>> you're watching "bloomberg west." let's start with a check on your bloomberg first word news. president obama and would-be successor hillary clinton are campaigning in north carolina. president obama: there has never been any man or woman more qualified for this office than hillary clinton! [cheering] president obama: ever! >> likely g.o.p. nominee donald trump is also in north carolina. he is in raleigh today. the f.b.i. recommends no charges be filed against hillary clinton for use of a private e-mail server as secretary of state. f.b.i. director comey said

clinton and her aids were -- and her aides were careless but there was no intentional misconduct. theresa may is in the lead to proceed david cameron. and in south africa, double amputee olympian oscar pistorius may return to prison for murdering his girlfriend three years ago. prosecutors are asking for 15 years. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 21 countries. this is bloomberg. "bloomberg west" is next.

cory: welcome to "bloomberg west." coming up, tesla feeling the heat. new reports of a second car involved in a crash, while using tesla's much-hyped auto pilot. was the technology properly vetted? we'll discuss. plus, blackberry consigns its classic smartphone to the museum. and as the u.k. struggles to make sense of brexit, we'll look at what the vote means. but first, to our lead, the second tesla driver has been injured while using the car's autopilot function. he was on the pennsylvania turnpike, on autopilot, when it crashed on july 1. this comes just days after the u.s. national traffic safety administration opened an investigation into tesla's

autopilot, after a fatal crash in may. it raises questions on whether tesla has done enough testing and whether drivers properly understand its limits. joining me now is auto blogger, ed. let me start with you. this technology seems like it was sort of so cutting edge that there was no way for it to really be reviewed by nhtsa before it hit the streets. >> yeah. i think every regulator around the world is a little bit behind the ball. but i think the bigger issue here is the sort of lack of understanding of just how cutting edge this technology really was, by branding it as autopilot and sort of capturing -- surfing this wave of hype around technology, tesla made it seem like this was real autonomous technology. i think what we're finding out is that drivers believed it was when in fact it was really something quite a bit less than full autonomous driving technology.

cory: are we right to suspect the drivers of just not doing the right thing here? >> i think it's a bit of both. i think as ed says, the branding of the product and the hype around it means that some people will interpret it as offering way more than it really does right now. you know, tesla's own communications can be somewhat confusing. i think it was protocol last -- third quarter call last year that they were talking about cars becoming fully autonomous 15 to 20 years from now, but tesla getting there much quicker. i think there's just a race among these companies to establish leadership and sometimes people can think that that means they're already there. cory: yeah. i wonder, you know, this guy who died in florida, joshua brown, he's not just any old tesla driver. he was well-known in the typically community for pushing the limits of this car. he uploaded several videos on youtube, showing what he can do with the car. and the tesla owners, they said

the autopilot feature would work under certain circumstances. they're watching actual video, shot by joshua brown. he posted this online. in this video, he appears to have been demonstrating how the autopilot feature helped avoid a collision with a truck, a truck that pulled into his lane. this video attracted comments from the other tesla users, both critical and complimentary. they even tweeted out a link to this very video, saying the owner of a video of autopilot to avoid a truck. they went on to shoot at least one more video and post it on youtube. this suggests to me that the relationship between tesla and sort of -- i don't know. at times, they certainly didn't want him to drive dangerously, but this raises the question about what the company's relationship with its users. >> i think the company as a whole has a reputation of

pushing the limits, in every which way. elon talks about building the best manufacturing company in the world. he sets impossible targets. you know, whether they're sales targets or manufacturing targets. i think, you know, in this particular instance, you know, tesla has been very quick to point out that it gives a lot of warnings about the system, when it switches on, that it never tells drivers to simply switch it on and away they go. they don't really have to worry about things. >> right. >> but obviously when you're doing something which is called, you know, public testing of the piece of equipment that can take you into a life-or-death situation -- cory: it's a beta, but it's on the streets. >> right. it's not some app you're testing on a phone. this is people driving around, large pieces of equipment. and the danger is definitely real.

cory: and there's the notion out there that the car gets better and better with software updates, this autopilot functionality. but we just showed sales figure. the company released numbers that missed their own estimates. but they released them on a sunday, three-day weekend, in the middle of the summer. you know, you couldn't find a time to bury them more. nonetheless, stocks selling off and the company kind of lowering its guidance of how many cars they can make. two quarters in a row now with declining sales. i wonder if you think there's any relationship here to the actual delivery of the tesla to the promise of limitless technological advancement. >> i've certainly noticed a shift in the online conversation around tesla, going back nine months or more. and i think what you've seen in the last month or two is that it's really accelerated. i think what's at issue here is

tesla's key asset, which is not really it's technology or really anything else. it's elon musk, specifically, his credibility. i think you have a decade really of promises from musk and tesla, many of which have not been fulfilled. then you have this sort of disconnect between perceptions of what autopilot is capable of and the reality of it. what tesla's commitment to safety is, then the issue with non disclosure agreements. you're seeing a number of issues, this disconnect between tesla's promises and the perception it creates, clashing with reality more and more. what's happening is that the credibility, the faith, this incredible evaluation of this company, the bright future of this company, is starting to unravel. i think that's a really dangerous thing.

i think that tesla's communication strategy, including burying releases at the end of a week, before a long weekend, and various other ways it's communicating things, shows it really doesn't understand that the key issue here is its credibility, both its c.e.o. and as a company. i think it really needs to reexamine its communication strategy as much as anything else to get a handle on this situation before it unwinds further. cory: when you look at this -- i was at a july 4th parade. there were two model x's in the parade. they pulled up, opened the wings, and people literally oohed and ahhed. i was struck by that, knowing that someone had just died in a tesla. the wow factor is still there. i wonder if these kind of events really can change that narrative. >> absolutely. it was very funny. what elon was talking about, the solar city acquisition. he said he got e-mails from two sets of people. product people who effectively totally got what he was doing and finance people who couldn't really understand what he was doing. and i think ed made the best point here, which is tesla's key

-- cory: don't sell yourself short now. >> -- is its credibility, in particular elon's credibility when it comes to raising money, which, you know, tesla periodically has to do in order to deal with these challenges. >> and they raised money before they released the knowledge of this death in florida, even though apparently the investigation had already begun. >> that's right. and also before, they then turned around and said, hey, we might take on solar city and all its debts, with a rationale that a lot of people can't make sense of. even there, there have been noises around, you know, what the hell is going on with this company? cory: the analyst community will like him, as long as he's still raising money. thank you very much. we appreciate your time. coming up, san francisco legislator is proposing a new tax on tech companies to combat

the city's homelessness problem. the question remains, does tech inherently drive housing prices higher? we will discuss. and it's been five years in the making. the juneau spacecraft. we look at the science behind this mission. this is bloomberg. ♪

cory: we're learning more about what went on behind the scenes as linkedin shopped itself around. microsoft is deeper into the negotiating process, possibly driving the prices of the software giant higher. facebook took a look and passed on the acquisition. we are standing by with more. sarah, we started to get these details from the s.e.c. filings that are required these days on such deals. but the names were redacted.

the players here, very interesting. >> party a, b, c and d is how they're known in the filing. but, yes, very interesting that there was so much interest around linkedin and you are right. sales was very much a factor in the rising price of the deal. the deal was for $26 billion. probably about $5 billion of that was added during the negotiation process. linkedin kept going back to microsoft and saying they had this outside interest from another bidder. they wouldn't tell microsoft who it was. but that was enough to convince microsoft to push the price up to the one that eventually won the day. >> it is interesting too that the notion -- sales force, of

course, wouldn't have the cash to do this kind of deal. so we'd imagine the bid would have been probably for stock. maybe they would have had to take on debt to do the deal. so that's sort of part of this. but also, there's a corporate culture thing. it's interesting that linkedin would go with a microsoft culture, which is traditionally a lot more staid than the high-flying software guys across the street from us here, those guys at salesforce. >> well, linkedin's business would integrate well with either. salesforce obviously caters to the customers, sales force, software. this is something that, as you noted, the stock part of the transaction was the reason why linkedin ended up going with microsoft's all-cash deal instead. having the stock component would require more shareholder approvals. it would be more complicated. and ultimately, you know, the big decider here at linkedin is reed hoffman, who is a majority shareholder and has a lot of sway. and so, yes, they decided to go with microsoft, but jeff wiener has said -- he's the c.e.o. of linkedin -- and has it was

very important to them that they remained a separate entity from microsoft, remained in the bay area, kept their company culture and did not have to integrate fully with the team in seattle. >> interesting stuff. sarah from bloomberg news. thank you very much. you can find her story on bloomberg.com. san francisco based tech companies could be facing a new tax. local officials proposing a payroll tax. a solution to the city's homeless problem. this will be a big hit for twitter. here with me, glenn, to talk about what's driving up housing prices. >> don't blame me! cory: so you guys are a really interesting real estate company. i wonder, you've spent a lot of time here. you're in seattle. the effect on technology, on

housing, is interesting, because we've got these pockets of very high-priced housing where technology companies are doing big business. >> yeah. i mean, you asked earlier if technology intrinsically drives up home prices. and the answer is yes. when you create that much wealth among such a concentrated group of employees, you're always going to see home prices increase. of course, we want that. everyone wants high-paying jobs. san francisco just has such an enormous concentration. the challenge here is just creating middle class jobs alongside high-tech, high-paying jobs, because right now the only people who can afford to live in the city are the people working for linkedin or twitter. >> well, middle class jobs and low-income housing. right? that's the other part of this. and mixed use development. something every city needs, whether it's technology or not. >> absolutely. so for a long time, the city just put its head in the hand. -- in the sand. there's so much historic character here. >> not in my backyard. >> not in my backyard. although now there's a movement of yes, in my backyard. if you look at the number of housing starts in san francisco versus seattle versus other markets, san francisco still lags behind almost every other

city. seattle has double the number of starts. double the number of new construction sales. and so the problem is going to get worse here, because even as people pile in, we're seeing fewer and fewer houses being built compared to the rest of the country. >> talk to me about what we're seeing in terms of housing and price elevation. the hottest market in america last year, i think in terms of price increase, has been san francisco. and we've seen that, of course, new york and miami have done really well. what are we seeing right now, the trends of the last month or two? >> well, san francisco's crest, if you were to ask san francisco real estate agents, we see the owner of the property, too aggressive. meanwhile, in weird places like grand rapids, michigan -- cory: that's not a weird place. my dad is from there. actually, lots of weird people, including much of the johnson family. >> i don't think having your dad there exonerates it.

that might be the hallmark of a strange place. what's really strange about it is you don't expect to see double digit price increases. 11% price increases there. and in milwaukee, nashville. many of these folks are coming from seattle and denver and austin and san francisco and l.a., trying to escape higher home prices. and now, that is starting to change. so some of the safe havens where america has always been affordable, are less affordable. if you were to ask agents there, they would tell you it's not just one month or two months. it's a long-term trends of people who are telecommuting. people who are checking in from afar. that means that house prices are going to go up everywhere. >> i mean, rising prices in grand rapids is good for johnson carpets. but you talk about the nerd bird when we were on the radio. those are flights when people are going from one tech hub to another. san francisco to denver, right? san francisco to austin flight. you're seeing people go there

and stay there, those places where housing the cheaper. do you think it's really driven by housing prices? >> absolutely. we have made a business out of catering to people in technology who want to buy a home somewhere else. when you ask an agent in denver or dallas, where do you meet your customers? he'll say at the airport. many work for google or facebook or other companies but just coming to these new markets in the center of the country, because they want to have a yard and be able to go to public schools and have them be good. some of that is just impossible in san francisco unless you're truly a millionaire. >> i've got friends getting married and starting a new family in portland because they just couldn't handle the bay area. it's a common story. >> portland is off the hook! that place is going crazier than every other place we serve.

cory: despite the lack of johnsons. all right. glenn, really good to see you. thank you very much. coming up, it's taken five years and 1.7 billion miles. juno successfully entering jupiter's orbit. why is this coined the hardest thing nasa has ever done? we'll look at that. this is bloomberg. ♪

cory: now to a story we're watching. netflix and comcast have come to a deal, to allow customers in both customers to stream netflix content on comcast x1 platform. netflix hoping it will get 22 million subscriber shares. netflix up 7% in the news, one of the nasdaq's best performers of the day. after a five-year billion-mile journey, juno has entered jupiter's orbit. it is the first solar powered spacecraft to successfully make it to the outer planets in the solar system. we caught up with the company's project manager, kenny, ahead of the spacecraft's successful entry.

>> jupiter is important to science, because it's so massive. and it was one of the first or the first planet that was formed in our solar system. so scientists are very interested in what is in jupiter, what made up jupiter. jupiter is mostly what the rest of the planets and what we are made up of. so this will give a good indication and unravel a lot of the mysteries about where -- how the solar system formed and maybe even where we came from. >> what are the biggest obstacles to making this -- the biggest problems this could face? >> well, other than the sheer distance away, some of the biggest obstacles have to do with massive amounts of radiation that surrounds the planet itself. radiation is very damaging to electronics as well as people for that matter. but it's so much higher intensity at jupiter. our mission, our spacecraft, will be going in and out of

these radiation betle at different -- belts at different levels and which will be absorbing this radiation, which will eventually be its demise once the mission is over. cory: remind me when this spacecraft took off. >> we launched it in august 2011. cory: are there technological advances that have ensued in five years that you wish you could have taken advantage of? >> well, we haven't run across any of those things yet. there are certainly, every time we make a new build for a spacecraft, there's new technology and better ways of doing things. low-power electronics is key. one of the key things for jupiter is to be able to run on a very small amount of power. the solar rays, although they're massive, only generate about 500 watts on average in jupiter. >> you talk about radiation jupiter. the magnetic fields on jupiter are particularly unusual. >> yes. it is the largest magnetic field of any of the planets in the solar system, which is the

subject of the interest of some of the science going on, while we are there. we'll be studying the magnetic fields and its origin, how it gets there. it also is a place for high energetic particles like electrons and pro tons, running at speeds much higher than what they normally do or closer to the speed of light. >> what new questions do you think we'll be prepared to start looking at, after we get some of the answers to the science that this is expected to give us? >> of course we're going to have to get the data first, before we see what the next questions are going to be. but certainly, after we understand more about the formation of jupiter, we'll start thinking more about, what does that mean for some of the other planets? what does that mean maybe for exo planets in solar systems beyond our own star? cory: well, lockheed martin's juno project manager. coming up, we'll hear from one of the u.k.'s biggest venture firms on venture vesting in a post-brexit world.

check us out on the radio, in boston, new york, washington, d.c. and san francisco. and anywhere! the bloomberg radio app, bloomberg.com. this is bloomberg. ♪

>> top stories this hour. -- bank of england warning shares are below 3% and gold climbed to a two-year high. the pound bunched beneath a dollar 29, extending 31-year lows after mark carney said briggs it risks are crystallizing. the government bond yields dropped to zero for the first time as record low returns failed to deter investors. benchmark 10-year japanese and

australian yields also felt to unprecedented levels. the yen is heading for the longest run of decline since february as lenders a week in their forecast, citing additional pressure from briggs it -- brexit. bank -- theral central bank said wednesday as its weakest since 2010. global news 24 hours a day from our more than 2400 journalists in more than 150 news bureaus around the world. 100 20 countries. this is bloomberg. thed is here to assess damage so far. dave? david: let me start with breaking news. the 20-year in japan following below zero for the first time on record. that leaves the 30-year and the 40-year, the only maturities that are yielding a little bit of something, and i do have to

say a little bit of something. .0fact, the 30-year was that 16%, barely nothing. academic, to be honest. higher than the 10-year is. at some point it is going to be negative. record lows, everything from the 2, 5, 10, 15, 30, 40-year. yields also at a low and australia. it will be interesting to see when london and europe does open up, whether we see this filter through into the markets there where you have bonds it may have ilt at -77. sterling, at one point this morning it fell below 128. if you think this is bad, have a look at what the pound has done against the japanese yen. dropthe brexit vote, 18%

on this exchange. i will leave you to look at this chart. have a look. is theory short, that vote of confidence. ♪ all right, this is bloomberg west. i'm cory johnson. global markets try to recover from the shock of brexit just wanting to get back to business as usual. silicon valley giants like facebook, dropbox, have headquarters in london. those works throughout the eu with a san francisco outpost just a few blocks from here. our correspondent set down in our london headquarters to talk brexit. >> there's no sugar coating. it has been a big shock to everybody. it has created a lot of conversation on a daily basis. everybody talks about brexit, and this no denying there will

be some impact, and i guess the greatest is uncertainty. >> how is it changing your behavior? are you changing how you think about companies you invest in? >> the advice we are giving our entrepreneurs is stay calm. continue building businesses, continue building products. our business venture is a long-term play, and certainly, these greg's discussions will take at least two years of negotiation -- these brexit discussions. we do not know what the impact will be other than a lot of uncertainty. the best thing we can do is carry on and business as usual. >> does it make you think about a company based in berlin for another region more favorably? does it give you pause about investing in the u.k.? >> as investors in startups, we had to be optimistic and we support entrepreneurs who by definition are optimistic and

thrive on change. if anything, we would probably think that, certainly with the decline of the currency, britain has become a lower cost base. it might actually be advantageous for entrepreneurs to set up here. more generally, we invest wherever entrepreneurs start their companies. i think everybody will continue investing, if it's in the u.k. or in mainland europe. >> if i'm coming to you for advice asking to set up an outpost in europe. my company is growing. i had been thinking about london, but now what should i do? should i think about going somewhere else?

>> the key decision criteria for foreign corporations or startups is availability of capital and availability of talent. certainly on the capital side, no change so far. it would be a very strange thing that the government would put up obstacles preventing investment. as far as pools of labor, so far, nothing has changed. we will be watching carefully for new restrictions on movement of labor, but the factors that would lead to a decision between london or any other european hub are the same so far. >> are you worried about recession and the effect it could have in europe and elsewhere around the world? >> we are worried about recession. certainly, the unknown gives cause to consumer behavior as well as company behavior to postpone decisions, to maybe not make that incremental investment

or purchase. it is probably realistic to expect that there will be an unexpected negative shock. having said that, startups are not driven by the same factors as multibillion-dollar multinationals. the growth rate is not necessarily affected by plus or -1% change in growth. >> do you think companies will be going out of business as a result? >> we do not know. the entrepreneurs we back our nimble and adapt their businesses and business models. >> should european startups be thinking more about m&a activities as a result? >> i think that is a realistic scenario, especially with the currency decline. any input cost you have denominated in british pounds has become cheaper for you, so britain as a production base has become more attractive, so for european companies to acquire u.k. targets, it has become

overnight cheaper. >> where did things go from here? what are some things you keep -- what are some things u.k. policymakers could put in place to keep things growing? >> there's a lot of influence and a lot of force being gathered by venture capitalists, tech startups, and the broader tech community to protect the current framework and environment. two key tenets are free movement of goods and free movement of labor. they will clearly be subjects of the article 15 negotiations, which will take long years to

play out. we do not know how that will plan out, but it is fair to assume that it is some sort of version of eea type membership. in the long-term, behind -- beyond this economic gdp impact, the rules of the game are not going to change dramatically. >> do you think we can get back to a point soon where it is somewhat business as usual, where some sort of normalcy will set in? >> i hope so. every business meeting -- i hope that every business meeting we take does not begin with, "what do you think about brexit?" there is a lot of unproductive time being spent in the economy right now, so i would encourage everyone to go back to what they do. cory: facebook's former chief technology officer has joined the board of twitter. in a statement, he says, "i hope

to bring my knowledge and experiences to help jack and the board push services forward." twitter stock lost about a quarter of its value so far this year. coming up, it's like the end of an era. blackberry dropping its classic model as the company transitions. ♪

cory: the latest in yahoo!'s search for a buyer, the deadline for the third round of bids is tomorrow. leading bidders include verizon and a group led by the founder of quicken loans, dan gilbert. it is the end of an era for

blackberry, which will no longer make its classic model, a winner for the company until apple introduced its iphone. this is another step toward eliminating its operating system and a pivot toward newer phones running on android. when it comes to this slow pivot, i am constantly amazed. results of sales are down and down and down. >> the problem is -- look, we have a smart phone market -- smartphone market that is already mature. we have a company that has lost its direction in terms of the hardware business and just needs to let go. it is interesting philosophically, the letting go of the classic, which was the

ultimate blackberry for those who loved blackberrys, but ultimately, what they have is security software. otherwise, they risked becoming another android smartphone player. cory: what do they have if they get rid of the keyboard? >> exactly. the key is going to be figuring out a way to license their security capabilities to other people, maybe give much-needed security strengthening to the platform. that will be interesting. we will see if they do it, but clearly, that will be a way forward for them. cory: the turnaround is so slow at lack very our last interview with john chen is still relevant. >> we are really designing

hardware. we do not make them anymore. that's a very crude way of saying it. then we take the software component in those phones and license it. gradually, we are really more into the ip business than into just making a device. cory: as we hear that notion of being an ip company, is there -- is their security software that good? >> i think it is quite good. there's a reason all these government services held on and continued to use blackberry phones this long. that's a sign that it is important and valuable to a certain group of people and potentially even more if they can figure out a way to license it. cory: after blackberry was king, apple was king.

a citibank analyst suggesting brexit concerns are serious enough that it will cause a pause in the market, notable enough to lower numbers. we saw that play through to apple suppliers as well, so it seems investors are taken this note seriously. >> the pound is down about 20% from this time a year ago, but we have also seen analysis coming out of the supply chain suggesting they are trying to push prices down for what they are paying suppliers. clearly, that is affecting suppliers, but it is also a sense that volume is not so great, either. apple is feeling the heat. if apple is trying to squeeze into that space, it has to reduce costs for the consumer.

cory: apple garners so much of the industry that anyone else who wants to take phones, profits do not go to the makers of the handsets. >> absolutely. that is a conundrum everyone is trying to tackle at the moment. a couple of players are coming out of china, and they say they want to take some of the market share apple has right now. chinese regulators are pushing back against apple a little bit. some international property debates in china. one wonders what sort of role they are playing in helping some of their homegrown companies push back. that might seem to be the most likely source of competition. cory: it does seem like apple is putting in a trough of sales and sales growth, from which it may very well him urge. >> the challenge you has is the smart phone market in general is slowing down, and that is impacting everybody -- the challenge you have is the

smartphone market is slowing down. everyone is holding onto their phones longer. this is exactly what we saw in the pc market. the growth is stopping. the bottom line is when you extend the life cycle on a device that people have been churning on a two-year basis, that changes the dynamics of everything, and the other act of the matter is there is nothing that compelling anymore. i want a foldable screen. i want something radically new before you will get me to change over. that is something all these guys face. >> there was some analysis coming out that the iphone sc

has been cannibalizing sales of the higher price iphones. a lot of people are expecting an apple watch with direct cellular conductivity, and that could force some parts of the market if you have the money, be a differentiator. >> i'm not really convinced on that front. the watch has been out there long enough and cellular or not, it is just not as compelling a device as people tried to make it out initially. you see more and more people who had them for a long time abandoning them. cory: they sold more watches in the first 6, 9 months than they did in the first two years of the iphone. >> that's fair, but there are other signs to me that indicate that there are still challenges. you did not see them lower the price of the iphone in the first two years. my guess is the people who buy that are the ones who already

have an apple watch. i do not see convincing new people, and that is the challenge. cory: thanks a lot. coming up, u.s. ipo's may be all dried up, but the asian ipo's are happening. we will explore the hot asian market. ♪

cory: the pentagon is going all in on cleantech. the u.s. department is the second-largest buyer of green electricity, beating only google. renewable power has become cheap enough to compete in many places in the u.s. the air force and navy lead the armed services and commissioning clean energy projects.

while the u.s. ipo market cooled, asia is heating up. two major asian companies are making big ipo moves. foxconn, maker of iphones, has filed to go public, and the maker of japan's most popular instant messaging service has increased its ipo price. talk about what is happening in terms of demand for shares when we do not really see that happening in the u.s. >> the story here is that there are ipo's happening, and it's against a backdrop, as you mentioned, a drought of sorts, the volume of global ipo's plunged 52% by the middle of this year, so it only takes a couple of even minor sized asian ipo's to make that needle looked like it is moving. we have foxconn and line coming, and it's grabbing a lot of headlines.

one other factor to consider is brexit. there was a rush of ipo's in europe, and now investors are trying to find some semblance of stability somewhere else in the world, and it just so happens you have a couple of good, compelling stories and ipo's coming online. cory: what is it about these deals -- our companies -- is it that companies are desperate enough to get out or companies are so desperate for yield that they are willing to out raid each other to get these shares? >> you also have to remember there is not, like, a fitting frenzy going on -- a bidding frenzy. we are talking about going from $1 billion to $1.1 billion, so

again, it is indicative of demand. i just do not think it is wild demand. as you mentioned, it is investors i think just hunting and pecking or some sort of decent return -- for some sort of decent return back to buy probably what they consider a decent corporate story. in the case of foxconn, it is probably linked to demand in the cloud sector. for a line, there is a different dynamic going on. it is one of the few messaging platforms that has proven it knows how to make money, and a think investors are also finding

a lot of appeal in something like that -- i think investors are finding a lot of appeal in something like that. cory: are investors seeing the appeal in that? >> one indication seems to me there's a lot of retail investment interest in these ipo's, and that is probably what is supporting the floor in terms of pricing. line, for example, will price on july 4, and that's when we will get a sense of what kind of investors -- to what extent we are seeing institutional versus retail demand. cory: all these unicorn companies not going public. we will call it warm from japan. that does it for this edition of "bloomberg west." be sure to tune in tomorrow when we talk about investing in china. that is all from san francisco. this is bloomberg.

♪

>> sterling is below one dollar 30 and japan's yields go negative. >> the bank of england found a new warning. the effects of the default are being felt in the u.k. economy. >> australia is closer to a result. it could hit a aaa rating. >> the fbi rules out e-mail charges against hillary clinton. obama hits