>> live from pier three in san francisco, welcome to "request" where we cover the future of technology and business. i'm emily chang. the sec is putting out a proposal that could give companies willing to pay for it a faster lane on the internet. and wearable tech design is more important than ever to the tech industry. we will get the latest trends designeiner perkins partner and former president of the rhode island school of design, who joined me as a special guest today. first, a check of headlines. investors are reacting in a big

way to apple's earnings report and stock splits. shares are up about eight percent as the company sold a record number of iphones. also boosted its share buyback to $90 billion. facebook shares are up about one percent today, not showing too much of a pop-out to the social earnings. blowout facebook reported a 72% rise in revenue and said mobile is accounting for 59% of ad revenue. still, executives said spending will increase the rest of the year, but warned it will take a while for video and instagram adds to contribute to revenue. and time warner cable is doing a better job of hanging onto subscribers. it lost only 34 thousand residential tv customers in the first quarter, compared with 217,000 in the prior quarter. been offerings more viewing options on tablets and set top boxes, head of its

planned takeover by comcast. day,r lead story of the the days of all traffic being treated equally online are coming to an end. the sec is set to propose new rules for net neutrality. this would allow internet service providers to charge companies like google and netflix a premium for access to faster service. that could mean more -- higher prices for you. critics that say net neutrality saysad, our next guest they are wrong. your cook joins us with more. -- peter cook joins us with more. >> everyone has been anticipating a decision from tom wheeler and the sec as to how this decision will move forward. this latest proposal caught a lot of people by surprise and i think even the sec has been surprised at some of the pushback it has been getting initially to this proposal. basically, the sec maintains this is not an abandonment of

net neutrality, but if you will, a strategic retreat, one that they think will pass legal muster with the court, and one that does not automatically guarantee every high-speed wealthy content player out there will have to charge for access to those high-speed lines, but that the sep see -- the sec will decide on a case-by-case basis "commerciallyare " going forward. if they are, that will be the practice going forward. the sec still believes net neutrality is in tact. >> not an abandonment of net neutrality, but will it be a tough sell? >> it is already emerging as a tough sell. you have consumer groups opposing this. it will be a tough sell with democrats on capitol hill, who have lobbied very hard for the

most open internet possible. but this is where the court may toimately position the sec where this is where they have to go to get some sort of tying field for everyone to abide -- some sort of playing field for everyone to abide by the same rules. >> netflix and amazon prime costs may go up because of this. thanks so much. i want to get to amazon, and the key question for ceo jeff bezos this afternoon when they report earnings. is the company ready to prioritize profits? bezos has been pumping money into initiatives like drones, warehouse expansion, even as sales growth has slowed down. but it has raised prices on primemembership to 29 --

membership 29% to $99 a year. brian, what are you looking for in the amazon numbers today? >> the street is expecting about 21% growth. over the last quarter, 20% growth. that is the first thing. from there, you break it up into segments. amazon has its hands in so many things now, you come at it from the top. loud services will be a key area that people will be looking for insight into. there have been recently announced cuts. investors want to get a sense for how amazon is faring against cutle, who also recently prices, and microsoft as well. there's a battle going on. one of my coworkers in i.t. support asked me if i was interested in amazon's new workspaces products, to give me new workspace. very interesting. aside from that, investors will be looking at new initiatives like amazon fresh, which is there grocery -- which is their grocery delivery effort.

and they have announced the raising of the prices with amazon prime, so we will be watching that. ad the tv is attracting tremendous amount of attention as an affordable set top box, competing with apple and row crew -- roku. we will need to get clarity across all of amazon's business initiatives, and get a sense, like you pointed out earlier, of when we will see a profit. this is an expensive stock and investors still believe in bezos's investment. people will want some insight. singleel like every quarter, amazon's margins are slim, as they always are. and the stock goes up and nobody seems to care. >> a lot of investors are looking out 3-5 years and as tog as amazon continues

invest in new areas, grow the top line, and gain share in these critical areas that are growing in importance, like media streaming, like tablets, then investors will be content to see a lower margin and not much on the bottom line. that will eventually end, but for now, amazon is showing a lot of strength. , i thought the day it came out it was fantastic. the whole family loves it. and amazon is likely to do a smartphone near-term. i am interested to see what they do on the smartphone side. that is something that i don't think they will talk about, but we are likely to hear more about their view on opportunity and hardware. maybe the idea of doing a smartphone might be hinted about in this call. i do want to ask you about apple. surprising iphone sales, surprising revenue. you had a good question -- why? why do you think that it?

>> there has been a lot of promotional activity in the march quarter, especially with the five c, which has not done that well since it came out last fall. at least, in my estimate. you have seen carriers not in the u.s., but around the globe, offering this at discounted pricing. that is bringing in new buyers. it is not coming from china. china mobile increased their iphone sales recently and they were not that great. s continues in strength. and apple is still selling the iphone 4s. it is not something they talk about much, but i may have seen an upside in unit. >> yesterday, we were talking about this, some people call this an air pocket of new product, a black hole that apple is in. without these new products, can they sustain growth? >> no, we need to see a new product. it has been four years since the

ipad came out. and i think this is one of the reasons that investors are enthusiastic and why i am bullish on the stock and we are telling customers to purchase apple now. we think you will see one of the most innovative cycles that we have seen. it will start in june and continue until the end of october. his is a tremendous product cycle, and -- this is a tremendous product cycle, and this is in addition to the buyback. this is a tremendous cycle for apple. and maybe the most important one. x thank you for weighing in with us -- >> thank you for weighing in with us today. he is a designer and the latest to join kleiner perkins. and he is a guest next on "bloomberg west." ♪

>> i'm emily chang and this is "bloomberg west." spent a decade in

research and then went on to be the president of rhode island school of design. he is with kleiner perkins and also the chair of the ebay design advisory council. john meada, our special guest this hour. thanks for joining me. i have been looking forward to this. >> me, too. >> how is he going so far? how do you like silicon valley and venture capital? it is amazing. i think the speed is so extraordinary that -- the people, the energy, it is intoxicating. >> how did kleiner perkins convince you? >> i was tracking a lot of designers going into venture. the ceo of air bnp.

>> and i kept telling students to go be like them, and i felt a bit disingenuous that i was not going myself. so why not, i thought. >> what is it you're helping the company do? you are also sourcing investments. >> it is really strategic value design in company formation, company mission, and incubation. how to get design as early in the process as possible. it is something i'm lucky to get the chance to look at very closely. >> we have been talking about companies reporting earnings. what are some established companies that you think are designed well? know thatmportant to doing design well is not something that you get good at suddenly. if you do it for a long time, things work out well. people say apple's design is great. you have to remember that they have been added for 30 years --

at it for 30 years. >> they have always been a design company. >> they have always been design first. >> do you think that apple is the gold standard still? >> i think apple is one of the standards. i see ibm coming back. they began in the 60's and they had to revise it. i have gotten the chance to work with ebay closely. i'm watching that. ecosystem of startups, a lot of activity there. >> any particular company that you would call out as doing a good job? >> definitely flip board. they are moving like a rocket. and people ask me why they are doing well, and it is because of camp, one ofo west ca and held great designers disappeared and he has come back with this company. >> it is interesting, when you

, ink of ebay or air bnb don't think of design with those companies first. them a greatnk designers, i love their website. but that is not the point. joe and brian are industrial designers. they design physical things. they love the physical environment. they get the physical environment, the space. the website is like an artifact of that. the website is a scaling mechanism for their sweet understanding of the physical environment. the design is over here, not on the web. >> what is the wrong way to go out -- about design? who is doing design poorly? >> i don't like to throw apples at people. >> i figured you would not. what are some common mistakes?

>> i think it is common to get the technology going and then realize, we forgot to make it powerful for people to use. so they will spray that on the top, kind of like lip stick on the pig. and what happens? technology is always a game changer. design was something that was pretty frivolous and never had a big impact. but if you have a significant design, design of a business model, and great technology, scalable, then you get a great company like flipboard. think design is more important than technology? >> no, technology is the most important. i went to m.i.t., two, so i am kind of schizophrenic in that respect. changingy is the game

experience in which human experience can happen. it has a good idea and has to be implemented. and this area will get it to scale. >> we will talk a little bit more about your role at ebay next. coming up, you may not think of ebay first when you think of a company focused on design. we will ask john meada why he is working with the company. ♪

>> welcome back. i'm emily chang. ebay may not be the first company that comes to mind when you think about design, but john to theeports directly ceo, john donahoe.

thanks, jane, for coming up from san jose. i will start with you will stop it is so great, the story of how you ended up with ebay. i would like you to tell it for me. >> brian chesky and john donahoe are great friends. his great design

and that is why he asked me. >> how does ebay think about design? >> ebay has moved from just thinking about pixels to something more holistic. the more that we can be customer design andinging technology and product together. >> you work together a lot. >> i work all the time with dane. about brian chesky post on social media, it is about culture. we have been coalescing the culture across all of ebay's companies. >> what is that all about? >> we are working on awareness and bringing the different designers together. we 13 c1 >> you are watching "bloomberg west" and i'm emily chang. my guest for the hour is john maeda of kleiner perkins and also formally the president of the rhode island school of design. how do you get good designers? that is the question right now. before that, i'm curious about how you got into design. you have an engineering background, but how did you get into this? >> when i was young i went to a parent-teacher conference and the teacher said i was good at math and art. my dad overheard this.

andade tofu for a living the next day he was saying to a customer, john is good at math. years later, i went to m.i.t. and to art school. >> you are still focused on that? >> i went back to it. you know very acutely what the demand is for design talent. how competitive is it? >> it is incredibly competitive. when you think about what a startup team used to be, it was the engineer and a business guy. the started team -- start up team today is the this this guy, the engineer, and more. in demand has gone way up recent years. >> what makes a good designer? are they also a good engineer? is a good engineer also a good

designer? >> the people who can both do engineering and design are a unique species. and to me, the leadership question is a big question, because companies that want to scale it a better design leader than a pixel person. >> what you mean by design leader? >> someone who loves people. it is rare. >> the people thing is kind of a pain. design leaders are much more important. you represent companies from facebook to square. what do they want? >> ultimately, they are design first companies and that is a big shift. talentortunity to bring to the table is huge. they are fighting with every other startup. if you are one of these companies, how do you create an ecosystem to attract top design? you walk into squares offices and it feels like a place that a

good designer would want to work. the same thing with facebook. a place where creative people have a ptolemy and will want to spend their days. >> i'm curious about that. -- will have autonomy and will want to spend their days there. >> i'm curious about that. that assumes you know what they want. what do you do to create design leaders? of the day, the inspirational design leader, there are not that many of them. it is a rare breed, and that is why you see the largest tech companies placing a premium on bringing someone to the table that comes out of fashion, retail, industry. other designers get inspired by these people and want to work for them. it is a fundamental shift in the way companies are doing business today. >> john, what do you think of a company like apple bringing in the ceo of burberry, and bobby brown going to yahoo!?

people from the fashion industry -- i don't know if they have an engineering background, but people from the fashion industry going to big tech companies? of a question of technology. the fashion industry is disposable. do you want that take? for the startups, you're looking for something much more substantial. you do not want just fashion, but technology and great design. >> what do you think about the fashion trend in tech lately? watches,e used to buy we got them based on how well they tell time. today, that is and after product. you by your watch based on design. you by your blue jeans based on design. needsies have way greater for design talent than the companies of the last generation. >> it seems like they used to 1000t m.i.t. that in

engineers versus 1000 designers, within a 1000 designers, i can find 300 that want to learn engineering. and with 1000 engineers, you might find one or two that want to design. >> that is true. unfortunately, many schools do not teach people going into design very much technology. it is all focused on print design. and now you are seeing designers saying, i want to learn front end coding. i will be more versatile if i can write javascript. >> there is a whole debate about flat versus skew more fizz him scumorp -- skew more fizz him chemorphism. what is that?

>> when things are simple, we get to complex. when things are too complex, we are tired and we make it simple. >> is one better than the other? >> no, it's a trend. but it's better because it makes you feel something, like this beautiful dress you are wearing. how do you do something different -- that is what we want to do as people. >> does there have to be a balance? or does a company have to commit to just one? >> it is a balance question. >> all right, fascinating conversation. thank you for joining me. from twitter to facebook to the conversations happening online, they are all becoming important as ratings to television executives. up next, the rise of social media and how it has changed the face of tv. ♪

>> welcome back. i'm emily chang. facebook inc. they move into the fitness tracking business -- facebook makes a move into the fitness tracking business. they have bought a mobile app of a fitness tracker. it is the latest acquisition for facebook, which agreed to by whatsapp for $19 billion, and oculus virtual reality for $2 billion earlier this year. now turning to our special series looking at house technology is changing hollywood, facebook is announcing the launch of newswire. the new service is part of a partnership with story bullet, inc. to be a resource for journalists offering -- aimed to journalists. for turn lis

why is facebook launching something like this, a newswire? >> and it is just that. it is a newswire, and if you choose it, you can get it in your newsfeed. the reason is the tie back battle between facebook and twitter. the news networks, the conversations that are happening , they want to have more of those conversations tied around things that are happening in real time, the same way you are watching one of the big news channels and there is something interesting to a wide group of people. one of the knocks against facebook has been, can you really get people engaged around something like, hey, this is my new pair of shoes? maybe a couple of people are interested, but a lot more people are interested in a meaty topic. this is the way to get a lot journalism,d, true

and obviously, story corps is a partner in this and they look on all of the platforms and find the real deal news. if it is coming into your newsfeed and that is something you are interested in sharing in a big way, then that makes facebook potentially more powerful. on the one hand, this is a small department, but part of the bigger story. >> is this a threat to traditional outlets that are focused on breaking news like, i don't know -- bloomberg? >> all of the traditional companies, even here in hollywood, are very aware that there are massive conversations taking away from media. how do they deal with that? corp.'s have news rupert murdoch showing interest in story core, which they ended up buying. and the other thing is that the conversation has come to show business and fueling entire

shows. our guest joins us now as part of our series. malcolm, thanks for joining us. you guys work with tv channels thatbaret -- capturing conversation. tell me about how it works. >> as you know, facebook is breaking on issues more and more. a fireizen is there when or a car crash occurs. and first responders can let people know when they are heading to a scene, or something is happening. social media companies know that they need to have a way to pay attention to that. but it is complicated to do. there is a lot of computational power and technology you need to access that and make it easy to use inside the existing editorial process. what we are doing is simplifying that whole process by processing

hundreds of millions of messages a day, and then delivering to media companies as well as entertainment and sports and so forth, delivering that within that news environment so that they can turn the news over quickly. >> and how much of one particular show can you fuel? in some cases we are talking about the ability to do huge amounts of tv programming for all of this data that you guys are mining. >> it is interesting, because as social becomes a greater part of the conversation, as long as you have the right tools -- some of which we are providing inside the newsroom -- we have been able to power as much as 50% of daily shows. there's quite a bit coming from takel that tv programs can it vantage of. and this is broadcast by the way. the same will apply to blogs or youtube or online video tech shows.

but i don't think we are that advanced just yet. but we are getting there, though. >> to tie this back to a business story like yours, talking about this is one thing. but you are growing a business. this is catching on. >> as we roll out with more and more customers, they are finding that the shift is occurring with the way they tell stories and the stories they decide to tell is directly affected by what is happening in social. in the old days, a newspaper or news editor for broadcast at an editorial desk might decide to run with this story first, this one second, this one third. but they will look at what is trending online and they will say, what we thought should have need to third story, we spend more time on that and lead with that. socialist telling them what people are -- social is telling them what people are interested in. that is a complete change. >> this also brings up the

question of whether computers should be making the decisions. world of some in the social media that feel threatened by this. where does the balance occur? >> at the end of the day, i don't think the machine can really reflect the voice of a particular news outlet. of course, google has one of the most complex algorithms on the planet to determine what news goes on google news. but i don't think that people feel like they are getting a voice that they would get on, let's say, bloomberg, or any of the news channel. at the end of the day, you need someone who will do that final duration and described a story. there are the facts and then there are someone's feelings about the facts and how they talk about the story. that is what happens at that final level of duration. -- curation. the kind of view that as the machine is figuring out all of the stories that are useful and valuable. and then the editor is making the final call in reflecting the

voice of the news outlet. >> and just in our last 10 seconds, when it comes to stories on, let's say, sports or celebrities, what do you find the greatest amount of content being generated and then ultimately making its way onto television, where is that coming from? >> that is hard to answer. if you think of breaking news that is happening all the time everywhere, sports is the same and entertainment is the same. they are all about equal as far as i'm concerned, because there is just a ton of it everyday. it would be very hard to measure what is out there and how much. you have to look at how many people are consuming it, and that is a business question. but in terms of revenue, that is where the money is. >> that is a good one for us to know. malcolm, thanks for your time. emily, back to you. >> our senior west coast correspondent, jon erlichman.

still ahead, we ask john maeda about his favorite apps and favorite clothing designers. that is coming up. ♪

>> welcome back. i'm emily chang. as the former president of the rhode island school of design and current partner in one of the most prestigious venture capital firms in silicon valley, john maeda has a long and distinguished career in engineering and design. specialth me, he is our guest host for the hour, john maeda. you live at the intersection of technology and art, a place that can get very complicated. is it stressful being who you are? theknow, do you think about design of your table, your chair, and always want it to be better? >> i used to. i lived in tokyo for a while and swiss typography

company for a while, and that is double. it is like making things 0.001 perfect on the page. and then i broke out of it and i went reddish style. british style is free. >> so you let go a little bit. >> a lot. >> what apps are on your phone? what do you focus on? >> design is not just an aesthetic experience. junkie, off-road, undesigned experience, and those are all examples of good design. on one hand, i might like the solar app, because it is a great way to look at the weather and it feels like a rothko painting. on the other hand, i might like snapchat.

the combination of fried chicken and expensive food. >> a good balance. again, back to balance. >> balance, yes. >> what about your clothing? blackjobs always wore the turtleneck and jeans. >> it is important to note that his black turtleneck was designer. there's something about staples in design. very simple.staple design is not just about how it looks, but what it is made of. >> what the signers do you like? the whole combo. >> a whole spectrum. i want to talk to you about personal computing. i just got my own personal google glass. what do you think?

it kind of like robert brenner -- >> who used to work at apple. >> yes, and he did this great make there he could phone look like beyoncé. if he was wearing the stuff before, it would be much cooler than now. >> someone told me that i was not allowed to wear these in public because i would be a social drama. literally, a social pariah. is all about how it is introduced. if beyoncé was wearing it, you would want to wear it. it is about the culture around the technology. >> what about this? of,hat is another example you cannot tell time with it and

it does not display anything, but people are wearing it. it is a trend. >> what do you think about wearable data in general? where is this going? we have been discussing that people don't want to wear them every day and what you wear is very much an expression of who you are. >> i feel lucky, because i feel like we foresaw all this stuff coming for stop in the ninth -- all of this stuff coming. in the 1990's, there was a guy wearing the stuff and doing this. and there was a paper he wrote about parasitic power. it was all about how to harvest power off your body, and the best place to harvest it is off your neck. that is where your body is warmest. we went off topic. >> what are you wearing? >> i wear a mystic charm. and it is a watch, and i'm an older person so i like to wear a

watch. it doesn't work all the time. >> they will be very happy to know that you are wearing that on the show. i will take these off. it is now time for the bwest byte, where we focus on one number that tells a whole lot. jon erlichman has the bike for us. what do you have? keep them on. >> i will spare everyone. check this out, glasses or no glasses. the number of times president obama has vowed to and played soccer with a robot, which he did this week in japan. there is a humanoid robot that honda has been working on for 14 years. he is doing some dancing moves. i believe he can also walk up juice,nd served a cup of and recognize faces. >> you like robots? >> i do. like john maeda, -- >> john

maeda, our special guest host this hour. and thank you jon erlichman as well. ♪ . .

>> from bloomberg world headquarters in new york, i'm mark crumpton and this is " bottom line." 'sday, general motors first-quarter profit the estimates. then government regulators consider new rules on internet traffic and payment. .nd ambulance fraud and overuse how prevalent is it in the united states? to our viewers in the united states and those of you joining us from around the world, welcome. we have all coverage of the top stories making headlines today. megan hughes reports on the bow