♪ the best ofis bloomberg west. if she is not supporting donald trump, will she support hillary clinton? the rise of the machine. ourbot revolution headed to hospitals. tech will replace 80% of what

hospitals do. man versus machine next. uber switches gears. app will now allow users to book 30 days in advance. this week, hewlett-packard enterprise hosted their annual discovered conference in las vegas. hp announced a partnership with ge were the two companies over together on the internet of things. week caught up with meg whitman and asked her about everything , and donald m&a trump. we began with just on how the company is faring after the split. fabulous.it has been in this day and age, when things are moving as fast as they are,

it is easier to be smaller. c and hewlett-packard enterprise have been happy with how it has played out. emily: do you see others following the model that leaner is better, or do you see them poking of, bigger is better? >> it depends on the industry. we have seen a lot of divestitures. with the pace of change, in every industry, you have to be fast. we thought it would be better to get smaller. companies have different strategies. we chose to get smaller, dell chose to get bigger. they have chosen to lever up. we have chosen to lean into new

technology make the internet of things that you talked about. dell is actually doubling down on old technology. different strategies for different companies. emily: you said internet of things is the opportunity for you. i'm curious. would look at internet of things first is cloud, how much growth do you see in one versus the other? >> if you think about our current business and hewlett-packard over the last two years, it has been largely data focused. a whole new area is campus, branch, and edge. think about autonomous driving cars, smart engines. willhappens is compute

have to move to the edge. you don't have the time to process the data and put it out. but about an autonomous car. that is making decisions in real time. we see a bit opportunity about compute at the edge. on the edge and campus and branch. it is a huge opportunity for us. early stages, but we think it is perfectly matched to our core dna. compute at the edge has to be small and have very low power consumption. you spent a lot of time talking about cloud at the conference. there is pressure on everyone, including hardware producers like yourself. growth to see for the long run given the pressure for

the industry? think this is a 1%-3% growth rate category over all. there is composed will infrastructure changing the name of the game. not everyone wants to put applications into a public cloud . then, we had an interesting conversation with drought who was a company born in the cloud, who is moving back into the data center into a very advanced infrastructure designed for their data center. as it got so big, they needed more control. they have done the opposite. they have moved into a hybrid cloud environment in a more traditional way, their own ability to do compute and

networking. the mega valuations of private companies have plateaued . how do you think that impacts potential m&a and how interested are you in m&a? >> i think many of us predicted in theould be correction value of the companies. it came to be true. ,he valuation gets very high and they come back down to earth, and it is a cycle. the valuations will be more reasonable. we are interested, but at the right price, and complimentary areas. what has worked for us is it acquisition of great complementary technologies that we can put through our distribution systems. by the way, they were not that

expensive. we have to be very cautious. frankly, for a return on , in thatcapital basis case, a share of buyback would be a better choice. area might you specifically be looking out for the future? thee are interested in industrial iot, infrastructure defineds, software infrastructure companies. we decided to do converge on our own, hyper converge on our own. we always have to make a decision. we want to invent it ourselves, or would it be quicker to buy? we have to buy at the right price. >> you have done an outspoken critic of donald trump. i'm curious. have you had any conversations with the gop establishment about

finding another candidate, a third-party alternative? >> no. i have been clear and on the record i do not think donald trump is the right answer to the president of the united states but i have not been part of the third party candidate. emily: does that mean you will endorse hillary clinton? to think she is more fit to be president? >> we will see. i want to get an understanding of what the final platform will be and i will make a decision later in the summer about what i'm going to do. emily: either way, hillary clinton is the first female presumptive presence will nominee. you have broken through so many glass ceilings yourself, get, there are still so few women ceos of big technology companies. you often get lumped in the same how dos marissa mayer --

you feel about that characterization? to think there is still a different standard for women in business, especially at the top? i look at the positive of this. progress we have made is really amazing. there is more work to do, but .here are more leaders there is still more work to do. in the areas of technologygineering, , and thus, i encourage women to go into those areas because we are at the end of the beginning of another phase of technology innovation. big opportunities will be as great as they were. i.t. was the defining industry

of my generation and think it will be for the next generation as well. i was asked the other day, what 17-year-oldll your self? i would tell myself to be an engineer. emily: you have done well for yourself. can hp itself become a target? >> you never know. off, therewe spent will still be a $33 billion business with 55 employees all globe.e you never know what happens in this industry. really excited about the future of hewlett-packard enterprise. edge., branch, and, of course, software

compatibility. i think we have a great chance to be super successful. by the way, we are out doing our .ompetitors every single day we have taken share in networking. shrunk 3%. emily: now that you have created all of this extra opportunity, what is next for you? how long do you plan to continue to be ceo? would you ever get back into politics? >> we deftly will not get into elected politics. that is for sure. i've told the board i will stay five years. that is coming up in september. i love running these smaller companies. you are able to invest and spend

time with customers, and go deep. and having a great time. megy: our conversation with whitman. withg up, the caught up the founder of coastal ventures. that conversation is ahead. how computer science became the most popular major for women. stay with us.

emily: technology will replace up to 80% of what doctors do in the future. that is according to the cofounder of son microsystems. we caught up with him for an exclusive interview and to explain the prediction. >> i wrote a blog that the sickly said more than 50% of all jobs that exist today will be

.islocated in 40 years that is 40% of 80% of jobs i don't know. the past could not replace human judgment. now, we will. it is an example of what machines can do. this intuition -- it could be done with proved force power. that is different. it makes much better reliable predictions. it would be really good for society. great wealthwth,

production. emily: a 50% of jobs are replaced by technology, with the same amount of jobs be created? is unlikely. be goneore jobs will and then created? commentinge a doctor on my comments, they are not systemed to say what a can do. they are completely clueless. in fact, they are completely clueless about what they could do one week before. experts are the wrong people to ask when the changes come from outside the system generally.

there is a probability that jobs would be disrupted. disruption is good for somebody and bad for other people, especially the people being disrupted. i think we will have to say that capitalism will do more than optimize for efficiency. forill have to maximize efficiency at the same time. about theyou think technology companies and the most powerful technologies of today -- google, apple, facebook, amazon -- one of those is no longer led by founder. how much innovation do you think is still left at apple? big companies without founders have a very hard time. the two sensible things.

sensible and big innovation to not go together. a big process person and can deliver things on schedule, you are the kind of person that is essential to delivering goods, but disruptive to real innovation. you kill it. they to some crazy things. they are trying all kinds of things. i think founders have personality traits that are unreasonable and maladjusted. that leads to innovation. non-founder companies have a much harder time.

it is too early to see what apple will too. i hope i am wrong. big companies, especially outside of tech, have a hard time waiting. time: to think now is the orn india can charge forward will there be hurdles to continue to hold them back? >> he studies the problem quantitatively. he is not an emotional person. he is very quantitative and how he looks at things. even when he started selling books, he was talking about, in 1986, white was best starting point. when jeff says he will invest in india and spend more time on

have,erce in india than i i completely believe he is doing a smart thing. i do not believe it is without risk, but it is risk-adjusted. bet hely a very smart is making. if you're talking 10 years, india will be a great market. emily: if you could write a post in response to bill gurley, what ?ould you write >> it was written in response to press on markdown. it is silly to write an article about a company like uber, dropbox, or airbnb that somebody at fidelity marks down. the market down, and one month later, they market up again.

if these companies were public, their stock prices would go up and down every single day. if they go up and down in the private market, why are they used? i think it is silly to the press headlights to write about, and they do. issue.it is a silly they get a great valuation, and they should take it. -- ifaluations come down they are smart, they can get more money, and that money will last. when money is freely available, a smart founder spends lots of it because it is cheap, to reduce marketing risks, or product risks, or some other risk. emily: you have been

supportive of peter thiel. where do you draw the line when it comes to freedom of the press and criticisms of technology and industry? >> the definition of what the press is is very ambiguous now. is a bloomberg journalist the same as a hustler magazine journalist? is a blog poster a journalist? what is the line? that, there are two things matter. anything that goes without checks and balances is going to out.

if there are no checks and balances, there are people like gawker. buzz feed is little this way too . the resort to a style of journalism that makes the new york times chased them can produce its standards of journalism. clearly media is being under stress. what i have seen its fact checking from "the new york times" has gone way down compared to 10 years ago. i do not blame them because they're chasing this instant news idea. what bothers me is when the new york times starts chasing what they call press, and lower the overall standards. checks and balances is really important, and the press plays an important role. decrease the quality of the press, it is a real problem. also, diversity of the press is

important. i care about what gawker has done to "then your times" standards. of diversity,g the venture capital industry has been under pressure for not hiring enough women and minorities. i'm wondering what your position is on this. you do not have any female partners. >> i think it is happening too slowly and needs to happen more fast. i can do way to solve the problem is get more women into tech and engineering kinds of positions at the ground level so that 10 years later they can be a much bigger part. up, uber will now allow you to schedule a ride 30 days in advance. will this keep them ahead of the

competition? ♪

emily: uber is rolling out a new scheduling feature that allows you to book rides 30 days in advance. they said the advanced scheduling feature will begin in seattle before expanding to other cities. this is a bit of a turnaround for it over. this is the ceo. take a listen. travis: some people want to schedule a ride and we want to be so reliable that you do not have to schedule. i am like, you took a shower this morning, didn't you? did you schedule taking time with your shower? we want to be that surprising. at some point that will not be surprising. emily: the global experiences director tom fellows joins us. why and how did travis change his mind? tom: the voice that speaks most

loudly at uber is the voice of the rider. one of the things that we figured out how to do is how do we create a scheduling ride service for writers but build on top of our on-demand platform? emily: why the change of heart? tom: we listened to our customers. when they tell you something again and again it is exciting to go, we hear you. intellectually everybody understands uber is available. emotionally if you have that early morning ride to the airport, you feel better knowing it is taken care of. emily: as a customer i very excited about this because of that emotional reaction. lyft said they started testing that before you came out with it. tom: this is something people have been asking for a while and it is nothing new for us.

we have been working on getting it exactly right so it is extremely reliable. emily: how much additional business do you think this will drive? tom: a lot of drivers tell us they would have taken and uber car but because of the emotional endurance they did not. maybe you have a meeting that will be ending at a certain time. those are the folks that will be using this feature. emily: is there a number you put on it? tom: not right now. emily: how do you balance the ride schedule? tom: that is a great question. from the riders perspective, this is a scheduled ride. the car will show up when you set the request but from the driver cost perspective, this is just like any other ride. our system does the job of distributing it to the nearby driver. emily: so there is no idle time? tom: that is exactly right. everything is about efficiency and so for the way for us to

keep this extremely efficient is for our technology to get really good at dispatching the right driver at the right moment. emily: i know you came over from google announcing that waze will allow carpooling. how do you think of that in terms of competition? tom: competition is great so i am not one to talk. we all listen to our customers and think about what is the best thing we can do for them, which in the context of scheduled rides i'm excited to roll this out today. emily: i was speaking with the

somewhat earlier today who says the customer is not always right. tom: drivers are really important customers on our platform so just this week we launched another big feature that was directly requested by our driver community called driver destination. it allows a driver at the end of their time to say, i am ready to go home, please only give me a ride headed in my general direction. it is not something we had originally intended to do but because of our driver feedback we decided to build that feature. emily: what is it like working at uber? tom: this bead that we launch is unprecedented. emily: that was tom fellow, global experiences director at uber. john hennessy's exit interview. he steps down but his legend

lives on. if you like bloomberg news, check us out on the radio. you can listen on the bloomberg app or on serious xm. ♪

emily: welcome back to the best of bloomberg west. i am emily chang. john hennessy will step down as president of stanford university this august. he has reigned over the university for the past 15 years and attracted more applications than any of its ivy league competitors. we asked about his legacy at stanford and how computer science has become the most popular major for women during his tenure, and how important it is to keep it up. john: one of the things we had to do was break the stereotype that computer science was all nerds who cared about programming and computer games.

i think as we saw information technology reach more and more parts of our society, it became clear to women that there was an opportunity to make important contributions. there is a breakthrough phenomena that occurs once you get to a certain critical mass. people feel more comfortable because they seem more people that look like them in the classroom, and we managed to make that breakthrough. we have turned the corner in the case of women majoring in technical disciplines. emily: why do you think it is that computer science in particular has become such a male-dominated field, especially at the university level? john: i think it's origins go back a long time to probably the computer gaming era. the dominance of males was considerably larger than it is today. i think engineering has always

tended to have more of a male presence but i think once you begin to think about engineering as solving critical problems around the world, you can get young people excited about the work they can do by mastering the subject. emily: stanford has been part of the founding stories of google, cisco, and yahoo!. do you think you have found the right balance between fostering entrepreneurship and education? some critics may say stanford makes it too easy to start companies and too easy to drop out. john: everybody has this image that a lot of students have dropped out to start their company. most of the students who dropped out came from a school on the east coast. most of our students have finished their degree before they start their company. that has worked out very well. we think education still plays a big role because the best companies have a core technology or discovery about them, and the university is often the place

where that initial insight is captured. students need to think about not just what they are going to do after graduation but the long-term nature of their career. emily: howdy respond to the contention that stanford may be too cozy with startups, and some of the ethical issues raised about professors investing? john: there are certainly issues involved ensuring that people are not in a conflict situation between her academic role and whatever role they have in the valley or in a company. we try to ensure that that, those two roles are distinct and separated, and in particular, students do not get stuck between two different roles.

for example are -- for example, a company cannot advise a student that they are employing. emily: speaking of a certain school on the east coast, harvard, when offered an opportunity to take startups in the x fund which backs startups founded by harvard students, said they did not want to take any equity, however stanford does take equity in the companies that come out of the startek's and q bader. why is that the right model? john: we want to be on the same side as our alumni entrepreneurs by then and we want to be helping support them and ensure that they are successful.

investing in the companies that we believe have great opportunity is a way to do that, that aligns the interest of the entrepreneur and the industry. emily: that was stanford university president john hennessy. you can catch more of the interview on our website, bloomberg.com. coming up, a japanese messaging app could deliver the biggest tech ipo of the year. a competitor that gets as much daily face time with its users as instagram and snapchat. ♪

emily: just when he thought the tech ipo pipeline was dried up, the chinese messaging app line is aiming for what could be the biggest tech exit per year. the on-demand meal kit startup blue apron seems to be taking the first step toward the idea. more than 160 private companies are currently valued at $1 billion or more. we spoke with david kirkpatrick and alex barinka.

first of all, let's talk about line because they originally filed a couple of years ago in tokyo with a financial -- potential nine billion dollars valuation. alex: it did not go through and they are coming at it from a different approach. they are looking to raise $1 billion to $2 billion and about half of that from u.s. investors. they are coming to market now, they have seen some slowdown in their business, but it seems like they are now ready to take those steps, be a 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 of its business comes from outside of its native japan so they have some growth prospect they are hiring -- eyeing. emily: as i understand it they have about 200 million monthly active users but years or growth has stalled over the last few quarters even though they say they are profitable. alex: they say they are profitable, user growth has stalled. you still see revenue growing at 30% this year from last year. line makes about $5.10 a user. when you are looking at what u.s. investors will be comparing the company to, you look at twitter who makes $7.70 a user and facebook who makes $11.70 a user. they are not quite taking as much on the user. that would be one of the pain points for line. they have talked about that odd sales only talks -- only makes up about a third of their revenue. like facebook and twitter, it is

a majority of the revenue so that could potentially be where they are looking to grow. emily: the revenue is more diversified when you look at where it comes from, 35% from advertising, some from content and games, and digital stickers provide something like 20% less revenue. do you think line will be an ipo that other companies go watch, or is this too unique a case? david: even though it is tempting to compare them to whatsapp or we chat, actually pioneered many of the techniques that other companies are currently using, particularly stickers. they are more like a media

company and content company, and the interesting thing about the ads they sell, they swear targeting from the pipe and try to be more the ally of the user. they are getting a lot of their revenue from celebrities and brands who gave -- who they give access to their users. it is kind of a powerful model. i think in japan they are an amazing brand with unbelievable strength as a company. i think it is going to be a growing company that is a decent company for the long run, and i do not think it is crazy they are going public. emily: interesting, you have also got some news about blue apron having preliminary talks about their exit strategy. alex: blue apron has held talks with bankers to discuss potential plans, the possibility of going public in the next 12 months. an ipo would mean evaluation of around $300 billion publicly. what this really communicates to me within this darth -- dearth of tech ipos, some of these companies that are further along

are starting to look to that ipo exit route as something they would consider, which we have seen a lot of the larger as we call them, unicorns tapped the brakes when it comes to going public. good news for my market. maybe for blue apron, we saw some sort of activity happening in what has been a slow year for tech idea -- ipo's. emily: alex barinka and david kirkpatrick. the localized e-commerce app that got one of the best shout outs in merrymakers annual ceo report. ♪

emily: turning now to silicon valley's most important slide show of the year, merrymakers annual inter-net report. this year's presentation included some seriously sobering themes like the fact that smart phone markets are slowing. and in the company -- e-commerce company called offer up got a shout out. offer up's daily you search time has gone how are -- usage time has gone higher. the ceo joined us here on the set. i was in the audience when mary meeker mentioned you guys. what do you attribute the recent growth surge to? is it because the way the product is designed, the way the images are emphasized? >> i think because of the smartphone we can really reimagine the way people buy and sell locally. something we find that people enjoy, they can discover what is

nearby them wherever they are because of their phone. emily: craigslist is the obvious and comment and next door is the place where you can sell things in a hyper local market. how du pick them up? nick: we are very focused on creating the best experience we can. while there are a lot of different competitors we are focusing internally on trying to create the best experience for users. emily: how do you adjust the stranger danger factor? nick: we have a handful of features such as ratings and the ability to scan and id if you do that you become a 2-d member on our platform. it is an endless pursuit and there is a lot of things we need to do. emily: you have grown a lot faster than ebay.

are you going after the same market, a different market? nick: we want to be the best at local and we want to transform how people buy and sell locally. we do not even use the word -- classifieds. ebay is a bit of a different animal. we are more focused on the local aspect. emily: can you ship or do you have to drive and pick it up? nick: we are more focused on the in person transaction. emily: that does it for this edition of the best of bloomberg west. join us on monday from live coverage of apple's worldwide developers conference. on tuesday we are live from our bloomberg technology conference. the theme is invention. we will have andreessen horowitz and next gape cofounder and andy rubin on tuesday on bloomberg. ♪

narrator: the challenges facing our world are growing all the time. how do we build stronger economies with equal opportunities for all? how do we build a sustainable world for generations to come? how do we protect our cities and harness the power of technology for our common benefit? using the latest bloomberg research and analysis we will make sense of the problems of tomorrow. inequality, sustainability, artificial intelligence, the gender gap, and the demographi