movie geeks. sports freaks. x1 from xfinity will change the way you experience tv. emily: both plunges, cheating on admission standards. what does it mean for the future of smarter cars? what does it mean for apple? what does it mean for tesla? ♪ i am emily chang. this is "bloomberg west." the new iphone goes on sale. the verdict. plus, speaking of new software. microsoft office gets its first upgrade in three years. how the company is hoping to change the way you work.

xi jinping lands in seattle to meet with the temp cook and other top business leaders. we are live. all of that is ahead. first to our lead. volkswagen at the center of an omission-rigging scandal. germany, france, south korea, italy, all vowing to join the united states in scrutinizing both wagons diesel cars. the result could be billions of dollars -- at the heart is mel program to software. -program software. how is the role of tech i the auto industry changing? david kirkpatrick is with us from new york. bob o'donnell is here in the studio. this volkswagen story is just mind blowing.

what is your take away from this? is this a cautionary tale about more and more technology in our cars? aboutis a cautionary tale corporate malfeasance. it is a scandal of the greatest proportions. the consequences will be far greater than a few billion dollars in fines. it would not surprise me if the company goes under. i'm not kidding. this is horrifically inappropriate behavior. ,n terms of the software piece it is fascinating that we have moved into a world called the internet of things, where software is in everything, and now we have an example of the world's largest automaker using their software to deliberately break the law. that is a terrible president as we are moving into a new world of software-to find everything. i find it terrifying. software-defined everything.

bob, what you think the implications are? >> the notion that they are using software to intentionally get around the rules and break the law. emily: it was an intentional -- >> yeah, and this is fundamentally the concern. we are moving into this world where there is so much connectedness coming, and when you have problems with one system and problems with another system, then you try to marry those two together -- i think we will see a lot of this over eagerness start to pull back. connected cars, smart cars, exciting and interesting, but there are some big challenges, especially if apple was to do something by 2019. emily: apple is making advances in its own car development.

should we be worried? not just apple, but other carmakers in the future? >> we all have to make a decision about who we trust. the trust towards volkswagen has been horrifically broken. if you talk to anyone who owns one of the cars involved, everyone i've talked to -- and i have talked to quite a few -- they want to have both wagon by their car back. they don't want to have it repaired. it forve been driving years thinking they are environmentally responsible. you have been contribute 40% more pollution than you thought. that is awful. anything tok it has say about apple or any other automaker. apple has german this trust from its users. sometimes, thent degree to which people are

obsessed with that company. --they were to build a car they would hold them to a higher standard, but apple has been able to live up to that higher standard, and i think they would with a car as well. do you make about this report that apple is tripling the number of people who are working on this car project? why don't they by tesla? tothey want to provide a way provide apple innovation. look at the car industry. there are a lot of players and a lot of opportunity. apple believes they can bring a unique set of values to this. my question is, yes, there's a lot of tech, but there's a lot of mechanics in cars, and apple has no history of doing the mechanical piece, the engine, drive train, all those other elements. to me, that is the fundamental question. apple has a tremendous brand and to achieveork hard

the kind of trust with the car that they want, but they see this as part of that ever-involving -- evolving world of devices. really, it's hard not to be excited about this. >> it's hard not to be excited. i think apple has fundamental advantages. if you look at the reviews of the iphone success. -- one of the problems that people complain about is that they have is to sucked into the echo system and we can't get out. maybe apple can integrate the because they control so much of our technology. that is something that tesla does not have access to. if apple did build a car, it would be as tied into all of our other apple devices as the

iphone, and that would be a fundamental advantage. emily: speaking of iphone, we will give you our review of the iphone 6. thank you so much. great to have you. staying with apple, the official reviews are out today. while it does not look much different, a lot has changed on the inside. bloombergs sam grobart gives us his take. bloomberg's sam grove art gives us his take. >> should you buy one? yeah, probably. i still think the iphone is the best smartphone you can buy. android phones have made tremendous improvements, and apple has had missteps, but the way apple can develop the hardware and software together makes for the best user experience.

these new models are typical of the two-your product cycle. a lot has changed inside. two-year product cycle. basically, if you press harder than normal, you can pull up shortcuts for different mobile apps, like right click on your mouse. first, 3-d touch does take getting used to. push the wrong way, and you get all your mobile apps to move around the screen. , things are limited about what you can do with 3-d touch. i can preview a mail message or jump to a new note, but other uses are more questionable. who exactly needs a shortcut to call up a rival browsing page? -- a private browsing page. ? we may see more clever applications in the future. the other big change has to do

with the camera. the rear-facing camera is 12 pixels. has a function called "live photo." they do take up more room on your phone. modelast that 16 gigabyte and get one with more storage. -- the 16-gigabyte model and get one with more storage. the flash matches the ambient color of the room,'s you don't look like a zombie. what makes them the best smartphones are the fundamentals. a-nine processor is fast, as is the touch id. improvementsft of banks to ios nine, activate

battery-saving car mode, maps, and find things faster thanks to improved search and syria. iri. it is the behind-scenes upgrades that matter. of fadew iphones sort away and let you focus on what you are doing. newbest thing about the iphones aren't all the new things that grab your attention, it is all the stuff in the background that you never notice. coming up, microsoft just released a new version of office , the first update in three years. we will show you the latest features. plus, the winner of google's , nasa enthusiasts, and budding inventor. that is next. ♪

emily: to a story we are watching, groupon announced it will cut 1100 jobs in a massive restructuring. the company will be shutting down operations in seven countries worldwide. groupon was once the leader in the market, but has since struggled to boost sales. the ceo says they need to focus energy and dollars on fewer countries. you may remember my failed

attempt to get an interview with the ceo after the company went public. concerns were already mounting around their business model. simpson, the stock has fallen 79%. ince then, the stock is fallen 79%. microsoft office, more than 1.2 billion people use office, and it is microsoft possibly a's bit product. how important is this upgrade? how does it fit into the vision for microsoft's future. joining me is microsoft's executive vice president. so great to have you here. what exactly is new? >> we focus on collaboration and

teamwork. we have made it easier for people to work inside a document ,ogether, one-click sharing within word, excel, powerpoint. fore also made it easier people to work together, have shared conversations, shared challenges, outside of documen a document. google docs has been around for a wild. the user interface in microsoft office has not changed much. i wonder how much you balance catering to your loyal users and getting new people on board. >> it is a great point. for us, the familiarity of office is a great strength, and to bring new ways of collaborating into the office

inside of outlook and excel -- they don't have to learn a different way of working. that perspective, and can become familiar right away, and yet, they are working in new-interesting ways. new, interesting ways. 150 million people have forloaded the applications ios and android, giving us new customers to introduce to office. emily: there are 20 different office products. there are a lot of products out there. office 365, cloud-based subscription, the mobile app. what should i buy? >> we think office 365 is what most people will buy. emily: it's what you want people to buy? >> absolutely. it gives you the applications for your entire family and across all devices.

if you have office 365, you can put it on all your devices, and we introduce new features every month, so no longer will it be three years before you get something new. subscription,e you get those features automatically. you don't have to install it. you don't have to manage it. we think the subscription is what they want. emily: there is a big skype integration as well. there was a big skype outage recently. how do you prevent network issues? >> we have to have the world's most sophisticated data center operations. all of these tech countries will have an outage from time to time, but you have to do everything you can to communicate to your customers when you have a problem, and fix it as soon as possible. skype happened to be up and running after a small number of hours, so getting better and better. iowa hasve been buying

an android mobile apps, or we going to be seeing more of this and android apps, are we going to be seeing more of this? >> we think that is the fastest route to market, but if there is one that we think will complement office, then we will continue with those acquisitions. what ever is the fastest to market. emily: thank you for joining us. posted its fifth annual science fair yesterday, and bloomberg was there to speak to the winner. , a 17-year-old from connecticut designed a diagnostic test to detect ebola. we asked her why she picked this project? . devastating how

ebola destroys the fabric of the area. emily: the biggest star of the night was surprise guest ahmed 14-year-old freshman who made headlines when his homemade clock got him suspended from school. he also got to meet with sergei brin. picture on his twitter account. up, president xi jinping is in seattle with top tech leaders. why are they eager to speak with him? we will have that after the break. will help to measure the gender pay gap in the united states. our findings are next. ♪

daily it is time for the byte, one number that tells a whole lot. today's number is eight. a woman must work eight more hours for a man to afford an iphone 6. this is the iphone gender pay gap index. 's andpares men women's earnings. greatest amongis restaurant and coffee shop host. 40% longer to afford the same iphone. that is not ok. while troubling, bloomberg did

find professions where men are disadvantaged or pay. female nuclear technicians can apparently afford the iphone 6 faster and their male counterparts. interesting. now to china and seattle. the chinese president xi jinping is in seattle as part of his first state visit to the united states. it provides an opportunity for china to meet with tech executives, like tim cook. tensions remain high over alleged cyber attacks, so what will the trip to seattle accomplish? we are on the ground there. paint the picture for us. what is the atmosphere like? who is there so far? >> good to speak with you. president xi jinping check in earlier today. he is out and about meeting with

governors and local executives. givell come back today and a policy speech here, and potentially his only policy speech of this week. atmosphere, there were a few hundred supporters as well, as well as a few critics, of president xi jinping, a lot of people waving china and u.s. flags. an air of skepticism and anticipation to see what is going to happen here in the tech industry, as well as when president xi jinping meets with president obama in washington, d.c. emily: the president gave a rare interview to the wall street journal on the issue of cyberattacks and said that the chinese government does not engage in theft of commercial or supportany form chinese companies to engage in such practices in any way. what reaction are you getting

from people on the ground to that statement? everyone sort of agrees that they do hack. >> you basically said it. anyone who heard that quote would raise an eyebrow and say, really. ? least three major hacks have happened over the past year by -backed hackers. this summerent was with the office of 20 million former federal workers that included united airlines and health care and them, so a lot of people are concerned that this is happening, and josh earnest did come out this morning and this -- and had this to say. >> our principal concerns surround government-sponsored enabled theft of confidential

business information, and proprietary technology from u.s. companies for financial gain. something that we have long been concerned about. in fact, it predates the administration of president xi jinping. >> regardless of what is happening with cyber as being knowledge, companies here in the united states still want greater access over in china, and the chinesetrue for companies trying to get in the states. that will be addressed tomorrow when 15 major ceos, many of them tech companies, will be meeting with executives here. emily: all right, president xi jinping is about to speak. we will cover this tomorrow. that does it for this edition of "bloomberg west."

don't miss tomorrow's show. ♪ . .

phil: i'm phil mattingly. , and i'm john heilemann "with all due respect" to donald trump, this is a blue wall. good evening, sports fans from an way park. there's only one thing this part of the country was more than politics, and that is a spell. tonight, we are talking to the red sox resident, larry lucchino . it is a historic day in america, both the president of china and the pope