emily: this is the best of "bloomberg west." we bring you the best of our interviews from the week in tech. they are facing fresh headmans and servers. i talk to stacy smith. pandora is out with earnings after report that they rejected a buyout offer from liberty media. we will talk to tim westergren. after a year at the helm of

ando, we speak about brexit donald trump. the parade of earnings weeks kicked off. intel faces fresh headwinds and servers. executives are facing multiple questions about how the public built yet back on course. smithght up with stacy right after the earnings report. the secondtive to quarter, we came right in on revenue. revenue,dissect that the pc market was a little bit stronger. data center was right in line. it was offset a little bit tight memory and internet of things. category, wehe pc think there was a little less inventory burn in the second port. we are cautious as we go into the back half of the year.

we expect high single-digit decline. emily: where do you see the bright spots? does it spread abroad? driver of the country is the cloud and the data center. strong second half. we have insight from cloud customers. they are looking to purchase and we have new products coming in. we have processed technology that will allow -- allow them to buy a richer mix of products. it's the same as what we have seen the last six months. mature markets are doing better. they are doing it better than emerging markets. there are some pockets of strength. u.s. retail was stronger than we expected. we are continuing to watch it. emily: there is concern about the data center business. this is the second quarter that

growth in that unit has fallen a low 10%. will we get back to that made teens type of growth? stacy: we are expecting double-digit growth for this year. we have a growth rate that is in the mid-teens. i think we have a line of sight and that will grow. it's the buying patterns of some of the large cloud customers. it's a richer product mix. i think one of the longer-term drivers in the data center is the internet of things that you talked about. all of these devices connecting to the cloud infrastructure. at 42020,hat we look a person will generate 1.5 data bytes. a car will generate three times worth of data in a day. that is a big driver of the

industry going forward. ioty: how much do you see contributing to intel's bottom line five years or not? stacy: it's on its way to being a $3 billion business. last year it was in the high teens. this year it will be in the teens again. faster, it's a very profitable business. the driver is that there is such an explosion of devices that require computational power and conductivity. situation --ly positioned in those situations. emily: you finally got a big rig through when it comes to mobile phone chip parts are in a what can you tell us about that? apple? rder coming from stacy: our mobile strategy is we're going to reverence -- -- we will be the

leader. when we couple that with the capability that we have in cpus and graphics, we have an incredible array of products we put together for our customers. we are excited about where we are at. smith that was stacy there. york, what from new is your biggest take away from that conversation? >> i like the intel story. they are downplaying the pc market. they could be an improving pc trend or. i like the fact that they are downplaying expectations. there are some concerns that growth may be slowing, it's not as high as people wanted to be. this is a very lumpy business.

it's a terribly inconsistent business. they are doing a lot of the line. when you have that double of concentration, particularly in the u.s., you're going to get some lumpiness. the worst half is below the 10% mark. the second half is well above the 10% art. you'll get a full year distribution of revenue. it's not a 15% number. margins are high. year look forward to the 2016. the data center is improving. there is high confidence there. if the u.s. is improving and inventory cuts are moderating, shockingly i might say pcs may return to low declines or even

growth. we could see some terrific headway made by intel. it is uniquely situated in the market. emily: pandora is out with earnings this week. we will talk to tim westergren. elon musk talks about his master plan. investors were not impressed. the details that wall street are still waiting on next. this is bloomberg. ♪

emily: pandora is out with earnings this week after the five-year plan was announced to quadruple annual cells to $4 billion. buyoutjected an informal offer from liberty media. forpoke with tim westergren an exclusive interview. felt thesteners

listener hours when up. tim: we expected to be flat for a while. we are surrounded by a sort of glad of free on-demand services. we are on our way to competing with that. in age meantrowing is a positive signal for us. we just crossed a 24 hour a month threshold. our team has grown. we have more distribution. we feel good about the war on. we can't wait to compete. emily: you have a plan to the drupal sales. revenue growth is decelerating. listeners are falling. why should we trust your plan? people -- 10000 million people. we have a huge investment to

backend advertising. our rpms are growing. as we look ahead to the next time for us as we expand the product and diversify from advertising and subscriptions, we will start balancing a business where we mise subscriptions. -- optimize subscriptions. emily: you bought cardio. you are working on an on-demand service. there are so many on-demand services out there. what's going to make yours different? tim: we have a lot to bring to the table. this is not going to be a me too erotic. -- product. that's not for an average consumer. pandora rings an enormous service about which we know a ton. we will be able to curate that and make the on-demand

experience as easy and intuitive as we made radio. it will be easy to use. i think that's the biggest problem that needs solving right now and a lot of data and a huge audience, it's going to be differentiated in emily: do you plan to have a tiered system? tim: you start with this foundation. we know a ton about those people. adding to the cross sale and upsell possibilities. thean talk to you in context of your radio experience. we can find the right way to hook people in. , theyk the music industry are seeing the we are incremental to the business. populationke a mass

and bring them into paying services? emily: what is the sticking point with the artist's right now? tim: we feel really confident with the progress. part of what is taking time is we did not come in with a lot of the cutter deals. we wanted to offer a more considered product that requires additional features. that takes some time to evangelize and explain. we have an opportunity that we bring. emily: there is a review of publishing royalties. how could that impact? tim: the big pieces on the performance side. that is what we are negotiating with you we are increasingly confident that we can sign deals that preserve the long-term economics. you guys got an offer from liberty media. what happened?

tim: my job is to look after long term share holder value. we'll have a very strong core is this. i wish i could show you the product right now the are going to launch. it's going to be something else. we bring so much to that product. i think we will reinvent the space. emily: your field of this question many times before. are you open to the offers the cross your desk? would you ever consider selling? tim: my job is to look after long-term shareholder value. that is my job and we take that seriously. emily: we are at the height of the political season. you said that pandora can tell of your democrat or republican. tim: if you combine your zip -- music the musical

you listen to, we can predict your home party affiliation within any percent. it's amazingly affect you. we have a very strong political foundation. this year has been a little unusual. it is reflected in our second half guidance. we are keeping a nine that are in we expect strong season. emily: we reported about super cap -- super pacs. if you have seen any interesting trends when it comes to political advertising and how much of that has helped? visibility of the platform in washington dc has grown tremendously. candidates are getting more savvy. they understand it and know how to use it. it is a tailwind for us. you said half of radio

listening happens in the car. tim: it's north of 190 miles. there are 19 million activations for the car. we are looking for the arrival of the connected car. it's not here yet. point, it's to that a whole new ballgame for us. we are in lockstep with them. being part of that development, we want to be right there for when that nirvana arrives and the car is like a rolling computer and pandora can be there on the dashboard. emily: our interview with tim westergren, the pandora founder. coming up, another exclusive. our conversation with jeff robbins. ♪

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. robbins says he does not have his head stuck in the sand. we spoke with chuck robbins in an exclusive interview from cisco headquarters in san diego and asked about his strategy for cisco ahead. >> our strategy is first and 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. historically, 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. in security, 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. they are going to drive our business. you can expect we will continue to align around those areas. emily: some people say that the cisco security offerings are not good enough or easy enough to implement. is that an area you will push on? >> what you will find is if you 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 atiot, 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. it was 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 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 equated it to riding a different roller coaster every week. that's the new world we live in. whether it's 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 going on from the global economic perspective and focus on the things we cannot control and assess what the implications are and then we move on. emily: what about brings it -- brexit? >> i think brexit was unfortunate for the european union. they were moving toward continuing to create a single market. they 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 use to do business across europe. the global implications are probably similar to what other countries would see when the

currency situation creates challenges but otherwise, we will navigate our way through. emily: i know you normally vote republican and some say donald trump is not someone you can get behind. will you vote for him? >> what we care about are the policies that the candidates represent. we will focus 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 aisle, 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 divisiveness, 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 devisiveness 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 trade is incredibly important, getting these things right, that will be the issues that need 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 ahead, tesla wants to expand into utilities but has elon musk's master plan lived up to the hype? ♪

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♪ to the couch where you at? ♪ ♪ show me the latest medal count♪ ♪xfinity's where it's at. ♪ welcome to it all. comcast nbcuniversal is proud to bring you coverage of the rio olympic games. family: welcome back. this week, we saw the release of a date bald master plan from

tesla ceo elon musk. he laid out a daring plan to put tesla in the vanguard of an electric vehicle revolution. 10 years later, some investors seem to be weary of musk possibly get ideas. we spoke to a senior analyst with consumer edge research and gadfly columnist. are these going to get made? liam: they may get made by someone. if tesla is the one to do them, i have no idea at this point, and it seems to be the point of this plan. contrast it with the one released 10 years ago, that one kind of was a plan and a fairly standard one. you build an expensive gadget, get someone to buy it, and you use the money to build a cheaper one that people by. that is a fairly standard thing. this one is almost like

environmental escapism. that, james.ly he details his vision for why tesla should buy solar city. tesla becoming a one-stop shop where you can buy your solar roof panels, your house battery, tesla.r solar powered it is certainly exciting. it is audacious, but there's no details on how he would actually fund this or do this. what is your take? james: sure, and thanks for having me first off. we did not expect necessarily to have details. much like we do when we think about what the auto industry could look like in 2025, it is a bit of a thought-provoking exercise, but i think for us, the biggest question mark is that the 2006 plan is still

incomplete. the model three, as i'm sure you know, is the more affordably priced sort of market entrant and has not even broken ground. there's quite a bit of, i think, obstacles still on the first plan to overcome before we can start talking about disrupting and dislodging a variety of other industries. emily: there's no reference into the investigation into the autopilot crashes. somebody has died driving on autopilot in a tesla, but he does say at some point tesla autopilot will be 10 times safer than the average of u.s. cars, but how big a problem is this issue? liam: i think it could be a big problem. the act that he talked about it a lot kind of obliquely in the plan speaks to that, and i think also the fact up front he was talking very much about justifying the integration of the solar panels business with the car business.

that was also featured very heavily. in some ways, i think the release of this plan now is meant to head off quite a bit of the criticism that has been laid out in the company over the past month or so. ly: business issues aside, the you do have a consumer base that loves their teslas. i wonder would tesla be better off as a private company? >> looking back, maybe they wish they could do that because certainly, you can raise a lot of money outside the public eye, but i would point out the stock price is still higher than it was for they announced the solar city deal, which is kind of telling. apart from the consumer base, there is clearly a very strong fan base among investors, and i think you would need to see something go really wrong with one of the product for that to come in a question. emily: james, would you agree?

some said it was ridiculous to 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. -- you unmask -- elon musk a pass. we are in the midst of sort of a very bifurcated, binary outcome situation. hit a veryither aggressive, albeit very impressive if they get there, target for the model three, or they fall short. that is where you have to be focused right now. if they hit their targets on the model three, the solar city transaction is a relevant. that's irrelevant -- the solar city transaction is irrelevant. there's quite a bit more big into the auto side of the business in terms of expectations. that is one of the key reasons the stock has held up

irrespective of these near-term issues. emily: coming 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. we will hear from one of the startup's first investors next. and if you like bloomberg news check as out on the radio. you can i listen on the bloomberg radio app, bloomberg.com and sirius xm. ♪

emily: unilever is scooping up dollar shape club for $1 billion. terms of the deal were not disclosed, but according to bloomberg sources, it's worth $1 billion. tolar shape club is a direct consumer model eating into market share for established razor bland -- brands and is on track to deliver $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 they prove they can compete with gillette. what made dollar shave club successful in a market where there were very established incumbents? david: they had very low turn rates come extremely high loyalty. which is important if you want to build a large company. they were disruptive because they had a great value play, one third the price of gillette razors on the market. and great convenience. that produced an incumbent killer. a company that has really eaten a lot of market share, more than 15% market share and growing very steadily. they are growing very steadily. emily: what do you make of unilever buying dollar shave?

frederick: that's what we see happening in europe, making able that. i think it will be the shape of things to come. taking unilever into a new market. that gives them tremendous skills, assets. emily: 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. i think money is traveling very fast. the companies that need to make a visual transformation, unilever is one. 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 low return rates, tremendous 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 legacy brands with tv ads. you have a company that is expert. it is social marketing and reaching consumers on social channels where they spend all their time and a company that is in the direct to consumer business. legacy consumer companies will have to become direct to consumer companies. they 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? what makes it advantageous? what kind of companies can take on amazon? david: this company does make a number of their own products. they sell a lot of other stuff sides razors. we've got 27 different products. 50 or 80 different sku's. the majority of which they make themselves. they make products and market them to consumers themselves. they don't use creative agencies or madison avenue advertising agencies. they acquire customers themselves and they service those customers.

they operate every piece of the technology in every piece of that -- they are full stack, they operate every piece of the technology and every piece of that component. that is a skill i think that is becoming decreasing importance. emily: this is not your typical technology company. do you think of dollar shave as a technology company ? frederick: they are technology enabled. every company has to go through that transformation. the biggest 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. emily: still ahead, this week, we focused in on food technology. an industry that eric schmidt says is ripe for investment. next, we will hear from a ceo ato is out to prove that mee does not have to come from an animal. ♪

emily: food tech is right for the picking according to eric schmidt. he listed food technology as one of six industries ripe for investing. we go into the multibillion dollar industry this week that has both silicon valley and big tech companies chomping at the bit. here is our interview with the ceo of a vegan startup aiming to disrupt the global meat industry. >> this is made predominately from pea protein. the key is to think of me to not

in terms of origin -- meat not in terms of origin but what the components are. amino acids, fat, protein and water. we've combined those resources to provide meat directly from plants. the flavors you find in meat are the result of reaction of 600 molecules. we 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? to get people to build more plants? what is it? >> it is really a round -- around building a more sustainable meat. any operations class worth its salt is going to talk about

eliminating the bottleneck in production. we've been consuming me that has to come from an animal. that is an inefficient power reactor. let's continue to eat meat, but simply build it from plants. by doing so, you can provide something healthy and sustainable. emily: 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 thing -- is the product what it is or something you will because of the tweaking and changing? -- be constantly tweaking and changing? or does it stay the same because you want to have a consistent product? >> 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. >> we launched the company in 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? hamburgers, hot dogs, etc. emily: the chinese government has outlined a plan to cut meat consumption by 50%. are you going to capitalize on that? >> we are looking at asia pretty intently. 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.

what we expected to sell for a couple of weeks. it has been really interesting to see how the consumer reacts to having this choice. we are looking at china. it will be a while. emily: what is the technology? there a big controversy. 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 wife said it's good for my iphone, not for my mouth. i think that is an extremely important point. people want to eat food they are familiar with. not something considered high-tech. we have to balance that and bring a science perspective to this end a culinary perspective. we are applying heat and

pressure to realign the proteins found in plants so they mimic the structure of a muscle. if you are willing to have cost a, you should be willing to have our products. emily: 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. we spent the day at the lab. with cofounder and chief product officer. take a listen. >> we will test some food. this is a supposedly gluten-free coffeecake. we will test it to see if it actually is. you take this little sample of the coffeecake, ap sized portion -- a pea sized portion. put it in nima and turn it on. 85% of the food at restaurants

labeled gluten-free is actually not. -- about 25% 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. emily: hungry, anyone? joining me now for more, the nima ceo. we just saw how it works. tell me about the technology. >> the chemistry-based technology, we've been working on it for several years. the founding team came out of them i.t.. 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. emily: what is the accuracy of restaurants? >> 25% of the time, gluten-free labeled items are coming up as positive in our testing. one out of four chances of getting sick, basically, when you are eating out. emily: why is that? >> it has to do with miscommunication, cross-contamination -- kitchens are chaotic. it's hard to know what exactly you're putting in front of someone. emily: we talked about the rise of food allergies. shaun parker, for example, has invested heavily in research around 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. looking more at food as medicine and how it affects your body.

people are demanding more information about what exactly is in their food. emily: nima is not currently approved by the fda. is that something you plan on seeking? >> we are not seeking it. we are basically validating our technology with third-party lab validation. thearing our methods to gold standard lab of what is proper for food testing. emily: 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. their health depends on it. it is growing, 50% over the last 15 years. it is a large market. it is a growing market, and a lot of opportunities. 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. so a significant portion. emily: that does it for this edition of the best of "bloomberg west." we will bring you the latest in tech throughout the week.

lots of big earnings lay ahead with apple, facebook, amazon, alphabet, and twitter all reporting. tune in for a full analysis at 6:00 p.m. this is bloomberg. ♪

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♪ >> coming up on "bloomberg best" the stories that shaped to the week in business around the world. three big banks celebrate earnings. is the sector turning a quarter? >> in most cases, it was not down as much as expected. >> a raft of tech companies releasing results, and it could be rough sailing for some ceos. >> will you stay to see it through? >> donald trump is officially the choice for the presidency. why big names in business are choosing to back him. >> people do not want political dialogue, they want action.