the islamic state has claimed responsibility for the worst terror attack in indonesia since 2009. indonesia's president has called abovehe country to rise acts of terror. meanwhile, turkey says it has struck back against the islamic state in retaliation for the suicide bombing istanbul. turkish tanks and artillery attacked islam it states -- attacked the islamic state said iraq and syria. a teacher has been charged with involuntary manslaughter. two students were killed in an avalanche in the french alps. the ukrainian skier, who was not part of the group, was also killed. in the u.s., a federal judge granted a release of a new surveillance video showing a white chicago police officer fatally shooting a black teenager suspected in a carjacking. the footage was released by attorneys representing the family of 17-year-old cedric chapman.

of flint,an city where the water supply is undrinkable because of high levels of lead, is now dealing with a spike in cases of legionnaires disease. officials say 10 people and died since the city started taking water from the flint river. that is our first word news. ♪ emily: i'm emily chang and this is "bloomberg west." coming up, intel shares sliding after hours. the company is warning about first-quarter sales. to the future. qualcomm ships returning to samsung smartphones just a year after the south korean phone giant asked them. and riding on a cloud. we sat down with a man who runs india's largest -- one of india's largest conglomerates to talk about their electric

scooter. a spin.ke it for first, to our lead. intel shares sliding more than 4%. company reported better-than-expected fourth-quarter earnings, but it is worried about sales and margins in the current quarter. joining me now, our editor at large, cory johnson. also joining us, the editor of bloomberg intelligence. they just reported the worst levels since 2007. how is that reflected in the intel numbers? intel is only down 1% in pcs. if they are the biggest supplier to the market, and it is the biggest part of their business, and they are only down 1% when the market is down 10%, i'm going to call that success. it's like hitting 40 home runs for a last-place team.

they are in the pc business, yes. it is also a big improvement over the last two quarters. they are gaining market share and doing the best they can in a crummy industry. i will call that a success. emily: would you agree? absolutely. one of the things they have been able to do is upsell the chips that going to pcs. if you look at their pc division's average selling price, it has been steadily taking up. up.icking despite poor value in desktops and notebooks, they have been able to sell the higher end chip versus the lower end. they are also pivoting hard into the data center away from pcs. data center chips account for 50 plus percent of their operating they accountthough for 25% or so of sales.

that is a big transformation underway at intel. one thing that is remarkable is that -10% pcs and they can still still stagger the growth of their topline? that is pretty substantial. emily: and at the same time, the cloud business in general is undergoing a huge change. cory,, you talked to -- you talked to the ceo earlier. cory: they see this as change. ishink the slowdown of pcs even more aggressive than they expected. they positioned themselves to benefit as the changes happened, but also to go forward with the data center. listen to what stacy smith had to say about the big changes they went through this year. to theas a strong finish year. when you get under the hood, you can really see the transformation.

we offset some weakness in the pc segment of the market. is transformative for us. emily: but what about the warning about next quarter? cory: i think it is more about setting expectations in a certain place. they are going through big transitions in terms of new plants, new facilities. there was a lot of talk on the conference call about in the changes are going to happen and what they will mean. that has an effect on gross margins. expectations got ahead of the analysts. these guys are talking gross margins of about 63% for the year, which would be good for these guys historically. they are sometimes below 60%. if they are guiding towards 63%, that is pretty good news. emily: intel's ceo just addressed this on the call, highlighting china in particular. >> outlook in the first quarter reflects some caution about overall demand, particularly in

china. we continue to expect solid growth in the business in 2016. cory: and when you listen to that, are you hearing that they are talking about new markets, or is what he is really talking about is keeping where they are in staying steady where pcs are being made? guest: one of the things they talked about on the call was that 2016 is similar to 2015. if you looked at 2015, q2, 23, and q4 were, significantly of. and when you look at the pcs, the exact thing happened in q1 of last year as well. let's not get ahead of ourselves. this is a great structural change underway. make sure to keep your eye on the big picture, which is the data center shift. toefully they will be able hit sales growth with decent margins. emily: lastly, i want to

into them making chips for devices. how is that going so far? cory: the numbers are good. they throw a lot of things into the internet. the numbers look good for this quarter and the year. brian has this vision of a world full of chips. with actual processing happening on lots of devices. they think they're manufacturing capacity will let them make cheaper, powerful, smarter chips that other competitors can't make. they want to slow the market with the chips that will take up this data and the computation behind it in the cloud and data center that will begin to understand this data. i spoke with the head of america for general motors. the gm guy said, imagine if we had windshield wipers that would tell the cloud -- unintentional pun -- when they are being used, we would have more real-time

data of when customers turn on when children first. that takes a lot of data on the backend. dream.as the same he is trying to build both ins of that barbell, the computation power on the end to pick that up, and the nasa competition on the backend to understand that. -- massive competition on the backend to understand that. emily: thank you both so much. a new direction for foursquare. the startup is announcing a new million funding round as it looks to kickstart growth. founder dennis crowley is checking out as ceo, becoming executive chairman, while former coo jeff gleick replaces him. crowley,ccording to who revealed the move in an energy today.

reshuffling did not stop there. steve rosenblatt becomes the new company president and will act gleick's copilot. coming up, who is crazy enough to buy gopro? the whole company, not just one camera. get three reasons why. also, the latest push to give voters access to presidential candidates. ♪

emily: now to the nosedive we

have seen in gopro stocks since wednesday. there are new to investor concerns that gopro is a one trick pony. but you know what they say about one man's trash. that might be a little extreme. still, in december, gopro was put on my list of potential acquisitions for apple. the analyst behind that note is daniel lives. he is with us from new york to explain. daniel, you are an apple analyst, not a gopro analyst. i have been asking people what they think about your suggestion, and everybody is would -- telling me apple never buy gopro. what do you think has happened. guest: you have to take a step back in this market. you are seeing a lot of one trick ponies in gopro and fitbit. there will be more where there are clearly winners and losers. in terms of apple for gopro, it is really more around the virtual-reality capabilities. going from ahen

content perspective and really from an action-based camera. able tos not been monetize it at the level that investors expected, but when you put it in apples echo system, it -- a potential fit their apple's ecosystem, it has a potential fit. this is definitely more of a far reach, but you have to put it in these per -- in the spectrum of potential apple releases. you don't just think apple would buy gopro, you also suggest potentially netflix, fitbit, box, tesla. really? guest: yeah, cory and i have talked about it before. this is not within apple's typical playbook. the biggest thing they have bought is $3 billion. but now it is, chop your waters. they will have to navigate outside of the smartphone. on the consumer side, there is building pressure for them to use to it are billion dollars

plus to expand -- to use to it are billion dollars plot -- $200 plus to expand the market. netflix, it's not typically in the playbook, but 2016 will be a year of a lot of changes for apple. the most important thing is with m&a. they will have to navigate where they have not previously gone before. emily: apple has never made an acquisition more than $3 billion, and that was beats, their biggest by far. time warner cable, you are looking at $78 billion. do you think that is possible? guest: i think if you look at potentially what is going on there, i think that is where everything is on the table for apple right now. emily: let's dig in to gopro specifically. what does gopro have that apple would want?

why couldn't apple just make its own camera? it, ifi think part of you think about smartphone markets and what the different is,n -- the differentiation it has been around the cameras, enhancements. it is from the camera from an action-based perspective, from the content, from the intellectual property, as well as from some of the virtual theyty in terms of where are going. gopro is a one trick pony, we saw that last night, and that's not really the issue. the issue is, is their technology here that apple could acquire, put it into its ecosystem, which would be a step in the right direction? that is why as an investor, it is a blank sheet of paper in terms of apple's direction. this is one of those potential candidates i think apple needs to look at. emily: interesting. daniel, i appreciate you being bold with some of these productions. daniel ives, fdr managing

director. always great to have you. turning to europe, the eu's executive arm is trying to solve the conflict between regulators and sharing economies like uber and airbnb, all in the name of boosting gdp. bloombergs caroline hyde reports. reporter: it is likely to be music to the sharing economies ears. they may be looking to ease the conflicts that when companies such as airbnb -- between companies such as airbnb and uber and regulators, with them offering hindering growth and banning software entirely. the u.n. commission is planning to have discussions with its 28 member states to explore how the national rules may not only be going against eu law, but crucially showing -- slowing the region's growth potential. bloomberg was told today that it is the cheapest way to

strengthen the economy. the commission's own research suggests that removing such barriers could used the economy 1.8%, which is a lot. helpis would not only uber. accelerateso help the growth in some of the local startups, like castle.com. -- hassle.com. in fact, the eu thinks it could help many businesses start accessing customers in other countries, and help 17 million europeans make cross-border purchases. this is part of the use broad market strategies, part of a long to-do list. as one key tech investor a spoke to told me, it looks to him like thatpossible task, given

each country has its own legislative body. and it is impossible to get the separate states in the u.s. to harmonize laws with these companies, let alone independent nations in europe. but the fact that discussions may soon be happening means that many in the sharing economy may be sharing optimism today. act to you, emily. emily: bloombergs caroline hyde in london. coming up, with the presidential race kicking in high gear, what if you could get all of your questions answered by the candidates themselves? i am talking about a new platform from change.org that lets you do just that. ♪

emily: samsung is returning to

its former chip supplier. they will once again use qualcomm's most powerful chips in its new high-end phone, the s.t galaxy samsung walked away from qualcomm. winning back some of its business is an indication. the processor was not chosen for the galaxy models last year. it is time now for some politicking, -- poli-t ech-ing, where politics and technology emerge. have you ever wanted to ask a candidate a question, but cannot make it to a town hall? now you can. change.org submitted a new platform where users can submit questions and easily find endorsements from the people and organizations they trust, creating a ballot guide to use at the polls. joining me is change.org's

founder and ceo. great to have you back on the show. pretty much all the presidential candidates with the exception of donald trump have signed up to answer questions on change politics. but what is the motivation? how did you come up with this idea? guest: the underlying realization is that we now have an incredibly broken user experience in voting. people are subjected to an incredible amount of information about the horse race, about nots, and paid ads and do get the information they need, and they walk into the ballot booth, they look at their ballot, it has dozens of offices. most people have no idea who these people are. that is the basis upon which we are basing our votes for democracy, and we think there is a better way. emily: candidates have facebook, twitter, snapchat, town halls, how did you convince them to join? most important to individuals is direct communication with voters. is identifynt to do

the information that people in those states care most about. we are partnering with "the des moines register" to crowd source questions from islands -- from islands -- iowans. andre able to crowd source identify the things that are most of interest to real voters, and that is what candidates care about most. -- whyso why has not hasn't trump signed on, and what are you doing to convince him? we are seeing more and candidates now come on, so we think we will have almost everyone. but what we do think we are showing is that citizens can now help define the agenda of things about, anding talked not just subject to what the mainstream media or candidates want to tell them. emily: but trump is trump. how are you going to get him? like: frankly, somebody

trump, who likes provocative questions and gives provocative answers, will want to adopt this platform as well. we think the more communication directly from citizens and people online to actual candidates is a good thing, and we expect to engage in his candidacy as well as others in the coming weeks. one change.org petition asks for nbc2 end its relationship with trump about aboutntroversial remarks immigrants. how much influence do you think change is going to have on this presidential election? guest: what we have seen over the past few years is this map mobilization in the u.s.. more than 30 million people using change.org to influence policy between elections. that represents a significant percentage of the population for elections themselves. most elections are defined by 1% or 2% in the most effective

campaigns, and we will have far more of that percentage of people using change.org politics themselves. emily: and i know change is now about aa lot of buzz petition asking president obama and the governor of wisconsin to pardon the subjects of a netflix documentary series, accused of a murder in wisconsin. these petitions have been getting a lot of attention. where is the momentum here? guest: the things that take off the most on change.org are rooted in personal stories, things that resonate. we are seeing that as things come up in the media, documentaries, and movies, people will use change.org to try to change real things in the world, and president obama just responded to the campaign last week on change.org, engaging citizens around this issue of potentially false incarceration. emily: i believe the president and the white house said they cannot pardon a free and

particular week is the case is not federal, but governor walker could. that is something we will certainly be watching. the ceo and founder of change.org with the launch of change politics today. thanks, ben. coming up, the so-called tesla of scooters. why an indian car manufacturer just unveiled a $3000 electric scooter here in the bay area. i take it out for a test drive. numbers are out for venture capital funding, and the results paint a grim picture. we will discuss why investors are chasing fewer, but larger deals this year. ♪

emily: i'm emily chang. this is bloomberg west. 7:30 friday morning in hong kong . a look at the stories making

headlines in asia. >> good morning. we will watch the markets in asia this morning. on the final trading day of a volatile week. back to the, climb selloff as oil climbed above $31. s&p 500 gained the most in almost six weeks. equities drove the rebound. retreated.s and worries about china have pushed chances of recession to their highest for 2.5 years according to a bloomberg survey. that is the highest since june 2015. it finished the day higher in new york after raising its annual sales growth outlook. third-quarter net income met

india's second-largest software exporter. beating estimates of $498 million. they were predicting sales growth of more than 9%. consumers aren't as keen as they were on the latest smartphones. that is having an impact on chipmakers. a prolonged down turn in the sector. revenue will fall. they are no longer sticking to the 2014 forecast of five years of 10% annual growth. emily: we were talking about intel earlier. earnings not so bad despite a major slowdown in pc sales. china is singled out as a market where they are worried about a slow down and demand.

what is it looking like? it is a dim outlook. take a look at the sales forecast. expecting for 8% sales growth, they make chips for apple iphone but that growth is seen as the slowest in five years. net income fell 9% which was not beat. sales falling 14% in u.s. dollars served. he expects a recovery as soon as next quarter. the reduction in high-end smartphones could be offset by a recovery in china. emily: thank you. now to a new way to beat the traffic blues. launched anup has

electric bike weighing 230 pounds, lighter and easier to motorized twost wheelers, and the first cloud connected scooter. where was it launch? you might be surprised. as prices skyrocket tech is uber iso open where opening new headquarters. >> we make small airplanes. we make boats and buses. our core competency is cars. guest: you are launching a scooter for the first time in the bay area. >> yes. the two places that we looked and said here is the problem. we have to solve this problem. cloud it is electric, connected and sells for $3000.

the reduction lines can pump out a new one every 30 minutes. i have never ridden a scooter before or motorcycle. i'm slightly terrified but i'm going to give it a go. >> it is a neutral mode. we move it to forward. it shows your battery status and range, your speed. you are in safe mode. it is going to be lower acceleration. if something goes terribly wrong should i hit the kill switch? >> no. i would just use the break. emily: all right. test run complete. let's do this for real. shredding.

they are hoping millennials will take notice and will lease the bikes to scooter sharing programs. they are aiming for cool. that.expect we think this is a tesla scooter . >> it is like riding a bicycle quite literally. sure i would call it the tesla of scooters but i would do it again. >> obviously i survived. i sat down with the chairman and managing director of mahendra. i asked him why he decided to launch this in the united states instead of india. >> getting into two wheelers, as we analyze this we saw the two wheeler business changing from simply being something that would be sold in dozens in emerging markets to returning as a mode of transport in advanced

countries because of climate change. people wanted a return to community living. we said ok. we will make a global scooter. you decide where do i do a global scooter russian mark if it's going to be cutting edge. there are two reasons we decided to do it here. what's the best place to design a scooter? california. one of the world's capitals of good design. when you leverage the ecosystem , thein building brand here rest of the world notices. california is a world stage for technology products. we didn't want this to be something cheap out of india. we are saying we wanted to make something cutting-edge and to make the world sit up and take notice. 21st centuryl product.

emily: if i am a young millennial wild while a by a scooter? >> that is true. the point is when you want to have your own discretion of transport but you don't use a scooter because you can't put -- personal junk in it, she would not use this. she would need a fleet of suvs. someone with a reasonable pair of shoes would use this. we are not really saying this is for millennials. we are seeing senior citizens may be a bigger market for this. ,hen you go to sharing network then the millennial sees this and says here is an electric scooter which i can use and rent . particularly when it comes with

a solar charging devise. emily: you are testing an suv in detroit. what is the vision? >> we have been in manufacturing, utility vehicles since the late 1950's. that is one of our largest businesses. seller of dominant suvs in india. we continue to do well. as you may know by now we like to think differently. we like take think counterintuitively. there was an article in a paper a couple of days ago talking about how they are not outsourcing anymore. that is where we felt we were tapping into a huge pool of know-how. best?kes minivans the we want hundred people here designing them. , i have been a qs

many times of being unfocused and all over the place. when warren buffett says that is the best way to be organized, to be multi-business, then world notices and knows that is right. or when google turns into alphabet. emily: you compare it to apple that? >> we have been doing this since 1991. we have been following the structure. so the company acts in the sense like a proactive investor. we have separate units, very focused, all listed to satisfy wall street analysts and the automotive legacy business runs well on its own. this is a new age business. emily: you pioneered the model. guest: you said it, i didn't. emily: we have seen gm partner

and her from the ceo of nissan saying he would never do that. i would he help a company like uber or lyft? do you think of them as a threat to your business? guest: i was quoted in india and said it lunch, where i was talking generally about the industry. the auto industry has to recognize car sharing companies are going to transform the industry. they're going to reduce the volume. if they succeed the volumes of cars that people have, is that a threat? not really. it means you have to shift your gears and do one of two things. build a portfolio which these people would have to buy. cars,st cars, autonomous and admit we have a portfolio that does that. cars withove to very

character. if the millennial buys a car, when they can afford, they're not wanted by a bland car. they're going to buy something with character and style. where the cars says you have to buy me. i think the car industry is going to get organized. i don't mean bringing cars but cars with great personality and customization, and individualism. you have the bread and butter cars. you don't really ask for which car. you just ask for a new car. emily: if you are a backseat customer it doesn't matter as much. what do you think of tesla? guest: i have huge respect. he -- i shot the breeze with him. he is a disarming man. he was interesting. i told him these batteries have

a much greater invaluable application in india. why don't you look there. he said my problem is not where to sell these. my problem is building the factory. he is quite charming. how many cars do you build. over half a million. he said i just built 15,000. i have a small company. i am a small company and i'm learning how to scale up. i respected him. given the kind of brand he has built for himself, that kind of humility which i think was genuine, and brutal honesty about himself and the company was very admirer bull. emily: how do you like your apple watch? >> somebody was joking that it creates one more problem, one more devise to charge. they have to solve that problem making it easier to do that. it, my wife bought

asked me why you wearing this? freeze me from the tyranny of having someone judgment by the watch i wear. emily: i didn't realize they were to radical. guest: of course they are. i challenge anyone to define me simply by the watch i wear. i think that is a wonderful act of liberation. emily: he proceeded to judge me based on the watch i was wearing. mahindra.an of less capital in fewer funds. the recent slowdown in tech funding in our recent segment coming up, and we leave you with a look at one stop we are watching, best buy tumbling the most in a year. consumers not shopping for electronics over the holidays. more next. ♪

emily: let's get a check on market action in the united states. all 10 of the s&p 500 main industries are positive thursday. abigail doolittle reports from the nasdaq. >> we had a wild trading session. stocks were down early in trading holy to pare losses midmorning, climb throughout the day and finished sharply higher. the nasdaq composite finished up 1.9%. taking a look at those big tex names including amazon and facebook, perhaps a bit of a relief to all of the selling.

each of these tech stocks are down 4% year to date. amazon is down 12% year to date on a lack of any substantial news. perhaps a bit of the big winners from last year mentality. ,urning back to positive news microsoft was upgraded at morgan stanley to an over way -- they like the presence in the cloud and the durable office franchise. apple, there was positive news coming out on this name. and phone sales may have risen by 33% in the last quarter of 2015, contrary to the negative amounts of the iphone. we will know more when the company reports later this month. weeklynow to our

segment, start them up. we discussed the latest venture capital world of startups. there is a slowdown in tech funding. the sea firms raised less money and closed fewer u.s. funds in 2015. $28.2 billion. only 235 funds closed last year. discuss,e now to lissette chapman who just joined. it is a first for both of you on the show. thank yo work through the numbers a little bit. what are we seeing? guest. we're seeing a come down. it is important as you can see from that chart, it is all over the place. cycles are long. we have the 2015 numbers that

show it is dipping down a little bit. are you feeling these things that revolution? >> particularly for funds there is a long lead time. they make their bets and there are a lot of funds. it they can pull back and in the following year. in terms of backing companies there has been a slowdown. we didn't do much investing because we saw the markets as overheated in deals getting competitive. emily: what do make of the fact that fewer funds even close? >> there are going to be fewer choices looking for funding. emily: and you have vcs chasing fewer but bigger deals. we are seeing mega rounds like uber. >> i think that highlights the fact that no matter how work is

performing, great companies are going to be created and funded. >> i would like to add, it is not just vcs. it is other companies that we have seen, huge late stage rounds. all of the other atypical vcs stepping up and saying i want in on this. emily: the same time you are announcing your largest investment to date, and insurance technology startup, explain what this does and why you thought it was worth putting such a big bet on. 3 we back companies attacking legacy industries, applying technology to disrupt them. we view insurance as a massive opportunity. a lot of work has been done bringing insurance online and auto. we think the long-term disability, it is not online.

you have to go through an agent. that is not what consumers want. we have backed a team that has a lot of regulatory knowledge. you need those industry chops to approach it. it helps men form what they are buying and what they don't need so that it is not a spam kind of feel. it helps the apply for insurance and gets them through the sales process and provides them with a monitor to their policies. emily: we've seen a mini explosion in insurance technologies. why is that? guest: the regulatory landscape isn't as complicated. when you think about insurance, if you're buying into a policy you need to know they are going to be around for a long time.

you don't want to buy a life insurance policy and ago out of business because it is a startup. that is the reason why the landscape is so tight on insurance. that is taking a longer time to disrupt the market. emily: as you said at the beginning, what happens is cyclical. what are we looking at for this year? what are investors expecting? >> from the people who back them, it would mean for the startups there is some air coming out of them. it news. what we see with the 2015 numbers is confirmation there'll be a tougher environment going forward. >> we are excited about next year. we didn't apply much because of those dynamics. we are excited about the opportunity to come. emily: all right. thank you for joining us. our new vc reporter, thank you

both. now, news of david bowie's passing, millions of fans mourned by seeking his music videos online. on vevo they set a new record. his clip drew 51 million views in a single day january 11. a dell held the record with her hello video. 1800% onms increased that day from his average. 2800%.ify they spiked while apple doesn't break out individual numbers he represents six of the top 10 albums selling on itunes. we'll be right back. ♪

emily: the results of a closely watched competition for resupplying the international space station.

will split the bid for unmanned missions, hauling cargo to 220 miles above the surface of the earth. the deal covers a seven-year stretch. who lost? boeing and lockheed martin. they have been working to foster commercial missions while congress tries to end a u.s. dependence on imported rocket engines. that does it for this edition of bloomberg west. tomorrow, our guest host is always entertaining. ♪ we live in a pick and choose world.

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>> from our studios in new york, this is "charlie rose." we begin with politics. much talk about the republicans, but the race for the democratic nomination has intensified. senator bernie sanders said hillary clinton's criticism of his stance on gun control and health care signals her campaign is in trouble. he took the lead in new hampshire according to an nbc poll. he is closing the gap in iowa. thrush.me now is glenn