attacks in beirut. 37 killed, 180 wounded. beirut is the stronghold of has below, which is fighting syrian forces. a breakthrough for kurdish forces in iraq. they now control a highway that is a main supply route. forces are trying to retake a strategic town overrun by militants last year. they are backed by u.s.-led era tax. -- obama administration said people sign up for health coverage last week as the 2016 season got underway. consumers are being urged to shop around. returning customers counted for two thirds of customers. may receive the largest union endorsement yet. postal workers backing the

senator. he is facing a challenge to his eligibility on the ballot in new hampshire because of his longtime status as an independent. and those are your first stories. ♪ west.this is bloomberg cisco posts a 9% gain in earnings per share but the results contain a warning. hoffman defending a controversial executive retention plan. shares of a navigation software surged.

first, quarter earnings from $12.7 billion in sales, up 9.4%. the company is warning that second-quarter earnings may not be what they might have been. we have been taking through the numbers. in the quarter, what was the general tone on the conference called? >> the tone for what happened was pretty good. they were pretty positive with the possible exception of what happened in the router business, which was down 8%. quarter.pretty good there was an issue in guidance. cory: routers used to be the

is that really a sign of the way the world is changing? i think the issue with routers this quarter has to do with new products coming along later in the year. cisco reported routers down 8% coming off a 3% growth in the past two or three quarters. i think it is almost like an iphone effect. in advance of a new model, you get customers delaying a bit. overall, this is a company in transition. they are trying to get away from that legacy business and grow a new product. security has been a focus for a while. how is that doing?

>> security did well. the issue with that is that it is a transition, deferred revenue. people are not used to that. they are used to them being hardware and software. there is an adjustment on that. anytime that cisco or a company in their position comes out and says, things are not looking as good, people immediately jump on that and say maybe these guys are not getting it or profiting from the transition to the cloud . that is what is hurting stock. listen tos chuck robbins, ceo. q1, we saw lower growth driven by uncertainty, primarily outside the u.s. cory: what is your reaction to that? >> cisco generates 90% of its

revenue in u.s. dollars. of that remaining 10%, the company said two percentage points of its guidance -- it's a guidance was taken down by two percentage points in a little portion of revenue alone. the remaining 90%, you are selling in dollars in countries where their currency is falling relative to the u.s. dollar. cory: if any company were to use , theollar as an excuse impact would be substantial? >> definitely. they are a global company. when the dollar goes up, it raises prices. talked wonder too, you with enterprise hardware companies, when you compare cisco to hewlett-packard or ibm, ciscoe these guys --

doesn't have such great insight. >> exactly. of thefirst decade century, they were growing at an average of 13%. now it is down in the 4% range. that is not as good as it was that it ain't terrible. the question going forward, will they return to that? sales toalks about his the data center guys, facebook and google, he said that was up 20%. nota huge area and they are giving more details but if you take what he is saying, they are responding to the challenge and beginning to see benefits. cory: what do you think about that? that is true. cisco is a great global brand.

they are everywhere. they dominate the networking industry. that would include the web companies. where they really shine is customer service. they are very responsive to their customers. as networks grow in complexity, particularly with changes we are seeing in data centers, cisco can play to its strength and say, we will take care of it, guys. we will build a network and take care the maintenance. that is where they are seeing strength. .ory: thank you very much tomorrow, don't miss chuck robbins on bloomberg tomorrow morning. apple has changed the way we communicate and wants to disrupt the way you will pay for things. they are in talks with banks to introduce a new peer-to-peer payment system using phones.

flinging dollars, making it rain. it will be a feature of apple pay. it will compete with paypal's platform. coming up, they call it the last mile of delivery. no talk about why logistics are the most important part. linkedin defending yahoo!'s controversial pledge demands. ♪

list climbing to a one-year high. yelp also rising to a three-month high. gopro, shares of the camera on a stick sunk 8%. gopro now down 63% this year as it faces competition and weak orders. door -- is getting sued by in and out. the burger company claims the delivery service infringed on a trademark by using a fake in and out logo. in a now says they never is authorized doordash. we reached out to comment with no luck. there are also no in and out burgers in new york, which is a tragedy.

we wanted to have you on for a while now. this business is somewhat similar to yours. how is it different? >> they are trying to be two different things. it is hard to do more than one thing in any industry, especially the tech industry. we focus on the marketplace. we have launched a logistics platform to handle the last mile, partnering with folks like uber and sidecar. want to be the marketplace where the consumer goes to delivery.com and says, i want in and out, delivery to my house. >> if their ceo is listening, i would say we can power online ordering for you. i wonder what your take is

on this because there are a lot of companies trying to deal with this. >> it is an interesting space. demandseeing the on economy exploding. the question comes down to the math, does it work? is smart,ur approach focusing on one thing and getting a perfectly right across a bunch of categories. it is not just food. apps fore launched alcohol, laundry, and groceries in certain areas here to his point, you look at companies people years ago, driving around trucks because they owned them -- i think you decide what it is you want to do and focus on that. let me explain to you why

you are both wrong. the bigger unit costs would lead to better profits. if you are going to get not just the marketplace but also all of delivery dollars, if you execute that well, that is a bigger profit, right yeah code >? yes and no. >> which is why us integrating with them is a lot of sense because ultimately what you are trying to get is that delivery cost down to zero. the consumer doesn't want to pay a lot for the merchant. that is the beauty of the internet. it is more convenient. i can pass that order through the internet and have a transact on the internet and stay doing whatever it is i'm doing at that time. cory: is the notion that the last mile part -- is the lowest margin part of the business? >> and you guys have a partnership with uber? >> we launched in new york.

york, it isof new all bicycles. in other markets, we are dropping curbside. them,l be doing that with with sidecar. api yout is through an have with them? using their infrastructure? >> that's right. any merchant in new york and around the u.s., they can use it as a way to expand their existing delivery zone or they can use it -- >> that's right, exactly. [indiscernible] >> sidecar investors think that is an interesting space. the sort of our part of the business. looper and lift have a nice on that. yft have ar and lif nice total net. great.car has been

it is going to be basically an opportunity for us to be everywhere with our platform doing what we do best. as you expand this to different places, let's use the in-n-out case. for them to go into this business of delivering food to people where they want burgers which is everyone everywhere, even vegans, probably. >> the lettuce wraps. but not really. protein style. for them to launch with you, what does it really take? they need to think about more than just putting a widget on their page. >> we publish it to our marketplace. in a situation like in-n-out -- >> [indiscernible] are around the corner from bloomingdale's, we are shopping market of sorts. in-n-out might say, i don't want to be only on the marketplace, i want visibility in my own

website so what we build for our marketplace we actually also enabled inside merchants' own websites. in-n-out probably drives a lot of traffic to their website. cory: they would probably need a different infrastructure in their facility. >> sure. for quality assurance, but the whole idea is that mobilize asian becomes more pervasive, merchants are starting to evolve their own business models were they look at their local storefront notches as a place for people coming but as a place to locally distribute. in an upper a weird example, in-n-out could be so much bigger than it is in the fact that they they behavend -- differently which is probably why they are filing their lawsuit which would be an issue for other folks. behave thatsn't way. for most businesses, they want to figure out how to work with

delivery.com so they can create more demand. >> i would add to that, pink berry in new york, placing an order through their website or delivery.com, delivered by uber , it is just preparing frozen yogurt in a cup, it doesn't take a lot of work. it is just a matter of resources and the venue. toppings -- >> the toppings are in little containers because it given to the customer support it on top. cory: thank you. coming up, marissa mayer under fire this week. that figure is going to asking, marie hoffman whether a pledge signing was the right thing to do. , the explicit

expectation that yahoo! executives need to commit to sticking around a 3-5-year tour of duty to build a stronger relationship. and that was reported earlier this week, they have seen a number of departures, recently -- but, yes, revolving door at yahoo! , over 45% of work can be automated using current technology, and it's not the jobs that ♪ you might think.

cory: icon there for one, welcome our new robot overlords. 45% of work activities could be automated using current technology. conventional wisdom says that

low-wage, low skill jobs -- is 20% of the tasks that a ceo performance could be performed by machines. there are many low-wage occupations, landscapers, maintenance workers, only a small number of jobs can be automated. is a fascinating notion of what can be changed with current technology, with the current technology part is interesting. to a certainrising extent that we have discovered that as we look at the technology that has artie been developed, applied across the economy -- we looked at over 2000 activities that we paid people to do in the economy, at 45% of them can be actually automated by adapting current technology. investing? >> not anything in this world,

like toys, things like that. this is over our head as far as how we invest. as you think about the different ceos and in particular the one, what specific tasks did you identify on the ceo level for instance that you guys thought were replaceable? >> i think it is remarkable that not only is automation something ,hat affects low skill workers but also most senior executives have some tasks, including looking at reports that come on a periodic basis and extracting insights -- we know there is technology that can do that, as well. things like scheduling and producing certain documents which ceos and other executives need to do, take up a considerable amount of time and we see technology that is

already been demonstrated that can do that. cory: how do you do a study like this? >> we are lucky. we have a terrific team of folks that join me to do that research. we describe our methodology as micro to macro. we have the benefit of 10,000 colleagues throughout the world who are embedded within organization so we can understand on a detailed basis -- we looked at over 800 different occupations in 2000 activities and for each of those, tried to assess against a team capabilities, sensing emotion to understanding language, navigating the physical world of fine motor skills, compared that against the state of art a technology, compare that against the environment in which people work, and then understood even adapting current technology, how much could be automated? as we continued, we looked into the future and tried to assess

how fast different technologies will advance. if we think about understanding natural language, another 13% of the activities we pay people to do in the economy actually could be a security for you improve the ability of machines to understand natural language. cory: it is interesting, it seems a common thread in we have facebook, apple, android, ibm all working on a lot of natural language products right now. that seems to be key. tremendous amount of sense and that is one of the things that our research allows us to understand which is, which are the capabilities that if we increase them would actually allow organizations to gain more orductivity, captures some the potential from automation. quite frankly, most of the potential in many cases, it doesn't come from reduction in the cost of labor, it comes from other benefits, such as increasing quality, throughput

and the numerator of the productivity equation. cory: cool study. global stocks surge with a partnership with uber. and virtual reality gets a boost from some traditional media heavyweights. more of bloomberg west. ♪ the only way to get better is to challenge yourself,

and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment,

we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. i just had a horrible nightmare. my company's entire network went down, and i was home in bed, unaware. but that would never happen. comcast business monitors my company's network 24 hours a day and calls and e-mails me if something, like this scary storm, takes it offline. so i can rest easy. what. you don't have a desk bed? don't be left in the dark. get proactive alerts 24/7. comcast business. built for business. cory: i'm cory johnson in for emily johnson. 7:30 wednesday morning in hong kong and joined for the first

update. >> china's national chemical corporation is in talks to buy the world's biggest pesticide maker. they are offering $49 per share. it is about $42 billion. they have rejected that offer but some agreement could be reached in the next few weeks. indian prime minister has begun his visit to the u.k. a partnership to develop nuclear power plants in three indian cities. he is the first indian leader to visit britain in almost a decade. the australian government is considering rationing baby formula. hong kong restricted the amount of formula that can be taken out of the territory. and a busy day for a hong kong

billionaire and set two world records in 24 hours. blew-cut n for a rare daughter and buying it for his daughter. that was double the previous record for a commercial sale. $50 a bit of a step up of million blue diamond. cory: that was not his seven-year-old daughter, right? the video we ran looked like an older person than seven. you would look good in blue diamonds. >> this seven-year-old daughter ot a pink diamond earlier. his 13-year-old daughter got a diamond and ruby and looking

after his daughters. i have to have a chat with my daddy. cory: that is not happening, johnson girls. thank you very much. stock on our radar today. the navigation software maker surged to the highest level in more than six years. it was for a deal with uber. they agreed to a partnership tom data. m- know this is an extremely valuable business. we have the latest from san francisco and he covers uber for us. and eric.

tomtom competes with garmin but the value of their map may be better than selling mapping devices. >> mapping is hugely important to technology companies. i was talking to an investor yesterday who was speculating if uber knew that, google would have bought them. there are so few companies that have a good sense of what is happening all over the world. and tomtom is this map provider that uber can work with. >> how powerful uber and signs a partnership agreement with tomtom that says to me uber is at the center of the ecosystem. and tomtom is a good stock to own. the devices though are not that interesting and your iphone can

do so much of what a tomtom device can do. the fact that it is moving big stocks like this to that degree is pretty interesting. >> we don't have visibility in the scale of the partnership either. i would agree that the uber rand being associated with tomtom and not sure of the scale of the agreement. cory: let's listen -- in this year of m. and a, this wasn't a takeover. uber didn't take their cash and buy tomtom. listen to what the tomtom c.e.o. had to say. >> there are valuable assets. and i think we want to carry on that technology with a lot of people. so we want to keep it this way. for the moment it's having these

assets and having invested for all those years, we are quite happy to be where we are. cory: no takeover of tomtom? so far, i don't want to say historically, but uber hasn't een a -- they acquired one company which is a company in the mapping space. but uber believes they should build, partner and not really buy. it's not a surprise to me they are not trying to buy tomtom. but it's something they are going to have to think about and build it themselves. cory: it's interesting this map data is so hard to get. you have investments and the mapping data -- uber woke up and said we don't want google to control our future.

>> until you're massive, that's not something you concern yourself with and you get really big and realize uber has plans for world domination and that they can't rely on apple -- >> they chose to call themselves uber early on. >> until you realize that you may have the global scale that uber will continue to have, you don't worry competing where google and apple are. uber has aspirations to not be working with those guys and build their own ecosystem. >> they are thinking of the future of the world and woled of driverless cars. cory: a quote going back a few weeks. and let's listen to the c.e.o. and driverless cars. >> the world is changing all the time. you need to allow the maps

changes and it is very complex to do and we are leading. cory: is software in the world? >> uber has been leading the world for a few years now. uber made no secret they are working on self-driving cars and uber c.e.o. said they are behind google. and google is the leader and google is the leader on maps and uber sees that and says, ok we need to diverse if i and going to be a come -- diversify and going to be a competitor. are not depending our competitor. cory: thank you very much. milestone, comcast and time warner the latest players to make a big bet on v.r. $30 million funding round.

it will cover the democratic and , e warriors season opener which games they won. the funding will be used to expand its programming including awards. disney and sky, and comcast joined part of the round in a social media focused. still to come, we focus on the future and creating quality content that is shareable. ♪

cory: you want to see this, a special look at the year ahead. we investigate the company's technology and industries that will put a dent in the universe in 2016. 9:00 p.m. new york time and 6:00 on the west coast. our guest joined the show when his company said it was splitting into separate companies. c.e.o. different ben, why did you do the split? >> i don't think we have two hours but i'll give you the short version. cory: keep talking.

and had rted thrillist a relationship with our guys, so trusted that it would be interesting -- our readers. and because the nature of our content is service-focused so we had a certain kind of relationship based on trust and lean-forward consumption. -- bought a small e-mers e-commerce and they actually got big, in some ways too big to be managed by the team that we had in place. so we built a separate infrastructure to manage it and we realized we had two management teams in one place and we -- cory: different business goals? >> and different needs for capital. we went out to the market to raise capital and found there were different pools of

investors who made for good investors in different businesses and we decided to take our baby jack threads. cory: you have an editorial issue there. some level your readers who read your site, i wouldn't love to ead a magazine about ralph lauren. i wouldn't want them to publish -- >> that wasn't the way we were doing it. we kept our brand independent from one another. cory: but still -- >> we didn't find we had an issue with our audience but the relationships we had around ways we would share data and ways we would promote one another could be maintained through arms-length relationships that we have but the businesses didn't have to a maintenance structure, because just to maintain this relationship. cory: talking about clothes and

not politics. >> exactly. it's very fun to be focused. we have had two sets of priorities and be able to have teams focused on each of those is really nice. cory: give me some kind of metric that your online venture is making money. >> it's about break-even right now. but we are very close to that nd we are growing quickly. a sense of that it is our best year ever by 40%, 50%, in terms of revenue from a user perspective, 100%. our recent score numbers is uniques. 18 million we are trying to do something different than a lot of folks are doing in digital media.

right now social is eating the world and only thing that brands care about and some many of these leaders talk about. all about the sharing and reaching that organic reach. our d.n.a. is in service and we are focused on giving a utility and product. giving people on the local level that helps them make decisions about how to spend time and money. if you think about sort of the center of the internet, for a long time it was google and search and social came along and the market moved over there. i think for us, we are focused on how we can build a media property that equally relies on search to be a utility and actually help people answer questions and at the same time build that fund shareable layer on top of it to build a media company that is different. cory: do you know what my

favorite article that i read is? >> that we are a member in the club in san francisco. cory: that is not the one. disney studio to bar and got drunk in universal studios. >> i actually did not read that, but i will seek that one out. sounds like good reporting. cory: good work. ben, thank you very much. now.tory we are working on hmp ulu, more than $5 billion. time warner joined three other is takeholders, and share trading. fter-hours we are going to talk to a c.e.o.

next. ♪

cory: there was an open-up about her differenceors. you guys are now officially differencorsed and have two companies. when there is so much wealth

involved and so much scrutiny, how do you go through a process like that? >> it's complicated. that's all i can say. >> but differencors is never easy. we are -- difficult vors is never -- difficult vors is never asy. >> we needed the ice cream and there are moments that it's hard and you do the best you can do and part of is being gentle on yourself. in the end part of what we have done, you optimismize of finding the best.

>> you live in this silicon valley bubble. you do seem so normal. how do you stay normal? >> stay focused on the things that are important. i volunteer in the school and make sure the kids do their homework and i see my family and all my friends. listen up, lovers youtube out with a new app called youtube music and aims to differentiate itself through video and bringing all to your smartphone. the announcement of this app follows google's parent of youtube red. it was on prime. there is an add-on option for $9.99 a month for youtube red.

aircraft ins installs products. they attended a big air show. announced more partnerships with airlines in the middle east. e company is continuing to partnership. so how important is dubai air show? >> they are both important. the middle east region is a growing segment for us in our air transport market and a bunch of new aircraft filled with new technology and a great place to showcase the new technology. cory: the ways that airplanes connect with air traffic because it's kind of old. >> there is great modernization and providing broadband links

that connects the passenger and enhanced services to the airlines to connect the front of the airplane. cory: what was introduced in dubai? >> new weather radar technology that allows us to both detect weather and predict what is going to happen with that weather to help the pilots avoid potential turbulence. >> and you are showing this to boeing and the manufacturers or specific airlines? >> we sell to both. some of the equipment comes standard on an aircraft and we would sell it to boeing and other technology we sell to the airlines and then they either modify the aircraft after delivery or add it as an option. >> interesting to watch the flight book go digital and the way airlines have reacted.

some of them are using software like f-the-shelf hardware ipads. cory: i wonder the way we were talking about garmin do you look say are and android and they coming to lunch? >> we apply the tech nollings and we have different safety requirements but we leverage that as oppose to compete against them. >> how big is that? >> aviation business it's well over $1 billion putting the equipment in the air traffic market. cory: you focus on the most expensive planes? >> we go down to entry-level business jets. >> the technology is a

revolution happening now. is this tough that exists in the planes of 10, 20 years ago, is that safe? i'm feeling less and less comfortable on airlines. i don't know if i'm getting old and weird. >> you are getting old. >> the air crafts are safe and processes and procedures to make sure they stay safe. the innovations is they are connected and designed to be in a network environment and move information on and off the aircraft much easier with the new generation platforms and that will help the aircraft be more safe. cory: talk about air traffic control, not just about safety but pollute less and get people to places safely if there is better air traffic control

systems? >> and using g.p.s. technology and allowing planes to fly indirect routes instead of using radar and g.p.s. data links to fly closer which is efficient. cory: thank you very much. thanks to my co-host. that does it for "bloomberg west." ♪

>> from our studios in new york city. this is charlie rose. charlie: gisele bundchn is the highest paid model in the world and wife of tom brady. and written a new book, it is a series of photographs. i talked with her recently about the book and that's part one. and then about her life from brazil to world wide stardom. charlie: let's talk about this book, it is a heavy bo