republican party's nomination for. . he will attempt to make the case that the country and skeptical members of his party should fall in line, and why he should be the next commander in chief. tonight's theme is make america one again. mr. trump and hillary clinton are tied in ohio. according to a new university poll, colin and trump are both at 44%. ms. clinton poll, elites. stein is at 1%. the paris terror prosecutor says the man behind the wheel of the truck that killed 84 people in nice had accomplices. he said he had been planning his attack for months. five suspects are facing preliminary terrorism charges. belgium celebrating a holiday under tighter security. police snipers were posted in various locations.

police in brazil arrested 12 team po allegedly plotting a terror attack at next month's summer games in rio. authorities say the group may be linked to an islamic state cell. local news 24 hours a day powered by 2,600 journal itses and analyst around the world. "bloomberg west" is next. [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org emily: i am emily chang, and this is "bloomberg west." coming up, the roger ales era officially ends at fox news. we will break down the story behind this extraordinary exit. plus, the tech earnings parade continues. e have reports from paypal and pandora. donald trump takes the stage tonight at the republican national convention. we will preview his speech and

analyze the thinking behind the endorsement. first, for our lead. roger ales is officially out. he has resigned after sexual harassment allegations by a former anchor. rupert murdock will take over the network for now. the company confirmed the extraordinary changes in an e-mail tade. shared my vision of a great and independent television organization and executed it brilliantly over 20 great years. ailes will become an advisor to murdock. joining us is lucas shaw from our l.a. bureau. this happening right on the last day of the republican national convention, the day the nominee is scheduled to speak. fox news, a ratings juggernaut now. how big a problem will this be

for the network itself? >> well, it will be the biggest challenge probably for murdock's sons since they took over the company last year. rupert very involved. a statement from him tonight, and he will now be running fox news in some capacity for the foreseeable future. they have to decide what they want to do with that channel. it is the most profitable network they have, one of the most watched tv networks in the country. it has spent the past 20 years leaning on an increasingly old audience. how much do they want to bring it into this era of social and internet without alienating that core viewership that shows up every night. >> he has had a remarkable career. he was a consult and for ronald reagan, work with george bush

and teamed up with murdock to start fox. yet one source told me that women have been complaining privately about ailes for years. can he rebuild his reputation? can he rebuild his legacy? >> it sounds like it is going to be kind of a slow and quiet exit for him. he has a non-compete clause. he can't go and start a new organization if he wanted to burnish his legacy that way. i think long-term his legacy is going to be he was one of the most influential and important executives in the industry. but as we have seen with a lot of major figures over the past few years, it will be tarnished by the harassment aggregations. it was never against fox. it was always specific to roger ailes. unless he can come up with a bunch of evidence that these allegations are false, this is going to stain and tarnish a part of his legacy forever.

emily: on that note what happens with the case? etchen carlson filed the suit. since then, other women have come forward saying they were sexually harassed as well. what is the next step? >> ailes tried to get the case moved and have it in arbitration so it was private. i don't believe the court has made a ruling on that yet. it remains to be seen whether this is going to be a public trial. if you see it that way, all the reporters who are taking dupre on his dismissal would continue to report on case. or it could become a private matter or they would settle. geren esh carlson has gotten one victory in that he is no longer running the company. emily: could others sue?

meghan kelly, the star of fox news, said some of these things always happened to her. >> i would be surprised if kelly joined the suit. there are a half dozen who have spoken out, some with their names, some anonymously. some of them have been deposed. i wouldn't be surprised to see some of them join the suit in some capacity since it is gaining steam and ailes is stepping down. it depends on hawpe of their private lives they want to make public. emily: lucas shaw, thanks so much. another revolving door. another chief compliance officers. a new quality zahra, who has moved over from th thermo fisher scientific. they are trying to reform after the lab certificate was revoked

and barred elizabeth holmes from operating labs two years. still ahead, we will get you caught up with the tech earnings out the door. paypal announce ago truce with a major payment player. and a stock we are watching. ebay jumping the most in nine months after raising revenue and profit forests and beating forecasts in earnings. this is bloomberg.

emily: let's get you caught up on the earnings front. pandora posting second quarter revenue that missed estimates. shares plunging as much as 6% in extending trading.

pandora ea rebuff an inform altake over offer from liberty media. here is corey johnson. first of all, listeners are down, but listener hours are up. what do we make of that? >> that means their offering is right. the number of listeners down is a problem here. we have seen from companies like netflicks and stuff. that has witness the question with pandora, how big can this business be? how big can netflicks and sirius-xm be? what does it mean when you have competing products out there all demanding dollars and time. it is a disconcerting things to see the listener numbers down. >> spotify is planning to go public in the second half of next year. apple is revamping their music service. obviously pandora is different but in some ways the same. how does it stay ahead of the

competition. >> competition is definitely a factor. what you are seeing with the numbers tonight is the fact their user base is moving to on-demand platforms. spotify is losing users to apple. they are trying to address that. the stats they have given in the past is 35% of the users return move over to on-demand platforms. they are in the process of launching an on-demand platform in the fourth quarter to get services from apple and spotify as well. they are addressing that issue right now, which is another reason i am still positive on the stock in spite of the miss today. emily: i am going to be speaking to the pandora c.e.o. tomorrow. did we learn anything more about when their on-demand product is coming up of out? >> they are being conservative about it. i think it was interesting to hear that wolverine the things that hit the stock was the guidance today. the numbers for the quarter weren't that bad, but the guidance is below what the three was. with tim back at the helm,

knowing how to game the system, is maybe lowering expectations here and being careful. who knows. maybe the sbiss worse than the analysts expected, except for victor, who is awesome. but the analysts tend to get them wrong. i think the company is wise. emily: they have put out a multi-year plan to quadruple sales by 2020. we have heard reports of a take-over offer from sirius-xm, which is controlled by liberty. what is happening? is the company for sale? >> i think it is. it is a credible offer. the c.e.o. of liberty has stated he has interesting in combining the two platforms. i think pandora is an active for sale company. company that could be interested. google, they are having some sort of difficulty getting tracks with their product. hey could be a logical

inquirer as about well. amazon could maybe jump in as well and make an offer for pandora. do think the company is for sale. >> i could use some pandora tunes on my amazon echo. could you? >> you have amazon, and access to spotify through echo. it already there. >> i like leaning back, but that is just me. pandora has been trying to increase ad prices to improve targeting, to take vare from broadcast radio. how is that stuff working out? >> the radio acquisition is important here. they were circling the wagons here. they were buying competitors out to make competitors go away. they can recognize they can actually make the competition away and make the user -- what is the audio equivalent of

an eyeball? an ear ball? they want more listeners. emily: corey johnson, and victor anthony, thank you. we are going to be speaking with tim tomorrow, c.e.o. and founder of pandora by exclusive interview. we will be asking him all of these questions. now on to paypal. the payments coming reporting revenue of $2.6 billion, up 15% and a profit increase of 5% from the same quarter last year. it's new pact with visa is taking the headlines. paypal will stop discouraging customers from leaking counts to visa cards. first of all, what is your reaction to this partnership between visa and paypal? >> thanks, yes, ma'am -- thanks, emily. the quarter was great. they are certainly executing

against that mission. like you said, the visa partnership is the big deal. the initial gut reaction is being that visa did exercise some leverage over paypal. but in listening in to the paypal call, you could argue maybe it was a little bit more balanced of a partnership. but at the end of the day, what you have to think about is what are the flows going to be, the new flows of dollars? how much is going to be steered toward visa, and what are the cost implications of that? ecause of the fact that paypal preferred a. c. h. transactions, which are extremely high margin rate, if you do see a large chunk of dollars start to move towards visa because of this new agreement, it could be in a position where the cost associated with that off sets a lot of the gains can't and you don't see that kind of earnings up side that the initial headline could potentially suggest.

emily: corey, we are more than a year now post. ibeh had a strong quarter. how is paypal overall looking a year later? >> the numbers are looking really solid here. but to james' point, there is a concern about the expenses going forward. if this visa thing is a big deal, it is a bad thing for paypal. but the guidance suggests otherwise. it suggests they think this is going to be the case. one interesting number, how many transactions a paypal user does a year. they went from 28 to 29 transactions a year. that shows that paypal in the face of new competition from apple pay, in face of other kind of competition out there, visa active online and trying to capture payment, paypal is getting users to use paypal more and more. that is a positive sign with the service. it shows they are having success with the consumers, and

that will have an affect. users who are used to using paypal will use paypal a lot. emily: there are a lead-off start ups going after the payments mark, but apple, visa and samsung want in market. how situated is paypal in that market? >> very well. the numbers reflect a very successful bills. for whatever reason, that is working on the front end, and people starting to recognize pay pass as a brand and a way to pay people. emily: thanks so much. james also joining us there on the phone. on earnings, at&t second quarter earnings report is in. revenues fall short due to subscriber losses in pay tv. they missed analysts expectations, bolstered by better than expected phone sales. at&t shares fell as much as

1.8% in late trading after the earnings report. coming up, we continue our week-long focus on food tech. we will hear from a c.e.o. that is out to prove that meat doesn't have to come from an animal next. this is bloomberg.

emily: we are continuing our week-long series now on the multi-billion dollar food tech industry. they are aiming to disrupt the global meat industry. the 7-year-old company has caught the attention of bill gates, and stone with its plant based burgers on chicken. joining me now, ethan brown. i got my first taste of a beyond meat burger today. >> how did you like it? emily: i liked it. i actually thought it was really good, and i love meat. i might choose it at a barbecue if it was on offer. >> and you are the consumer we

were looking for. emily: what is in it? >> this is made predominantly om pea protein from yellow peas. the key to this is to think about meat not in terms of its in, but in terms of what its composition is. is basically amino acids, lipids, protein and water. we have taken those items from non-animal sources and combined them to provide meet from plant. emily: where does the flavor come from? >> the flavors you find in meat are really the reaction of about 600 different molecules. we have studied them and tried to find similar molecules in the plant kingdom to give a similar aroma and taste. emily: what is your mission? >> i think it is around

building a more sustainable piece of haiti. what you think of in terms of efficiency, any operations class worth its salt is going to talk about eliminating the bottle neck in production. but for about 200,000 years in terms of human behavior, we have been consuming meat that has to come through an animal. let simply build meat directly from plants. by doing so you can provide something healthier and more sustainable. emily: i will be perfectly honest. there was a bit of an after taste. i don't know if i was sitting there thinking about it. is this the way the product is going to be, or does is stay the same? >> the ethos of the company is one of constant improvement. we have a focus on 80/20, which is the burger we are seeking to

replicate. so every year we are making it better and better, and we release new versions of it. emily: is that something you have heard before? >> the after taste? no. emily: maybe it is just me. you have a chicken product, a plant-based protein. tell me about that? >> we launched the company in 2009, and it is a part of the effort to create products that consumers are going to associate more and more with the center of the plate and what they would be having with an animal based protein. what are some of the products that people love to eat and know they should eat less of. they love burgers. plan-based o create meat. >> the chinese government has outlined a plan to cut meat consumption by 50%. are you going to capitalize on that? horizon. our eyes on

we launched our product at whole foods. it is a great place. the response has been overwhelming. we sold out in an hour what we expected to sell for a couple of weeks. it has been really interesting to see how the consumer reacts to hoffman this choice. >> what about other countries? >> we are looking at china. it will be a while though. we have our hand full here. emily: what is the technology here? there is a big controversial what, is food tech? is it on-demand delivery or the composition of the food itself? >> i am fortunate to have don thompson on my board. a couple of years ago i was talking about him and his wife about the tremendous innovation. and really almost bragging about it. liz, his wife stopped me and said innovation is good for my i phone, not necessarily good

for my mouth. they want to eat foods they are familiar with and not necessarily something that is considered high tech. so we have to balance that. we have to bring a science and a culinary perspective to it. this is what we have done. we are applying heating, cooling and pressure to realign the proteins. if you are willing to have pasta, you should be willing to have our product. emily: when you look at the future, what is the long-term goal? >> it is to offer people a series of proteins, whether in the form of beef, bacon, et cetera, that are all made directly from plants. we firmly believe you don't need the animal to create meat for the center of the plate. you will see protein versus meet and meet alternatives. whole foods will basically create a protein section so that plant meat and animal

matzek can be sold side by side. >> how is bill gates? >> he is great. i have a tremendous board. very blessed to have them. emily: thank you guys for giving my son's tv show first try. ethan brown, thanks for stopping by. coming up, elon musk reveals his master plan. investors not impressed. if you look bloomberg news, check us out on the roofment you can listen. this is bloomberg. ?c+sv

>> i am mark crumpton. you of watching "bloomberg west." let's begin with a check of your news. under the theme of make america one again, donald trump is hours away from accepting the weapon party's nomination for

president. his speech tonight comes against the back drop of a fractured party whose establishment members remain skeptical of mr. trump, while his others praise his in your face style possession. the vote for jeff banister -- for moon moon is under way. antonia gutierrez was followed y slovenia's former president. iran's official news agency reports the tunnel was intended to be used to carry out attacks. the nba is moving next year's all-star game from charlotte, north carolina over the state us so-called bathroom law. the law requires transgendered people to use bathrooms that

correspond to the sex of their birth certificate. pyongyang radio broadcast a series of seemingly random numbers. demobals news 24 hours a day. powered by more than 2,600 journalists and analysts in more than 126 countries. paul allen standing by with a look at the market. good morning, paul. paul: , gyorko, mark. trading has been under way in new zealand for about 30 minutes. e index off a fifth of one percent. keep an eye on santos shares. the producer is out with fourth quarter numbers. nick futures showing strength -- nikkei futures.

chinese key safety systems is said to be bidding for them. 15 deaths have been released to takata. r bags made by take a look at the yen as well. the yen gained a lot of strength this morning when comments from the bank of japan governor kuroda were published, saying he didn't support of the idea of helicopter hone. those comments were recorded on june 17th, but broadcast on july 21st. the yen giving up some of the gains but not all. i am paul allen for bloomberg tv in sydney, australia. emily: this is "bloomberg west." i am emily chang.

shares slumping thursday after release of a bold master plan from the company's c.e.o., elan musk. it is part two following a blog post in 2006 in which he laid out a daring plan to put tesla in the vanguard of an electric vehicle revolution. now a decade later, some investors are weary of his big ideas, which includes merging with similar city, expanding product to include buses and trucking, and a fully auto mullens car care service. we are joined by columnists. so he is planning a semi-truck, a pickup truck, a small s.u.v., a small mini bus? >> yes. emily: how realistic is all of this? >> i don't think realistic really plays into this plan. emily: but is this going to happen? are these vehicles going to get made? >> they may get made at some

point by someone. whether tesla is the company that does them, i have no idea at this point. it doesn't really seem to be actually kind of the point of this plan. if you contrast it with the plan released 10 years ago, that one was a fairly standard plan. you build an expensive gadget, get people to buy it, and then you use the money to make a cheaper one that more people buy. this one is extremely wide-ranging. it is almost lined dark like k-9 of virne mentalist escapism. emily: not only that, but he details his reason, his vision for why tesla should buy similar city. tesla becoming a one-stop shot where you can buy your roof panels, batteries and tesla. it is exciting and audacious, but there are no details on how

he would actually fund this or how he would actually do this. what is your take? >> well, sure. thanks for having me. first off i would say we didn't expect necessarily to have details. much like in 2006 he outlined a very broad vision. he has done it again for really the next 10 years. much like we do when we think about what the auto industry could look like in 2025, it is a bit after thought-provoking exercise. for us the biggest question ark is the 2016 plan is -- the 2006 plan is still incomplete. priced moderately market sprant hand even broken ground. there are obstacles to overcome before we can start talking about disrupting and dislodging a variety of other industries. emily: there is no reference to the investigation into the auto

pretty crashes where someone has died. does say that at some point tesla autopilot will be 10 times safer than the average u.s. car. how big an issue is this? >> i think it could be a problem. the fact that he talked about it a lot kind of obliquely in the plan speaks to that. also up front he was talking very much about justifying the integration of the solar panels business with the car business. that was also featured heavily. in some ways, i think the release of this plan now is meant to head off a quite a bit of the criticism of the company laid out over the past month or so. emily: shares have dropped. do you think investors are tired? >> i really don't. number one from the autopilot perspective there, is still the question of perspective as to

whether or not the technology was misused. number two, we have had the privilege of riding along and other competitor autopilots and similarly powered vehicles. i think the technology is here to stay. when you look at the way the stock reacted, it was minimal. the bigger reaction has been the solar city announcement. investors are looking for a little bit more hand-holding, trying to truly understand the synergies here. most importantly, we are talking about an auto business that needs quite a bit of cash already with significant hurdles looming. how much cash are they going to devote to the solar city franchise in the tesla system? those are bigger questions left unanswer. emily: you do have a consumer base here that loves their teslas. customers are obsessed with

their cars. i wonder, would tesla be better off as a private company? >> as a private company? emily: like uber. >> i think maybe they wish they could do that. certainly you can raise a lot of money outside of the public eye now. i would point out the stock price is still higher than it announced the sthror city deal. there is still clearly a strong fan base. you would have to see something go really wrong with one of the products for that to come to question. emily: james, would you agree? fans of tesla and musk despite what some -- some said it was ridiculous to even propose that tesla merge with solar city. > i tollly agree the stock has recovered since its original

announcement. i don't think that means investors have given elan a pass. we are in the midst of a binary outcomposition. they are either going to hit a very aggressive, and albeit very impressive if they get there, target for the model 3, or they are going to fall short. that is where you have to be focused right now. if they hit their targets on the model 3, the solar city transaction is irrelevant. there is quite a bit more baked into the auto side of the business and that is one of the reasons the stock has held up. >> all right. senior analyst, and liam, thank you both. facebook is taking to the skies. the social network has announced the first successful test flight of its high altitude solar powered drone. has the wing span of an

airliner but weighs less than a car. the drone is designed to fly for up to three months. it will provide interneat to four billion people around the world. as silicon valley rallies against thrump trump, peter has been one of his biggest endorsers. we will explain the thinking next. this is bloomberg.

emily: after announcing a record drop in tv subscribers in the second quarter. price hawkeyes have driven customers. the stock is down more than 7% this year.

. it is silicon valley that largely stands against donald trump. he is one of very few major players to have come out for the republican presidential nominee. if you look at his past, this endorsement may not be such a surprise. let's begin with his childhood. he grew up an evangelical christian and still corvos himself one. i sat down with thiel. he told me about growing up as an outser. >> i went to seven different elementary schools as a kid. i always thought of myself as a bit of an outsider and insider. it is that combination that i think shaped things a lot. emily: thiel's political views have long diverged from the silicon valley norm. he has donated to the presidential campaigns of ron paul, mccain and ted cruze.

i spoke to thiel and asked if he was involved in this election, who he would be voting for. take a listen to his response. >> the political philosophies are interesting. the questions are interesting and important. if i was involved in it, i think i would just below my brains out or something. you would just go crazy after a while. emily: the crowd record when he said that, yet a month after the interview, he announced his support for donald trump. he still hasn't given him a penny. in thiel's speech, we are expecting a historical moment for the party. he is expected to be the first person to acknowledge being gay at a republican convention. it will be a moment for silicon valley. after avoiding politics, tech companies have suddenly taken a big interest in this election.

oining mere -- me is another one. more than 100 tech leaders signed a leader calling trump a disaster for innovation. what do we know about what he is going to be saying tonight? >> well, we have gotten a few hints here and there from sources that are familiar with it, and we know that he is going to come out and talk about his homosexuality for the first time. hat was a trigger that started a decade long war against gawker. he is expected to stand with trump on economic policies and also with trump as well against war. emily: so on foreign policy and economic policy. will he say the words, vote for donald trump? >> that is the big question, and we have to wait and see. emily: he hasn't given him money. he is a delegate and speaking.

>> some people close to him have said that he is using this as a hedge of sorts. one person even said he is using him as a canvass on which he can paint his own lillibridge teern ideals did not libertarian -- his own libertarian ideals. the fact that higher education is a bubble like the thiel fellowship program where he gives $100,000 to people who drop out of college. will he endorse him? that is the question. and will he give him money? that is the second money. with $3 billion in his pocket, he can afford to throw off some cash. neil: you have interviewed people who called him diabolical, thinking about moving forward. and is from a friend co-founder. evans it said every time i

-- it is the sheer contraryness of what he is doing. >> that is what we heard from people off the record. the way it was explained to me was along these lines. he's got nothing to lose. thiel has struck a path for himself as a contrarian, an out there thinker, social critic, a billionaire. if trump loses, there is no credibility lost for thiel, some sources say. and then if he wins, he has got the ear of the next president of the united states. emily: so many things about him seem at odds with the republican party. not only is he gay. he is for marijuana. trump said those things are what is wrong with new york

city. >> hopefully he gives us more answers when he speaks tonight. emily: lastly, there have been some conspiracy theories that what he has to say may be more surprising than what we think. mark tweeted, a tech executive, tweeted there is no chance thiel goes rogue tonight. could he surprise you us? >> i think that is definitely in his tool box. emily: it's a possibility. i will be watching. lizzette out with a big piece on peter thiel in business week. thanks for joining us. coming up, they take on the student lone industry. how one start up is raising funds in this environment. do not miss our interview with the pandora c.e.o. and founder. talking about losing listeners but increasing listeners hours. this is bloomberg.

chris mortensen venture funding for start upts this year amid signs of slowing growth. challenges escalated in may after industry pioneer lending clubs said it discovered problems with internal controls, prompting the founder to step down as c.e.o. commonbonner just announced over $300 million in funding, and it's c.e.o. now joins us. david klein, welcome to the program. there is a lot of skepticism out there. the lending club scandal. what sets you guys apart from the chaos. >> there has been a lot of noise in online lending this year so far. i think what is important to understand is that not all marketplace lenders are created equal. we are all different across a couple of dimensions that matter. one is asset class. we focus on student debt. we also focus on a different

part of the credit sector. we focus on ultra credit worthy borrowers. we focus on borrowers that pay back. in loans funded, we have yet to have a charge-off in this environment. emily: how did this accident sism impact your latest round? did you find it was a challenge? dove investors asking more questions? >> sure. we got a number of questions as you can imagine. it really gave us an opportunity to tell our story, and our story is pretty unique. serve a borrower who on average is 30 years old, making six figures, and their credit scores are strong, so they pay back. in this environment of uncertainty, there is this uncertain of equality that has taken note. investors have taken not of our platform, which empowers us to

have the business. emily: now, post brexit it looks like rates are going to be lower for longer. how does that impang your main business, which is the re-financing of student loans? >> the lower interest rate or the benign interest rate environment is good. it is a stable environment for us. cost ows us to keep our to capital low, especially on the balance sheet side of the usiness, where we do sponsor securitizations, which is a good thing. emily: where do you see the industry heading? do you see consolidation do you see more companies out there? do you see rules and regulations changing? what happens? >> you have this notion of sin tax versus bank.

it comes with a set of advantages that have to do with consumer engagement. product, price. however, the banks have the cost to capital advantage. that is pretty clear. what is less clear is what happens next. can we close the gap on cost to capital before the big banks can close the gap on consumer engagement? from what i have seen in last three or four years, it looks like we are closing gap on cost capital faster than traditional banks are closing the gap on consumer engagement. emily: so what is happening over the next five years? >> i think we just have to stay focused on the fundamentals. i think those of us that are eight scale, that are able to weather turbulence and environments otherwise just need to focus on the

fundamentals. take a look at bringing the right amount of lending capital on your platform for the right cost, allowing that to drive your volume and ultimately your revenues. maintain strong unit economics. think not just about cost of capital, but cost of marketing. how much does it cost for you to acquire a customer? we are not in an environment where you can overspend on that. to have a platform such as commonbond, and over 50% of our customers come to us through word of mouth, it will be something important over time. emily: david, thanks so much for joining us. bragging rights in the billionaires club go to microsoft. the three have a higher collective network than the three richers fast. they have a combined fortune of $131 billion, compared with $126 billion for the waltons,

$115 billion for the cokes, and $95 billion for the mars family. it is time to find out who is having the best day ever. today it is james cordan. releasing another viral karaoke official michelle obama. the clip has six million views on youtube. missy elliott. his video with adelle has over 115 million views. the first lady's video has been on since video. that does it for this edition of "bloomberg west." ... test

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new york r studios in city, this is "charlie rose." charlie: we're in cleveland for day three of the republican donald convention, trump was officially nominated last night. theme for tonight's program, earlier this evening, was make america first again. mike pence head lined the program as trump's voice for vice president. rump himself will speak tomorrow evening. joining me now is megan murphy, of ington bureau chief bloomberg. fournier is a political columnist at the national journal and