>> i am mark crumpton. you are watching bloomberg west. president obama plans to formally endorse hillary clinton as early as this week. that is according to a person familiar with the president's plans. the timing of the endorsement has not been set, but the president is speaking at a democratic fundraiser wednesday in new york city. a democratic congressman has written an open letter to donald trump, calling him a racist. telling him where to place his proposed border wall. he called trump's attacks on the mexican-american federal judge in the trump diversity lawsuit despicable. the chinese vice premier met

with the u.s. trade representative today. is the round of the u.s. and china's strategic dialogue. this is day one of the annual two-day summit in beijing. spain's olympic committee says 2000 bottles of insect repellent will be available to the athletes to help avoid the zika virus. they said they reached a deal with the pharma company to protect hundreds of spanish athletes. from new york, i am mark crumpton.

emily: i am emily chang and this is "bloomberg west." the japanese messaging app would like to make its mark. it could deliver the biggest tech ipo of the year. clinching the nomination. hillary clinton is 28 delegates shy of clinching the nomination but there are signs that california may be feeling the bern. and some of google's most promising moonshot's maybe hatched in its life sciences unit. first to our lead. just when you thought the tech ipo pipeline was dried up, the japanese messaging app is aiming for what could be the biggest tech exit of the year. the on demand meal kit startup, blue apron, is said to be taking its first steps toward an ipo. no business has raised more than $100 million in a tech ipo this year.

techonomy ceo david is our guest for the hour and alex barinka joins us with more. let's talk about line. they originally filed a couple years ago at a potential $9 billion valuation. >> back then, the ipo did not go through. they are taking a different approach and looking at dual lists according to our sources. they're looking to raise $1 billion to $2 billion. they have seen some slowdown in their business which you can see in the read through and that change in valuation. it seems they are now ready to take those steps via public

company and get the capital that would come from this kind of listing. the company has talked about expanding outside into new markets like indonesia. the majority comes outside native japan. they have some growth prospects that they are eyeing that this capital could help them achieve. >> as i understand it they have about 200,000 monthly users but user growth has stalled even though they say they are profitable. >> you do still see revenue growing at 40% last year from the year before. a couple numbers i will point out is that line makes about $5.10 per user. when you look at what u.s. investors will compare them to it is twitter who makes $7.27 per user. or facebook and makes $11.27 per user. they are not making quite as much on the user.

that would be one of the pain points. they have talked about the fact that ad sales only make about one third of the revenue so they are looking to potentially push that out and make up -- like facebook and twitter, it is upwards of the majority of the revenue for those companies. that could be where they're are looking to grow dollars even if the user growth has stalled. emily: some of it comes in content and games, also digital sectors -- digital stickers provide something like 20%. do you think line will be an ipo that other companies will watch or is this too unique? >> i think they are a unique company. they actually pioneered many of the techniques these other companies are using,

particularly stickers. they are more like a media company and a content company. one of the interesting things about the ads that they do sell is that they generally forswear targeting. they try to be more the ally of the user and they are getting a lot of revenue from celebrities and brands whom they give access to their user. the message live as if it was a friend. in japan, they are an amazing brand with unbelievable strength as a company. i think it will be a company that is decent for the long run and i do not think it is crazy they are going public. whether it will portend to other ipos, i don't know. emily: what do you find out? >> my colleague reported that bloomberg has held talks with

bankers to discuss the potential plans of going public in the next month. the ipo would mean a valuation of about $3 billion publicly. what this really communicates to me within this dearth of tech ipos -- remember, blue apron is profitable, are starting to look to that ipo exit route as something they would consider. we have seen a lot of the larger unicorns top the brakes when it comes to going public. it's good news for my market but maybe with blue apron, there is some activity starting to happen with what has been a slow year for tech ipos. emily: david kirkpatrick, tech economy ceo. now the ceo of adam factory has been contracted by spotify to

help land exclusive deals with artists and new content. you may know him from lady gaga or john legend or as investor companies like bloomberg, or dropbox. >> there have been times where i had to get on the phone with really big managers who had big clients and tell them what the downside was for them leaving their product off of spotify. all of the music is still available on the piracy services for free. you're missing out in the big artist and you are ignoring the future. >> that was for my interview with troy carter toward the end of last year. it is decision time for california and what could be a

make or break vote from bernie sanders. we'll focus on where their allegiance lies in the race for u.s. resident next. ♪

emily: now to a stray we been following, swift boaters have soundly rejected a plan for universal basic income or a guaranteed monthly payment for the government from the government for all citizens. under the proposal every adult citizen would've received a monthly check for 2500 swiss francs. the theory of universal basic income is a form of social security in which all citizens get a monthly payment whether or not they work. switzerland is the first country to vote on universal income. bernie sanders says he is sympathetic to the theory but stops well short of advocating it.

and hillary clinton is just 28 delegates short of the 2283 needed to be the presidential democratic nominee this ahead of tuesday's primaries in new jersey and california. in silicon valley bernie sanders is the favorite raising more than double that of secretary clinton. join me now to help break down the text and son tuesday's important primary details. the political data technology company. still with me is david hat trick in new york. so bernie sanders is by far -- is david kirkpatrick in new york. bernie sanders is by far the favorite in silicon valley. >> he's doing really well in the tech area. the people who build the tech companies we all use, google and apple. when you look at the profile of people who work in tech, they are very liberal. at our company, we give politicians a score.

if you look at the average political leanings, they are roughly in line with bernie sanders. they are much more to the left than hillary clinton. emily: would you say this california primary is make or break for sanders but not for hillary clinton? >> there is the money race and in california bernie sanders is doing well but the one that really matters is the delegate race. that is what she is focused on. it looks like she is very much on track for that. those behind bernie sanders would like the movement to go on, irrespective of what happens in that mathematical situation about the delegates. emily: we know he had planned a fundraiser last week which he canceled but then said he is that endorsing either candidate but just once to engage with all of them. >> to put it in terms of donald

himself, he is doing very poorly in silicon valley. very small numbers of donors. think in the low 50's in terms of the actual numbers. the overall sums he has raised our paltry. 25 thousand dollars or something, compared to the 6 million that bernie has raised from the tech sector. >> on the one hand you have investors like peter thiel who are actual delegates for donald trump and then mark andreessen who calls himself a conservative and as i understand it is now supporting hillary clinton. >> that doesn't surprise me much given that many of trump's views are not truly conservative or liberal. they're just trumped in, out there in another land of thought self-absorption that really doesn't have much to do with anything including the country's future in many ways. i do think one thing about

technology just like every industry. they do want to be on the winning side. most industries hedge their bets on it comes other political giving particularly at the leadership level. if it were to seem like trump were really going to win. i think a number of silicon valley leaders would probably start reluctantly sidling up closer to him. i think it's looking less and less likely and that is the prayer of almost everybody out there as the donation numbers show. >> what other trends in front raising have you seen including in venture capital. i know that google gives by far the most of any other company in technology. >> yes and you have to look at not just the national picture but the important thing for us to scrutinize is what is going on lower down the ballot? a lot of the decisions that affect lower competition's affect not in state legislatures. the amount of lobbying going on

down there and the fundraising going into offices that doesn't get the scrutiny we apply to the presidential race is really increasing and that is an area where for the health of our democracy we need to pay a lot more attention. >> and 2012, silicon valley give $29.2 million to candidates in the election. so far only 9 million this year. will it pick up? >> it usually does. what you often see is there is a massive spike right in the end. you can expect to see that again. the other point that is interesting is up until now, in terms of the donations in the cycle. the republicans are slightly ahead. but that's all coming from a very small number of very big donors. people like larry ellison who supported marco rubio with a big donation. it doesn't reflect the people who work in the industry but there are still those leaders who have a conservative point of

view and have been backing during the primary republican candidates other than donald trump. >> i wanted to ask steve if he felt that there was true antipathy toward trump or even what i said before about people surrendering if he seems to be winning might not happen. one of the things that is so interesting is there are a lot of really heavily principled people. like mark andreessen or peter thiel. until he is you think that many of these people might turn out to really actively working against trump. i'm not talking more about the top leaders -- but what the bernie people will do is an interesting question. >> i think there is such an interesting combination of ideological positions here that there are many things that trump argues. the need to being come petition to certain sectors and his attack on the corruption and big-money impact in politics that are very similar to what

sanders says and have some kind of appeal to the silicon valley ethos of decentralizing power and disrupting the traditional ways of doing things. it's difficult to pin any of these candidates down. emily: do you think that sanders support will shift to clinton and silicon valley? >> a think it is a loyal democratic place but watch out for the role of the sanders people in supporting candidates and future races beyond this one in 20 18 and 2020 as it looks to build his movement. >> steve hilton great to have you on the show. we will see what happens tomorrow. coming up, a rare glimpse at one of alphabet's secretive other bets. the executive in charge of the life science projects with a breakthrough in science tech. ♪

emily: last august, google took the first real steps toward introducing wall street to its secretive moon shots. since then we have learned that the life sciences unit is one of the most promising breakouts. it brought in almost half a billion dollars in sales in the fourth quarter leading some analysts to suggest that google's next big success story were let necessarily be the self driving car but a biotech breakthrough. joining us now for more on what they have been working on is the chief medical officer, our guest host david kirkpatrick with us from new york. if the most promising moonshot comes out of verily, what might it be? >> thank you for having me here in san francisco and for the invitation. i am a physician at a think about ways of using technology to make patient lives happier and healthier. one area that may be in diabetes. patients and to check their blood clue close many times per

day so we are working on ways to come up with ways of checking glucose providing information quickly. how can we actually make someone go through the day and a better place. that's an area where we have been spending a lot of time focusing. >> you're working on smart context lenses and smart food for parkinson's patients. nano particle pills that could identify cancer or heart attacks before they happen. you have a shout out on the earnings call for driving revenue. one of the most revenue-driving -- what are the most revenue-driving projects? >> this is an area ripe for innovation so areas like diabetes and you mentioned some of our key partnerships whether it is with xcom -- we have a partnership right now with said no fee and we also have one in the space of surgical robotics with johnson & johnson. these are areas we think are right for innovation. >> i'm curious here in new york, is it products and revenue that

is your top priority because looking at the website it sounds a lot like making people healthier is a big heart of it and obviously google has tertiary ways of making money. i'm curious if it is all about products or if there is a more vague mission of working toward human health broadly? >> it really is about human health. the way that i think about the products are the means of what it means to be healthy, what it means to have a diagnosis or a disease. if you think about the product that they help someone understand their glucose levels, this is a way to help them manage their health. a sonic product company but a company really focus focused on trying to shift the needle. >> is that necessarily going to be tied to products and revenue to feel you have succeeded? >> we feel that we have a very mission-driven company. as you mentioned, the idea of

coming up with services that can help people is at the heart of what we do. we are a wholly owned subsidiary of alphabet. emily: do you raise money on your own or do you get it from alpha that? -- alphabet? >> we are well-funded. we have other collaborations, stanford and duke are some of our partners. we are in a position to take on challenges that are bigger than what some companies would be able to do. >> so aside from the funding -- we have a whole portfolio. there are a number of things we're hoping to work on that will change care in the next year. but you're able to do things that may have -- we have a time horizon that requires rigorous science and the right settings.

and i know how long it takes to make a difference. it allows us to take that kind of investment. emily: we have seen some hot biotech startups go wrong this year. what have you learned from that experience about managing expectations of the public? >> three key messages. scientific rigor will always be at the core of what we do. the second is building teams of engineers and we have scientists, some like tom ansell. and we have many individuals -- the third thing is to work toward transparency. if we can work on these key things we can do something different. >> one of the things a lot of

people do not understand is the degree to which information technology and data analytics are putting life-sciences progress on steroids. it is something we have talked a lot about at my company. could you explain how that is happening and why it makes so much sense that google is in this business? by my analysis, it really does. >> what i can say is that patients and doctors have a tremendous amount of information coming at them. google has a responsibility and alphabet has a responsibility to take some of the same tools that help organize information that comes to patients and make it deliverable. we need to make this as easy as possible and i do think there are companies in a unique position to do that. emily: thank you for joining us today. twitter ceo jack dorsey says he is making safety atop priority. how exactly will he go about reining in online harassment? if you like bloomberg news, check us out on the radio.

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>> the top stories this hour. japanese stocks have been fluctuating with the yen today as investors weigh janet yellen's comments about gradual u.s. interest rate rises. the u.s. benchmark is up for a third day. energy and materials are leading gains after commodities entered a bull market. shares in shanghai down for a second session. theformer boj director says bank should scrap its timeframe for deflation to avoid having to take more drastic measures to get there. he says pros and cons would be different after concerns of further action that defy common sense. the boj board meets next week. sources tell bloomberg

samsung is considering two new smartphone models with bendable screens. one could even fold in half a cosmetic compact. we are told that uses organic technology and could be unveiled early next year, which would give it a head start on apple's iphone. those are the headlines. global news, 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. let's get the latest on the markets with juliette as japan comes back online. japangie we are seeing come back online, the nikkei increasing gains in the morning session. even though we have been seeing the yen very much fluctuate against the u.s. dollar, a very good pickup coming through from korea. the won his holding at its highest level since march against the dollar, boosting korean stocks, which close

yesterday. in shanghai the, market is weaker, underperforming the rest of the region, but it has been a good question in hong kong . hong kong stocks have been up for the past 10 of 11 sessions. hang seng is on its lowest winning streak since april, 2015. energy players are doing quite well. crude has been rallying on the back of janet yellen's comments. southeast asia looking good, philippines up by 1.3%, australia ibihigh by .5%. new zealand has had a bit of a switch up, but all in all we are seeing pretty solid gains across the region, the regional index up for a third consecutive session, now holding at those five-week highs, oil and gas and basic materials. checking in on the aussie dollar, we are expecting that the central bank will leave the

official cash rate. it is pretty unchanged, holding at .7364. that is the state of play in asian markets. >> u.s. treasury secretary jack lew is meeting with officials to a dress security and other concerns. he spoke exclusively to -- bloomberg news correspondent tom mackenzie is there. when it comes to cyber security, what is the u.s. going to be pushing their chinese counterparts on? >> are going to want more detail. this agreement was made between the chinese president she jinping and u.s. president barack obama nine months ago. an agreement that both sides said, we will not condone the corporate attacks by cyber

attackers and they want to see progress on that. when we spoke to the treasury secretary he said he appointed this to i.t. security and said this is an area where they have seen some significant progress. >> i think we have made real progress. in questions of exchange rates we have made progress on opening markets and we have a lot more to do with information technology. >> many have said that the disagreement -- poster handshake between the presidents. we did see a significant drop-off in chinese attempts at hacking u.s. corporations. there is some question on whether or not that is simply temporary or whether they have become better at hiding their tracks. some experts saying they have become very good at using money goalie in's and russians to hide their attacks. they will want to see if this is

a short-term trend or a longer-term change is a pullback their cyber attacks against u.s. corporations. emily: such as hacking that is a concern. were also talking about the control of i.t. infrastructure. >> the chinese are increasingly pushing for corporations to use services in china. the insurance industry is very concerned about these draft proposals on the wto and china pushing them to use chinese software and chinese hardware. the insurance industry says where her the top of the list when it comes to these concerns. already -- >> tom mackenzie in beijing. thank you for that update. moving to online harassment, twitter has often been criticized for its lack of

action against bullies, threats and online controls. he was harassed for someone anonymously on twitter. peta was sent to his house to signify that they know where he lives. thompson reported the issue to twitter and twitter suspended the account and then there is renee. while her story is more frightening they are both here to tell us all about it. parker thompson and renee, co-author of the hardware startup in your product business and brand. thank you for joining us. first of all, when i tweeted that you would be on the show, people started tweeting back at me with a lot of hate directed at you guys and renee. what you tell us the nutshell

story. >> last year, i got involved with the campaign to eliminate vaccine opt outs in california. as a mom, i was upset by the vaccination rates in my preschool and said i wanted to help pass a law to eliminate that opt out. i did not realize at the time how tenacious anti-vaccine people were. i did some research. i wrote a couple of articles about anti-vax activity on twitter how they changed their messages and immediately after the article was published i woke up the next morning and they had begun to tweet photos of me and my baby which at the time, i had not made every single file a put on the internet public. >> didn't they post pictures of you physically? >> you the back of my head walking down the street. i was at a rally in sacramento and they snapped pictures of the back of my head. they were doing this to

lobbyists in the campaign. they made harassment videos of me. i tracked down footage of me speaking and made harassment videos of that and splice me with hitler. occasionally, things got weird and creepy and i would turn to twitter to try to rectify the problem. emily: twitter decided this was a copyright issue because of a photo taken from facebook and put on twitter? >> when they tweeted the first photo of my infant, my nine month old, i filed papers -- a abuse of personal information complaint and it came back, we cannot gauge whether this is a violation and you will have to appeal it in another way. if you on the file you can file a copyright complaint but i filed a harassment complaint because they were tweeting pictures of the back of my head. i said you should be able to put two and two together. 48 hours went by and i received no response.

i called some of the and said what is going on? they said if you file a copyright complaint you will -- they will take that very seriously. i never realized that i sent my home address to the person stocking me. >> of a turned over that complaint to the accused which is standard and copyright cases. they say that they notified of this could be turned over to the accused. >> they use the word may. they say, we may turnover a copy of your complaint. they do not say we will transmit all of your personal identifying information. if you look at word press make that abundantly clear. >> either way they got all of your personal information. and our bloomberg intruding editor is still with us.

i want to hear about what happened to you. >> my case by comparison is less alarming but nonetheless a big deal for me. out of the blue on friday evening someone started sending me tweets. they created an account that was made just to follow and harass me. the first post is, here is your home address, we know where you live. do what we say or else. when i ignore that it was like, enjoy the pizza and a half an hour later pizza shows up which you might expect upset my wife. and if file a complaint with twitter. i hear anything back and continue to update them as this person continue to send messages. i didn't hear anything back from the person or twitter so about the middle of the afternoon

saturday my read of the situation is if i got e-mails saying this would happen, i would be very alarmed. >> i did speak to twitter about your situation as well. they did say that they suspended the account. jack dorsey -- we need to do a much better job of providing control. these issues persist including, right now, i am getting it in my feed simply because we are doing this segment. >> both of these stories are heart-wrenching. if you look at some of the anti-semitic stuff happening on twitter, especially to journalists who write things that trump supporters do not like, it is horrifying.

all you have to do is write an article some of doesn't like and have a jewish last name and you'll get tweets showing you at the gate of concentration camps and really horrific things. i find it very disturbing because i'm one of these people who believe the internet is all about empowering individuals. now i think we are at a new point where we need innovation to somehow give us new tools to fight back against the abuses that some empowered people are perpetrating on poor people like parker and renee and journalists like the one in the new york times, jonathan weissman wrote an astonishing account of his experience. >> what should twitter do about it? >> i will take us stab at that one. my situation should never have been pushed into copyright. it should've been done with harassment.

fact that it takes so long to get a baby pictures taken down or hey, we see you on the street and we know who you are or most recently it was a photo of me and hillary clinton they were erotically creating and to trump hashtags to make trump supporters target me. that is nothing to do with my work. it is not criticism, it is harassment. in addition to that, it is seriously subpar, compared to every other industry. >> the copyright issue aside, what about everything else? >> the fact that twitter is a solution is reflective to the way they think about this problem. twitter would like the world to be simple and have a mechanical set of rules they can follow. they very much value free speech and their role in those sorts of movements.

the first thing to say about this is it is not a free speech issue. they're saying, i do not think children should be vaccinated and i don't like your ideas. i'm watching you and i know where you live. think that twitter needs to bite the bullet and get into these messy issues and make hard decisions about what they want to see is a platform and how they want to protect their users. ultimately, they need to choose between being in a place where anybody can say anything whether it is intimidating or harassing or not. >> they took the a countdown, is that not enough? >> in my case, that is what i wanted. i don't think it's been the case. it hasn't been a solution for renee. i'm sure they've removed some of

these counts for harassing, maybe not. emily: there are a lot of them going after you. david kirkpatrick is our bloomberg contributor editor. thank you so much. coming up, birch box pushes its expansion will catch up with the ceo next. ♪

emily: in 2010, birch box set about to disrupt the way that consumers shop. six years later the company is at a bit of crossroads. they attracted a lot of competition. they are now looking to be known as a full spectrum retailer. how is the company expanding as

the venture capital market tightens? join us from new york, the birchbark ceo and cofounder micucci a. thank you for joining us. it's interesting that you have this physical store open now for more than a year and i'm wondering, what you have learned in terms of what to -- where to continue to invest in where to pull back. >> physical retail has been such an interesting experience for the company. a visa coming out of being known as the subscription box inventor in duty and recognizing that even from very early days we had an e-commerce business. we wanted to test whether physical retail would further cement us in the consumer mind as a place to buy beauty. it's absolutely been doing that in new york city but it is one store.

it is a very small part of the full business. >> i know you had plans to open new stores and you haven't yet. is that still the plan? >> it really is dependent on the capital markets. obviously there is so much growth in beauty online which was the original impetus for birch box that it is hard to shop for beauty for the first time online. we know there is a ton of growth they're so if we have to pick and choose, given that there is not as much capital as there once was we're definitely focused on e-commerce and the subscription service in the short-term but long-term we're focused on building the best place to shop for beauty for the average woman and in our minds that will include physical retail. >> he did lay off 50% of your staff. you talked about how venture capitalists have been focusing more on profitability. what have your investors told you?

>> that 15% was definitely something not that we initially ever expected starting a company. as we looked on the horizon and saw things change as far as people's interests in advancing dutch investing in consumer-based businesses and inventory we know it is important for us to control our own destiny and our investors feel the same way. the market has shifted from valuing growth and exponential growth and the cost that takes versus more responsible growth and an eye toward profitability. we had to change to do that. >> one of my favorite tidbits about this story is your new at leisure makeup line which is make up for when you are wearing yoga pants and sneakers. how big a business is that and what kind of makeup is that? >> we launched a few in-house brands and arrow is the line

you're talking about. we are looking at other categories and it is really meant to match this movement crossing over from people having an active lifestyle, jumping into a workout class but also wearing that look all day and not wanting to be overdone. wanting it to be really simple and natural looking but love wearing. we challenge ourselves to see if there could be a beauty equivalent of the movement and it has really taken off. >> you can really outspoken about the challenges facing women founders. six years into this process, i'm curious how your views evolved. anyway you slice it, women are getting just a small slice of what men get when it comes to venture capital funding. >> it is hard to have a business is on the female consumer

because naturally it is harder for investors to resonate with idea eventually it's also a benefit. in the sense of not being what everybody is seeing. i think there have been benefits to birch box. as a female-led company being invited to a seat at the table even before we had earned one. being diverse of also brought -- being diverse has also brought us benefits. but if you have something the majority of investors cannot resonate with personally, you really have to do the work to make sure the empirical data is much more compelling. that is what other founders are tasked to do as well so we will continue to have to see that happen until there are more and more investors that can resonate with this businesses that target different consumers. >> thank you so much for joining us today on bloomberg west. coming up tomorrow on bloomberg, the general motors ceo 7:00 a.m. new york time on bloomberg.

♪

emily: t-mobile is giving customers shares in the company for free. explains the giveaway earlier to a little. >> we have felt our customers need to get thanked. we did three things -- one is called stock up. we give every post pay customer share stock. new customers coming in getting a quarter share of stock but also anybody that refers somebody to come -- a five year plus customer can get two. >> one share of t-mobile stock at the close of trading on monday.

it's time to find out who is having the best day ever in today's winner are uber drivers. uber is making changes to the app that will keep drivers happy. the legal to check the app for gas prices at nearby stations. they will also be able to enter the final destinations which will allow them to be set up with a driver. it will be available in about a dozen u.s. cities. that does it for this edition of bloomberg west. tomorrow my interview with john hennessy. that is all today from san francisco. ♪

manus: saudi arabia approves a plan. public-sector wages will be cut. rishaad: hillary clinton said she is on the brink of history. she would be the first woman to lead a major u.s. party. it is a day of decisions. the rb