emily: i am emily chang and this is "the best of bloomberg west," where we bring you all of our top interviews. the company faces the challenge of profitability. lost atsaid to have least $1.2 billion so far this year. what does that say about the business model? tim cook rks five years at the helm of apple, taking a look at his tenure. the front page of the internet is answering your questions, talking to the cofounders of reddit. uber is our lead, making an about-face on its profitability in the u.s. after touting earlier in the year that it made money the company is said to have posted a huge loss in the first six months, as much as $1.2 billion. eric newcomer broke this story. >> uber has a lot of money in the bank. they have a credit line of $2 billion and $1.2 billion in loans. they have the money. it is more when can they turn around their burn rate? it is something they can do with the question is whether it will be as big of a business as it is today if they have to pull back on their losses. emily: where are these losses coming from, china, subsidies? >> definitely subsidies, china m

cory johnson in for emily chang. in the games business.ivision come out with fresh any numbers -- fresh numbers and we will take a look at what is shaping the industry. foreman --o the former eap and our own bloomberg intelligence, mass -- marking permit. , thet's look at zynga number of users has fallen. what do you see their? -- there? >> a big part of the new ceo is part of the story. she just came in from the arts. the rest of the user base, stabilizing the revenue. he delivered on cost cuts and it looks like they are almost all of that. but the user base is still declining. and that is what jobs the topline and bottom line. so they need to get that stabilized. cory: it strikes me that as we look at this, going to zynga, the constitution over -- the cannott turn over there make things easy in terms of working there, either for developers or sales or anything else. >> right, when they are in turn around mode like this, it is inevitable that there will be confusion and changing priorities and whatnot. it seems like zynga likes ea and the

changed anything for us as investors. on brexit, it is too early to know. emily: what about, in silicon valley? following the story like that change the appetite for risk, where you see the implosion of a company that had so much potential? guest: i'm sure it would change it for other people, but not for us. we are focused on our own internal debates. at the investment team meetings, you would know that we have a lot of things we are thinking about internally and what is happening externally, we try not to get overly distracted with that. but overall, people feel more risk today. emily: david sachs you are close friends with, he is pushing back on the idea that zenefits and theranos are in the same boat. are there any lessons to be learned there? guest: similarly, we try to be as lack of consensus and lack of derivative from other people's views when we make investment decisions. you could yield the same as everyone else. so, you cannot get trapped into what other people think and it is very dangerous and seductive at the same time. that said, where risk is priced out of a lot of rounds for the

emily: changing the culture of secrecy, not opening up everything. rk, covering consumer tech, great to you here. mark: thank you so much. emily: on the topic of deals, we started with cutthroat rivals selling on a deal in china. uber leaving the home turf in exchange for $1 billion and a 20% stake in its competitor and tesla looking to be a one stop. those are the confirmed deals waiting regulatory approval. the unconfirmed deals, h.p.e. to sell assets for several billions of dollars and apollo looking to scoop up the i.t. company for $3.5 cording to reuters. shares went up 1% at one point in friday trading. where do we stand compared to a record breaking 2015. joining us with more, the head of u.s. tech deals, it feels like a record year? is it really? how does it stand up compared to last? >> thanks for having me on the show. in terms of where we're at so far this year, we are on pace with last year's record. we have $125 billion in announced transactions through the second quarter and then just in the past week in terms of amounts, -- announced, $

i am emily chang.for driverless cars is heating up with automakers in detroit embracing innovative technologies from silicon valley, including self driving cars connected cars and smart , sensors. but one major question still remains. what are the rules? when we get that? who is at fault if something goes wrong? the transportation secretary anthony foxx announced today that he intends to publish driverless car guidelines this summer. we sat down with secretary fox for an exclusive interview. take a listen. secretary foxx: look, we are at the early stages of a revolution in transportation technology. and piloting these automobiles in real time is going to be part of how we learn how to make them even safer overtime. we're working on guidance through our department that will also, i think, help the industry understand what we are going to expect from a safety standpoint. this is a burgeoning area, and we are going to work hard to make sure everyone is safe. emily: so i know you said now that you are goin

♪ emily: i am emily chang and this is "best of bloomberg west."libaba istion at starting to pay off and we will hear from the cofounder about the push into cloud and media streaming. the lay of the land at disney and who better to hear from then bob iger. e-commerce war, acquisition of jet.com give it enough ammo to challenge amazon? diversification is paying off for alibaba, driving revenue up 59% in the latest quarter in the main e-commerce business is holding up in the face of a weaker chinese economy. viceoke with the executive chairman and i asked him about the ma strategy and if any mega acquisitions are in the cards. >> if you look at our core operations, $2.5 billion of operating income in our core commerce business and that is growing at 38% year on year. if you look at eps, it is growing at 33%. we did consolidate the twoations of you who -- other companies and we take the long view and despite consolidating these losses, we are generating 61% operating margin.-- operating that gives us the luxury and the resources to invest aggressively

changes anything for us as investors. on brexit, it is too early to know what the effects would be. emilyry closely, what is going on with evaluations. do stories like that change the appetite for risk or you see -- at all, where you see this sort of spectacular implosion of a company that had so much potential? keith: i am sure they change it for other people. not for us though. we tend to be pretty focused on our own. internal debates, through the investment team meetings, we have a lot of things we are thinking about internally, what is happening externally. we try not to get overlie -- overly distracted on that. viewing more risk with diversity but people areviewing more risk with diversity today. emily: i know you are close with david fax who has been pushing back on this idea that you are -- zenefits and theranos are in the same boat. are there any lessons? keith: i think that we similarly try to be as lack of consensus and lack of derivative from other people's views when making investment decisions. if you follow other people's views, you will return the same yield, which are very

collie, emily chang, standing by with the mayor pittsburgh. over to you. emily: thank you. joining us from pittsburgh, thank you for joining us. did your talks with uber start? how did it come together? >> the initial conversations happened almost 18 months ago. travis and his team had been looking for a city that basically create innovation center for autonomous vehicles. advancingen driverless cars in limited areas of the city and over the course of the past few weeks, it took the next level, the ability to: up on your app and be able to use autonomous vehicles as part of your uber experience. why do you want pittsburgh to be the innovator of this? it is exciting but unproven. >> it is but it is not. it has been over a decade since using driverless cars in the city of pittsburgh. uber has been all over the city with it. i got to be the first person to use the vehicle itself, ending a night and having travis's team take me home. there is no difference in the car and at the same time, safety is coming first. we already have a driver in the drivers seat. the technology has b

mark feels is standing by with emily chang intel a lot to -- emily chang. are at two new buildings at board adding to its location. mark, thank you for joining us. how many for itself driving cards -- cars are on the road? >> we will start messed losing a level or via, fully autonomous, it will not have a hearing will title,s pedal or a break and we see the first commercial applications am a a ridesharing service, in major cities. 2021 is where our intent is to launch. modest,start off fairly as we start, you know, signing up customers and also be able to populate some of the cities with his vehicles but we see it growing over time and we see it eating a good business for us in providing a lot of societal benefits or folks. emily: you are doubling your workforce and investing in technology companies. this suggests a more go it alone toroach to -- when it comes self driving cars. >> we asked three important questions when it comes to the development of autonomous equals and a lot of different areas. one is where do we want to play and second is how we want to

i'm emily chang.m has become the place where people post longer and in-depth pieces -- president obama, bill gates and bono are just a few of the people who have used this forum to share their thoughts with the world. the former leader of now bankrupt gawker just posted her thoughts. cofounder ofe medium and twitter, evan williams. i is supposed she posted this on medium because the idea is you can't take it down. on peter thielke versus gawker? is that going too far or fair play? evan: four gawker or peter thiel? emily: either. evan: it's scary for the press. especially if unknown sources of money are fighting you. and of everything gawker did but in general, i'm a fan of freedom of the press. i think it is critical. avail,ely, gawker should but it would be a bad thing if random media sites can be taken out by people who don't like what they say. a question you deal with behind-the-scenes -- what is free speech? what counts as fair? what is going too far? i'm sure when you started blogger, there were

i am emily chang. xiaomi continues to dispute that it is losing ground to local rivals. research released earlier from idc show second quarter smartphone shipments fell 38% in china. huawei and vivo and oppo took more market share. betty liu spoke to hugo barra. hugo: we are seeing a relatively flat year-over-year trajectory. which has to do with supply chain. we are a relatively young company. we have only been around for six years in china, and we are really working on wrapping up our supply chain. -- working on ramping up our supply chain. what's interesting to look at, with our business in china in particular, is demand has never been as high as it is currently. we have seen preorders, pre-bookings for some of our latest flagship devices, at levels that we have never seen before. mi 5, our first flagship launch this year, we got 16 million preregistrations on day one. we launched another large device called the mi max, which on the first day had 15 million preregistrations. the challenge for us is

i'm emily chang. welcome to our special on reddit.the next half hour, we will answer the dozens of questions posted in the last week with topics ranging from work and life balance. but first we have to discuss reddit as a business. from getting rejected by y combinator to convincing the ceo to change his mind. the site hosts over 240 million act of users and 340,000 posts a day, but they believe it can be so much more. joining us now are two of the reddit cofounders. you came back as ceo last year and you came back as strategy officer. you guys have known each other since moving day at uva. you have an together a long time. guest: 15 years. guest: that's a healthy marriage. emily: tell me where you think you have made the most progress and where did the most challenges remain? guest: the biggest thing we have been focused on in the last year is building the team at reddit, getting the team in a position to build and execute all of our dreams. we've rebuilt pretty much every team at reddit and we've shift pped more in last quarter than

i am emily chang.ew weeks back, halo announced a merger with gamblers my taxi, directly targeting uber. just last week, uber's older china business to their arrival. we sat down and asked if there were other markets like china that uber can't crack. >> i don't think i would never say that. the company of that size and scale and depth of funding and the quality of people in execution may have shown will be foolish to make a blanket statement, but clearly, one of the challenges you have operating a global business is how much you do centrally versus locally. one of the things where i think reflects the chinese situation is when you are a local player with local expertise, that can give you an advantage over in terms of size, scale and funding. >> hail is an example, gm investing $500 million in lyf t, how does this layout? do you see consolidation in this industry? >> difficult to know at the end game is. i am extremely surprised if there will be a winner take all environment, where one player ends up ei

emily: i'm emily chang and this is the best of bloomberg west. we will bring you the biggest details on the company's biggest acquisition to date. and it's driverless car pilot in pittsburgh. ford ceo mark fields tells us why he is focusing on a driverless car and doubling down at silicon valley. putting valuations to the test. dropbox meet advisors to discuss an ipl. are they ready? uber users in downtown pittsburgh will be able to summon a self driving car as soon as this month, beating out google, tesla and all the biggest are makers to a mega milestone for the auto industry. getting a self driving ride hailing fleet on the road first. they started with a specialized suv. we sat down with a contributing editor david kirkpatrick. >> uber will be watching the pilot program right now in the next couple of weeks where drivers at random and riders at random will be able to experience this new era. people experiencing it with a test driver and a copilot taking notes. it is very, very early, but it is exciting. i rode in one of these a couple of week

emily: can they? guest: that is to be seen. he goes to the core of whether you can changehat you're [indiscernible] is. you do consumer very well that you do enterprise well. you have to do other things. emily: what are you hearing about how dropbox is doing visa -- vis-a-vis the other countries? they have got it nailed on the consumer side area did -- side. most of those people are not paying anything. guest: absolutely. it is easy to talk about i have lots of users and these users are part of businesses. but to me the core metric is going to be our enterprise cios buying this and sanctioning it within the enterprise and are they paying big money for it? i think when they open up their financials whether it is through an s1 or whatever, i understand they are testing the market. that is what i think the market will be looking at. when dropbox goes ipo, what are you getting, are you getting this newly minted enterprise company or are you getting the consumer company which was successful in the past? that is the question he will have to answer. emily: we talked about a $10 b

change the story. therefore, it probably is going to work. emilybout some of these other deals like verizon and yahoo! and solar city and tesla? which are good deals in which are bad deals? with: let's start bloomberg, it did not look like they would be successful in china. they were bleeding a billion dollars a year. this is clearly a loss relative to the long-term strategy, but if you look at the opportunities that they face it probably the best play they could have had. i look at that is very smart. i think uber's situation is challenging. it appears that the competition is a lot easier into the marketplace than they were originally asserting. getting rid of the distraction of china will help them compete better in the markets where they have stronger positions and opportunities. they will need that. they have addition through subtraction. they've got aol and aol is not if i look at verizonthey've got aol and aol is not going to , change the direction at all. it has helped the management team and feel better about itself. all he does is double d

emily: your company is a competitor. changed.andscape has we have seen the rise of amazon, microsoft, and google stepping up their move into this territory. how has that landscape made for youore difficult guys, dropbox, you guys are more focused on enterprise which drop box has tried to focus more on. but talk to me about the changing times. guest: one of the key things to keep in mind here is -- as we talk about dropbox is where it started and where is -- where it is today. they defined what it was to have cloud storage for a consumer in a premium model. they killed that model and they were wildly successful. i would submit that that has changed significantly because the money here is to be made in the enterprise. just a value security more than anything else. when you look at dropbox they have been a victim of their own success. they have had so much adoption in the enterprise in a row crash and that the term dropbox problem has almost become a definition of dropbox. when you look at the market today and dropbox or box or any

change. to see whereer this can really replicate. and then spending time in other consumer hardware opportunities. emily: like what? called molecule. they will change hundreds of billions of people that have disease or allergy, asthma. so i think this has the potential to be like fitbit, bigger than fitbit. a few others as well. emily: one was in vr. emily:all right, looking forward to finding out what that is. jeff clavier, brian o'malley, really appreciate the conversation. that's it for this edition of "bloomberg west. " i will be sitting out with alibaba chair after earnings. this is bloomberg. ♪ ?c+sv >> oil is on the slide again. u.s. inventories unexpectedly rose to their highest level in at least three decades. there is increasing concern about global growth. rishaad: some central banks may have run out of ammunition. >> of thousands rally in support of turkish democracy. washington must make a decision about its suspected actions. rishaad:

i and emily chang.et's look at the future of transportation now, as the auto industry charges toward connected cars and driver-free roads. not only is over deploying driverless cars to pittsburgh, but singapore is rolling out autonomous taxis in partnership with neutonomy. but as cars become more connected, they become more vulnerable to cyber security threats. i asked u.s. secretary of transportation anthony foxx if automakers are taking the threat seriously. the automakers themselves are doing a lot to make sure the systems are safe. i would like to see the industry do even more together, to make sure that across the system we are getting great safety. emily: but are they doing enough? joining us now from seattle, an withience hd researcher experience in car hacking, craig smith. thank you so much for joining us. your expertise here goes way back. you wrote a car hacker's handbook and you run the car hacking village at defcon. i would like to start, how big is the risk of a malicious hack on cars, and

emily: i'm emily chang and this is "bloomberg west." coming up, reinventing the macbook pro. why tinker now? coinns learned from the breach -- the hong kong exchange crawling back from the brink after a massive attack costs .nvestors $71 million and the magic of early-stage investing -- we will hear how to spot diamonds in the rough. bloomberg's lead -- first report details of a long-awaited up eight to apple's macbook pro line. the new notebooks will be thinner, including touchscreen strip and will have more powerful processors to appeal to video editors and engineers. it has been four years since apple gave the macbook pro this kind of attention. the book would usher in a post pc land. our reporter who broke the news joins us now with more details. great to have you back. what do we know? how are they going to be different? guest: this is a significant refresh to the macbook pro. this version will be quite a bit in her and have some new ports. some of the bigger changes involve the keyboard and track pad. it's going to be a bit larger, which is good for manipulating with th

emily: i'm emily chang and this is "bloomberg west." tesla's tinkering under the with better batteries and an overhaul of autopilot. and we will hear from pittsburgh's mail -- mayor about their pilot uber and how pittsburgh plans to remake itself as a manufacturing hub of the future. and the front page of the internet is answering your questions. we are talking to the cofounders of reddit, covering every thing from ad blocking technology to free speech on the web. first, to our lead -- elon musk model'sbeing up tesla telling investors to expect new versions with more powerful batteries. they can now cover up to 315 miles on a single charge. also appealing to sports car enthusiasts saying the improved model would be up to accelerate to 60 miles an hour zero in 2.5 seconds. here to break down the significance of these new features is david welch from our auto team in detroit. how significant is this announcement? david: what he talked about today is marginal and kind of incremental, but there is some significant marketing news. the first

i'm emily chang.week kicked off with more deals and tech news -- the sale of uber's china business and elon musk's merger of solar city and tesla. what is driving this recent dealmaking?h my cohost is with me, a co-founder of silver lake back in the day. how much more m&a activity will we see? roger: i think we are going to andgnize is when merger acquisition activity rises, it is always a signal the environment is difficult for earnings. fundamentally, you've got europe, not just because of grexit, brexit is almost certainly going to add drag. inngs are not as robust china and if you look at the s&p 500, more than half of the earnings come from the u.s. if you have bad trends in europe and the biggest parts of asia, you have to anticipate margins have probably peaked. there's a lot of analytical support for that notion. against that model, how are people going to keep her stocks ?p to get people to focus less on the current results, and the day is a great way of doing that? i look at linkedin and it'

. ♪ emily: i'm emily chang, and this is "bloomberg west."ts push the gas on into self driving cars. all the detail on the company's biggest acquisition to date and its driverless car pilot in pittsburgh. can apple cut its smart watch free from the iphone? and, 10 centimes up with a new innovator in hollywood. we will speak to spf entertainment about their latest asian backer. first come into our lead. cooper users in downtown pittsburgh will be able to summon a self driving car this month. getting a self driving, right hailing fleet on the road first. uber starting with a specially modified volvo suv's. we know uber bought the self driving trucks start up auto this month for an undisclosed amount. joining us to discuss, r bloomberg contributing editor, who wrote this exclusive story for "bloomberg businessweek." we're also learning a judge has denied uber's settlement with california drivers in the three-year-old lawsuit over whether or not drivers should be treated as employees or independent contractors. it looks like even though uber lost

i am emily chang. in chinese tech as former head of google china. he is head of sin ovation ventures. he joins us from taipei for an exclusive interview where i asked his thoughts on the recent uber deal. take a listen. >> we are focused on several things. one is we are strong believers of artificial intelligence, in changing the future of china's entrepreneurship. artificial intelligence applied to both traditional industries, so making things, areas like insurance, banking, hospitals, schools become more efficient and help users get more value. make more money from investments. get your disease treated more efficaciously. learning more in school, those because china has a massive amount of data that can be mined. we think that is a great way to use ai. we also believe in ai applications and building computers that can see, hear, and understand. a couple of industries we think are very exciting are the securities industry, for commercial, home, and government. we think robotics is very exciting, espec

. ♪ emily: i'm emily chang, and this is "bloomberg west."ber hits the gas on its push into self driving cars. all the detail on the company's biggest acquisition to date and its driverless car pilot in pittsburgh. can apple cut its smart watch free from the iphone? we will bring you a preview of what not to expect from the next generation to be released this fall. and, 10 centimes up with a new innovator in hollywood. we will speak to spf entertainment about their latest asian backer. but first, to our lead. uber users in downtown pittsburgh will be able to summon a self driving car this month. they will beat google, tesla, and all the biggest carmakers in a self to getting driving right hailing fleet on the self driving right hailing fleet on the roads first. the deal is not exclusive. uber bought the self driving truck startup auto this month for an undisclosed amount. joining us now to discuss, our editor,g contributing and one who wrote this exclusive story for "bloomberg businessweek." we're also learning a judge has denied uber's settl

i'm emily chang. about virtual reality -- broadcastingeality startup has raised $80 million with most money coming from asian investors including softbank. broadcast games and make a push into foreign markets. joining us, brad allen. thanks for joining us. you specialize in live, longform vr events like the u.s. open, kentucky derby, coldplay concerts. tell me exactly how it works. we have stereo topic technologyereoscopic that is perfect for virtual reality. me about the fear he behind live events and why virtual reality can make them so much better. live events -- you cannot be and always places at once. whether it is a live sports event, a concert, anything like that. virtual reality, if you have not tried it, you are putting on a pair of -- currently they are goggles, they will become a very lightweight pair of glasses statue will look around, see and feel -- not feel, but you feel like you are there. it is stereoscopic so it is 3-d and everywhere you look, you would feel like you were there in pe

changes anything for us as investors. it is hard to know what the impact is going to be. emilyut in silicon valley, following the story very closely and what is going on with evaluations. i wonder, do stories like that change the appetite for risk or you see this sort of spectacular implosion of a company that had so much potential? >> i'm sure it changes it for other people. not for us though. we tend to be pretty focused on our own. ebates there are a lot of things we are thinking about internally and what is happening externally we try not to get overly distracted on that. more broadly, yes, people are viewing more risk with diversity today. emily: i know you are close with david fax who has been pushing back on this idea that you are in the same boat. are there any lessons? >> i think that we similarly tried to be as lack of consensus and lack of derivative as of the people's views when making investment decisions. if you follow other people's views, you will return the same yield, see you cannot get trapped into what other people think. it is ray dangerous and seductive. r

emily: does it matter if he is on cable news all day long? >> maybe. theink it does changes but what we are starting to see his cable news is starting to react to the lying he is doing. it might blow up in his face a little bit. emily: if you were the cto of hillary clinton's campaign, what would you be doing right now? would you be doing things differently? >> the first thing ever do i would be to hire the current cto. it is such a different campaign. primaries, they really did a good job. seeing what they have done with a candidate, and amazing candidate. they are doing fine. emily: trump is a very different kind of candidate, different opponent than anyone has ever faced. how would you do things differently in light of trump? how would you take himo n? should happen happen today in nevada, where you have hillary clinton talking about what trump really stands for. that is exactly what needs to happen. oftentimes in campaigns, technology is not the answer. the answer is making sure the candidate is getting their message out. emily: we have got 90 days. how do you see the c

emily: i'm emily chang and this is "bloomberg west." coming up reportedly hit the brakes on g.m. chooses to ride solo. more details on the reported takeover rejection ahead. plus, the c.e.o. behind 2015's biggest ipo joins us on the current climate for trading debuts and what he thinks of jack dorsey. asia's massive bet on virtual reality. the bulk of the latest funding round came mostly from china and japan. why asia is buying into j.r. big time. but first, to our lead. lyft has turned down a buyout offer from general motors according to a report from the information. the company is commenting on the story. the report comes two months after lyft hired the banking firm catalyst a move that at the time suggested lyft was open to or even soliciting a sale. g.m. is already an investor in lyft. the car maker paid $500 million for a 9% stake in lyft earlier this year that valued the company at $5.5 billion and gave g.m. a seat on lyft's board. it is not known what price g.m. offered to pay for a potential takeover but this report indicates how serious g.m. could be about establishing

in some places where we think it should change. emilyjust guidelines rather than explicit rules and regulations? secretary foxx: i think there will be rules and regulations to follow, but we are at the beginning point of very very quick dash of a very quick transportation -- it is important that the stakeholders can see where we are headed so they can plan accordingly and more details will be filled in. emily: u.s. investigators are investigating the death of a tesla driver using autopilot at the time. do these features make us safer, and how much safer? secretary foxx: i do, i do think there are technologies that will do better. we had 33,000 deaths on our highways last year and we want to those numbers to go down. autonomous and connected cars can reduce by as much as 80% the fatalities that occur. that is the signal we are sending to the industry. emily: last month you alluded to premarket steps when it comes to self driving technology. what might those entail? secretary foxx: when i would say is the problem we are trying to solve is

emily: changes at boston schools. randy: the new proposal could make the day longer. a civil war soldier back in his rightful place. the ceremony in new england for the forgotten hero after a long track home. emily: the closing ceremony involving some of our favorite athletes. randy: a tornado warning earlier. when i look for solutions, i don't start in washington, and has all the answers.arty you know where i find common-sense ideas? that strengthen our economy. i worked to make childcare more affordable and make it easier to save for college. i've worked across party lines on clean air and energy efficiency efforts... and to strengthen social security and medicare. together, we're making new hampshire and america stronger. i'm kelly ayotte, emily: civil war veteran. now he is finally back home. he served with the 20th maine volunteer inventory -- infantry. he finished escorting his remained a motorcycle across 19 states, dozens gathered for a ceremony to honor his life. >> as a fellow veteran, i believe present, or future. emily: private williams was 78 when he died

emily: i'm emily chang and this is "bloomberg west." the eu hands apple's harshest penalty ever, ordering them to cough up $14 billion. but will the world's richest company pay? is europe putting the tech giant on notice? he's the godfather of online blogging -- ev williams join us on a conversation from everything on the freedom of internet to the future of publishing. and making tech m&a history -- set to close a mega-head deal after it was rubberstamped by chinese regulators. but first to our lead -- european regulators slam apple with a 14.5 lien dollar tax bill, far and away the largest tax penalty in a crackdown on so-called sweetheart deals. in this case, ireland, it's corporate tax rate is the lowest in western europe and has attracted more than 700 u.s. companies to set up shop, including google and facebook. apple employees about 6000 people in ireland but the eu competition commissioner says ireland allowed apple to pay an effective tax rate of 1% on european profits down to .005% in 2014 and that gave apple an unfair advanta

emily: they gone through a big leadership change over the last year. sat down with the new ceo couple of weeks ago who took over for john chambers. he still the executive chairman. there has been a lot of management turnover at the top of cisco. i asked why is that happening. listen to what he had to say. >> we had to move forward and the thing we don't write articles about are all the people who are still here. john developed a tremendous bench and we went through this discussion when i first took the job. any of those individuals and what i asked them for was to commit to three years. several had aspirations to become ceos, and many have become ceos, which on very happy about. but the bench that was created allowed us to build the next-generation leadership team that has put us in a position to execute more effectively in the future. emily: brian, how would you rate the job that chuck robbins is doing so far in terms of filling john chambers legendary shoes? brian: he's done a great job. he is an operations master. if you look at their operating marg

emily: we talked about the u.s., but what is going on globally? >> i do not think it changesfor us as investors. on brexit, it is too early to know the impact. emily: in silicon valley, we have been following the ceremony's story very closely. thatder, do stories like change the appetite for risk it all? are you see the spectacular implosion of a company that had so much potential he potential. >> not for us. we tend to be focused on our own internal debates. if you were in our investment team meeting, a lot of things we're thinking about internally and what is happening externally, we try not to get overly distracted. more broadly, people are more risk-averse. emily: david sachs you are close friends with, he is pushing back on the idea that zenefits and theranos are in the same boat. are there any lessons to be learned there? >> similarly, we try to be as lack of consensus and lack of derivative from other people's views when we make investment decisions. if you follow other people's views, you will yield the same returns, which are mediocre. so, you cannot get trapped into

>> i'm emily chang and this is bloomberg west. we will bring you the biggest details on the company's biggest acquisition to date. -- mark fields tells us why he is doubling down at silicon valley. putting valuations to the test. dropbox discusses an ipo. uber users in downtown pittsburgh will be able to summon a self driving car as soon as this month beating out google, tesla and all the biggest are makers to a mega milestone for the auto industry. a self driving car. they started with a specialized volkswagen. we sat down with a contributing wrote this max who exclusive. >> uber will be watching the pilot program in the next couple of weeks where drivers, at -- riders and random will experience this new era. people experiencing it with a test driver and a copilot taking notes. it is very, very early, but it is exciting. i rode and one of these and it is an experience. on -- you were on the show when we were talking to the founder. what is your take on it? >> it is stunning. impressed. i am not sure i would want to be -- of the p

cory: this is bloomberg west and i am in for emily chang.one step closer to combining two of his companies. although tesla still has to approve the deal, there is nearly $3 billion in debt. smp to warn that they could cut the credit raining. breaking it down for a's is the senior scientist at argonne national laboratories. thank you for joining the show. it is always awesome to be on with you. you, george.ith you have been working on battery technology and you have pointed out that solar is advancing at a faster pace. will battery technology advance as fast? >> you look at the history of solar and it was at the same place that storage is. it was too expensive and the upfront costs were too high for most customers. solarstarted producing cells and it went way down and the new business plans emerged. ther city is one of pioneers. you can get the upfront cost paid and it is painless for the customers. breakingcould be a point that opens up some new horizons. i remember bill gates saying that moore's law works with yours and not bulldozers. when

. ♪ emily: i'm emily chang and this is "bloomberg west." job cuts at cisco.e dive into the latest earnings report and see how the legacy is weathering the changing wind of the networking industry. plus he's the godfather of the internet. we'll talk about who should regulate the web. and my republican lawmakers are putting up a fight. and another blockbuster quarter, will look at whether china is the content king. cisco shares lead, dipping in after hours on news 7%will cut 5500 jobs, about of the workforce. it underscores the company struggled to adapt as the networking industry shifts toward software-based systems and undercuts sales growth. the company's fourth-quarter profits beat estimates at $.62 a share. joining me is cory johnson and on the phone, brian white of drexel hamilton. corey, i will start with you. cisco has had a lot of job cuts over the years. what do you make of these additional numbers? the worst one of things anyone can ever go through, losing a job. in terms of what it means for cisco's business, they've cut a couple thousand workers ev

. ♪ emily: i'm emily chang and this is "bloomberg west."oming up, the escalating e-customers war, will wal-mart's acquisition give it enough ammo to really challenge amazon? the clash of two retail titans for e-commerce supremacy. will apple reveal a new iphone next month, we'll give you a first look at the changes in store for iphone users this fall. and my taxi gets in the front seat with halo. could this alliance in the ride sharing war lead the charge into new territory? halo c.e.o. andrew pinnington joins us to discuss. to our lead, can wal-mart turbocharge its e-commerce business? the big box retailer is hoping to do just that with a $3.3 billion acquisition of a fast growing marketplace. the deal includes $3 billion in cash and $300,000 and wal-mart shares to be paid out over time. it will run wal-mart.com and jet will remain a separate brand. the current head of e-customers will be stepping down. the wal-mart has spent billions of dollars expanding its online operations but trails amazon by a long shot. at the very same type, overal

joining us from o is bloomberg "west" anchor emily chang. great reporting by mark bourbon.this. one of the interesting things will be replacing the volume line. the brightness button. these will now be software that apple could update these buttons in potential update. buttons show you the that you need depending on applications you are using. there is a more advanced graphics processor and there. appeal, especially to videogame users. to offerconsidering inse high-power computers colors. potentially the . really interesting development, especially in light of the fact they'll have not been doing well. pro sales have far and away surpassed the expectations that even apple had. oris this change of policy ? >> macbook sales are up six percent in the past ipad sales are down 23%. when i spoke to the awful cfo after earnings he talked about of the bigger ipad. in general, people are taking longer to upgrade ipads. they are taking up to three years to get a new one. when you look at phones, and upgraded 18 to 24 months. consumer demand for computers like some people were acting.

we asked emily chang about the difficulties facing u.s. companies trying to break into the u.s.10 years ago at least to the playing field was similar. you have a similar search engine, you had similar browsers. nowadays the entire mobile stac is different. learning to play is very different today. it is getting much tougher than ever before. i would make one exception and that pure technology american companies can and should find a chinese partnership. so the technology can at least be used. for the benefit of the users. that is more licensing and technology. not running to consumer products. emily: you see google ever coming back to the country. >> google will have to work harder than the other companies because of the way that it chose to leave. it has an opportunity to pick the least sensitive products. maybe something that is hardware related and doesn't have to do with social networks and user data or censorship. what about the search engine? >> the search engine will be a little difficult. to do pledged not censorship so that will make it difficult to answer for that coun

. ♪ emily: i am emily chang and this is "the best of bloomberg west," where we bring you all of our topr faces the challenge of profitability. uber is said to have lost at least $1.2 billion so far this year. what does that say about the business model? tim cook marks five years at the helm of apple, taking a look at his tenure. the front page of the internet is answering your questions, talking to the cofounders of re