Balance growth and reform as they debate the next fiveyear plan. They are expected to target growth. Investors want to know how they will boost it and rein in debt. A single the markets. Hong kong and china are currently closed for lunch. Heres how they were training in the morning session. This is the picture in tokyo plus, Silicon Valley side with apple. Also, microsoft and more. How was the legal fight shaping up . We will bring you the latest area and apple checks out voice controlled gadgets. And what they are planning. But first, Hp Enterprise that shares getting a boost in afterhours trading. Remember, this is the bigger of hp entities for business clients. The Company Forecast profits 49 to . 43 a share. They are perhaps taking that as a sign that they are showing early returns. We have now completed our first full quarter as an independent company, and are off to a strong start. We are a smaller, more focused and Agile Company across a number of fronts. Our partners enjoy our philosophy. Emily joining us now are crawford del prete and Anand Srinivasan from new york. Crawford, i will start with you. You spoke to her before she jumped on the earnings call. What did she have to say. Crawford she will talk a lot about how the company has focused its sales force. They have been able to come for the third consecutive quarter, deal with low revenue. This is a really good sign. When you look at the overall transition in the company, it spins on services. As Services Margins go up, in the quarter, as they grow you will continue to see hps growth overall. It was a Good Progress report. Emily and as this increase your confidence . Anand there was progress and steps in the right direction, but one of the things the company is saddled with is the impact of currency, it was still affecting growth substantially over the last few quarters. Both for hp as well as hd. That is a nagging born in its side. There is room for turnaround, and a few steps in the right direction, i would say overall. Emily crawford, other things you would like to hear, what is the most influential . Crawford they believe that the stock is a buy, they committed 100 of their cash flow to stop by back. They may continue to look at deals like aruba, and other mediumsized deals. Those kinds of deals they did in the past. The bottom line, they are extremely confident about the future. Also, the currency headwinds suggests those it should abate in the next few months. Emily there is a pending 2. 3 billion dollar deal to sell a majority stake in their networking businesses in china. What is the latest on that . Anand there is some pushback on that. There is new management there. They suggest it will now close in may. 1. I want to bring, this notion of stock buyback adding substantial market value. Remember, our historical work has suggested buybacks generally occur at inopportune times three among large cap tax, there is a way dividends may be better able to return. There was a boost that came as a result of the share count production. 7 or so, relative to when the company was spun up. I want to take that with a pinch of salt, but all in, progress was made, steps in the right direction. Currency is an issue. Services, some modest progress. I dont want to get too carried away here. Emily meg whitman is confident we are on the right past. How long you see her doing this, running the company . Crawford she talked about a fiveyear plan. We are now nearly there in terms of the amount of time they can spend there. I will tell you, hpe is taking on its own personality. How they think of investments, growth, each role in a hybridcloud world. I dont think meg is going to move out of that role in the near future. From my standpoint, i can see her there through the end of this fiscal year. That is total speculation on my part. I dont see any change on the horizon, based on behavior and personality that is emerging. Emily is the split a good thing . Anand i will say that hpe is performing better, and the environment is better than hpi has shown a bus far. Coming out of the Analyst Meeting late last year, the Investor Sentiment was that hpi was a better stock, to potentially look into, rather than hpe. The result of an exactly the opposite. Emily all right, thank you so much for stopping by today. I want to give you a quick update on yahoo . The Company Looking into bundling of their japan stakes with web operations. And to sell them together. This is according to people familiar with the matter. They have a 35. 5 stake in japan. At a Morgan Stanley conference, they said everyone on the company is on board. We are very clear, the rest of the management team, and the committee and the board. We are all aligned. We are looking at the best shareholder value, and the criteria for what we end up doing. Emily yahoo shares up about 90 in the last month. Our reporter brian is here with the latest plan. Brian it is interesting, the more things change the more they stay the same. You actually look at what marissa has done here, she keeps yahoo japan and yahoo together. There is an interesting relationship there. It is essentially being run by yahoo japan. I can see why there is some logic and hope that would be packaged together. Interested in buying them together . Brian yes, that is the multibilliondollar question. That is not clear. It is going to be a bit of a tough sell. If you are looking for a great internet company, wonderful. But if there is not much you can do with it, that is the bigger question. That is definitely and not clear yet. Emily all right, bryan womack. Another story we are watching, billionaire tony moss, wants the internet more accessible. He urged lowering barriers, digital consecration, and Online Health care reform. The national conference, they will discuss rules for 2016. Coming up, gaining support in its fight for the u. S. Government. Now counting twitter, airbnb, and at t among its friends in court. We will discuss. Emily now to apple. Any supporters in its fight against the u. S. Government. 17 u. S. Companies have filed amicus, or friends of the brief. The fbi wants them to unlock an encrypted iphone. Many organizations are weighing in, including google, microsoft, and facebook. Like you said, the diversity of industries impacted by this court case, it is not just about one iphone or the mobile industry. People in software, infrastructure, across the board are concerned about the legal precedent that this case could set. And then, the future of privacy laws, emphasizing constitutional arguments apple initially raised in its opening brief. Emily what do you make of the support apple is getting . It does not surprise me at all. There is a point of view among many Tech Companies, that it is a life or death matter in some regards. A lot of companies worry very deeply that if trust gets jeopardized on the part of users, that governments can just reach into what ever technology they want. It could diminish the sales of all these companies. It is a real risk, particularly outside the united states. Emily matt, the underlying case and outlook will it change for apple at all . Matt i think they do. When the judges ruling on a matter that has this rod of ramifications in the industry, they need to get a way in. If you look at the briefs, the arguments have nuances. The sheer volume and diversity you are seeing in the filing, really does speak to the ruling and potential downstream impacts. You look at comments from people from the intel brief, for example. Saying encryption is integral to the Global Economy going forward. I think the judge will take a look at all these filings, not that she wasnt going to rule carefully before, but she will certainly be more considerate when making a ruling. Emily one of their weaker arguments, is that it would take 10 engineers and a lot of time to build a key to unlock the phone. Of course, if any company in the world has the resources to do this, it is apple. If you think about the impact this could have on smaller companies, startups, if they are required to do this, the implications could be much broader. David certainly, they could do anything to comply with government request. It is true that Many Companies dont want to be in the position to have to tweak their products at the governments win. You have to remember, this has to be seen in a global context. Once one government succeeds in getting this kind of adjustment may, every government around the world, especially in the scores a very undemocratic countries, will start wanting this kind of thing for a wide range of different products, for a wide range of reasons we would not agree with. Emily matt, we have known this all along, but there is more attention now. Until a year or two ago, when apple had a prior version of its operating system, they complied with government request all the time. Suddenly, they changed their operation system, and if the patient for lawenforcement and National Security are incredibly different, because they cannot get access now to this information. Should one company be able to decide this issue for all . I think apple would certainly take issue with the characterization of not complying with requests for information. This case is unique, in that it centers around a request for the production of additional software, creation of a new media to help the government access the phone. Emily but arent there 12 other cases across the country, and 14 other phones . And the case of a drug dealer in brooklyn, a judge said they did not have to do this area map that is correct. Each case is different, but getting back to should, should one companys litigation be deciding policy across the u. S. . I tended to think not. A lot of the briefs filed today indicate that. It requires congress, careful consideration of industry implications. Obviously, security and privacy considerations. A lot of moving parts, and the best place to figure out what should happen, as the result of a holistic dialogue that takes a look at all the different factors, without competing interest in court. Emily all right, matt larson, thank you so much. David kirkpatrick, you are with me throughout the show. Emily google is joining the fight against the zika virus, donating millions of dollars to unicef to keep the disease from spreading. Google will also assign engineers and Data Scientist to see where zika will hit next. We will speak with jacquelline fuller. A disappearing messaging app, to a major player in mobile video. We will talk of the evolution of this enterprise. Emily ace books scored a victory with european regulators. A german court ruled they have the right to prevent users from signing up, using pseudonyms. They have been citing with the network over the years. The Court Decision comes a day after regulators say it is examining whether they possibly abused their dominance, allowing use of data. Snapchat feverish popularity with millennials is often misunderstood by those over the age of 30, including yours truly. But they havent some big numbers. 8 billion video views per day. Max chafkin and sarah frier watch the progress. And you see one of the stars on the cover of bloomberg businessweek. Max is with me, as well as David Kirkpatrick. Today is the very first day i really understood why it is so important. This guy is producing 10 second videos every single day. They disappear, but he has 3 million or 4 Million People seeing the videos every day. Max and each video is getting 3 million or 4 million views. Compared to twitter, or someone has one million followers, it is a small fraction. On snapchat, people are engaged. They have figured out the platform. It is hard to explain exactly what he is doing. It is a mix of selfhelp, and reality tv, but it is strangely compelling, and the numbers speak for themselves. Sarah and i were writing the story, and we felt it up into my snapchats amazing weirdness, but also how compelling it is. Emily kylie jenner, another huge video store on snapchat apparently. David, as the guy that wrote the facebook effect, do you understand this . David if max, half my age, called it amazingly weird, i am uncomfortable with that also. It is astonishing how this service cap coming on and on and on. I know when analysts on wall street who became an investment banker, and when he went to snapchat, i said why . He said david, just watch. I would say, he has a nose you would not believe. He was the first guy on wall street to go into facebook. I think this is an amazing company. It is not for me right now, maybe it will be eventually. But you have to give these guys credit. It is astonishing. Emily i just started shooting my first snap chat video today. You can check it out. But max, one of the things you say that now chat is much bigger than people realize. Just how big is it . Max you said it just now, 100 million daily users. To put that into perspective, when you think of engagement, it is probably closing in on twitter sides, if it has not already surpassed twitter size. It depends on how you measure it. Twitter has not released their daily active in a couple years. But i think it is getting close, and when you think about the engagement, how often people are using it and how much time they are spending on it, i think you would be surprised. But we dont know for sure. We think roughly 200 million or 250 million in revenue this year, but it is just a guess. Snapchat has not really try that hard to make money. For twitter, their breadandbutter is small businesses. But snapchat has not done practically any of that. They just introduced a product a couple weeks ago, that had just scratched the surface. Up until now, you had to be able to write a pretty goodsized check to get in on the snapchat action. Emily you wonder how soon you will see something else. Max facebook has gone from this slightly scary place, where you did not want your parents to be, to a place where you are literally doing your homework on it, if you are a kid. It is how people are communicating with their soccer team or what have you. Snapchat has filled a void. The void is more normal communication, stuff that is not that important. Emily all right, check out my first snapchat story. David kirkpatrick sticking with me. Hey hows it going, hotcakes . Hotcakes. This place has hotcakes. So why arent they selling like hotcakes . With comcast Business Internet and wifi pro, they could be. Just add a customized message to your wifi pro splash page and youll reach your customers where their eyes are already on their devices. Order up. Its more than just wifi, it can help grow your business. You dont see that every day. Introducing wifi pro, wifi that helps grow your business. Comcast business. Built for business. Foxconn aiming to sign a 6 million deal. They will be much less than what was initially feared. Chinas richest man getting into the worlds biggest cinema chain. Amc. Buying it for 1. 1 billion. He is called on the chinese leadership to relax its rules. Advocates swifter form Online Health care. Establishing cyber sovereignty. Lets have a look at the trading session. U. S. Jobs data is coming out later. Not much direction of the markets right now. Shanghai is down half of 1 . Shop now rising 8. 7 . The hang seng up a tenths of 1 . The best week since october. Quickly boosting sentiment. The indian stock market headed for its largest weekly increase in four years. Australian stocks climbing for a fifth day. The chinese Authorities Say the currency is not strictly paid to that basket. Not clear where the end is going to be. Counting down to the reopened in hong kong. Emily welcome back. Turning back to the debate on encryption. The San Bernardino case makes its way through court. Congress preparing to move forward on its own investigation into digital security. A bill to establish a commission to seek to make policy recommendations after involving various stakeholders. Michael mccaul, one of the two lawmakers who proposed the bill, spoke to us from san francisco. Take a listen. The bill is modeled and designed after the 9 11 commission. The same effect that that commission had on the congress. We implemented most of those recommendations. It is comprised of 16 commissioners from all the relevant areas, whether federal, local, the intelligence community. The hightech community, and privacy advocates, to sit down and develop both legislative solutions, and technology solutions. What i consider to be one of the greatest challenges facing our federal law enforcement. Emily David Kirkpatrick with me, still. David, what you think the legislative solution should be . David certainly, as apple and others have been saying in the court case, it is far better that Congress Addresses that and makes the rules of the road clear, as opposed to allowing courts on a piecemeal basis to intervene, possibly in unpredictable ways that could disrupt companys business. I must say, i am skeptical that congress, especially in a time when terrorism is such a source of fear, will really come up with recommendations that are very rational. Also, because there are so few Technology Savvy people in congress. But i fear for a balanced view on anything to do with terrorism right now. It is very easy to get people heaven forbid there is another incident between now and the completion of the commissions report. Then it will get even more unfavorable for Tech Companies. Emily congressman mccall also talked about his goal, to go beyond this apple situation in particular. This bill is not designed to litigate that case. That case is being litigated in the courts. It is splitting the courts right now. One case, one phone. It is also designed to protect americans from, god forbid, another terrorist attack in the united states. If we get hit by another attack using encryption, congress will have that on hand. Emily david, this case is unprecedented. But what is your gut . How do you see this play out . David how should it out, or what should happen . I think the Tech Companies will have to cave in some fashion. The way it happens will be critical. I worry it will not happen in a way that protects freedom of speech around the world. One click comments. There was a committee put together recently, it included representatives from the government, although it was not official. The conclusion was, it does not matter, because there will be so many other ways for governments to spy on us, that they do not need to break encryption. Emily you know, you said the Tech Companies will have to compromise. Speaking with apples head lawyer, he told me there is no middle ground. Apple does not see a compromise in the middle that is not a slippery slope. They think this should be decided by the judicial system on a casebycase basis. When i told ted olson, apples lawyer, he laughed. David they added to it a lot of people in the security community, that we should come together and talk about it, but then do what we want. The problem is, as you say, it is hard to envision a real middle ground that does not fundamentally undermine freedom of speech and the privacy of the user. Emily this is only the beginning. Experts say this case could go on for years before it is resolved very but it will certainly set an important precedent. One stock we are watching, groupon prepared to surged nearly 100 in the last month. And the chinese internet giant alibaba may be the reason. We have reported that alibaba is seeking a loan of up to 4 billion. That is among speculation it may be gearing up to buy groupon altogether. Analysts note, the value over its fears, a less attractive target now to any potential buyer. Coming up, from zero to 700 million in less than a decade. The off grid solar market surge,. Plus, a staggering new Climate Change figure that will make you think about what is for dinner. Emily to a staggering study on Climate Change, and its potential impact on food supply. At least half a Million People will die due to dietary changes in warming temperatures by 2050. They think food availability will drop over 3 per person in the next three decades. It also showed that lower fruit and vegetable consumption may raise noninfectious illnesses, including heart disease, stroke, and cancer. A stock we are watching, sun edison shares. They have had a rough start to 2016, but they believe there is stock down 70 , this move to delay the dividend may save the company 8. 3 million a quarter. They conducted a internal investigation to fend off lawsuits. A decade ago, the off grid space barely existed. Today, it has grown to a 700 million market. Research says that as soon as 2020, there could be millions of homes running entirely on solar energy. The biggest markets are located in Subsaharan Africa and asia. And the head in bc, and David Kirkpatrick, still with us. A 700 billion market, what kind of growth rates are we expected to see . Over the next five years, we could see a growth rate. To be clear about what we are talking about, we are talking about the socalled off grid market. 1. 2 billion people in the world, who have zero access to anything looking like a grid. We are looking at basic energy services, that Solar Systems can provide. This is basic electricity we are talking about. Realistically, we are talking solar lanterns. Little lamps you can give a child to study or to read by night. That may not sound like a lot to us in the western world, but when you talk about burning kerosene for lamps or candles, this is a safer solution, a cheaper solution in the long run. When i say long run, i mean within a year, it can make more Financial Sense to own a solar lantern, and to be using candles. I wanted to ask you, two things that come to my mind. One, a huge percentage of these people live in areas where there is a tremendous amount of sunlight. Second, the cost of a bold Kx Technology has dropped. Are those two big factors here . That makes it such an exciting time for this sector and industry. That is where the opportunity truly live. Solar, five or 10 years ago would be considered too expensive in many communities. To be clear, there were a number of pioneers trying to use solar. One potential analogy, when you look at these communities, whether or not off grid solar could develop in a way that mobile technology has come a many people are not bringing telephone systems to these farflung communities, but many people have cell phones already. That in part has driven demand for these systems, because people want to charge the phones. Emily how much Government Support would it need to Gain Momentum . It is an interesting question. In some countries, the best thing the government can do is get out of the way. Frankly, not imposing high tariffs on solar goods, allowing local players to operate freely to operate the equipment without bribes or taxes. A lot of the most exciting and interesting things we see are from companies that are offering quite autonomously, to go out and make this happen. David you said it is a great point that this could drive this. We are seeing affluent companies trying to spread Internet Access across the world. Do you think they may end up financing a lot of what you are predicting here . There is an interest in the technology community. Some of them have been funded by snyder electric, by mobile phone companies as well. Clearly, there is an interest on the part of Larger Companies to get into these markets and fund these activities. There is potential out there. Before i finished, i wanted to say thanks. For those who want to learn more, you can check out our website. We partner with the world ink. We are very proud of it. Emily all right, the americans had for our finance team. Excellent work you are doing. Thank you for joining us. Speaking of renewable energy, i will speak with one of the energys proponents, california governor jerry brown. Do not miss my indepth conversation with governor jerry brown tomorrow. And coming up, amazon releases two new versions of the echo. But what separates them from the pack, we will let you know all the details. And dont miss carolyn everson. More of bloomberg west, next. Emily be sure to follow me on snapchat, i will be trying harder to share behind the scene highlights. I am emily chang tv on snapchat. Amazon is doubling down on echo, which you can play music, control lights, and order products online. They allow customers to use any speaker. The 130 cap is a battery version of the echo. Joining me, david, you are a huge fan of amazon echo. Why . David i think it is the first example of a fundamentally new kind of computing, ambient interface computing. The amazon executive says voice is the next platform. It happens to use voice, but for me, that thing that really makes it different from anything else we have seen recently, is that you basically deal with technology the way you deal with another person. You ask alexa to do things the same way you ask my wife, what is the weather . I am so impressed with this the things this alexa can do. Every time i say the word alexa, i am sure that in some households watching the show, the thing is it saying things. Because whenever it appears that word it perks up and asks you what you want. It is a new form of computer interface, a good deal. Emily alexa, alexa, alexa. People are so annoyed with us right now. What about the capabilities . Siri on the iphone, there is a lot of work to be done there. Just in terms of recognizing what i am saying, it cant punctuate, a cannot do a lot of. David it probably recognizes a much narrower range of what siri does. But what it does understand, it understands very fluently. And it can hear you from very far away. I have put my tea water on in the morning, and very far away from the echo, i say alexa, set the timer for four minutes. It is very good at doing what you say in the constraints of its language. The other thing that makes it different from siri and ok google, it is really a platform. Amazon is building more and more apps and bringing in apps from third parties. That is why spotify works with echo very effectively. You can also use uber. A number of apps work on top of it. They also wanted to integrate it with ford vehicles. Emily what kind of business do you see amazon echo being . People liken it to the kindle business. Is that a correct comparison . David i think it could be at least as big as kindle. I did not know until i read your article today, that it is already the third bestselling products on amazon today. That is impressive, considering not many people know what he did. I tell people everywhere to go out and get one. It is inexpensive and gives you a window on the next phase of technology. These rectangles of glass we look at, driving dangerously they are sophisticated, but really primitive compared to what will be possible down the road. Echo represents a new way of interacting with computing that is more intuitive and part of the way we live, talking the way we talk to people. It is a huge deal. Emily i literally just ordered my amazon echo today. And i started using snapchat, so i think my life is about to change. We will have to get you on snapchat, too. David i already use snapchat to communicate with my daughter, a 23yearold. Emily as always, wonderful to have you here on the show. It is time to find out who is having the best day ever. I love this one. Today it is nasa astronauts scott kelly, proving that a year in space can take you to new heights, literally. Upon returning to earth upon a recordsetting mission in space, scientists know that he is now two inches taller than when he left. It is a weird, but temporary side effect of space travel. Without the full strength of gravity pushing on the discs between your vertebrae, it expands and lengthens of the spine. They checked his vitals. One person would have checked noticed the difference right away, and that is his twin. Tomorrow, governor jerry brown. The following is a paid program. Announcer the following is a paid advertisement for time lifes music collection. These are songs that can relax and soothe you. Somewhere, my love there will be songs to sing announcer songs that make you feel good. You are just too good to be true cant take my eyes off you