emily: hewlett-packard just that with earnings, we will look at the numbers and how it could impact meg whitman's plan to flip the company. ♪ emily: and i'm emily chang, and this is "bloomberg west. " i will be joined by the ceo of solar city. plus, how twitter plans to make more money and five, not so easy steps, and what that tells us on what social media is heading to do. why a tech bubble may be a good thing for hollywood, i will give you a sneak peek of my

conversation for the creators of hbo's "silicon valley." all of that ahead on "bloomberg west yuriko." at the end of the year -- joining us now our editor a large, cory johnson is here with me in san francisco and an others from new york. give us the headlines. guest: everybody is focused on the split of the company later in the year and what we need to see from hp is in a competitive environment is topline growth. across the major segments across pcs services and

servers. it has been a mixed bag, right? we had lenovo last night, and we had hp today. the environment overall seems challenging. hp is executing the best they can focusing on cash flow and cost cuts. emily: would you agree? and how do numbers affect the spinoff and a possible acquisition target? >> i do agree. i think the are growing, but they are not growing in the right places. actually the numbers for notebooks were not that bad. when you get into the third platform, software and servers are not growing. license stock and revenue is shanking as well. enterprise services are still continuing to struggle and margins relatively flat over the year. that is not the kind of growth you will get.

there is a little bit of margin improvement for some spots, but they're not meeting that overall demand. how does that impact the split? i don't think it really does. it is interesting to see kathy lee jack going over the ceo of hp ink which will be interesting and the terms of how they put the company together. i don't think it will necessarily impact the company near term. emily: did someone acquire one of these units after the spinoff? >> i don't know if that is in the cards, you mentioned the analysts. servers were up, but the business units were down. if you go over business units everything will one was in decline. pc sales, revenues were down 5% even though the units sold were up. they were slashing prices on these things.

printing revenues, that is the strong suit of this company, down 7% year-over-year. the enterprise group is down 1%. in spite of the better server business, the enterprise is down. software is supposed to be the great hope it is why they spent billions of dollars to acquire other businesses, but software is down 8%. all of their major business and minor are shrinking, that is not good. emily: crawford, i want to talk about what is going on with china. hp just sold a big stake of its chinese servers. why did they do this? could others follow? >> the short answer is yes. this is a creative maneuver on the part of hp. basically it has been difficult

to be a western companies selling in china, when you have government vining agreements saying you have to buy chinese companies. they have sold stake in this new entity, what i find interesting is that is not just networking, they have sold servers, and parts of the networking business and -- 51% to this company. by our estimate this company will have 16.5% market share out of the gate. that should allow hp to be more attractive of a suitor to business to china. the question is, are the products different? are they different? will that make china comfortable? >> what happens if htc starts selling products outside of china? how does it differentiate itself

from the hp grand, which by the way is one of the great growing areas for lenovo we are talking about pcs being a poor business how is lenovo able to grow their #--? it was a meh quarter. emily: thank you all. in a couple of weeks i will be speaking with meg whitman the ceo of hp from the hp discover conference. that will be on my show, "studio 1.0." the hbo comedy "silicon valley." people have been spotted wearing t-shirts affecting the companies in the show.

tech execs have made cameos i recently sat down with creator mike judge, and the executive producer to talk about all of the details in the show. mike: we both had a desire to dig in and find out more about the real world, what these people really did. it just occurred to us, i don't know what these people are doing. i used to program a little bit but i was not building apps or platforms. the more we dug into it, the more great stuff we found. emily: we also talked about the shows quote haters" including elon musk. at the premiere, musk said he didn't believe mike judge had been to burning man. here is judge's response. mike: elon musk is at the top of the game.

he might see things a little differently. i am not going to ever say elon musk, that i know silicon valley better. emily: for the record, i did asked mike judge if he had ever been to burning man, he has not. for the full interview, catch studio 1.0 tonight on bloomberg television. coming up, a big step for space tourism. a bigger fight is brewing on the other side of capitol hill details next. we plan to put solar powered batteries in every u.s. home. ♪

emily: one-story we are watching, the house passing a bill meant to spur commercial space venture. a key part of the bill, bars a federal aviation administration from encouraging space exploration for 10 years. democratic -- democrats wanted it faster. a separate measure is headed to the senate floor, seen as far less favorable to the industry. speaking of space, i have to mention google and a new business partner. skrillex just designed futuristic covers for android

phones. if you buy one, you get a wallpaper of ever-changing photos taken from space. google launched 13 satellites just for this partnership. starting a resolution, that's what some have said elon musk is doing by breaking into the home battery business. the batteries hook up to solar panels, raising the possibility of american households turning off the grid. solar city is partnering with tesla to make them. solar city is the biggest supplier to u.s. homes. joining me now, the solar city ceo, lyndon arrive -- rive. the battery that you guys are offering is barely enough to

power a vacuum cleaner, why get one at all? lyndon: today when you combine solar systems with a battery you get back up. in most cases the backup is a generator, it uses a fossil fuel, it is noisy, dirty require space, in an emergency you may not have access to it. this backup makes no noise, it is against the wall, it looks good, and it can power two thirds of your house combined with the solar system. emily: only for a limited time? lyndon: as you train the battery, you use the battery but in the day, the solar system re-charges battery, it repeats. if you use a generator, you have to get fuel. emily: when will having a battery make financial sense for a large number of americans

without subsidy? lyndon: this is a backup service. how important is back up to you? if you want backup, and you want clean backup the requires no maintenance, that looks good get this backup. if you want backup that requires lots of maintenance, looks bad stinks, and uses a diesel generator those are the two choices. emily: you are saying by this now. lyndon: we expect to start in -- installing in october. larger volume will start occurring later. the forecast is within the next five years or so, we expect every solar system we deploy to have a battery tied to it. the batteries will go into phases, phase one is backup, phase two is grid services.

today, utilities spend a lot of money on part. s. instead of addressing peak demand, use your battery. you can provide local, peak capacity, combined with other power services. you can save the ratepayer money , at same time the homeowner makes money. emily: you guys are offering a new package in hawaii. how it will it work? lyndon: hawaii is unique in that the cost of energy is high. if it happens in hawaii, it is just a matter of time before it happens elsewhere. if you include the solar system, the storage, we will take care of everything. emily: no generator?

lyndon: no generator. we would sell it to the homeowner for the kilowatt hour price. emily: how much would i say? linden: 10 to -- 10%-15% of your current costs. to go off grid is not a good design. the best design is to have a solar system with a storage device still great -- still connected to the grid. you have that power generating asset that provides services to the utility, that is the best. emily: do you plan to do this in any other state? s? lyndon: eventually we will expand nationally. where do you go first? you have australia nigeria, many african countries the cost of energy is $.40 per kilowatt

hour. emily: last question, one day do you think a large number of people in this country will be able to live off the grid? lyndon: i think that is a bad design. if we end up there, that is bad policy. if we get to a point where everyone has solar combined with services to the grid, utility rates actually go down. emily: lyndon, thank you for breaking it down for us. in this week's addition of requiring the world, i bionic eye might sound like science fiction, but now is a reality. >> waiting to see waves. >> for allen many first. with wife at his side, it is his first time seeing the famous santa monica pier ferris will --

we'll. he has been blind. since february, he is seeing again with this wearable by a los angeles-based company. >> ica series of flashes of light -- i see various flashes of light. next this is how it works. a camera on a pair of lasses transmits images, wireless to a layer of tiny electrodes on the retina inside the eyeball. he cannot see fine features. it is still limited, but. he did see his wife this february. today another first he meets bob greenberg, the man behind this site. bob also checks allen's vision.

walking a white line on a black matte over a series of tries. what do people see? bob since me and the similar -- simulator. >> this is a half men triangle and circle. >> he keeps exploring. this week at disneyland. seeing mickey mouse, the enchanted castle, and this. >> there. >> technology, wiring our eyes to the world for a chance at second fight. >> wow. look at that. emily: next, what startup could be the biggest threat to mark zuckerberg? we talked to one of facebook's earliest employees, all of that and more after the break. ♪

emily: it is time now for the daily number. today's number is 210, that is the number of employees who quit his that those after a controversial management strategy. the idea involved eliminating management hierarchy so there are no losses. it was created by a former software executive who spelled out in a 30 page constitution for what he calls doing a job, energizing a role. he offered three months severance to employees who did not want to take part of the culture. 14% of the company did not want in. a big move this week in social media, google and twitter are collaborating again red tweets now appear in google search

results. what is this partnership mean? joining me here, a former employee of linkedin, facebook, and twitter, now a partner at greylock, josh. how big do you think this is? josh: real-time conversations are only available on twitter.com. google has billions of searches every day. people will start to see this relevant topical discussion. i hope that will drive new exposure to twitter. people understand when they set up their twitter accounts, they will get the value from twitter but also google. you will start thinking about twitter a lot more. emily: will it have an impact on revenue?

josh: i think the first step is to get people turning to twitter. i think that will impact revenue. emily: there was a story about the five things twitter needs to do to make money. unlike facebook, which focus on ad technology, twitter rochus on partnerships. without the right call? josh: there has always been 2 big efforts at twitter. the first is trying to get more people using the platform. using it to tune into what is happening. the second thing is to take all of those people on twitter and start making money by presenting ads. the thing with twitter is you go there to find out what is happening. you can see an even better add on twitter then facebook. emily: the reason we are talking

about this, last corner was not so great. what does that say about the product given your knowledge? josh: they are making changes to the advertising business to set it up for long-term. i think fundamentally twitter needs to keep growing. i think we need to figure out how to get more and more people in the world using it. i am addicted to it. we have not figured out how to simplify the product down to where the majority of people in the world who still tried it don't get it, can come back and had a great experience. emily: i am addicted. how can i get my mom on this thing, she still does not quite get it. meerkat, the company you invest in twitter bot periscope, can you survive on periscope? josh: it is tremendous.

the fact that we have a billion people with smartphones can immediately turn into live video cameras, it will be unstoppable. periscope alliance with twitter for breaking news, the muddy celebrity content -- some of the celebrity content. there are so many other people in the world who do not use twitter, who still have needs to communicate and share by life video. i think meerkat has targeted at them. emily: someone said that a company might be developed soon that could kill facebook, what should zuckerberg be afraid of? josh: if you talk to teenagers they love the fact that content can go away, and be in the moment. i think we will see next generation of that is kids that grew up with minecraft start to

show us a whole different world beyond what facebook can do. emily: josh, thank you so much for joining us. watch out for that facebook killer. ♪

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