♪ >> i am cory johnson, and this is the "best of bloomberg technology" where we bring you the top interviews from the week in tech. coming up, snap hits the streets with its ipo roadshow and faces investor concerns, the problem with growth ahead. plus, tesla pops the hood, vehicle sales. and our exclusive interview with

arms ceo. snapchat kicked off its roadshow ahead of an ipo. red herring disclosed slowing user engagement and wright's treatment. i think anything at $20 billion, you have to justify the violation. i think they dance around the issue of user growth, alluding to issues of the android. monetization they touched on lightly, but as the story progresses, you will need to see more metrics. we were joined for more. >> we were outside mandarin oriental today trying to grab investors to hear their case. to their point, when asked what was your big takeaway still on

your mind, user group was a lot of what the investor said to us. i heard instagram being called out by investors who point to the stories feature instagram introduced that mimics snapchat. others brought up the new whatsapp feature rollout. yes, snap is pointing to internal issues, like needing to build out on the android platform in non-core markets, but investors to question the competition factor, and it will be on their mind when they are ps.ning com the monetization issue is the euphemism if there ever was one. the of people are using outcome of but not tons of revenue for the app. the underlying

opportunity for snap is around the data and the audience. as you know, they skew to a much younger audience. it is a content creating machine, and tapping in to that and use that data more effectively than their peers is where the opportunity lies. advertising the only real opportunity for these guys in terms of revenue? there's nothing wrong with an advertising-only model. >> there are different ways you can monetize around what you are calling advertising, very targeted marketing, and marketing dollars are getting more segmented, so a larger opportunity will be around to using that data. the valuations here for this is nascar astounding.

-- for this business are outstanding. the most basic concept of is to sell something more for cost, but that is not what snapchat does. did you get a feeling this would be a good business or bad business, but a very high price. >> a few noted that we did see the price come down. they were looking at valuations $30 billion to $35 billion, so expectations have come down as more information about the company has come out, so when you look at where they are spending money, the profitability factor is the next step for them. they talk about that as phase three. phase one was development, phase two is user growth and development, and phase three will be profitability. the biggest cost as their technology infrastructure. there was conversation around that today.

it expects thes cost of infrastructure to it as google declined cloud and amazon compete on pricing. it also says it is open to building its own infrastructure, so of that'll bit of new commentary around that right now , and that is important because that is the bulk of their expenses right now and outpaced revenue. cory: i bet you would have no complaints if any of your investments could go public at 17 time sales. is an awesome number. i think they are banking on monetization and taking advantage of the massive amount of users and content. it is up to them. it is their game to prove that out. it is common for startups to prove that out in the public markets where they feel they can build predictability into their business, and that will be the name of the game. investors care about predictability and being up to demonstrate growth while being able to predict and bill that

predictability into their business. cory: i still think this gross margin issue is a serious one. this negative gross margins over the last year, and the last two bank quarters looked better, but those are quarters where they are dressing up the ipo, so i would discount it. margins are generally horrendous in this business. were not talking operating margins. were not talking to expenditures on the cloud. we are talking about those basic pieces of what they sale. >> it comes back to a couple of different issues. one is the fundamental cost infrastructure. in they have been on a tear terms of users and content growth, and that has forced them to not focus on cost to just yet until they got to its size with a could take advantage of scale and think about creating a competitive dynamic and their own infrastructure.

googler also made a very similar exercise when they first started phenomenal, low cost to enter structure on gross margins over time. u.s. tech giants continue to face regulatory hurdles, and this time it is microsoft. facing european privacy probes for windows 10 even after making changes. regulators from seven countries are concerned that microsoft is failing to meet fundamental privacy requirements. microsoft says it will continue to call operate. still ahead, elon musk delivered a mixed bag amid sprawling vehicle sales, declining gross margins, and a nearly $1 billion cash burn. all the details ahead. all the episodes of bloomberg technology are live streaming on twitter. check us out at @bloombergtechtv , 5:00 on wall street, 2:00 on

the west coast. this is bloomberg. ♪

cory: on the earnings front, hp reporting better demand for computers than printers because they sell computers and printers. , $13 billion for the first fiscal quarter. musk, a mixed bag for the fourth quarter. he says the mass-market model three-car well arrive and the

first ships in july. they plan to spend 2.5 billion dollars by june in capital expenditure. announced jason wheeler is leaving the company after 15 months on the job. here he is on the quarterly call. >> first of all, i would like to cfo jasonhat our wheeler has decided to leave tesla in april. he will pursue opportunities in public policy. .ason will be replaced initialska says production on the mass-market model three electric car are on track for the second half of 2017, but with cash burn accelerating and losses mounting, how long can combine tesla and solarcity go before diluting shareholders.

>> i don't think it is so much of a concern because they are in the capital investment mode and still ramping up production of the model three. gigawill build factories and the solar shingle. if you believe in the story, you want to see them invest capital in the company. cory: i'm not good at math, but if they got $3 billion and they burn through $1 billion a quarter, this is not a pretty story a year from now unless they sell more stock or borrow more money. >> they will probably go back to the capital markets again sometime between the spring in the summer, as they have for the past two years because manufacturing cars is a capital-intensive business, and this is a company in its investment and build out stage. they are ramping up production of the next model come of the

model three. they are still building out their dealer network, and they are ramping up production of the new solar shingles. cory: you mentioned. michael, talk to me about what you see in this quarter for tesla. firstouple of questions, of all, how will have the integrated solarcity and what are the benefits that will come from the integration of solarcity? will they get at costs? with a be able to sell more of the shingles? and the second thing is, some of the other services they are talking about, whether it is ridesharing or autopilot, how quickly are those going to roll out? that is part of what people are looking for, not just the equipment, moving the metal, but other services that will be internet based in technology-based. cory: ivan, what is the biggest risk to the stock? if you look at the stock price of the last year, it is not as exciting if you look at the last

six months or 3-4 months. when you think the preeminent risks is for this business? >> that there would be a softness in sales for the model three and overall softness and all the vehicles. so the risk is the public stops buying teslas, but so far the demand has been strong and delivery amounts have been hampered by production and not demand. cory: let me push back on that. in the last seven quarters, four of them has seen sequential declines from vehicles sold, so isdoes seem the model s still selling, but they sold fewer in the third quarter than the fourth quarter. >> i think the demand and production is still strong, and they are still strong in anticipation of the model three. the model three will be the game changer for them because it moves them from a niche carmaker to a mainstream carmaker, and the number of model threes projected will significantly

exceed those of the x and s together. >> the jury is still out on whether they can sell enough model threes to become profitable. up to now, they have been a luxury car. going forward, the question is whether they can turn to the mass market, especially as the big automakers will be in this business big-time also. >> i do agree. ony: they have lost money every sale. if there are the same net margins for the model three as of model s,, making a lot cars will be bad for them, not good news. >> that math is not correct. they do not lose money on every car. cory: sure they do. $80,000 and for costs $84,000 to make, it's not like that. cory: gross margin, but not the operating margin. and that is capital

investment, so they are not losing money on the sale of the car. if you look at the gross margin on sales for the big automakers, ford and gm, they are trying to get to 10%. the gross margin on the publicly traded retailers like autonation is also 10%. you put that together, that is 20%. tesla is exceeding that because they are the manufacturer and retailer. have a gross margin on the sale of the car of 22%. the losses are coming from the capital investment they are investing in the buildout of each model line and now the model three and the buildout of solarcity's solar shingles. cory: as you mentioned, the models are different, so the cross margin is -- gross margin is affected by that. the operating margin, research and development, marketing costs , that is why the company has never made a penny, so in fact it is not profitable, but will

say they are counting discussions to another day. michael, when you look at this company. are you inspired by with the company makes and what they are doing? or are you discouraged by the continued cash flow losses and operating profit losses as well? round biggest concern or this company is whether or not they will be able to long term charge a premium for their vehicles and whether or not as they expand production they will have enough margin in each vehicle to make money once they take account of their capital investment as well as their individual production selling costs. cory: right, ivan, let me give you the last word. there is so much to chew on this thing. they weres saying, if losing money on the actual sale of the car, where the cost to produce the car was greater than the sale price, that would be bad, but it is positive they are investing in r&d, marketing, and the factory, and the giga

factory, because the biggest constraint of the electric car is battery technology, and they have invested in a number of technologies come a battery technology, aluminum welding technology must so if you look at this ramp up, it is not to investr a company money, especially a capital-intensive business like auto manufacturing and not make money for a number of years but demand is still strong for the car. i think there will not be really competition between other electric cars. i think the competition will be between electric cars and gas cars, because still tesla is not really an electric car. it is a high-performance, luxury car that happens to have an electric drivetrain, so i think people looking at the andormance in the luxury technology features is what is driving the purchases. cory: coming up, cisco chairman puts his weight behind a company that divides phone security.

why voice fraud is going to attend billion problem just in the u.s. this is bloomberg. ♪

cory: another twist in the insider trading case of billy walters. made $43 allege he million on inside information, and they will have to show he had a history of trading in apple in 2013. prosecutors have yes to reveal the details, but walters was indicted last year for trading fed to him by tom davis. the plans presented for an new ring-shaped campus, the last public event before his death, but now apple says it will now start moving and plays that facility in april. the opening day had been set for 2015, but apple face budget overruns and delays.

hit ast is said to have much as $5 billion, but a 1000 seat auditorium in the building will be named after steve jobs. business, liens of phone calls, billions of dollars, stock transfers, product purchases, but also one of the fastest growing forms of cybercrime. pin drop is fighting phone fraud. we spoke to cisco chairman john chambers and the ceo of pin drop. the business where they are asking you questions to identify yourself is a really bad idea. one, because it frustrates you. it doesn't catch very much fraud. right now in the u.s. alone, they are losing $10 billion to --ce fraud, and even more so yeah, $10 billion a year, because every single call, when

we started the company, one in every 2000 calls was fraudulent, now it is one in every 900, so there are so many calls coming into these call centers because what they have realized is that people secure the online and physical side, it is the easy thing to pick up a phone and get them to do your bidding. these call centers are about a customer service, so the not catching the fraud. all these questions are addition $12.8in billion asking people stupid questions. cory: how big is this business? john: it is big in terms of the opportunity. you think about the $22 billion being spent and fraud or fraud prevention, and it upsets customers. you think what the real takeaway is good it will become a digital .orld

this is the company that would lead in security and authentication, so it's not just about how you prevent fraud. they detect 80% of fraud calls with less than 1% false positives. almost every major security breach you read about, 61% started with the a voice call into the company. cory: i would imagine your jobs is to create jobs at penn drop, but take calls away from the call centers. >> it empowers call-center agents to do their job better. they are treating everyone who comes to them like a criminal, so now for 99% of the calls they can treat you with a wonderful customer experience, and for the 1% that is not good, they can treat those fraudsters. if you have a wonderful customer experience, you will call back with your smart phone or your standard phone, and when you're making all of those calls because you make those calls when you really are in need of

something by giving people a great customers experience, you will get them to come back to over and over again, which means more jobs. cory: how many times have you been to the white house in your life? probably 30 or 40. cory: that's what i figured. you know how that plays works better than any other ceo and silicon valley. i wonder what you make of the trump administration and the approach to business. john: let me first say that when you set a goal 4% gdp growth and a goal of 25 million to 30 million jobs, attainable. the role models are india and france. the prime minister of india is focused on 1.1 million jobs a month, growing at 7% gdp, and he thinks he can grow at 10%, that means the per capita income doubles every 10 years.

to it halfocus cisco years ago, they relied and digitized in the country. guest what was the top venture capital investment location in europe all last year? >> it was france. the large companies will shed jobs unfortunately around the world, so all job growth will be from the startups, and instead and 35g 90 on the nasdaq on the stock exchange, we need to do three to five times that to get the growth we need. like thisy companies are creating jobs. it will be a job creator for the future and a great investor when it goes public. cory: we shouldn't be talking about carrier and forward and united technologies -- ford and united technologies. >> i think it is important to retain the jobs we got and i think the administration is right and that in doing a good job on it, but in terms of

creating 25 million new jobs, all startups. i'm talking to the ypo group once year at their meeting in vancouver, and it will be all about their job growth good when you are looking at startups, growing 100% and number of people per year, that is what we have to do at a larger magnitude going ford. he said an audacious goal, and then you think about how to make it happen what is fun for me is , a greatadvisor industry where they should leave their industry in terms -- but also their ability to go through the transitions good now you're talking about voice going digital, and what this company is positioning themselves to do in terms of security and authentication is really exciting. cory: coming up, our exclusive interview with arm's ceo simon segars next. and if you like bloomberg news,

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the "bestome back to of bloomberg technology". i'm cory johnson. apple is weaning itself from developers and developing its own chips that use technology from arm holdings. sells andnductor firm licenses to dozens of company, but also qualcomm and samsung. for $32 lot by softbank billion last year. we spoke with the ceo simon segars. simon: we are still focused, working with our partners, developing next generation sorts ofy used in all devices from smartphones to

microcontrollers and washing machines, so it is business as usual for us. cory: what about the other ways? what is different? we are now to think in a much longer term about investments we make in new emerging trends for technology, how they're being used, and spend more time thinking about long-term strategy than we could before, so it is business as usual in terms of execution, but that howarallel with people will use technology and what that will mean. cory: president trump took notice of it. i wonder what that means for arm. does arm end up working with other semiconductor firms? simon: there are some operating companies they have.

typically those investments i've been things which have helped grow the business as a whole, so my expectation is that money will be put to work in a fund that will return value for investors in it. it will be an technologies around the kind of things we do. cory: over the last 10 years have captured the tiger by the tail when it comes to smartphones. the business has really grown. what do you see happening to the smartphone business right now? simon: from a fall you in perspective of handsets, the growth rates have tailed off, but there is still a lot of innovation within handsets. the computer performance is going up year after year. frome a few years away five g technology, which will enable higher data rates. cory: what is your expectation timing there? or or 2021.

that will ignite new use cases, how people are using phones, applications and will keep the whole industry innovating. cory: as you look at this business as it grows, do expect --intel for example has made commentary around the internet of things appeared i wonder if you see that is a necessary thing to jumpstart. we are seeing longer between the sales of pcs, declining tablet sales, longer time between the refresh of the smartphone. simon: when i talk to our customers and the ceos of semiconductor companies we work with, there are many who look at the growth in cars and iot as big drivers for their business in the future. there are industries maturing, other things taking off. right now, those two sectors particularly stand out as once driving innovation and future revenue growth. cory: looking beyond, you talked

about the relationship with apple to what is it like to work with the company like that? simon: as with any egg successful company, they want you to keep executing. they want you to keep investing, and we have many customers like that. cory: when you look at the plans for capital expenditures, going down to a unimaginably thin wafer size. -- significant is a customer of ours and we are working on deploying that technology. ,here are the other licensees and we've been working with them for some time on that. the overall semiconductor industry is pushing towards

advanced geometries proved that will enable more performance, better energy efficiency, so we can all have more and more powerful devices. ceo simon was arm's segars. verizon continues to try to take the lead and 5g. they will test service and 11 markets in the first half of this year. those faster connections will help verizon offer internet competing with internet providers. they will spend the collective $200 billion. still ahead, we sit down with square cfo and the company strong q4 earnings. last year, the gaming business solve $30 billion in m&a and investment. it is a big business, but how did these companies make money? we will dig into the economics of videogame apps, next. this is bloomberg. ♪

cory: square earning shot up

after reporting earnings this week. for jack dorsey, it is a part-time job. ,quare has seen some big gains sales of 20%, payment volume up 30%, but how long can the company grow like this? it has been great to see the company go from how to take a payment into a complex managed payment solution. i was thinking about was the commerce platform. we started to build new products on top the play to our unique advantages. square capital place to the fact that we have access to data that allows us to manage risk, and that is just one part of the cohort of products that comprise a quarter of our adjusted revenue, so lots more to do there. we can can continue to grow the

core, move upmarket, starting to shift from off-line to online for our platform, and we can take all of that and go global. it is exciting to see how that will drive growth. >> i think investors are excited about that whitespace that shows more profitability, and we saw a huge jump in ebitda margins. how much higher can that number grow, and where would most of that increase in profitability come from? we want to be mindful of growing the business, but also expanding margins. it is clear we think about a mid-single digit market expansion pace from here. that is the right balance of taking back into the business the other prophets we are throwing off and invest them into growth. in terms of where that margin expansion will come from, will be topline outperformance, like

the quarter where we be top ended guidance by $7 million here that clearly impacts profitability, but beyond that, we want to get more efficient, g&a. we did a big build, but we don't need to continue building at that same pace. automation is important for our sellers, and we want to put that into the products that they use, but it is very important internally to use automation to make ourselves more efficient. machine learning in risk of, or use machine learning and ai in sales and support, so lots of opportunity there, and i think that will grow the margin profile. >> you mention margin expansion is a key point. you are in japan, australia, the u.s., and canada, but still largely a domestic business, the vast majority of revenue from the u.s., so what can we expect the pace of global expansion to

look like? >> for us there have been huge opportunities in the u.s. it when you are a business that thatafter commerce -- said, i huge stride forward ofrsquare and 2016, the end 2015, was getting our hardware platform to a point where we could globally accept payments. what i mean by that is taking chip and contactless transactions. we did not have to have it here in order to be able to take electronic payments, but now that we have shifted to a world of chips, and more importantly getting the u.s. contactless, we have not created hardware that unlocks the rest of the world. my hope that will help us move faster. >> as you are evaluating m&a opportunities for international expansion, how much of that is

going into consideration for accelerating expansion? sarah: we have historically not done a lot of m&a. when we have done it it has been to drive a product beyond where the current roadmap is. have a roadmap for how to provide a commerce platform for restaurants, but we will leave ahead and also do deliveries because deliveries will bring more sales. has been about&a adding talent into the mix, typical of what a silicon valley would do to get great day to engineers and scientists, so i think it will be more of the same for us. i don't one to say that we would not use m&a to do something really big. we are always looking and if something came away that accelerated the business, we would absolutely do it. just right now i don't see something on that scale on the horizon. >> square was one of the many tech companies this month to

sign a legal document condemning president trump's executive order. you foresee developing legislation in this area potentially impacting your sellers, which are very diverse? brief was amicus important for us to sign for it we feel strongly that immigrants have brought a lot to this country, and in particular to our sellers. these are the people who found businesses, work at the businesses, and small businesses are the lifeblood of an economy. cory: that was squares cfo sarah friar. we also talked about fitbit earnings on wednesday. revenues were down 19% year over year. already dropped the bomb last month when they pre-announced they would miss earnings and be cutting 6% of the work force. as you said, revenue dropped him was 20%. they are ready have the bar set

very low, but even then, they barely met those expectations and missed on some metrics as well. their outlook also was not pretty. decline in sales, but they still seem to command market share. when you see a company like this that is sales down absolutely, but margins are still very strong. competitors are leaving the space, maybe leaving them or runway, and i wonder what you make of that when you look at this business with declining revenues, sustainable margins, and competitors falling away? >> first of all, the product is superior because it is simple to people want to use it because it is simple. second of all, like every other consumer electronics company, they need a next wave of innovation. when they come out with a new product they give consumers a signal it is time to buy, so i do expect as other competitors have gone away and the more expensive wearables are really not as interesting to consumers,

i think this company will continue to grow and go back to a growth trajectory. cory: what, how are they feeling on the call? are you sensing that optimism? call is still ongoing. they are saying they were look to new form factors. they need to innovate, come out with new products. consumersshowed that are looking for something that is a bit more sophisticated, and that is why they are focused on integrating some of their acquisitions so that they can come out with a new product to generate more demand. another interesting part was james park it again emphasized the push for his digital health strategy. they want to continue to integrate into the health care community. he gave an example of their data feeding into a glucose monitor fed in data is being that. he was a get more revenue from those types of partnerships. coming up, how trump's

visa changes could affect the biotech industry. and a reminder that all episodes of bloomberg technology or live streaming on twitter. you can see those if you go to @bloombergtechtv weekdays at 5:00 back east, or 2:00 here on the west coast. this is bloomberg. ♪

cory: mccain gaming industry gearing up for next week's gamers developers conference in san francisco. it is a big is this, already billion dollars in investment and m&a last year, but how does the business really work? >> it is about building a good game, but it is not just enough to build a good game, and that is why you have seen a lot of

game companies fail. ,hey have not have that pull that reason. at the same time it is a good game, longevity, multiple love levels that keep coming back could it is about the install, and about the longevity. fee: there is a license there, and the license fee is surely not small. come back toin unit cost, where are the economics in this? where does the revenue come from? how does the repeat revenue happen? building athe key to great game, unlocking the monetize a bowl units. in their case it is about the virtual goods. in the most cases it is about virtual goods, and that's why games are the largest revenue driver within the app store for apple. cory: is that also a whale business where you have 5% of

the users paying 90% of the revenues? >> yes. there are few consumer media companies that don't generate their business from that top .0%, 20%, and we focus on that you will see that as we shift to the next platform, which will eventually be virtual reality. cory: i want to find the person g $50,000 a year playing the kim kardashian game. what is the special sauce? because very special, some of these licenses are extremely viable. in the marvel's case, obviously. in the transformers case, they are. cory: you have locked that down. >> we have locked that down within certain ip. there have been fantastic games

that don't have third party ip and can be incredibly valuable. it is just that right now -- cory: with candy crush? >> that's right. there is a huge caution trace isncentration and difficult to penetrate that now because games are such a competitive ad sales market. it is highly expensive to buy those in stalls. cory: as a venture capital is come you find these guys can make an investment, inspired the genius they come with naturally, but how do you try to find other investments of this sort? >> gaming is an incredible difficult market. is a storyry inside a story inside a pivot. the relationship with the entrepreneur was incredibly important, but that level of trust we had with the ceo was

frankly a key part in continuing all with the company and tell they reached that successful point, which they did. in gaming generally, it is incredibly difficult from the predict success, which is why game companies only get venture financed once they have reached some sort of success metric. it is the movie business, not one that dies off after a weekend of success. it can continue for years and years and years. cory: do you need therefore to sort of use venture capital for spray and pray, lots of releases because you don't know which one will take? , stickou have to focus with a couple of games to really make sure they are good because they need to be that much better than the average game? changed inwhat is

the market of the last several years as the app store has become concentrated and congested. you really need those big, big heavy franchises, marvel, candy crush, any of the ones the top 10. cory: kim kardashian. >> what ever. so it is about building the megahit, not assuming you can build 10 ok hits, because you can't afford anymore -- cory: is that because development costs have gotten so high? gottenlopment costs have high, and install costs have isn so high, and that how the ip can bump you up because that property, the marvel property, the transformers property is so exciting. now to biotech, from tiny startups to global giants, 324 billion dollar industry in the

u.s., and they are increasingly alarmed on donald trump plans to restrict immigration. ♪ to crank out discoveries, u.s. biotech companies rely on the world's best scientists and researchers. >> there is confusion and uncertainty, and confusion and uncertainty are never good. >> the co-find it at lab central, a biotech incubator in cambridge, massachusetts. >> i came here from germany. i am a green card holder. we found that 73% of the companies here were founded or cofounded i immigrants. sicily ofsquare-foot shared lab space designed as a launchpad for startups. ,> they work on new technology new drugs to cure diseases, or medical devices, or could be tools for use in the laboratory.

♪ threatened by the trump's controversial immigration policies, including possible changes to visa programs. >> i would direct the department of labor to investigate all abuses of visa programs that undercut the american worker. the h-1b program allows tens of thousands of employees from abroad to work and specialty positions in the u.s.. more than 20,000 pieces were granted in the medicine, health and life science occupations in 2014. it is often one of the main routes by which employers sponsor staff from outside the u.s.. staff like this man, developing a vaccine out of a company based at lab central. >> there are immigrants in the biotech industry and field, and having all these additional stumbling blocks would really take them back and really put a

stop to some of these key important talent that we need to bring here that would accelerate some of these life-saving medicines. >> for many, it is personal. one employee at lab central, british citizen come and a daughter of a pakistani immigrant. have a personal level, we four children. we do worry about them in their future in the u.s. with all that is happening at the minute. it is just an immigration ban, but where does it end? how far is is going to go? ♪ u.s. bioscience firms employ 1.7 million people. that includes a rising number of foreigners. executive order seen by bloomberg reads "out of these of programs and be administered in a manner that prioritizes the protection of american workers." >> i think it is really a sign

that you are going elsewhere to try to recruit somebody because you cannot find someone to fill this job at your company. risk't think it is a real that this tool will be used to undercut wages in this country at all. ♪ cory: chief executives of global drug companies u.s. operations .riticize for the restrictions astrazeneca ceo told bloomberg that science does not have borders, so anything that gets in the way does not help. >> this has been a big driver for our success in the past. it is important that they maintain that. ♪ cory: that does it for this edition of the "best of bloomberg technology". we will bring you the latest in tech throughout the week, and what a big week i had. the snap ipo, looking beyond the

headlines. tune in at 5:00 each day on the east coast, 2:00 in the west coast, six clock a.m. in hong kong. that is it for now. this is bloomberg. ♪

carol: welcome to "bloomberg businessweek". i am carol massar. oliver: i am oliver renick. issue, thehis week's ukrainian oligarch wanted on the u.s. bribery charge. oliver: d.c.'s top lawyer has a long road ahead of him. carol: is the chicken industry rigged? oliver: all that ahead on "bloomberg businessweek". ♪ carol: we are with the editor in chief megan murphy. you guys look at toshiba, a once mighty company, if you will in japan, but it has come undone. megan: