>> the chinese president met with business leaders today to say the relationship had in or miss potential print the same day we learned of records that million more federal records were stolen, experts are blaming the chinese government. how is president obama to approach friday summit? ♪ emily: i am emily chang, this is "bloomberg west." commute releases their

first global product outside of the u.s.. growth,eaking of global instagram is leaving twitter in the dust as it hit 400 million monthly active users, most from outside of the u.s.. this trunk twitters 316 million, what next for instagram? you will not want to miss my interview with sam altman. i caught up with him today at tech crunch. we discussed the favorite tactics being used by unicorns. , the guest oflead honor on the west coast, chinese president xi jinping. he made the rounds among the business elite in seattle. they were serious tensions among the u.s. and china with cyber security, but out of today came one winner, that is going -- boeing. we are joined with details.

right now i am at boeing's biggest play manufacturing center in the world, half an hour north of seattle. looking behind me, every single 747 comes out of the world comes out right to those hangers, as for the deal between the u.s. and china and for boeing, basically, beijing has greenlighted the purchase of 300 planes from boeing that will go over to china. the total worth, $38 million. not only that, beijing has also greenlighted a new 737 finishing center for planes in the country. this is the first time the boeing will have a center in the country. airbus has one there, but it is a big coo for boeing. emily girl cyber security is an elephant in the room. we learned today the office of ,ersonnel management hacks

experts are saying it's not just to chinese hackers, it is the chinese government behind us. -- this. what did the president have to say about cyber security? >> flatly and hands-down, the president has said that china does not hack. with that said, other sources backedt at least china's entities are hacking companies, not just in the u.s., but also around the world. in the past year we do know that for example the office of personnel management in d.c. has been hacked. they have compromised 20 million former and current federal workers. united airlines has also been hacked as well as anthem health care. it is a big issue, people are talking about it. xi jinping is addressing it. looking ahead to what is happening in d.c., we will have to see if the words translate to action. research study that

has come out that says that cyber security and espionage is one of the top three issues for americans looking overseas to -- to china. emily girl what can you tell us about progress made between president xi jinping and the business leaders? >> it is good that you bring them up, it was a closed-door meeting, we do not know what came out. we did actually see tim cook leaving. we got good footage there, but in terms of what actually happened behind closed doors, that will be for those 30 executives both from the u.s. and china, totaling $3 trillion worth of market value for them to digest. thank you so much.

i do want to talk little bit more about this visit and what the president had to say. said, we do not know exactly what went on behind closed doors, it appeared to be a formal setting, do not know how much back and forth actually happened. how productive is this? >> i don't know, not being there, i cannot to it, i do not think anything much will come out of this meeting. andissues between the u.s. china on a technology standpoint is there is a lot of talk about industrial espionage and technology. the other issue is around cloud shirt -- cloud services. the u.s. cloud services have certain limitations. they have difficulty in trying to offer services in china. google obviously has made it clear that it has some issues around china. worknk there is a lot more

which needs to be done between the u.s. and china on a technology standpoint. it is interesting that we are celebrating the boeing deal. it is more visible, it is more about the job. -- jobs. it is about yesterday's technology. the future is about more information based economy. that is where we need to have much more clarity. he did speak about the importance of u.s. tech companies, specifically companies like apple, it is andic given that facebook twitter is locked -- blocked in china. how did this meeting with president obama, what is president obama to do with the chinese president is heavily saying, we do not hack, yet private companies are saying yes, they do. >> politicians say one thing, and do another. i think we have to confront this.

i think we still think of war as something of a old-school industrial war. the front is all digital, all cyber. emily: we are in the middle of a cyber war. >> businesses are being impacted on daily basis is -- basis. to deny that anything is happening, we do not have to believe it, we have to take strong action. emily: thank you. all you apple enthusiast are probably counting down to friday when pre-ordered iphone 6 s and -- and as plus being ordered. apple is learning some new yorkers that they should expect delays. blame it on the pope. pope francis arrives in your city this thursday and friday after meeting with the president in washington. apple has sent an e-mail to customers in affected zip codes in will be traffic restrictions,

they will make it up to them with a saturday delivery. ubs has a warning on their website as well. -- ups has a warning on their website as well. it is ok, you can wait. up next, my interview with white, nader's president and read it board member, sam alton. ♪ a startup that has helped investors get products off the ground, details about the rise and fall of quirky is next. ♪

emily: welcome back, i am unleashing. -- i am emily chang. earlier today i set down with sam alton. he recently tweeted, i am more scared of economics and burn rate. not bad byate is itself, companies losing tons of money before they make tons of money, that happened at facebook and google. that is ok, when i worry about is companies that are losing tons of money and have no plan. that is the problem. the super low-margin businesses that operate as if it was a high-margin business, that i think is a problem. many people are not taking about how this will make money. if you have the operating culture of a facebook, but you have a margins of a amazon, that is a problem. emily: what are you telling your startups?

sam: have a plan. go, i'll yeah, i actually do need to generate -- sometimes it takes one ear. -- 20 years. it is ok to lose a lot of money up front, as long as the finals of the business support it. you do have to have a plan someday to make a lot of cash. emily: i recently had a conversation who had concern over companies like post made -- post mates. why are investors getting into on-demand startups? sam: bill is on the board of uber. they have probably burn for n in the last five years than any other startup. i don't think they are immune. i think it will be a giant company, but i also think they -- have to

emily: i want to asking about reddit -- i want to ask about reddit. sam: i disagree with the premise that reddit needs to make a comeback. it is growing fast. one of the counterintuitive things i learned about investment is that you should preferred and -- and an optimized startup. if they start up is growing like reddit, and it has no great mobile strategy, you can fix that easily, guaranteed and then it will be better. starting fully optimized, there are not the same number. reddit decidedof to not feel the kleiner perkins situation. have you been watching that? sam: i do not want to comment on

her specific decision to appeal or not. i will say i enjoyed working with her. i think that she really brought the issue of women in text to the forefront of public interest. -- in technology to the forefront of public interest. emily: are you doing anything differently because of these issues? sam: everyone talks about diversity and technology. the best thing you can do is act on it. one quarter of the women -- the partners at our firm are women. we find -- we find women that -- at the rates they apply. also do not think that diversity is just about men and women. we try to be thoughtful. i think it is the right thing to do.

do you think the rates they apply is enough? sam: it is hard to do more than that. i think we can continue to what -- encourage more women to apply. women in the partnership though often meet with women to talk about startups. i think we can increase the number, it would be hard for us to increase the number that we hire. emily: how to use the this playing out? expensive. great companies, the companies that really matter to our returns and the quality of life for people, those will do fine. i try to leave thinking about the environment to people to come on the show. i try to focus on particular companies. emily: is this unicorn thing

dangerous? to mark about this, he said he thought people were more of you -- obsessed with being unicorns. sam: absolutely. companiesthe list of with over a billion dollar valuation, over half the value between 1 billion and 1.5 billion, a quarter were valued exactly at one billion. people are clearly obsessed with getting into this. they are will -- willing to put all weird structure on their terms to get there. i think if you are looking at the financial data, you would say some thing is amiss. there is some fraud going on or something. they do not fit the distribution. there is a huge desire to get right to one billion or just over, i don't care. --dumb.t is down emily: will come back to bite them?

if you should've been worth 200 billion and you raised it, that will come back to bite you. emily: what is your advice? sam: we always say don't over optimize on an valuation. don't expect -- except messy terms. emily: sam altman, president of combinator.- y he is not shy about saying what he thinks. >> it is great. i'm glad he is more plainspoken. he does not get into specifics. he does not name companies which he thinks are not doing ok. if he knows, he should talk about it. i talked to people around those es, fores, postmat

example, i learned a lot. emily: hold on, bill expressed concerns about on-demand startups saying he did not think the economics might work. an,made a comparison to web he's that everyone loved it, but it was economically not possible. tes andlked to postma people talk -- he will close to , therecart -- instacart is a great air area -- gray area. if sam thinks there are some companies at risk, he should call them out. why not? he is plainspoken otherwise. emily: why not just not invest? sayse other thing, he startups should not optimize for evaluation, actually that starts at .0.

seed level. -- at that has to start at ground zero. that is not start at $1 billion. at $1 billion.rt emily: do not overvalue yourself. you are sticking with me, we'll talk about uber. but first, quirky is calling it quits. they have filed for bankruptcy. is a far fall for the six-year-old company that has went -- had once raised that he $9 million from ge. $79 million from ge. the company plans to sell its assets, including the smart home business for $59.

according to cb insights, at least 34 startups have failed this year. "bloomberg west" will be right back. ♪

emily: it is time for the daily bite, the number is 400 million. that is how many monthly users instagram says it now has. more than twitters 360 million. instagram says the growth comes from europe and asia, that is music to the ears to the guys at facebook, which owns to graham -- instagram. according to forbes, instagram's ad revenue will reach $2.8 billion in 2017.

when it comes to global cities,uber has a new favorite, the company has chosen a metro population of 14 million to try uber commute. it follows the teaming up of lyft and the chinese market leader. lyft investor. i can'tin china, imagine this is a service that chinese consumers would be excited about. anything that helps pay the bills. testing a new service like this in china, what do you make? grexit a smart -- >> it is smart. they have to try china and india as growth markets. that is were the future is for uber. investor, howft

widespread is the chinese company? do they have a commuting carpooling service like this? are in 80% of the market compared to uber having 20%. they are in 60 plus cities in china. they are very big. in terms of uber doing this, i agree. i have to wonder what -- with their issues being cast as a taxi competitor, if this is not also perhaps a bit of a pr move to recast themselves as a real peer-to-peer tress rotation company -- transportation company. the government might require them to be commercially licensed.

he recently did a round the r, andto her, you used ube you had observations about how well they're doing. at the same time, we are seeing uber having trouble in paris, the court upheld a ruling against them. tell me about your observation. >> i love the whole experience. great. is i think it works in places where there is an abundance of drivers. it does not work where there are not enough drivers. in tokyo they did not have many drivers. the wait time for longer than you and i are used to. stockholm, the wait time was somewhere between seven and 12 minutes. the prices were lower than san francisco.

om: you start to see the effect is based on the number of people who drive for uber. the more people there are, the faster prices go down. they: you are part of department of transportation in chicago and d.c., obviously these regulations are different, triumph?and lyft -- >> subsidy rules are happening in china. whoever is subsidizing more gets more drivers. it is a different animal. isike the fact that lyft partnering, that is not mean that uber should not. emily: thank you.

tomorrow i will interview the ceo of opulent, do not visit -- miss it. ♪

>> from our studios in new york city, this is charlie rose. charlie: pope francis arrived in washington today, coming from cuba for a visit to the united states. president xi jinping of china came to the united states. his first stop is seattle. he will then be in washington and in new york. cyber security and china's actions in the south china sea will be on the agenda during bilateral talks. in syria, russia stepped up its support for the assad regime. the kremlin says it is a campaign against isis. more than 4 min