tv Bloomberg West Bloomberg June 8, 2016 6:00pm-7:01pm EDT
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police saying palestinian gunmen opened fire, killing three israelis and wounding five others. the gunmen were detained. iraqi counterterrorism forces are a step closer to be taking a lucia, one of the last strongholds of islamic state and has been a haven for militants since the 2003 invasion. the british government is extending the registration deadline for its june 23 referendum on eu membership until thursday. a late surge in applications created technical issues on a registration website last night less than two hours before the deadline. despite hillary clinton now being the democratic party's assumptive nominee, bernie sanders still is not 100 percent in her rearview mirror. sanders says he will continue to make his case through the final primary and washington, d.c., next week. mrs. clinton does not have the obama,ment of president at least not yet. that is expected to become soon
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-- that is expected to come soon, but the white house press secretary says it will not the meeting at the white house between president obama and senator sanders. "bloomberg west" is next. ♪ emily: coming up, meg whitman takes stock. it has been eight months since the hewlett-packard enterprise ceo oversaw the historic that of hb -- hp. plus, if she is not supporting truck, will she endorsed hillary clinton? and we will discuss what it means for local competition. tech ofodd -- fiat's
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section after partnering with google to build a fleet of self driving minivans. the company in talks with goober about a driverless car partnership. first to hourly -- hewlett-packard enterprise is holding its annual discovery conference, the first since it's lit into two separate companies. hpe announce a partnership with ge with the companies will work together on the internet of things. we caught up with ceo meg whitman and asked about everything from tech m&a to donald trump and if whitman herself will ever go back into politics. we began on just how the company is airing post split. take a listen. whitman: i have to say the split has been fabulous. it is in this day and age when technology is moving at lightning speed -- frankly, i think it is imperative to be smaller so we can go faster. it actually has been easier as
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separate companies then it was as one big company. we have all been pleased with the split and how it has worked out for employees, customers, and shareholders as well. are creating, as you said, a much more nimble company. do you see others following that model or going the dell route, ? lking up whitman: i think it depends on the company, their leadership, the industry. we have seen a lot of divestitures and carveouts in and i do notonths, know if it is because of us, but i think people are realizing that with the pace of change in every industry, you have to be asked. we thought it was important to get smaller, but companies have different strategies. we chose to get smaller. dell chose to get bigger. we chose to deal ever the company. they have chosen to lever up. into newosen to lean technology like the industrial internet of things that you talked about. , andnside every server
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dell is actually doubling down on old technology. different strategies for different companies. i like our hand. emily: you said internet of things is big for you. when you look at internet of things versus cloud, how much growth do you see in one or the other over the next five years, ? t's say whitman: if you think about our current business, and the business of hewlett-packard over many years has largely been data center, and there's still talk of growth, if it's private or compose a bull into structure -- infrastructure and things like that, but a whole new area is and we call campus, edge, branch. think about autonomous driving cars, smart hospital beds, jet engine's. what will happen is compute is going to have to move to the edge where that data is being collected because you do not have time to bring all that data
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back to a data center, process it, and end it back out. think about an autonomous driving car -- that car is making decisions real-time about data it is collecting. even one second or half a second latency will not be good enough, so we see big opportunity about compute at the edge. wireless lan at the edge, so we think it is a big opportunity for us. in stages, but we think it is perfectly matched to bestore dna of being the in the world. compute at the edge has to be small and has to have very low power consumption. you spent a lot of time talking about cloud so far at the conference and amazon is putting so much pressure on everyone, especially hardware makers like yourself. given that, how much growth do you really see for hpe in the long-term given how much pressure amazon is putting on the entire industry?
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whitman: i think this is a 1% to 2% to 3% growth rate category overall, but there are real pockets of growth. as i said, compose of infrastructure. change is the name of the game for infrastructure as we think about private cloud. not everyone wants to put all their applications into a public cloud. some want a private cloud. that is a growth area for us. we had a really interesting conversation with dropbox who is a company born in the cloud, who is moving back into the data center into a very advanced infrastructure that is designed for their application in their data center because as they got so big and it began to cost more , they needed more control, so they have done the opposite. they have moved from a public cloud back into a hybrid cloud in a moret, traditional way, their own ability to do compute storage and networking. the ipo market is
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stagnating. the mega valuations of either technology companies have plateaued if not decreased. how do you think that impact potential m&a, and how interested are you in him in a -- in m&a? whitman: many of us protected they would be correction in the value of some of these startup companies. last year when we talked, we had that very conversation, and that came to be true. we see this in silicon valley. valuations get high. i think it is advantageous for a like hewlett-packard because valuations will be more reasonable. we are interested in m&a but at the right price and complement treat areas. for example, what has worked is the acquisition of aruba. by the way, they were not overly expensive. we played -- we paid a fair price, and we have to be very cautious because frankly, from
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our return on investment, share buyback would be better for a company with little operating profit. >> what companies might you be looking at for the future? >> we are interested in the iot, software defined infrastructure companies that can complement the suite of products we have. we decided to do converged on our own, hyper converged on our own, so we have to make the decision if we want to invest in ourselves or if it would be quicker and more expedient to buy, but if we can, we have to buy at the right rice, and we are going to be very disciplined about that. have been an outspoken critic of donald trump. i'm curious -- have you had any conversations with the gop establishment about finding
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another candidate, a third-party ? ternative >> no, i have been clear on the record that i do not think donald trump is the right answer to be president of the united not had anyi have third party candidates. emily: does that mean you will endorse hillary clinton? does that mean you think she will be more fit to be president? whitman: we will see. i want to get through the conventions, see who the vice presidents are. we will make a decision later in the summer about what i am going to do. emily: either way, hillary clinton is the first e-mail presumptive presidential my many. you have broken through so many class ceilings yourself, but there are still so few women ceo's of big technology companies, and you often get lumped into the same category as marissa mayer lumped in big
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turnarounds. do you think there is still a different standard for women in business especially at the top? whitman: i look at the positives of this, which is the progress we have made since i came out of college is really amazing. more work to do, but there are more leaders today because we have made a lot of progress, but there is still more work to do. my counsel to young women is science, technology, engineering, and math. those areas of study, if you think that could be of interest to you, i encourage people to go into the hard sciences and computer science because we are at the inn and really at the beginning of another phase of big technology information. the opportunities are going to be as great as they were the mean, i.t.30 -- i was the defining industry of our generation, my generation. i think it will be the defining industry of the next generation
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as well. i think i was asked the other day what i would tell my 17-year-old l, and i would tell my 17-year-old self to be an engineer, and i was not. i was an economics major, but if i had it to do over again, i would be an engineer. emily: you have done quite well for yourself. i appreciate the advice. ? uld hbd become a target whitman: you never know. there will still be a $33 billion business with 50,000 employees, all across the globe. it's not a peanut, but you never know what happens in this industry. obviously, we will see, but we are really excited about the future of hewlett-packard enterprise. there are so many opportunities, and of course, our software portfolio, be a security or big data analytics with haven on demand and vertical, that we talked a lot about at this
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conference, there's a lot of opportunity. i think we have a great chance to be super successful. by the way, we are outdoing our competitors every single day. think about storage, every quarter, we have taken share. we have taken share in servers. we've taken share in networking. now that you have gotten the company into this better position and created this opportunity, what is next for you? how long to you intend to continue being ceo? would you ever get back into politics, given everything that is going on? whitman: we are definitely not getting into elected politics, that is for sure. we will see. i told the board i would stay five years. that is coming up in september. i'm having a great time. i love running small companies. you're able to be nimble and , so i'm having a great
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time running hewlett-packard enterprise. my conversation there with hp enterprise ceo meg whitman. according to reports, the newly minted next ceo is telling employees the company is not for sale. the maker of smart home appliances has been in the spotlight since the announcement the founder is stepping down. the parent company has said little about the executive shakeup, but at the company shareholder meeting wednesday, eric schmidt said some of the company's other bets will undergo changes. >> we have created these other initiatives. some will do great, some will do poorly. they are led by very strong ceo's. it is a dynamic environment. we will change them. we will address them. it is a very serious environment. next kid of years, you will see the ones that will grow
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very quickly and the ones which will add and the ones that will go and try to resuscitate because the product did not work as well as we wanted, and that is how innovation really works. at the meeting, he laid out top areas of interest, like artificial intelligence assistance, self driving cars, and health care research. also on the list, the so-called development of meatless meat, made from plants. we dive into amazon's new $3 billion that, plus, the craigslist competitor that gets as much daily face time with users as snapchat and instagram later this hour. ♪
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emily: arianna huffington may be gearing up to expand her media empire. huffington has held talks with investors about a startup called thrive, which would be a lifestyle content platform with contributions by celebrities that would also provide wellness consulting services to companies. now to india. the e-commerce giant amazon has announced it is doubling down with an additional $3 billion in the country, bringing the total investment in the company to $5 billion. themove further establishes tech giant poised to see a boom, so does it mark a start to
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e-commerce in india? our correspondent who covers amazon joins us now from seattle. , paint a picture for us -- how well is amazon faring against other competitors in india? a big playernitely in india and has quickly emerged as a contender. flip card and snap dealer having challenges with fundraising. we were talking before the show about morgan stanley write-downs and how they will face it more difficult fundraising environment. that seems to be the opportunity an time tosees invest heavily while competitors are a little week. originallyan stanley
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wrote down their investment specifically by 27%. what are some of the specific challenges amazon and jeff bezos will be running into? there's so much talk about the slow governmental progress and bureaucracy in india. can amazon really cut through that? >> they have adjusted their model. they operate as a pure marketplace model. fromare simply a past connecting buyers and sellers. they do that in the u.s. as well, but they do a hybrid version where they inventory and are also a marketplace, so they are able to find a loophole to operate there, and big challenges are shoddy internet connections that can go out all the time and also infrastructure, so they have people making deliveries on dirt bikes over dirt roads. theylot of challenges, but also see huge opportunities.
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penetration fairly small. tremendous headroom. there are challenges of they are willing to commit the resources, which is something they have proven time and time again, they are willing to make the long-term play and invest the capital needed to see that opportunity. obviously, india has a huge population of customers and potential customers, but what else makes india such a huge potential opportunity? >> it is not just a place where amazon is looking for potential customers, though that is a big part of it. india is also a strategic company in terms of procuring inventory. huge source country for amazon. long-term ambitions,
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connecting a customer anywhere in the world with a product anywhere in the world, and india is a key country for that, so it would be a place where they can't not just sell goods within the country of india but also find suppliers including textiles, which is an area amazon is really ramping up in to fashion industry, places find inventory directly, cut out the middleman and get it directly to shoppers in the u.s. . alibaba'm curious what 's ambitions are. is india a country that they are targeting? >> they are kind of doing the pinky toe in the pool kind of approach. everyone is waiting for the big e-commerce showdown between amazon and alibaba.
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india will be the country where we will see it. while amazon has backed off of china to focus on india, they are kind of dancing around one another in the ring, but we still have yet to see the big amazon alibaba square off. a showdown. everybody wants to see it. thanks so much. now to another story we are watching -- apple is tweaking its revenue model for the app store. the company will encourage and willion-based apps also implement a revenue-sharing program with developers by cutting its cut from every app sale to 15% from its current 30%. changes take effect on june 13, the day of apple's worldwide hereopers conference right
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patent filed earlier this week, it may be luke skywalker proved. the magically headset will include vision slips so users can see their actual surroundings. the secretive startup has raised 4.5 billion dollars from the likes of google and ali baba. coming up, france is looking to build a reputation as a tech have. and if you like bloomberg news check us out on the radio. west next.erg ♪
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will rely on his star power to earn free media. he also says he is considering former -- four or five politicians including former running rivals as mates. india's prime minister told congress that robust cooperation will benefit both nations. >> we trade more with the u.s. than with any other nation. the prime minister also agree to ratify the paris trade agreement. he did democrats will meet in the runoff for california's open ..s. senate seat it marks the first time in about a century that republicans will not be on california's general election ballot for the u.s. senate. maria sharapova has been
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suspended for two years by the international tennis federation for testing positive for mulled onium at the australian open. mark crumpton. it's just after 6:30 p.m. wednesday in new york, 8:30 a.m. in sydney. paul allen has a look at the markets. paul: good morning. another very strong lead from wall street, but it's not translating into big gains. we are expecting modest gains on but declines on the nikkei. the new zealand dollar did spike very powerfully this morning after the bank of new zealand decided to keep the cash rate on hold at 2.1 to 5%, concerned about the strength of the dollar pushing toward 71 u.s. cents, but also balancing that against
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a red-hot housing market. to staykorea expected at 1.5%. expecting a cut, but there is a consensus there will be a cut sometime down the track in 2016. a word about china as well, inflation data out of there, cpi expected to remain steady, while the producer price index is expected to improve slightly to oil% largely thanks to prices. markets in china, hong kong, and china were all closed today. ♪ this is "bloomberg west." the french government has made luring tech companies to the
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country a top priority. they convinced they's book intel to open offices in the country. yet, some tech companies have criticized the country's business practices for being too tough. the french ambassador for international investment and ceo of business joins me now here in the studio. thank you so much for joining us. first of all, paris has quickly in the last few years become a huge tech hub, and it has happened very fast. what is driving that change and how would you describe the transformation? >> it is very vibrant, but we had a basis with very strong engineering. one million engineers in france and 80,000 new every year, very .ell known here in the valley
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,ow, they do not want to work half want to create their own software. .hat is a huge talent emily: what kind of companies are they creating? in fashion where paris has historically been the capital or other things? >> half-and-half. .ou know some of the names some are very well known now. some are just booming now. they will be famous later, but really, it is the environment. uber and google have been really vocal about their frustrations with working in france. france has come down pretty hard
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on them for business practices and tax issues. eric schmidt, chairman of alphabet, was the king at a conference in amsterdam and had this to say about working in europe. take a listen. lawsere are a gazillion that still make it difficult to be an entrepreneur. it is much harder to be an entrepreneur in europe than it .s in america the regulatory tax policies, the amount of time it takes to create a firm and so forth and so on. what happens when i meet with governments is they all say yes and listen very politely and they are always very nice -- europeans are always very polite -- and then they do not do anything about it. emily: how do you respond to that? >> i believe in facts and figures. i would say first, entrepreneur is a french word.
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>> from our studios in new york city, this is charlie rose. >> she is the director of the cuban national center for sex aucation in havana and also gay rights activist. her havana-based organization, last month she led the largest day pride parade ever held in cuba. i had dinner with her in havana's i am
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