mark: i am mark crumpton. this is "bloomberg west." at least 20,000 people in paris are without tower as the biggest floods in 20 years it the capital. the louvre museum was forced to close its doors today. the world health organization is putting together an expert committee to consider whether the real olympics should proceed as planned. a group of 150 public health experts next week called for the games to be postponed or move because of the virus. fifa lawyers say three former officials, including the president, awarded themselves pay raises and world cup bonuses totaling $80 million over five years.

fifa says the payments appear to break swiss law and evidence will be given to american and swiss federal prosecutors are investigating corruption allegations. chicago has released hundreds of videos from dozens of open investigations into police shootings. the city is launching an online portal where the video and other evidence is available to the public. mayor rahm emanuel says the portal is quote, one piece of a larger effort to restore trust and repair relationships. global news 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 this is "bloomberg west." the former apple exec you invented the smart thermostat is stepping down two years after our event bought it than $3 billion. a shockingly bad jobs report. employers pulled back to the lowest levels in six years and more workers go part-time or give up altogether. how hiring in the tech industry can change the numbers. a stagnating smartphone market -- we sit down with one of the rising stars, the micromax cofounder. first, to our lead. tony fidel is stepping down as the head of the company he founded and sold to google two years ago. in a short and unceremonious statement, fidel said he would leave the company immediately and be replaced by former executive at motor run a mobility, where he served as ceo of motorola homes. in a blog post, fadell said this transition has been in progress

since late last year and while i won't be present day today, i will be involved in my new capacity as advisor to alphabet and larry page. nest employees have publicly vented frustrations with management, some found to be very un-google. bloomberg spoke with fadell exclusively. we will hear about what he said. thank you both for joining us. what happens? >> tony, his abrasive style rubbed people the wrong way, especially at google and also with the small startup.

that's when all this public rancor emerged. emily: a post was written, saying, there's a lot of -- there's a lot that can be written about the extreme differences with leadership who seem to be fetishizing the traits of their mentors. are you a tyrant? tony said, you can't make an omelette without breaking eggs. that style isn't for everyone. because we have respect for the people, because they respect what we are trying to do, we will get through anything together. >> i was particularly taken by his comments about steve jobs.

in the same q&a he said, i'm me and only a few other people are holding the torch for the kind of management style job steve's -- steve jobs represented trade while he was asked, he certainly wasn't backing down from his management style. emily: i've interviewed tony on the show. he has a magnetic personality. you do get pulled into that, whether it's a reality distortion field or something else, he's a very inspiring speaker. we spoke last year about why he sold to google. listen to what he had to say. >> it was about building the right thing. this wasn't about money. the number was nice. this was about a 10, 15 year vision. i knew we would need regards around us to help us get there. i remember how long it took to get from ipod to iphone.

you need a lot of resources to do it. people go, you need to go public. i did not want to go public. when you saw that number, when you had the gut feeling, you just had to go with it. when you get married, you never know what it's going to be like on the other side. at the end of the day, it's an emotional decision, not a rational one. emily: i thought it was so interesting when he said it was an emotional decision, not a rational decision. as a long-time investor in google, in alphabet, what do you think? are you worried? >> i am worried. what we've seen -- let's put it on the table. google paid $3.2 billion in cash for google, for nest. when we look at first-quarter results out of google and the other bets, just under $200 million in revenue and $800 million in losses, i think google should stop buying hardware companies.

one of the worst acquisitions they made was for motorola handsets. here we have internet of things, thermostat. tony is a super talented guy. it's hardware, you've seen in handsets that did not work. i would like to see google preserve cash and focus on software and search, one of the best legal businesses there are. emily: you can't help but compare it to steve jobs getting kicked out of apple. >> that's true. tony did say there are a new -- a lot of new products and services coming down the pipe. emily: what else is coming? >> there are home devices, like the amazon echo.

they've done a lot of work on this standard, which is called weave. that was a really hard slog and a lot of the time was spent doing that. that might form a basis with which to bring a lot more devices under the nest umbrella into the home as well. emily: tell us about the new guy. >> he was at motorola home for about a year when it was still part of google. they sell a lot of the same things that nest sells, security cameras, baby monitors. he has experience with home devices and the nasty, messy stuff of how to connect them all together. emily: i know you will be watching. you are sticking with me. alistair barr, thank you for joining us. first up, shares of the insight wi-fi company fell the most in more than three months after american airlines said it was splitting its next order between gogo and its competitor.

our reporters caught up mark dan berg. >> it's an important step in terms of how wi-fi will be presented in the air for the industry. americans made a statement that they want to improve, they want to have the best wi-fi in the sky. we think it's a good start towards that. emily: american also reserve the right to drop gogo services from as many as 550 planes. globalstar plunged as much as 70% on friday after a bloomberg report on a private fcc vote. bloomberg learned that democratic commissioner jessica rosen were so voted against the measure.

we already knew a republican member of the five person agency voted against the plan. the latest development makes it unlikely that globalstar will get a vote of approval. microsoft and alphabets are among critics that think it could interfere with other mobile devices. coming up, a rate hike in june? not so fast, after a dismal jobs report. ♪

emily: one story we are watching, the shared workspace plans to cut 7% of its staff and put a hold on any new hiring, according to e-mails obtained by bloomberg trade managers were instructed to begin layoffs this week.

a funding round in march of value the company at $16 billion. this after a surprisingly bad jobs report. u.s. employers added 38,000 jobs in may and the 160,000 number from april was more like 123,000. the unemployment rate dropped to a nine year low of 4.7% because more people gave up on finding a job. the number of people settling for part-time work rather than full-time employment ticked up. it's turn now to the impact on the tech sector. how are changes in tech hiring contributing to this data? back with us, and joining us, david blumberg. what is your reaction to this report, as somebody who invests in technology and technology startups? david: since the end of 2015, there has been a retrenchment or

decline in the multiples the venture capitalists are offering for startups. that tends to foreshadow the downturn in the economy. heart of it was in sympathy with the stock market decline at the beginning of the year. venture capitalists are in missouri mode, which means show me traction, show me real sales and volume increases month to month instead of telling me the stories about what you are going to do. we have seen prices come down, which explains some of the worry about wework. seed funding dropped in terms of volumes of deals the last few quarters. a lot of people who graduate from seed then go into wework or temporary housing when they are in their early growth mode. emily: is this going to change your investment strategy? >> what changes is the likelihood of a fed rate increase in june and july. those probabilities have come

down. that's not a good thing because they are coming down because of potential weakening in the economy. a weakening economy as it relates to tech likely means as some have suggested that corporate profits have peaked. that means there is less for cap x spending, less for tech spend. the cycle has a real risk of becoming staflation at the worst case or potential recession. emily: data at the end of last year, people were already talking about a pause in hiring. what's happening now? >> in our personal portfolio, which we do early-stage venture capital, we have still growing demand great we have not seen any recession in terms of sales of product or lending. and people are still hiring.

on our website there are 550,000 jobs available. emily: is this impacting their plans? >> i don't know about the jobs number impacting their plans. who knows about janet yellen's moves at the fed, and so on. the big heckscher is the one you -- the bigger picture is the one you mentioned, the job force participation rate. now we are down to 62.5%. i don't think it's because people are fat and happy and don't need to work. i think they are disaffected and disillusioned and they can't find what they want. a lot of people are going to the grey economy, not reporting taxes, everything in cash. maybe it's the black economy. it's off radar. a lot of people are stuck in part-time jobs that they would prefer to be full-time. in the tech sector, it's a

different situation. stem skills, computer science, math, algorithms are in short supply. those people are still in high demand. emily: you wonder how much the on demand economy is changing things here. when of the interesting stats from this report is if you look at taxi driver numbers, they are not going down even as uber and lyft drivers increase. >> embedded in the jobs report was the verizon strike. inside the numbers you had somewhere between 35,000 and 37,000 that came out of telecom in may that will likely come back to the jobs report in june. that's why the month to month can be volatile here. the longer-term pattern, the lower jobs participation number is important. we creation, reinvention of potential new jobs and sharing economy, and the other side of the equation is at what wage rate.

the p x q on this is we have seen jobs down, but if you have inflation moving back up, you may have the fed coming in to tap down inflation. emily: something we will continue to watch. thank you both so much for joining me. staying with the current funding environment, while linkedin struggles in the public market, one of its private competitors -- the glass store ceo says the company's funding round slightly increases the employment. with this round, glassdoor raised $200 million since it was founded in 2007. coming up, peter thiel has some company. we will introduce you to another tech entrepreneur. ♪

emily: our guest joins us from los angeles and new york -- and in new york, a reporter who has been covering this story. thank you for joining us. my first question, is peter thiel back in your lawsuit too? >> peter thiel is not backing my lawsuit trade my relationship with my attorney is direct, and it is a confidential relationship.

the only thing i know about peter thiel, he wrote a great book. and he got some money from me. emily: would you accept support from peter thiel if he offered it? >> definitely. in principle the issue is that the amount of deplorable behavior that got to me and others, the only way for anyone in my position or for somebody else a lesser position to fight act is through some type of legal funding. i've been fortunate in terms of the relationship i was able to set up with my law firm. emily: he wrote -- gawker wrote a number of different stories about you. we pulled up an old story. here is a quote from it. fran, you f up. you had two years to discover this guy is a big fake.

when you hear that again, what's your reaction? >> the two points is, this is not about the invention of e-mail. if you look at the first thing, he called me a fraud, a liar. you can read the other four letters. next denton is now on the road in a big er blitz to frame this as though he is some victim. this is not about the invention of e-mail. this is about deplorable journalism using pornographic terms. i'm the one who was victimized by this. if you look at my history, i grew up in india. i worked hard and won nearly every recognition you can get in academia.

gawker wrote those articles and the follow-up article essentially -- and essentially destroyed my reputation in the tech industry. the first page of google has this deplorable article from 2012 and later on in 2014. this is not about the invention of e-mail, which i did do. this is really about gawker's deplorable behavior which defamed me. emily: you still claim to you invented e-mail? >> yes. a 14-year-old indian immigrant kid in newark, new jersey did create e-mail. i was the first one to come up with the term e-mail and call it e-mail. i got the first u.s. copyright for it in 1982 at a time that copyright was the only way to protect software inventions. if this had not been done by anybody else, there would have been no doubt -- it's really not about who invented e-mail. this is about defamation. emily: rebecca, i just heard nick denton speak at the code conference and he mentioned the

stories. he believes peter teal is funding other lawsuits against gawker. what is the latest on that? >> gawker is facing multiple lawsuits by the same lawyer who is representing -- you represented hulk hogan and the doctor. gawker believes that peter thiel is funding the claims of the doctor. even peter thiel i said it takes a lot of money to spend these types of lawsuits. emily: funding third-party lawsuits, it's not illegal. someone who is very rich sues a media organization simply because there are reports they don't like. where do you draw the line between freedom of the press?

where do you draw the line? >> it's a good question you are asking. the framing of your question is something that is essentially a pr spin by gawker. this has to do with deplorable journalism. if you look at the posting of sex videos, the terms i was called and others, how would nick denton feel if someone posted a sex video of him? if bloomberg tv called him all sorts of four letter words? there has been enough presidents in american history to talk about first amendment. we need to step back. what's ironic is the two other billionaires who are starting to support nick against peter thiel, both of them own media properties. this is a hypocrisy in many ways. fundamentally we are talking about clicks that lead to revenue. their business model was turned upside down by the hulk hogan win. now they have a risk issue which

affects those clicks. emily: doctor currently suing gawker and rebecca greenfield, our bloomberg reporter. thank you for joining us. the founder of micromax is next. ♪

mark: let's begin with a check of your first word news. donald trump claims the federal judge residing over a lawsuit brought by former trump university students has what he calls an absolute conflict because he is of mexican heritage. had thisaker paul ryan reaction. because brian: the comment about the judge the other day was out of left field from my mind. it's reasoning i do not completely relate to. he clearly says and does things i do not agree with, and i have had to speak up time to time when that has occurred, and i will continue to do that if that is necessary. i hope it is not. from speaker ryan endorsed

thursday, saying he will vote for him in november. hillaryiewers say clinton has the experience .eeded to run for president 51% say mrs. clinton can work with the opposing party, but just 39% say that about mr. trump. elgin officials say a judge may decide next week about extraditing mohammed or bringing to france where he was linked to last november's terror attack in paris that left 130 people dead. he has admitted being the so-called man in the hat pictured in surveillance walking alongside two suicide bombers minutes before their attack on brussels airport. say the criminal investigation into the 2014 malaysian plane crash in ukraine is almost complete. reuters reports prosecutors will present their conclusions after this summer. informationg for

from russia. all 298 people on board flight when thewere killed plane was brought down over eastern ukraine. nearly the entire southern half of texas is under flash flood watch or warning. storms off the gulf of mexico are threatening to worsen flooding near houston. four soldiers from a -- remain missing after their truck overturned along a fort hood, texas creek. i've soldiers were killed. three others remain hospitalized. the truck overturned during a training exercise. the international olympic committee has selected 10 africa andletes from the middle east to compete under the olympic flag in the summer games of rio. they say the selection represents a symbol of hope. >> it can send a signal to the informational community that refugees are our fellow human beings and are an enrichment to society. mark: the team of six men and

four women will march together behind the olympic flag in the opening ceremony on august 5. global news 24 hours a day powered by our 2400 journalists and more than 150 news bureaus from around the world. couple's ceo tim cook was in china last month looking to break into a market currently dominated by more affordable local brands. one such brand is micromax. micromax has big expansion plans for the coming years. bloomberg's asia reporter sat down with him. >> the phenomenal opportunity of upgrading smartphone users and on the smart one, on the

technology side from 3g to 4g. if you look at the upgrade cycles, they are shortening in india. to the best of our knowledge, the lifecycle of a mobile phone in india is less than 15 months now. on a 700 million connected user base with activated sim cards, we are talking about 500 million mobile phones. potentially the entire industry has 100% upside. prices are going south year on year. we have the data in the public domain. everybody is wanting the next users to get the internet on the mobile phone. >> that's an opportunity for you. you should be using india as

your car market, concentrating -- core market, concentrating on india and not looking across to china. >> i think the markets in india are as comparable as anywhere in the world. if we have a vision of becoming amongst the top five in the world, china can't be ignored. i think as a brand, if you have a vision of seeing in the top five, we can't be ignoring china market. >> china must be part of the component chain, the supply-chain. >> absolutely. one of our design teams is out of beijing. they work along the teams in bangalore. that's how mobile phones are made.

>> last time we were talking you were going to the assembly phase. what about i.g. becoming a smartphone maker, proper, as apple may be forced to do? >> it's not only about manufacturing, it's about owning the entire project. getting the teams up in bangalore and beijing has allowed us -- assembly is already on. the phase manufacturing plant we've agreed with the government, we are looking at moving to the last level by 2020. every year there is a phase that is implemented. >> how many phones are you selling a year? >> it is about 3 million a month now. what about this unicorn handset? is this in your hand? >> that's micromax right now. the way we look at the ecosystem of the market in india as we're

talking about setting up -- micromax will always be on a more horizontal, trying to move people from a segment to the other segment. micromax might have 40 mobile phones in a year getting there in the market, and you will have probably six or seven models. you will be more focused. >> you have project x but you talk about. this is your secret project. give us an outline of what you are working on. >> there's a few projects the team is working on which we feel should be the differentiator, should be able to achieve the vision of the organization. >> it would completely change the game, is that what you're saying? >> i know the way you work. it's multiple choice out of them you will get the answer. >> let's have a look at -- everybody else is trying to simplify that product range.

>> it goes back to the same fact we were talking about howington movie consumer to the same -- how we move the consumer. we bring up the multiple options for the consumers. five different series. from entry level 3g phone to a 4g phone. >> we talked about china. i think it was -- the third biggest smartphones are in russia. africa must be a massive opportunity as well. >> we keep alluding to 2 to 3 international markets. seeing the right moment for the brand to launch. emily: that was bloomberg's reporter speaking to the micromax cofounder in hong kong.

the u.s. government slapped an administrative subpoena on one of china's biggest smartphone makers, is using it of violating u.s. sanctions by providing rogue nations like syria, iran and north korea with products containing american technology. huawei said it complies with laws in markets where it operates. this comes days before secretary of state john kerry travels to beijing for bilateral talks. another story we've been following this week, softbank says it's planning to raise $10 billion from selling down its stake in alibaba. that's $1 billion more than the company projected it would raise earlier this week. this is a handful of moves the softbank is considering print the company is carrying a debt load of $109 billion partly due to its underperforming

investment in the u.s. wireless carrier, sprint. coming up, think of it as legos for coding. we will bring you the ceo taking coding off the screen, next. ♪

emily: walmart says it will begin testing grocery delivery with uber and lift drivers straight the retailer is aiming to match the convenience of services offered by the likes of amazon. our reporter has more from fayetteville, arkansas. >> one of the big things we been hearing about his technology and how that will be the key to driving future growth at this company. they announced a couple interesting things this week, one being a partnership with

uber and lyft. customers will be able to order their groceries online and then and uber or lyft driver will deliver them to their doorstep for seven dollars to $10. if it is successful, it is something that will be expanding. another, grocery pick up. another interesting tech thing we noticed this week was a demonstration of how they are using drones. inside one of walmart's biggest distribution centers they are using drones to go up and down the aisles, scanning inventory to make sure it's in the proper place. it takes one person -- actually two people an entire month to go around the distribution center doing that manually. a drone can do it in one day. those are the types of innovations they are looking at. drones to play a role in

delivery as well. they did not really want to get into that. technology will be the key to that company's growth. it's something we can expect to see going forward great thanks, and back to you. emily: you can think of it as the legos of coding. an ipad gaming accessory is teaching kids how to code, but in the physical world, a brainchild of two former google engineers. it allows the ipad to see physical objects in front of the screen so kids can manipulate them in real life. in this particular game, blocks snap together. joining me to discuss the expansion of gameplay behind the screen is the founder and ceo and designer.

thank you for joining us. i am familiar with osmo. give us an update. >> basically osmo let's ipads see what is in front so we can do physical attraction. now, what we are introducing is a physical way of learning fundamentals of coding. emily: you have a demo here. >> on the screen you see a character. we will tell what we want to do. we have this physical piece of code. on the screen ucb's two strawberries. -- you see two strawberries. walk up, make him walk twice, make him walk on the right-hand side. they snap together, walk once.

this is actually a piece of code. you will see what happens. emily: so you build a line of code that control this character and told him to go eat the strawberry. >> that's right. you can take it to a whole new level and code a lot more interesting stuff than make him walk. emily: you are like 23 years old. why do you think this is a good way for kids to learn how to code? >> coding is abstract. it's rooted in the digital world. when you take something that is super abstract, it's difficult to teach kids how to do that. making code tangible is a great first way to learn coding. emily: he worked at google for 8 years. this is for kids -- >> 5 to 10. emily: every parent is out there grappling with how much screen time to give their kids.

how do you qualify this time? what did you tell parents about how much time they should be allowing their kids to spend with it? >> when you think of screen time, you need to think what are they doing with the screen. is it a passive or active experience? everything we are launching is an active experience. we think that is a much more powerful way to learn. emily: how old were you when you started coding? >> 21. emily: so you are a late bloomer. do you think this can be more than a toy? is this something that can be used in classrooms to teach people how to code, or is it for fun? >> it's a great first step rate it teaches you computational coding. your learning what conditionals are, what looping are. emily: what is the future of

osmo? >> i think at the fundamental level, osmo is about how do we build hands on attraction with digital tech. we draw, we build things, we create. emily: all right. what is he doing there? we will put some code together to let him get in the water. thank you both for joining us. coming up, scientists set out to create an entire human genome in a lab. we will take you to the frontiers of genetic science next. to an end weekend and we will bring you the best interviews -- tune in this weekend and we will bring you the best interviews from the week. ♪

emily: tinder says it's paid subscriber base will double by the end of next year. tinder said it currently has over a million subscribers to spend roughly 35 minutes a day on the app. -- who spend roughly 35 minutes a day on the app. scientists are set -- sending out what may be one of the most ambitious projects yet, aiming to build a complete set of human dna out of chemicals in a lab. the proposal is outlined this week in the esteemed "journal science." researchers said their aim was to push current conceptual and technical limits by orders of magnitude and deliver important scientific advances. not surprisingly, there is a lot ethical debate around the

boundaries of the science. the nih responded by saying, whole genome synthesis projects extend far beyond current scientific capabilities and immediately raise numerous philosophical red flags. first of all, does this mean you could make babies without parents? >> that was one of the concerns raised, butople just making the dna does not mean it would automatically be used to create people. a step pretty far beyond, and it's not what the have in mind. >> what do scientists have in mind? what are the actual goals of the study? >> they want to synthesize the

complete set of dna for a human being. dna can already synthesize and create bacteria. they can synthesize dna from other organisms. they are looking at doing this with east. this dna andcreate try to learn more about what it works. >> talk about the ethical debate here on both sides. what do people think? >> scientists say they just want to create the dna and learn from it. the ethical concerns come from what if you took it a step further and actually produced humans from this dna? it's a similar kind of objection to what came out in the late 1990's when scientists cloned a sheet. there was a lot of concern people might start cloning humans. that never actually happened.

we first heard about this after news of a secret meeting at harvard medical school. i'm wondering -- where is the science today? is it actually possible today to a lab? na in >> it is. not the amount you would need to create the whole human genome, which is 3 billion base pairs -- base pairs are the sort of coding element -- but scientists have created the entire genome produced aa and even new bacteria that was not known to nature. scientists are involved here and who is funding this? >> they need yet. the announcement was about the intention to do it. francis collins of the national institute of health was quoted in "the new york times" today saying he was kind of lukewarm about funding it, so there may be mostly private funding in

this case. >> are there any regulatory issues that could hold this up, or is this something that could definitely go forward? >> it does not seem like there would be anything for just synthesizing the dna, though i some ethicalill be discussions that should take place before they proceed, just because it will make some things possible that make people uncomfortable, just as cloning animals made some things possible that never actually happened, but i think the idea is that we should talk about these things before they happen. >> all right, it is fascinating stuff. thank you so much for breaking it down for us. time now to find out who is .aving the best day ever this one close to our heart in san francisco.

the golden state warriors -- while he was a quiet night for the/brothers, their teammates made plenty of noise. the warriors took game one of the nba championship. steph curry and clay thompson combined for 20 points. the warriors outscored the cavs bench 45-10. game two is sunday and steph curry continues to crush it in the app store with his $1.99 emoji app. that does it for this edition of "bloomberg west." on monday, i will speak with a "vanity fair" writer and get details on the latest profile of jack dorsey. that is all today from san francisco. ♪

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