prince, is dead. first responders went to his home in minneapolis and found him dead in an elevator. president obama released a statement saying in part, quote, "today the world lost one of the most prolific music icons. , funk, r&b, rock , and he was a virtuoso instrumentalist, a brilliant bandleader, and an electrifying performer." and president obama heads to london and david cameron will hold a joint news conference with him. we will have coverage beginning at 11:50 a.m. new york time. sponsored peace- talks began in an attempt to end a year-long conference after

several other peace talks collapse. nearly 9000 people have died since the war against yemen started. we have 24 hour news powered 24 hours a day. i am mark crumpton. "bloomberg west" is next. emily: i am emily chang and this is "bloomberg west." coming up, alphabets and microsoft getting slammed -- anda that -- alphabet microsoft getting slammed and after-hours trading. joinedk costolo on who in the writing room this season

after leading twitter. and jean liu talks about g jim paying and -- about did chuxing china uber. alphabet's after -earnings shares. 18% and to that, it is looking at other bets. losses grew to $802 million. sales have improved. insight moments ago in a call. >> with regards to investments, the bulk of that is directed to

our fiber business. we hope to increase that and execute it in a number of cities. full: joining us now for a breakdown is adam berg, christie james,ames shock what -- and cory johnson. cory, i will start with you. what do you make of the results here? not a great sign. cory: i didn't see it that bad as far as things go for google. a $.5 billion in revenue and fantastic profit story as well from this company which we have come to expect, but if you look at this, we have seen some .rogress we have had double-digit racing, if i can recall, the cost for click is down only 5% and that had been getting worse. 11, -11, andative

the -13, so i saw that turnaround as something of a positive sign. maybe because google has a new category and new types of categories that talks about prices. with the number of clicks on the with that growing so fast, i didn't think it would be a problem for google. emily: adam, we want to hear from you. i havehis is the thing talked about the last two times are maybe three, that my big worry would be the cost for click is being propped up a little bit by things that i don't know that are entirely sustainable, looking at adding units and things of that nature. i think one of the good news is that thing that sinned are -- mentioned,

talking about faster loading pages and faster performing campaigns for advertisers. you makemes, what do of this, especially as the revenue moves to mobile? james: i'm going to have to completely agree with cory on this one, but the deadline is a myth. this is actually a pretty good result. you have 23% of growth online and when you take alphabet, it is only up 38%. what has been a headwind for this company for such a long time has transition to mobile and mobile behavior and mobile usage is now turning into a tail lwind olivia: mark: -- tailwind. you are going to see the pricing moving in that direction as well. makee pricing is going to a very compelling story as you look at a couple of orders out. talked aboutndar

what happens after ai. let's hear what he had to say a couple minutes ago on the call. what he is talking about, we don't have that soundbite, but he said we will leave all of our computing from a first two and ai first world in the long term. cory, what do you make of that? ary: i think that is justification for other bets, but it is so far off. it is probably a very interesting place to work and they probably have cars or balloons or discussion about ai, but this ad business is about what makes all of that possible. on earnings day, when we get a chance to look at this company, this cannot possibly get enough analysis because it is so important to see what is happening all over the world and it issuch a big business,

almost unimportant which is kind of on amazing -- unamazing of itself. emily: on that note, we have hasn that europe againstawsuits alphabet. james, how serious could this investigation into android being? ises: unfortunately, it serious, and this is the one risk that we encourage investors to keep in the back of their minds. occur,ed unbundling does you have a situation where you are limiting the situation to collect data and limiting the duration -- the division of advertising revenue and that is

a pretty significant risk. do isk what google has to to put this behind them as quickly as possible. settlement orn a giving up some of the perks that they have right now because the longer that it lingers, and this is an issue that seems to me at least that the eu is not making this about money but making this about principle and that could be dangerous in the long run. emily: it is not just this investigation by the eu but it is facebook which is commanding more and more dollars. is the very foundation of google's business under threat? adam: we have a unique view of that cycle and how it goes on. sometimes it might be facebook or snapchat or it captures that share and i think we are going through a phase right now where

google is going through some very innovative things on the app side. i would are clear bring it back to that ai comment. ai is becoming a very important component of advertising. that is an area of strength. a lot of digital advertising has to do with being able to predict outcomes and ai is a huge part of that and something that we invest in heavily here. it certainly ties very closely to the future of advertising. emily: all right, adam, thank you so much for joining us, james, thank you as well, and cory johnson, you are sticking with me to talk about microsoft coming up. now fbi director james comey described how much of the agency paid a third party to hack into the sambar to dino's shooter -- into the san bernardino

shooter's iphone. he said quote, "more than i will make in the remainder of this job, which is seven years and four months." he went on to say in his view that it was worth it. speaking of apple, take a look at apple's shares. it is officially in a bear market. it closed 20% lower than its latest high on april 27 last year. apple reported second-quarter earnings on tuesday. up next, microsoft's transition to cloud their services hits a speed bump. why pc sales are pulling down the company. we will look at their third-quarter earnings. ♪

emily: we're watching shares of

advanced micro devices surging in after-hours trading. there is a chinese estate-backed venture for service providers for the chinese market. they are trying to diversify away from areas where it is struggling to complete against intel and nvidia. they missed analyst estimates and they would restore growth on focusing on cloud software and it hit a speed bump with the pc sales. their profit came in at under $4 billion. they are down 24% from one year ago. they're steering microsoft away from the struggling pc market to the cloud-based market. the explanation of how this works. infrastructure requires

new approaches. this is not just the same thing we have done in the past. infrastructure is going to play a bigger part. emily: for more now on microsoft, we are joined by ubs managing director of software wehnology, fred still, and are joined again by cory johnson. cori, this is supposed to be the future of microsoft. from what you are seeing now, is it enough? cory: i think it is safely the future of microsoft and this transition has gone frankly pretty well. when it comes to cloud hosting, microsoft is a giant business out there doing it more than $4 billion in revenue. are doingconsumers safely along with azure and they

have a lot of success with the type of clients they are getting. google is third in this, but we don't have any solid numbers on this yet. they have been doing quite well. emily: now talking about the profit shortfall, our microsoft reporter just got off the phone with amy would, who is the cfo at microsoft, and she said it ch-up taxo cat expenses. she says what we are seeing is an acceleration into the cloud which brings them into a higher tax rate overall in licensing revenue. compute, and database growth doubled year to year. so fred, how do you see them weathering this transition to a mobile world? fred: this was a tough quarter and the guidance was a lot

tougher than anybody expected. so what is happening, in the cloud world, they need this up front and that is really accelerating for everyone. microsoft is not alone. whatwas a departure from they have been doing in the last couple of quarters, which is having really good numbers and actually showing pretty good progress. so this is a little bit of a step back. part of this is cloud and part of this is pc and what is happening with the macro likening in certain geos in latin america and the middle east. overall, if you look at what they are managing a what they're doing, they couldn't do it any better. transitionulti-year and we think, again, that nadel is doing the right thing in the product line and amy is doing the right thing as well. this is a step back.

this is certainly not what we are we think others would like given -- given- all of the guidance. rate is good. and the core operations were in line and the earnings were up i one cent, relative to the numbers if you look at the tax rate that she forecast, so i think wall street will look at that tax change. but she has typically been pretty conservative on the q4 guide, so when you look at q4 guidance, she took a hatchet to , relatively, so i think we are all going to have to -- emily: right. cory, how do we think about windows? cory: i think this is another guidance issue where we used the phrase earlier, sandbag, but given some light

guidance and it worked. microsoft has been a champion for decades in guiding low and being a little bit higher, but that guidance game is a big part of that and that is one of the things that we see under that current cfo. those windows numbers are coming out looking really strong. it isn't really striking in the face of the intel numbers from earlier this week when intel moved to the pc market and looked at their shares and they were taking a big hatchet to their workforce and cut 11% of their people and 12,000 employees and that is a very different reaction in the same market. what areickly, brent, you going to be looking for over the next couple of quarters? what you want to see from them? we said, it has moved from the honeymoon phase to the execution phase. trying to get closed

transactions so it is really about the transition into cloud. they have standardized the ifsonal computing ideas and you want to see that continue, that is their biggest of -- biggest business, is diverse fine pcs. in my opinion, the chatter that they were talking about last year, there is certainly a lot of expectation. can they do more innovation beyond office? and third, there is more infrastructure business, can they stand up against the dws? emily: we will be watching. brent thill, head of software research at ubs, cory johnson, bloomberg editor at large, thank you very much. at $14 perhares are piece in the first tech ipo of 2016. finally, according to people familiar with the matter, has provided

software to prevent and detect security breaches and operate in more than 59 companies -- 59 countries. tomorrow, we will be speaking with mike cody from the nasdaq. coming up, a changing of the guard from task rabbit. newill speak to their ceo. ♪

emily: a changing of the guard at taskrabbit. the head of the company step philpott stepped up. --sked her why he step down stepped down. >> the timing was just right. both of us felt like this was a good time. the business is ready to go to t step in the scale.

it was just a natural progression for me to take over and start the business at the next level. many timesve heard about her vision. what is your vision? is there anything you want to do differently? >> yeah, of course. i am still a part of the creating of culture at taskrabbit. i wanted to revolutionize every day work what we are still at the beginning of that and there is still so much more that we have to do. internally, we have to keep the culture, keep the best talent, bring in the best talent. but we also have to focus on execution. we are going to be profitable by the end of this year. we quadrupled our revenue at the end of the last year. we are going to get to profitability, but we have got to be disciplined in our cost and focus on excellence.

that is something that will be different for this company. emily: there is so much to say about the on demand culture now. how are yout and focusing on economics to make sure that task rabbit -- taskrab bit lasts? >> i think it is a big industry and this opportunity is huge. i still think that it is a matter of time before the market started to correct some of the ill yen dollar businesses and the resetting of valuation. reset of focus, being able to focus on sustainable business, focusing on economics, and that is something we have always had at a focus on the numbers. i think we are well-positioned to get profitability by the end of the year. i have never been anywhere where we were told that taskrabbit

shouldn't be there. now how do we make taskrabbit exist everywhere? numbers, young of are about huge diversity in regards to african-americans. how do you intend to do that? this is an issue that seems to be end damage through the industry and little has changed. yeah, we were planning on launching a diversity inclusion plan anyway. the congressional black caucus asked if we wanted to launch a tech plan and we said yes. they are really focused on being transparent and eating accountable. i think you can accomplish what you measure. by setting real targets in going public about them, most of the way we are going we are going we're hitting that goal. we are already 15% african-american on launching a diversity inclusion plan anyway. the congressional black caucus % african-american and our target this year is to hit 13%. theave the goal of being

average of the population. we should be able to at least do that. emily: how do you get to 13%? code40we partnered with two bring on interns during the summer. whooring, so for the people do come in, we actually are creating a program to help nurture their careers and focus on that attention. and then we are creating a culture. ture of taskrabbit is open and accepting hopefully that will attract more workers to us. emily: the new ceo of taskrabbit. we will be right back. ♪

mark: i am mark crumpton, you are watching "bloomberg west." hits formed at the soundtrack of a generation, was found dead in suburban

minneapolis today. no cause of the death has been released. postponed ao he concert in atlanta due to the f lu. prince, dead at the age of 57. prime minister and economic met concerned that sophisticated weapons from syria and iraq could end up in the lebanese group hezbollah's hands. town inition-held syria, the convoy was the first to reach the town in over a year. some one at a thousand people live in the area. donald trump was asked about south carolina's so-called bathroom law, which requires that people use bathrooms that

correspond to the gender on their birth certificate. he says there are cap little complaints -- there are little complaints with how it is. there is so little trouble. "a bigger splash -- powered by over 2400 journalists in 150 bureaus around the world, bloomberg'sumpton, paul allen has a look at the markets. paul, good morning. a nine week rally, oil is down, and the only market currently open, no surprises there. currently one third of 1%, and we are expecting declines from the u.k. as well. here in australia, they are likely to be mitigated in the price of iron ore, pushing to $70 for a third time. fortescu metals

trade is a proxy. bhp does not expect this to last, expecting it to fall. indonesia,k at australia's biggest number and thbiggest economy in southeast asia. the cash rate is currently at 5.5%. this is a new benchmark rate in august, they want better growth and communication, as well. am paul allen for bloomberg tv in sydney, australia. ♪ emily: now, to didi chuxing, largest -- uber's

competitor in china. about 40 million drivers and 11 million rides a day. by comparison, uber trails far behind, only in about 50 chinese cities, with a plan to expand to 100 by the end of the year. they have partnered with lyft for more global expansion. i met with the president of didi chuxing, to ask why they wanted to rebrand the company. jean: it is a much more broader concept, choosing these travel commutes, so we are serving the 800 people to commute, that is why it is called that by definition. in the united states, you are referred to as the uber of china, or the uber nemesis. how do you see yourself? jean: we are the 800 million

people with a variety of products. we also do taxi. and about 2 million of the 11 million come from taxi. a lot of very china-specific products. so you are currently in 400 cities in china? what is the next phase of expansion? jean: the next phase is to invest more in intelligence and mission learning, based on the 11 million ride scale. it should be machines making the decision, to get the system smarter and smarter everyday by itself. what we are facing now is a shortage in china in general. bloomberg, if there are 50 request going out, and everyone wants to go in five you would never be able

to match it. forget it, right? we want it to become smarter so it can predict the demand from the bloomberg building. before, the passengers sent out a request. when you have a demand we can match immediately. , we willthe network gradually learned for each particular area how many requests are coming out and how to move the drivers in time to match the request. emily: how about expanding outside of china? market,ina is a huge 800 million. we only have about 1% ride penetration. 5.5%, -- 1.5%, it is a huge market already. from a global perspective, how

can we help chinese travelers go abroad more easily? that is why we are launching a didi international product. a lot of travelers turn on the app and get access to a lift to service right now. it is very exciting. so that is our perspective. servicee can use our overseas. emily: what is your relationship with regulators in china? jean: that is a great question. first, the chinese government has been more and more open to us. it is a top issue for china in general. the government understands we need to utilize existing resources to put in to the immune system so people can travel around. there is a lack of an

existing system, so we're solving a basic issue. number two, on our platform there are 4 million jobs -- opportunities created, on a monthly basis. is a lot of restructuring going on, people will lose jobs. so 4 million jobs means a lot, and it is growing rapidly. third, the environment during when we do carpool we are putting more people into one car. that allows us good at talking points with the government. emily: what are the financials? how much money is didi losing? are closer to profitability than ever, thanks to the improved scale. we have achieved efficiency. you, atan share with

the end of laughter, we still had $3 billion on our cash balance, and we are closer to come we are finishing the closing of the second round at this time. so we will have abundant cash on our balance sheet. emily: what you think of the future of the ride sharing market? player market, a one player market, or a multiplayer market? jean: we want to make sure we are providing a unique service to our users, our passengers. a lot of questions will be on competition. but from our perspective, this is like hurdle lifting. you don't go aside, you will fall. this, yourun a like run with a focused target. emily: what motivated you to

invest? lyft cares a lot about community. their product is very innovative, they are the first here, and theyng have been growing magnificently recently. they have almost doubled their market shares. i know in san francisco here they have reached market shares of 50%. grew 50%quarter they as well. we are very happy with that. many: any estimate of how of your american users have taken advantage of the partnership with lyft? jean: it has just been three days, so i cannot say. but it is very promising. didi many times when i was in china a few months ago, and it was a pleasant experience.

experiment in switching back and forth between didi and uber. hbo's satire "silicon valley," returns. we speak with mike judge and dick costolo who joined us in the writers room this season. ♪

emily: hbo's hit show "silicon valley" comes back for a third season. i sat down with the executive producers of "silicon valley,"

mike judge and alec berg, along with dick costolo who is a consultant for this season. i started asking about the fate of richard hendrix, the main character who was fired by his company at the end of last season in a epic -- an epic cliffhanger. >> when we did research, we wanted to see what would happen if a guy like richard got fired. all the engineered wondered -- all the engineers wondered if it would work. and others aside, yes, we get rid of founders all the time. so people have different ideas of what reality would be. emily: what was the dose of reality you brought to the writers room? would be hard to understate my influence on anything you're going to see this season, other than sitting in the back room and saying you could totally do that, that had

absolutely happen. you could do worse than that. emily: anything you said no? dick: very rarely. you could make it more dramatic than that. having aat was a like real ceo in the writers room? >> it was amazing. we get stuck a lot, and oftentimes we have to call people to ask them whether it would really happen or not. having him in the room was amazing because as we were thinking things, we could be looking at him to ask if it is real and if it would happen. emily: you are in improv comedian by ground, i imagine this was fun. about three weeks -- i have an idea for the line, but everyone in the room is so talented and funny, coming up with these amazing things, it while ild before -- a

before i was back in the room. emily: and you drew on your own experience leaving twitter? dick: and replacing people at twitter. not onlyeat because did i get to be a programmer, but big moves of people being fired and hired. >> all the ins and outs of this world. mike: we had already the twitter book. going in i find myself the book, no, he is right here. emily: on that note, you talked about how you had to deal with a lot of public scrutiny as richard and pied piper. twitter has been for trade in a certain way by the media by is it asuthors during dysfunctional inside as it is portrayed in public?

dick: i think the reality of what goes on in these companies is a lot different than however it is per trade in the media, whether being portrayed as things going amazingly well or as things being really dysfunctional. the reality is always completely different on either side. twitter is responsible for driving major changes in the way we watch television, the way we consume media. when you guys were building the show, what did you think about netflix and amazon, and why did you decide to go with hbo? >> it was always going to be hbo. they were pitching me the idea of a show about gamers. thought aboutve that, but i don't know that world well enough, and that is a world where if you get it wrong, boy, they will you alive, those people. [laughter]

i thought i would stand a better chance against programmers. so it was always going to be hbo. emily: what you think about binge viewing? would you want to put all the episodes out at once? hbo'swho knows, that is decision. and there is hbo-now, and it is all changing. emily: how much greater freedom to they give you guys? jokesy say only two dick this season? cap the dicko not jokes at all. there are no issues. emily: one of your writers for cy" tweetedidiocra that they did not expected to become a documentary, a jab at donald trump. he surprised by how far donald

trump has made it? mike: yes. i am surprised. emily: anyone? anyone? how about this, next felton who wrote a twitter book, alleging that silicon valley created donald trump, specifically social media. and we know how often donald trump uses twitter. what do you think of that allegation? mike: i think he knows how to use those platforms. donald trump, i am referring to. he is quick to tweet very early in the morning -- quickly before the press .ycle, so he can be ahead of it he has an understanding about how to think about and leverage these platforms to his advantage. emily: what about pulling the plug on social media entirely to

prevent a donald trump nor'easter? without too many spoilers, give us a preview. we pick up where we left off, richard was fired. go back in, start his own competing company, that is where we start. .e also did a ton of research those of the questions we were asking. alec: what was the repercussions be. emily: thoughts of whether we are in one or not? mike: we were talking about this as we researched it.

you would hear them talking about whatsapp and flipping the value of users, and i would take him are we in a giant bubble? mike: i probably should not talk about this on bloomberg. but we would say if the bubble hits, we will go on. like nine months ago, because we were writing about it. andetween when we shoot it when the bubble burst, we're suddenly a period piece. emily: you're not just in the writers room, but real venture capitalists. what do you think? >> about whether we are in a bubble or not? it has adjusted over the past several months. and there was a great piece about it this morning. re-: about financings and caps that are coming, and how

financers will have to get used to down rounds on these companies are in -- companies. those kinds of things are good. emily: so you are a coach to young founders, what are you telling them about the environment? dick: we tell them to be more thoughtful about how they are spending money. he will probably get worse before it gets great again or easy again because people are being a lot more thoughtful about not going to far. you have to be more thoughtful about how you spend and keeping costs under control and thinking about things like gross margins a lot earlier than you might have, two or three years ago. emily: so you're working on something new in addition to investing. what can you tell us? dick: building a software fitness, 5-10roup

people working toward common goals. should have something to show in a few months. emily: the premier is sunday. are you nervous? how you feel right now? what is done is done at this point. mike: nothing we can do about it. emily: how long do you want to keep doing the show? alec: as long as it stays interesting. think of things as the way alcoholics do, one day at a time. we write the season, we rarely talk about what we are going to do next season, because it is daunting enough just doing one. these kinds of series tend to go, they tend to go six. that would be great. emily: here that, pants? it could go six more seasons, if

mike judge has anything to do with it. ,"e writers of "silicon valley along with consultant dick costolo. ♪

emily: elon musk may have a plan to curb the city traffic. workingtly hinted he is on a self driving vehicle that could replace buses and other public transport. tesla has been pioneering self driving technology with semi autonomous pilot features. warren buffett has also backed initiatives to rollout electric buses to cities, including seattle. plane onceowered again, flying from hawaii to california as part of its around the world voyage to raise awareness for clean energy technology. the plane is now in its ninth

leg of the journey will finish it trip across the pacific and landon mountain view, california and about three days. and, who is having the best day ever? dish survivors. -- subscribers. on the deal, it makes these , shares of alable viacom rose, the biggest single gain since 2008. and that does it for this edition of "bloomberg west." secureworks tomorrow goes public, we will have the ceo. ♪

♪ >> from our studios in new york city, this is "charlie rose." >> good evening, i am al hunt, filling in for charlie rose, who was on assignment. we will take a look at last night's primaries. donald trump got control, beating out john kasich and ted cruz. trump won nearly 65% of the vote, capturing around 90 of the 95 delegates. clinton one over 63% of the vote. the margin of victory letter to