emily: live from pier three in san francisco, welcome to "bloomberg west." here is a check of top headlines. exit polls in the u.k. show a hung parliament with conservatives just short of a majority. the party of prime minister david cameron is forecast to win the most seats. labour is projected to win 239 seats. the senate has passed legislation to let congress review a u.s. nuclear deal with

iran. the vote was 98-1 and now moves to the house. here is bob corker. senator: it's the first time in eight years that i can remember congress asserting itself and taking powerback that had already been granted to the president. emily: the measure would bar president obama from lifting sanctions on iran while lawmakers work out a deal. a person familiar with google says an official announcement will come later this month that will put android closer in line with apple's operating system. uber is reportedly bidding for no kia -- nopeokiia's map

business. nokia has reportedly also received bids from a consortium of german automakers. the 91-year-old sumner redstone says members of his board will decide who succeeds him as chairman. revenue dropped a quarter of a percent while profits fell 16%. now to our lead. as one startup files for an ipo, and another is ready to get off the market. shares of yelp soared after the news broke that the site is looking for a buyer. yelp hired goldman sachs to find possible suitors.

meanwhile, the maker of wearable trackers, get fit, plans to list on the new york stock exchange and would be the first wearable device maker to go public. joining me now to talk about fitbit is cory johnson. cory: i cannot believe how big of a business it has become. we were just showing video that showed someone with a fitbit. this has grown into a big, profitable business. just look at the revenues from this business. as you mentioned, 740 $5 million in 2014 -- $745 million in 2014 and growing at about 172% year-over-year.

the number of devices they sold 10.9 million in 2014 alone. a huge jump from the 4.5 million they sold in the previous year. the number of devices is huge. revenue is huge. profits are fantastic. they are doing 48% gross margins. the profit margin is 28%. it's a very profitable business suddenly for these guys -- a very profitable business suddenly for these guys. this is a big, profitable fast-growing technology business. they are reportedly trying to raise $100 million. with all the big revenue numbers last year, that was the same year they had the recall of the fitbit force. one might imagine revenues would have been even better if they had not had problems with that one device. emily: i have a fitbit in a

drawer. i think i used it for a few days. same with my job own -- j awbone. are people actually using these or are they buying them and putting them in a drawer like me? you are a different use case. you use like three devices at once. cory: your lack of commitment aside, my experience is that a lot of these devices and up in the washer -- end up in the washing machine, not always clipped to your wrist or wherever people where these things. they also report that they have 62% market share and even if their business grows and new contenders come into the market, their market share has actually grown in consecutive years.

a lot of impressive numbers coming out of this business. i have a lot more to read. the filing is over 600 pages, but it's impressive so far. emily: what do you think about the timing? as apple's smart watch hits the market are they trying to get ahead? cory: i am sure they are going to say that the apple watch is just drying attention to the kata -- drawing attention to the category and it will be good for them. the market caps on are a much bigger deal than the competitive dynamics. when the ducks are quacking feed them. wall street wants ipos in technology. they want growth. emily: cory johnson, editor at large, thanks so much. continue wearing your fitbit. cory is staying with us to talk about yelp.

we learned that yelp may be up for sale. who might buy it? let's bring in spencer, who joins us the a skype from seattle. spencer, nobody is commenting. yelp is not commenting. potential buyers are not commenting. what is going on? spencer: nobody is commenting is right, so everyone is speculating. yelp managed to cobble together a large group of local advertisers. that's the kind of thing that is difficult to do from scratch. that could play into any number of companies, including facebook or search engines like google and yahoo!, or even some travel sites like priceline.com. emily: cory, what do you make of this? earlier, when the news broke we talked about google being obvious, yahoo!

there are some less obvious companies being suggested like amazon or priceline. cory: they have created a unique asset in this inventory of all of these places, places were local advertising is working. they have created a lot of enemies in the process local enemies who don't like the way it works and feels like it is a racket. but they have grown a nice business, a profitable business. it is not growing at the pace it had been growing. google is very large in this industry and yelp has talked about google putting their own search results above the yelp search results. the suggestion is they are not putting the best and most useful results out, just the ones that are most useful to google. the role of google in the marketplace is going to be part

of the conversation goldman sachs is having as they shop this business just three years after the ipo. emily: spencer, where do you see this going? spencer: one of the things we already mentioned -- another company i even heard was alibaba. the hook there would be an opportunity for an overseas company to gain a u.s. foothold. emily: we do know that alibaba is looking to get more of its revenue from abroad. i will be speaking about that with the alibaba ceo, coming up next. thank you both. coming up, as i said, alibaba shares surged today after the company announced that daniel john would take over as ceo. i set down with him and asked him about the management shakeup and what he would do differently, next. ♪

emily: alibaba made a surprise announcement today of a new ceo. jonathan lu will remain vice-chairman. daniel zhang is the new ceo. shares rose today. shortly after the announcement, i spoke with the incoming ceo, a former accountant who went from cfo to coo, now ceo. i asked him if the alibaba management team would start to stabilize now. daniel: well, we have changed a couple of leadership roles. as you know alibaba has been around for 102 years.

this is a long journey. we need young participants to leave the company to the next part of the journey. emily: how will you bring more young talent into the leadership and management roles? daniel: if you look at our key business leaders, they are in their 70's. we are trying to bring more 19 80's-19 90's generation to the middle level. we believe this will be the foundation for our future growth. emily: you want 50% of revenue to come from outside china. currently that number is about 9%. what is your target this year? daniel: globalization is one of our core strategies. we sell to chinese consumers.

on the other hand, through alibaba's retail platform, we sell chinese supplies to customers all over the world. at the end of the day, we want a global network a global platform, to sell to merchants -- to serve merchants and consumers around the world. emily: with 9% coming from international now, what do you want that number to be? daniel: now is just a starting point. emily: what kind of countries can we expect to see alibaba popping up in? where are we going to see a greater presence from alibaba abroad, more specifically? daniel: we sell a lot of products to developing countries like brazil russia and in

those countries, the consumer products are very expensive. we are bringing our platform to those countries but we will cover a lot more countries in the future. we will participate in the growth of countries. we will try to help the young generations and the young entrepreneurs in local countries to do their own business. emily: how do you plan to do that? daniel: we have a very clear strategy of globalization. today, we start with the cross-border, sa said. we will go further to build a global network as i said, today is just beginning as a long journey toward globalization. emily: we heard about the hiring

freeze, capping employees at 30,000. how likely would layoffs be if layoffs are a potential next step? daniel: we will adopt a zero net policy this year for our headcount. but we will definitely continue to hire and to replace underperforming employees. the purpose of the zero hiring count is to improve efficiency. we did the same thing three years ago. in five years we have a dream that we will have one trillion u.s. dollars gdp. jack set a target to us that as of that date the headcount

should be 50,000 people. so today in good times, we adopt the policy to encourage efficiency. we are prepared for future growth. emily: the chinese government has made some pretty harsh accusations against alibaba about knockoffs. about bribes. what is your relationship with the chinese government right now? daniel: like all global companies, alibaba has a very smooth and transparent relationship with the chinese government. we share our plans of business development and we also address their concerns. we do everything we can to make sure all of the businesses on our platform are in compliance with the laws and regulations. emily: i mentioned since its peak, alibaba has lost $90 billion in market value. i wonder, from your perspective, how has life changed since the

ipo? daniel: we do what we have been doing for the last 15 years. we manage our business by creating value for our long-term customers. we do not want to manage the business by revenue growth and long-term margins. we believe if we can create value to the ecosystem, we can enjoy rapid growth and will be recognized by the market. emily: daniel zhang, the incoming alibaba ceo effective may 10. we will be right back. ♪

emily: tonight is the season to

her two premiere of twitter 2.0. we talk about how his improv comedy trading -- training prepared him for wall street. here is a sneak peak. i wonder if improv comedy is good training for dealing with wall street. >> when you are improvising people are constantly yelling at the stage. i did this show and about three minutes in, these delightful, drunk australians started yelling "you suck get off." emily: and in one of the most highly scrutinized jobs in the world, people sometimes say -- >> you suck, get off.

emily: how do you end your team -- you and your team deal with that? >> i got invited to something and my daughter said you should totally go to that. i said i don't think i am going to go because i got invited because of what im, not who i am. i never pay attention to the ceo of the year stuff. i don't get too worked up about those things. i had to make myself care about them only because i realized it could affect recruiting if people started thinking well i want to go to twitter, but what if he is not there tomorrow and everything changes. i have to change how i think about that. emily: the drama of twitter's

early days is well documented. we don't need to go into that. but in 2010, you became ceo. you were told you were fired. what actually happened? >> i am not going to go into the hole details of the story. i will say that a lot of stuff has been written about it. you read it and you think that's interesting. i don't remember that person even being in the same city at the time. jack and as and i work really well together. they are still on board. they run successful companies in their own right. the beauty of this for both of

them is that it's hard for anyone in the world to look at them and say they got lucky. emily: how often do you talk to them? >> pretty regularly. jack and i have dinner every week. at suny cafe. emily: good chicken. >> yes, i am basically walking around doing ads for the cafe. emily: do you feel you have a nice report? >> the short answer is yes. jack really thinks about the products from a very -- he will have product insights from a very different angle. and then ev always has this very firm grounding in the user, the user user and that is what has

gotten him to where he is today. emily: twitter ceo dick costolo. don't miss the premiere of "studio 1.0" tonight. ♪

emily: let's get a check of your top headlines. revenue and earnings are up at alcatel. sales rose 9%, beating estimates. three weeks ago, nokia announced it would be buying alcatel in a $17.5 billion deal. attorney general loretta lynch is still weighing whether to open a civil rights investigation into the practices of the baltimore police

department. she testified today. loretta lynch: we are currently in the process of considering requests from community officials and city leaders to look into whether or the baltimore police department practiced civil rights violations. i intend to have a decision in the coming days. emily: the mayor requested the investigation after riots broke out following the death of a black man while in custody. according to reality track flippers in baltimore -- realty trac, flippers in baltimore's are the largest gains in the nation. new yorkers apparently don't want to see their team lose. who once to see their team lose? ticket prices are down for the must win new york rangers game

at madison square garden friday. the average retail price is $414 , a 5% drop since game four. the washington capitals lead the series 3-1. he pioneered apple's iconic retail strategy led jcpenney, and now he is bringing the tech experience to your home. ron johnson has created a personal platform that allows customers to shop for products, have them delivered, and do it for a low cost. run -- ron joins me in the studio. are you bringing the genius bar to the home? ron: within enjoy, it's a great new way to use the product.

take a product, a time that you like, and we will get you up and running for the same price that you would pay for at the store. emily: something that i could really use. this is just for electronics right? tell us about some of your partners. >> we have a lot of partners. in two weeks, you will be able to buy your next smartphone, whether it is an iphone, windows phone, from at&t, go to the website, pick enjoy, and able hand-deliver your phone. -- and schedule a time and they will hand-deliver your smartphone. we also have products like to go pro cameras, hp, lenovo computers, even skateboards. a variety of things that will improve your life. emily: sprint will bring you a phone on demand, you say you can do it within one hour. on average, how long will it take to get a product? >> you can go on the at&t website, and within four hours that you order, we will hand-deliver it to you.

it is anywhere you want. emily: i can think of a few things i would like. a big tv, for example. you obviously have such a deep knowledge of the retail industry. i wonder how you came up with this idea, why you see this as an opportunity? >> i have been in retail for a lot of years and i love to rethink how we experience products. the world is going mobile. young people what to work mobile. everything is moving to the home, so somebody has to take on the complexity. this helped to put it all together. we think it is time for someone to come to your home to navigate this new world we are entering. emily: how big of a threat is amazon to retail in general? it seems like they are eating

everyone's lunch and trying to do everything, including same-day delivery. >> amazon is a great company they are in their 20th year, and they are really the inventor of e-commerce as we know it, but their hallmark is convenience. they are a great place to buy, but that is their strength. emily: what is their weakness? >> when you really need help. for a lot of products, you want personal service. that is what stores do well. we are trying to pair your digital purpose -- purchase with service in a way that has never been done before. we have been doing visits for six months now. we are learning that when you change the location, you change the game. emily: you revolutionize the apple experience, jcpenney was another story. why will this be more like the former than the latter for you? >> i have had a chance to learn from everything i've done. i have been in retail or over 30 years. overall, my batting average is pretty good. the most important thing that will make this successful is people are really clamoring for

personal support. in technology, you want a human connection. we are bringing that to people everywhere and it will be wonderful. emily: what do you think about the apple watch? >> it is a great first generation product. people are just getting their hands on it. they are learning how to use it but i think we will all look back and it will be the first wearable we all get. emily: have you tried it? >> yes, i have one but not today. emily: what do you think about their sales approach? ron: they are showing people how to use it in stores, but what happens with apple, there is such demand for their products, it is really hard to get, and they want to make it fair for customers to get it. if everyone can go online, it is a first-come, first approach -- served approach.

emily: are you a fan of what they have done so far? >> i am huge fan of angela's. she has been doing a great job. emily: speaking from your experience, what have you learned that you will be doing differently at enjoy? >> the most important thing is it takes a long time to build a business. it seems like they happen overnight but it takes time. i keep telling my team, we are going to build one customer at a time, learn from each one, get better and better. there is really no race here. it is about building a great company that will last. we have worked hard on our foundation. you can see our brand come to life on our website. we have hand-picked every one of our experts. that is what you need. emily: you have 127, i believe and you are launching today. how will you make money? >> today, most products are

priced to go through a store. stores invested a lot of things that do not help the customer. buildings, rent. we invest in our experts. if you invest in the person, you can deliver a person that a lot lower cost than maintaining a store. between the margin of the retailer gets and our services where we learn our profit. emily: i think i will have something delivered tonight. ron johnson, ceo of enjoy, formally of apple and jcpenney. -- formerly of apple fame and jcpenney. thank you so much. we will keep our eyes on you. coming up next, 3-d printing your dessert. we're taking a look at hershey's high-tech kiss. and google hits a big roadblock in the city council. ?

emily: let's get a check on your top headlines. nintendo is counting on a new version of its handheld game player to boost profits. that was the message in their earnings forecasts which beast estimates. they are also releasing new games for the wii u and will also be working on a new council -- console. t-mobile and blackberry begin selling products again after a fallout. t-mobile ceo john letter says that after listening to customer feedback, ceo john ledger said that their product will be back on the shelves starting wednesday. they pulled their devices after the carrier ran ads encouraging customers to trade in their blackberries for iphones. we eat food that is big, -- baked roasted, and steamed. soon, we may be eating food that is printed in three dimensions. in this week's edition of wiring the world series, we go to hershey, pennsylvania to see how two traditional institutions are

going high-tech to change the future of food. we report, starting with a kiss. >> not far from chocolate and cocoa avenues in pennsylvania, american chocolatier hershey experiment down these holes with -- experiments down these halls with a well-known confection. you know what this is, this is a hershey kiss. it was first produced in 1907, but more than 100 years later we are getting a high-tech taste on this traditional piece of chocolate, and the magic is happening right here. one hour, 26 minutes, the time to 3-d print one hershey kiss. >> the chocolate is being set up into these cabinets and then is pushed through that small nozzle. >> computer designed and then extruded like icing out of the bag, layer on they are. -- layer. industrial firms has used such -- have used such methods with

metals and plastics since the first commercial printer in 1989. only recently has food been tried. >> i don't think i ever foresaw that we would someday 3-d print chocolate. >> he has had a quarter-century of a career in cocoa. 3-d printing could disrupt the chocolate-making industry for the better, from mass production to mass personalization. >> you could have micro manufacturing facilities that would create every chocolate bar, candy bar in your range all in the same place. >> and it is no secret, the cia is testing 3-d food printing too. not the spy agency, but the culinary institute of america. they are printing geometric sugar designs and more that could one day be put on your

plate. >> the printer does not think in three dimensions but in cross-sectional, two-dimensional layers. >> they print inside a tray of sugar. the end result is a red dyed vase that you can eat. >> we have also made some other designs. >> i am tasked to take them out. it's like escalating for dinosaur bones except these are made of sugar and you can eat them. extract the sugar with a tiny airgun, gently. and then, the taste. it was like a solid cinnamon dolce latte melting in my mouth. but these sweet little blocks are just the start. thomas is the dean of the cia. >> we can move into the world of savory. thinking through that, there is the possibility of us dehydrating vegetables parsnips, beets, strawberries, tomatoes. >> savories are on the menu

elsewhere, like in spain, which prints burgers and cheese and pizza and tomato sauce. its first u.s. office is planned for this year. the ciaa new 3-d food kitchen and space for chefs in los angeles this year and hershey's will have 3-d printer chocolate that you can buy by years end. imagination is the limit. for hershey, it is starting with a kiss. emily: remy, do you think 2015 is the year 3-d food printing is going to take off? i am having a little bit of trouble with it. >> good question. if it is not the year where 3-d printing will take off, at least it is an inflection point. we are seeing that with the uptake of hershey and the culinary institute of america.

in any industry, when you have big players adopt any kind of new technology, it opens up the door to potential other people saying this is interesting, i will go ahead and try it out. when you see those hershey's kisses, i definitely want to try it. what do you think? emily: i do have a sweet tooth. i will try to mentally prepare myself for this. you took me one step further though. thank you. up next google plans to build a mega-con best -- mega campus is blocked in favor of somebody else.

emily: google's plan to build a new futuristic campus and its hometown of mountain view, california as suffered a big setback. the mountain view city council instead awarded linkedin 1.4 million of the 2.2 million square feet available for its own campus. google got just over 500,000 square feet. is it game over for the googleplex? im joined by brad stone who

wrote about it for bloomberg businessweek. why is the city council favoring linkedin over google? >> nothing specifically but the city of mountain view and other cities in silicon valley look for economic diversity. they don't want to put all of their eggs in the baskets of one -- company, they are also interested in reducing traffic congestion. as everyone knows, silicon valley is a mess right now. mountain valley has created this artificial limit on the amount of space that can be developed. it is not like google's land was awarded to linkedin. it just means they have to pursue other avenues to develop these incredible pictures that you are seeing. emily: let's talk about the googleplex as it is planned. it is pretty special. what is so special about it? >> all of these silicon valley companies are trying to rethink their relationship with their surroundings. google is going with a couple of incredible european architects very much directed by larry page

, the ceo. emily: and there is just one floor. >> they have these huge canopies were they can control the climate. they reduce glare, you can work in the open, it is open to nature. lots of new ideas in this proposal. all somewhat unproven technology but the idea is to create a flexible space that can be tailored to suit the company's changing needs. emily: do they have some options or is this done? >> they did get some properties, so they can begin building. and it also got some other land. they want to go near the current googleplex. i just think this process will play out and they will find a way. emily: so the googleplex will happen? >> i think so. emily: thank you so much. it is time for the bwest byte.

we focus on one number that tolls just tells a whole lot. -- we focus on one number that tells a whole lot. corey is in new york. what do you have for us today? it looks like we lost him. it is 22.2%, and has something to do with tesla. what do you think that number is? >> i have no idea. it could stand for a lot of things. emily: the extent of elon musk's coolness factor? >> i think that would be a higher number. emily: the real story is what is going on with their suvs. cory, apparently we have you back. what is that number? cory: i don't know if i should tell you now. are you waiting at the edge of your seat? 22 .2% is the gross margin for selling cars in the last quarter. that is worse than a year ago. we have seen a consistent trend of gross margins getting worse

the more cars they make. you would think the gross margins would get better, but once you strip out the tax credits they get paid for making the cars, the gross margins reveal themselves to be a little worse. i put together a chart that shows the basis point chains. 136 basis points. this company number and so much -- this company that loses so much money and burns so much cash, the more they operate their factory, the worse the earnings get and the worse the gross margins go down. that is fairly uncommon in the world of manufacturing. disconcerting for this company trying to get to a point where they, god for bid, make money. emily: on the call yesterday, elon musk was very excited to talk about the new cv but not the batteries. why is that? cory: i don't know, he has so much going on in his world. they do not make batteries right

now. it is something in the future that may work, may not. some issues with the batteries like they do not work with solar panels and that they are only for certain kinds of charges. if you go to the website, you relies the basic battery they -- realize that the basic battery they are selling for the home can only run two loads of laundry and a lightbulb. maybe not the most efficacious way to power a house. there are a lot of companies doing this. over 40 companies competing in this battery space. cars is what they do now. focusing on what they do yielding some interesting discoveries. emily: i knew his coolness factor was higher than 22%. cory johnson, thank you for joining us. thank you all for watching this edition of "bloomberg west." see you later. ?

>> from our studios in new york city, this is "charlie rose." charlie: written is going to the polls on thursday. the liberal democratic government led by david cameron faces an uncertain future. the anti-immigrant u.k. independence party is also expected to gain a significant share of national votes. john micklethwait is the bloomberg editor in chief. he edited the economist for nine years before.