ofly: we bring you all our top interviews. coming up, intel facing fresh headwinds. servers the key to its profit. pandora is out with earnings after reports the internet radio company rejected a buyout offer. after a year at the helm of cisco, chuck robbins speaks to

us about brexit and whether he is backing donald trump. intel, the company facing fresh headwinds and the servers the key to its profit. executives facing questions about how the company will get back on course. >> relative to the second quarter, we came in line on revenue. we did a little better in terms of profit from our expectations. when you dice up the revenue, the pc market was stronger, maybe a hair better. and was offset by weakness memory. category, wehe pc think there is a little less of an inventory burn in the second quarter.

we are expecting high single-digit decline in the pc market. emily: where do you see the bright spot? driver of the company is what is going on in the cloud and the data center. a second half.or we have new products coming in. within the pc segment, it is the same as what we have seen. the markets are doing better than emerging markets. strength.pockets of we are continuing to watch it. emily: there is concern about the data center business. quarter thesecond

growth in the unit has fallen below 10%. will we get back to the mid teens type of growth we have gotten used to? -- we predict low double-digit growth this year. growth rate in the midteens and the back half. we have line of sight at that level of growth rate. ofis the buying patterns some of the larger cloud customers and a richer product mix. the longer-term drivers of the data center is the internet of things you talked about earlier. connecting to the cloud infrastructure. , a persone look at will generate about 1.5 gigabytes of information. a connected car generates almost three times that amount of data in a day. that is a big driver of the

industry. emily: how much is a percentage of sales or a dollar number that contributes to intel's dollar line? we are seeing growth rate in the business. last year, it was high teens. this year, we expected to be in the teens again. it is growing fast. is such an explosion of devices, it requires confrontational power and connectivity. bloomberg and others have reported you have a big breakthrough when it comes to mobile phone chip parts. coming from apple and is it for the iphone? >> i am not going to talk about specific designs. we are going to leverage the product -- the progress we have

made and our plan is when we get we will move from being a fast follower to a leader. when we couple that with the capability we have in cpus and graphics, that we have this incredible array of products we can put together for a customer. we are excited about where we are. emily: stacy smith there. york, what from new is your biggest take away from the conversation? >> i like the intel story and how it is positioned. they could be improving pc trend or. i like the fact they downplay expectations. the data center, there are concerns. the things they

maintained is this is a lumpy business. it is inconsistent, concentrated. are doing a guys publicthe buying for the markets. when you have that level of concentration with respect to the vendors, you will get lumpiness. you are going to get a full year distribution of revenue that is in the double-digit range. maybe it ends up being 12, 13% number. margins are high. let's look for 2016. .he data center is improving one quarter does not a trend make. if the u.s. is improving and you to loady if pcs return

, we could or growth see some terrific headway made because it is uniquely situated in the markets. still ahead, pandora. elon musk reveals his plan expanding into ridesharing and buses. the details wall street are waiting on, next. ♪

out with aora earnings, announced last quarter to quadruple sales by 2020. we got reports the internet radio service rejected a buyout offer from liberty media. exclusiveo tim for an interview. listeners felt listener hours

went up. signaling ween would be flat for a while. a glut ofrounded by free, on-demand services we cannot compete with. the growing engagement is a positive signal for us. our core listener base lewis is more -- listens more and more. our team is growing. we have a really good feeling about the core product. a plan to have quadruple sales. revenue growth is the seller rating and we are seeing listeners fall. why should we trust your plan? about 100 million people come to pandora every three months and listenership is growing.

our rpms are growing. we are getting more efficient. as we look ahead and expand the product and art to first defined the subscription, we will start balancing a business where we are optimizing for advertising and for subscriptions. the business is in good shape. emily: you are working on an on demand service. what is going to be the key thing that makes yours different? --this is not going to be care it on demand services are basically 30 million songs in a search box and good luck. that is not what you need for an average consumer. pandora brings a listening base, which we know what time about. able to curate that

and make the experience easy and intuitive. appear in your service and it will be easy to use. problem thatiggest needs solving. a lot of data, a huge audience. emily: do you plan to have a limited system that will keep users engaged? >> you start with a foundation of 100 million people who listen 24 hours a month. the upsellut adding opportunity. we can speak to you in the context of your radio experience and say we have noticed this , subscribe to pandora. i think the music industry, what has been encouraging is they are seeing we are incremental to the business. -- how solve the problem do you take the mass population

and bring them into the paying services? emily: what are the key sticking points? based onl confident the progress of the last few months. time, wehat is taking want to offer a considered product that requires additional features. that takes time to explain. labels are beginning to understand the potential opportunity we bring. there is a review of publishing royalties. how could that impact? the big pieces on the performance side. that is what we negotiate with labels now. we are increasingly confident we can sign deals that preserve long-term economics. this report thayou got

an offer from liberty mea. what happened? >> i cannot speculate. my job is to look after long-term shareholder value. we have a strong core business that is growing. i wish i could show you the product we are to launch later. it will be something else. we are bringing so much to the product that we will reinvent the space. emily: i have asked you this question many times. are you open to the offers that cross your desk? would you ever consider selling? is to look after shareholders. we take all of that seriously and that is how we make our decisions. emily: you told me pandora can tell if you are a democrat or republican. >> if you combine your zip code you the style of music

listen to, we can predict your platform within 90% accuracy. amazingly effective of targeting. this year has been unusual. the second half guidance. the spending on the republican side has been slow to mature. we expect a strong season. emily: super pac has been spending on pandora. wondering if- i am you have seen interesting trends when it comes to political advertising. of thevisibility platform in d.c. has increased tremendously. candidates are getting more savvy about digital. as a a tailwind for us

revenue standpoint. emily: you said half of radio listening occurs in the car. modelshave pandora embedded. we are looking for the arrival of the connected car. you get in the car and turn it on and pandora starts playing. when you get to that point, it is a new ballgame. we want to be right there for when the nirvana arrives, where the car is a rolling computer and pandora can be there, easy to use on the dashboard. coming up, another exclusive. our conversation with cisco ceo. ♪

emily: we are nearing the one-year mark since chuck robb and in as the ceo of cisco. he promises he does not have his head stuck in the sand when it comes to the forward march of technology. and askedith robbins about his strategy for cisco ahead. >> our strategy is to look at where the market is going and what customers need. we look at our capability and the speed we can deliver innovation, where do we leverage m&a and partnerships. found the speed a greatto move, we have affinity for smaller

acquisitions. i don't see that changing. emily: will we see more of those? .> we are opportunistic emily: what areas are you targeting? >> iot is important. security, we have been active. the onesve looked at over the 15 months, they are all in the cloud, analytics, iot. those are key areas that will drive business. some people say security offerings are not good enough now, not easy enough to implement. is that an area you push on? >> if you go five years back, that is feedback we got. the team has done a job of building architecture and

developing accusations -- acquisitions. iot, we willt operate in a distributed world where there is no parameter for enterprise. play a hugehas to role in security. that is an announcement we made last week. learning analytics capability, which is what you have to do from a security perspective. globalyou are a huge business. you have an office in turkey. what does instability mean for your business? >> i told our team, i.e. quade it it to riding a different roller coaster each week as you do not know where the twists and turns are. it is the changing political landscape, the economic shifts, technology

transitions, these are things we have to deal with. loss of life, which is the issue. it is sad. we see tragedy around the world. we take the things going on geopolitically, from the global economic perspective, we assess ations are andment move on. was unfortunate for the european union. they were moving towards trying to create a single market. i think it has a potential to set them back. for us, we do not have operations in the u.k. we used to you -- we use to do business across europe. similarions of that are

to what other countries would see. the currency situation creates challenges. otherwise, we will navigate our way through. we will continue to invest there. emily: i know you normally vote republican. some folks have said he is not some -- donald trump is not someone they can get behind. >> we care about the policies the candidates represent. we are going to focus on the policies, regardless of who gets elected. our business, there are things that are important to us. issues of inclusion, tax reform, immigration reform, all of these things that matter. when i spent time in washington, those are the things we focus on. emily: that is not a yes or no for donald trump.

why not? this country and around the world, there is so much divisiveness. it is important to focus on what can we do to bring people together. that is the most important thing to me. focusing on the policy is where i am going to stay. other folks have said donald trump is not good for innovation or silicon valley. >> once we get through the election, driving job growth and trade,ion, focusing on trade is important. getting tax reform right, all of those things will get at the issue that needs to be dealt with, which is driving more growth. that is how we are going to list the middle class -- lift the

middle class. emily: do you think it is not your place to take a side publicly? expect we arees going to work on the things they care about. every person has the right to feel the way they feel about whichever candidate they support. cisco, employees support either candidate. represent the bigger issues important to our employee base and our business. emily: our exclusive interview with chuck robbins. tesla wants to expand into utility. musk's master plan lived up to the hype? ♪

emily: we saw the release of a master plan from tesla ceo elon musk.

it is following a post he wrote laid out a which he plan to put tesla in the path of a vehicle revolution. teen.ke with james our these vehicles going to get made? >> they may get made at some point. it does not seem to be the point of this plan. if you can't trust it with the plan released 10 years ago, that was a plan. gadgetld an expensive and use the money to build a cheaper one and that is a standard thing. this one is wide ranging. it is environmentalist escapism.

region --details his his reason for why tesla should buy solar city. tesla becoming a one-stop shop roof you can buy solar panels and your solar powered tesla. it is exciting and audacious. there are no details on how he would fund this or do this. what is your take? we did not expect to have details. he outlined a broadvision. he has done it again. we think we do when about what the auto industry could look like. , the biggest question is the 2006 plan is still incomplete.

there is quite a bit of obstacle in the first plan to overcome before we can talk about disrupting and dislodging a variety of other industries. emily: there is an investigation into the autopilot. somebody has died. at some point the autopilot will be safer than the average. how big of an issue is this autopilot? >> the fact he talked about it a lot speaks to that. the fact up front he was talking about justifying the integration of the solar panels business with the car business, that was

featured heavily. the release of this plan is that to head off criticism has been laid out in the company over the past month or so. you have a consumer base that loves their teslas. customers are obsessed with their cars. would tesla be better off as a private company? >> may be they wish they could do that. you can raise a lot of money outside of the public eye. higherrices are still than it was before they announced the deal. the consumer base is a very investors.base among you would need to see something go wrong with the product for that to come to question. emily: would you agree?

some said it was ridiculous to merge with solar city. i do not necessarily think it aans people have given elon blanket pass. we are in the middle of a bifurcated system. they will hit an aggressive and impressive model or they will fall short. to bes where you have focused now. if they hit their targets, the solar city transaction is irrelevant. there is more baked into the autopilot business. that is one key reason the stock has held up. coming up, it started

with a razor and a viral video. dollars shave club is being scooped up for $1 billion. we will hear from the start up's first investors. ♪

emily: unilever is scooping up dollars shave club. terms of the deal were not disclosed. dollar shave club is a direct to consumer model. $200 on track to post million in sales this year. we spoke to an early investor in dollars shave.

david, you got 10 times return on this investment. they prove they can compete with gillette and schick. what made them successful in a veryt where there were established incumbents? >> there are a lot of e-commerce companies online, but dollars shave is special. they have extremely high loyalty. they were disruptive going after the razor company because they had a great value play. produced an incumbent killer. it is growing steadily. a special company, different from other commerce stories. what do you make of unilever

buying a shaving company? >> it is a big deal. that that requires huge conviction. it takes unilever into the u.s. and into a new market. it gives them a tremendous digital skills talent and assets. it will be the shape of things to come. you think more big buys are coming? around the place. we have seen large deals from europe and asian buyers. what we are going to see is the theany's that need to make transformations, they will have to go for assets, where they cannot just build themselves. a lot of investors did not want to invest in the company. tell me about the pitch and what

might have turned investors off. to have low multiples and does not attract as much capital. low turn company with rates. it is super strategic. what we have going on is a decline in physical retail. have an over dependency on that brand spending on tv ad, where we shy away from and head towards mobile phones. dollar shave club is excellent at reaching consumers on social media and a company in the direct to consumer business. package gooder companies and many consumer goods companies in general will have to become direct to consumer companies. we are getting this expertise

and it is crucial. it was an easy decision for us because it fit our criteria. emily: i remember when my razors fromred dollar shave. i thought how can this company make money selling razors this cheap, but you refer to it as a full stack consumer company. how does that make it advantageous? this is a company that makes a number of their own products and sell other stuff besides razors. make products, they market them to consumers. creative service agencies or advertising agencies. they acquire customers themselves and service those customers. piece of theevery

technology and every piece of the component to develop technology. a lot of traditional companies are retailers, so they are good at blocking store shelves, but that is a skill that is becoming of decreasing importance. not your typical technology company. do you think dollar shave is a technology company? >> it is technology enabled. every company will have to become technology enabled. they have to go through that transformation. to beggest differences able to go directly to consumers without having to go through retail. they sell through large retailers and they have two challenges. margin doing that and two, you do not know your customer. going to consumers, you know

your margins. we focused in on food that isgy, and industry right for investments. we will hear from a ceo out to prove meat does not have to come from an animal. ♪

is ripe for the picking. food technology is one of six industries ripe for investment. we go into the multibillion dollar industry this week. here is our interview with ethan brown. beyond meet is a vegan start up, aiming to disrupt the global meat industry. peatis is made from protein.- pea

the key is to think about meat not in terms of origin. composition is amino acids, lipids, carbohydrates, lipids and water. those items from nonanimal sources and combined them in the assembly to provide meat from plants. emily: where does the flavor come from? >> it is the reaction of 600 different molecules. the same wayose in so they give you the aroma and the flavor. emily: what is your mission? to get people to eat more plants? around building more sustainable meats. class worth its salt will eliminate the bottleneck.

we begin consuming meat that has to come from an animal and that to createficient way meats. meat from plants. by doing so, you can provide something healthy and sustainable. is the product what it is, is it something you are going to constantly be tweaking or changing? >> we have a relentless focus on the burger we are seeking to replicate. every year, we make it better and better.

emily: you also have a chicken product. tell me about that. >> it is part of this effort to create products consumers are going to associate with the center of the plate. we started with chicken. if you look at the market, you think about what are the products people love to eat but know they should eat less of. people love to eat workers. emily: the chinese government cut meatn to consumption. >> we have our hands full in the u.s.. whole foods has been a great partner. they said we will go into the the response has

been overwhelming. we sold out in an hour. seeas been interesting to how the consumer reacts to having the choice. emily: we have our hands -- tell me about the technology. what is food tech? is it composition of the suit itself? to have donunate thompson. we have all of these phd's, etc.. innovation is good for my iphone, but not necessarily my mouth. that is an important point. people want to even to they are familiar with and not necessarily something high tech. we have to bring a science perspective to this end a culinary perspective to this.

we can realign the proteins we find in plants so they mimic the structure we find in animal muscle. with foodtinuing allergies on the rise, one company believes it has come up with a way to make eating out less stressful. they have created a handheld device to detect gluten levels at the table. >> we are going to test some food. gluten freeosedly coffee cake. we will test it to see if it is. you take a sample of the coffeecake. to take a little of this and put it in the top and twist the cap on.

it in and turn it on and start the test. about 25% of the food at restaurants labeled gluten-free is not. doctors have expressed interest in being able to use this to help their patients understand what food is safer than what is not. it is gluten-free. the luscious. -- delicious. now, the ceo. me we saw how it works. talk to me about the technology and how long it took to develop. >> we have been working on it for three years. we recognized an opportunity to create a way to get information out of the plate and into this device. emily: what is the accuracy? >> we are developing to 99%.

emily: what is the accuracy of restaurants? 25% of the time, labeled gluten-free menu items are coming out as positive for gluten. time, you have a one in four chance of getting sick when you are eating out. it is miscommunication, cross-contamination. kitchens are chaotic. it is hard to know what you are putting in front of someone. talked about the rise of food allergies. where is this going? people are becoming aware of how food affects them. food as medicine. people are demanding more

information on what is in their food and how it affects them. we are validating our technology , comparing our testing methods on what is proper for food testing. there are about 50 million people in the u.s. with sensitivities that need to know what is in their food. their health depends on it. it is a large market, a growing market, a lot of opportunities. this is billions of dollars in terms of market size. nothing like this exists right now. a significant portion. emily: that does it for this edition.

we will bring you the latest in tech throughout the week. tune in, 6:00 p.m. eastern, 3:00 p.m. pacific, for a full analysis. this is bloomberg. ♪

♪ narrator: the challenges facing our world are growing all the time. how do we build stronger economies with equal opportunities for all? how do we build a sustainable world for generations to come? how do we protect our cities and harness the power of technology for our common benefit? humanity has always been good at forward thinking. in this series, using the latest bloomberg research and analysis, we will make sense of the problems of tomorrow,