emily: this is the best of bloomberg west. we bring you all our top interviews from the week. meg whitman takes stock. she oversaw the sister split at hp. her view on the revamp. bush endorsed hillary clinton. the rise of the machines. a robot revolution is heading for our hospitals. it will replace 80% of what doctors do. we will hear his theories on man

versus machine. no plansouncing it had to the pop line to offer special offering rides. this week hewlett-packard enterprise held its annual discover conference in las vegas. the first since hp split into two separate companies. the two companies will work together on the internet of things. we caught up with meg whitman and esther about everything from technology to donald trump. whether women like yourself will get back in the politics. whitman: the split has been fabulous. in this day and age technology is moving at lightning speed frankly it is imperative to be smaller so we go faster.

i know hewlett-packard enterprise is really split -- pleased with the split. emily: you are spinning off the services business. others following that model that leaner is better or going the gel path bulking up. meg whitman: i think it depends on the company and the leadership and the industry. i don't know whether it's because of us. realizing with the pace of change in every industry you got to be fast. the future is going to belong to the fast. we thought it was important to get smaller. and dellto get smaller chose to get bigger. we chosen to lean into new

technologies. like the industrial internet of things that you talked about. dell is actually doubling down on old technology at a cost to them. different strategies for different companies. i like our approach. family: when you look at internet of things versus cloud. how much growth you see in one as opposed to the other. meg whitman: if you look at our has largelyness it been a dangerous center focused business. they're still pockets of growth there. think about autonomous driving cars and smart hospital beds. what is going to happen is compute is going to have to move to the edge. to bring alltime

that data back to a data center processing. think of it autonomous driving car. that car is making decisions in real time about the data is collecting. even a second or a half second latency is not going to be good enough. we see a big opportunity to compute at the edge. obviously wireless land. we think it's a big opportunity for us. i don't know how big it will be. compute at the edge has to be small and has to have very low power consumption. emily: 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?

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 environment, in a more traditional way, their own ability to do compute storage and networking. emily: the ipo market is 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 company 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 well for us 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 our return on investment, share bypass -- 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 industrial 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. emily: you have been 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 on the record that i do not think

donald trump is the right answer to be president of the united states, but i have not had any 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. 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 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. if you like 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 last 20 or 30 -- i mean, i.t. was the defining industry of our generation, my generation. i think it will be the defining industry of the next generation 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. could 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 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. emily: 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 invest, so i'm having a great time running hewlett-packard enterprise.

emily: my conversation there with hp enterprise ceo meg whitman.

emily: technology is going to replace up to 80% of what doctors do according to this man area >> more than 50% of all jobs that exist today will be

dislocated in 40 years. roughly. 80% of the jobs, i don't know. the machines could not replace human judgment. artificialth intelligence. a stunning example of what people say machines could do. intuition. this intuition about how to move forward. they said they could be done with brute horsepower. that is a different approach. it much better and more reliable predictions. it we very good for society. the great gdp growth and great wealth creation, we will have

income disparities and will have to address that. it is somewhat unlikely that an equivalent numbers of jobs we created. for the first time we may have a set of technologies that destroys more jobs than they create. an economist is not qualified to judge what the ai technology can do. just like a doctor commenting on my comment. not qualified to say what could happen 20 years from now. they were clueless about what else to go could do a week before it was revealed. experts are the wrong people to we will have to say

capitalism will have to do more than optimize for efficiency. forill have to optimize efficiency and fairness at the same time. emily: you talk about the importance of founder led companies. google, apple, facebook, amazon. one of those companies is no longer led by a founder. how much innovation is still happening at apple? >> big companies without founders have a very hard time innovating.

to be innovation has performed. and a're good manager good process person and can deliver things on time and on schedule you are the kind of person who is essential to delivering goods. but disruptive to real innovation. companies jeff bezos do some crazy things. we are introducing hardware your retailer like walmart. jeff is trying all caps of things i think founders have personality traits that make them unreasonable and maladjusted and that leads innovation. non-founder led companies have a much harder time i'm waiting to see what apple will do i hope

i'm wrong. but clearly the big companies generally especially outside technology have a hard time innovating. emily: jeff bezos just made a big investment in india. you think now is the time where india can really charge forward in the technological revolution or will there be insurmountable hurdles that will continue to hold the country back? >> i think jeff is a very smart guy. i wouldn't bet against him. even when he started selling books he made an announcement of 50 different categories.

if you cut about 10 years it could be a great market. emily: there's a lot of talk about the environment. beefght be with that -- my with that is that it was response to all the private valuations and markdowns. it was silly to write an article orut a company like uber somebody at fidelity marks down. a month later the market up again. their stockpanies

prices would go up and down every single day. it's a go up and down in the private market where they hear. i think it's silly and the press doesn't need headlines to write about. smart founders on the other hand should care about valuations. she taken into account. have enough money when valuations come down if they are smart they will assume they can't get more money. available as freely smart founder uses lots of infant spends lots of it because it is cheap. to reduce their marketing risk or product risk or some other risk.

emily: you have been publicly supportive of peter thiel in his lawsuit against walker. -- gawker. you said journalists need to meet taught lessons. where do you draw the line on freedom of the press? >> the definition of what the press is has become very ambiguous. journalist the same as a hustler magazine journalist? is a blog post the same journalism as something else? what is the line? there two things that matter. anything that goes without checks and balances will go out of kilter. buzz feed is a little bit this way to use today.

the fact checking out of the new york times has gone way down compared to 10 years ago. i don't blame them because they are chasing this instant news .dea what bothers me is when the new york times starts chasing what nick denton calls jazz. checks and balances can be a good thing. they are very important. the press plays important role. if you improve the quality of the press that is good. freedom of the press is important for the quality of the press is also important. the diversity of the press is important.

i don't like what gawker has done to the new york times standards. all the news fit to print. it is become all the news we can get out immediately. that's a problem. emily: the venture capital industry has been under pressure for not hiring enough women and minorities. .> i think is happening slowly a little too slowly. it has to happen faster. problem issolve the to get more women into tech and engineering kinds of positions at the ground level so 10 years later they can be a much bigger part of the startup world of the venture world. emily: uber will allow you to schedule a ride up to 30 days in

advance. ♪

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 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. 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 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. ♪ ♪

♪ terror andct of hague, 50 people gone that down at an orlando nightclub at the worst shooting in american history. elsewhere, the bears are ready to pounce on alibaba, a regulatory inquiry and the loss of an investor. shelving what may have been the biggest ipo in the world this year. welcome to "first up".