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Speaker 1: Broadcasting live to New York, Bloomberg to Washington, d C,

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Speaker 1: Bloomberg to Boston, BLUEMBERG twelve hundred to San Francisco, Bloomberg

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Speaker 1: nine to the Countries, is at M and around the

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Speaker 1: globe the Bloomberg Radio Plus and Bloomberg Got Gone. This

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Speaker 1: is taking stock. According to reporting from Bloomberg, Google is

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Speaker 1: set to launch day Dream virtual reality sometime in the

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Speaker 1: coming weeks. They're laying the groundwork for the launch of

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Speaker 1: this virtual reality and network. It comes also with the

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Speaker 1: official debut of the Androids seven point O operating system

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Speaker 1: this week. The new report says Google is investing in

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Speaker 1: big and original content to include the launch of its

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Speaker 1: VR platform. We've got more on virtual reality coming up

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Speaker 1: right now, Real Reality with Charlie Pellett in the Bloomberg

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Speaker 1: newsroom with the Bloomberg Business Flash and at the keep

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Speaker 1: pim Fox and Alphabet Parrot of Google trading little change

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Speaker 1: right now, up thirteen cents. The stock is at seven

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Speaker 1: seventy two twenty eight. The dial the SMP NZDAC all

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Speaker 1: advancing at or near records. The SMP five hundred index

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Speaker 1: up five to record there one nine point fifteen Nazdak

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Speaker 1: is at a record right now at fifty two sixty three,

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Speaker 1: up four tenths of one percent. Dow industriels up twenty six,

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Speaker 1: a gain of two tenths of one percent. Wall Street

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Speaker 1: is looking ahead to FED share, Janet Yelling speech Friday,

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Speaker 1: and Jackson Hole, as well as next week's jobs report.

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Speaker 1: Jim Glassman is senior economists of JP Morgan Securities. He

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Speaker 1: was interviewed this morning on Bloomberg Surveillance. They've been telling

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Speaker 1: you that they understand that the official onto Plumber, he

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Speaker 1: doesn't capture the whole picture. The fact is, though we

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Speaker 1: are making progress, and um, that doesn't mean you keep

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Speaker 1: rights to zero forever. That's the problem. Uh. It looks

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Speaker 1: like the labor market is improving slowly, and I think

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Speaker 1: if the Fed can slowly work its way back to

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Speaker 1: norm mall, we're gonna have a very good chance of

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Speaker 1: extending this eight year expansion into something much longer. The

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Speaker 1: ten year down to thirty seconds, the yield one point

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Speaker 1: five five percent. The SMP five hundred index advanced after

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Speaker 1: data showed a surge in American new home sales and

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Speaker 1: a slowdown in manufacturing best by soaring eighteen point eight percent.

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Speaker 1: After the electronics retailer reported earnings, The Beat analyst projections

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Speaker 1: gold up to seventy the ounce, a little change the

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Speaker 1: thirteen forty two, a gain of two tents of one percent.

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Speaker 1: Crude oil West Texas Intermediate of one point four percent

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Speaker 1: of sixty four cents forty eight oh five for a

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Speaker 1: barrel of West Texas Intermediate Crew three thirty two on

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Speaker 1: Wall Street. Now, let's take a look at some of

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Speaker 1: the other stories making news. Thank you Charlie from the

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Speaker 1: Bloomberg News Room. I'm Jill Schneider. This news update is

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Speaker 1: brought to you by the Jeep Grand Cherokee, the most

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Speaker 1: awarded suv ever. The Grand Cherokee continues to raise the

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Speaker 1: bar with its luxurious interior and legendary four by four capability.

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Speaker 1: Drive one at your local Jeep dealer. Today. Hillary Clinton

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Speaker 1: is making some new tax proposals aimed at encouraging investment

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Speaker 1: in small business. Bloomberg's Bob Moon has highlights. Along with

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Speaker 1: the standard deduction for small businesses, Clinton is calling for

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Speaker 1: a quadrupling of the tax deduction for new businesses. The

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Speaker 1: proposals would be paid for with some of the money

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Speaker 1: raised from her previously proposed overhaul of corporate tax laws.

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Speaker 1: She also plans to offer federal incentives to state and

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Speaker 1: local governments that streamline unnecessary licensing and find ways to

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Speaker 1: make it less expensive to create a small business. President

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Speaker 1: Obama got a first hand look at the damage caused

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Speaker 1: by catastrophic flooding in Louisiana today. Speaking in Baton Rouge,

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Speaker 1: Mr Obama said he knows how resilient the people of

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Speaker 1: Louisiana are and is confident they will rebuild. Today is

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Speaker 1: cheap flight day, when peak summer prices traditionally drop from

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Speaker 1: seasonal highs to off peak lows. Fair Compare CEO ric

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Speaker 1: Cini says some of the best deals come to travelers

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Speaker 1: with flexible dates. The window of time to shop is

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Speaker 1: right here at the end of August and the first

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Speaker 1: two or three weeks in September, and that's the perfect

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Speaker 1: zone to shop really for the next three or four

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Speaker 1: months of departures. Authorities are asking people in certain areas

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Speaker 1: of Brooklyn and Queens to stay indoors overnight tonight. While

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Speaker 1: City Health Department officials spray past decides to prevent the

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Speaker 1: West Nile and Zeke of viruses. Officials say no trace

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Speaker 1: of Zeka has been found in any local mosquitoes, and

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Speaker 1: the spraying is just a precaution. Global News twenty four

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Speaker 1: hours a day, powered by more than journalists and analysts

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Speaker 1: in more than one twenty countries. I'm Jill Schneider, and

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Speaker 1: this is Bloomberg, Charlie, and we thank you. What again

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Speaker 1: recapping SMP five hundred index up five to gain there

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Speaker 1: of three tenths of one percent. I'm Charlie Palatine. That's

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Speaker 1: sub Bloomberg Business Flash. This is taking Stock with pim

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Speaker 1: Box and Kathleen Hayes on Bloomberg Radio. Virtual reality, What

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Speaker 1: is it and how does it work? And what are

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Speaker 1: Google's plans to dominate this industry? We have Eugene He

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Speaker 1: is the chief executive and the founder of Penrose Studios.

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Speaker 1: He joins us from a San Francisco home to Bloomberg

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Speaker 1: nine sixty and he can be followed on Twitter at

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Speaker 1: e y see Eugene Chung. Thanks very much for being

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Speaker 1: with us. Thank you for having me. Can you describe

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Speaker 1: what is virtue reality and how do you put it together?

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Speaker 1: Absolutely so. Virtual reality is a revolutionary new technology. It

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Speaker 1: allows a user or a viewer to take a virtual

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Speaker 1: reality head amounted display and when that viewer puts it on,

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Speaker 1: they are instantly transported to another world. It's called presence

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Speaker 1: or the magic of presence, which is that unmistakable feeling

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Speaker 1: that you are someplace else. All right, you're someplace else.

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Speaker 1: But how does it work? I mean, I can imagine,

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Speaker 1: for example, wearing three D glasses. You know, you've got

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Speaker 1: a red and a green filter. You go into the

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Speaker 1: movie theater. That's old hat. This is nothing to do

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Speaker 1: with that, is that correct? That's absolutely right. This is

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Speaker 1: very different from three D technologies. It actually a modern

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Speaker 1: virtual reality has come about after the waves of VR

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Speaker 1: that we passed for several decades. So VR was around,

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Speaker 1: you know, tens twenty years ago, but unfortunately it was

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Speaker 1: either too expensive and therefore only the military got to

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Speaker 1: use it, or it was cheap but it wasn't very good.

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Speaker 1: So things like the intended virtual boy come to mind. However,

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Speaker 1: with modern virtual reality, the advancement of smartphone screens means

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Speaker 1: that Apple and Samsung spent billions of dollars in other

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Speaker 1: companies spent billions of dollars making high resolution, high refresh

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Speaker 1: rate screens, and the unintended beneficiary was the virtual reality industry.

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Speaker 1: So now in the last several years, we had a cheap,

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Speaker 1: relatively cheap consumer made br that utilizes cellphone screen technology

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Speaker 1: and you put out those cellphone screens inside of the

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Speaker 1: headbound display and as you you look around, the world

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Speaker 1: moves around with you, or at least it seems to.

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Speaker 1: And therefore you're the consumer is able to pretend or

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Speaker 1: feel like there's someplace vastly different from where they are now. Well,

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Speaker 1: Eugene explained, then how does Penrose Studios fit into all this?

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Speaker 1: And just by way of background, before founding Penrose Studios,

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Speaker 1: you were ahead of film and media at Oculus VR

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Speaker 1: and that was later required by Facebook for two billion dollars. Yeah,

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Speaker 1: absolutely right. So Penris Studios at Penri City is we're

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Speaker 1: a startup based in San Francisco, and we are dedicated

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Speaker 1: to making high quality, heard, warming, emotional stories and movies

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Speaker 1: inside of virtual reality. UM. We utilize a real time

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Speaker 1: engine that allows you to move around is space and

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Speaker 1: really explore the space. The highest end VR consumer handsets

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Speaker 1: today allow you to explore FID team foots by fIF

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Speaker 1: team foot space. UM. So we take this technology and

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Speaker 1: we create our own technologies to go build these virtual

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Speaker 1: worlds and the characters as well as the stories within them,

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Speaker 1: and of course the portamont to different VR headsets like

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Speaker 1: the aduost, HTC Live and now Google Daydreams. Now, one

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Speaker 1: of the movies that you have made is called The

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Speaker 1: Rose and I. It debuted at the Tribeca Film Festival

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Speaker 1: in and this is described as the first virtual reality

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Speaker 1: feature movie, absolutely right. So you know, the rese and

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Speaker 1: I was our early attempts at VR storytelling, you know,

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Speaker 1: and in many ways that sort of harkens back to

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Speaker 1: the early days of filmmaking, which is twenty years ago.

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Speaker 1: And in many ways we see this as the birth

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Speaker 1: of a brand new artistic medium. And just as the

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Speaker 1: cinema came in and displaced existing form as a visual

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Speaker 1: audio storytelling in any ways, so theater opera, Uh, we

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Speaker 1: believe that VR is this next great wave of artistic storytelling.

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Speaker 1: So you know, the allumet our second piece is now

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Speaker 1: twenty minute piece. Then it tells a full narrative story,

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Speaker 1: and it's one of the longest vur narratives of its type.

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Speaker 1: Um and we're just starting to grass the service and

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Speaker 1: break ground about what this new medium is going to do.

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Speaker 1: If you're going to make a virtual reality move to

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Speaker 1: be seen on the Daydream virtually reality network of Google,

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Speaker 1: would you have to use sixteen cameras. So you know,

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Speaker 1: there are different ways to get the content on Daydreams.

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Speaker 1: So Google is definitely very focused on its Joke camera system,

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Speaker 1: which which works well with its Google Daydream system, and

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Speaker 1: that's to create three sixty videos. So you know, if

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Speaker 1: you want to create three sixty videos for the platform,

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Speaker 1: the Google Jeff camera is the way to go. However,

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Speaker 1: Google Daydream is following in the footsteps of many of

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Speaker 1: the sort of major players and VR so like Basbook, Oculus,

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Speaker 1: the Vibe, and Samson with a gear VR and PlayStation

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Speaker 1: with its own headset. And what it's doing is it's

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Speaker 1: allowing the creation of what's called real time storytelling, a

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Speaker 1: real time rendering as well. So you know, in a movie,

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Speaker 1: you have CG animated films and you also have real

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Speaker 1: films UM in VR. What's interesting is that CG animation

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Speaker 1: or sort of what we call real time animation actually

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Speaker 1: works really really elements out of virtual reality because allows

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Speaker 1: you to move around in the space, the explore the space,

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Speaker 1: um you know, better than the other players. So this

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Speaker 1: new iteration of Google Daydream, what they're updating is they're

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Speaker 1: allowing you to use real time engines like Unreal Engine

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Speaker 1: and Unity and things like that. UM and that's actually

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Speaker 1: what we're going to utilize because we believe that it

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Speaker 1: delivers the higher level immersion. So it's still a film,

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Speaker 1: you know, it's still movies, but you're able to use

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Speaker 1: utilize the three sixty engine and uh and that's different

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Speaker 1: from you know, a three sixty degree video. So you

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Speaker 1: have a lot of options, and the Google is doing

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Speaker 1: a great job and updating the platform for the capability.

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Speaker 1: Thanks for explaining all of this. Eugene Chung is the

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Speaker 1: chief executive and the founder of Penrose Studios. Joining us

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Speaker 1: from San Francisco, of course, home to Bloomberg six. You're

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Speaker 1: listening to Taking Stock. I'm pim Fox my co host

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Speaker 1: Kathleen Hayes on her way to Jackson Whole, Wyoming for

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Speaker 1: the Federal Reserves Annual Symposium. This is Bloomberg coming up

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Speaker 1: on taking Stock. We're gonna take stock of investing in silver.

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Speaker 1: Price of silver is up more than thirty percent so

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Speaker 1: far this year. We've got details on whether that rise

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Speaker 1: will continue