waters. a decade of sanctions on iran may end on monday. the iaea is opposed to it initial -- with a final report. the house approved the republican backed legislation giving congress greater oversight of the landmark iran nuclear deal. the vote was 191-106. president obama will likely veto the measure. michigan national guard leaders have arrived in flint for briefings on the drinking water crisis. the water became contaminated with too much lead. two french schoolchildren and the ukrainian skier died today after an avalanche in the french alps. three others are injured. for the first time in more than

two decades, l.a. will have a team in the national football league. nfl owners photo to let the st. louis rams return to l.a. in three years. emily: i am emily chang. this is "bloomberg west." no parachute for gopro shares. eyeing a cable company? a company could be a buyer for time warner. i will sit down with one of the founders of google asked to talk about the money back guarantee. tanking as much as

30% in after-hours trading, the stock halted after the close after the company revised its earnings estimates and said it plans to cut 7% of its workforce. the company sees fourth-quarter million and $435 1.6 billion dollars. analysts had expected fourth-quarter revenue close to $510 million. joining me to break down what it .eans, porter bibb in new york ise with me in san francisco cory johnson. what is happening. cory: gopro is not going anywhere. revenue is shrinking. this is supposed to be a growth stock. said this could be the next apple. here is what has

happened. revenue growth for the consistent and the guidance was going to be even higher. what we have seen, suddenly, the company says, fourth quarter, our big quarter, down 31% year over year. laos coming. -- lay offs coming. the ceo sold his shares before any other insiders could. he donated them to a charity that he controls. many companies have been through very challenging times. apple under steve jobs went through a lot of difficulties. did something go wrong with gopro's business model? >> this year, there were two challenges. .here was not a product refresh

the fears and concerns about market size for their hardware product was always there. the hope was that the runway is long enough to enter -- to leverage the brand. emily: they tried to transform themselves into a media company. what do you make of how gopro navigated that transition? porter: they need a lot more than a pair suit because they because a parachute they fire the guy who was running gopro media. they never delivered. and it hardware company is a hardware company with a lot of competition right now and not only did they fire the head of gopro media, they have no marketing director. nick does mend is a not have the sales and marketing

infrastructure and he has to contend with sony, canon, nikon, and half a dozen other competitors. coming up with a drone and virtual reality is never going to do anything to salvage gopro. emily: you do not think a drone could save gopro? cory: it is a camera on a stick and that is all it has ever been . >> the brand strength is there. the competition is intense. --is all going to depend what is the product association going to be? a lot has been said about nick woodman as a founder and a leader. he is very well respected within the industry.

perhaps by cory johnson. he was on bloomberg television recently. take a listen to what he had to say. nick: when we sit down with investors and they understand our vision, it becomes a question of are we the ones to execute? are we the ones to realize that vision? more often than not, people believe that we are our -- that we are. the stock will, and the stock will come down. emily: i did that interview in march of last year and i asked him about the competition. he said, i wake up every morning scared of the competition. i would not be doing my job if i didn't. >> with any kind of hardware, we have always seen this happen. even sony cameras.

if you just look at what he just said, this long-term vision and product cycle, it needs to be faster. the market is moving much faster. they are not moving as fast as they should be. emily: what about the possibility of a sale? apple could be a possible buyer. is that realistic? than 50gopro has fewer patents. apple has just about all of the patents that could allow them to make their own gopro if they wanted to. i do not think a major internet company or hardware company is going to buy them. some of the chinese companies could easily swoop in at around a billion dollars or $1.5 billion. they are a target, but not for

anybody we would normally name as a major player. there is a terrific camera store in manhattan that is been there for 100 years. they have these great cameras. the gopro is their best selling thing. there are 30 different knockoffs of the gopro. gopro might be bringing people to this market, but the other cameras are starting to build more. emily: netflix also had a rough day. rug got pulled out from under the nasdaq. look at the stock chart on netflix. when the nasdaq -- in the york, thein new

successes of last year became the failures of this year. selloff inramatic the last hour or two of the market. the gopro news right after that, it was yelling fire in a crowded theater. emily: carnage. meter, you are sticking with . as we have been discussing, a rough day for u.s. stocks. julie hyman has a closer look. julie: the selling in all three major averages resumed wednesday, but it was notable in the nasdaq were losses exceeded that of the other indices. we saw the nasdaq not only was selloff,- was a steep but a broad one. big cap technology feeling a lot of pain throughout the session.

apple, for example, continuing its march downward. amazon, microsoft, google continuing weakness. on this mother cap side, there is twitter. side,the smaller cap there is twitter. who raised questions about the company's user engagement about its mobile users as well. and then there was the continued selloff in biotech's. that is a theme we have been talking about a lot in 2016. nasdaqlook at the biotech index, not only is it in backr market, if you date to its big on july 20, 2015, it is down by 30%. the selling continues this year. emily: julie hyman in new york.

coming up, apple is a big part of today's tech selloff. the shipping data out of china could be a bright spot for iphone sales. founder joins us to discuss timeless cars, robotics, and his ultimate moonshot. ♪

emily: al jazeera america is in the news, the company will shut down operations in the united states by the end of april. al jazeera launched the network in august of 2013 after spending $500 million to buy current tv.

from the beginning, ratings for a challenge for the network. observers pointed to an already saturated market to cable news. 600 people will lose their jobs as a result of the closure. world's most valuable company, making headlines despite reports of a slow down in iphone sales, new chinese government data reportedly shows sales jumped in china in the fourth quarter of 2015. sales of smartphones made by apple and other surging 34%. apple may be interested in buying time warner as it pushes to set up a streaming video service. joining me out to discuss these guest. is our next bob, i will start with you.

work through this data for me. a couple of weeks ago we heard that production had been cut. bob: this is the big question mark. you have this government agency saying non-android shipments -- in china, there is a lot of android open source, very inexpensive phones. clear up those numbers are being included. 33% jump, let's be honest, that is spectacular. all the supporting data would suggest that does not seem to be the case. is,one thing i will say when the iphone 6 was launched last year in china, it made a huge jump. if they did not have it in there for the entire fourth quarter, it is possible we have an apples to oranges comparison. emily: are you worried about

apple in the first quarter? ib: in the first quarter, think they will do ok. i am more and longer-term. smartphones are starting to peak. apple is going to feel the punch. the other big challenge is iphone 7. iphone 7 should be the model where they do this innovative new design and set of features component suppliers are admitting, things are slowing down. emily: how much more can they do? bob: we are not ready for a whole double screen -- holdable screen yet. the challenge you see is as a result, people are holding onto their phones longer. when you have a mature market and a pretty saturated market,

that extended lifetime means slower sales. emily: let's talk about this report from the new york post about apple being interested in buying time warner cable. this is my favorite story of the day. apple has a $300 million war chest, but time warner cable is very expensive. owns theonsider who new york post. it is rupert murdoch and he is stirring the pot. 2014.e a bid at i do not think news corp. or rupert is doing anything more than stirring the pot. it is not a good deal for 21st century fox for a lot of reasons. they have just about everything that time warner has.

why replicate a news channel, sports channel, movie channel, movie company? those are the assets that time warner has. except for hbo. hbo really should have a valuation much more like netflix than time warner. de. warner has a 16 times pe.lix has a 253 times emily: he does not want to break up the company. you might consider a sale of the entire company. is apple the guy? do not think so. the vast majority of time runners -- time warner's revenue now is based on cable tv

networks. apple wants to make their money through new types of distribution. they want access to content. word on the street is that they are having a hard time. it cannot just have time warner. if they buy time warner, how will the other guys react? intriguingly, it is on one hand, but on the other hand, i do not see -- given the nature of distribution in television content, it will be evolving for a decade. o'donnell, porter bibb, thank you. we will be watching. almost 300,000 patents were granted in the u.s. last year. we will take a look at the next idea is. -- the next big ideas. ♪

emily: amazon is quietly

building what analysts say looks like its own delivery company. one that may someday rival ups or fedex. the e-commerce giant plans to complete its takeover of a french parcel service within three months. staying mum on entering the european parcel market. amazon will open its first clade of data centers in canada this year to cater from demand to companies who do not want their data stored in the u.s. the new data centers will be run in montreal and run by hydropower. --sunn or hedge fund

edison is in the middle of a major shakeup. shares of the company are down nearly -- down more than 86% over the last year. 45% of that just this month. michael bell -- michael dell might be on the verge of making billions more. he stands to gain $4 billion as a government expert to buy back airwaves. he has been buying independent airwaves all across the country. tose stations broadcast -- sell them to wireless operators. cory johnson is back here with

me. what do you make of this story? dell is selling the wrong kind of stuff right now. they are slinging boxes. they are trying to find the kinds of services that will differentiate them. this bifurcated world where you have the cloud service ibm,ders in microsoft and and you have amazon web services. you do not need hardware, we will take care of that for you. dell says just the opposite. -- we will sell you lots of it, a one-stop shop. you can use -- it is a very different approach. all of those companies that do that, hewlett-packard, ibm, cisco is the only one

having any success. saying, we have something else for you. been: michael dell has making some very risky decisions over the last few years. first over taking dell private. the biggest tech takeover ever. now this. cory: he has been out this for a long time. he is trying to protect the assets he has got. he cannot fundamentally walk away from this business. the new business model of cloud services and cloud computing really went soak in town to -- so counter to the selling of equipment. emily: interesting. we will be watching. founder joins us to

discuss cutting-edge education programs and prepping the workforce for self driving cars. we will get an investors view as a major industry conference continues in san francisco this week. ♪

emily: i am emily chang. francisco..m. in san

morning.ood thank you so much. we are expecting another interesting day in the markets here in asia. slumping oil sent stocks tumbling on wall street. the nasdaq had its worst day in over three months. small caps entered a bear market following 22% from their june record. china's central bank slot to to soothe- sought investors nerves. sincengest streak mid-2014. china's biggest travel website will buy a stake in its former competitor.

the two firms for the partnership three months ago, given them 80% of china's online hotel and air ticket market. it thel will make majority shareholder. carmaker beatic sales forecast by 5% last year. beijing is pushing alternative fuel vehicles to combat air pollution. with -- in partnership has deals with alibaba and uber. emily: talk more about this push from china. how is the government making it easier for carmakers to go green? yvonne: for one thing, they are pouring billions into the infrastructure to build these charging stations. for subsidies as well as developmental grants.

int will be helping kandi the long term. they just beat their target last year by 5% or more. alibaba and with uber. very aggressive targets. the chairman says he expects strong momentum in the next years to come. a long way to go, though. out of the 21 million cars sold nationally in china, only 1% were electric vehicles. emily: thank you so much, yvonne, for that update. stepping up its guaranteed to place graduating students in a

job. found, the company will give a refund, 100% of the cost of tuition. udacity has seen 10,000 students enrolled in programs. why add the new degree and the guarantee? thrun. us is sebastian what is the motivation? sebastian: great to see you, emily. we feel the ultimate promise we can give is a job. we want to place people in jobs. many people find jobs. this is the most exciting day in the history of my company. emily: how often do people not get a job in six months? sebastian: most of the people who want to have jobs get jobs.

a good example, android, the beginning salary tends to be $85,000 or more. emily: not strictly engineering and coding. what are the new skills needed in the new batch of graduates? what do employers want? sebastian: strong decision-making skills, strong coding. they also want people who can deal with other people, collaborate. the next generation of jobseekers, they need skills to code self driving cars, virtual reality. how are these skills different

today than what you are looking for when you were just starting google x? starting: when we were google x, facebook was much mother, twitter was much -- facebook was much smaller. twitter was much smaller. today, it is a completely different landscape. fantasticwave of artificial intelligence. there is an amazing demand of people, colleges cannot keep up. emily: you are best known as being the inventor of the self inving car, so much news this industry over the last few months, whether it is a uber, tesla, google partnering with ford, apple.

how do you see this race playing out? sebastian: i am super intrigued and i take a little bit of pride . 10 years ago, people laughed at me. now it is a dominant topic in the automotive industry. smiling, somee educators are cynical. this: what do you make of recent development, we have seen lyft partnering with g.m.. g.m. said we of would see self driving cars first through companies like uber and lyft. do you think ridesharing companies may be the first real implementation?

sebastian: i believe that is the case. do not discount google in that discussion. technology-wise, the best ones drive better than people. i am not a good driver, but i am not that bad of a driver. service, youn as a get a scale that is very different than owned cars. they produce costs by sitting in the garage. cost is about a quarter of the amount for a driven car. emily: do you see google cars being part of a ridesharing program?

sergey brin has made it clear that google's intention is to offer transportation as a service. it is a great model. imagine downtown san francisco having a lot of empty parking spaces. car was yourriving original moonshot. the first one we know about. you have moved on to education. successful, what changes about the world? sebastian: it will truly democratize education. it should be a first amendment kind of right. it is so uneven. we talk about stanford and harvard as the best places to

educate, but almost nobody can get in. i think education is the empowering thing. if you catch a man a fish, he has dinner for night. if you teach a man to fish, he has dinner for the rest of his life. , as always,tian great to have you on the show. out, watson.tch ibm takes the crown for the most u.s. patents for the 23rd year in a row. we will take a look at the next big ideas in technology. ♪

emily: ibm has received the most u.s. patents in 2015 for the 23rd consecutive year. coming in first in front of samsung, google, and sony. does quantity translate into quality? joining me from new york is bernie myers. how are you using these patents? instance, we have , we used tow era talk about memory, the reality is, information technology is an assistant technology and these patents support that. we have patents that look at the issue of can i help somebody who

has alzheimer's complete a phrase when they get lost? this is an issue. we get results out of taking watson even further into the future. when it speaks, it has to be emotive. if a building is on fire, you do not want it to say, run for the exits. you wanted to say, run! we started working on them many years ago. now they are seeing the light of day as a product. emily: there is a quantity versus quality question here. bernie: the truth of the matter is, i would debate whether or not it is an issue of quality. if you look at the patents we have, many of them tend to be foundational.

these are at the leading edge of an emerging technology. 2015, patent is issued in it may have been filed in 2011, 2012, and it may have been worked on five years prior before people really got to a result they would patent. it is not a question of quantity. it is one of quality. some of them are striking. a narrow computer where we address the issue -- a narrow computer where we address the issue of power. it reduced the power consumption by a a power of 10,000. that is a breakthrough. emily: what is your strategy going into 2016? it takes a lot of time. do not have time to

pursue all of the patents. how much of a priority is this for you? it is well known around the world by our employees, leaders, technical community that ibm has to have several things. we want to define the future, not be a victim of it. you have to reinvent yourself constantly. you cannot reinvent yourself until you know what the future holds. you must have freedom of action. there is an entire body of folks who would love to stand out the door and say, i will not let you take that to market. you want to be absolutely sure the things you are going to market with, you have covered fully with your patent portfolio. there are many reasons for having that portfolio in terms of leadership and business acumen. emily: some have argued that

patents can slow down innovation. bernie: to be quite frank, if misused, i agree with them. at the point that there were folks using patents to slow down the open source movement, we donated 500 of our key patents to the open source movement to provide air cover. we practice reasonable and nondiscriminatory licensing. you want to ensure y have freedom of action and those who take advantage of the work you have done pay some equitable payout. not something that block them from further innovating. emily: bernie meyerson, thank you so much. we will be watching to see if you are on the top of the list in 2016. the most cutting-edge innovations in biotech showcase at a major industry conference

here in san francisco this week. our steep declines in biotech stock -- are steep declines in theech stocks hurting industry? " is next.mberg west ♪

emily: the jpmorgan health care conference has been underway in san francisco this week. it is one of the most important conferences of the year for this industry with 300 companies presenting to more than 4000 investors. it is usually a week of optimism, investors cannot ignore the sea of red as biotech

stocks get off to the worst start in trading in years. third rock partner joins me now to discuss whether public market sentiment is spilling over into private funding. it has been a bad start to the year with a lot of companies. >> it is ugly. a lot of the fundamentals are very strong and great. it is a great conference except for all of that red. biotech is cyclical. it has a lot of volatility. this has happened before. moved over to it the private market?

alexis: people are still very encouraged about the future. at the moment, this has not spilled over. if this becomes a longer period of time -- emily: what are the most exciting areas of biotech innovation right now? alexis: there are multiple areas. a great time in science and innovation. amino in college he is one we use-- oncology is where we your own immune system. emily: curing cancer could happen soon? cancer is for a complex, so i do not want to overstate.

what else? alexis: molecular information. in diseases, we can read your programming code and figure out what is wrong with you. using that information, we can match things up so that the physician can say ok, what is the right drug for you? it sounds easy, but it is like -- how do you get the right drug to the right patient when you have read the personal genome of that patient? hopefully,sive, but that is worthwhile. emily: what about gene editing?

alexis: we are not doing that. emily: others are. alexis: but others are. using gene editing for grievous disease, we can read the genome of a sick child and figure out what is wrong. the whole promise is to create -- we can reprogram that programming code. emily: what do you make of some of the consultation and big pharma -- consolidation of big pharma right now? alexis: we focus on innovation. big pharma always has a hunger for that. sometimes they will do financial engineering, cost-saving. to get theg hunger new breakthroughs.

emily: we talk a lot about the potential bubble in the consumer tech markets. what is happening in the biotech private market? is there something similar? alexis: biotech has gone through some spectacularly strong years. these are relatively strong markets for biotech. there has been a lot of capital, valuations being pushed up. if we have some type of correction, it is not necessarily a bad thing in the long term. anos comes to mind. emily: i am a very -- alexis: i am a very empirical person. emily: do you think that situation could impact enthusiasm for biotech?

alexis: biotech works best when we actually deliver the goods. there has been some crossover from our silicon valley investors. sometimes that makes things fundamentally better. we have had google as investors, kleiner perkins, bill gates. itt they bring to the table, makes those companies better. --etimes, when there have sometimes maybe a little bit of correction is not a bad thing. emily: 2016 will be the year of what? hopefully, this red ink is relatively short. emily: i will take it.

us.k you for joining you do not seeng every day. a san francisco inventor has taken to kickstarter to build custom delorean hovercrafts. isn't that cool? you can see him test driving here. he hopes to sell his creation for 120,000. flux capacitor not included. i want to give you a quick look at what is going on with gopro. shares are way down. that does it for "bloomberg west " today. we will be back tomorrow. ♪

>> from our studios in new york city, charlie rose. rose: we're live this evening. president barack obama delivered his final state of the union address. tonight was less about the past and the future. president obama: let's talk about the future.