>> asian markets are extending the global selloff of commodities -- with commodities taking a hit. oil is near a three-month low. copper futures are at a record low. the commodity index fell to its lowest level since 1999. all of that is hurting commodities stocks. a thirditon is down for day. the fed says liftoff is still on

the table this year, but any subsequent hike will be gradual. it would be the first rate rise since 2006. singapore,n be -- tokyo, and boom by. -- and mumbai. back in half an hour. time now for "bloomberg west."

cory: you are watching bloomberg west. in shininger's night armor defending her attention plan. -- retention plan. fiscal first-quarter earnings from networking giant cisco. $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 -- we have been digging through the numbers.

in the quarter, what was the general tone on the conference call? >> 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%. it was a pretty good quarter. there was an issue in guidance. cory: routers used to be the whole -- 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. cory: 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. cory: let's listen to chuck robbins, ceo. >> in 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 the dollar as an excuse, the impact would be substantial? >> definitely. they are a global company. when the dollar goes up, it raises prices. cory: i wonder too, you talked with enterprise hardware companies, when you compare cisco to hewlett-packard or ibm, you see these guys -- cisco doesn't have such great insight. >> exactly. in the first decade of the 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? robbins talks about his sales to the data center guys, facebook

and google, he said that was up 20%. not a huge area and they are not 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? >> i think 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. cory: 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. instead of 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. linkedin defending yahoo!'s controversial pledge demands. ♪

cory: angie's 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. doordash is getting sued by in-n-out. the burger company claims the delivery service infringed on a

trademark by using a fake in-n-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. cory: you 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. cory: 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. we are seeing the on demand economy exploding. the question comes down to the math, does it work? i think your approach is smart, focusing on one thing and getting a perfectly right across a bunch of categories. it is not just food. >> we have launched apps for

alcohol, laundry, and groceries in certain areas here to his point, you look at companies from 10 years ago, people driving around trucks because they owned them -- i think you decide what it is you want to do and focus on that. cory: 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? 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. in the case of new york, it is all bicycles. in other markets, we are dropping curbside. we will be doing that with them, with sidecar. >> and it is through an api you 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. uber car and lyft have a nice hold on it. >> sidecar has been great. it is going to be basically an opportunity for us to be everywhere with our platform doing what we do best. cory: 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. cory: sort of, 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] >> we 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 want to expand -- they behave differently which is probably why they are filing their lawsuit which would be an issue for other folks. in-n-out doesn't behave that 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, pinkberry 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. >> the toppings -- >> the toppings are in little containers because it's given to the customer to put on top. cory: thank you.

coming up, marissa mayer under fire this week. a top figure is going to that -- is going to bat for her. says, 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! coming up, over 45% of work can be automated using current technology, and it's not the jobs that you might think. ♪

cory: i, 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.

>> it is surprising to a certain 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. cory: 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 tasks and in particular the ceo 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 that 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. >> and makes a 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 productivity, captures some or 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. coming up, global stocks surge with a partnership with uber. and virtual reality gets a boost from some traditional media heavyweights. more on bloomberg west. ♪

gie: malaysia's economy expanded slowly as product consumption eased. forecasts.economist made to wait for victory in myanmar. are two seats short of an overall majority in parliament. the army has been in control of

myanmar for more than five decades. asian markets are extending the global selloff as commodities taking a hammering on nervousness surrounding the rate hike. oil is near a three month low. gold has not seen such levels since 2010. copper futures at an all-time low. let's check in on how the markets have been trading in the asia-pacific today. >> it is all about the commodities slump. we are seeing red right across the board. share market down 1.5% on the asx 200. hong kong went on a lunch break, down by 2%.

the shanghai market down by 1%. weakness all across the region today. its first fall in three sessions, quite a bit of weakness from all of those key players. fall righta big across from those energy players. alibaba and baidu, on. -- come on.

cory: shares of tom-tom surge to the highest level in more than six years. it was for a deal with uber. they agree to a multi-year partnership. we do not know the financial terms of the deal, but this is an extremely valuable business. tom-tom is a company i have been watching for a long time. the value of their map software may be greater than their business 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 brand 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 been 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 -- and a world 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.

we 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. 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. 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. >> we started thrillist and had 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. so we 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 had -- 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. and let it free. cory: you have an editorial issue there. some level your readers who read your site, i wouldn't love to read 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. 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 and 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 about 17, 18 million uniques. 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. -- growing that organic reach. peoplefocused on giving a utility in a product they can come back to. 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. a guy who went to disney studio 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.

the story we are working on now. talks to to be in selling stakes to time warner. time warner joined three other big stakeholders, and share is lower in after-hours trading. we are going to talk to a c.e.o. next. tomorrow morning, "surveillance." at 6:30 a.m. eastern. ♪

>> you guys are now officially divorced and you have two kids and two companies between you. 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. >> part of it is that divorce is never easy. we are very good friends. we see each other on a daily basis. we are supportive of each other. it is the new reality of relationships. single workinga

mom. do you have any advice? accept that you can do the best that you can. it is hard. and you do the best that you can do. part of it is being gentle on yourself. i think part of what -- you really optimize for finding the best in everybody and focus on the friendship. emily >> 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. cory: music lovers listen up, 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. free, butsic app is there is an option for $9.99. rockwell collins creates aviation electronic systems. month, the company attended the dubai air show. announced more partnerships with airlines in the middle east. the company is continuing to innovate. how important is dubai air show? paris bigger or dubai bigger?

>> 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. -- is controversial because it is kind of old. >> where 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 -- you are selling 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 and off-the-shelf hardware like ipads. i wonder the way we were talking about garmin do you look at apple and android and say are they coming to lunch? >> the environment is a little bit different, has different

safety requirements, but we tend to leverage that as opposed to competing against them. aviation business is well over a billion dollars for us, putting avionics equipment into commercial air traffic market. we do that in the military market as well. 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 stuff that exists in the planes up 10, 20 years ago? 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 , 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 .ore direct routes cory: thank you very much. thanks to my co-host. that does it for "bloomberg west."

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