cory johnson is in new york.
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they've completed the process of becoming a private company in october. how is that going? >> they did not give us a lot of information. one of the reason they went public was so that they could make a big transition in private and make difficult choices. that cost a lot of temporary pain. it was very interesting when he took the stage and suggested the turnaround was so far underway that the results are already getting better. listen. >> what i'm feeling and what i am seeing everywhere i go from inside the company, from our customers, in meetings come out on the street or at dinner -- is that this privatization has created a renewed sense of excitement about dell. i am part of the world's largest startup. [applause] about six people clapping for
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that. hard to imagine from such a big company. he did start this in his dorm room. it is an interesting time for dell. meeting with their customers and getting them excited to buy dell products is the entire goal today. doing? we know less now that their private. that they areted growing at double-digit rates. that is hard to believe given the rest of the industry. we have talked about the slowdown at ibm. they are seen falling sales. i thought it would be useful to compare. up until what we know is going on. when dell was going through their takeover struggle, the customers ran away. they had -11% sales numbers. hewlett-packard also put up late -- great declines. dell seems to catch up.
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it seems like they may resolve things. improvementistent until they went dark and stopped telling us what was going on. we know that hewlett-packard has tended to trend close to dell. whatever happened in the last quarter at dell, we do not know. the notion of double-digit growth is hard to believe. we may never know unless they take the company public again. if they turn it around that fast, you can see why some people are opposed to the deal. they do think there improving faster. >> ok. thank you. now to today's new hollywood. the nominations for the golden globes are out today. get have become a way to early buzz for movies that are not out in theaters. jon erlichman was at the nominations and he is with us now from l.a. any surprises? >> always surprises.
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it is fun for people to watch. that is the point. these kind of events help to people -- help people to explain the business of hollywood. we have to remember that a lot of the films that were nominated today and the talent that is in these films who were nominated today, are not in theaters yet. you think of the wolf of wall street, it you think of "saving , allanks" -- movies that of a sudden, can say that we have a golden globe nomination. a way to stand out versus the competition. the smaller films story is that there are a lot of films in theaters but you do not know a lot about because the marketing budgets are so small. to your earlier question, films like "nebraska" have something to mile about today. >> there are nominations for both film and television. netflix picked up their fair
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share. i just finished "house of cards" and it was so good. tell us about their not. >> we know that this is a company that has had its chance to dip its toes in the water. the fact that there shows have tv,rated six nominations in "house ofy to hbo -- cards" specifically got nominated for best drama, the timing could not be at her. this award show is going to air one month before the second isson of "house of cards" made available. if it does well, great. if it does not, everyone is talking about it. >> i know there was a question if there were be a season three. to we know the answer yet? is the content guy at netflix. he suggested to us that that
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would probably happen. one of the things that you have to remember with the way that they deal with structure is that in this case, there was an outside production company that they worked with. name may have less control versus "orange is the new black." they have full control over that and can say, we want to do two or three or four seasons. >> you are going to interview the screenwriter, aren't you? >> i am. we will do that on the late edition today. there has been this really important question of people who are making film and television. where they are choosing. they are all pretty happy. they know the stories that we talk about here. a lot of people, young and old, are watching more video on their phones. we know that there is a shift in terms of where people are ultimately watching. is it such a problem to go and
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do a deal with netflix as opposed to doing a deal on traditional television or film? those are some of the things that we will talk about. >> ok. thank you. at your tv,ook laptop, or smartphone without seeing anchorman star ron burgundy. we will see how hollywood rewrote the rules in the new acre man movie. >> linda jackson is a winner. >> how are you my friend? >> this is linda. ♪
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>> this is the early edition of "bloomberg west." you can also catch us at 3:00 pacific. haseems like ron burgundy been everywhere lately. that is probably because paramount pictures launched its key are blitz long before "anchorman to" comes out next week. will it pay off?
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>> let me get this straight. a movie that came out nine years them $95 million is about to start a sequel that may be the comedy hit of the holiday season? that is the dumbest thing i have ever heard. >> how did that happen? >> let's get the obvious out of the way. it was a cold classic. we'll dig. i do not know if it is any good, because i have not seen it yet. it is a marketing juggernaut. >> the news team is back. >> there is going to be a museum -- ait, book, commercials mobile game, cameos, even a college. movie tie-ins are no new thing. they're taking things to a whole new level. --this is ron burgundy tying
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reporting live for espn. >> people like will ferrell are no strangers to digital media. there, the website already makes more than $30 million per year. the other reason is that ron burgundy is the character that comes along once a decade. he is genetically engineered to play him. >> i love scotch. that, you can put him into the real world and we love him. we love that he sells us dodge during goes. we love that there's ice cream named after him. tank, butat it could it probably will not. you can be sure to see this marketing push for other movies. strategyedy -- this does not work unless you have the goods. >> i am kind of the big deal. >> ron burgundy is kind of a big deal. >> sam grobart. west" afteromberg this quick rate.
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>> welcome back. i'm emily chang. coming up on the late edition, as we mentioned, netflix's "house of cards" has been nominated for or golden globes. we will sit down with the man responsible for the plot twist. do not miss our interview at 3:00 pacific. and it is 56 past the hour, which means we are on the markets. julie hyman has more. >> we have had stocks fluctuating a little bit today. mostly to the downside on mixed economic data. nasdaq is actually up slightly, just half a point. the s&p 500 and the dow are
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lower. and we want to look into making their trading debuts. k.t's start with aeromar they sell stadium food. they sold just over 36 million shares. tilton, who coincidently is selling their shares at $20 per piece, raised a record. and then there is the company going public next week. , one of the largest movie theater companies. they are offering shares to members of its loyalty club. it is called stub. you get membership in the loyalty club and as part of that, you also have access to buy $100 to $2500 worth of shares in the ipo. actually 2.5 million of these folks who are members of this club. they pay $12 annually.
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they spend more at theaters. in terms of expenditures on food and beverages. in terms of when you look at their competitors and the revenue, that is an important measure. it gets more than competitors. one of the reasons is that it spends more to upgrade the theaters. sam grobart looked into that phenomenon. as theylmost as long have been around, they have been threatened. first, tv, then vcrs. then the internet. movie theaters strike back with imax and 3-d. and now, this. big seats. look how big these are. is renovating its theaters and ripping out older, smaller states.
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the theaters that they have already renovated, they are up 84%. that has a lot to do with these bad boys write here. power recline. i can put my drink here. you have armrest tear. hanging out, get cozy. nice. why are they doing all of this? to make more money. and it is working. to 1995, they have revenues of $5.3 billion. today, aided by snack to what s an irony a.m.c. is doing. in order to compete with your you have a maybe now surround e.d. and 8.1 sound. to get you out of the house to make the theatres more like your home.
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set to start trading next week. we willing on the markets again 30 minutes. "money moves" is up next. ♪ "money moves" where we focus on alternative assets. and ow you what investors entrepreneurs with doing and what is going on in hedge funds, equity and real estate. today it is a big real estate day. pioneer will tell us there are numerous opportunities in the new year. also a focus on creative work spaces. c.e.o. of a and property is here and he will sees real estate markets in hollywood and silicon valley. an online


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