ceo chuck robbins spoke earlier on "bloomberg ." >> if you normalize out the box business we soldven months ago, our revenues were up 2% and we had revenue earnings of 9% per share. i was pleased with the quarter. we had lots of areas that performed very well for us in in interesting macro environment. as we look at the transition we're going to as a company, the first thing we have to remember is that almost 75% of the engineering resources here at cisco our software engineers and have been for a long time. what we are working on now is, how to retrieve evolve our offers to customers? how do we evolve the way we package our information and present it in a waiting like to procure it? more as a service, more as a prescription, and a data point i gave her the fourth quarter-- was for the fourth quarter up 33%, so we are making a transition. i am pleased with where we are. >> where are you in the transition? i do what point will theom the e diminishing growth from the old? chuck: if you look at what we have done in our security portfolio that was up 16% third consecutive quarter with

ceo chuck robbins will be joining us. onathan. jon: futures lower marginally. in europe, a marginal positive sign of the ftse 100. on the dax, up by about a third. in the fx market, the sanction is pretty clear. earlier in the section, a weaker dollar story. not as aggressive as earlier, down by about 2/10 of 1%. the date movies on the cable rate. precise.o be a big surprise on u.k. retail sales really driving sterling stronger. market, crudety had a 50 handled very briefly. well. firm as to wrap things up in the bond market, coming in a three basis points. the focus in new york and the global markets, the front end of the treasury curve which get the touch off the federal reserve. the debate, that continues. alix: we've got a lot of m&a and some earnings. cardinal financial and united bancshares stock is relatively unchanged but they are buying -- $912 million, $2011 $27.69 per share. you have regulation and low rates, thence -- you have more mergers. walmart, same-store sales will grow by one to one .nd a half percent th

emily: don't miss chuck robbins on bloomberg tomorrow and bloomberg radio with cory johnson.s uber actually worth its monster valuation? one expert says no. he crunched the numbers and says they should be valued at south of $30 billion, less than half of the 62 $.5 billion valuation it currently has. the main reason he says is profit. he says disruption is easy but making money off disruption is difficult. ridesharing company still have not figured out a way to convert revenues into profit. he said that other big public market players could still jump in as challengers to the company. the google evaluation is higher than 80% of the company's in the s&p 500, higher than gm and ford. coming up, a long simmering but highly controversial question, whose job should it be to govern the internet? we will discuss with one of the web's founding fathers, next. this is bloomberg. ♪ emily: who controls the internet? until now the job has largely belong to the u.s. government, specifically, the commerce department. the obama administration organized a long planned move to shift it to a st

eastern time, we'll talk to chuck robbins about the quarter, layoff and macro. the color of the quarter is about the enterprise macro environment and see if that remains the case today. >> government spending all the rest, be they all come into play. all right. coming up when we come back, women's golf getting ready to tee off at the olympics. we'll head to rio for a look at that next. >>> women's golf teeing off in rio. the olympics and joins us now. good morning, andrew. >> that is right. carl, the best female golfers in the world hit the greens today in rio. teeing off for gold. one of the biggest stars competing lexi thompson. we caught up with her not long after she arrived in rio and despite elite players skipping the games this is an opportunity she would not want to miss. >> i was a little bit surprised but, you know, it's their decision, not mine. this has been a dream of mine. any time i can represent my country it's the highest honor i can have. i wasn't passing up an opportunity to say i'm an olympian. >> thompson, who in 2011 became the youngest win

joining us is the ceo of cisco chuck robbins who joins us from san jose.morning to you. >> hey, carl, great to be here. hope you're doing well. >> yes. it's nice to have you. i'm sure jim and david wish they were here. talk about the quarter. margin performance was, obviously, strong. you got deferred revenue growth. you got a lack of big warnings on macro. some investors wonder why the guidance wasn't even better? >> well, carl, you know we are proud of not only the quarter but the year we just completed. we had growth of 3% on the year in q4. we had 2% growth and we had 9% nongap e ps growth which was a record for us and finished the year at 2.36. we had a -- we're very proud of what our teams have done and frankly very volatility environment throughout the year. as we looked at q1, you know, what we really saw was a weakening of demand in q 4 in our service provider segment around the world and emerging markets. those two countries were negative this past quarter, but the rest of our business, enterprise, commercial, public sector and developed countrie

chuck robbins has been working to shift the focus from hardware to software products. report earnings wednesday. 24 hours a day, powered by 2600 journalists in 120 countries. haidi: china has taken another step towards opening its markets to the world with news of a hong stock operation opening and four months. we spoke with charles lee about the significance of the link and how it could change the landscape of chinese markets. >> the long-term significance of 220connection, you have trillion u.s. dollars in chinese banks. the stock market is about 5 trillion u.s. dollars. that relationship is not right. it should be flipped. a large amount of money in china is currently in the banking system. in 20 years, even if it does not grow, there will be 10 trillion moving into equity or bonds. a big portion is going into international markets. we are talking about up to $2 trillion u.s. potentially being deployed globally. but for people to carry the money out of china, that is something that will not be on a large scale. how to invest in china but how to invest in other oppor

we will hear from chuck robbins on the company's new focus. china is desperate for workers in one industry in particular. what is the nation doing to increase the number of airline pilots? than fives been more years since the disaster at fukushima and more nations are expanding nuclear energy plants. we will take a look at the quick take. the biggest maker of equipment is cutting 7% of its workforce. vonnie: 5000 positions will be eliminated at cisco. cisco is taking a $700 million charge for the restructuring. says the robbins company is shifting its focus. ck: we are focused on tighter coupling of security into the orchestration and cloud-based management across the portfolio. there is a significant amount of innovation that the teams are working on for the next several quarters as well. it is not that we are ignoring one in favor of another. we just want to make sure our investments are commensurate with our growth opportunities. instead of online networks maintained on their own premises. the world largest food company reported a 3.5% in h

brian, how would you rate the job that chuck robbins is doing so far in terms of filling john chambersegendary shoes? brian: he's done a great job. he is an operations master. if you look at their operating margins is quarter at 31.4%, it was the highest since the second quarter of fiscal 2006. that's what he is known for. great margin numbers this quarter. gross margins for this largely hardware making company or of around 65%. in five of the last seven quarters, gross margins have risen on a year-over-year basis. that shows operational strength and the benefit these layoffs have provided for cisco. emily: do you think these new businesses they are investing in will actually be able to pick up the slack? brian: definitely. if you look at recurring revenue , it's up from 25% a year ago. if you look at deferred revenue and software and subscriptions it was up 33% year over year. over timeould go up for sure. emily: cisco was a bellwether of the technology industry and its loss that iconic status, but what do you see as the place for cisco in the broader picture now? why is cisco still i

and chuck robbins will be on 2:30.berg at a surge online advertising helped the chinese social networkingompany beat analyst estimates. that was enough to beat alibaba on market value. lenovo posted first-quarter profits that exceeded estimates, but that came on the back of cost cuts and asset sales. the ceo expects the smartphone business to turn a corner the shiftiscal year with a toward higher end devices and ramping up of marketing in the u.s. and china. exports fell 14% on the year, the most since 2009. this has made japanese exports less attractive to international biters >> the yen is strengthened about 20% since the start of 2016. that makes exports much more attractive on the global market. some of this is global demand come -- declining. i think we see across the board which is to china, japan's largest trading partner. we saw 20 -- 12% year-over-year. we saw 11% to u.s. and more than 6% to the you. a lot of the decline in exports ships, steel.s, a lot of industries are seeing this. francine: we have the doj. it comes on the afternoon we have the fed. how vulnerable are they to

chuck robbins at 2:30 p.m. london time, on "bloomberg ," tomorrow.argely negative with the yield spread he and the s&p picking up. vonnie: they say they don't think it tells us much about the september meeting. markets unchanged, feeling pretty much the same way. this is bloomberg. ♪ oliver: it is 3:00 p.m. in new york. vonnie: welcome to bloomberg markets. -- that is the takeaway from the july fed minutes. ,liver: stocks bouncing around more or less flat on the day. then, opening next week. steve on thisrom new project. we are one hour from the close of trading in one hour from the fomc minutes.

. >> i think chuck robbins is doing a great job. we're keeping it that way. think you should too. let's go to norman in pennsylvania. norman. >> caller: jim, boo-yah, nice to have you back. i'm calling about viacom. >> it is a spec that doesn't have good fundamentals. cvs has been run ably, so i would say -- not the drugstore. gwen. >> caller: thank you. we need you! we need you! >> you're too kind. luv. i'm concerned about the zika, terrorists, other potentially negative factors, what do you advise? >> if you want an airline, you've got the right airline, southwest is the best. i think the group is in a real bad way, but i think southwest will thrive. i do brief the railroads are way up to the upside. now we have flash crash rules. verizon and at and t and dominion and pepsico. this is the world we live in now. so we might as well have a shopping list ready, don't you think? on mad tonight, from calvin to tommy to vanheusen. can pvh remain the star of the runway? then what feddy has to say on workday, changing the business of doing business. could this earnings report be the late

in the s&p are target, lowe's and staples, all earnings related stories and the interview with chuck robbinssco is weighing on the dow and the biggest loser in percentage terms. >> this is a time when cisco could be a bell weather for a large tech, particularly enterprise, with the cuts, even though it is not recently. >> we'll see if finally for the first time in weeks back to back losses for the major averages. for now, over to the judge and the half. ♪ >> carl, thanks so much. welcome to "halftime report." i'm scott wapner. apple rally, that stock up 10% over the last month and word this week that warren buffett berkshire hathaway buying more and his stake worth $1.5 billion and raising the question whether the biggest company on earth is truly back and a must-own name fon your money. with us for the hour is steven wise, josh brown and jon and pete najarian. and berkshire is loading up and others are getting out and who is right.

chuck robbins will be joining "squawk on the street."just a little later this morning. let's look at futures. we've been moderately lower through midweost of the morning. s&p futures off by 2.5. and the nasdaq off close to nine. let's head back to rio -- or joe. i'm stilling your lines. >> that's okay. i do love -- you know, i miss andrew. and i was gone for two weeks. i haven't seen him since before then. andrew, it's me. >> nice to see you, sir. >> hey, buddy. what's going on? >> we continue to follow the developments of what is the biggest story here in rio. members of the u.s. swim team being questioned about their accounts of the reported robbery over the weekend. ryan lochte who has become the face of it tells matt lauer he stands by his account of what happened. meanwhile swimmers jack conger and gunnar bentz, they were detained last night shortly before their flight was scheduled to depart rio. they're released but will remain to stay available to local authorities. then in another development overnight, great britain reporting o

each of those years. 2015 it was a break as new ceo chuck robbins was getting acclimated.rn is reporting that this round of play-offs could be a lot more severe than what cisco did from 2011 to 2014. it reports its earnings after the closing bell today. and if there are any layoffs, cisco is not commenting on this story right now, we'll likely find out at that time. a lot of earnings are coming in for the resale sector and not a lot of them are looking good. target and lowe's, each getting hit hard on their respective results. target did not meet expectations for the future couple of quarters. it lowered its guidance, says it struggled to get shoppers into its stores in the 2nd quarter. says that there's a trend with shoppers now preferring experiences over shopping. shares in target and lowe's are going down. stock market is lower as a whole. in just a few hours, a transit s some sober cisco shares down 2% in the early going. back to you. >> thank you, jason brooks from kcbs radio. >>> in just a few hours a transit expert tells bay area drivers some sobering news. we'll l

do not miss chuck robbins joining us tomorrow at 9:30 a.m. eastern.ed, those comments are next. this is bloomberg. ♪ alix: i am here in hewlett-packard enterprise green. google, vp, and chief internet advance -- evangelist. don't miss it. jonathan: we are about 11 minutes into the session right here. looking at the equity market performance, losses down about one quarter of 1%. losses over in europe, down about point 5% -- .5%. is not thehere retailers but the commodity complex weighing as the commodity producers on those particular indexes, very quickly, an idea of what is happening, stronger dollar, weaker commodity. yen, cable rate pulling back to 130. some broad-based dollar strength and broad-based commodity weakness. about .9%. about four hours and what are we, 19 minutes away from the fo one c's minutes. a little bit lower again, down a basis point to 1.57%. maybe even more confusion about what the fed may do in september. let's get to the nasdaq. members we do have take in the retail space but we are looking at winners. shares are sharply high

chuck robbins, ceo of cisco checking in on that. melissa: adam, thank you so much for that. ashley? >> shares of cisco have been sliding today. we're going to check that report as more details become available. the company may be planning to lay off 20% of the his workforce that would be roughly a little more than 14,000 employees in the coming weeks. cisco does have a history of summer layoffs, announcing four figure cuts every fourth quarter from 2011 through 2014. so, do we have time quickly to ask the guests on this? jonathan, let me ask you about that, we don't know this is for sure. it has been widely reported, we'll wait for adam to confirm it, if they cut 20% of the workforce, on one hand is it good thing they're cutting down to the core to be lean and mean or does that signal problems? >> unfortunately, ashley, what is bad for main street in this case will be good for wall street. the stock is going to like this. i know it is down a little bit in the after-hours. cisco is one of the old soldiers. it is $30 stock. it was $80 stock in 2000. they have to reformat the company t

. >> and chuck robbins, new qceo, one year on, i would expect him to put that $65 billion to work atpoint. i mean, a transformative acquisition. and that is the risk to that one. i like your call. you made an awesome call in january on wall hart. it was probably about 10%, 15% lower here and i think that is the one target we were just talking about it earlier, when you think about their ability to fix some stock and you think about that dividend and the u.s. domestic exposure, that feels like the owoone to me. >> do you like any of these three? >> target, it's an underperformer. i like the cisco steady eddie approach to it. but you touched on it, does the market have to sit here and perform for these stocks to do well? if you see the market selloff, a cisco in particular, if i see that spend come off the table, i think this one trades down, as well. doesn't matter what the dividend is. >> and you were bearish coming into august. and now that we haven't had that, have we missed that opportunity? >> august still worries me. we're almost through it. so i'll feel a lot better once we're

chuck robbins is the ceo of cisco. he joins the team on "bloomberg 2:30 today.utesral reserve speculated about the rate hike in 2016. we now have the chart of the hour. yousef: leave it to the markets to change things in a dramatic fashion. we were talking about the relative strength index, showing that the em rally that might have been reaching his last phase and the market was overbought. now, put that aside with the latest fed minutes coming in. that is reporting sentiment across the board. all of this chart on your bloomberg. you have the line in blue, your emerging-market currency index. then, the yellow, our benchmark emerging market index. both have been gaining. south african rand, leading those gains on the currency front. we also saw the south korean yuan stabilize, and then have the biggest one-day drop in two months. also, the philippine peso, we had the numbers out that beat expectations. on the whole, the currency index is on track for a 1.7% month to date gain. but the question will be whether they can continue pushing forward in light of the ongo

the ceo chuck robbins will be on bloomberg oh at 2:30 p.m. u.k. time.ent hit a fresh record high in early hong kong trade. it beat analyst expectations. tencent abovee 10 alibaba. company's seo expects its lossmaking smart phone to turn a corner as it shifts toward higher-end devices and reps of marketing in the u.s. and china. fell 14% in exports july, the biggest decline since 2009. japanese exports have been made less attractive to international buyers. is it just down to what is happening with the yen, the data? guest: the yen has a lot to do with it for the yen has strengthened about 20% this year and you pointed to today's move. is making products on the international stage from japan more expensive and weakening the export picture. however, we have seen some ned global weake demand. we have seen almost all the major trading partners, those numbers being off in the past month. they were off more than 12%, to the u.s. more than 11% and to the eu off more than 6% as well. cars,e seen weakness in shipments of steel, and shipping. it is -- we're seein

>> chuck robbins and these guys talk about cutbacks and up to 20% and that is a huge% and it absolutelys, but the focus when they have the earnings is about the services software side of thing and security. that is the transition. keep an eye on that. >> this train is way off the rails. more weak numbers from the hedge fund industry today. >>> kevin o'leary is back after the break to face wise. and the "halftime report" is back after this. om long island , from rochester to the hudson valley, from albany to utica, creative business incentives, infrastructure investment, university partnerships, and the lowest taxes in decades are creating a stronger economy and the right environment in new york state for business to thrive. let us help grow your company's tomorrow- today at business.ny.gov >>> welcome back to the "halftime report." hedge funds feeling the pain after the plans to cut 15% of the work force for jones and now brevin, coming after new data from fhr who tracks funds shows it is up 3% from the end of july and compare that with the s&p and dow jones up 6.5% respectively and kev

ceo chuck robbins says the company is shifting its focus.erfocused on coupling of security into the core of your it we are focused on policy and work as a nation and cloud-based managed and across the entire or folio. there is a significant amount of innovation the teams are working on there, over the next several orders as well. that we are ignoring one in favor of another. we want to make sure investments are commensurate with growth responsibility. corporateore of it customers rely on remote data centers instead of on my networks maintained on their own premises. >> sales grew at the first half of the year at the slowest pace since 2009. food company reported a 3.5% increase in revenue that was slightly less than estimated. there is very little inflation in europe. >> retail sales in the u.k. unexpectedly rose in july and month after they especially voted to leave the european union. british shoppers bought clothing and shoes and the weaker pound lead tourist to buy watches and jewelry. finally, airlines and china are desperate for pilots

they have a new ceo, chuck robbins who came on after john chambers handled that role for two decades.s is a bold move by robinson, he came on about a year ago. the stock is down 1 1/2% at 30.28. of course, they laid off 6,000 plus in 2014 and prior to that as well, another 6,000, so the layoffs continue as they move to software from hardware and when you say cloud computing. that's the wave of the future for the tech companies. >> well said, well said. old line tech shedding jobs. thank you, very much indeed. show me oil for a second. okay? hold on the price of oil. it's 47.57 for our viewers and our satellite radio listeners. larry, come in, please. why this sudden spurt up in the price of oil when there's talk of a crude oil output freeze, it's going away. what have you got on this? >> yeah, it's a good question, stuart. i think what happened, you got a lot of people stuck short this morning. a lot of people warned over the $45 level and then the output freeze come out, a week or so, maybe a little longer ago and a lot of people got stuck short and now pushing to the 48 almost $49 l