measures. only about 29% of the electorate cast a ballot with a margin of error of three percentage thets, it was unclear turnout surpassed the 30% threshold needed for the result to be valid. former coal executive don blankenship was sentenced to one year in prison for his role in the deadliest u.s. mine disaster in four decades. he was ceo of massey energy 11 of the company's mind loaded in 2010. the blast killed 29 people. he was convicted of conspiracy to violate mine safety standards. turnout for the tuesday primary in the wisconsin primary exceeded expectations. expectation was 47.4%, topping the 40% predict it by election officials. voters came out in the biggest numbers 1972. the world health organization says diabetes is on the rise.

excessive weight, aging and population growth have a impact on cases over the last quarter-century. news 24 hours a day powered by our 2400 journalists in 150 news bureaus around the world. "bloomberg west" is next. ♪ emily: i'm emily chang and this is "bloomberg west." verizon jumping into online video. what is valuable about what -- about use content? surveymonkey branches out beyond online surveys. what will the world of at analytics hold such mark and airbnb's tangled web of over 40 overseas subsidiaries. we look at where the company

plans to pay taxes as it approaches the threshold of profitability. jamie dimon now out with his annual letter to shareholders, saying the potential outcomes of unknown.are large and he also said there is living uncertainty that could hurt british and eu economies and jpmorgan could lose $2 billion in brazil under extreme stress. we will continue to bring you the headlines as they come. a are watching updates about financing of the largest tech is this ever. what is the latest? cory: it is a fire sale over at dell. they acquired their i.t. services for 4 billion that -- for the $3 billion, three being $1 billion less than they paid for it.

they are announcing they will try to sell a company that essentially allowed for electronic verification of documents. dell trying to sell that. they are looking at selling other assets. us is dell is looking to find anyway to come up with the cash that they can pay off the debt they have been .sing a very expensive acquisition for dell and how their business can afford to pay that and pay down the debt. there were suggestions dell must have been doing better than they were selling in their public results. now they are shedding units left and right for billions of

dollars, even at a loss for those i.t. services businesses. keep an eye on this story because the acquisition costs, we will see if they get anything near that as dell tries to shed the assets. much for theyou so rundown. verizonother deal -- making a play for millennials. into online video -- the nation's longest -- largest online carrier is buying a stake in awesomeness tv from dreamworks. dreamworks purchase the company for $33 million in cash around the same time disney purchased maker studio in a similar move. steak has valued it at a whopping $650 million. given their rising value and a

potential doubling of annual revenue, could we look at an ipo opportunity had? i want to bring in the founder of awesomeness tv from l.a.. what about that ipo? brian: we are a little ways away from that. i still lack -- still look at this as a baby in diapers, but never say never. understand it, you're going to make hbo caliber, short form content. explain what kinds of ideas you have 10 kicking around. you think about the evolution of the cable business and how programming started with public access programming and reruns of sitcoms and lots of episodes of star trek. eventually each of those brands define themselves with a premium

show, whether it was "the sopranos" on hbo or "mad men" on amc. if you compare that to the digital revolution, it started with creators on youtube making premium shows and then companies like ours came along and started descriptive content. we believe the next evolution is super high-quality scripted shows like you find on a premium service like netflix. that's the kind of content we will be making. with big talent behind and in front of the camera. emily: there's competition from youtube, spotify -- what makes you think this service will be different from everything else out there? why would this succeed? brian: i don't think anyone is

investing the kinds of dollars in programming like we are about to do. we have sort of proven ourselves already in short form premium content. verizon is interested in making this investment. the content we have made so far has performed exceedingly well. this companyarted focused on generation z. now you are looking at making stuff for a slightly older audience. why? brian: we are still interested in generations the. this particular offering is to capture the consumers that are massively consuming video on , and really phone trying to reach an audience that is underserved.

if you have an hour, you have a lot to watch, but if you have eight or 10 minutes, no one is making this kind of content today. we think that's where the opportunity is. --ly: you have three owners dreamworks, hearst and verizon. does that make things complicated for you? what is the end goal? brian: i'm going to have to return a lot of phone calls every day. it's pretty special for us. when i started the company four years ago, 40% of our views were on mobile. 80% of our than views are on mobile devices and that is only going to you to accelerate. partnerve verizon as my and have that kind of reach, i can't tell you how excited i am about the possibilities. then throw in aol and all of those eyeballs and the tech that

comes in with it, it's a fun playground for us. calls.enjoy those phone we will keep our i on you guys. i want to bring in my guest host for the rest of the hour, one of the cofounding editors of "wired" magazine who has been covering technology for many years. deal?o you make of this you got dreamworks, verizon and hearst dipping their toe in and at the same time, we saw facebook live. facebook is paying companies like "the new york times" and buzz feed to do video on facebook. were when i saw that they paying for live, that's not going to last. i would not want to count on that for a long time. i think brian is right. media companies have not caught

up with the habits of younger people. if you launch anything these days, you have to think about one thing which is a sub 92nd 90 secondebook -- sub video on facebook. verizon, smart move by getting into a market they probably didn't have, nor did aol. emily: what do you make of a spoke going big on live when twitter seems to be the perfect venue for live? john: facebook is so big that they can buy things and the ford to test them out. for twitter, it is x essential. they've tried to compete with snapchat and that did not work. but if they set their teeth and go at it, i would be quite concerned. facebook and google still dominate video.

where do you see the future growth of online video? who wins or do they continue? john: facebook wins. facebook is the place everyone wenks about -- the way thought about google as the first version of the web, facebook is the place. emily: who loses? longform. attention is finite. if you get a generation used to taking their entertainment in one minute, two-minute, five-minute sips, it has to come from somewhere. emily: john is with me for the hour. always great to have you on the show. about up, we will talk sharing economy companies like uber and airbnb finding loopholes to skirt taxman. ♪

emily: corporate tax havens coming under scrutiny. and it comes to silicon valley peer-to-peer startups, a review of airbnb's filing shows it has a far more extensive web of subsidiaries than it has acknowledged -- more than 40 in total. as sharing economy companies in ch toward profits, what does that mean? talk to us about how big this problem is with respect to airbnb. since they have not yet become profitable, it hasn't been a problem. they expect to turn their first profit this year. once they get there profits,

all the sharing economy companies will have the opportunity to use the tax avoidance techniques that have been used by companies. they have not been able to use it and what changes is with us norms, they are able to make the same kinds of savings and lower their rates to a level that has people in the treasury department concerned. emily: we did get a statement from airbnb. we pay all attacks that is due and we make long-term business decisions and act in the best interest of our community. googlehis the same thing and apple and other corporations have been doing for years? john: the interesting thing is they're forcing a new conversation about what kind of

company do we want to have in our society a smart what's the role of the company as a citizen? if they are going to be extracting service revenue and putting it under a shelf somewhere, what about our schools? what about basic r&d that created it in the first place? this will end up in legislation. in every company in the world that has a certain set of profits that employ a lot of people to keep as much of it as they properly -- as they possibly can, that's what we are having at the presidential race level. what is the role of a company in our society today? emily: you report the sharing economy could account for hundreds of millions of dollars by 2025. what's the u.s. government doing about it? they are still getting

her hands around it. the irs is not quantified it. wouldeasury department restrict the use of hybrid structures that would allow companies to lower tax rates to zero, but there's also something about the deferral of offshore that they would restrict but it is all deadlocked in congress. there have been proposals that .ave so far gone nowhere there has to be a bigger conversation about tax reform to see if there's a way to handle lists and make it being a revenue drain on the treasury. emily: first the panama papers and now this. john: if i were at airbnb right now, what terrible timing because the panel papers just came out -- panama papers just came out. the incentivey system we set up in our economy and we need to think about whether that is the right incentive. john is with me for the

hour. our bloomberg news reporter, wenk you so much for later, will dig into the multimillion dollar tax credit market that hollywood production companies and many more are taking advantage of. into thead, peering future of energy. we look at whether there's any stopping the spread of solar. ♪

emily: time for our latest installment en route global energy. we look at wind and battery and now we look at solar. solar has been having trouble despite a collapse in oil. the sectors getting twice as much global funding is fossil fuels. energy believe solar will come to dominate because it is a technology, not a fuel that

will likely get cheaper and more efficient as time goes on. it is the presence of solar inevitable and how soon can we reach that point? we are only at 1% of u.s. households penetrated today. but the growth we have achieved with zero from 100,000 customers starts to compound and i think you will you happen faster than people expect. emily: how much faster? 20% pluslar is about within three to five years. you doing tore reduce installation cost? viable without tax incentives and credits? guest: solar is competitive today. all of energy is subsidized. the global subsidies for fossil

fuels are $5 trillion. fossil fuels in the u.s. receive eight times the subsidies renewable did in the u.s. what we are saying is let's have an even playing field. even with all the subsidies fossil fuels receive, we are 20% cheaper and our cost are going down. the power we are competing with is going up at the same time. a lot of people will say oil and actual gas are so cheap. what drives power prices is the investment in transmission and distribution lines. that's why we have these brownouts and blackouts. as you up eight and modernize the grid, prices are going up. emily: the end of net metering could be a huge blow for the entire sector. how do you expect these to play out? is happening today is

consumers and innovation are driving change despite what is trying to be done on the regulatory side. what we have seen happen is when we look at the facts, rooftop solar strengthens the grid because it is produced on-site. you don't have to invest in as many transmissions. those are the things utilities make money off of. what these are coming down to is competition. when consumers can choose cleaner, cheaper energy, they will drive the change. battles are far from over on the regulatory side. what are the next flashpoint mark lynn: we had big wins this year set us up for long-term success. the federal government gave us a five-year runway. it is a huge and important market and to places where we are showing we're going to leave

to switch electricity from dirty fossil to renewables. what i see continuing to happen is utilities will be threatened and they will try to protect monopolies. but when you look at the fact, we will see rooftop solar is a benefit and we will win nine out of 10 times. there will be a few extreme examples such as what happened in nevada, but a similar thing happened with gay marriage in indiana. emily: solar stocks are down across the board. are you facing slower stocks as well? lynn: the fundamentals have never been that are in this industry. consumer demand is strong and we are saving customers 20% on electricity. secondly, you are seeing real entry barriers. it's hard to do, so there's short term noise as there are

companies entering the market and some of them have had trouble raising capital. the companies with quality assets have not. completed our prospects for the future and just closed very attractive financing. a lot of people think can continue to raise capital. raise financing through the credit cycle in 2008. these are very high quality assets. they pay their bills and these systems perform. we've been operating for eight years and we have the track record. when i look at a market like concerned.ery tune in tomorrow for the final installment of our series. we will hear from a startup

seeking to redesign the power station and a u.k. company building the world first title dal powertem -- ti system. between 10000 and 15,000 jobs as part of a plan to save a billion dollars a year. racing sincee been the merger with out to tell lucent. the job cuts are aimed at help nokia cope with a challenging business environment. coming up, after a tortuous year of leadership changes, the ceo is taking the company in a new direction. ♪

thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable. just like kung pao fish.

thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business. youto get the help you'refar looking for. that's why at xfinity we're opening up more stores closer to you. where you can use all of our latest products and technology. and find out how to get the most out of your service. so when you get home, all you have to do is enjoy it. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. crumpton.mark let's begin with a check of your bloomberg first word news. illinois senator dick durbin met with supreme court nominee merrick garland. meetings are set to chat with

senator dianne feinstein and senator sheldon whitehouse. theident obama will go to university of chicago to argue for the judge's consideration to the high court. check grassley of iowa will meet with garland next tuesday. john kerry is the most traveled secretary of state in u.s. history. he broke the record as he arrived in the middle east earlier today. 1.06rip pushed him past million miles. the former champ was condoleezza rice. the obama administration is transferring left over money from the largely successful fight against ebola to combat the zika virus. devoted towill be the center of disease control and prevention. the centers focused on vaccines and combating mosquitoes that spread it. the world bank is cutting its

growth forecast for the economy. the russians statistical services 3.1 million russians officially live in poverty. inbal news, 24 hours a day more than 150 news bureaus around the world. from bloomberg world headquarters, i'm mark crumpton. 6:30 p.m. herer in new york and i'm joined by paul allen in sydney with a look at the markets. paul: we expect to see gains when it opens, new zealand currently the only market open. plenty of positive sentiment the rebound ing oil prices and u.s. equities overnight on the side of the world. looking at the data for the region today.

singapore, we are expecting slower growth there down from 1.7% and taiwan to report a cpi from march. watching samsung electronics, preliminary earnings meeting there would be no net income and itoutlook on income only but expected to show better than expected smartphone sales in the first order. that's just some of what we are watching from the asia-pacific today. i'm paul allen in sydney, australia. ♪ emily: surveymonkey is branching out beyond its namesake business

of online surveys and getting into the business of at analytics. the ceo says it will eventually generate a double-digit percentage of the companies overall revenue. i asked why he's departing from the core business. this was an acquisition we made last summer and today, we are launching surveymonkey intelligence which is an apt provider for investors to learn more about their products and how they fare against their competitors. this is when the key tools in our portfolio. emily: you can figure out is -- how accurate is the data? how do the companies feel about it? guest: it is very accurate and it depends how you are performing. we are able through the size of the panel and the answering

capabilities to project important characteristics like revenue not only for your youuct, but this lets measure the success of your product against your competitors. the function that drive certain growth, you can start to analyze and survey your users, find out what is working and make changes on the fly. emily: you guys have been doing a lot of polling during the election and it has been held up as one of the more accurate places to pull. what are the most surprising trends you have seen? guest: when i was growing up, your parents would get calls during dinner and it was an office -- an awful process. this has changed the landscape of how we are pulling for elections. we are able with the size and 3ale of our platforms, we get

million responses a day and we are the largest surveyor in the world. we can ask what's going on with the elections and what we see that the data is changing rapidly. trump has a significant lead and his campaign has been handicapped a bit by his crazy statements. so is the core business still growing and how do you see that complemented by the new does that addow up like that? guest: we are laser focused on expanding into better mobile products and expanding internationally. there's a lot of functionality and new dynamic benchmarks we are injecting to the product to help grow every day. thousands of people sign up for surveymonkey accounts. we are excited to announce new products that are around the core survey. x.

analyze mobilees data and deploy solutions to generate new customers, we continue to see adjacent markets but we want to make sure we are focused on staying around the feedback process. you are taking the place of surveymonkey ceo dave goldberg. how are you planning to carry on his legacy and make your and stamp on the company? is an surveymonkey amazing company. when dave goldberg and spectrum and bain brought the -- bought the company, he brought in so much talent to help surveymonkey grow. his stamp is all over the company. love forrity and his people and data and helping people make great decisions stands for the values we own and live by today. there's a strong buy-in to help

grow the legacy. we where the t-shirts to help make him proud. in 2015, we had a challenging and his death was a traumatic moment for all his friends and the people who loved working for him. but he would not want us to mow around the office and he would be dismayed if we did not carry on his legacy to build the best is this we can and we are excited about the health of the brand of the volume of customers we work with every day and the nature of what we are building, moving into adjacent markets. he was a dear friend of our show and talked about an ipo public he. what are your plans for an exit? what is next? guest: the companies going to generate more profits this year than we have at any time in history.

these are rocky times and the capital markets. we don't spend a lot of time thinking about valuations or unicorns internally. we are laser focused on delivering for our customers. i'm confident we are going to build a business that is durable and can grow for many years to come. we have the kind of scale and profitability to go public and we want to do that on our timeframe with the broadest, strongest business possible. emily: you were on the board dave passing.nd guest: after dave passed away, the board committed to a thoughtful process to put the best person in that job we thought we could do. we had the opportunity to put him in the job and he joined in august.

investors believe there are viable options. cup or flow with with opportunities and it's about taking sure you are aligned on the initiatives you think our best for the company. bill and the large investors had a different view of where we were going, so he opted out. i continue to count on his health. he's been a great advisor, but i took over in january. emily: your cto is beloved at the company and another back down. she is leaving this week. how do you fill her shoes and maintain morale at the company? guest: companies are durable and evolving and letting great people go on to do new things.

she's excited about new startup ideas. emily: you did recently lay off about her teen percent of the workforce. guest: we are past the layoffs were sure. it's just part of our business that was not as productive as the rest of surveymonkey. bloomberg's book from 25 years ago recently. just making sure you are investing in the businesses you are in the best position to succeed in. we just got over a sales assistant area that was not as part of. turning to the broader markets, u.s. stocks rallying in the wednesday trade. with theencio joins us

takeaway intact. ramy: the big takeaways ending in session highs on wednesday. care seeing pops in health and energy stocks. want to bury the lead here but the nasdaq actually hit its 2016 high, erasing all the losses we saw in the route that we all know so well. part of this is biotech stocks. it on a tear throughout the trading session, up by x percent, going gangbusters. that's the biggest jump since the summer of 2011. let's get a little technical and hop into my bloomberg terminal. in terms ofow you the 50 day moving average.

we crossed the 50 day moving average and we are approaching the 100 day moving average in the green. erasing most of its losses for this year. biotech, ascks in up. as biogenic all why are biotech stocks rallying? basically because of what is not happening with pfizer and allergan. new in version rules are coming from the department of treasury. that means there's cash on the table for other perspective mergers. i will send it back to you but a big day on the nasdaq. for every one stock down, to stocks are up. emily: coming up, just in time for tax income a multibillion

dollar market place to buy tax credits. we will bring you the details. ♪

getting a boost -- the wireless company will sell and lease back network equipment in a move that would ring in $2 billion in funding. the new influx of money will be used to pay down debt coming due. sprint has a total of $35 billion in debt. time to pay the u.s. taxman is just around the corner and a new multibillion marketplaces allowing investors to get in on the action with major hollywood studios. several studios are looking to sell and trade their unused state tax credits. is estimated to be worth $100 billion had online incentive exchange launched the

first system for the sector helping companies sell tax credit so buyers could use them to reduce the taxes that they owed. yes, this is possible. start here -- we were , tax havenst airbnb and loopholes. th all sounds very fishy but apparently it is legal. >> tax incentives are used to incense specific activities. it's pretty straightforward and simple. if the state wants to produce jobs or create particular act tiffany's in the legislature in that state, it reduces a tax credit and companies are drawn to investing in that state to benefit from that tax credit. why the movie industry and production companies in particular? guest: i'm not a politician but

it brings in a lot of profiles and a lot of jobs into a local economy. emily: should other companies people to use other companies tax credits? strange but it is not unusual in point of fact. i'm wondering what kind of tax credits are not legally tradable? most of the tax credits are not tradable. most are either rebates or you have to use them or lose them. toorder to create liquidity draw in movie studios where they may not have jurisdiction, they need to be made transferable and those transferable tax credit to be monetized. currently, there's no efficient way to do that. emily: who else is taking advantage? real estate companies,

general companies by way of jobs programs, renewable energy companies. emily: louisiana made an interesting change requiring all tax credits to be registered with the state. is that going to hinder the business? guest: no. allstate's -- all tax credits are registered with the state. the state produces the tax credit. the state does not have the technology to manage that effectively. does this fit into a new code future? market likek many that would be created online. i'm curious of individuals can take advantage or if it's only corporations? date, it has been predominantly the domain of corporations because they know about it and they are in the mix. they are able to marshal the resources to interface with the community.

we are democratizing that access to individuals, so individuals who pay taxes are capable of buying tax credits. emily: how much did it cost? pay $.90 forght $100 worth of tax credits. spectacular when you only have to put up the money for a few months. emily: interesting. thank you so much for stopping by. john, we will speak with you after the next break and talk how you say the tech story is over. ♪

my guest host has been the better part of three decades right about, investing in and

using technology. but now he says the tech story is over. he says it time to move on to the next thing that would shape our fuser -- shape our future. newco has just launched a new media property in partnership with medium in order to follow the next big story. the tech story is over? what am i doing? john: obviously i've learned all about the great headlines. did follow the tech story because i thought it was not being well covered, i thought it was not being given its full do and the story of tech has changed our entire society. nexter, it's no longer the story over the horizon. i'm interested in that story -- what's the equivalent of the text to worry when we launched wired magazine?

the tech story is so mainstream that i'm interested in what the next story might be. emily: what about apple and the us the eye and the government struggling to figure out how to deal with new technologies? john: but that didn't take 10 months or 10 years to figure out, it took 10 days and it went away. emily: for now. john: technology is a core force of any story you might tell. it is in the oxygen of our ecosystem. therefore i'm interested in what the new reality might be that's changing the ecosystem. emily: what's the next big story? john: the reinvention of capitalism itself. you talk about solar and taxation, these are all going to one large story which is the

form of capitalism, the muscular american capitalism we have lived with for the last 70 or so years is faltering. i is not sustainable and don't only mean that in a green way. it's not giving us a society that is increasing return and we want that kind of society for our children and grandchildren. just launched a new media property that is entirely on medium to capitalize on this. what are you going to be doing there? placeit's an interesting to launch because it's a happy medium between the wild west and the open west. it's a very large platform which was not for publishing. it has a social network

underneath it and allows us to focus on what we want to do, which is to make out the story. "wired" takes which is to do longform journalism, we are very interested in that in the cogent analysis and focus on a week the cadence, we will release stories on a weekly cadence. emily: you have the founder of twitter commenting on your piece saying your magazine is now irrelevant. was pleased he commented on it. he told me that "wired" rot him out of nebraska and into silicon valley, so i don't want to say it is over. i'm still very proud to be associated with the. so much for you joining us. it has been great to have you for the hour. it's time to find out who's

having the best day ever. today's big winner is the chinese dating app maker, momo. shares shot up 30% after it was announced alibaba joined a group seeking to buy out the company. gain since 2014 and the stock price has more than doubled since a low in february. of, dropboxl line ceo to houston and the airbnb cto -- what do they have in ?ommon ♪

>> from our studios in new york city. this is charlie rose. rose: john kerry is here. he's the 68 secretary of state. after 28 years in the senate he succeeded hillary clinton in 2013. he brokered a landmark nuclear deal with iran. according to the new yorker carries admirers and critics alike describe him in similar terms. optimistic and dogged, undaunted by risk.