the death penalty against dylann roof, charge for killing nine black parishioners and a south carolina church. attorney general loretta lynch wrote the nature of the crime and resulting harm compelled the decision. president obama says he has concern about the at non-'s human rights records. you made the comments during a speech in hanoi. president obama: the right i speak of a believe are not american values, they are universal values written into the declaration of human rights. rightshree human activists were reportedly prevented from attending the president's speech. pakistan will conduct dna tests on the man killed a drone strike to determine if he is actually the taliban and chief. kabul, and senior taliban commanders have confirmed his death. beginning in 2017, beijing will fueltute china's toughest

quality standards which could cut emissions in the city by 15% news 24 hoursobal a day powered by our 2400 journalists in more than 100 ft news bureaus around the world. i mark crumpton. "bloomberg west" is next. crumpton.k emily: i'm emily chang and this is "bloomberg west." to spinning out a business merge with another company. what it means for the company and meg whitman. toyota gets into car sharing -- it's the latest car maker invest in a ride hailing app. we will bring you the latest of it tied up with uber. and pebble out with its first ever non-watch device.

can it move into health tech like the apple watch and should it? hp enterprise shares are surging in extended hours. this is half of the old hewlett-packard still run by meg whitman and focuses on storage and servers. they are spinning off and merging it with computer sciences core in an $8.5 billion deal. the name of the company will be announced at a later date. joining us is our senior intelligence reporter. what is your take away on this deal? is it something that was expected? guest: it wasn't expected, but it makes sense. one part of the entity focused on hardware, predominately servers and then finding a network to exit the services business to a company that focuses on exactly that portion of the business.

it is a good strategy. on acuses the company smaller piece of the pie but the risk is you have an extremely smaller pie you are focusing on. predominately selling to corporate i.d. systems. will that be the long-term revenue growth area? we need services to bolster that, so it remains to be seen, but in the near term, this eel makes sense. emily: what does it mean for meg whitman? guest: it gives her a sense of focus. the results bear itself out. theas done well and after announcement of the spinoff of its services business, the stock is up and at the end of the day, cash flow has then improving. these are the measurable results that she has improved or things that have improved under her watch. she gets credit for that.

deal: this unwinds a bad done under mark hurd. when you look at the area today, anything else that we should be watching in the new hp? guest: at the end of the day, this is not a company that is either piecemeal or together will post incredible growth rate from a revenue standpoint. this is modest revenue growth at best, coupled with heavy cost cuts from time to time, coupled with some acquisitions and investors. growthly the earnings rate is slightly better than the sales growth rate and a good amount of cash flow being thrown off. this is the way we have to think about hpe and hp ink in peace or as a whole. emily: our bloomberg analyst.nce senior thank you for weighing in.

more automakers are backing right hailing apps. toyota is making a strategic investment in uber and will offer car leases to uber drivers. the company did not comment on the size of the investment. this comes on the heels of volkswagen investing $300 million in debt on a company in israel that offers rights for as low as a dollar and includes delivery of goods. they made the investment to move digital offerings and move beyond the diesel engine manipulation scandal. gm bought a 9% stake in lyft in january. the sea activity has seen a drop off. the to talk about that is 500 startup cofounder and in new york, my guest host for the hour, david kirkpatrick. invested in an

, the number of southeast asia. what do you make of these new infusions of capital into who are competitors and uber itself? guest: i think you see a couple of things going on. uber and others are going to be and it will is this be multiple winners and multiple different geographies. david: i think that is one of the things people are finally realizing. bet it doesn't seem to playing out collectively. sense for these companies because they are hedging their bet. they don't know how mobility is inng to evolve and they are

the business of selling a piece of hardware and they may not know where the business is going down the road. you question the $62.5 billion valuation? guest: it is hard to say how big the valuation is going to get. it is a large market. lots of people use cars. logistics, get into that business seems to get larger. what is unclear is how much that is going to eat into manufacturers and selling cars on a traditional basis. without question, those folks are scared and tearful and are hedging their bets by investing in companies doing ridesharing. make of thedo you fact we are seeing more traditional automakers, not to mention apple, which invested a billion dollars -- it's not the typical silicon valley vcs who

have raised billions of dollars but are not ending it yet. david: i think it is to the credit of ford and gm and now toyota and the w that they are getting in with both feet. they have to understand these dramatic changes digital technology, mobile and these other things are bringing to their industry. how thisally knows industry is going to evolve. smart companies despite their size need to be doing this. we have been talking a lot about the vc environment, down round and flat rounds and yet we see these big rounds in established players. are we seeing a bifurcation in the startup funding environment? guest: i think there are people doing small investments early, trying to get in very low

valuations when things are just getting started. then there are folks who want to get in after the market has proven, hopefully after they think valuations are not going to go down any further. both are reasonable strategies. there's a weston these days about whether companies that are a billion-dollar valuation are going to keep going for ever. there's probably a potential for them to go up and down. those may be are not as people might like to think they are. tech crunch is reporting snapchat is raising $200 million and a $20 billion valuation. have confirmed they are raising a round but have not confirmed the numbers. david: you cannot just overgeneralize. thechat is breaking out of

pack and if there's any company you can say is trying to be the theytwitter or facebook, legitimately have enormous excitement around them. they don't have much revenue. are getting athey lot of investors excited. you are both sticking with me. coming up, the internet is abuzz over the latest issue of "variety" with marissa mayer gracing the cover with the headline "the end is not a." the latest on yahoo!, coming up. ♪

tim cook madeter

his first read to india to push along the companies land to launch retail stores, apple may have hit its first setback. we have a look at apple's plan and why the indian government may not go for it. >> apple ceo tim cook is just back from india. you met the prime minister and open a new office in bangalore. to open localn retail stores could help the iphone maker boost sales in this potentially massive and fast growing market. morgan stanley forecast that by 2018, india will account for 11% of all smartphone shipment and a market could grow five times faster than china. right now, india accounts for just 2% of iphone shipments. india iself has said like china was a decade ago, but there are already signs his trip a not have paid off.

india has strict rules for foreign companies wanting to do business there. with aes have to comply rule it says 30% of the components of its devices must be bought in india before apple can open its own stores. right now, the apple supply chain is based mostly in china. apple wanted to be exempted from this rule and india does sometime give waivers but sources say they don't think apple qualifies. overturn it but if not, apple may need to find another way to crack the market. turning now to vietnam and president obama's historic tour. dave mcclure is still with us. they set up a fund to invest in local the enemies companies.

what do you make of the president visit and highlighting entrepreneurship? guest: vietnam is a growing country and it's great to see president obama visiting countries where there is strong u.s. ties and helping to promote a culture of innovation. you have some experience with the vietnamese market. what would you highlight? david: i haven't been there, so it doesn't constitute my experience but we have a writer who has written a lot about it. there's a tremendous interest in health tech startups and just like almost every other country in the world, young people are aware of this entrepreneurial upsurge and a potential of getting rich and they all worship mark zuckerberg.

a growing community in vietnam that would like to have an impact by starting companies. the problem is, while they have good education in their schools, the students generally don't come out of college with the kind of knowledge that would allow them to work in a global tech is this context. the companies that have gotten big there are doing their own training. are the sectors you would highlight? what should we be watching in the at non-tech scene? there are a lot of stories there that are just getting off the ground. transportation, real estate, jobs, these are basic services that pretty much everybody in the emerging economy wants to be aware of and be able to use. that country has a lot of young people, very mobile intensive that will buy those services. what are the hottest and

most successful tech startups in the at non-right now? guest: i think you will see e-commerce startups get traction. people are doing basic food and shopping and other basic services. messaging and communication services will be big. but a lot of things are very transactional in nature will be the first things you pay attention to. it is interesting to see the president there. a place you expect to see more silicon valley venture capitalists to explore? david: a lot of people there are online at own have high income. even others a big appetite for products, there's not a lot of appetite to pay for them. on the one hand, it is still relatively poor but it does have a growing middle class.

i think we will see more action and i think it is great that president obama is there. it's great to see is making up with a country we have such a fraught history with and i think they are excited about the local tech opportunity. some of seas have made a conscious decision not to go global and focus on startups in the united states. is that a mistake? i think mark andreessen is a smart guy. there are former and recent partners that have launched big funds in japan and there are other folks looking at international markets. just because andreessen doesn't tend to play in the international scene, plenty of others are doing that.

emily: dave mcclure, cofounder of 500 startup and david kirkpatrick, david is sticking with me. a reminder to check out our podcast -- extra episodes of studio 1.0, the postseason. the twitter cofounder, biz stone and the makers of "silicon valley" for a chat about the future of media. you can check it out on itunes and sound cloud. ♪

emily: google's offices in paris have been rated. officers arrived around 5 a.m.

local time as part of a preliminary criminal investigation into whether the is this is have been operating without clearing some of its revenues. friend has previously suggested google has 1.8 billion dollars in back taxes to pay. underway, erics schmidt was a few hundred miles away in amsterdam speaking at a start up conference. he spoke about how hard it can be to start up a business. laws.re are a billion it's harder to be an occupant or in europe than it is in america. but the tax policies and amount of time it takes to create a firm and so on, what happens when i meet with governments is they all say yes and listen very politely. europeans are always very light and then they don't do anything about it. this coincides with a

separate investigation as whether there are preferential tax deals as a way to entice them to do business there. companiesoo! -- the auction process is said to be going well. goldman says it is well on the way but declined to give any information. ceo marissa mayer graces the cover of the latest issue of variety. she is portrayed as the doomed savior of yahoo! with the headline reading "the end is ni gh." thatkesperson said running illustration is its own burden to bear. let's talk about the cover. do you think that cover is fair? david: i think it is mean.

skull on the ground in front of her -- this is really harsh stuff. is a very tough cookie in -- and is a little teflon. she has done a good job at disregarding this kind of crazy personality-based criticism that has been directed her way through the entire time of her running that company, which has not been a fun process. emily: the article lays the blame address a meyer's feet for the last four years. is that fair? : i don't think it is. it would have been really hard to turn the market around in the way some are expecting. i don't think it's a great idea to combine it with verizon. essentially an old media company in the context of the

internet. it's about as old as a media company can be that got a little wetted to some old ways of doing things went much more targeted market aced on details about the viewer was availing. yahoo! into a company like google or facebook was not something anyone was going to do overnight. about the comments today on the prospect that the sale is moving along. what was your take away? david: i don't know anything about the inside machinations. idea tim armstrong might end up running yahoo! along with aol consolidating them and making a combined old internet , making up business

with volume what you can't make newith innovative technology which is what neither company has been known for is not a bad idea. over time, that would allow them to migrate both his misses together and separately in the right direction. even facebook and google have to go through a major evolution going forward. it's such a fast changing industry. yahoo! probably needs bigger shoulders to lean on. emily: we will continue to follow it every step of the way. david kirkpatrick, thank you so much for joining us. coming up, we will talk about wearable maker pebble and its new products. ♪

mark: i'm mark crumpton. let's begin with a check of your first word news. the brussels police chief is among those recovered from injuries sustained during an

anti-austerity protests that turned violent. thegovernment has said focus should be on tax division. a federal judge has ruled a law curtailing early voting in ohio violates the 19th9 scarlet: scarlet: emily: 25 voting rights act and the equal protection clause of the u.s. constitution. highlands had many opportunities to vote. all cosby has been ordered to stand trial in pennsylvania in a felony sexual assault case from 2004. a woman said cosby drugged and molested her. he says the encounter was consensual. the national football league announced atlanta will hold -- will host the super bowl in 2019. the game will be played in mercedes-benz stadium which is under construction and is set to open in 2017. miami and los angeles will host the games the following two years.

from bloomberg world headquarters, i'm mark crumpton. it's just after 6:30 in new york. i'm joined by paul allen in sydney, australia. good morning. : gains in u.s. stocks are likely to mean gains across the asia-pacific as well. currently up and running, looking good and futures indicate gains in australia and on the nikkei in japan as well. the joy may extend to sony shares despite announcing before your profit forecast will be down 46%. earthquake.to an shares were up overnight. are rather keen on the prospect of entertainment and

prospects for emerging technology. the long haul arm of southeast asia against budget carrier reports profit for a second state -- second straight quarter. we will be looking for development out of singapore after esi bank was shut down by singapore authorities for breaches of money laundering rules. six executives will be facing the prosecutor. of what we are watching across the asia-pacific today. i'm paul allen in sydney, australia. emily: now to pebble announcing if you do product's come and

first ever non-smart watch device called the pebble core. aiming to raise the money on kickstarter. in a first four hours, they raise $4.5 million. commentsows tim cook's about wearables at the start of fest in amsterdam. tim: we believe health is something that is a huge problem in the world, a huge issue, and forhink it is right simplicity and a new view. we would like to contribute to that. an area where we are very focused. emily: so what are some of those key health features in the new pebble products and how will they stack up against the competition? to us.ble ceo to join what is new? created our first non-smart watch product.

you can clipclip on and go running without your phone. it does modify streaming and tracks your run using gps and can send an emergency text. emily: how is this better than a fit it or ipod? eric: it is a little bit different. it's meant to do it different and then your phone would do. this is aiming strictly at the running market. not have a heart rate monitor, but you can sync it up with the watch? eric: this clips onto your shirt and it has a heart rate monitor built in. the watch has sensors that learn more about your personal body. what iteration is this? eric: this is our sixth smart watch.

emily: what is new? this one has a heart rate monitor built into the back. it has pebble health, which is our new health initiative elton. why skip the holiday season for the pebble core coming out next year? eric: we wanted to get it out into the world. it is a completely new audit. this is with the 1.8 million people who have purchased the bubble in the past. we have over 50,000 developers. new item completely and that's why we've done it this early. emily: let's take a look at some of the numbers -- hubble

market share. the that drops to 2.7% by 2020. what do you make of those numbers? eric: i don't know if those stack up. we shipped 1.8 million pebbles. we are a small company going up against some pretty big giants. in the last three years, we are pretty much know and the quiz the android where plaque warm. we are taking a -- taking a -- taking ace stop special stance. it is something you have to charge every night. the way ivc put it, the software platform will enjoy

modest growth, but competitive pressure will lose share to giants like watch os. how do you respond to that? eric: i just don't see that in the numbers we are seeing. we sold 22,000 watches in the last eight and a half hours. that stacks up well against some of the competitors we are seeing. emily: how do you stay relevant over the long-term? eric: we see a network of devices across your body. not going to be the last -- i think there are opportunities for devices capturing information and helping you live a little bit more of a better life. emily: you did announce you are laying off 35% of your workforce. what happened there? you say money was tight. what happened and what is the next phase? company structured our

to focus on profitability. there were a couple of key things we had to do. we planned for a bunch of new products on the software side and hardware side. we are focused on creating a great smart watch system and we are planning to be profitable by the end of the year. emily: i went to the original pebble garage four years ago. how would you describe the startup environment right now? necessarilynot something i spend a lot of time worrying about. fund the business through our kickstarter campaign as well as sales in the last six months, we have veered a little bit into less profitable territory. we are aiming to get back into profitability later this year. emily: thank you so much for joining us. rate to have you.

xiaomi -- the chinese smartphone maker is officially entering the drone business. the vice president took to twitter to announce the drone after he teased his introduction last week. at 610ll price it dollars, 20% below the price of the market leader. resolutionord high four k video just like its competitor. on the earnings front, sony is reporting an annual profit that fell short of expectations. the culprit is the earthquake that occurred in mid-april. what was pretty good to be sony 's most profitable year is now marred by factory repairs, lost sales and slowing demand for smart loan image sensor components. was expected to climb in the 12 months ending in march 2017. sony is betting on its game

consoles in hope of generating more earnings. coming up, ruing beer takes a lot of water. we will look at one company exploring a new way to true using recycled water. ♪

emily: for this day in tech history -- 172 years ago today, samuel morse sent the first telegraphic message by transmitting electric signal over a wire using what is now .nown as morse code the message was transmitted from washington dc to baltimore.

it formally opened america's first telegraph line and launched america's first form of instant indication. it is now time for this weeks edition of "the spark. this company is taking a different approach to the way we brew beer. take a listen. >> the craft brewing industry in california is very big and rowing. it has been growing at over 10% a year for over a decade and there are dozens of craft breweries opening up every month in california. kind of beer you drink, four or five pints are used in its production. there's obviously the water in the plane you drink but water is used in production and cleaning the equipment. the entire process is growing it, so here is a water intensive product. making ae only brewery

beer out of recycled water. sound likeay not much but every day, californians flash 1.3 billion gallons of water down the drain. that usually runs through sewers and out into the pacific ocean. but it can be cleaned and used again. bay, every ounce of recycled water it uses is one ounce of freshwater it doesn't need to pull from the already depleted supply. >> we think it's a chance to help people understand the importance of water and change the entire mindset about recycled water is not something you should be scared of. it should be something you think is interesting and different. sam: since recycled water is not readily available in california, half moon bay had to go to an unusual source. you are using in this experiment recycled water for your beer. where are you getting it from?

>> we source it from nasa. sam: what were they using it for? >> for the spatial, for astronauts and watering plants around the facility. sam: once you've gotten the water to a profile you like, do you work with it the same way you would work with cap water? >> it is very much like the water we would use in the brewery. a little brewing salt back to it to enhance the flavor a little bit. sam: would you add it to tap water? >> absolutely. it is the same. bet on recycled water to work, it can be almost as good, it has to be as good or better than the original. brewerown with a master and a nearby competitor to conduct a proper taste test. cheers.

how would you describe this as a master brewer? this is aff, well-balanced, multi-, hoppy beer. i'm getting a lot of flavor. this one. try cheers. the get-go, i'm not getting a huge difference. i'm pretty impressed by how good both of them are. sam: will you reveal the truth we need to know here? ita brewed with recycled graywater is on the outside. sam: that was the one i drank more of. it's the wishes. cannotly, half moon bay sell the beer it is making from recycled wastewater, but they think it's just a matter of time. >> i think it's going to be a

year or two before regulation and all of this is legal to do for consumer consumption. but i would imagine in five or 10 years that the u.s. water system, especially in places like california where we have scarcity and drought frequently, it will be part of the regular system. grobartloomberg's sam reporting there. is suing technologies samsung in the u.s. and china -- the companies were not able to reach a licensing deal over technologies fundamental to how global networks operate. they claim they infringe 11 patents on the industry standard for fourth-generation mobile devices. it is not seeking an order to block samsung in the united states. an startup formally known as payroll is making moves to take on its troubled rival. we will check in with the head of gusto, next. do not miss will the ross

tomorrow at 7 a.m. new york time. ♪

emily: best buy shares slid the most in four months tuesday after forecasting profits that disappointed some analysts and announced the departure of the cfo. seens seen as a -- she was as a key figure and was pulled out of retirement to oversee more than a lien dollars worth of cost cuts. best buy has yet to contact -- yet to return to consistent sales growth and some see it as a sign that improvement could be limited. up problem of hr start benefits are well known. of parker conrad resigned.

gusto, is rival, valued at a billion dollars but is looking to capitalize on the meltdown. they will sell health insurance plans to customers, more aggressively approaching on their turf. you have been on the payroll now you are crossing into each other's original turf, so to speak. why get into health insurance now? from our derived mission as a company. when we started the company for an half years ago, we knew payroll was going to be the foundation, but we have been planning to launch benefits since before they existed and we are proud to share it with the world and we are getting a lot of positive he back. this an opportunity to capitalize on their trouble? guest: we have a lot of customers who are thrilled and excited to work with customers

and want to serve them well, but we have 30,000 businesses today and that is who we are focused on. of benefitsew ceo fits criticized lazy comparisons and pointed out they have taken responsibility for their problems and ousted executives. they have a lot of things to try to get back on track. do they have with a new ceo at the helm and that attempted a fresh start? guest: my focus is on gusto. i can say i don't think culture can be changed through tweets. what i can speak to is this is a long-term mission to us.

focusing on the long-term has been in our dna since the beginning. i hope to spend the rest of my life building test oh. emily: you have -- building gusto. emily: you say you are hiring one woman for every man. how is that going so far? the main issue is a final issue. we focused a lot of attention and time on making sure we get as much folks applying from as many different backgrounds as possible. are proud with the progress. we have a lot more to do and are ahead of the curve in terms of the ratios emily:. have you been hiring one woman for every man? guest: we went through a time where we did do that. ratios i think it caught up in the pros and cons. we want to focus on getting a diverse group joining gusto.

we did it successfully for about five months. femalehow many new engineers to that result in the? guest: at that point, we were a lot smaller. i would say we added 10 engineers. ats is about 300 people gusto. emily: what is the long-term goal? i presume it is difficult to continue to do that. diversity inintain a difficult environment? becomes lot of times it a topic you don't want to discuss. for us, it has been opinionated top.d focusing on the we have thousands of candidates applying for jobs and we know where they are more weighted than others. we spend a lot of time going to

different events and conferences and mentorship programs that target the areas that are underrepresented. we do that because our customers are diverse and we want to have the ability to look at all the perspectives. emily: the business you are in has been dominated by old-school companies like adp. where is this business 10 years from now? are in theuld say we early stages of what we think of as our long-term goal. we want to bring the focus back to people. adp stands for automatic data processing. it's a very transactional approach. office"e watched "the -- people are looking for products and services that talk about this employee relationship. what is it like when you have a great one-on-one? do people have an appreciation

for the work? a whole variety of companies across the country, for us, a lot of folks today do it by hand. our focus is bringing it to the broader segment. emily: thank you so much for joining us. it's time to find out who is having the best day ever. today's winner is salesforce. salesforce came out on top of tech0 most popular companies to work for. that does it for this edition of "bloomberg west." we will see you tomorrow. ♪

charlie: we begin this evening with a look at president obama's foreign policy. the president made history in hanoi where he announced the u.s. would lift a decades-long arms embargo on vietnam. pres. obama: this change will ensure that they have access to the equipment needed to offend itself and removes it lingering vestige of the cold war. it also underscores the commitment with united states are fully normalized relationship with vietnam going strong defense ties with vietnam and this