emily: i'm emily chang. this is "best of bloomberg west." we bring you all of our top interviews from the week. coming up, the tech earnings continue as intel is racing fresh headwinds and the key to its profit. my conversation with stacy smith. pandora is out with earnings after the internet radio company rejected a buyout offer from liberty media. we will catch up with the pandora ceo. after a year at the helm of

cisco, chuck robbins speak to us about brexit and whether he is backing donald trump area first to our lead -- the parade of earnings we saw this week, first up intel facing fresh headwinds in servers. executives are facing multiple questions about how the company will get background course on a conference call with analysts. we caught up with the intel ceo stacy smith after the earnings report. just relative to the second quarter, we came in right in line on revenue and we did better in terms of profit from our expectations. revenue,dissect that the pc market was a little bit stronger and data center was in line and maybe a hair better and that was offset a little bite weakness in memory and the internet of things. category, wehe pc think there was a little less seven inventory vernon the second quarter but we continue to be cautious as we go into the

back half of the year and we are expecting a high single-digit decline in the pc market. emily: where do you see the bright spot, in the u.s. or abroad? >> i think the driver of the company now is what is going on in the cloud and the data center. i think we are poised for a strong second half. cloude some of the big customers who are looking to purchase and we have new based oncoming in technology that we think will allow them to buy a richer mix of products. within the pc segment, it's kind of the same as what we have seen the last six. the mature markets are doing better than emerging markets. there are pockets of strength. u.s. retail was a little stronger this quarter than we anticipated in the back-to-school season so we continue to watch that. emily: there is concern about the data center banter -- business.

there is a worry that it cannot make up from the pc business. it has fallen below 10%. mid-teenst back to type of growth? >> we are predicting low double-digit growth for this year and that would imply that we have a growth rate that is in the midteens in the back half. it's the buying patterns of some of the large cloud customers. it's a richer product mix. one of the longer-term drivers of the data center is the internet of things. all of these devices connect to the cloud infrastructure. at, by 2020, 1k person will generate 1.5 gigabytes of information and a connected car will generate 3000 times that per day.

how much do you see iot contributing to intel plus bottom line five years of now? >> it's well north of $2 billion, on its way to $5 billion. we saw the growth last year in the high teens and we expected to be in the teens again this year. it is growing fast for us and it's a profitable business. the driver here is that there is such an explosion of devices that now require computational power and conductivity. i think we are uniquely situated as a leader in both of those categories. and others have reported that you finally got a big breakthrough when it comes to mobile phone chip parts. what can you tell us about this? is it coming from apple and is it for the iphone? >> i cannot talk about specifics. our mobile strategy is that we will leverage the progress we have made in the 3g world and

the lte world and when we get to 5g, we will be the leader. when we couple that with the andbility we have in cpu's graphics and programmable logic, we have an array of products we can put together for our customers. we are excited where we are. and the strategic advantage. emily: that was stacy smith from intel. first of all, what is your biggest take away from that conversation? >> i like the intel story and how it is positioned. they are downplaying the pc market and could potentially improve. i like the fact that they are downplaying expectations. that are some concerns growth may be slowing in the data center. maybe it's not as high as people wanted that one thing that has

maintained his this is a lumpy business. it's inconsistent and a highly concentrated as ms. with the four top u.s. guys. they are doing a lot of the buying for the public cloud markets and when you have that level of concentration with respect to the cloud vendors, you'll get some lumpiness. he said the first half is below the 10% mark but the second half will be well above so you will get it full-year distribution of revenue in the double-digit range. it's not 15% but maybe it ends up being 13%. margins are high so now let's look forward to the end of the year. the data center is improving and there is high confidence for the second half. if the u.s. is improving and inventory cuts are moderating and might i say that if pc's

return to low the clients are growth potentially in developed markets, we could see some terrific headway made by intel because it is uniquely situated in the market. still ahead, pandora is out with earnings and we will bring you our exclusive interview with the founder and ceo. plus, the master plan expanding into ridesharing and buses but investors are not impressed. the details that wall street is still waiting on, next. this is bloomberg. ♪

emily: pandora is out with earnings this week. they announced last quarter to quadruple annual sales to $4 billion by 2020 and we got reports of the internet radio service rejected and in formal buyout offer from liberty media. we spoke with the ceo and founder tim westerberg on both counts.

listener hours went up, how do we make sense of that? that have been signaling we expected to be flat for a while and we are surrounded by the lot of these free on-demand services that we cannot compete with yet. andre on our way to do that are building new products to address that but the growing engagement is our core listener base that just listens more. that's a reflection of product improvements, our team has grown, more distribution. we feel good about the core product and cannot offer to a more complete marketplace to compete. emily: you have a plan to quadruple sales by 2020 but revenue growth is decelerating and now we are seeing listeners fall as well. why should we trust your plan question m? million people

coming to pandora every month and that is growing. a huge investment in a backend advertising infrastructure. we are getting more efficient. as we look ahead and expand the product and diversify from advertising to subscriptions, we will start balancing the business where we optimize for advertising but also for subscriptions and should grow 20% year on year and the business is in good shape. emily: you have acquisitions of your own. what will be the key differentiator? apple is revamping its music business and spotify is there, what will make a difference? >> we have a lot to bring to the table. this will not be a metoo product. 30,000nd services are songs but pandora brings a lot more. when you come to the on-demand service, we can curate and make

the on-demand experience easy and an intuitive as we made radio. it will magically appear in your service and be easier to use a map of the problem to solve now. a lot of data, huge audience and delivering a product that is differentiated. emily: do you plan to have a limited tier system that >> will keep you engaged with the radio product? >> you start with this foundation of 100 million people who listen 24 hours per month about whom we know a time. adding the cross sell and upsell opportunities so we can speak to you about your radio experience. we can find the right ways to hope people in. the music industry, they are seeing that we are incremental in the business. we will solve the biggest problem they face which is how you take the mass population and bring them into the picture.

emily: what are the key sticking point with the industry? we feel really confident based on the products of the last few months that there is a lot to be had. part of what's taking time is we did not come in with a cookie-cutter deal. we want to offer a considered product that requires additional features and that takes some time to explain. i think labels are beginning to understand the potential opportunity. emily: there is an ongoing review of publishing royalties. how can that impact you? >> publishing is a small part of this. the big pieces on the performance side which is what we are negotiating. confident that we can sign deals that preserve the long-term economics which is very critical. the shares popped on this report from the wall street

journal that you got an offer from liberty media. what really happened? >> i cannot speculate. my job is to look after long-term shareholder value. that's how we make all of our decisions. we have a strong core business iat is rowing and i wish could show you the product we will launch later this year. it will be something else. we are bringing so much of that product that we will reinvent the space. emily: i have asked you this question many times. are you open to the offers that across your desk? would you ever consider selling? >> my job is to look after long term shareholder value. it's a strong, independent board and we take that very seriously. emily: we are at the height of the political season and you once told me that pandora can tell if you're a democrat or republican. how can you tell? combine your zip code with the style of music you listen to, we can predict your

political affiliation with 90% accuracy. it's an amazing platform for political advertising. local spending from county supervisor races to presidential. we have a very strong political foundation. this year has been unusual. we signaled that and the call and it is reflected in second half guidance. the spending on the republican side has been slow to mature. we expect a strong season. the super packs have been spending on pandora because of the ability to get targeted advertising. do you see any interesting trends when it comes to political advertising? the visibility of the platform in d.c. has grown tremendously and across the political spectrum. candidates are getting more savvy about digital. a's a tell win for us for

revenue standpoint. emily: you said half of radio listening occurs in the car. what kind of traction do you see there? i think 19 million unique activations happen in the car. we are looking for the arrival of the connected car. it's not here yet that when you turn it on and pandora starts playing, when you get there, it's a whole new ball game for us. kind of in lockstep as they develop the technology and are part of the development but we want to be right there for wherehat nirvana arrives the car is like a rolling computer and pandora can just the there and easy to use in the dashboard. emily: irish was of interview with tim westergren. coming up, another bloomberg exclusive come our conversation with the cisco ceo, chuck robbins on his first year at them the cisco and the 2016

presidential election. this is bloomberg. ♪

emily: we are nearing the one-year mark since chuck robbins stepped into cisco and they have made 16 acquisitions and reorganized its management team. we spoke with chuck robbins in an exclusive interview from cisco headquarters in san diego and asked about his strategy for cisco ahead. is first andgy foremost to look at where the market is going and what our customers need from us. then we look at what our capabilities are and the speed at which we can deliver our innovation and where do we need to leverage m&a and new partnerships. we found that the speed at which we need to move,

we have had a greater affinity for smaller, very aligned acquisitions ido see that -- and i don't see that changing significantly. emily: when will we see more of those? >> we will always be opportunistic. emily: what areas are you targeting? >> the areas of iot is important. you saw the jasper acquisition which was core. insecurity, we have been active. if you look at the ones we made over the last 15 months, they are in areas of cloud and security and analytics and iot and those are the key focus areas for us going forward. will continue we to a line around those areas. emily: some people say that the cisco security offerings are not good enough for easy enough to implement. is if youu will find go back five years, that was definitely the feedback we got. i think the team has done an amazing job of building an architecture and then delivering

a combination of internal innovation and acquisitions and they have driven significant integration of those two capabilities. if you look at iot, we will operate in this massively distributed world where there is no perimeter for an enterprise. the network has to play a huge role in and that's one of the announcements we made last week. this machine learning analytics capability that begins at the edge of the network which is what you have to do from a security perspective. i feel good about where we are. emily: you guys are a huge global business and you have an office in turkey and there has been in events unfolding there. what does instability like that mean for your business? i stood on stage three years ago and told our team that i acquainted it to writing a different roller coaster every week. that's a new world we live in. the constantly changing geopolitical landscape, the economic shifts that occur

or the shifts that occur, these are things we have to deal with. there is certainly a tremendous loss of life which is the real issue and it's incredibly sad and we see so much tragedy around the world that it is disheartening. we take all the things that are from the global economic perspective and focus on the things we cannot troll and assess what the implications are and then we move on. emily: brexit what about? was think brexit unfortunate for the european union. they were moving toward continuing to create a single market. tried to create a single digital market going forward. from that perspective, it could set them back. we don't have operations in the u.k. that we used to do business across europe. implications are

probably similar to what other the currencyld see situation creates challenges but otherwise, we will navigate our way through. i know you emily: normally vote republican and some say donald trump cannot get -- is not someone you can get behind. >> what we care about are the policies that the candidates represent. on the policies regardless of who gets elected. our employees and customers and business are things that are critically important. issues of inclusion, tax reform, immigration reform, there is patent reform -- all of these things matter. when i spend time in washington with either side of the isle, those are the things we focus on. emily: on the subject of politics -- that's not a yes or

no, why not? fundamentally in this country and around the world, there is so much that divides us so it's more important to on what we can do together to bring people back together. that's the most important thing to me so focusing on the policy and not contributing to the devices is where i will stay. emily: other folks have said donald trump is not good for innovation. or silicon valley. >> once we get through the election, driving job growth and innovation in this country and focusing on trade because 75% of the gdp and 95% of the people don't live in the united states so trait is incredibly important, getting these things right, that will get the issue that needs to be dealt with in the country which is driving more growth. that is how we will lift the middle class and that's what will be required. those are the areas that will help the next president. emily: cisco is an incredibly

large organization. maybe it's not your place to pick a side? >> our employees expect that we will work on the things they care about. every person has the right to feel the way they feel about whichever candidate they will support. across cisco, employees support either candidate. our job is to represent the bigger issues that are important to the employee race and our business and that's what we will stay focused on. emily: our exclusive interview with chuck robbins of cisco. still i had, tesla wants to expand into utilities but has eli must's master plan lived up to the hype?

emily: welcome back to the best of bloomberg west. we saw the release of a big, bold master plan from tesla maverick ceo elon musk.

daring plan for tesla in the vanguard of an electric vehicle revolution. 10 years later, some investors seem to be wary of his big ideas. analyst with a senior with consumer edge research. are these vehicles going to get made? >> they made be made at some point by someone but whether to has led does them, i have no idea. point ofot seem to be this plan. if you contrast it with the plan released 10 years ago, that was a plan. it was fairly standard, build an expensive yet it and get people to buy it and use the money to buy a cheaper one that more people by. this one is extremely wide-ranging. like anost

environmentalist escapism. emily: not only that, he also details his reason, his vision for white has low should buy solar city and envisions solar power electric vehicles and tesla becoming a one-stop shop where you can buy your house battery and solar panels and your tesla. it's exciting and audacious but there are no details on how he would fund this or actually do this. what is your take? >> thanks for having me. we did not expect necessarily to have details. 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 the auto industry and what it could look like in 2025, it's a thought-provoking exercise. for us, the biggest? is that the 2006 plan is incomplete. is the more

affordably priced market entrant but it has not broken ground. there is quite a bit of obstacles in the first plan to overcome before we can start talking about disrupting and dislodging a variety of other industries. there is no reference to the investigation into the auto pilot crashes. he says at some point that autopilot will be 10 times safer than the average u.s. car but how big a problem is this issue? >> i think it could be a big problem. the fact that he talked about it a lot kind of obliquely in the plan speaks to that. also the fact that he was talking very much about oftifying the integration the solar panel business with

the car business. that was featured heavily. in some ways, the release of this plan now is meant to head off quite a bit of the criticism that has been laid out in the past month or so. emily: you do have a consumer race that loves their teslas. customers are obsessed with the cars. would they be better off as a private company? uber. >> maybe they wish they could do that. you can raise a lot of money outside the public eye now. stockd point out that the price is still higher than it was before they announced the solar city deal which is kind of telling. apart from the consumer base, there is a very strong fan base among i think you would need to say something -- see something really go wrong. james, would you agree?

ridiculous toas eve even proposed merger with solar city. james: the stock has recovered since the initial solar city transaction. i don't think that means investors have given you unmask a pass. -- elon musk a .ass th if they hit their targets on the model three, the solar city transaction is a relevant. -- the solarvant city transaction is irrelevant. that's why the stock is held up

irrespective of these near-term issues. up, it all started with a razor and a viral video. now, dollar shape club is being scooped up by a shaving giant for $1 million. you can i listen on the bloomberg radio app, iriusberg.com and s xm. ♪

emily: unilever is scooping up g up dollar shape club for $1 billion. dollar shape club is on track to post $2 million in sales this year. we spoke with david packman, an early investor in dollar shave. and frederick, founder and managing partner of felix

capital. you got 10 times return on this investment. a company that not a lot of traditional investors wanted to back and yet, they ca they prove they can compete with gillette. what made dollar shape club successful? -- dollar shaved club successful? david: they had very low turn rates come extremely high loyalty. , onehad a great value play third the price of gillette razors on the market. and great convenience. an incumbent killer. they are growing very steadily. what do you make of shave?r buying dollar

frederick: that's what we see happening in europe, making able that. taking unilever into a new market. tremendousthem skills, assets. you think more big buys are coming from european companies? frederick: all other places. just recently, we'd seen a number of large deals in europe from asian buyers. makeompanies that need to a visual transformation, unilever is one. and a big incumbent has to do that. -- any big incumbent has to do that. emily: a lot of investors did not want to invest in this company. tell me about the initial pitch.

david: the commerce space is hard, it tends to have low multiples and does not attract as much capital. this is a company with really tremendousrates, loyalty. it is super strategic. we have a decline in physical retail, foot traffic to physical retail stores is declining. we haven't over dependency on brands with tv ads. this is about reaching consumers on the social channels. a company in the direct to consumer business. consumer companies will have to become direct to consumer companies. ,hey have amazon on the rise going into many of these categories themselves.

getting this expertise is crucial. it was an easier decision for us because it fit a lot of our criteria. emily: i remember when my husband started ordering razors. i thought to myself, how can this company make money selling razors this cheap? advantageous? what kind of companies can take on amazon? david: this company does make a number of their own products. we've got 27 different products. 's.or 80 different sku they make products and market them to consumers themselves. they don't use advertising agencies. they acquire customers themselves and they service those customers. they are. , they operate every piece of

the technology in every piece of -- they are full stack, they operate every piece of the technology and every piece of that component. emily: this is not your typical technology company. do you think ik of dollar shave as a technology company ? frederick: they are technology enabled. every company has to go through that transformation. advantage is being able to go directly to customers without going through retail. the wholesalers sellthrough large retailers. you have to lose a lot of margin doing that. you don't know your customer.

going directly to your customer, you have much better margins. still ahead, this week, we focused in on food technology. schmidttry that eric says is ripe for investment. come fromnot have to an animal. ♪

emily:emily: food tech is right for the picking according to eric schmidt. . technology as one of six industries ripe for investing. we go into the multibillion dollar industry this week that bigboth silicon valley and chomping ates the bit. >> this is made predominately ea protein.ei

the key is to think of me to not at notms of origin -- me in terms of origin but what the components are. , fat, protein and water. resourcesined those to provide meat directly from plants. the flavors you find in mea are the result of reaction of 600 molecules. identified a similar molecules in the plant kingdom and combine them in the same way to give them that aroma and flavor. emily: what is your mission? round --really a around building a more sustainable meat. bottleneck ine

production. we've been consuming me that has to come from an animal. inefficient power reactor. , but continue to eat meat simply build it from plants. i felt there was a bit of an aftertaste. i don't know if it was because i was sitting there thinking about it, how it compares to the real the product what it is or something you will because of the tweaking and changing? -- be constantly tweaking and changing? >> we have a relentless focus on 80-20. every year, we are making it better and better and releasing new versions of it. emily: maybe it's just me.

you also have chicken products. plant-based proteins. tell me about that. inwe launched the company 2009, part of this effort to continue to create products that consumers will associate more and more with animal-based proteins. what are some of the products people love to eat that they know they should be less of -- eat less of? etc.rgers, hot dogs, we have our hands full in the u.s. we launched this product in the meat section of whole foods. so people can make the choice between the plant-based meat and

animal-based meat. we sold out in one hour. really interesting to see how the consumer reacts to having this choice. we are looking at china. it will be a while. technology?is the what actually is food tech? as a delivery or the composition of the food itself? emily: a couple years ago -- >> a couple years ago, i was talking about the tremendous innovation, smart pcs, and his said it's good for my iphone, not for my mouth. people want to eat food they are familiar with. not something considered high-tech. andave to balance that bring a science perspective to

this end a culinary perspective. heat andplying pressure to realign the proteins found in plants so they mimic the structure of a muscle. food allergies on the rise, one san francisco-based startup believes it has come up with a way to make eating out less stressful for those with sensitivities. a handheld device that can test for gluten levels right at the dinner table. at the lab. day take a listen. food.will test some this is a supposedly gluten-free coffeecake. we will test it to see if it actually is. you take this little sample of portioneecake, ap sized ea sized portion.

nima and turn it on. 85% of the food at restaurants labeled gluten-free is actually not. doctors have expressed a lot of interest in being able to use nima to teach their patients what is safe and what is not. it is gluten-free. delicious. hungry, anyone? joining me now for more, the nima ceo. we just saw how it works. tell me about t technology. chemistry-based technology, we've been working on it for several years. we recognized an opportunity to create this quickly, get information out of the plate and after this device in a few minutes -- on to this device in a few minutes.

super accurate at 20 parts per million gluten in your food. is the accuracy of restaurants? gluten-freee time, labeled items are coming up as positive in our testing. people are getting sick when they are eating out. it has to do with miscommunication, cross-contamination -- kitchens are chaotic. exactlyd to know what you're putting in front of someone. emily: we talked about the rise of food allergies. where is this going? >> in terms of the whole market? people are becoming more and more aware of how food affects those with food allergies and food sensitivities. and medicine and how that affects their body.

people are demanding more information about what exactly is in their food. emily: nima is not currently approved by the fda. >> we are validating our technology with third-party lab validation. you have the device here with you. how big of a market the you think this is -- do you think this is? >> there are 50 million people in the u.s. who need to know exactly what is in their food. it is growing, 50% over the last 15 years. emily: how much of that can you guys -- >> this is billions of dollars in terms of market size and nothing like this exists right now. people are clamoring for better information about what is in front of them. emily: that does it for this edition of the best of "bloomberg west." we will bring

you the latest in tech throughout the week. tune in for a full analysis at 6:00 p.m. this is bloomberg. ♪

carol: welcome to "bloomberg businessweek." an cracks down in turkey. hillary clinton's foot soldiers. inid: all that and more "bloomberg businessweek." carol: we are here with the editor of "bloomberg featureweek." the story on turkey. a crackdown on journalists and teachers. >> this is a story we ha t