ster abe pm abe: on the tpp, this is a region where growth is prominent, and for proper -- and for money under proper rules to flow freely, without a doubt we will make affluent other countries participating in the tpp in the asia-pacific. the people in the countries will be able to lead affluent lives in this will feed into this. with the general public's understanding, we would like to make an effort, and in this context, with the united states with president barack obama and myself, we want to exert leadership to bring about an

early conclusion of the tpp. in asia, there's a tremendous demand for infrastructure. the financial system to respond to this is very important. on the recognition that we see eye to eye between china and myself this is a point on which we see eye to eye in many countries. for japan to participate in the aiib is a decision we have not taken yet. to create such an enormous financial institution, since this will have an enormous impact on asian countries and fair governance is necessary for the institution, in particular to review individual projects and approve of this is

indispensable. and that sustainability and the environment and society and the impact of this should be considered. we need to secure this. it is not only about the lenders , but the borrowing nations. for example, various infrastructure projects may not be sustainable. it may have too much of a burden on the environment. if this is the case, this will be a very negative result for the citizens of the other countries. it will prove to be a burden. in that sense, proper reviews as to whether lending the money to our country will be of benefit to the country. rigorous review is very important. from such a standpoint, the

points to be secured is very important. from such a standpoint japan and the united states should cooperate and we need to dialogue with china, and it is my intention to do so. president obama: let me agree with prime minister abe when it comes to the infrastructure bank proposal that has been made by china. asia needs infrastructure. there are a lot of countries that have difficulty financing infrastructure, if we have the infrastructure put in place and developed, they can grow much more rapidly and that is good for everybody. it is good for that country, it is good for the world economy it is good for us. we want more markets to get our goods in and sell our services to some of the best in the world. and china has a lot of money.

it is running a big surplus for quite some time. to the extent that china wants to put capital into development projects around the region that is a positive, that is a good thing. let me be very clear and dispel this notion that we were opposed or are opposed to other countries participating in the asia info structure bank. that is something not true. it sprung up out of one story after the brits decided they would join up, and folks have been running with it, and there have been all of these editorials subsequently based on these reports not for me official position of the united states government, but a series of behind the scenes quotations. where we have said and what we have said to all the other countries involved is exactly what prime minister abe said

which is if we are going to have a multilateral lending institution, then you have to have some guidelines by which it is going to operate. that is how the world bank operates. that is how the imf operates. there may be weighted votes in terms of who is the biggest contributor but you have got to have some transparency in terms of how the thing is going to operate, because if not a number of things can happen. number one, money could end up flowing that is misused. or doesn't have high accounting standards. we don't know what happens to money that is going into projects. as prime minister abe said the projects themselves may not be well-designed. they may be very good for the leaders of some countries and contractors, but may not be good

for the actual people who live there. the reason i can say that is because in the past, some of the efforts of multi-lateral institutions that the united states set up and didn't always do right by the actual people in those countries. we learned lessons from that. we got better and making sure we were listening to the community and thinking about how this would affect the environment and whether it was sustainable. our simple point to everybody in these conversations around the asia infrastructure bank is let's just make sure that we are running it based on best practices, based on what we have learned from the entire postwar era and how other multilateral financing mechanisms have worked . if in fact the asia infrastructure bank that is being set up ends up having

those kinds of safeguards is run in a way that ultimately is going to lead to good infrastructure and benefit the borrowing countries then we are all for it, and we look forward to collaborating with the asia infrastructure bank, just like we do with the asian development bank and the world bank and a whole bunch of stuff. this could be a positive thing. but if it is not run well, then it could be a negative thing. what we don't want to do is just the -- just be participating in something and provide cover for an institution that does not end up doing right by its people. when these countries borrow money, even from the development bank for a boondoggle project that doesn't work, there are often times still on the hook

for paying the money back. and there have been experiences like that across continents and across decades. with respect to tpp it is never fun passing a trade bill in this town. people are understandably concerned about the potential impacts on specific industries but also the general concerns that people of had about globalization and technology displacing workers. we are addressing this systematically. here is what i am confident about. this will end up being the most progressive trade bill in history. people have the kinds of labor and environmental and human rights protections that were absent in previous agreements. it is going to be enforceable and open to markets not really open to u.s. businesses.

because good policy ends up being good politics, i'm confident we will get the votes in congress. congress will have a lot of time to review it, when and if it is actually completed. this notion is no secret. they will have 60 days before i even send it to look at the text and a number of months after that before they have to take a final vote. thank you very much, everybody. mark: president obama and prime minister shinzo abe talking with immediate -- the media and the bulk talked about the relations between the two countries choice and personal more than their opening statements. we will get that in a moment. let me get back to phil mattingly in new york, on what is most likely to get attention

in the states the situation in baltimore and the wider situation regarding police and violence. phil: a six-point answer that he put a lot of thought and planning to. he said four separate times, this is not new. this has been a slow rolling crisis and looking at the systemic issues that led to what he said appears to occur monthly and weekly at this point in time. i will tell you, mark, the most actionable thing is him calling other police unions, that it is time for them to stop immediately closing rags around one another but instead come to the table. that is a first for the administration could they been careful not to offend police unions are push them off. his willingness to step out on that is the most significant thing. mark: went further than he has ever gone on that. he talked about using the bully pulpit and not the larger

federal role that people would like him to take. we will talk about that on "with all due respect" at 5:00. peter cook, lots of talk about trade and defense. no daylight between these two leaders could what did you hear either of them say on those issues that would be fodder for news in asia and here in the united states? peter: i think the president's answer at the end about his level of confidence that this will be passed in the united states he says it is no fun trying to pass a trade bill in this town. that is a reality for this president. brady did express confidence that it would e in the hand prevail because he believes the administration can make the case to skeptical democrats and they will certainly have republicans on board. no daylight here. what you heard particularly at the end is that he is hoping that shinzo abe can sway a few

minds on capitol hill tomorrow when he speaks. he says it is in japan's interest but also in america's interest, it will raise american wages. that will be interesting to see shinzo abe before congress if he helps the president on that front. mark: he did a strong job selling that to americans, a lot of them are skeptical, including numbers of congress, but the fast-track authority. peter cook at the white house, my colleague phil mattingly here. we will see you back your 5:00 p.m. asian time. john heilemann and i will have " with all due respect." after break, "bloomberg west."

mark: live from bloomberg world that word is in new york and san francisco, welcome to "bloomberg west," for we focus on

innovation, technology, and the future of business. i am mark crumpton come in for emily chang. how long can apple's massive fight iphone growth continue? another blockbuster quarter for apple. 33% profit growth, 27% revenue growth. iphone sales in china surpassing those of the united states for the first time. can tim cook keep up the momentum? cory johnson is that the bloomberg businessweek design conference in san francisco, where he has special guests. cory: yeah, mark, when we talk about what design can mean for a business, everybody's thoughts start with apple. i have someone who knows apple quite well. let's talk about the quarter for apple. a lot of things to talk about here. what jumped out at you the most? >> there is a lot of things.

what stuck out to me is that apple is continuing to grow their base of users. that is the spaces that everyone should keep track of. cory: users across all products? >> across all products, but growing their iphone base of customers could not just selling them to existing customers but new users as well. that is pointed out very clearly in the android switching data points. our data came from q4. 26% of those who brought an iphone that quarter switch to an android device. it is an interesting dynamic that not many have predicted that apple is seeing some breathtaking shares from android. on a giant chair, but enough that that is adding to the user base. that number alone, we are watching the apple user race grow. it is good because we know that from a range of statistics, it is a very sticky ecosystem. once you come in, you don't

leave. they certainly see that from the iphone sales. what about you? what is the takeaway? >> they already cost one billion ios devices sold. let that sink in. there was a time when apple was happy with one million max quarter. always the, china is a big story. tim cook said two quarters ago that he has been studying china for 30 years. you're seeing that payoff in a huge way. they are growing the fastest in china -- cory: the design of the six plus in particular lead to one of the greatest business successes. we could what the business was doing a year ago, 4% year-over-year growth. it was one of the biggest in the history of mine hand -- mankind. and now it is larger because of this design choice.

horace: and it was somewhat predictable that they would go to a larger screen size, and china is a very good market for the product. this has been a long time in the making. this is what i will stick on here because we're looking at some spectacular growth but we are also seeing this happening after years and years of round work years and years of preparation. in many ways things haven't changed. cory: one million things we could talk about, but you are holding your ipad. . i said "is that the last ipad," and you said "yes, the latest one," and i said "no, is that the last one?" is the business withering away here? horace: as management stated they are being cannibalized by the iphone and at the top with the macs getting slimmer and faster and more portable. on the other night, what they

could still do is expand the product into a 12-inch category and take on more of the mac market. cory: thank you very much. interesting quarter from apple as always but an important one too. "bloomberg west" here at the "bloomberg businessweek" design conference. we will be right back after this. ♪

mark: this is "bloomberg west." i am mark crumpton. t-mobile added more than one million new monthly subscribers last quarter, outpacing verizon and tnt. joining me from san francisco, t-mobile ceo john ledger. welcome back to "bloomberg west ." good to see you. john: great to talk to you, mark.

mark: t-mobile is not generating meaningful net income. you have booked a net loss in six of the last eight quarters. what is your long-term plan and what changes do you need to make to reach sustained profitability? john: thanks, mark. we are right on track on what we have given as an outline for how this company becomes highly successful, which started with aggressive customer growth which leads to revenue growth ebidta ability, and cash flow. we added 1.8 million customers this quarter, the eight custom -- it quarter in a row over -- a quarter in a row over subscribers. we updated our guidance to have greater growth between 3 million and 3.5 million, and cap from our profitability guidance of ebidta to 6 million.

i think our investors have been very pleased with the company. good day all around. mark: do you have enough spectrum right now? what are your plans with regard to future spectrum auctions? john: right now we have more capacity per customer than any of our bigger rivals. the topic is one of the most important ones. scheduled so far in early 2016 broadcast options for 600 megahertz for a very important low-rent spectrum we need, but we plan to participate and get a nationwide swap of spectrum. but we are good right now. everybody in the industry, but because of the huge growth everybody needs more and that is what this is targeted at. mark: you have talked about consolidation in the past. how have you changed your view now that the comcast-time warner merger is off? john: what i have always said

about industries that consolidation is inevitable. it is not a matter of if, it is when and how. i will add to that sentence now -- and who. what people need to think about is that entertainment and social are moving to the internet, and the internet is mobile. amongst the players who will be looking to serve customers on a mobile basis, they include the cable players. google has just entered the wi-fi service business. i think you can think about these as potential coming togethers in some fashion over the next five years in the united states. mark: i only have about 20 seconds. i have to ask -- you said cable companies would make sense as an m&a possibility. how likely is that? john: who knows? we will have to wait and see. i just don't that they are an adjacent industry and play in services that could be complementry to what we are doing and if markets are best served they will find a way. mark: always a pleasure.

thank you for your time. john: thank you very much, mark. mark: still ahead, the man in charge of the look and feel of your android. later, a conversation with robert bruder, the iconic designer behind beats by dre.

mark: welcome back. this is "bloomberg west" whe we focus on innovation, technology, and the future of business. i am mark crumpton, in for emily chang. the cost to rebuild nepal after the devastating earthquake will be greater than $10 billion. that comes from the country's finance minister, who says that the government is still focused on rescue efforts. thousands may still be trapped more than three days after that quake. the death toll stands at 4300. greek prime minister alexis tsipras says that voters may ultimately decide whether to an approved an agreement with

greece's creditors that remains in limbo. here is the prime minister talking on star tv about his pledge to rollback austerity. pm tsipras: this mandate creates limitations for me. if i have an agreement that puts me outside the limits on either side, i will have no other resort. the people will decide, obviously without elections come i want to make that clear. mark: tsipras also lashed out at the european central bank and the eurogroup, accusing them of treating greece unfairly and breaking promises. consumeronfidence in the s. posted a surprise drop iapril, falling to the lowest level in months. that is according to th conferenceoard the homeowrship rate fell to the lowest level in two decades. the u.s. census bureau says 63.7% of americans own their homes in the first quarter. the national football league is ending its tax-exempt status meaning the central office will become a taxable entity.

commissioner roger goodell informed team owners of the decision today saying he was eliminating what he called a distraction. mission are good l says every dollar of income earned by the teams -- commissioner goodeys the change will know longer make a material difference in the business. amazon has set its sights on the $1 trillion american businesses spend every year on supplies with a new service called amazon business. amazon business will sell everything from tractor parts to paperclips that employees may need in factories, hospitals schools, and offices. this expanded version of the supply service comes as studies show businesses do as much as 60% of their spending online. -- 68% of the spending online. and we turn back to the bloomberg "business week" design conference where we are bringing together the top

designers in san francisco. "bloomberg west" editor at large cory johnson is that the event all day speaking to leaders in technology and design. the editor of bloomberg digital is also at the conference. cory: yes, he is. and we are joined by the head of design and google. i just want to start with white what you do -- with why what you do is so important more than any other designer in the world -- for example, design changes to google maps. that is why what you are doing at google really struck me because the interface change dramatically within the last year or so. what were you trying to do with that design to change the way that google maps, and enormously successful product -- what would you trying to do with that product when you changed it? >> at google we are always tried to make things more simple and more beautiful. that is the philosophy of how google approaches all of its products trying to make

something that is really wonderful for the user. even the original search page it is so simple, so fast, and there is kind of a beauty in this and the city. cory: but it is different now, right? the notion of a simple site design is not there at google in the past and it is there now and i wonder how you see the difference. matias: one of the things we have a feeling through all of their digital product is how important every detail of the experience is. that is no different from any other company. josh: to that point, you are so huge know and you have so many different regions and maps is a product that is core to the experience. even if you have an iphone, nobody uses apple maps. they use google maps. well, true, it is a better map product. the slightest change can throw off tens of millions from hundreds of millions of users. i don't know the number. how much are you worrying about

how the changes are going to affect the end-user? matias: of course we agonize over that. design at google includes more than just the google products. we design android, which is so many other products live on. the material design, which goes beyond google products to the web and ios products. we take those possibility of not just pushing a particular style or what our idea is -- we take a responsibility of not just pushing a particular style or what i our ideas. we want the design to be objectively as good as can be and that involves inspiration by the best designers and empowering them to do the best things, but also validation, testing, monitoring. cory: i'm sure everyone who cares about their work is striving to do the best they can and also hating the results because they care so much. matias: that is the curse of the designer. cory: well, it is the curse of

work. i wonder when you look at android, one of the reasons it is ubiquitous is because the system is so open and there are so many flavors of android. it is not a product you absolutely control pit what is the fullest android experience? matias: i think all of those different facets of android you can get. you can choose and android that is well-suited to you. perhaps you like be slightly bigger screen, perhaps you like the customizations. josh wants it to be waterproof. josh: that's right. i'm in the water all the time. you say that, but the reality is that you guys have gotten tighter about control of how the android looks and feels with your partners. if you look at the new galaxy s6 or lg phones they are closer to the core android experience than if you go back a couple of years, where there were doing their own thing. matias: think of design as if

you are designing a car. you want to have everybody be able to choose -- cory: cadillac is sitting behind us here. matias: some people want a cadillac and they wanted to be this is 40 cou -- this sporty coupe. other people want a station wagon or pickup truck on whatever it is. there is room for the functionality and the style of the carpet that there are parts of it that all need to work the same. they need to steering wheel in front of you, they need to make sure that the brake pedal is on one side and the gas on the other. if you don't conform to some common standards, it is going to be a mess. cory: you used the word "flexible" versus "atomic." can you describe what that means? matias: well come actually, i'm not sure when i would have said that. [laughter] cory: some designs need to be a complete thing in and of itself.

as opposed to something flexible, as with what you describe something -- sometimes it is a pickup, sometimes it is a go kart. matias: sure, well we do things like cars and the structure and the material design because we think these things are tools. they are like building blocks. we want the tools to be used at the right place and at the right time. cory: give me an example. matias: cars are great when you have different things to show you at the same time. they give you a sense of where one thing ends and the other thing begins. cory: you are looking at a sushi restaurant on the map and it shows you the phone number and the direction. matias: it is all of like an icon for the restaurant, except it contains more information than a single picture good. cory: that is atomic. matias: what is great about it, though, is that in its little modular nature, you can take it other places.

if you open up google now and glance at your watch and something has been suggested, we can present the same format, the same card. we can take the restaurant out of the contacts you saw before and transform it and make it into a different format and turn it into something new. it is not a new thing you have to learn. josh: i'm interested in that because the way you organize your apps on the android phone, they are basically inside of cards. is android moving towards a structure where it is all atomic and we don't think of things as apps anymore? the browser, for instance, opens up as a separate card in your multitasking browser. does that become everything is just a little atomic unit that deuce moving around between space and? matias: it reflects the attention we all have without digital world, where we go to specific brands and specific apps to get one beautiful little

piece of functionality, but we need to connect them and let them live next to each other so you are not just walked in there. you talk with your friends about where to go to dinner and look it up may be on yelp and you get directions with google maps and get a car there with uber. each of these things is isolated and you need to string them together in one strand. cory: matias duarte really interesting stuff. one of the most influential designers in the world whether you like it or not. matias: team effort. cory: "bloomberg west" continues. ♪

mark: this is "bloomberg west." i am mark crumpton. google's youtube is going to make movies featuring youtube stars. the films will be made in partnership with awesomeness tv,

a service that develops youtube stars. the first in the series will be in the fall and appear unusual first before being distributed elsewhere. europe is trying to make nice with that google is trying to make nice with european news publishers. -- google is trying to make nice with european news publishers. the eu has received 20 complaints from these groups who says google consistently ranked their websites below results from their own sites such as youtube and google news. smarton your smart watchful -- a new smart watchful sulfur $1400, more expensive than apple sport and midrange models. the battery lasts about 40 hours. -- 14 hours vs. apple's 18-hour

battery life. let's head back to san francisco, where the "bloomberg businessweek" design conference is underway. editor-at-large cory johnson is standing by. cory: robert brunner joins me now from a firm called ammunition. the notion of the importance of design in business, i wonder if you could talk about that come where the businesses are being led by design as opposed to putting design on top of what they are already doing good. robert: the old model was designed by what is happening in the process. today, design is always a topic of conversation, from the very beginning, to how it is made and delivered and how people experience and service it. all of that should be design and the great companies -- cory: are you suggesting that the conversation starts earlier?

if someone says i have a widget that solves this problem and it looks great, or is it more -- is it more function great? robert: everything. when people use something, they experience every thing about it. it starts earlier and continues all the way through. it is not just a moment in time. what technology companies realizes that technology is important but it is designed that establishment. it is designed that makes it work in people's lives. cory: i could do two years at the harvard business school, berkeley business school stanford, whatever, and not take a design class. robert: well, that is changing. you are seeing more and more design integrated into these schools and understanding why it is important. it is not just for our school. cory: let's use a real life

example from your career beats. i'm wondering where the design fit into the evolution of that. robert: the initial -- as we thought about -- the headphone is really a wearable technology. most headsets were prior to that sort of complicated and mechanical -- cory: the great ones. the crummy ones -- robert: air driven by function which is important. smartphones became the primary way people got their business -- music and where about. what you where and how it looks and how it feels becomes very important. cory: was the notion that the product would be so much better because the design would be integral to it and that is what was missing, the design slapped on top? it was like a different pattern slapped on top of something that existed, as opposed to something you thought about from the beginning?

robert: it is just thinking about it differently. anytime you're quitting something, you are designing. it is thinking about -- you are creating something, you are designing. it is thinking about where you want to end up. beats was very focused on digging a younger audience into -- bringing a younger audience into high-quality sound. making products that understood that and what it is about is very important. cory: so why this focus on developing businesses around design? why is that happening now? what are the drivers of making the design more central? robert: i think it has a lot to do with success. everybody points to companies like apple. cory: i would say companies don't just point to apple. they start there. robert: they say "how can we be like apple?" cory: where you once worked at

as a designer. robert: people see that demonstrable success with design and loyalty, experience, all of these things, that they traced back to the design of the product. success is like that cause businesses to look at how we designing to our advantage or are we just adding stuff out there and seeing what happens? cory: you are also working on some home design. one thing you have mentioned -- robert: it is a nightlight that listens for smoke and co2 alarms and tells you something goes off and you are not there and it tells your neighbors. it turns a simple thing into a more capable thing. a lot of that is going on right now. everybody is looking to connect things up in your home and the question is does everything need to be connected and how should behave and what should it be like? cory: again, do you think the

category gets bigger because it started with design and it is more natural? robert: the note that's the thing with everyday things is that they are deeply embedded in our consciousness and how you live. when you start adding more stuff into them, it is very important. you think of how they design and what people understand about them. a lot of things are not successful because companies try to shove too much functionality into it just because they can. and people don't know what it is anymore. do i really need a smart can opener? i don't think so. cory: pro-spork, anti-spork? robert: i just want a spoon and fork. cory: robert brunner thank you very much fit more of this went "bloomberg west" continues.

mark: coming up at the top of the hour on "bottom line," the chief executive of the san francisco giants joins us. continuing coverage from the "bloomberg businessweek" conference in san francisco. cory johnson joins us from there now. cory? cory: all right, mark crumpton, thank you very much. time for the b. west bite. here to tell us is brad stone of "bloomberg businessweek," here at the "bloomberg businessweek" design conference. brad: 26, that is the number at today's conference. we have the designer of the new googleplex. cory: the new headquarters. brad: a jewelry designer. and someone who just presented is the creator of shinola.

cory: company in detroit. brad: robot designers app designers. i'm interviewing ed williams of media media and twitter. cory: so interesting -- apple is a company that is mentioned, often the beginning and end of the conversation of what if we build a company where products -- beauty is the product? brad: it has spread to so many different areas of business from such as is any workplace environments, strategies, your org chart. it is the third year holding the conference and it is the way design has infected business. cory: foreign in the midwest, i can't help but think -- and born in the midwest i can't help but think -- i cannot behind us -- but think about how in detroit,

cars when we were kids were so cool, the muscle cars. that has come back to a lot of industries. brad: there is a sense i get when i talk to designers and architects that for many years that spirit was lost. sort of settled on commodity products, shipped overseas, not a lot of love -- cory: think of what the computers from compaq looked like. brad: everybody is trying to bring back authenticity into our lives. cory: we will be sharing with you throughout the day on bloomberg television. keep your tvs on by all means could we will have lots from the "bloomberg businessweek" design conference and "bloomberg west" will be back in his regular phone tomorrow. mark: thanks, cory. you can get the latest headlines all the time on your phone tablet, bloomberg.com, and bloomberg radio. see you tomorrow. ♪

mark: from bloomberg world headquarters in new york, i am mark crumpton and this is "bottom line" the intersection of business and economics with a mainstream perspective. to our viewers in the united states and those of you joining us from around the world welcome. let's get you to the top stories we are following on this tuesday. national guard troops are patrolling the streets of baltimore, maryland, after a day and night of violence. riots -- riots interrupted monday