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tv   Bloomberg West  Bloomberg  April 13, 2016 11:00pm-12:01am EDT

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mark: i am mark crumpton, you are watching "bloomberg west." let's begin with the check of your first word news. a task force set up by rahm emanuel to investigate a police shooting has released its findings. the report accuses police of having "no regard to the sanctity of life, when it comes to people of color, and of alienating minorities for decades, using excessive force and honoring a code of silence." a belgian tv network has uncovered previously unseen footage of salah abdelsam. peoplene of the alleged involved in the paris attacks. he is seen walking through a market in a neighborhood of brussels. families of the victims of the
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german wings crash are suing the arizona flight school the pilot attended. he crashed the plane in the french alps, killing all 150 people on board. he was treated for depression before taking flying lessons. tax officials from around the world met in paris today to discuss the fallout from the mass-leakage of financial data from the panama papers. they expose how the wealthy used shell companies to dodge tax obligations. if they defeat the memphis grizzlies, they will complete the season with a 73 wins, the most in history. global news 24 hours a day, powered by over 2400 journalists in 150 bureaus around the world. ♪
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emily: i'm emily chang, and this is "bloomberg west." the latest from facebook, is the company's ad business facing a decline, and what type of hardware can they work on? all of that, ahead. plus, a serious setback, regulators calling for a ban on founder elizabeth holmes, and a stop on medicare payments to the company. we will bring you the latest. and senators release a long-awaited draft of encryption legislation that would force companies to comply with court orders for data. we will break down all the details. first to our lead, reports that u.s. regulators are looking to leader elizabeth holmes from the company for two years. the president would also be barred, according to the "wall street journal." they had a letter for centers to medicare services, proposed sanctions banning her from
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receiving payments from medicare. over the last few months, the tests were not as accurate as they should be. sheila is with us from new york, and max mason from our fast commentary section, as well, and greg ingles, chief executive of a clinical lab consulting, a firm that audits labs. and our guest host for the hour, keith rabois. sheila, i will start with you. you did an in-depth piece on theranos, and spoke with various people at the company. how serious is this? sheila: it is potentially devastating information for them. it is their main regulator, they have sent these proposed sanctions, send out this letter on 18th of march. they are saying theranos has not taken adequate steps to address insufficiencies that they found in their main lab.
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they were inspecting at the end of last year, and they sent the company a letter with five things they wanted addressed, including hemoglobin testing. now it is saying the laboratory's obligation of compliance is not credible, and evidence of correction is not acceptable. they are basically telling theranos that they are unhappy with how the company has tried to address their concerns, and they're threatening one of the harshest sanctions that they can place on any lab, which is to revoke their license and put them out of business. emily: a spokesperson says this is hypothetical. if sanctions are imposed, it could take months. the fact is, we have not received sanctions. greg, you actually audit labs like this. you read through the entire report. what is your reaction? greg: frankly, anyone who is
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, and we havea lab had several of our senior inspections go over the finding, and had a discussion, they take a while. a lot of the beginning of the documentation books about 150 pages of citations, they were pretty cut and dry. isgets worrying, when it across multiple departments, not just standard operating procedures not being followed, but multiple quality control fails. it is as bad as we have ever seen. that is where it stands. there is a lot of stuff mostly centering around the competency of the personnel in some of the labs. i've seen up to a 20, 25 page report. a lot is rectified in the paperwork process, but there are some fundamental things that are very, very wrong.
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they have not been addressed properly. the supporting documentation was not there to address the deficiencies. and that is why they were upset. emily: keith, this was a $10 billion company. investors put money into the company, and did not have visibility into what is going on. it does not make silicon valley look very good. keith: this company is novel in a few different ways. first of all, it is a heavily regulated industry. when the company was not operating in the greatest zone, from what i could tell, it was operating in the black zone. i think companies and startups should take advantage of ambiguity, but there is a difference between violating a law, and violating regulations intentionally. emily: they say they flunked lab and operating where there is no right answer. 101. keith: right, and that is not ok for any startup. but they should do more like uber has done, where there is a
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gray zone. that is perfectly acceptable for startups, that is how we get innovation in america and the world. but where there is a clear line you cannot violate that line, , ever, especially in a federal area. i used to be a litigator, i think the chance of challenging these sanctions is the burden is zero. so high in this particular case. this is a really significant sanction. if the sanctions happen, the company will have a lot of problems. the other is in this company is anomalous, there were no other traditional silicon valley bcs in this round. this did not go through standard diligence, that the companies we typically invest in, every day, would. that is one of the variables that is unique. emily: it is interesting, max. theranos has failed to provide evidence that the tests actually work. that is the main thing regulators want. what is your take on what is going on here?
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max: it shows a pattern of behavior from the company, all that observers have ever wanted is detailed data, purity of studies, things that are really standard in the medical establishment, and especially, should be, for anything having to do with people's health. the company says they will continue to provide data, submit to studies and medical conferences. but they have never given a timeline or unleashed visibly to the public. with this latest round of allegations and the potential suspension of their license, i think the time for them to continue a black box with their data is running out for the company. emily: max, sheila, greg, thank you all. keith, you're sticking with me. up next phase two of the , facebook developers process
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-- conference included a virtual reality headset, a selfie pick, full of i interviewed the ceo on their ambitions and potential sharing problems, next. ♪ emily: turning now to facebook,
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shares of the social media giant slumped more than 3% at amid one point, heavy trading volume, among comments that spending on facebook was down 18% from the quarter before. shares of later recovered after ad parlor clarify, just a junior level employee made that comment, and his data was incomplete. he did not provide proper context. such a briefing will not happen again.
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in the meantime, their developers conference continued, with mike schroepfer talking about zuckerberg's 10 year plan. his keynote included a virtual selfie stick demonstration, showing the potential of social, virtual reality. i caught up with him later and talked about his new hire, regin a dugan. >> we are super fortunate to have her. there are so many things for us to do, so many things we want to embark on that we have not done yet. she is going to start kicking off some of those new initiatives. it is a little early she has not to talk about what she is going to do she has not gotten in the , building yet, but we hope to achieve this ambitious, 10 year mission that mark set out for us. emily: she worked at google. broadly, do you see her working beyond these actual scenes? mike: she is going to be
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building things that are mission-aligned. everything we do is to connect the world. there is a lot under that umbrella. she will be doing things you have not seen from us, maybe like oculus, it will be confusing in the beginning, because people will be putting together the pieces. but it will all come together in terms of how this comes together to our mission. emily: i want to talk about personal sharing, because we have heard it is down on facebook, as opposed to news, or article sharing. what is actually happening with personal sharing, and what are you doing algorithmically, what do you want to be happening with personal or other types of sharing? mike: so many things are happening at once. you're seeing the rise of live video, people watching a lot of live video. more news is consumed on facebook. the same thing happening where people are sending lots of private messages, the other whatsapp messenger. it will be interesting to see how this all shakes out. emily: what is the ideal mix? what you going for?
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mike: we are going for what people want. the right medium for the right conversation. there are times when you want to share something with all your friends, and times you one to share something with the whole world. there is probably a proper experience for each of those that we want to make our own. emily: on this personal sharing thing, algorithmically, what do you want? are you algorithmically doing things to encourage more personal sharing? it is like an existential problem, because you actually have power over what people see. algorithmically, how are you handling that? mike: there is lots that we do with news feed all the time. where we askes people, did you like the stories you saw, would you like to see these things instead? part of the goal is to give people what they really want. i said on stage here are all the , possible things you want to read, what are the things you actually want to see? if we don't build products that is the end goal.
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people like, it is a competitive market, and people will go use other things. emily: doesn't that change all the time? mike: things change. people did not know they wanted video and mobile, and now they do. we are seeing the rise of immersive video and vr, something we could have only dreamed of. emily: do you worry that this could hurt personal sharing, and what makes facebook great? mike: i don't think so. you want to watch something on tv, or go to a concert, humans are pretty natural about finding different groups they want to interact with. i think we can build products that hit all of those interactions. emily: let's talk about the virtual ai assistant. it is taken longer than we have expected. mike: it is not taking longer
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than expected, it is a test. i talked about some of the technology we have been employing to automate this and make it work well. the things of that is different about this, it is a mix of humans and artificial intelligence. what you can do is unlimited, you can do anything you want. it is a much broader service that develops, these technologies we will need over the decades. emily: facebook has built multiple platform products, mass distribution, and then changed spam,les to cut down on for example. but there are still investors out there that are skeptical. should we invest our time in facebook? how concerned are you over that? mike: developers are smart and will use the tools for them. they this is a challenge in the are going to find ways to get distribution. entire ecosystem. you talk to a developer, and how did they get featured on an app store or get more downloads?
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that is a very competitive market, very tough. channels like messenger, maybe new channels are interesting for people. we are seeing tremendous pickup of navigation apps, ways for people to get reengaged. if we provide the right tools, to give people distribution, they will use it. emily: on the other hand, i have seen an uptick on messenger itself. what are you doing about that? mike: a lot of the work we are doing in ai and other systems, are there to help with spam. i'm not sure if your experiences are indicative of what others have seen, but if there are 20 -60 billion messages a day, we do our best. emily: my interview with ceo facebook mike schroepfer. i want to bring back my guest. i want to pick up keith with this idea of personal sharing. because you have something to say about it. first of all, you chuckled when i asked what was the ideal mix. you said it is what people want. what is your reaction to that?
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keith: it is the best possible case mike is making, a substitution going on between private content shared between friends and family, to more broadly applicable content, streaming, orlive very private messaging. that is the best case. without a doubt, a year ago, there was a significant decline in sharing new content on facebook. the executive team on facebook went into a panic from the very top down, to remedy this. so it is not something they are not concerned about. they signaled the red alarm, or send the bat signal internally. if you open your facebook app, you will see all the recent photos you have taken our pre-populated encourage you to -- to encourage you to share that photo or link. facebook has a clever growth team, with very smart people working on encouraging users to
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share more. mark is always focused on sharing. but maybe it has to change over time, but it will change, if sharing continues to decline. emily: facebook says sharing is overall very strong. one said, if there is a decline, facebook becomes a well-curated twitter. you said it true, but if total sharing is in decline, which it has been for over a year, facebook's statement says sharing rates are on par. and you said that that was misleading, and talk about some of the panic, and say you might short twitter and facebook. keith: obviously misleading, if your executive team makes the number one priority sharing. the it depends on red alarm if it depends on you're happy with the results. what methodology you use. back in the day, we could
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calculate what percentage of our users came from ebay in five different ways. some were positive, some were worse. there is always room for how you describe the data publicly. that is why i say it is arguably misleading. it is clear that private sharing of content, content unique to me and my crowd is on the decline. , what is not there, is the total mix of sharing, how that is calculated, and what it is including. is it including messenger? messenger content must be going up, but it is not something me and my family could consume. we would not assume that, by intent. it changes the nature of facebook, and the long-term viability of facebook. emily: interesting. my colleague was recently speaking with someone no longer invested in facebook, and asked if you would like to invest again today. take a listen. >> yes, it would be. >> how about twitter? evaluate companies
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regularly. as we are out of some of the positions, i don't follow them very closely. emily: not really interested in twitter at all, it seems from that statement. what do you see on the path for twitter, and for facebook, if overall user growth on twitter has plateaued, and on facebook, things are changing. the whole idea of what facebook is. keith: it is dangerous when you have a monopoly, a network effect. flux may not always be your friend, it may take a while for people to figure out how to take advantage of that, or what it means for users. for example, private sharing may be better for snapchat, and public sharing better for things like twitter, which have a follow-model. when i want to proselytize to the world, i would rather send this to the broadest possible audience, which is better for twitter and facebook.
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for example, depending on how the content mix shifts depending , on how it shifts, the structural advantage of many companies may shift, also. he may be right about shorting twitter, but it could also be better for twitter if all the content shared in the world is mostly around politics and people's perspectives on society, rather than things intimate to themselves. emily: interesting. keith rabois with me for the hour. as we had to break, check out gopro spiking the most in two months. the company has gotten key talent. details, next. ♪
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emily: turning now to the broader markets, u.s. stocks climbed the highest in four months. bloombergs ramy inocencio joined us in new york, with what tech movers moved particularly far. ramy: basically, it was a broad green across the board. let's see where the numbers stand.
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s&p 500 up 1%, but that was the least of the gainers. the dow up higher, the nasdaq of the most, at 1.5%. that is its highest since new year's eve. also, this good chinese data that we saw as well as earners , of these estimates over a jpmorgan. let's take a look at some of the biggest point gainers at the nasdaq. this is where they are. apple up by 1.5%, but amazon even beat that, up by nearly 2%, alphabets up by 1.2%. all seeing gains not seen in the past two or three months. in addition to that, i mentioned good chinese data. what we are seeing, here in the u.s., chinese-based stocks are going above because of that data. on the order of 3% or even 5% in particular, the reason for this is because of china's overseas shipments.
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rose, a sign, they that china's economy could be strengthening. also, i want to look at a couple of stocks in the playful sector. first to activision, rising to a little more than 5% here. boosting their price target up to five dollars. they say to expect a record year for blizzard, based on a new game. and they are optimistic on call of duty. gopro shares rallying the most since july of 2014, up by a little more than 19% here. the news off of this, is a rare defection from apple to gopro. but danny custer, one of apple's longest-serving designers since could be pushed by gopro to be a 1990, little more classy, get some of the magic back.
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emily? emily: all right, new york's ramy inocencio. coming up, draft encryption legislation is out, mandating that companies would have to comply for court orders requesting access to data. ♪ show me movies with explosions.
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show me more like this. show me "previously watched." what's recommended for me. x1 makes it easy to find what blows you away. call or go online and switch to x1. only with xfinity. >> carmakers are leading the
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best advanced since january, taking control of losses. the dollar fell the most since november, after the monetary authority said they would no longer see currency appreciation. shows important economies are stagnant. it is the first time they have gone to a new currency standpoint from a recession. and it has been revealed that
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china securities finest corporation is a top 10 shareholder in more than 600 companies, including the country's biggest names. more than 80%, state-owned enterprises. they have been forced to reveal their stock holdings. those are the headlines for bloomberg news, powered by over 2400 journalists in 150 bureaus thend the world, let's get latest from markets for you right now, here is david. david: we are closing up shop for the lunch break. japan is opening up. but let's have a look at the big movers here in japan, and across the region. obviously, i will get to the macro picture in just a moment. but we have a few big mo -- movers on the benchmark. , and petromical
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down. i wanted to point out from seoul, recently, profit margins have been safe. ,ore sentiment-driven rally they have left behind some of their peers. but up 9.3%. that is really down to 2%. now, that was the upside. here is the downside, right here. 3%, we just need the gold price it down from this time yesterday. is's wrap things up, asia looking like this, a very good day, seven straight days of gains, sending the rally, which started here in asia. steve gains have started two
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days back. indonesia at some point placed 12th. it is a good day, we are off the highest of the day. the chinese market, certainly the highest of the day, they're going for 7%. ♪ turning now to encryption. senators richard burr and dianne feinstein have released a draft of a bill that would require companies and individuals to comply with court orders to protect citizens from criminals and terrorists. in a statement, feinstein said, "we need strong encryption to protect personal data, and we also need to know when terrorists are plotting to kill americans." the senators are soliciting input from the public before introducing the bill as the public and private sector grapple with the fallout from the debate and adapt to a new normal of tighter encryption. i am joined by luke dembosky,
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formerly deputy attorney general for national securities. it has been exciting and dramatic times in the world of cyber law. what is your reaction to the encryption bill? should companies be required to fulfill all data requests? by court orders? luke: first, thanks for having me. it is a very emotional debate. i have not reviewed the proposal yet. i understand that many industry groups have come out against it. it is going to be essential that any legislation have broad industry support in order to have a bipartisan bill that has any chance of passing in the end. emily: what is a realistic and productive way for tech companies to work with the government? luke: many have been trying to work with the government. i think the answer is to find a balance between privacy and security. it is not something that is
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completely out of reach. whether this is the right approach remains to be seen. emily: in june 2014, apple released ios 8 and turned on basically encryption, making , things more difficult for law enforcement. when you were at the doj, what was the reaction? luke: i was close to these cases. i do not want to talk about one particular case. it is very difficult as a general matter to solve cyber cases. evidence is fast-moving, very fleeting. anonymity is easy to have on the internet. it was yet another challenge in the ability to make the cases. it does not mean it cannot be made. emily: you dealt with fallout from data breaches from target to sony. interesting when you look at the financial performance. it has not changed. what has been the real cost of data breaches?
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luke: we are moving out of the shock and awe phase of this. where a major data breach is a surprise to anyone, it seems like there is a major one in the news every week if not every day. we are moving into the liability phase. we are starting to see privacy lawsuits, shareholder suits against companies. we have seen regulators jump in and bring heavy fines. i think it will only increase. what i think is important to know is that companies can prepare for these things and lower the risk up front. emily: you were very involved with negotiations with the chinese government over these issues. what about china's pledge to stop hacking u.s. companies? do you believe they have followed through on that? luke: i should say first that i was very excited that presidents obama and xi were able to strike the agreement. i was part of the negotiations. it was a huge breakthrough for
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the benefit of industry for these governments, for the first time ever, to say we agree that nationstate hackers should not be used to steal economic advantage, trade secrets from private companies. it is a huge step in the right direction. it remains to be seen how it will play out. it has already brought the rest of the world closer together. emily: but we do not know if it has actually stopped? are they standing by what they agreed to? luke: it is too early to tell. i think it is very hopeful that china would take a forward leaning stance. it is a constructive move as china moves from a manufacturing economy to an innovation economy. inteectual property will be more important for china to protect, as well. emily: what other nationstates are you worried about? luke: every cyber crime in particular is prevalent in many countries. it used to be dominant in
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eastern europe. the russians were particularly strong in cyber crime areas. it has gone way beyond. we see groups in the united states, parts of africa, the middle east, and asia participating in sophisticated cyber crimes. emily: what are companies telling you? are they being attacked by nationstates? what are they seeing? luke: they are certainly being attacked. they may not know whether it is a cyber criminal or nationstate. i think many companies are unsure what to do, pouring a lot of money in the issue. i think, with some proper planning and targeted advice up front, they can manage and reduce risk. that is the positive thing. lessons have been learned that we can apply going forward to manage risk. emily: what is your take on the panama papers and the mega-leak? luke: it shows a trend that many
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of us in the cyber security area already know. law firms, perhaps hedge funds and others, are providing services to clients where they hold valuable client data. they are increasingly targets. law firms and others cannot assume just by helping a client they are not also a target. emily: luke dembosky, thank you so much for joining us. fascinating and difficult work. bt going on the offensive to tackle cybercrime. the u.k. telecom giant is recruiting 900 people to work in threat intelligence, risk management, and related support service roles. as part of the hiring process they will identify some of the , best talent by participating in hack-athon war game competitions. the company said the push comes after a number of high-profile data breaches prompted a surge of interest from consumers. coming up cancer research set to
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, get a healthy dose of funding from a tech billionaire. we will bring you the details. ♪
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emily: cancer research just got a boost. sean parker announcing he will be donating $250 million to support immunotherapy cancer research. i recently sat down with parker at his los angeles home, where he spoke at length about how philanthropy is driving cancer research forward. take a listen. sean: venture capital, when it is done correctly, happens at a time when a business is ready for commercialization. it is not there to fund basic science.
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there is a middle ground where, for example, cancer immunotherapy. if you're going to fund it, you are taking money away from existing labs and researchers. there is a hesitation. breakthroughs happen quickly that have been driven by private philanthropy because governments have been too slow to recognize that a technology is ready for, you know, investment, whether that is philanthropic investment or venture investment. emily: any crazy areas in biotech you are thinking about funding that we do not know about? sean: pharma has done a poor job of understanding where past drugs that have been, you know, demonstrated safe in phase one and phase two clinical trials, could have been approved in a
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much narrower indication. it may mean, that you need access to a drug that only 300 people need access to. we do not have a regulatory framework today that is good at getting those drugs to market. emily: what is next for sean parker? sean: i think life science is the single most interesting area of exploration. it is to the world today what social media was to the world in 2003 and 2004. in so many cases, it is easy for a grad student to do something that somebody would have spent 30 years of their life to do previously. i do think cost reductions, because of new technology leading to faster progress, are an enormous opportunity. i think the fundamental question
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of the 21st century is, how do we make sure the technological innovations coming out of life sciences are available to everyone? emily: sean parker, cofounder of napster. still with me, keith rabois. it is fascinating what he has done. he is creating a new organization that gets competing cancer research institutions to work together so that these researchers are not competing with each other for money when they are trying to get to the same place. philanthropists have taken offense to some of the comments, speaking up for the world of philanthropy. he says he can get ahead of venture capital. as a venture capitalist, i am curious for your reaction. keith: it is fantastic he is donating this money to propel cancer research forward. many americans suffer from cancer. anything we can do to propel cancer solutions is a great idea.
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more attention, more brainpower and more money can only be helpful. we are on the precipice of a revolution in cancer research. i think there are a lot of things that are changing. he referred to a few of them. the use of data, fast feedback cycles. democratization of access to equipment. they are all amazing things. we funded a fair number of things at the periphery. we have an investment in something that replaces the need for a biopsy with a blood test. it is less invasive, and we invested in some things around breast cancer and genomic sequencing to predict who is viable for treatment. all these companies are selling products helping people today. i think he will accelerate a new wave of products that can come to market and really help people immediately.
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not in 30 years. emily: i spoke to peter thiel yesterday, your longtime friend. he said we can be more effective in getting things done than pretty much everyone. including, and especially, politicians. >> is there a sense of agency? it feels like you can actually do something on a smaller scale. i think this is where people cumulatively will make a much bigger difference in solving various problems, changing society, etc. emily: it struck us today that republicans are stalling funding even for the zika virus. what do you make of the comments? keith: peter is generally right that private enterprise can be very effective. there is a reason why we have private organizations, and why --y have darwinist equally darwinistically evolved.
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the corporate charter, the corporate vision, has proven to be incredibly effective. there are examples of government collaboration around the manhattan project or putting a man on the moon. there are more examples of a nation driven by company collaboration. take research and throw it in a corporate structure, that may be the way we solve human life issues. emily: at the same time, you have theranos, a $10 billion potential company, that just evaporates. keith: there is a correlation between risk and reward. to get ahead, you have to take risk. when dealing with human life, it is a complicated industry. there is a correlation between mistakes and learning. one has to be willing -- astronauts, for example, were killed. rockets blow up. those things happen, but that is what gets to the state of affairs where people improve. you cannot have one without the other. emily: keith rabois, thank you for joining us today. it has been great to have you here. coming up, details on the security breaches behind the panama papers.
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we will hear from checkpoint ceo next. ♪
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emily: the panama papers are causing an uproar around the world. one man says the leak could have been avoided. elliott gotkine sat down with gil shwed, ceo of checkpoint. let's listen in. gil: i know there are solutions. there are great demonstrations of technologies. we have them. if these companies used them, they would not be susceptible. we have technology for end to end document encryption that i use everyday. we have technology for data leak prevention. it is something that we do that, if it leaves the company premises, it would be stopped.
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it is a great example of technology that exists in the marketplace when they do not use , them, companies get hurt. elliott: would you be surprised if we see more breaches of this nature? gil: i am sure we will see more. it is part of human nature. part of it is human nature. part of it can be reduced or eliminated completely with the right technology. elliott: has the phone been ringing off the hook from the british virgin islands and panama? gil: i have not heard that yet. my experience in the last few years with the enterprise market is not reacting to the change in cyberspace, not proactive enough to address it. that is something that can improve. for our business, the need for security is good. it is good that people do what is right for business and right for life and not just worry about the risks. there is plenty of risk around us. it is good we drive our lives not just based on risk.
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elliott: there was a drop off in high-profile corporate data breaches, such as target, apple, and jpmorgan. have you noticed slowdown as companies are less fearful and less inclined to spend money they need on products like check point? gil: cyber security is one of the best spaces in terms of spending today. demand is actually growing. that is what i hear. i am not an expert in microeconomics. that is one of the good places in i.t. today. i do not see any slowdown. elliott: where is most money being spent in cyberspace? gil: the money in cyberspace is quite diversified. that is one of the challenges. companies need to adopt strategies, need to consolidate. the spending today is very diversified. because of the demand and because of the needs, from the largest to the smallest companies in the i.t. space,
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there will be some consolidation. customers should also focus their strategy and energy and create a unified solution. elliott: there are a lot of startups out there. do you get a sense they are eating your lunch or beginning to nibble on the sides? are they making headway against check point? gil: it is challenging to the marketplace because the customer cannot absorb 1400 ideas. but the idea of innovation is healthy to the market and gives us all a great chance to experience new technologies and ideas. and sometimes to acquire them, like we do. elliott: you said you are open to making more acquisitions if the right opportunity comes along. is there any kind of limit to the size of acquisitions? could we see something transformative taking place? gil: whatever opportunity we find, we will go for it. check point is a healthy company.
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we have a nice market cap. we have around $3 billion in cash. i think we are ready to do whatever is right for the business. we are not hinting we will do a major acquisition. there are many good opportunities but we will do , whatever is right. elliott: do you expect to see more acquisitions this year? gil: i hope so. we have a great business developing department. they should do their work, so i hope we will find something. elliott: last time we spoke, you just signed a contract with an israeli startup to prevent hacking of cars. you will be approaching vehicle manufacturers. have you gotten any traction? any deals so far? gil: we are in discussions in different areas, but the car industry specifically is slow to react. the deployment cycle is five to seven years. i don't expect any news soon. automotive security is interesting.
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it is part of the broader internet of things. there are plenty of things to be done in the internet of things area. some things are by protecting the network itself, which is where the majority of the technologies will be deployed. emily: elliott gotkine with check point ceo gil shwed. time to find out who is having the best day ever. today's winner is all you drone enthusiasts. drone racing is officially mainstream. espn has signed a multi-year deal with the international drone racing association to bring the sport to national television. the first broadcast will be the 2016 u.s. national drone racing championship in august on governors island in new york city. i cannot wait. i am a little dizzy after that. that does it for this edition of "bloomberg west." tomorrow, we hear from ggv capital's glenn solomon about the firm's new $1.2 billion fund
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to find the next elon musk jack dorsey in china. ♪
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