with an update of the top stories. a sharp sure -- a sharp surge. there is a rescue plan by taiwan foxconn technology. that would be a surprise for the japanese. they have denied that they have opted for foxconn's bid. a full-year forecast for the commodity market. cheap oil and is selloff of u.s. credit.

sources say that jefferies group cut numbers at its income meeting. focusing on products and mortgages. because of the energy well, some of those cuts earned bonuses last week. those of the headlines from bloomberg news. let's take a look out the asia-pacific is looking right now. during the lunch break, this is how other markets are trading right now. shanghai is up half a percent. time for bloomberg west. coming up, we hear directly from mercer mayer about yahoo. i ask her about her turnarounds strategy and whether the company is up for sale.

gopro is thinking again. back? it get its mojo is a changing of the guard. biggest challenges for the successor of nbc. first to the lead, gopro shares plunged in extended trading. investors focused on the sales guidance coming in way below estimates. first-quarter revenue between $160 million and 180 million dollars compared to 287 minute -- dollars and estimates. million the company is also playing the cfo with ryan mcgee from qualcomm. it slashed the price twice since

its debut in july. what is next for the company to do? joining us is bob mcdonnell. thank you for joining us. what went so wrong at gopro? >> the problem you've got is this is a company that's been trying to promote themselves originally as a media company and as a bigger vision player. people have recognized it's a hardware company that has an audience that quite frankly is somewhat limited. we pretty much have what we need, and this is the reality they are starting to face. emily: let's listen to nick woodman on the call just moments ago talking about the competition. take a listen. >> in several respects, business is good. however, our growth rate has slowed as some analysts have

attributed this to competitive threats and the ability to address a market beyond our core customer. that is not how we see it. emily: if that's not the reason, if it's not competition, what is? >> i'm not sure he is acknowledging reality. there absolutely is competition. there are many other vendors who are producing these action cameras and there is a limited number of people who want action cameras. the bigger question for me is, as they move forward into things like potential virtual reality cameras, what about moving beyond just action cams into virtual or digital travel, or new kinds of areas? that would be interesting, but i'm not hearing gopro talk about those as potential growth opportunities. emily: let's bring in a guest whose company rents these cameras.

what is the trend you are seeing? >> there's a segment of the audience that loves the gopro. adventurers, backpackers, hikers, people who are looking for capturing the moments that are happening as they travel. gopro has worked out great, but the newer product started out at $400, the same price the original gopro, but it's a smaller one, not as powerful, so it just did not resonate with the audience. it seemed more gimmicky and cheaper, but for the same price. no one really bought it. and then they slashed it to half the price, $200. we had pushed back with

customers who had no reason to go get the second one. gopro has a really strong brand, but their latest product has not been as satisfying as the initial strong product lineup that came up with. emily: is it too hard to use, was it because of all the competition? >> it is harder to use than the original gopro. they were always good at the instant gratification. if you took a snowboarding video and you saw it immediately, and the second one is lacking. there are so many new products that are exactly like the gopro for half or one fourth the price. some are even better than the gopro so it's really hard for them to fend off the competition by just the marketing and branding they are doing.

emily: bob, what will investors take away from this? bob: they did pick up a little bit after the after-hours drop. emily: but hopefully, for the broader market, there were so much enthusiasm about this company, and look at what is happening now. bob: they positioned the company as a media company. that gets different multiples than a hardware company. now people realize it is a hardware company and it will face a more challenging environment from a competitive perspective. it will be tough on investors for gopro. emily: so you don't think any hardware company like fitbit will go public again? bob: i don't think so. with all this with apple and smartphone. we are entering an era where we

will see a lot of the categories that have been established are pretty saturated and we will see new areas like with drones and hoverboards and things like that. but none of them will reach the same kind of levels we've seen with the other product categories. there has to be a reflection of that reality. >> there were 50 plus drone companies in just one floor of the showcase. even for the things gopro is trying to come up with, there are so many drones before the gopro drone releasing in march. you look at companies coming in from china, they don't have the kind of marketing are branding that gopro has. they don't spend a lot so they can focus on production and just

getting it over here. it's a tough market for gopro to just keep focusing on hardware, to be able to sustain themselves in a public market. emily: shares crashing right now, we will be watching how they open next week. thanks so much for joining us. we have some m&a in the works. according to people familiar with the matter, they say discussions taking place between advisors of lions gate and starz and they are moving forward. the company reports earnings thursday. speaking of deals, cisco says it will acquire jasper technologies for $1.4 billion, boosting state --stake in the growing

market. as part of the acquisition, jasper's ceo will join cisco to run a new software unit. turning to the broader markets, u.s. stocks rallying in afternoon trade thanks to gains in the energy sector. here is the rap from new york. >> despite a late afternoon rally, the nasdaq cannot break into positive territory. the s&p and the dow did make it into the green by the end of trade. that was their first gain for this month. google fell more than 4%. it's long time search chief is retiring, reversing gains from the day before after better-than-expected earnings. amazon is back in a bear market. they plan to spend money on opening 400 bookstores, putting barnes & noble stock into a tailspin.

major pc makers also slid on wednesday. a contraction of 6% year on year versus a prior contraction of 2% on chronically weak demand and a rising in inventories. apple rose in late trading, reclaiming its title as the world's biggest company with the market cap of $534 billion. 34 s&p companies report earnings thursday including netgear and linkedin. emily: later this hour you will want to stick around for this. my conversation with yahoo! ceo marissa mayer as the company puts out the for sale sign. then we dig into changes that cbs, chairman sumner redstone is stepping down.

♪ . ♪ emily: two gaming stocks both

surging after the bell. a stronger forecast than analysts had projected. investors also liking what glu had to say. the company announcing a new addition to its celebrity lineup, taylor swift. cbs chairman sumner redstone is stepping down and les moonves will take his place. he will also remain the company's president and ceo. redstone's daughter sherry was offered a nonexecutive role but she declined it. she will be vice chair.

lucas, what is your read on this? lucas: a couple of things. one that this is just a vote of confidence for les moonves. he has said for some time that all things are going well at cbs when you consider the broader media environment has taken a beating where viacom has dropped the most and there have been a lot of complaints about the leadership. the bigger question is to what happens there. there will be a board meeting with the viacom board tomorrow to decide what happens with the chairman role. there's a lot of speculation that sumner will lead and somebody else will get amped up. emily: shareholders already coming out saying not to point

-- not to appoint moonves. what do you make of that? >> so did sherry redstone, she issued a statement saying she didn't think anyone who is a trustee should also be the chairman of viacom. that would disqualify both sherry and philippe. what it all comes down to tomorrow is who has the votes on the board. the board of directors will decide who is the next chairman. if philippe has enough people loyal to him, then he can stay. it's hard to know until you know the loyalties of these different people. emily: how much actually changes? >> not much with cbs. any time i had to write a story in the past few months or years about the whole succession at cbs, they try to say les is in control, the board likes what he

is doing, so leave us out of all the lighting and let it continue at viacom that seems to be what happened here. les moonves is running that company and he will as long as he wants to. his contract runs through 2019. emily: thank you so much, lucas. ending years of speculations about what happens that cbs. now to a story we are geeking out on. by 2020, more people will own a phone than have electricity. in four years, 5.4 people have a phone globally. by comparison, 5.3 billion people will have electricity, 3.5 billion will have running billion cars will be on the road. coming up, google says goodbye to the brain behind its iconic search engine. we take a look at his successor and the next generation of product development. take a look at this aerial view of apples future headquarters in cupertino, california.

the project began in 2012 and will wrap up next year. the new facility will house 12,000 workers and cover 2.8 million square feet. ♪

emily: a stock we are watching begin trading in the first ipo of 2016. after pricing at the low end of the range, it's the first publicly traded company specializing in a controversial medicine technique called crisper, which is said to have the potential to treat autoimmune disorders with a one-time treatment. a longtime google executive announced today he's planning to

retire and spend more time on philanthropic work. he introduced new features like text prediction, tweaking the algorithm to favor mobile. he acknowledged those milestones in a blog post, saying who would have imagined that in a short 15 years you could tap a button, ask google anything, and get an answer. today it has become second nature to us. my dream star trek computer is becoming a reality. >> i want to bring in jack clark who covers google for us and danny sullivan. thanks so much for being here. i love your tweet from earlier today where you said imagine him leaving apple, explain to us how

powerful his impact on the google that we all use today is. >> he has been the force that has guided google search over these 15 years. he's the person who took the original recipe that larry and sergei cooked up when they founded google, turned it into -- i don't think people tend to think about search engines and google the way that think about the latest and greatest smartphones coming out, but that's effectively what happens behind the scenes. the constant improvements and changes. he has been the executive at the helm of all that. emily: google and search is what drives the companies revenue. is this a loss? >> this is passing the baton to another executive that worked closely with him.

they worked closely on a variety of projects to make the changes smarter and faster. it seems more like a continuation. emily: what does it say about his vision and the evolution of google after this? >> he is continuing to be very forward-looking, not taking things as an assumption that it will always be there. he sees that machine learning is an incredible opportunity to improve everything, including search. having someone who is at the core of that taking over the search operation at google i think speaks to that vision that this is the future and that we have the right person in charge of it. emily: we also learned that google fiber is the most expensive of them all, $800 million they are spending on it.

jack: now they are giving it away for free. emily: they are now targeting low income housing communities. why? jack: they believe they need to stimulate entrepreneurs and give them access to the internet. it's so google can get data about how they use internet services and to give it a philanthropic gloss on what is a big fiber plate. emily: i feel like google fiber is the unsung moonshot in the google portfolio. we talked about self driving cars, robots, but how significant is google fiber, and how big could it really be? >> i don't cover the fiber space that closely, but it's less of a moonshot and more of an atmosphere shot, something that can impact a lot more people right now. we may get the auto driving cars

at some point, and that is exciting, but fiber is live for many people and is growing now even more. it has the ability to push the whole internet market in the u.s. and gives google a lot of data on how people are searching and accessing the internet and what they like. that is useful for refining search content as well as all sorts of other things. emily: google embracing qualcomm chip designed for servers, which could be a blow to intel. how big a blow? >> any telegraphing of a move away from that is not breaking news for them. it's a type of chip that has lower power so lower electricity bills that google data centers. it's a big incentive to look at other options here.

emily: danny, you've covered google for so many years and the company is changing so quickly. it's now the most valuable company in the world. there is new leadership and new blood. how do you see google in five years different than what we know it as today? >> i think you will continue to see it is a huge search company. it will continue to have huge revenues coming in off that. perhaps the most significant changes, you might see the consumer market start to grow. they are little more diversified away from some of the ads that they are doing. and also very highly personalized devices, learning about what we desire before we get there. emily: danny sullivan, thank you so much for joining us today and our very own jack lark who covers google for bloomberg news.

thank you as well. coming up, marissa mayer makes the case for yahoo!'s future. so far, investors are not buying it. shares falling almost 5% today. ♪

ace sharp surge of 25%. that would be a defeat for the japanese government. rmb not aftern raising the offer to $5.9 billion. sharp has denied it has opted for foxconn. they will continue to talk with nj. they will relax the rules around for earners ringing money in and out.

-- for foreigners bringing money in and out. citigroup is planning to sell bonds as early as this week. mitsubishi, sumitomo will comanage the offer with city. -- citibank. those are the headlines for bloomberg news. let's check in how the markets have been trading. markets are doing very well. with the exception of japan. after two days of losses, we are

finally starting to see some gains. that being said, we have not --n able to put together that being said, we will up today with a dollar much weaker. a big drop in the dollar index. appetiteso much risk right now. the byproduct of this, the drop in the u.s. dollar has been the inflation of the dollar-denominated contracts. whether oil, gold. a lot of the gains you are seeing across the region are inn to a very strong session both resources and oil. if you look from north asia to southeast asia, all the energy names are up 5%. japan is down to the dollar yet.

we are at 118. a stronger level than yesterday. reopen inutes we will hong kong and shanghai. yahoo! ceo marissa mayer has been under fair for months, and speculation has been getting letter. that did not stop her from unveiling a new turnaround plan that he says makes the company domestic and me. -- the best it can be. i spoke with her earlier and asked her to explain what she is focused on. yahoo! is pursuing three separate courses. a turnaround that she says it's her priority, a reverse spin, and exploring the strategic alternatives. what does that really mean? does that mean yahoo! is for sale? take a listen.

marissa: we view all three of the areas being very complementary, this in the car business we are focused on being the best version we can be for users, advertisers, shareholders, and recognizing the value we had been the assets we build here. in terms of transactional pieces, they are aimed at separating the alibaba stake. they're definitely aimed at maximizing value. we think they can be pursued in parallel, and they are complementary as opposed to conflicting. as you saw, we announced yesterday that our board will be engaging on strategic proposals, exploring different strategic alternatives. we are not going to comment any further on the process. until and unless we reach an agreement. emily: your cfo said there have been office for the company. verizon has publicly expressed interest. how have they privately

expressed that to you, and how have you responded? marissa: we are not going to comment on that, and those communications would stay private. emily: let's talk about your vision for yahoo! as it compares to the board. a lot has been made of the fact that the chairman is the person who made the statement about strategic alternatives. specifically, there must be debate among board members among the future of yahoo!. charles schwab just left. do you feel that our board members who do not share your vision? marissa: regarding chuck, i think he was a terrific board member, and obviously a leader i really look up to and i have learned a lot from. overall on the board, managing the board, i will say yes this situation is complicated -- yahoo!'s situation is complicated.

particularly the assets we have, in yahoo! japan, as well as alibaba. that said, i think that is one of the reasons we need to have a somewhat complicated solution, and somewhat complicated path forward, because we need to address how do we see the most value we can from the operating business, and how do we realized the most value we can in particular from the alibaba stake -- and also maximizing yahoo! japan. emily: some have valued the core business at zero or less than nothing. how much do you think the core business is really worth? marissa: everyone models this differently. i would say that my goal is to just make it worth the most it can possibly be worth. that means maximizing revenue, really managing our costs well.

that is something we pride ourselves on. and doing the best we can to return shareholder value. we have returned more than $9 billion of shareholder value. we really are trying to manage all those different pieces. i stay more focused on the tactics, and less on the high-level modeling and valuation. our goal is to maximize it. emily: shares are opening down this morning. i wonder, what is the message you think investors are not getting, and what is the message you are trying to send, particularly to star board? are you prepared for a proxy fight? marissa: our message is really that we have a strong future. we think we have built a great foundation, both in our end-users and audience, in terms of engagement and products, and we feel we have a strong foundation of revenue to move

forward on that can really carry us forward through the next few years. i'm very hopeful and confident in what yahoo! can achieve in terms of operating business. we feel that we have sound plans in terms of how we would approach the alibaba stake, both in terms of the reverse spin, and what we might see in terms of strategic alternatives. emily: you said many times, you want to make yahoo! the best it can be. if you do end up selling the company, would you viewed that as a failure? when you view that as a personal failure? marissa: i would say that what is good for yahoo! is good for me, and vice versa. there is not a personal interest separated there. we just want to see the best possible outcomes for users, and shareholders. emily: given the scope of the

cuts and cost cuts you have needed to make to attempt to get there, how are you dealing with the drop in more out, and -- morale and productivity? marissa: i would say when i look at yahoo!, we have a lot of people here who are confident. they like our plan. we are as focused as we have ever been. a lot of people are very excited to work on these things. there is always going to be some issues with morale in a complicated situation like this. i really believe in the resilience of the people here at yahoo!, and i believe in their vision, because it is a shared vision we built together. emily: there are concerns that you overpaid executives to stay, overpaid big media personalities in an age where companies like -- buzzfeed are paying their creators almost nothing.

marissa: certainly there's a lot of media reports are inaccurate, and there are misperceptions that are not right. i won't address anyone in particular, but i will say some of that perceptions of what we paid or overpaid are just that, misconceptions. when i look at yahoo!, it is a three-legged stool. each leg provides a fundamental element. search is a key part of that. it is also really lucrative overall to the business. communications drives a lot of frequency. in terms of the digital content and media, that is what differentiates us. emily: my interview with yahoo!

ceo marissa mayer. bloomberg has reported tpg and other private equity firms have expressed interest in buying yahoo!. earlier i spoke with the co-ceo at the investor conference in san francisco. here is what he told me about their "interest." he said, we are rooting for them and they are an icon. if we were interested, this would be the last place i would say it, but we are a strong believer in brands. the question is, how you unlock value. coming up, how virtual reality might be a game changer for understanding concussions. very important to the super bowl, coming up. ♪

emily: with the super bowl quickly approaching, the dangers of repeated head trauma are front and center. researchers just diagnosed ken stabler, a former nfl player who died in july, with chronic traumatic encephalopathy. the disease can all -- only be diagnosed after death. researchers believe repeated head trauma can lead to this. new technologies being developed to better understand medicine through virtual reality. joining me, the founding director of a company that creates vr software to manage medical data. explain to me how this could change the game when it comes to concussions and football? guest: certainly when you mentioned chronic disease, we can certainly look at the brain in a human that is living, instead of after they have passed away, which certainly

helps diagnose instead of figuring it out after the fact. emily: talk to me about the technology. guest: the technology comes from very large image data. mris are getting bigger and bigger. it is hard for researchers to understand that. humans tend to look at these 3-d images on a 2-d screen. we stepped forward into virtual reality so you can really explored the brain and the complex structure in a much better way. emily: how is it being used now, and who will use it in the future? guest: we have people all over the world using it in research. we are big in neuroscience. we have researchers looking at all different disease states looking at our technology. traumatic brain injury is one of the things they are using it for. emily: what are some of the obstacles? is it more expensive, harder to use? guest: it is using traditional mri technology, just showing it in a different way.

as the images get bigger and bigger, it becomes more and more difficult to visualize those. it is not more expensive. we think it is an incremental cost in comparison to the current technology, but it makes it a lot more effective. certainly if it will be used in diagnosis, it will take regulatory approval. we have a lot of experience in that. that is the way forward. emily: how do you see this potentially being implemented when it comes to sports medicine in particular? guest: there are certainly new technologies. pet is a new imaging technology that allows you to look at the brain in a living human. we can look at these proteins that are built up in this disease, very similar to alzheimer's. we can count and identify and keep track of those. if a player has dramatic rain -- traumatic brain injury, we can monitor that, and help doctors make a decision as to whether he can go back on the field.

emily: thank you, very interesting stuff. thank you for stopping by. microsoft is pushing deeper into artificial intelligence, buying a u.k. startup swiftkey. it is known for powerful text prediction software running on over 300 million phones. it learns your typing style, to offer suggestions while you type. swift key may be better known for creating at surfaces this -- astrophysicist's stephen hawking tool. we caught up with them. >> medicine has not been able to cure me, so i rely on technology to help me communicate and live. emily: that vital system that professor stephen hawking relies on has recently gotten an upgrade. it used to take three to four minutes to open a word document, can now take around 10 seconds. intel has been working with

stephen hawking for decades, and the latest upgrade was over two years in the making. >> we completely change the way he's interfacing with aspects of the system, to have him not rely on the mouse. whatever he happens to be doing, we would surface the most logical things he might want to do. emily: that also applies to his text-to-speech program. it has doubled speech rates. it considers what he was last writing, whether there were errors, and tries to predict which character he might choose next. to do that, the program has to learn how hawking writes and -- writes and speaks, by analyzing documents. >> the tests we ran shows that of a given body of text, made up of a certain number of characters, professor hawking would only have to enter around 15%-20% of those, and the rest would be inferred. emily: here's the crazy part.

everything stephen hawking does on his computer is triggered by one muscle in his cheek, and infrared sensor detects when it moves up, the way our smartphones can sense when it is close to the face. future versions of this technology are aiming to take a bigger range of movement into account. >> you essentially today say yes and no by moving his eyebrows and pulling his mouth. one of the things we have been working on is using essentially, a camera system to detect these movements. now he can undo things by saying no, rather than manipulating the whole screen to get to a backspace button. emily: intel is even trying to develop brain control interfaces, that can help people who can no longer move any muscles at all. that won't necessarily have been to stephen hawking, but with the market forecast to reach $55 billion in 2016, it represents the next leap for assistive technology. incidentally, one of their

initial backers, index ventures, is also in the news. it is famous for finding skype and dropbox in the early days says it is acting -- adding $550 million. they are spending on eight biotech investment arm into a new firm. coming up, who is having the worst day ever? why the granite state is up for some pretty intense tv time. ♪

emily: now to the online marketplace that lets people buy and sell cars entirely on their phone. the company raised $70 million in funding six months ago, at a valuation of about $500 million. beepi just added an end by three board with heavy hitters including the u.s. treasury

secretary, and president obama's former deputy chief of staff, who has also consulted with uber. joining me is the ceo of beepi. so what did they bring to the table and how involved are they going to be? guest: i think it is important to highlight that in washington, the way we see it is you have the best and the brightest minds that are actually running the country. i think if you compare with silicon valley, the most innovative companies, for us it is a natural transition to understand that people that are doing well in washington like these two men, can help navigate. emily: we are looking at other washington, d.c. heavyweights involved. condoleezza rice at dropbox, etc.. how much are these people figureheads, and how much are

they helping? guest: they are actually very involved. beepi is involved in markets in nine states. they all have their own set of regulatory rules. it has its own unique way to interact with consumers. jim has been helpful in that regard. larry, we expect him to help one we need to go to wall street. i think they are going to be very involved. emily: jim's relationship with uber, how can that be helpful? would you ever consider a partnership there? guest: we would consider that. the most important thing is this company has always been on the right side of the law. but always regulation regulates the past. when we think of people like jim, we think of being protagonists and helping shape the regulation of the 21st century for used car buying and selling. emily: uber, google and apple working on self driving cars.

what does that mean for your business? guest: i think it means something really cool. with our company, you buy a car online and we deliver it to your door. you have 10 days to test on it -- own it. emily: you told a journal you emily: you told a journal you expected to raise $300 million in a month at a $2 billion valuation. it ended up closer to 500 million dollars. what happened? guest: china has slowed down. the most important investor we brought in the round, the largest chinese auto manufacturer, with 25% of the market share in china. nothing special. we are happy where we are. we have a lot of funding to

continue expanding. it is a 20 month old company that has raised millions. we are considered the future car buying and selling. emily: i appreciate your candor. thank you so much for joining us. time now for the best day ever, or in this case, the worst day. the people of new hampshire get this prize today. residents of the state are getting bombarded with more than $100 million worth of political ads this month. to put that in perspective, they they saw only $2 million worth of that in 2012. this is as gop candidates like to differentiate themselves. the lack of an incumbent is also calling for massive media buys. that does it for this edition of "bloomberg west." tomorrow, april roundup of earnings from companies like activision and symantec. ♪

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