tv Bloomberg West Bloomberg March 27, 2015 11:00pm-12:01am EDT
>> welcome to a special edition of "bloomberg west." we have something of a verdict in the case of ellen pao of kleiner perkins. ellen pao sued over the case of sexual harassment. many issues around the agency of sexual harassment. the jury came back with a partial verdict. the judge came out and said they had more things to consider. we will talk about what the jury told us, what this case means, and a lasting significance of this case.
and indeed, through all of business. i want to get to pimm fox, who is in our new york newsroom with top headlines. pimm: and today's speech federal reserve chairman janet yellen says economic conditions may warrant an interest rate hike this year. but she says the rate increases will be gradual. this is janet yellen speaking today. janet yellen: the activity appears to be closer to its potential than it was a year or two ago. the economy in an underlying sense remains quite weak by historical standards. pimm: yellen also said the federal reserve policy will evolve based on economic conditions. senator chuck schumer of new york emerging as a likely successor to the current senate democrat leader harry reid. harry reid says he's not going to run for a sixth term in the
senate. reid endorsed chuck schumer and the chamber's number two democrat said he's not going to see to the top job. the germanwings airbus copilot who apparently crashed flight 9525 on purpose was suffering from an unspecified mental illness, according to a person familiar with the matter. investigators found a note in the desultory flat of the copilot, saying he was unfit to work on the day of the crash. that note was not submitted to the airline. lawyers say the families of the victims will be able to seek unlimited amounts in settlement from the airline because of the apparent suicide. intel is in talks to acquire a fellow chipmaker. shares of the company soaring on the news. the purchase of altera would be the longest -- largest acquisition in intel's history.
the sec has proposed opening military radar or wasted civilian smartphones and tablets. fcc chairman tom wheeler says he will put it to the other commissioners. steps will be taken to protect. we continue our coverage of the jury case in the ellen pao discrimination case. let's go to cory johnson. he's outside san francisco superior court. cory: thank you. we appreciate the headlines. let's talk about what just happened here. the jury had a verdict on three out of the four issues before them, to figure out exactly what that means and talk about this news, i am joined by david sanford as well as kenny benner in new york.
david, let me start with you. tell me what happens. the jury came back and said what? you were in their. reporter: the jury held on three claims on behalf of kleiner perkins. they ruled against the plaintiff in this case it they said there was no gender discrimination there was a substantial motivating factor responsible for her failure to be promoted. for her termination, there was no retaliation against her with risk to promotion. are essentially did the right thing in trying to prevent gender discrimination. cory: so the firm was not responsible? reporter: right. they came back with a verdict that everyone assumed was for kleiner perkins on all four counts, but when the judge told
the jury, it was eight four. you need to have nine jurors to get a verdict. they have eight against four. the jury has been asked to go back and deliberate on a final count. that count has to do with whether or not kleiner perkins retaliated against ms. pao is a result of her filing a complaint, having discussions, writing a memorandum leading to her termination. the question is is there a causal relationship between her speaking out about discrimination and being terminated very the jury does not have a verdict on that yet and the judge has ordered the jury back into deliberations. cory: it borders on absurd at the jury did not get around to finishing the job. reporter: it is unusual and highlights a point as to why judges should pull the jury. if the judge accepted the verdict as it was, we would be out of here wrongly saying that kleiner won everything. cory: katie benner in new york what is your take question?
katie: when of the things people are talking about on twitter is whether this is a loss for women in technology and women who are alleging gender discrimination comes to rest. i don't think it is. if you think about what happened in the last two years in technology, we have seen sexual harassment, sexual discrimination alleged i women and they all get quietly settled and they don't really service outside of the world of technology. these are cases that people quickly forget. just a high-profile nature of this case is really shone a light on a true problem. whether or not ellen pao won, it was still really important. we have seen editorials cannot from high-powered women, including the former ceo of yahoo! saying this was something that was really important conversation that needed to happen. cory: interesting stuff. we will get back to the news.
let's talk about what this means. the ramifications are important. when we look at the ramifications of this case in particular, if she's found to have not been discriminated against, is it that she did not meet the standard or is this the wrong case? reporter: she presented a lot of evidence, but the jury has to look at the law, consider the law, apply it to the facts of the case. so far they had found the kleiner did not discriminate. this is such an important case. people are talking about all over the world, it's a big issue in china, in this country. cory: is it important because people are listening, or because there is something to listen to? reporter: is important because ms. pao is raised a lot of issues that resonate with a lot of women in this country. whatever happens in this case, it doesn't matter because it speaks to a fundamental problem with -- the women have rising through the ranks in corporate america.
cory: was the evidence in this case substantially different than what you see in sexual harassment cases that go to trial? reporter: i wasn't in the courtroom every day. i been here less couple of days, so i can't speak to how the evidence came in. this was an extremely brave woman to come forward. she had enough facts to support her claim to go to a jury. a lot of cases get kicked out by judges before it even gets to a jury. this got to a jury because she had a substantial case to bring, and people should be proud of her for doing that. cory: katie benner, when you look at this case in particular -- the notion of sexual harassment in the workplace certainly resonates, but does this sound like silicon valley that you know? katie: one of the things it did resonate was the idea that a lot of people who testified -- i
hate to use the term unconscious bias, but it is the idea that people actually don't know when they are saying something that is sexist or alienating a coworker. that is something that does resonate in technology. it really is true. we sought with a ceo making comments about how people should ask for raises because it's pretty easy. that was pretty tone deaf. would he want to intentionally be sexist? of course not. we saw in this trial small moments were people sick, she had a female chip on her shoulder and when defining such a term, seeing a female chip on the shoulder means you don't want to take responsibility for the things that happen to you. i don't know why that is particularly female. there were moments when people said, that does sound like a silicon valley problem, and the idea that people don't know what they are doing that would alienate one of the many female employees.
cory: david, i want to take this to business practices and how this applies to other businesses in silicon valley, technology, or just business. is it common of firms that have a few number of employees, a small firm of a few dozen people -- even though it's importance is enormous, is it common of them to have crummy hr practices, not knowing where their policies work in equal opportunity? david: it is absurd that kleiner perkins would have a company that doesn't know what its employment policies are, and that there wasn't adequate training. having said that, when this case does is shine a spotlight on this issue. people need to know that there are obligations in the workplace. you do have to have certain levels of training, you have to have certain policies in place
and best practices would dictate that, if companies want to shield themselves from lawsuits like this, the best thing they should do is take a look at this case and find out what kleiner did wrong and do better. cory: i wonder if the fact that it was an investment firm, although the numbers were small in terms of people, the numbers were enormous in terms of dollars. $7 billion under management of this firm, that that raises the stakes, that makes it much more likely that lawsuits will be brought and policies need to be better, just to prevent lawsuits. david: it does raise the stakes, and that is why companies should invest a little money in expanding their hr system, getting the right evil in ways to ensure that the right policies are in place, so they don't have defined themselves as a defendant in superior court in san francisco. cory: i want to thank david sanford, as well as katie benner
he found a couple of the jurors did not agree with the majority of the jurors and so they have been sent back into the jury room to deliberate further here on a friday afternoon. nearby on a friday afternoon sarah frier, one of my colleagues -- sarah, want to know what you think. sarah: what i have been doing since the verdict was -- is talking to people in silicon valley, tracking the reaction to this case. generally what we're hearing is that people feel that in some ways, kleiner has lost no matter what because they stood out there in court and try to make a woman who felt wronged show that she was not to be believed, it was very important to them, and they spent days trying to prove it.
a lot of women in silicon valley are tweeting, this has happened to me and i know it's true. whether or not this happened to ellen pao, we trust the american judicial system probably, but this is something that is real in silicon valley. there is sexism in silicon valley, there's discrimination. we already have been talking about it and we will be talking about it even more after this. cory: i have heard the same thing from a lot of women in silicon valley that i've talked to over the course of this trial. they so wanted ellen pao to have a stronger case because they really wanted someone to take this kind of thing public, and the thing they have seen or heard about or experienced to get that story out there. i wonder if this happened anyway, if the story of sexual harassment, if not the story of sex itself, has come out in this trial. even if kleiner's practices are
better than anyone else, knowing it could be worse at other firms -- we shine a new light on what the process is of sexual discrimination is silicon valley and technology. sarah: women did not exactly support ellen in particular. there was conflict about whether she should be a symbol in silicon valley and whether her claims were lined with what women felt they had experienced. still, a lot of commentary around how this is an issue no matter what the verdict has been. whatever they come back with from that fourth counts, it doesn't really affect the flow of the conversation. cory: usually i want to take the other side. but i'm a straight white guy, so i don't have to. it is assumed. i wonder if this does lead to a setback -- is there a notion of sexual discrimination at firms
were people get paid $1 million a year, you can't win cases there and the places it does happen are the women who might be likely to sue will look at this and say, i don't want to get near that? sarah: maybe they will hire lynn hurley. she shined in the states defending kleiner. she really was the winner of this case. cory: we certainly saw that with the way she convinced the jury in ways little and small. heard a lot about that over the course of the trial. she would make eye contact with the jury, make very convincing cases comments you like a friendly, if not a tough person there. sarah frier, thank you for covering the trial. we have a partial verdict. more "bloomberg west" will be back after this. ♪
cory: less than a month ago when of the apple watches hit the stores. some pennies have been sitting around, thinking about what they're going to do. one company will let you check listings on your wrist while you are walking around, looking at houses. glenn, i want to ask you about the watch. i have to ask you about this indiana story that is sweeping across the tech community. you are based in seattle, you do a lot of real estate listings in indiana, yes? glenn: yes. cory: what does it mean to you? glenn: every ceo is thinking about what is going to happen in indiana because we are appalled by the law. everybody woke up this morning and said, what in the world were they thinking and what am i
going to do about it? we have not decided what were going to do yet, but nobody likes it. cory: i appreciate your comment. switching gears massively, this watch thing was interesting because you've got to decide -- how much money does your business which is making decisions every day, why spend money developing for a platform that has zero users? glenn: nobody wants to bet against apple. they take platforms and make them beautiful. if you actually built software on the apple watch, he will make a believer out of you. it's an amazing platform. everything about it is so smooth, so apple. the api doesn't leave you do everything, but what it does, it does perfectly. we're trying to address that voyeuristic need when you walk into somebody's house, you're
interested in a listing and you wonder what its price is, if you even want to see it, people can do that at a glance. that is something that really appeals to our users. they want to know more about their environment without having to dig out their phone and fire up an application. the want to see it in the context of their daily lives here in -- lives. cory: you are essentially a realtor -- glenn: we are a technology powered broker. we've also got the most amazing website for searching listings this mobile application unless you tore them on demand, and we put that together to say people thousands of dollars when they buy a house, to get them into the property fast and save them a ton of money. cory: the way you compensate agents, the way you run the industry is different than everything else in real estate.
i wonder how does the watch drive business to redfin? glenn: all of our traffic is moving to mobile. we think it's going to move to the watch the way it did to the iphone and android device. the reason our real estate agents are so efficient is the world has a path to our door. -- beat a path to our door. we don't spend money advertising our service. we have consumers looking for information through the channels that they really want, which is a watch and a phone and sometimes their browser, but increasingly these mobile devices. betting big on new mobile platforms has been great. cory: you are really focusing on getting closer to the consumer with the watch, because that is what is driving your business? glenn: yeah, they want the information and they're going to work with the people who give it to them. redfin has had millions of people on our website, millions of people on her applications. that has allowed our realtors to focus on doing the right thing.
cory: you are watching "bloomberg west." i'm cory johnson. here's a check of bloomberg top headlines. the pilots may have deliberately crashed the plane in the french alps. the flight covered by a 1999 international accord known as the montreal convention meets the crash victims emily's are automatically entitled to $139,000. lawyers say german wings will be insured [indiscernible] the u.s. economy grew at a 2.2% pace in the fourth quarter.
data shows consumer rising spending. corporate profits falling in the last three months of the year, capping the worst annual performance since the recession. tesla is showing further signs of weakness in china. registrations of its model s fell 45% in february compared to the month before. research for sale warrants said tesla imported 63 of the all electric cars to china in february. people ordered cars and cancel those orders. >> if you see speculators are buying your car, you should get nervous and for some to put up more upfront or whatever. i think you have to be responsible for your own business. cory: musk said china is the
only market where tesla had excess inventory. rbs agreed to sell a private banking business to switzerland. a person with knowledge of the matter said rbs expects the price to be around $400 million. he took home $18.6 million. top executives reached 91% of the targets set by ford and their compensation packages. biographies and movies for steve jobs is moody, unforgiving, a hothead with genius. a new book paints an interesting and more subtle picture of apple's cofounder, "becoming steve jobs" it is, saying jobs'
tim outsidee of the company helped him develop a careful and focused management approach. the co-author of "becoming steve jobs" joins us from new york right now. great to see you. tell us about sitting down to write this book after our friend and former colleague wrote an incredibly successful and seemingly comprehensive book about steam as well. guest: my co-author new steve for 25 years, and he felt that there hadn't been anything that sort of showed steve's evolution appropriately. some portraits of steve tended to be fairly static, like he's half genius, half jerk from birth. in fact, he changed a lot.
certain stereotypes that got set in place back in the early 1980's stuck around for a long time, because steve parceled that access very carefully to the press. brent was one of three writers who really had kind of unlimited access to steve over those years. the other two were john markoff of "the times" and stephen leavy. we had a different kind of story to tell about him. cory: when i think of brent's work when you were editing him for some of that time, he made a career out of writing the steve jobs cover stories for so many years. one of the things about steve was that steve would regularly call a lot of reporters in the
early days and would not take our calls in the later days. guest: he was difficult to work with. in some ways, he may have been more difficult for brent sanders to work with -- brent's editors to work with. they really talked about things a lot, both for stories and outside of stories, they would talk regularly, but he was an incredibly difficult person to work with on stories. he was very demanding about photography, he always wanted to be pictured for the cover holding a device because it was all about selling the device. that is when he would give you access. that was it. he was difficult, but he also -- he cared that the look and feel and quality of the stories would
be as good as the devices that he was trying to sell. cory: that is the journalism side of that. is the company so interesting to everyone in the world of business who wants to find inspiration for the way steve jobs did things and have the kind of success that apple is having in their businesses? when you look at what the legend of steve jobs survives at apple, what are the pieces you think that are replicable? guest: it's interesting, there are so many books built around the idea that you can learn shortcuts to success from steve jobs that it's about simplicity or it's about valuing design, or it's about being tough on your employees. the thing that struck me most about steve's renaissance and
the come back at apple is that none of that is true. there are no shortcuts. the only thing that i can advocate for out of steve's experience is the way he trusted himself. he learned from everywhere. he had enormous peripheral vision. that is what made it so possible for him to go into the music industry and into the movie industry. he saw widely, and he brought all of that together inside him, and he was an impresario who could take all that and create something brand-new that was 2 3, four steps better than anything created before. to me, that's what -- that is what stands out about steve jobs, and awareness, a willingness to learn.
cory: let's talk about pixar. pixar was a business that george lucas cannot figure out. your book at least gives a lot of attention to that that was so important. what was it that steve jobs would really bring to pixar? i wonder what steve jobs really bought -- brought on an active level to pixar. guest: jobs was incredibly lucky with pixar. it was a side bet that he made shortly after getting exiled from apple. his original idea for the company was all off. he wanted pixar's technology to be both the basis of its own computer, and to go along with next hardware you was developing
at next. -- he was developing at next. eventually he became the negotiator on the outside man for the company. and those were critical roles. he also finance the company for a while. steve's main contribution to pixar was as this negotiator and outside man. he got them a deal with disney that led to "toy story." he renegotiated that deal so they could have -- they were set up for several more pictures and they were all co-financed. he is responsible for taking the company public, and he is responsible for eventually finding it a safe haven with disney.
triumph a year later. quicksilver has hit some flat waves. it has restated earnings after making some errors. quicksilver's sales have fallen to billion dollars in 2012 to just $1.6 billion in the last year. chevron abandoning its shell operation in australia. shell had previously announced plans to sell billions of assets as they slumped. does the caso, van gogh, then there's algorithms. could be the future of the arts world.
companies are starting to sell their successful lines of code as artwork. one of the first such auctions taking place in new york is okcupid's matching algorithm for it is the very code that helped pare thousands of couples, leading to -- you know what couples do. the company is helping to build a gallery of code. benjamin, i love this. it's so interesting to me that there is arts and code, and anyone who has ever written code knows there are different ways to express it. can you see it when you look at it? ben: we want to showcase the aesthetic beauty of the code and how technologists are crafting their code to really express the beauty and power of it. often people talk about the mathematics behind it or the physics and these algorithms and people turn their brain off very they say are not a math person
i'm not a science person. when you talk about the power of the code, thousands of couples together, babies born, relationships made and broken -- if you lead without power and talk about the aesthetic beauty of it, people understand. cory: is that the magic? isn't the magic of code what it does, not what it looks like? ben: code has a utility. if you have google's ranking algorithm, you control the internet. it also has an aesthetic beauty as well. technologists know this. he has been talking about this principle for a long time in his introductory computer science course for students at m.i.t. he writes computer science on the board and crosses it out. he says, this is a terrible name for this business. we should call it something closer to magic or art. he has been talking about this for the past 30 years and it is something we wish to show in a
wonderful platform like the smithsonian. cory: i read this great piece from nicholas o'brien, he sort of said there is so much of our history, our modern history written in code, the very details of our history are in those moments of code and they are disappearing and not being saved and they will be lost forever if we don't capture them now and celebrate them. are they anything to look at? ben: algorithms are nothing new. we have one of the oldest algorithms in the world. it is sort of an old babylonian cuneiform tablet. it helps describe how to calculate a square root. for the babylonians, they really do not see a distinction between these initial algorithms, these underlying truths of the universe, how to calculate a square root, and a deity. they saw this as something it was perhaps above illustrates
the algorithms have a wonderful power, and the technologists craft them, be it on clay or in computer science or optically, they make aesthetic choices when they are creating their code. i think it is an aesthetic pursuit. cory: is the presentation of this code a big part of this, or just the code itself? the way it is written, the shape of the pieces of art? ben: i wanted talk about the pure code and dna of it. you can say, this person is beautiful, but if you look at the dna, that is what created them. you want to talk about why the technologists craft in the code the way they did and the back story of that pure code. we do have some pieces that are expressed. we have hello world. hello world is the challenge that welcomes all computer scientist when they learn to code.
for a lot of technologists, they may not remember their first kiss, but they remember that first hello world and where they were when they wrote it. there's a piece of nostalgia their the reminds people where they came from. a lot of technologists will buy these archival algorithms. there are also algorithms that are living. there are two in the auction. yes created a meta-algorithm that converts other algorithms into music. you can start a company, you can choose to do whatever you want with this code. cory: there's a couple he called braintree, owned by ebay. it's part of paypal. they have created their own fonts or their own typeface for all of their coders to use because they wanted the experience of writing code to be more beautiful. do you think your gallery show is going to change the way code is written because the coders themselves may better appreciate the beauty?
ben: i want to change the way people think about the beauty of code. technologists understand it is beautiful and there are design choices being made when they create the code word for general population kind of lives behind the scenes and they maybe don't understand their power and influence. by showcasing the aesthetics of the code and talking about his tower, i want to show the world that it really is an aesthetic pursuit that is collectible in its own right. cory: i love this. i will tweet out that article about the exhibition. really cool stuff to think about. ben: thanks for having me. ♪
cory: the bwest byte is one number we focus on the tells us a whole lot. it have you got? >> 63%. cory: what is 63%? >> the percentage of major national advertisers that are planning an increase to native advertising's budget over the next 12 months. native advertising is advertising that looks and acts like the other kinds of
websites. promoted tweets on twitter. cory: they will be creating content to go into those places where people are reading content they think is from their friends or they are used to seeing facebook and twitter posts and so on? >> they are not only doing that, they're investing billions into it. brands today are realizing that to engage consumers, they have to create content. cory: how do they do that? the use the company. -- they use your company. cory: we don't write the content. we do the distribution. our software automates the generation of the content. cory: 2/3 will spend more -- does it get a better return? >> definitely. we're seeing 10 to 30 times click rate, and 90 seconds of average engagement times. cory: do you help educate them
on the state-of-the-art so they know what will get the clicks and what kinds of things work best? is your company really just a distribution platform? justin: is not just that, but that is the magic of the software's. we cannot only distribute the contents, we can tell you what is working and we can even optimize the content in real-time. cory: do you think that growth rate will grow faster, or is this a big shift we're seeing right now? justin: we are just starting. it's going to be a massive shift. in two to three years, advertising online will look a different than it does today. cory: thank you very much. we appreciate that. the changing world of advertising. get the latest headlines all the time on your phone, your tablet, bloomberg.com, and bloomberg radio. ♪