currentays the republican front-runner is a fraud who must not be president. trump returned the criticism saying romney ran a terrible campaign four years ago. they are minus ben carson, holding the debate tonight in detroit, michigan. two endorsements for marco rubio, one from the miami herald .ewspaper, florida governor rick scott says he will not endorse anyone before his state primary in two weeks. president obama is in milwaukee to highlight an insurance overhaul that has helped millions of americans gain coverage. on 30,000ulated people gaining coverage. million inabout 4.8 2013. north korea shows what it thinks about the new u.n. sanctions, hours after the security council approved more of them to punish

the country for nuclear test and a rocket launch. was at it again. they launched short-term projectiles into the ocean. global news 24 hours a day, powered by 2400 journalist, in more than 150 news bureaus across the world. "bloombergrumpton, west," is next. ♪ hpe shares topping after hours, as the company shifts, showing early returns. we take a close look at the earnings report. plus, silicon valley side with apple. also, microsoft and more. how was the legal fight shaping up? we will bring you the latest area and apple checks out voice controlled gadgets.

and what they are planning. but first, hp enterprise that shares getting a boost in after-hours trading. remember, this is the bigger of hp entities for business clients. profits 49 forecast to $.43 a share. they are perhaps taking that as a sign that they are showing early returns. here she is on the investor call. have now completed our first full quarter as an independent company, and are off to a strong start. are a smaller, more focused and agile company across a number of fronts. our partners enjoy our philosophy. emily: joining us now are crawford del prete and anand srinivasan from new york. crawford, i will start with you. to her before she

jumped on the earnings call. what did she have to say. she will talk a lot about how the company has focused its sales force. come for been able to the third consecutive quarter, deal with low revenue. this is a really good sign. when you look at the overall transition in the company, it spins on services. up, inices margins go the quarter, as they grow you will continue to see hp's growth overall. it was a good progress report. and as this increase your confidence? anand: there was progress and steps in the right direction, but one of the things the company is saddled with is the impact of currency, it was still affecting growth substantially over the last few quarters. both for hp as well as hd.

that is a nagging born in its side. there is room for turnaround, and a few steps in the right direction, i would say overall. emily: crawford, other things you would like to hear, what is the most influence -- influential? that the they believe stock is a buy, they committed 100% of their cash flow to stop by back. they may continue to look at deals like aruba, and other medium-sized deals. those kinds of deals they did in the past. the bottom line, they are extremely confident about the future. headwindscurrency suggests those it should abate in the next few months. 2.3y: there is a pending

billion dollar deal to sell a majority stake in their networking businesses in china. what is the latest on that? pushback on is some that. there is new management there. they suggest it will now close in may. this notionbring, of stock buyback adding substantial market value. remember, our historical work has suggested buybacks generally occur at inopportune times three among large cap tax, there is a way dividends may be better able to return. there was a boost that came as a result of the share count production. or so, relative to when the company was spun up. i want to take that with a pinch of salt, but all in, progress was made, steps in the right direction. currency is an issue. progress.some modest

i don't want to get too carried away here. meg whitman is confident we are on the right past. how long you see her doing this, running the company? crawford: she talked about a five-year plan. we are now nearly there in terms of the amount of time they can spend there. is takingl you, hpe on its own personality. how they think of investments, in ah, each role hybrid-cloud world. is going tok meg move out of that role in the near future. from my standpoint, i can see her there through the end of this fiscal year. that is total speculation on my part. i don't see any change on the horizon, based on behavior and personality that is emerging. emily: is the split a good thing? that hpe isl say

performing better, and the environment is better than hpi has shown a bus far. coming out of the analyst meeting late last year, the investor sentiment was that hpi stock, toer potentially look into, rather than hpe. the result of an exactly the opposite. emily: all right, thank you so much for stopping by today. i want to give you a quick update on yahoo!. the company looking into bundling of their japan stakes with web operations. and to sell them together. this is according to people familiar with the matter. they have a 35.5% stake in japan. conference,stanley they said everyone on the company is on board. , the restvery clear

of the management team, and the committee and the board. we are all aligned. we are looking at the best shareholder value, and the criteria for what we end up doing. about yahoo! shares up 90% in the last month. our reporter brian is here with the latest plan. interesting, the more things change the more they stay the same. you actually look at what she keepss done here, yahoo! japan and yahoo! together. there is an interesting relationship that -- there. it is essentially being run by yahoo! japan. i can see why there is some logic and hope that would be packaged together. our buyers interested in

buying them together? then: yes, that is multibillion-dollar question. that is not clear. it is going to be a bit of a tough sell. if you are looking for a great internet company, wonderful. but if there is not much you can do with it, that is the bigger question. that is definitely and not clear yet. womack.ll right, bryan watching,ory we are billionaire tony moss, wants the internet more accessible. barriers,owering digital consecration, and online health care reform. conference, they

will discuss rules for 2016. coming up, gaining support in its fight for the u.s. government. airbnb,ting twitter, and at&t among its friends in court. we will discuss. ♪

♪ emily: now to apple. any supporters in its fight against the u.s. government. have filedpanies amicus, or friends of the brief. they -- the fbi wants them to unlock an encrypted iphone. many organizations are weighing in, including google, microsoft,

and facebook. matt larson is nbc2 tell us just how important these filings could be to apple. also, our bloomberg interpreting editor from new york. got telecommuter come -- telecommunication companies and others to read you make of the diversity? >> like you said, the diversity of industries impacted by this court case, it is not just about one iphone or the mobile industry. people in software, infrastructure, across the board are concerned about the legal precedent that this case could set. and then, the future of privacy laws, emphasizing constitutional arguments apple initially raised in its opening brief.

emily: what do you make of the support apple is getting? >> it does not surprise me at all. there is a point of view among many tech companies, that it is a life or death matter in some regards. companies worry very deeply that if trust gets jeopardized on the part of users, that governments can just reach into what ever technology they want. it could diminish the sales of all these companies. it is a real risk, particularly outside the united states. matt, the underlying case and outlook -- will it change for apple at all? matt: i think they do. when the judge's ruling on a matter that has this rod of ramifications in the industry, they need to get a way in. briefs, theat the arguments have nuances. the sheer volume and diversity you are seeing in the filing,

really does speak to the ruling and potential downstream impacts. you look at comments from people from the intel brief, for example. toing encryption is integral the global economy going forward. i think the judge will take a look at all these filings, not that she wasn't going to rule carefully before, but she will certainly be more concerned -- e whener it -- considerat making a ruling. weakerone of their arguments, is that it would take 10 engineers and a lot of time to build a key to unlock the phone. of course, if any company in the world has the resources to do this, it is apple. if you think about the impact this could have on smaller companies, startups, if they are required to do this, the implications could be much broader. certainly, they could do

anything to comply with government request. it is true that many companies don't want to be in the position to have to tweak their products at the government's win. you have to remember, this has to be seen in a global context. once one government succeeds in getting this kind of adjustment may, every government around the world, especially in the scores a very undemocratic countries, will start wanting this kind of thing for a wide range of different products, for a wide would noteasons we agree with. emily: matt, we have known this all along, but there is more attention now. until a year or two ago, when apple had a prior version of its operating system, they complied with government request all the time. suddenly, they changed their operation system, and if the patient for law-enforcement and national security are incredibly

different, because they cannot get access now to this information. should one company be able to decide this issue for all? matt: that is a great question. i think apple would certainly take issue with the characterization of not complying with requests for information. unique, in that it centers around a request for the production of additional software, creation of a new media to help the government access the phone. emily: but aren't there 12 other 14es across the country, and other phones? and the case of a drug dealer in brooklyn, a judge said they did not have to do this area map: that is correct. each case is different, but getting back to should, should one company's litigation be deciding policy across the u.s.? i tended to think not. a lot of the briefs filed today

indicate that. it requires congress, careful consideration of industry implications. obviously, security and privacy considerations. a lot of moving parts, and the best place to figure out what result ofpen, as the a holistic dialogue that takes a look at all the different factors, without competing interest in court. emily: all right, matt larson, thank you so much. david kirkpatrick, you are with me throughout the show. google is joining the fight against the zika virus, donating millions of dollars to unicef to keep the disease from spreading. google will also assign engineers and data scientist to see where zika will hit next. we will speak with jack dalymple -- app, toearing messaging a major player in mobile video.

we will talk of the evolution of this enterprise. ♪

♪ emily: ace books scored a victory with european regulators. a german court ruled they have right to prevent users from signing up, using pseudonyms. they have been citing with the network over the years. the court decision comes a day after regulators say it is examining whether they possibly abused their dominance, allowing use of data. feverish popularity with millennials is often misunderstood by those over the age of 30, including yours truly. but they haven't some big numbers. 8 billion video views per day.

and sarah frier watch the progress. and you see one of the stars on the cover of bloomberg businessweek. max is with me, as well as david kirkpatrick. today is the very first day i really understood why it is so important. guy is producing 10 second videos every single day. 3ey disappear, but he has million or 4 million people seeing the videos every day. is getting 3 video million or 4 million views. compared to twitter, or someone has one million followers, it is a small fraction. on snapchat, people are engaged.

they have figured out the platform. it is hard to explain exactly what he is doing. self-help, and reality tv, but it is strangely compelling, and the numbers speak for themselves. sarah and i were writing the story, and we felt it up into my snapchat's amazing weirdness, but also how compelling it is. jenner, another huge video store on snapchat apparently. david, as the guy that wrote the "facebook effect," do you understand this? if max, half my age, called it amazingly weird, i am uncomfortable with that also. it is astonishing how this service cap coming on and on and on. i know when analysts on wall street who became an investment banker, and when he went to snapchat, i said why?

he said david, just watch. i would say, he has a nose you would not believe. he was the first guy on wall street to go into facebook. i think this is an amazing company. it is not for me right now, eventually.l be but you have to give these guys credit. it is astonishing. emily: i just started shooting my first snap chat video today. you can check it out. but max, one of the things you say that now chat is much bigger than people realize. just how big is it? it just now, 100 million daily users. to put that into perspective, when you think of engagement, it is probably closing in on twitter sides, if it not -- has not surpassed twitter size. it depends on how you measure

it. twitter has not released their daily active in a couple years. but i think it is getting close, and when you think about the engagement, how often people are using it and how much time they are spending on it, i think you would be surprised. but we don't know for sure. we are looking at things like what percentage of people are snapchatvideos three has been incredibly secretive. $200 million or $250 million in revenue this year, but it is just a guess. snapchat has not really try that hard to make money. for twitter, their bread-and-butter is small businesses. but snapchat has not done practically any of that. they just introduced a product a couple weeks ago, that had just scratched the surface. up until now, you had to be able

to write a pretty good-sized check to get in on the snapchat action. --ly: you wonder how clear soon you will see something else. has gone from this slightly scary place, where you did not want your parents to be, to a place where you are literally doing your homework on it, if you are a kid. it is how people are communicating with their soccer team or what have you. snapchat has filled a void. void is more normal communication, stuff that is not that important. emily: all right, check out my first snapchat story. david kirkpatrick sticking with me. ♪

♪ mark: i am mark crumpton, here is your news. rick snyder has hired to outside lawyers for flynn's water

crisis. they will search and process e-mails. the michigan attorney general's office is representing snyder to others. republican presidential candidate ben carson tells he has not changed his campaign status. he will make an official change tomorrow. he said he did not see a path to the nomination. he is skipping tonight's debate in detroit, michigan. the party to support however the voters choose. president obama extending sanctions for another year against russia over its military intervention in the ukraine. vladimire members of a putin's inner circle. the foreign ministry said the sanctions could pose a danger of a force of compensation -- confrontation with russia. a tsunami warning failed to work when a powerful earthquake

happened off the coast of sumatra. also hitarthquake small islands, no deaths or major damage was reported. day, powered by 2400 journalists, in 150 news bureaus around the world. i am mark crumpton. it is just after 6:30 p.m. in new york. we are joined by paul allen with a look at the markets. paul: good morning, a good is strongly for wall street again. we are extending -- expecting full on the nikkei. .5%, while the new zealand index of more than .5%, heading into friday afternoon. afternoon, ishis the national people's congress in china which starts on saturday. we will get look at the 35 year plan.

the markets will be closely watching for anything close to foreign-exchange reform. the internationalization of the yuan as china tried to deal with these capital outflows. that's what markets are hoping for. what they get however, could be different. there is a history here, and no one is expecting a sudden outbreak of transparency or clarity with regard to the five-year plan. in the next hour, we will get retail tales in australia for the month of january. a strong print there. growth of .4%. that dovetails with the gdp figures we saw this week. i am paul allen in sydney, for bloomberg. ♪ emily: welcome back. turning back to the debate on encryption. the san bernardino case makes

its way through court. congress preparing to move forward on its own investigation into digital security. a bill to establish a commission to seek to make policy recommendations after involving various stakeholders. michael mccaul, one of the two lawmakers who proposed the bill, spoke to us from san francisco. take a listen. >> the bill is modeled and designed after the 9/11 commission. the same effect that that commission had on the congress. we implemented most of those recommendations. it is comprised of 16 commissioners from all the relevant areas, whether federal, local, the intelligence community. community, and privacy advocates, to sit down and develop both legislative solutions, and technology solutions. what i consider to be one of the greatest challenges facing our federal law enforcement. emily: david kirkpatrick with

me, still. david, what you think the legislative solution should be? david: certainly, as apple and others have been saying in the court case, it is far better that congress addresses that and makes the rules of the road clear, as opposed to allowing courts on a piecemeal basis to intervene, possibly in unpredictable ways that could disrupt company's business. thatt say, i am skeptical congress, especially in a time when terrorism is such a source of fear, will really come up with recommendations that are very rational. also, because there are so few technology savvy people in congress. emily: if congress can do it, who does? apple, a tech company, should they decide? there should be a hands-off approach between government and tech. longtime tech this, that isind

encouraging. i hope they take a balanced view. if they do, they will come up with some reasonable recommendations. but i fear for a balanced view on anything to do with terrorism right now. --is very easy to get people heaven forbid there is another incident between now and the completion of the commission's report. then it will get even more unfavorable for tech companies. emily: congressman mccall also talked about his goal, to go beyond this apple situation in particular. >> this bill is not designed to litigate that case. that case is being litigated in the courts. it is splitting the courts right now. one case, one phone. this is a broader issue, that deals with all the security, digital security concerns we will have. the apple case is just the beginning of all this. this commission is designed to

look and solve the problems that we know are coming beyond the san bernardino. it is also designed to protect americans from, god forbid, another terrorist attack in the united date. -- united states. by another attack using encryption, congress will have that on hand. david, this case is unprecedented. but what is your gut? how do you see this play out? david: how should it out, or what should happen? i think the tech companies will have to cave in some fashion. the way it happens will be critical. i worry it will not happen in a way that protects freedom of speech around the world. one click comments. there was a committee put together recently, it included representatives from the

government, although it was not official. the conclusion was, it does not matter, because there will be so many other ways for governments to spy on us, that they do not need to break encryption. you said theow, tech companies will have to compromise. speaking with apple's head lawyer, he told me there is no middle ground. apple does not see a compromise in the middle that is not -- it is a split -- a slippery slope. this should be decided by the judicial system on a case-by-case basis. when i told ted olson, apple's lawyer, he laughed. david: they added to it a lot of people in the security community , that we should come together and talk about it, but then do what we want. say, itlem is, as you is hard to envision a real middle ground that does not

fundamentally undermine freedom of speech and the privacy of the user. and does not dramatically interpose on the company's freedom to build products the way they think the market demands. ultimately, the market should make these opinions, in my opinion. customers want their speech protected. you could argue, they also want to be protected from terrorism. that is where it gets gnarly. this is only the beginning. experts say this case could go on for years before it is resolved very but it will certainly set an important precedent. watching,we are groupon prepared to surged nearly 100% in the last month. and the chinese internet giant alibaba may be the reason. alibaba isorted that seeking a loan of up to $4 billion. that is among speculation it may be gearing up to buy groupon

altogether. analysts note, the value over attractivea less target now to any potential buyer. coming up, from zero to $700 million in less than a decade. the off grid solar market surge,. plus, a staggering new climate change figure that will make you think about what is for dinner. ♪

emily: to a staggering study on

climate change, and its potential impact on food supply. at least half a million people dietary changes in warming temperatures by 2050. they think food availability will drop over 3% per person in the next three decades. it also showed that lower fruit and vegetable consumption may raise noninfectious illnesses, including heart disease, stroke, and cancer. a stock we are watching, sun edison shares. they have had a rough start to 2016, but they believe there is 70%, this move to delay the dividend may save the company $8.3 million a quarter. they conducted a internal investigation to fend off lawsuits.

ago, the off grid space barely existed. today, it has grown to a $700 million market. research says that as soon as of0, there could be millions homes running entirely on solar energy. are locatedmarkets in sub-saharan africa and asia. in bc, and david kirkpatrick, still with us. a $700 billion market, what kind of growth rates are we expected to see? >> over the next five years, we could see a growth rate. to be clear about what we are talking about, we are talking about the so-called off grid market. 1.2 billion people in the world, who have zero access to anything looking like a grid.

we are looking at basic energy that solar systems can provide. this is basic electricity we are talking about. what about promising markets for off grid the solar? beenutheast asia have great markets going forward. in the sense that that is where the largest population in the world lives. seen a lot ofnly activity in countries in east africa and in india to date. realistically, we are talking solar lanterns. little lamps you can give a child to study or to read by night. that may not sound like a lot to us in the western world, but when you talk about burning kerosene for lamps or candles, this is a safer solution, a

cheaper solution in the long run. when i say long run, i mean within a year, it can make more financial sense to own a solar lantern, and to be using candles. you, twoed to ask things that come to my mind. one, a huge percentage of these people live in areas where there is a tremendous amount of sunlight. the cost of a bold kx technology has dropped. are those two big factors here? that makes it such an exciting time for this sector and industry. that is where the opportunity truly live. solar, five or 10 years ago would be considered too expensive in many communities. to be clear, there were a number of pioneers trying to use solar. one potential analogy, when you

look at these communities, whether or not off grid solar could develop in a way that mobile technology has come a many people are not bringing telephone systems to these far-flung communities, but many people have cell phones already. that in part has driven demand for these systems, because people want to charge the phones. how much government support would it need to gain momentum? an interesting question. in some countries, the best thing the government can do is get out of the way. highly, not imposing tariffs on solar goods, allowing local players to operate freely to operate the equipment without bribes or taxes. a lot of the most exciting and interesting things we see are offeringanies that are

quite autonomously, to go out and make this happen. david: you said it is a great point that this could drive this. companiesing affluent trying to spread internet access across the world. do you think they may end up financing a lot of what you are predicting here? >> there is an interest in the technology community. bye of them have been funded snyder electric, by mobile phone companies as well. interest onre is an the part of larger companies to get into these markets and fund these activities. there is potential out there. before i finished, i wanted to say thanks. for those who want to learn more, you can check out our website. we partner with the world ink. we are very proud of it. emily: all right, the americans had for our finance team.

excellent work you are doing. thank you for joining us. speaking of renewable energy, i will speak with one of the energy's proponents, california governor jerry brown. do not miss my in-depth conversation with governor jerry brown tomorrow. and coming up, amazon releases two new versions of the echo. but what separates them from the pack, we will let you know all the details. carolyn everson. ," next."bloomberg west ♪

emily: be sure to follow me on snapchat, i will be trying harder to share behind the scene high laugh -- highlights. i am emily chang tv on snapchat. amazon is doubling down on a coke, which you can play music, control lights, and download -- order products online. any allow customers to use speaker. $130 cap is a battery

version of the echo. david, you are a huge fan of amazon echo. why? david: i think it is the first example of a fundamentally new kind of computing, ambient interface computing. the amazon executive says voice is the next platform. happens to use voice, but for me, that thing that really makes it different from anything else we have seen recently, is that you basically deal with technology the way you deal with another person. things thexa to do same way you ask -- my wife, what is the weather? this --impressed with the things this alexa can do. alexa,ime i say the word

i am sure that in some households watching the show, the thing is it saying things. because whenever it appears that word it perks up and asks you what you want. it is a new form of computer interface, a good deal. alexa.alexa, alexa, people are so annoyed with us right now. what about the capabilities? iphone, there is a lot of work to be done there. in terms of recognizing what i am saying, it can't punctuate, a cannot do a lot of. david: it probably recognizes a much narrower range of what siri does. it does understand, it understands very fluently. and it can hear you from very far away. water on iny tea the morning, and very far away from the echo, i say alexa, set the timer for four minutes.

it is very good at doing what you say in the constraints of its language. the other thing that makes it different from siri and ok google, it is really a platform. amazon is building more and more apps and bringing in apps from third parties. that is why spotify works with echo very effectively. you can also use uber. a number of apps work on top of it. they also wanted to integrate it with ford vehicles. emily: what kind of business do you see amazon echo being? the kindlen it to business. is that a correct comparison? david: i think it could be at least as big as kindle. i did not know until i read your article today, that it is already the third best-selling products on amazon today. that is impressive, considering

not many people know what he did. i tell people everywhere to go out and get one. it is inexpensive and gives you a window on the next phase of technology. glass wetangles at --k at, driving dangerously they are sophisticated, but really primitive compared to what will be possible down the road. echo represents a new way of interacting with computing that is more intuitive and part of the way we live, talking the way we talk to people. it is a huge deal. ordered literally just my amazon echo today. and i started using snapchat, so i think my life is about to change. we will have to get you on snapchat, too. david: i already use snapchat to communicate with my daughter, a 23-year-old. emily: as always, wonderful to have you here on the show.

it is time to find out who is having the best day ever. i love this one. today it is nasa astronauts scott kelly, proving that a year in space can take you to new heights, literally. upon returning to earth upon a record-setting mission in space, scientists know that he is now two inches taller than when he left. it is a weird, but temporary side effect of space travel. without the full strength of gravity pushing on the discs between your vertebrae, it expands and lengthens of the spine. they checked his vitals. -- person would have checked notice the difference right away, and that is his twin. tomorrow, governor jerry brown. ♪

>> this "charlie rose." charlie: we begin with politics, donald trump and hillary clinton came close tore securing their party nomination. super tuesday. saw both candidates win victories in seven -- contenders look towards november. >> we know we got work to do. but that work is not to make america great again. never stopped being great.