mark: in ottawa, the leaders of canada, the u.s. and mexico unveiled a private climate plan, calling for the electricity to come from clean energy sources by 2025. >> this partnership will see our country's stand side by side as we work toward the common goal of the north america that is competitive, encourages clean growth, and protects our shared environment now and for generations to come. mark: the three leaders say north america has the capacity, resources and moral imperative to build on the agreement. the turkish president says his

country will overcome terror groups. his comments come a day after a triple suicide bombing at the istanbul airport left 42 people dead and more than 240 injured. the government blames the islamic state for the attack. u.s. senate leaders say they will hold a final vote tonight on the puerto rico financial risis. e territory has a $200 billion bond obligation, but no funds to pay it. global news 24 hours a day, powered by more than 2600 journalists and analysts, in more than 120 countries. i'm mark crumpton. "bloomberg west," is next. ♪

emily: i'm emily chang. this is "bloomberg west." coming up, could brexit cast a shadow over business in the cloud? we sit down with the ceo of box, and how he's preparing for a european split. plus, one of the companies pioneering analytics to see how smart software is driving up satisfaction. this week, bloomberg is taking a deep dive into the world of pharma. one company developing a solution to peanut allergies. first, u.s. stocks rallying, paring losses post brexit as he market shows signs of regaining footing. tech stocks were among the winners. let's bring in ramy who is standing by in new york. break it down for us. >> basically, stocks rising for

a second day in a row, after two days of losses post exit. the nasdaq was the biggest gainer, around 1.9%. that is higher than the lows in the past six days. it was a broad rally led by energy, similar to what happened yesterday. oil rose 3%. the financial sector was also the second-best performer. with the gains today, i want to sort of rollback the hands of time to post brexit, just before it. in the past five days, the s&p 500 is still in the egative. we are down by 7/10 of a percent since june 23. if we look at the past four days, the snp is down by 2%. the dow is down by 1.75%. the nasdaq itself is off by bout 130 points. down the most percentagewise,

2.7%. emily: how about tech stocks, are they making up early losses? >> looking at that sector, it looks like pretty much all constituents were down, except for two over the past four days. you are taking a look at the biggest point losers in terms of the past four days. microsoft is down 9/10 of a percent today, but ever since brexit it is down by 2.6%. ibm is actually down nearly 7% ever since brexit. today, it is down by 2.9%. we also had the biggest point osers. network solutions te conductivity down by 9.5%, just about. we still have a ways to go. mily: thank you.

turning to the world of private tech companies, perhaps the silver lining on the cloud of uncertainty over the global arket. the global venture capital community may emerge from the brexit storm relatively unscathed. in 2016, the u.k. attracted just 3.5% of venture capital, with europe in its wake. to help rate down the dynamics, our bloomberg news reporter. it is almost shocking, how small a slice of global capital that europe gets. how will brexit impact that? >> it will make it harder. startups are hard. when people are focused, you look at founders and ceos, vc's, they are focused on building companies.

brexit is not the first thing on anybody's mind right now. europe has been a tougher place to grow for the last several decades. i don't think brexit will help any. emily: i wonder if other regions like china and the nited states will benefit. >> i have talked to venture firms who have said that. the u.s. stands to gain a little more of a higher footing. maybe before you are thinking about starting your start up in new york or london, now you are just thinking new york. emily: so, regulatory issues. it has been a difficult place for u.s. businesses to operate up to this point. how big a deterrent are these kinds of issues for that?

>> in the technology world, markets are getting flatter. companies are going global earlier in the lifecycle than ever before. europe is a big and important economy. companies want to go to europe, but frankly, it has been really difficult to grow in europe. even with the e.u., you have a number of small markets that group together. it is not really one economy like in the u.s. or china. we are actually seeing more companies in the u.s. go asia first, rather than europe first. i don't think moves like brexit help that at all. i think you will see the same is true with chinese companies. they're looking to go global, then they go to the u.s. and other regions of the world before europe, and we can continue to see a slide of free trade in europe. emily: we are actually talking to a company later, moving their headquarters to berlin. wonder if european cities can benefit.

>> a lot of people like to look to france for engineers. maybe they are worried it will be more competition to recruit, they may be looking to settle elsewhere. emily: do you see any bright spots for u.k. startups? >> i don't know if i see right spots for u.k. startups, but we have to look at the world we live in. we are in a world where technology shifts are moving rapidly. the move to mobile and cloud. we are seeing ai and machine learning increasingly becoming important for technology. this is a global trend. the world is getting flatter. despite what happens with populist movements in the u k and other places, even if global free trade goes down, you will still see technology catapult forward, and new companies and startups taking advantage of trends are going to benefit in one way or another. emily: do you think innovation will take a hit? >> innovation is a runaway train, and there isn't anything

that can stop it. that being said, global growth could slow. the impact innovation could have on society could be curtailed in a world where country stop trading freely with each other. that would be a shame. emily: thank you for joining us. thank you both. we are watching paypal getting a boost in wednesday trading on the back of takeover rumors. earlier this year, a report cited mastercard as a possible suitor. late last year, there was the suggestion of google. but a note said the mastercard proposition was "extremely unlikely," adding that a deal did not make sense, strategically. paypal has an average price target of $44. coming up, you will hear from a c.e.o. using the data to

upgrade your closet, big-time. plus, the challenges brexit poses to cloud computing. we talked to the ceo about the industry. ♪

emily: a new breed of retailers are disrupting the market using big data. the san francisco startup has an army of thousands of stylists and warehouse workers who sent personalized boxes to customers across the country. you buy what you like, send back what you don't, and pay $20.

you choose how often you get a new box. this is called the new normal. joining us now, the ceo. thank you for joining us. i was in the audience when stitch fix was mentioned three times in the annual report. what do you think is the new ormal? >> i absolutely think this is the future. i think the core of what this is, is personalization. in the old days, there was a time when you went to the store and try to find what you want, then you could go to the website and try to find what you want. now, we are bringing that experience to you in your home. to be able to personalize and understand what people's preferences are, so you as a consumer do not have to go through the whole world of products to figure out what's going to be best for me, it feels like mixing data science and being able to understand product and people really well, and combining that make it a etter customer experience.

emily: tell me more about the technological aspect of it, and how you are combining the human touch with ai and big data, and machine learning to give customers what they want. >> we have one of the bigger data science teams that we are aware of. almost 80 data scientists, over half have phd's. that team is building tools, so as we are buying products, and creating product and sending it to customers, we are doing it in the smartest way. for example, when the stylist is making selections, the stylist has data available to her so she better understands what dress is better to work for you. that is because we are able to collect this at of highly actionable data, around attributes of close that really matter. we understand what works for curvier people or tall people. for you as a customer, we understand are you looking for business, or formal type of

work where, or more casual things for the weekend. to be able to have this very high quality data, combined with traditional data science, we are able to generate accurate predictions. when stylists are making selections, the stylists can have a high degree of knowledge about what is likely to work. emily: what can you tell us about how many customers you have, and where the customers are? one of the things about stitch fix, i have friends in the middle of the country who are obsessed. it seems to have a broader audience. >> absolutely. we have a very broad audience. today, we are focused in the u.s., but we ship to all 50 states. what is amazing about the concept is that what a 19-year-old will get in her talks would be different from a 60-year-old. this level of personalization we are doing to address people on a one-on-one level, means we are able to address a much broader swath of customers, then a traditional retailer

trying to push anesthetic. emily: other subscription box companies have had trouble. how is this sustainable? >> we don't associate ourselves as a subscription company. you can get it à la carte if you like. every time you're coming to get clothing with us, we have a stylist building a relationship, making a personalized selection for you. that is very different. we are really focused on what we know matters, and the personalization really matters for us. emily: a visitor recently said to her profitable, when investor said $730 million for profit. what can you temperature us about how the business is doing and if you're business is profitable? >> we don't share specifics on

the financial side, but we have been focused on building a healthy business. we have not raised money and a couple of years. we are focused on making sure it is a business model that scales and works. we have hundreds of employees across the country. we are focused on making sure the business of personalization is here to stay. emily: you are working out and in-house brands. i'm curious about that. you are announcing a line for men. what does the future hold? >> the men's line is coming in the fall. we had some brands that we developed in-house. on the men's side, we are trying to figure out what the service would look like. right now, we are into data. we have learned a lot. we are excited in the fall to address more customers and be able to outfit the men in the lives of our other customers. emily: what do you think happens to traditional retailers like j.crew who have not whether this well? every day i'm getting e-mails from them, 50% off. hat can't be good.

>> there really is a race to the bottom. we have seen so much innovation about getting things cheaper and faster. but at the end of the day, what matters is, people are not saying let me find the cheapest black dress. that's not the way people shop. trying to figure out how to personalize retail, and help customers find things they love, it is hard to unlock. you see a lot of traditional retailers struggling with the weight of having investment in stores, and trying to marry stores and e-commerce. we have to look at it as how are people interacting today, how do people want to receive things today. we are a lot more flexible, because we don't have a store footprint. emily: who do you think of as your competition? >> when we ask our clients, it is interesting.

clients are switching away from traditional brick and mortar vertical players or department stores, and shifting more towards us. i think some of that certainly has to do with convenience. some of it has to do with the personalization. even shopping online, if you are going through pages and pages of products to find pants that are right for you, being able to have a style and make a selection for you, is a better use of time. we ask our clients where the wallet share is coming from, it is actually more traditional players. i don't know that we necessarily think of the newer version of commerce as being competition. it is more about how do we compete with players that are currently dominating the market for our customers. emily: the stitch fix founder and ceo, thank you for joining e. coming up, food allergies are spiking at alarming rates. e hear from one company with a

possible nutty cure. this is "bloomberg west." ♪

emily: an update from joe biden's so-called cancer moonshot. take a listen. vice president biden: the moonshot is carrying the hopes and dreams of millions of people who want us to succeed and make a difference. not some day, but now. emily: ibm is donating access to its watson supercomputer to help deliver oncology treatment. drugmakers will share research to get new medicines to market faster. greg simon is leading the moonshot task force, that must get underway before the next administration moves into the white house. speaking of research developments, bloomberg is presenting what we are calling focus on pharma. we are going deep on the global

business of pharmaceuticals and biotech, with a range of stories across all of our platforms. today, we are focusing on peanuts, and the alarming rate at which we cpfl energia pickup in recent decades. according to a study from the cdc food allergies among children spikes 50% between 1997 and 2011, costing nearly $25 billion a year. there is no clear answer as to why allergies are on the rise. many are turning to oral immunotherapy, so it remains controversial. a biopharmaceutical company is offering these trials. the ceo joins me in the studio to explain. how does it work? >> it is essentially taking peanut flour and introducing it into patients in small increments over a long period of time, so they build up immunity. emily: you say it works 80% of the time?

>> the phase two trial shows that the patients actually that make it through this therapy and do not have tolerant issues, essentially 100% of the patients become desensitized. emily: why is this not fda pproved? >> it has been used informally in the past, but about five years ago the fda, nih advocacy groups got together and said, we need to do something about making it more formal. emily: what does the fda want you to prove? something about the ratios of the peanut proteins? >> they want us to formally approve in randomized controlled trials, that if you slowly introduce peanut flour to patients over time, they are n fact attested from -- protected from accidental exposure to pants that occur in the environment all the time. emily: your competitor makes a peanut patch. why is this better? >> we believe the approach is better because it works faster,

and we believe the speed is something extraordinarily important to the patient population. we will see at the end of the day if either therapy ultimately results in something that will be a long-term response. emily: there are new studies out that support tackling food allergies early. getting peanuts to your kids, yet parents still don't do it. it can be paralyzing to have conflicting information. what are we really supposed to do? >> it is kind of a seachange in the approach of how children are introduced to things like peanuts. you need to speak with your physician. the physician is the one that is closest to the health of the child. like all the other professionals, they are just beginning to pick up on how to manage this in a way that is different than what has been done in the past. emily: your stock is down 40%. why aren't investors

buying? >> certainly, the global kind of upside down situation we are experiencing now, we are a drug company that has one major drug in development. the industry often waits for very specific milestone events, usually tied to the outcome of clinical trials. we expect our outcome to take lace sometime in 2017. emily: certainly a fascinating approach to a really difficult problem. thank you very much. you can find more of the pharma coverage on the bloomberg on bloomberg.com/pharma. coming up, our cloud computers ready for regulatory change? e ask box ceo aaron levie. you can check us out in the u.s. on sirius xm radio and at bloomberg.com. this is bloomberg. ♪

quite health stories this hour. financial markets continue to bounce back from brexit. -- the ring get climbing. the best performers. 31 major currencies. ranked shares dipped. the u.s. regulators looking into whether conflicts of interest as well as disclosures to investors. a rollttee cleared out

out day before his resignation. and the next president will be shorn in -- sworn in shortly. the 71-year-old former mayor swept to office in promises to ruthlessly fight crime and corruption. bloomberg news, powered by more than 2600 journalists. let's get the latest from the markets. david, that rally, still going strong? david: it is going very strong at the moment. very green across my screens with the exception of the shanghai composite. not a single stop lower on the philippine composite.

similar picture. everything else on the way up. hong kong, hang seng up almost 2%. on the way up. let me talk about these benchmarks. retail sales coming out later on. public picture. a bleak picture. a downgrade from goldman sachs. for 2016, not as much as the 50.5% forecast. continuing that run up. dollar yen, 102 .78. the biggest gain since 1998. sterling, flat after two days of gains to read the forecasters have a lot of work to do.

134 to read the median across 88 the moment. forecastsot of these through. we will see how quickly they do come through. 134 at the moment. emily: this is bloomberg west, i am emily chang. cloud services concurrently shift data across europe without interference. operators may need to follow separate regulations from the eu and u.k. joining us now, the ceo of box, aaron levie. does brexit change anything for you? aaron: we architected our solution, so no matter how much change happens in policy, we can

still help our customers store data in a way that keeps them compliant and safe in whatever regulatory environment they are dealing with. we launched a product called box zones, where you can store data in germany or ireland, and we can support london in the future if we want, but we have already architected the solution to work. that is separate from our philosophical views. emily: what is your philosophical view? aaron: we generally believe the world she got more open and collaborative, fewer walls and more bridges. our rough sentiment is that we were against brexit. but we understand there are lots of reasons why things happened . emily: do you see any changes in crowd data center partnership involving amazon and ibm? aaron: not because of brexit, but this has already been a trend, whether you look at brazil, or tokyo, or canada. all

these places have different privacy laws. if you will be successful in the future, you will have to work in different regions. our job, where our value proposition comes in, we want to make sure it is as simple as possible for the enterprise. if you are ge, in 30 or 40 countries around the world, just because there are different laws around residencies, doesn't mean your people should be slowed down or that they should have a worse expense to get a job done. emily: do you think there will be different guidelines? aaron: there will be. our job is to extract that complexity away from the user. emily: in "usa today" you say that hillary's plan hits on every count. we recently spoke with mark cuban, who said this.

>> i think tech illiteracy at the top for both candidates is a huge problem. we talked about how do you deal with immigration, radical islamic terrorists coming into the country from wherever. there's no way physically you can interview everybody. you will need to use tech. emily: he thinks trump and hillary are tech illiterate? that was over the weekend. aaron: ok. that was before her policy speech. it seemed like he was referring to how you use technology to prevent terrorism, he wasn't talking specifically about patent reform, things like how do you make sure you have better stem education. that is what hillary's initiatives are focused on. how do you have tech initiative policy so you can make sure america stays at the forefront. i don't think it was meant to address the terrorism issue. emily: so what you think a hillary clinton white house would mean for silicon valley? and what would donald trump's

white house mean? aaron: it is too scary to think about a donald trump white house, so let's go with hillary. obama set the country up on really good footing from a digital policy standpoint. if you think about his investments in the u.s. digital service, and thinking through what a lot of these future industries will look like in life sciences and transportation, he has generally been on the side of the more progressive technology policies. there's been examples, whether it is what the nsa does, and encryption policies where the tech industry would disagree, that is to be expected. but he set the country up to be much more digitally oriented than i think the country ever had. what we need to do is we need to continue on that path. we need to continue to invest in many of the underlying programs and initiatives that obama created, but there are also many other things we don't have enough progress on.

ensuring you get a visa if you come out here and got in your masters or phd in science program. the ability to make sure stem education is available around the world, but more in the country. the ability to bring high-speed internet to every classroom in every community in the country. all of those things are the next set of investments we need to make, and the next initiatives we need to make. i'm confident that hillary would be the right person to drive those. i'm very confident that there would be a lot of risk in a trump white house. emily: one of your competitors, dropbox, announced they are cash flow positive. did that light any competitive fire in you? aaron: we have long said we will be cash flow positive by the end of this year. we are still aiming for that. we have been on the path, and i think we are very energized by the competitive dynamic, but we

are running the way we want. emily: a lot of observers are predicting more m&a. aaron: you have a bunch of large technology incumbents, microsoft, apple, ibm, oracle. large companies in the world that have large amounts of cash, and on the start up side, lots of innovation over the past 5-10 years with lots of funding from investors and venture capitalists, so you are seeing a natural thing emerge. great startups and companies that are innovating and being disruptive in their industry, and large incumbents that need to be able to continue to grow. they need to be able to count on new markets.+++

there will be an increase in mergers and acquisitions for the first table future, and in fact, in perpetuity, maybe. as more startups get created, more can be acquired. emily: will box be a target? aaron: i can't say whether we will be a target, but our focus is to create as much value as we can as an independent country -- company. emily: aaron levie, ceo of box. great to have you here on the show. now to a story we are following. shares of care.com soaring in extended trading. google capital made a $46 million investment in the company that provides care services for pets and people. it is one of google's first investments in a company since 2013. one year on, how is windows 10 doing? microsoft says it is running on more than 350 million devices, and 96% of enterprise customers already trying it. they have a goal of one billion users onto windows 10.

the jury is still out on whether they can hit the target. the microsoft ceo is writing his first book. it will cover changes since he took the helm in february 2014, scheduled to be published late next year. coming up, how do you follow up nearly eight years of leading the development of iphones and ipods? we introduce you to the former apple engineers turning cars into self driving cars. and don't forget to tune in this weekend. we will bring you all the best interviews from this week. the "best of bloomberg west" this weekend on bloomberg television. ♪

emily: renewables got a boost on wednesday as the leaders of canada, u.s., and mexico placed to have half of north america's energy through clean sources. justin trudeau: this partnership will see our countries stand side-by-side as we work toward the common goal of a north america that is competitive, encourages clean growth, and protects our shared environment, now and for generations to come. emily: the plan will include nuclear, hydro, battery and carbon captured technology. achieving this would be a big increase in u.s. clean energy production. the three countries called on the g-20 to do more. there is a new player in the world of self driving cars, founded by a team of former apple engineers. they plan to offer text that will retrofit normal cars, turning them into autonomous

vehicles. it will do so by upgrading all the other tech in your car, starting with the rearview camera. it is a nifty gadget that attaches to the license plate and connects via wi-fi, scheduled for release in september. the cofounder and ceo of pearl automotive joins me in the studio. why start with a rearview camera? >> technology takes so long to trickle out, you have to start with technology that came out a long time ago. the first camera came out in production 25 years ago. now we are to the point where we are there are still over 200 million cars in the u.s. that are lacking it. >> the thing i've been wondering since i came a few weeks ago, if you look on amazon right now, you can find cameras five-star reviews, $80, they are not

wireless, but what is your pitch to consumers that they should spend $420 more on your product? >> all of those devices require invasive installation. they require drilling and different wiring on the car. they have old technology and don't provide the level of customer experience you would expect. companies like apple have provided this in things like the ipad and iphone. instead of spending thousands of dollars for a new package, there's something in between. there's a lot of value in this several hundred dollar price point range, where customers can take the technology, play it to the automobile itself and extend the experience. emily: you led the development of 13 ipods and three iphones. you're not really car guys, but a lot of your employees came from apple. why cars? >> one of the things we love being part of the iphone is how quickly we can get the

technology and get it into the hands of the consumer. we see in automotive, it takes a very long time. for many technologies, even something like airbags and seatbelts, it takes 40 years to reach widescale adoption. emily: what do you think about the apple car? they will be your competition. >> if you think about how much elon musk was able to do with 2 billion dollars, and apple has almost 100 times that, it is inspiring to think about what they can do. >> what is the kind of roadmap you are working towards, when the actual fully autonomous vehicle comes off the production line, and there are other cars like that. when you expect to have this product? >> we saw the value of that, and generation after generation of the ipod, culminating in the iphone. we are seeing a step ways approach towards the autonomous

car, and being able to do that over several years. there's still a lot of debate about when it will come out, five years or 15 years. but sometime in that timeframe, we want to be able to fully outfit a car. emily: what is next after a camera? >> there's a lot of things in the car we feel we can improve. we can improve things in the short-term, increasing driver awareness, and road safety. i think anything you would see in terms of driver awareness or a car, that is what we will be paying attention in the near-term. >> for someone out there who has no idea what this might be an never heard of these packages, what individual product might that include? >> technologies like blind spot warnings, collision alert. those are things that can really move the needle on improving the driving experience on a daily basis, the same way that having a rearview camera improves the driving experience daily.

emily: right now, you only plan to sell online. do you plan to do dealerships or go to stores? >> we are direct to the consumer this year, but we are looking to partner anyone who wants to help us achieve our mission, to make the most of every car on the road today. so much of the industry is focused on applying new technology, to the point of sale of the new car. that leaves the vast majority of cars that really aren't getting the attention they deserve. emily: what do you plan to spend the money raised on? >> earlier we were focused on getting the first product launched in september, and raising consumer awareness, and educating people on what is the difference between the $80 product and a $500 product.

especially when you take into account the installation and additional features, and letting people expect more from the futures of their cars. emily: one last question. >> the price point is one issue. do you think your product is worth that much money because of the heritage you have in the company? >> i think the bar we set is very high, and it is what we set not just for ourselves, but for our development and manufacturing companies. we have extended those requirements. in automotive, you have more stringent environmental conditions than for consumer products. we have treated this even to a higher level than the products we had designed and developed in the past. emily: the pearl automation cofounder and ceo, thank you for joining us, and alex from bloomberg news. thank you. the cyberspace director in china, a sign of a shift in power dynamic.

he has been the face of china's efforts to curb public criticism and manage relationships with u.s. internet companies. the agency did not respond to our request for comment. coming up, could the uk's decision to leave the eu make berlin a first stop for companies looking to expand into europe? we hear from a company doing just that. ♪

emily: could berlin be a brexit boom? we caught up with a start up, the mattress maker casper, the u.s. company beginning to expand in europe. casper chose berlin, not london. we caught up with the ceo to find out why. >> i think london traditionally was considered one of the hubs, if not the hub for entering into

europe. but i think what happened last week is adding in another area of fiction to starting your business there. it has become very expensive to do business there. just adding another reason to look elsewhere. berlin is so attractive for many reasons. lower cost to do business, but there are great people here excited to build new things. it's the perfect set for casper and what we have started to build in the u.s. >> what do you have to consider given you are looking to expand in the united kingdom? >> honestly, we did not have the brexit as a big consideration. we are happy we chose berlin, because we think it will be easier to go across borders there. selling physical products, you have to think about localizing manufacturing, and how things go between borders now. >> this is a new and well-designed type of product,

meant to be disrupting the living area. but what about competition? people seem to be reacting to your product, trying to bring out their own proposition. >> absolutely. we are in the early, secular shift, where there's a store in every corner that was engineered to take advantage of the consumers. consumers are waking up to the idea that buying online is a smarter way. we use feedback to design and develop world-class products. that structure, back-and-forth communication, does not exist in our industry or a lot of others. we think it is a different test model, one that has clearer value for us and customers. >> if you had one wish, if you could bend david cameron's ear, or the eu at the moment, and the people who will take over the reins in the u.k., what would it be as an entrepreneur when you see the shambles happening?

>> at this point, i feel like there's so many questions out there. uncertainty is dangerous for investors, dangerous for operators. we want to commit serious capital and resources to building the business we want to build. uncertainty makes that very difficult. we are hoping they don't go down a path, and make a decision that will close doors for us. we will see. but given all the uncertainty, we are still committed to going into new markets and expanding the business globally. we will do that in the u.k., and here in germany, and other markets in the eu. we are excited you do that. it does mean we will keep our eyes open to potential changes that might come in the political landscape. emily: that was the casper ceo speaking to carolyn taught in berlin. this day into history. nine years ago, apple fans were rushing to buy the very first iphone.

the first two phones went to spike lee and whoppi goldberg. the line started four days before the phones went on sale. that is it for this edition of "bloomberg west." have a wonderful weekend. ♪

>> that would create a global energy process producing more oil than libya. investors optimistic that would limit fallout from brexit. the gcc haveom raised $66