>> it is noon in hong kong. i'm here with an update of our stories. australia upon the guest growth in 15 years. gdp expanding 0.9%. describes the recovery as respectable. citigroup will not change its bonus pool. howgers -- depending on markets perform any final year. declining to comment.

and volkswagen recalling cars in india. than 19e announced more recalls. let's look at markets. hong kong and china, currently closed for lunch. trading in they the morning. this is how it looks at the moment. singapore up 0.8%. i am back in half an hour with another update. time for "bloomberg west."

emily: i'm emily chang and you are watching bloomberg west. coming up, mark zuckerberg gains a daughter and gives away a fortune. the facebook founder announcing his plans to donate 99% of his shares in the social network. plus, a changing of the guard. can the new leader save the smartphone business? and what goes down must come up, a new investment in snapchat. a big dose of news from mark zuckerberg. he and his wife are the proud parents of a baby girl named maximo. his wife and he planned to give away 99% of their shares in facebook worth about $45 billion. in a letter to their daughter he said our society has an obligation to invest and improve the lives of all those coming into this world, not just those who are already here.

joining me with more is our bloomberg billionaires reporter tom metcalfe and sarah. what is happening here? 99% of his facebook shares. >> it is worth $45 billion today, a big chunk of money. although he is phasing it out he is doing $1 billion a year or for the next three years. he will be containing voting control. it takes effort to get going as much money. you have to get these investments. but so far he is telling us that he cares about health and education and inequality in technology for change. emily: he wants to advance human potential and technology on disease and connectivity. if this on any scale that we have seen before? how does this compare to not just other tech titans but other billionaires? >> it is incredible.

the other two people would be warren buffett and bill gates who basically combine forces into the gates foundation. this 99% of his facebook stocks, worth $45 billion, the gates foundation is about $21 billion but in terms of the enormous gesture, and is pretty much without compare. emily: i just over 30 years old, which is very young for a budding philanthropists. >> gates did not get serious about the until he was 45 years old. buffet much later in life and for zuckerberg to start this now he does say in his letter to his daughter that he could not afford to not act now. there are so many problems that need to be solved and they need to be solved sooner rather than later. emily: a number of congratulatory messages flowing in. bill and melinda gates say as to his commitment, the first word that comes to mind is wow.

if you have bill and melinda gates saying this is an inspiration to us, it seems pretty incredible. give us some idea of other initiatives out there that do not come close but certainly try. >> there have been really few initiatives of individual type. 2.5 billion dollars, and then hundred million dollars to cancer research. second part has put a cap on this. emily: lets talk about this because i want to know how it affects his voting control. he says in the later you will remain ceo for many years to come, and i understand he will maintain voting control which he certainly has.

>> he will maintain control of his work, the engine through which this is all possible. the facebook shares have mostly by ratings from the analyst to cover them. the $45 billion we are looking at could get bigger. it is worth noting that he is not just starting his career as a philanthropist. he has given to many causes. he has given to general hospitals for their trauma centers. he has given to schools and their breakthrough prize for science and technology, he has been a big player in philanthropy world for at least the last couple of years. emily: most people do not have wealth on the scale of mark zuckerberg but we are talking a lot about how the technology industry has minted to these young millionaires and sometimes billionaires. do you seek essentially a sea change in how young people think about philanthropy? >> this will be one if it is at all. criticism against these tech billionaires that have become

so wealthy so quickly and they are not giving back. you look at jeff bezos similar level of wealth to zuckerberg but he is focusing on amazon and he is not yet taken a step to do the philanthropic giving. that is the most interesting thing to me how young he is. andrew carengie set the tone for philanthropy. there's a tough comparison. this is one of the most generous gifts that humankind has seen. emily: congratulations to them on the new baby girl. tom and sarah, thank you both. it is a divisive issue between investors and sam walton is weighing in.

it is ridiculous that venture capitalist pay a lower tax than households on income. that tops out at about 20% while the top rate for income taxes is nearly 40%. all said that more investors than you think is say they are paying a higher tax rate. they have revised calls to end this benefit. a stock we are watching today, hp enterprise shares rising to the highest level in a month with a partnership with microsoft. they are a newly independent company and have been shifting their focus to hybrid cloud computing, a mix of public and private cloud services. coming up, samsung is giving its

global business a makeover. replacing a top executive but can new leadership pull the company out of a smartphone slump? ♪

apple has not made it a lot of headway, which is not to say they cannot so far that really has gone to the local vendors and frankly to xiaomi. emily: anecdotally i was shocked by the number of iphones i saw in beijing when i was there recently. how much control to his the family actually have of samsung. if the smartphone sector does not around for them how much control do they have? >> i think t.j. yeldon his family have the time they need to take and right the ship. that is the way the corporate sector is set up. i think where we are looking at ease even though they are still in the house at all, the family does have the control and he is in a position of control.

emily: do you see this winning back investor confidence? >> time will tell. we have not seen their shares drop over the last year but we will need to see progress over the next year. emily: what kind of progress are you going to be looking for? >> in my view, samsung is one very good phone, one very good upgrade away from being back in growth mode. again i think a lot hinges on product development here on out. all eyes, included mine are on the seven and what we can expect. emily: we are expecting the s

7 to be annoucned. thank you so much for being here. istaking off the gloves. blocking the link to any telegram. the telegram leaders can use the link but cannot cap on them or copy them. whatsapp is the most popular messaging app in the world a but telegram has been growing quickly. what tough is owned by facebook and baby taking a page from the social network's playbook. they blocked access to another app. creating a test for women struggling with infertility. that is next. plus history in the making out of washington this week. scientists debate the ethics of gene editing.

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emily: today in bwest biotech a historic summit is underway in washington. hundreds of scientists, policy makers, and the president heinz advisor are discussing the use of a new technique called crisper. it is a form of gene editing that allows changing the dna of living cells. it could one day be used to avoid genetic conditions like muscular dystrophy. but some fear can also be used for aesthetic or competitive enhancement. some have been an aggressive in this research but many organizations are calling timeout on any human experiments. this could result in new calls for restraint in this explosive area of research. staying with biotech in the u.s. alone nearly 7 million women struggle to get pregnant and

spend an estimated $5 billion a year on fertility treatments. it has been extremely expensive as an undertaking. the average cost of a single in vitro fertilization cycle is over $12,000. it is not covered by insurance and often more than one treatment is needed to work. very often. a new start up is trying to remove the guesswork. it is part of a burgeoning guilt field of research called personalized medicine. the ceo joins me now with more. thank you for joining us. first of all, explain what you are doing with the data as it pertains to fertility, and why is it not being done already? >> thank you. i founded this company to address a big problem which is that in the u.s. one in eight couples struggle to conceive. we often hear it is about age. but it is not just about age. age is one important factor.

our technology takes into consideration many different factors related to fertility potential. think like bmi, sperm parameters, hormone metrics and dna. this information can be empowering couples who are struggling to conceive. it can help them make more informed decisions. our decision is to bring the game changing technology to any woman who may want to have a baby one day. emily: you are using predictive analytics to educate couples about the chances of conceiving. different fertility treatments for example. how widely is it used, how much does it cost to implement at the doctor's office? >> we are very lucky that polaris is already used at clinics around the country. how works this is the world 's first cloud-based big data platform for fertility that layers predictive analytics on top of real-time data streams

and we can source medical history and information. and then we can get clinical information, things like hormone levels currently from the electronic record system. what we are able to do is integrate this information into a report that the physician can use to more simply explain to a couple what their chances personally, not just in a 35-year-old couple are to maximize chances of getting pregnant. next year we will be launching the first genetic test for fertility potential. a physician can take into account with someone dna says about their potential as part of their overall treatment recommendation. emily: tell me about this test a little bit more. is it really possible, such a thing as a fertility gene? >> it is very similar. you mentioned it earlier i believe. it is very similar to brca testing for breast cancer risk. we are looking for genetic factors that encode fertility potential.

we all have a friend who really struggled to get pregnant, maybe had multiple miscarriages. we all have that you had no trouble getting pregnant what we and others have shown including our very large network of the top fertility centers in the u.s. who we've been doing clinical research with, we have shown that genetics can be a strong driver of that fertility potential. emily: we talk about fda and difficulty getting regulatory clearance. what hurdles do you face with this genetic fertility tests in terms of eating it more widely implemented? >> our clinical tests are not regulated by the fda. there is a separate set of standards we have to meet. we have to get that regulatory approval before we can sell our test. we are excited that the test is finally coming to the market because it is the culmination of six years of clinical research that we have done with the top fertility centers in the world.

we think having access to not only multiple metrics that we talked about but also genetics is going to be game changing her for couples who are struggling to conceive and for any woman who may want to have a baby one day. emily: you give us any numbers on your success rate, where you found that the information you have given to couples is extremely different than information they have gotten from their doctors or where you can prove that this information is actually helpful? >> absolutely. we just launched, and we are tracking all of that. we are anticipating our new babies will be reported in the new year. we will keep you posted. emily: we are going to have to have you back next year to get an update. thank you for joining us. coming up, fidelity pulls a 180 and marks on snapchat and that

is after devaluing private companies a few weeks back. what does this mean for evaluation? you can check us out on the radio. ♪

>> and update of our top stories. volkswagen's owners have addressed their workers. they are expected to plead for support as they addressed the crisis. workers may you to take two weeks of leave. 300,000 cars have been recalled in india. manchestertball's city aiming to expand their presence by selling a stake in china. have paid $400 million for

13% of the group. the p two industry in china is undergoing changes after years of government control. it includes lower-priced services. one looking to raise $1 billion. which would value it at $15 billion. jump in the most in five months. on speculation beijing will take further steps to bolster home sales. the recovery slowed in october thanks to a supply glut outside the main cities. the deal will plug the gap until networke offers a wider

of stations prewritten state ina is the only the u.s. where they sell the car. let's get the sense of what has gone on. heidi.cific, here is it's have been trading topsy-turvy. we are heading to mid day and seeing gains across the southeast asian markets. oscillating between gains. the nikkei 225 volatile. despite the big third-quarter gdp, not much of a reaction for australian stocks. we somewhat after initial gains. environmental stocks decline. ironically, we are seeing

air-quality improving in beijing. to the reopen in hong kong and china. we will be back with an up date. ♪ emily: fidelity improves outlook on snapchat, marking up shares by 14%, following a month down. there is a one month lag with the sec. do the monthly filings cause volatility and how do they have the valuations? it is not just snapchat being marked up and down here.

they are being marked up slightly and they are not at the value that fidelity bought them. >> they have been a dig engine for the company and gave the mutual fund money, meaning they will have to bring the shares to market. they have a committee that reevaluates what the private companies are worth in size and it is not what they expected. if you talk to them off record, they would say that they felt like they went public without needing to go public. emily: right. >> so, it is a thing venture capitalists will have to figure out. emily: let's talk to a venture

capitalist now. what do you think about this? this impacts the sentiment to a certain extent, doesn't it? >> it does. i don't think we should overreact and that valuations mean a whole lot. the valuations on private company every quarter, we have to do that and we use a variety of ways to do that by looking at public market comparables. the valuation increase reflects that some of the comps for the company have gone up. it does not mean anything and i would not read too much into either. >> it is important to gauge the valuation of investments with the bubble and valuations being too high.

is it driving downward momentum we might be feeling? >> i think so. it drives sentiments and, by definition, a downturn is when everyone thinks we are in a downturn. so, what we may see is more reticence on the part of non-traditional investors with mutual and hedge funds. pulling back from the investments we are making. emily: does what fidelity thinks matter? >> it does. maybe they should not take money from fidelity and it is an extra risk and judgment they do not have to go through. and there is changing in the valley.

we will have to see. >> the mutual and hedge funds have been called worse investors. should they take money from fidelity? >> they avoid the scrutiny of the public market and they are written up and down with the financials scrutinized every month, having information public and asking what the difference is between that and going public. i think there is an awful lot of things with regulation and, if you are a company that wants to stay public and invest in growth, maybe something the public market does not tolerate so much is a good option.

people may say that they want to take money and they got to publicize it. emily: the numbers are going up and down and fidelity is in the red in assessments in snapchat and dropbox. what are you seeing on your side? are you seeing ipo's? >> companies are staying private and we are seeing evident signs in the markets and we are not wanting to see other funds.

we hope to have a seat at the table when the companies go public in a basket of these companies. they may perform and they may have done ok. emily: so you think this is happening? >> we think we are seeing companies not going out and getting the expected valuation that they want. we have not seen down financings. they are valued as a public company. emily: right. interesting. something we will follow. thank you. sarah covers snapchat.

thank you, sarah. a company we are watching is working with regulators in hong kong after compromising the privacy of millions. they say that attackers used servers containing names, e-mail addresses and photos of children. shares plunged. what is this doing to expand the access of financials to the public? we will hear from dan schulman next. ♪

emily: to what we are watching. chinese technology is jumping to the highest level since june after reports they may be nearing a sale, offering to pay $9 billion for the company within weeks. it would be a premium on the tuesday close. public and private sectors joining together to expand access to financial services. we sat down with dan schulman to talk about digital and mobile banking and he talked about financial inclusion being important to the company. >> the way we think about financial health is so important for the financial services industry to take on it and, as a leader in digital payments and mobile payments, the idea of using that in a cost efficient way to champion lower income and

middle income people in ways to think there from the about managing and moving money is a huge opportunity for paypal and driving economies and economic growth. as you know, you can do financial health with the dreams and ambitions of so many people. >> why is this good for paypal? >> we utilize software and mobile. when you can, there is a different cost structure that you can do and you can profitably serve a tremendous swath of the population that is not part of the financial system today. you know, there is a saying that it is expensive to be poor. financial services are guilty of that. it does not have to be the case with technology and we are a

leading user of software and mobile. we can provide basic services in a way that is affordable, faster, easier, more secure, and less expensive. it is a huge opportunity for us. >> the golden example is a service in kenya that is run by safaricom. what helped it grow was a physical presence all over the country. what does paypal need to do to actually have a physical presence in the world that is important for financial inclusion? >> it is interesting. it was not the banking system they used. it was agents that they used and people would come into the

stores to refill prepaid mobile accounts with money. they found that putting money into a mobile account, you can go to another agent and take cash out. the same thing can be done with the banking system and outside of the banking system using mobile right now. we just bought an example of combining remittances and it goes into a bank overseas. you can, instantaneously, instead of waiting 3-4 days, take money from the overseas bank account. this combination of electronic means to move money and physical distribution to take out cash is powerful. emily: speaking with the paypal ceo, dan schulman.

apple is synonymous with innovation from mac to iphone. they are on the cutting edge of technology. you would think they would be a spender on research. they are not. compared to others, they are cheap when it comes to that. they spent 3.5% on total revenue on research, compared to 21% for facebook, qualcomm, alphabet. is it because they make so much money? >> that is a big part of it. there is a rule that you need to reinvest revenue in future

projects and that is a bunch of projects underway that companies are making hay about with google and their cars and the facebook project. microsoft has projects underway. apple, by comparison, is under the radar with a percentage of revenue, spending lower. emily: don't they have a car that we believe they are working on? how do they get away with not spending as much money? >> they are ramping it up considerably and there are several different reasons. apple gets a lot of different suppliers and they rely on suppliers to develop cutting-edge technology that they incorporate in devices.

they get the semiconductor in the iphone and it is important. they have an investing heavily in technology. if you look at the new chips, compared to others, they are at the top. emily: should apple spend more or should facebook and google spend less? >> there is a point that can be made that they are efficient and they rely on a network of suppliers in a way that other companies do not. they are not vertically integrated, like nokia, doing everything in-house. that did not work out. apple has a vision of suppliers they want and they rely on a lot of suppliers to get there. emily: thank you so much. interesting story.

>> the future of sports media as cordcutters cut. we talk to john west about capturing the millennial audience next. ♪

emily: trends in how we watch sports are on espn. espn struggles, new networks are gaining fans. john is the founder of whistle sports. sports digital is dominated by mainstream outlets, espn, fox, nbc. you guys are getting territory.

tell me what you are trying to claim. >> we thought, when we started about five years ago, that young millennials have a different habit for consuming media and it is a broad term that goes across an age range. we have subscribers and followers on social media platforms with three fundamental differences in how they consume media and sports media, as opposed to their parents. they have shorter attention spans. they want to watch a video across social media. some of the platforms we are on prioritize short form video. third, they are global fans. they do not have the constraints of broadcast or cable. we think that we are reimagining sports and the media experience with the young millennials.

emily: some things we might see our behind the scenes interviews, how to videos. you have interviews with jeremy lin. if i want to see a live football game, how is sports going to be different in five years? >> a great question and we see the world through the eyes of our demographic and a trend that we watch across all of the data we get is that they want to be around live sports. we do not think this displaces that. we think the definition of sports is broadening and we are excited with the partnership with spartan race. they have 120 different events this year in different countries and it is exciting to be a sports fan.

there are a multitude of ways that young fans can participate in sports and the creation of video around the sports. emily: spartan has 50 different obstacle races worldwide, as i understand it. talk about scaling up the company and the opportunity for the brands. >> we are excited to partner with spartan for a few reasons and we are building a global sports media company to serve the needs of fans. spartan is a lifestyle and a statement around how folks get involved in a unique type of outdoor obstacle course competitive-type of sport that defines who they are. emily: all right. what is the fate of espn, down 7 million subscribers? where'd you see this going? >> live sports continues to be

profitable. our focus is on the millennials and how we can serve their needs. we see they have those across our network. emily: are you saying that espn is not going anywhere? >> we will have to wait and see. we are focused on our demographic and the needs that they have. we see those. emily: all right. john west of whistle sports, thank you for joining us. that will do it for this edition of bloomberg west. before we go to break, congratulations to mark zuckerberg on the arrival of a new baby girl. and, if you think this is a unique name, it is. there are less than 300 baby girls with max in a name and 0 with maxima.

we will be talking to john hanke. ♪

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