♪ >> live from pier three in san francisco, welcome to "bloomberg west," where we cover innovation and technology, and the future of business. i'm cory johnson. let's get a check of your top headlines. $9 million in new aid after a devastating earthquake in nepal. the death toll for the quick now stands at 3800 people. the time is running out to find survivors. rescuers took advantage of clear whether an agreeable able to bring down more than one 180 climbers clapped for two days on mount everest. among the deaths, google executive dan freberg.

deutsche bank investors not big fans of the five-year plan. their plan involves shrinking the equity business. >> you will see us stronger inequities than we are today. you'll probably see us as a smaller sticks income house. cory: they say they will be able to maintain capital ratios despite raising costs. greek shuffle it bailout team reducing the duties of the finance minister. he will still lead talks with the imf creditors, day-to-day deals will be handled

separately. not giving up plans for a takeover of a fellow drugmaker. they rejected their offer today, calling it to load. they cited concerns about whether the companies were actually a good fit. france's largest provider i.t. services is buying new jersey-based iagetgate. they have clients including ge and the world bank of canada. right now to believe, it is one of the most anticipated earnings reports of the quarter. apple released its second quarter report after the bell

looking for a lot of information. iphone sales, and news about whether china took over sales of the u.s.. we might also get an update on apple pay, and i had had a crummy runs in the last year or so it share buybacks, dividend hikes they may say thing or two about apple want sales. maybe have some numbers since they've been shipping for four days. joining us now is our reporters. what is the number you have no idea they are going to report? >> what they talk about on the apple watch. that is the wildcard. the most important number four apple has always been the iphone. pimm: units more than revenues.

>> units is what matters most. cory: why? >> the bigger the installed base gets the more the revenue we will get to enjoy. i think units is what matters this morning for investors ra. >> i completely agree. i think the iphone is most important. given their q2 non-us sales, i think number will transpire. the units -- the revenues go where the units go. cory: is that because you think that what happens over time with the iphone, the average selling price, $687 last quarter per device does that mean that that

might lead to other services if the watches more sizzle and the phone is more successful and so on? >> historically we have seen a heel effect of apple products. but the interesting trend is that there are some offsetting factors now. the ipad rich eisen franchise is weakening. it will be very interesting to know how he did this quarter. they have released a refreshed mac. i think we are starting to see some solidification as to the use case. we do not know what the large screen phones to be used for but with the ipad franchise, people are starting to wonder what else can i do with this device when i need to do real work? what else can i do with the ipad franchise versus the iphone, and the macbook? cory: a lot of things to unpack.

the ipad business kind of a shocker, because few products in the history of time have seen such adoption as the ipad. but we have some of the numbers available. the ipad business sales down year-over-year significant. four quarters in a row of decline. is the ipad done? >> the bad news is you have the fifth quarter as well. 13.5 million units, may be a tad better. cory: as low as 30% down. >> they need a larger ipad, moore uses. maybe this would help the story towards the end of the year. but to your point, you have widespread adoption, a much

larger digestion than most. cory: the products are going to higher margins and higher costs, and so their better be a whole lot better and cooler. they pulled that off untilf with the ipod until the phones to go over but maybe a cheaper competitor is eating their lunch. >> it seems like apple is going through what pc went through in 2008 and 2009. the lower and tablets are eating their lunch. they do not make enough money in ipads to make a difference. >> look at the global juggernaut. this is a franchise that's going to go to the billions. we are at the size of the iphone market in the billions.

by any stretch from these markets they've established themselves brady cannot expect these markets to grow forever. the mac franchise has been posting strong gains while the pc units have been doing poorly. sometimes they have created an industry. cannot expect these double-digit rates of growth every time there's a product refreshed. cory: wait a minute. we are looking at pictures of the new macbook which my wife's new one arrives this week. but i wanted to talk about this mac business. in the face of declining pc sales across the interesting lastly - corner they saw declines year-over-year. they had her doing merely silly

g $7 billion in revenue. does this matter? >> one of the interesting things in the computing space, whether we look at the high info category, the tablet category the two good ones and macs what they have to do is nailed the use case. you have to expand the use case of the mac and of the tablet across different end products. where the macs are still sorely lacking is in the enterprise space. they push a little harder, and that is a total market that could open up for them both for the tablet, but also adjacent for the mac as well. there is some room there. cory: last word? 25 billion dollars in sales last year, that is not nothing. >> everyone is on a four to six week delay, it seems like the

momentum is going to be on their side is to get to the end of this year. cory: thank you for joining us. coming up, a big boost for apple. and the long-term effects of the nepal earthquake. ♪

♪ cory: still to come, apple marks its biggest innovation and health yet. the merger with someone and time warner cable. loretta lynch has been sworn in by joe biden. she becomes the nation's 83rd attorney, and the first african-american woman to hold the post. >> if a little girl from north carolina who used to tell her

grandfather to literature -- lift her high up, could grow to become the lead chief law enforcement officer, we can do anything. cory: she called for a frustration of strength and trust in the justice system. electron comes after the justice department expressed opposition to the deal. the mexican grill now eliminated genetically modified organisms from all of ingredients. it may give him a marketing edge, but a push to non-gm of foods has escalated costs and crimped suppliers.

the big win of apple's health kit software. they have turned result of more than 80,000 patients. this is intriguing. initially it seems like when they first launched it, it turned off a lot of functionality. but now, it is going gang busters. >> you're going to see more applications, especially with the new watch coming out. it is all part of tim cook's strategy to put more of your additional information into the apple's fear. talk to investors and other folks and the wearable industry sees great potential. how much would you pay to live a little bit longer? that is the idea of the kind improving health and fitness. cory: how does this work? will we had a iphone store

patients? >> you have access to medical records from their portal, see you can connect it to your medical device. they are not exactly sure how patients are going to react. they just wanted to open it up and see how it could work. cory: i use it to monitor my sleep in my exercise. i find just looking at it, would people look at their food or even take pictures of their food, they eat better. socrates said an unexamined life is not l worth living. >> the beauty of theatch and thhealth information that is being collected, it is a way to fight cancer and a in some ways. cory: this is part of the business model or the notion of the ceos vision of what people

like? >> look at apple eight you look at the entertainment information you look at the photos. look at all of these things that they are trying to put into the world of apple. you become a more loyal customer going forward. cory: maybe that is why we see what this notion of growing business is. the gross business to people who are more locked into the data. >> it is a billion dollar industry and the health care industry, and they want to be partners. cory: is there monitoring every step and every heartbeat they will not have the next phone via samsung if you want to stick with the program. coming up, companies like pinterest and google paying hackers thousands to break into their systems. the rise of bug bounty programs. ♪

♪ cory: this is bloomberg west i'm cory johnson.

many companies are learning to trust hackers. facebook, google, and pinterest arcane security experts thousands of dollars to break into their networks and find folder abilities. the sick process known as bug bounties, and this for first time and money. kimberly price is the senior director of operations. i think the people who do not know this world, it is a shocking thing. explain where it came from. >> originally there were security researchers that found folder abilities products and reported them to vendors. we have moved into the new world of online services, and people are doing security research where vendors and network admin's felt that it is time to start insetntivizing this

discovery. cory: it takes a certain amount of confidence for a company to say hack asked. -- hack us. >> the reality is these websites or online every day. so this target are out there whether they are encouraging the good guys to come and find folder abilitiess or not. you would want these white hat hackers to comment report this rather than the black hat hackers. cory: i cannot remember who did it first. >> netscape, back in the 1990's. cory: to the point, what has been the problem of the

administration of these? >> managing a bug bounty program is time intensive. cory: why? >> there are a lot of budged report, there are also the issues of managing. there are a lot of self-taught researchers who are very enthusiastic, and do not always submit valid full or abilities. we work with them both to clean out invalid reports and make sure that the customer only gets the valid full or abil full or abilities . we are investing in them to try to increase their skills. we are a service that our customers the managed customers pay a fee. the company's chaos, they pay us for the service of matching

up with the crowd researchers. cory: i think they are pretty stoked to find people to see the way the hackers work, because they were not designing the systems with intestinal holes. with the hackers work in a different way that understands the methodology in a broader scale. >> one of the things that our customers frequently say is that it is a great addition to our defensive program. there is a lot that goes into your development. the crowd generally specializes in finding logic errors that a scanning tool and an automated analysis is not going to wind. these are the types of vulnerablities that we would find. cory: what is going on? >> it can be both. it depends very much on the

customer and the researcher. that is what are other skills managing the relationship of helping to build bridges. helping customers understand that the researcher mindset, and understanding what it entails. cory: why is this so contentious? >> it comes down to timeliness and responsiveness. if a customer takes too long to patch something, the researchers do not understand what is involved in patching, 130 party dependencies there might be. they see it as a sign of their interest in not fixing this. cory: thank you for coming. coming up, the child is challenge of getting an entire nation back online. ♪

♪ cory: this is "bloomberg west," where we cover innovation and technology, and the future of business. united states and japan have bolstered their strategic alliance for the first time in almost two decades. the goal, countering china's growing influence. the president is set to visit the white house tomorrow. small business border should not give up the fight. there is david cameron speech

today in london. >> when i hope those receptions and i get the people startup loans often giving up well-paid careers, and taking a risk having a go, but housley up, that house the outcome and it is what is changing our country. it is a small business revolution taking place in britain. cory: his labor rifle had flourished -- rival had pledged to raise taxes on foreign buyers. corinthian colleges is shut down , working with other colleges to place a 16,000 students. they collapsed last summer and the education department cut taxes to student a great and they are accused of falsifying grade attendance, and job placement.

google gets a patent on a shopping spree. the excepting applications last from owners. in the wake of that devastating earthquake in nepal over the weekend tech giants like facebook and google sprung into action. google opened its person find a tool -- finder tool, and facebook activated its safety check. if you're in one of the areas affected by the earthquake, you will get a notation asking if you're a safe or if you want to check on any of your friends. when disasters happen to people need to know their loved ones are safe. it is moments like this would be connec -- when being able to

connect really matters. i cannot tell you how many were expressing their love of facebook after finding of their loved ones were ok. >> that is how i found out about the earthquake in general. i had a notification saying that my friend jenny was safe. this is one of the ways that facebook is trying to make it's also essential. this was released after the earthquake and tsunami in japan, and they spoke as been releasing it after all these disasters. facebook if they see you are in the radius of the disaster they will send you a paying saying are you ok >> on this and tell us if you are. it will send an occasion to all of your friends and let you know. there is a counter that shows you these friends that say they are safe, here are those who

have not responded. cory: there is fund-raising app on facebook and elsewhere. >> facebook is agreeing to match donations up to $2 million. they are going to have notifications from users saying if you donate we will match it. google is a little bit different. they will tell you of other people heard information, because they cannot always be the person who is in the situation. cory: thank you. i want to stick with the news in nepal. the internet is so important to the way that people are finding out what is happening, helping in the recovery. the essential infrastructure has been hit hard. what is the state of the internet today? i am joined by the director of internet analysis from hanover new hampshire. what was the state of the internet before the earth take? >> it was a pretty small market

as far as asian nations go. it was fairly undeveloped. cory: in terms of the quality what were the connections like? >> nepal is primarily relying on connections through india. we saw outage is a curse starting a little after the earthquake. those international links have stayed up, but that is a different question from how people access the internet. there is an access layer also called the last mile, of how people reached a telecom. for most part, it was up, it was awfully a little bit yesterday. for the most part it stayed online, and all of the people

were able to reach the surface -- the ability is been impaired somewhat dramatically at times. if you are accessing via mobile they are not that great in nepal , and with the earthquake we're had a lot of roof-based mobile towers that were down due to the shaking of the earthquake. cory: are these hardwired towers on top of roots? fs? >> there is a fixed line coming out of the tower to go to the fixed line infrastructure. they may have survived. if the tower, due to physics got shaken off because of the shaking came \, that tower is unavailable, and that service is unavailable. for the most part they are going to be having some degradation to

the mobile service. you also have fiber optics through the chiltown. they are not wired in a way that would survive some catastrophic event like a major earthquake. you have cables strong along. cory: of the above ground? >> telephone poles, they are gone. in a lot of the more developed countries, you very those lines. edit infrastructure in the developing world is much more susceptible. cory: it is interesting to see the companies that are trying to offer different services. offering free website signed up so people can use the sillier connect connections to make

connections to the internet and so on. do we expect recovery -- taken can be so many things, but getting information out so how get in is important as well. >> i would expect it to take a wild. there is a lot of damage, and there is a lot of other priorities. loss of life people, the internet will be up there because of the importance of being able to coordinate relief activities. but it could take a wild. it was in bad shape to begin with, and it is in much worship today. additional outages, digital aftershocks or power. generators run out of fuel, and we other outages. they are in rough shape right now. but the country did not drop off

the global internet map but the access to service is very spotty. cory: thank you. we appreciate your help to understand what is going on there in nepal. coming up, time warner cable has another bid for merger. ♪

♪ cory: this is bloomberg west. let's check on your bloomberg top headlines. the division of united technology is getting slammed. the reliability is poor, less of half than what it should be. the fighter jets are the

costliest u.s. weapons program costing $391 billion. walking market bills the airframe for the f 35. a major shakeup at volkswagen. the chairman has resigned. the move could helpful slacken -- volkswagon and move forward. tesla shares flying today. they expected to move a lot this week. comcast's 45 billion dollars takeover of time warner is not happening. the deal that would have brought together the two biggest cable internet providers fell apart. that would've meant fewer choices and were service.

charter communications, the company that has tried to by time warner before says that a new offer would be better before. here's more from bloomberg. lots of news. why would this be a subject to less scrutiny? >> it does not own this media assets. it is simply a smaller company buying a larger company.

not own this media assets.

you what you would be an explanation of what would you think would be the repercussions of title ii. the question has been and will continue to be will we see title two? a lot of the media copies and wireless company's and broad that -- broadband companies we do not know if this was thick around. even if it is passed into law depicting with title ii the really biggest thing is rate regulation when it comes to broadband. as long as they can raise prices. cory: my third point is that and it was not discussed a lot content issues that comcast is an owner, comcast has its own on-demand service and contest

negotiations with the likes of espn has a much larger company can really control the content everyone gets everywhere, even beyond comcast time warner maybe the content was the biggest issue after all. quite it certainly was a big issue from what we have heard. in a new world were all the video programming is being transferred over the internet, is comcast also owns the content and they own the broadband, and their agreement would be running out in 2018, meaning they could theoretically use some of that it is a big chip for content to have an regulators were a little bit hazy on the future there and saying, do we really want to give this power to one company? cory: alex sherman on bloomberg thank you very much. we are glad to have your leadership on this. mark ronson leads "bottom line" like no one else or he is here

now with the preview. mark: businesses maximize profit but in today's inter connected global landscape it is not enough to just be profitable. companies must also way social and environmental concerns. ceo's is in other business officials met in new york city today to discuss the first ever fair fashion center. one of the guests was a joint winner of the 2006 nobel peace prize. i interview with him is coming up in it, the deputy prime minister of portugal to discuss the country's economic growth projections, the situation in greece and much more. i will see you at the top of the hour. back to you in san francisco. cory: bloombert west will be right back. ♪

cory: tomorrow i'm going to try to blow your mind at the bloomberg businessweek design conference. the world's top designers and

business leaders will gather with some really trippy ideas about how to think about design and business at work. none more so than ceo brown. he will be showing me what office spaces look like in the not so distant future. check it out. ♪ >> good design is the design that makes a positive impact on the most possible number of people's lives. in some ways the most creative step in any new design problem is the question you ask at the beginning. if you frame the question too narrowly, or any way that everyone else reads it, there is a pretty good chance the answers you, what with will be the ones that everyone else gets. designers are interested in the future, and so many comes to something like the future of transportation, we are looking at how this will play out in society.

how will that play out in the city and how will that lead to unexpected things? >> what does it mean to be moving spaces rather than people or things around in our environment? the work on wheels concept really addresses this notion of us in merging the commute. rather than going to a fixed workplace every day, you might have a variety and ability to work in inspiring places that happened to be five or 10 minutes away first is an hour or an hour away. they can inspire you to think differently. where effectively moving the burden on the system of moving. >> instead of thinking about the car think about how the car and

transportation and people move through the world and with the world is like when you bring this new technology to play. that is breaking out of the box by stepping back to another level of magnitude around this is in. we are looking at the system of the city, not the system of the car. for me personally, what is exciting about autonomous vehicle technology is that it might allow us to focus on living in our cities, rather than moving through them. it could be pretty special it every so often you get to work on a clear looking out across the water. i know i find that inspiring others might as well. cory: that was tim brown. we have full coverage from the design conference, and i promise, you will get so many ideas to change the way you work. that will be cool.

also, the bwest byte. coming to us from new york. what you have for us? >> 770,000. that is the number of subscribers for title, the music streaming service that jc goes with beyoncé. cory: that is a lot. >> that is more than applebee's ever got. cory: that is really impressive. he went on a twitter rampage i am told. >> he was deciding that people had been insulted him, and he posted a series of tweets that disclosed that subscriber number. you settle their rivals were slandering them in the press. cory: who knew?

more bloomberg west tomorrow from the design conference. don't miss it. ♪

mar ik: am mark crumpton. this is bottom line. to our viewers here in the united states and those of you joining us from around the world, welcome. we have full coverage of the stocks and stories making headlines on this monday. first, let's get you right to the top stories we're following. the death toll in maple -- inmate paul is growing.