current watchlist. officials say it's still too early to tell what brought down the paris flight which had 66 people on board. fallina governor mary has vetoed a bill that would .ake abortions a felony mr. trump, who in 2000 afforded eight small weapons ban -- n assault a weapons ban said he would not let them down. the white house was placed on lockdown for about an hour today. president obama was not her at the time of the incident. mexico has approved the

extradition of joaquin el chapo guzman to the u.s.. pictures you can still be appealed. global is 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. bloomberg west is next. ♪ emily: i'm emily chang, and mrs. bloomberg west coming up private investors and had an insatiable appetite for shares. but it secretive, private stock fell. a look at what happened. and shares are through the roof after fine materials beat on quarter to earnings. and ken instagram take on the likes of amazon and google?

competition in the grocery delivery market heats up very but first, to our lead. ate tech stock has called off an opportunity for investors to buy for shares. be minimum funds would not selected for this deal, and as a result the sales team began to inform interested clients about this fact. here is how the transaction would have worked. investors show off $100,000 for stake until of their goes public uber goesuired -- public organs acquired. we get a glance into the complicated start investing.

running his mouth for more is our news reporter eric newcomer who broke the story, and our guest host for the hour, for evernote ceo phil litton. what happened? for uber andemand they wanted to sell. it is a very publication financial vehicle. it is a fund that was in dust and other funds. they say they could not get enough interest. i think there is also uber actively policing what is going on. emily: did they not get enough interest, did they get discouraged from doing this? >> i have not gone some of my documents. they said the deal was off. they have been briefing people on it as recently as last week. people and after

they think they are allowed offering. emily: what is your sense of what happened? >> i think the private secondary markets are hard to make anything out of any particular action. sellers, but it is traded at fair value, in private .ector it could be anything the deal just did not happen. emily: where were these going to be shared? >> it is not clear. it was not in the financial document with the buyer. there are 10 pages of risk factors, but they do not say much about uber the company. abouto we have to think this already, gated investment structure just to have access? emily: this is of the facebook

ipo, the sec started looking into it. mary jo white had this to say about secondary offerings back in 2012, warning of potential challenges. to avoidhould be taken these issues. in the new secondary market that is emerging, structured largely around derivative contracts and other novel ways to capture certain economic interest in the pre-ipo company without actually transacting in its stock. depending on the structure of these derivative deals, errors and misconception evaluation could be amplified. bether to leverage or simply on faulty valuation. emily: that the sec be concerned about any kind of secondary offering? >> this is an area that will have involving regulation and legislation to secondary offerings are good think of it is to give employees, founders,

private holders a way to get some liquidity and longer-term healthier companies. but it is very much in the early stages of regulatory. emily: facebook did a lot of secretary operating -- secondary offerings. certain point, they had to go public because they had so many investors that when they did go public with a price to not live up to what it was on the private market. it took a while. they ultimately recovered and shares have tripled since then. but is this a dangerous phenomenon? is whatong-term trend secondary companies do. it gives them a long delay to go public. that is good for technology companies, because markets are so short-term focused, and tech companies need to plan years ahead. they need to have a stable business before the go public.

secondary offerings are a big part of that. there are also the big opportunities. emily: paulo long will be before the employees and investors can get real liquidity? >> i think the company is starting to entertain processing secondary. a lot of the employees have joined more recently. in terms of a public offering where the best majority is real liquidity, it could be years away. i think the ipo is what people need to focus on when they think about liquidity, and that is still some time away. how difficult is that for the people who have been committed for years and years but have not seen and i said? >> it is tough. talent andtivator of

financial. it is always a distraction to think about your share price. emily: it is a story and will keep following our bloomberg .ews reporter story, repricing stock options without shareholder consent, a move that is a urgent in the event, or in an option exchange program. the decision is to protect shareholders while providing an incentive for talent stay at the company as twitter stop i stumbles. remember back in october the ceo handed over a third of his twitter stop to employees and shares were trading at around $30.

--y closed at $14 and $.43 $14.43 on friday. coming up, applied materials shares sewers the most in seven years after reporting earnings. what are investors so excited about? for, in the age of uber everything, do we need so many on-demand delivery startups? why these companies will stand the test of time. ♪

emily: applied materials shares jumped through the roof on friday, the largest gain in seven years, after pleadings and

eating earnings and revenue estimates for the second quarter. a whopping $3.45 billion in new orrs. the company's machinery is used processors andor memory chips that are of the heart of the iphone and flatscreen tvs. here to discuss what is behind those booming numbers is the ceo, joining us from applied materials headquarters and santa clara. with me is my guest host for the hour. reported in over 50% rise in orders, while the rest of the industry is saying it is going to be flat. how on earth is that possible? has you said you all orders were at 3.5 billion dollars this last quarter, and we also guided than the higher highest earnings we'll never had in the history of the company. really a tremendous performance. an industryly not

story. this is an applied materials story. we are seeing some of the biggest changes we have seen in decades in memory technology, were applied is the best positioned company to enable these changes. we're seeing big changes in the display industry moving toward organic led. and also china is another big wave for us. all of these areas, memory, the display, china are really big changes, big inflection. we are the early innings of those changes, and it is really a unique applied materials wth in relative to gro the inflection. emily: is it the iphone driving this record level search? really the change in the mobile products to organic led displays. what we're going to see is used

transition over the next couple of years. that will drive a massive change going from lcd to organic led, flexible displays. technologyovides the , the new materials that enable this major wave that is coming in mobile. this is a unique apply story. we are the best positioned company as this transition happens. inthere is a lot of interest cultural reality. that may become mainstream. do you think that drives additional technology? you heard this week a google talking about virtual reality. i do not know if you have had a chance to experience any of these types of virtual reality or augmented reality devices and the applications are really fantastic.

what they are talking about to enable the devices and have an experience, a great user. it's, they are moving toward organic led. i think we are in the early innings of this particular inflection. we are working with companies, big companies on second-generation third-generation technology that will make the experience even better than what we see today. definitely, this is another one of the drivers of the display industry. aily: you talk about china as strong driver of growth for chip machinery. are these domestic companies or foreign companies moving the action to china? >> we have doubled our revenue in china over the last two years. what we had the is very strong growth. we have very strong positions in china. applied materials was the first company to establish a presence in china. 30 years ago we opened our first office there.

the team we have, the relationship we have with us domestic and multinational companies is really outstanding. certainly, we are seeing growth in terms of domestic companies. ,ut you also see many companies multinational companies, establishing a presence. we expect that we are still in the early innings of phenomenal growth in china. it is our strongest region, relative to market share and applied is in a great position as this wave moves forward. applied materials ceo gary dickerson, thank you for joining us. now, to this day in tech history. on this day in 1873, and francisco businessman levi strauss and jacob david were given a pass to create work pants reinforced with metal rivets, marking the birth of one of the world's most famous permits, blue jeans.

years, levi, 143 and google are partnering up and announcing a new connected jacket. the smart jacket will allow errors to control their music to answer phone calls, access navigation and more all by tapping and swiping on the jacket sleeve. coming up, we will run through the other big edges to come out in google handles developer conference from ai to virtual reality. ♪

♪ >> we are watching chinese inner companies spike 5% in trading. google is in talks about a potential partnership.

with this partnership, google could expand its influence in china. and staying with google, the developers conference officially wraps. making progress on a ai assistance that can be accessed with a messaging app. how soon will these investments pay off? we break it all down. they spent over 10 years and google and helped to launch google fiber. google announced a lot of things. what are the things that stood out to you must? >> i think is a little list about any particular product that was announced, and really google painting its vision of the future and of innovation. and i think what i was at google we talked about larry page is 10 times that are -- that are

mentality. driving spirits or artificial breakable with the talked about was a better way of interacting with the world. emily: i know you are obsessed with this, something you have at closely. what you think? >> i think the ai is the new platform. to havethey are going this is the next level of growth. emily: but aren't they going to be challenging for google's ad model? will challenge them. >> and began's are in trouble in the long term. -- closer tocloser what people want, it is harder to inject with people do not want. great,ink it would be fine if we up and the advertising model. i do not think we are way to

having to click on and out in pay for that impression. emily: what about virtual reality? they have this whole new ecosystem, daydream. what you think? >> i am extremely excited for it. demo, have ever done a and you are roasting at a boxing match, and you hear the crowd roaring behind you, i think that is the future. i like that they are building a platform for developers. onhink it enables a lot juvenile spirit and a lot of startups can go out and build on top of the platform. emily: it is actually kind of exhausting because it is so realistic, but it is still very crude, at least the demo that i tried. obviously, this is something that facebook is already deep in. apple is looking into virtual reality. how are they going to win in this space? google's position to

make a great product. going fromy are impressive to being fun. i have had a load of the vr experience for a years, and before it was just tiring and nauseous. this year a lot of the experiences are generally fun and enjoyable. that is how we know it will become mainstream. >> what about google have versus amazon echo? >> it is a different way of interacting with the world, and that is exciting. we are going to talk at half -- and have context that google can provide better answers. many google products and we'll had he not before you knocking around, and i think it is not about being first to the space, i think google has a lot of similar dna to amazon in a lot of ways. it was a nice shot out. google.s a high bar for

amazon did a great job with echo. it is great to see google in the space. emily: i love amazon echo. a lot of these things are will will but which of them are the most likely to turn into an actual business? systemsnk google underlie all of this. i think that is where they are putting their pets. but it will be banking business, and it will have to figure out how to monetize itself i do not think google's dna is about doing something good for users, and monetization will follow. it will be interesting to see how that works for them. >> as the cofounder of shift, are you buying and selling used cars, and google is working with self driving cars. do you think the whole concept of car ownership will change fundamentally? >> yes. when i was a google i got to take the old version of the self driving car home sometimes.

it was great, but it was essentially like a more sophisticated version of cruise control. you take your foot away from the break, because you would want to step on the right. but our ownership is not going anywhere. 60 million cars are sold in the u.s. every year. but when it happens, they will be happy to buy and sell your a time as vehicle. -- autonomous vehicle. emily: we didn't hear a lot about cars, is that something? >> i think you'll be seeing them more than we will be hearing about them. technology ceo, thank you for joining us. a longtime googler. next up, we dive into the world of food delivery.

we will hear from the ceo of instant card about what he is planning next. and if you like little news to is on the radio pretty good now listen on a bloomberg radio after, bloomberg.com, and serious xm. ♪

mark: i am mark crumpton, you are watching bloomberg west. european security officials say egypt airfest for eac

flight 104 contained no known names on the terror watch list. official status too early to tell what brought down the terrorist to cairo flight on thursday. it has six seasons people aboard. -- 66 people aboard. the reclaiming of the small western talent by iraqi forces is being seen as a symbolic morale booster. islamic state had occupied the town for the past two years. the iraqi army says the main road from him on to baghdad, a significant economic lifeline for iraq american now be reopened. european union nations have agreed to make it easier to suspend its visa waiver program with some countries. it comes as turkey is trying to secure visa free travel for his citizens. the so-called suspension mechanism when called into play to ensure security. it would apply to georgia, ukraine, kosovo, and turkey. british prosecutors say the man who climbed over a buckingham palace wall and wondered the

grounds or 10 minutes on wednesday was a convicted murderer. the intrusion triggered a police week with dogs and a helicopter before he was apprehended and detained. breaches of how security have happened over the years. after a briefing from health officials, the president told reporters lawmakers have to in his words, get moving. >> this is something that is solvable, that is not something we have to panic about. but it is something that we have to take seriously. and if we make a modest investment on the front end, that this is going to be a problem that we do not have to deal with on the back end. the president says researchers need time to develop a vaccine, and dates meantime to strengthen mosquito control programs. years ago donald trump called for a ban on assault weapons. today he received the

endorsement of the national rifle association. he told the group's convention in louisville, kentucky, that rillary clinton has he sights set on the constitution. on saturday, mrs. clinton addresses the trayvon martin foundation in fort lauderdale, florida. martin was the owner and black teenager who was shot by george zimmerman in 2012. global news, 24 hours a day, powered by our 2400 journalists in more than 150 news euros around the world. i am mark crumpton. ♪ emily: what is next for the food delivery sector? direct, new, google

players have burst on the scene. the sector attracted a lot of investor attention, but recently interest has pulled back. at the end of last year and card instant card -- layout 12 please. was gross margin probable and renewing ties with whole foods with plans to expand into new markets together. we went behind the scenes with them; for the foods store to see how the partnership works in practice it. under a five-year partnership they plan to expand into more u.s. cities and by year end they say they will have dedicated shoppers in more than half of all whole foods stores. they say they will deliver more groceries to american homes than anyone else. >> that us to think long-term. five years in the life of a

startup is a long time. it gives us that experiment on more audacious new projects. it is a marriage of expediency. littelfuse can count on a steady flow of orders from instacart just as the company is facing, ship retailers moving into organic foods. and its stock is more than 28% lower than it was a year ago. >> we can more intelligently route each particular order in the most efficient way possible. that way we can send a driver with multiple bags on a route that might have only making stops in the same neighborhood. with scale comes in a lot of extra efficiency. gett is a definitely balance, keeping quality out while the metrics that really matter are's beat. being speed. is this pretty instacart closer

to profitability? still has to prove it had real staying power. more, the ceo is here with us in the studio along with our guest host of the hour. how has the partnership gone so far, what have you learned? >> the partnership has been phenomenal. we have launched the partnership in 2014, and there are two main reasons for that partnership. one was understanding that there is demand for product, and the second one was understanding how a potential partnership with whole foods could work. and the results have been phenomenal. we have grown tremendously with whole foods. and today we are delivering from hundreds of whole foods stores across the country. andin many of the stores

many locations, up to 15% of their volume now comes from instacart. the demand has been incredible. in terms of our partnership we really work together in a very productive way across the organization. we are integrating really well with stores. >> how much of your business is driven through whole foods? >> i cannot go through that detail, but i can share that whole foods is a partner that is one of the only partners that is actually present in all of the markets we are in. we will be expanding to many more areas. emily: have they actually invested? >> i cannot comment on that. >> i have been using your service if you years. a newced you have service. whatways shows a close to

i ordered, but not really. how do you compete with that? the fact is none of those stores actually know what is in their store at any given it in time the way we actually get is throughd predicting what is in stock at any given point in time. to give you an example, we know the likelihood of yogurt being in stock at whole foods at 6 p.m. on a sunday. and we're getting better. we are getting better with the

data we are collecting every single day. >> are you getting -- making bets that friday is more important? >> the variety is important, but the debt is when a customer order something that they should get that delivered. we believe they get what they ordered delivered, and we are working on that. the majority of the orders, that is the case. when a customer order something, they actually get that. in some cases that is not the case, and something we want to reduce. selection, wee have millions of items that are available to a customer and that is not the same with many other services. emily: how do you respond to get skepticism around the food delivery market, and this is a new generation? >> i think the skepticism is healthy. i think that the questions people are asking are important

questions. did the economics make sense for the business or not. that is true for food delivery, and any other business. about it ishink that as a company overall on a gross margin basis, our unit economics are working. we do more and more deliveries and we are making more and more money. in,ut of the 22 markets are we are making money in those markets. we are quite confident about these. emily: what are the gross margins? where are the margins the best. he was cities are you most profitable? not disclosing what markets are most profitable, but as you can imagine, 15 out of the 22 markets are growth margin profitable, and that is essentially all the market that have had the 10 year investment in instacart. they are getting profitable more and faster.

indianapolis was a market we lost a few months ago, and it turned profitable in the least amount of time ever. when you are new markets are turning profitable faster and faster. >> the rise of all these conversational ways of opening -- ordering, an opportunity or a threat? developingill be over the next few months as more and more companies build innovative growth. this is something we have experimented with, and understood what the experience can be like. but the reality is when you are ordering hundreds of dollars of worth of groceries, it is good to go through the experience of finding an item, looking at it and crossing the related items, understanding and looking recipes, and being inspired by the recipes. we find that experience is very

important. one of the things that we look at is how do we reduce the time to order. that has been going down over time. youy: class of are converted a lot of your contractors to part-time employees. how have things been working out since then, how much shopper and delivery turn to you see in how you deal with that? we are very proud of the fact that we converted a huge portion of our shoppers into part-time employees. these are the people who are in the stores, in-store shoppers. and the reason why it is important for them to be our time employees is because we promise the customers that the groceries they get their door is going to be picked that are like themselves as well. how do you create that? you create that by making sure the people who are picking the groceries are aligned with the culture of the company. and we are able to train the shoppers, ride the regular coaching.

you can do that if you have the control you do when you have part-time employees. it is working out really well and we will be growing that. kevin chu also change the rules for shoppers, and what they where and how they listen to music? how's that working out? >> from what i understand we have not change the rules about their music references. emily: when they listen to music. >> we make sure our shoppers are delivering a high quality experience. they are doing that with high efficiency. that is what is important for us. if there are any changes, those are in line with that. that is how we think about it. ceo, i use your service all the time. thank you for joining us. networkp, a new social news and content. we will talk with founder and ceo on his latest company.

emily: from san francisco and silicon valley, we are covering the stories that are changing

everything. >> connecting everyone in the world is a challenge of our generation. emily: talking about things today you will be talking about tomorrow. ing about the biggest debates. innovation, technology, the future of business. onomberg west, bloomberg television. service,e social news the first network of newsletters. this product release comes in the mist of a heated debate between facebook and conservatives over social networks responsibility to users when it comes to disseminating news. is the ceo. coutu, rightng after e-mail. in the morning, it is the second thing i look at.

>> i checked. i see that you use every day. thank you. see a lot ofn information about me. that is interesting. is that an invasion of my privacy? whatlot of services know you're reading, but hopefully they are not sharing. we are very strict. it is all about people consciously sharing things. you only see stuff that they tweet and retweet. see this. people are on e-mail for six hours a day. i all love twitter, you know

am on twitter all the time, because people don't use twitter. people will be a use our socially curated newsletters to reach people in their inbox can even those who don't use twitter. my comes to facebook review a lot of fans are a lot of them will not see it, it gets filtered out. if you are in somebody's inbox, you have a direct relationship with them. >> i am one of the people on e-mail six hours a day, and i hate it. are you going to make that better for me? are going to people a chance to cure rate and subscribe to newsletters that people are curating, and getting newsletters that they are not getting now. it saves these people time. it is a way to find hand-picked, curated selections about those people who are in the -- experts in the field. sixher people are using a hours a day or not, it is just in their inbox. being in their box is a good thing. >> how much curious and can you do with ai, and how much has to

be people with taste? >> our approach does not use any ai. it a lot of people, they open up the cap, they get relevant news, and we're using a social approach to that. some people think it is so relevant, we much be doing other things. the us and we are using machine learning, and we are not. done extremely well, it is effective. an ai where facebook or other comedies are using algorithms to determine what people see, we do not do that. >> so there are humans? journalists tod the editors. secret software. you guys share things, and it is aggregated automatically in the feed, and then the user who creates the newsletter will take a few stories they like, and that goes into their newsletter. it is all people powered. emily: what is your take on the

facebook trending controversy? >> the reaction is not in the trending area. it is in the newsfeed. if i was a publisher, i would be a little bit nervous about relying on that traffic, because they could tweet that algorithm -- tweak that algorithm at any point. you know why you're seeing it on rf.he lau your friends shared it. thatll be the things that person chose. you'll pick a few stories, and you will know why you are seeing with facebook, they as a company are deciding their algorithms, and you are at the mercy of that. unbiasedn it be lately -- completely unbiased?

>> and unbiased is not even the goal. it is a little analogous to google search out rhythms which they change over time, and that affects certain companies going up and down in the rankings. we had humans making the choices, but it is explicit if you expressly subscribe to his newsletter, you know he is making the choices. emily: how do you make money? the first step is taking the fact that we have aggregated a whole bunch of newsletters altogether, and being put ads or other things with that. no one has built a network of newsletters before. you can imagine, it can get pretty big. influencers all had 1000 people subscribing. you could be in one billion inbox is a day. perhaps you want to promote something and ask us both to promote.

>> do you have any tips for how we stand out? >> a lot of customers use traditional systems that we send these over and over again. people create fantastic newsletters, and they are great. but people get up and work on this for like three hours every day. a lot of users are not going to be able to do that. what we can say is you can do that automatically. doing it by hand is a lot of work. having fresh content in your newsletters is actually really hard. emily: thank you so much for joining us. we will be right back. ♪

emily: i'm emily chang, and this is bloomberg west. a study conducted by three harvard scholars says that china fabricates about 488 million

social media comments per year. the goal is to distract citizens around periods of unrest or to shift public opinion. into the request on monday. we will hear from one of the harvard scholars behind this finding. .ack with us, my guest host he is a catalyst investor. do you know what i'm reading in my evernote? >> i have no idea. our employees cannot see it. emily: good to know. the environment and touched on it with uber at the top. so many funds have raised aliens of dollars, but there seems to be a pause in investment. how does this play out?

>> it basically means that there is a really bad time to do any kind of they need to business, but a great time to do something new and foundational. the causes are really really important companies get made. the last time there was a pause was 2008. then we had smartphones and social. ,hat is when evernote, uber dropbox all got started. emily: so when does the hose get turned back on? >> i think it is happening now. ist is going to happen original companies are being built right now. the next nine to 18 months we will start launching, and you will see the same kind of inflection based on that that you saw in 2009, 2010 based on the past. general catalyst, founder of evernote, thank you for joining us on the show today. to have you here for the hour.

it is now time to find out who is having the best day ever, and today's winner is apple ceo can cook. -- tim cook. he is getting the rockstar treatment on his first trip to india. followed by reporters and photographers everywhere, and hopes the publicity turns into sales. india is mostly untapped territory for apple. the apple ceo wants to lower the price of iphones in india, and sell preowned devices that are refurbished. that does it for this edition of bloomberg west. monday i will be joined by a new guest. have a wonderful weekend. see you next week. ♪

♪ announcer: from our studios in new york city, this is "charlie rose." we are going to want to have the four corners of the airplane, so to speak, the wings him of the nose, the tale, and look at the evidence, and that will help them understand the sequence of events and also we are seeing the flight originated, if it was a failure, or an explosion. they can get that information from the physical evidence. charlie: also this evening, john dickerson on the political race in america. john dickerson: republicans do not want