Election, you are making political statements that are consistent with the democratic party. Yesterday yellen strongly criticized the proposal that would allow the fed additional audits. Sales of homes did slightly last month. The 481,000, hovering near at sixmonth high. The northeast of the biggest drop since 2012, the lovely weather probably had a big impact. The midwest of the biggest enough 19 . The west dipping slightly in itself up 2 . Uber plans to hire hundreds of people in china this year. This comes after the two largest chinese rifles merged. Meanwhile, starwood the writers will get points to the hotels that include the saint regis the w, western. The First Partnership or ub er. Greece won a four month bailout package. Creditors one actions will speak louder than words. The greek finance minister has just spoken with Erik Schatzker in an exclusive interview. I hear they are talking about whether greece will be able to make repayment. Despite problems and the postpolitical of the past two months, we still have a small but nevertheless a surplus. There is no problem paying calories and pensions. There is a problem with the payment. That is why i mentioned this site. We cap i am a repayment. Certain buildups before 2000 and 15 that need to be paid. We will sit down and find a efficient ways of understanding and we shall. Now to last of charges layoffs, falling a hand currency headwinds, what is not going on at hewlettpackard . It is at critical phase trying to split into two before the end of the year. The cost could hit 2 billion. That might not include the cost of layoff. Yes, there will be more layoffs. Job cuts will hit 55000 by the end of the fiscal year with the ceo hinting there could be more cuts during the final process. Meg whitman insist that you found is on track, even though sales thousand 13 of the past 14 years. Joining me now is jason nolan knows the company well. Guidance came down 3 billion. Some of that was currency translation, somewhat foreign seatac. A big component was the cost of separation. Legal fees, consulting fees a lot of work that has to be done to separate the companys. That was a big surprise to me. I did not expect to billion over two years. Talking about the Free Cash Flow notion. It is very different. This is money the company collects. A lot of back and forth that goes on on the Balance Sheet that leads to that. This sounds like it did not include the cost of layoff. It could be more than that. Is right. Earnings took a hit on foreign to treating. That is right. That is a function of map and the strong dollar. It is a Free Cash Flow thing when you lay people off, you pay a huge severance. We have argued hp needs to become a smaller and more focused company. Some of that is lower headcount. The Free Cash Flow at hewlettpackard has had the benefit of factoring. This shows up twice in a circular reference. They have been selling receivables from the customers. These are hps customers. Are they running out of these tricks to boost cash flow . Back they have extended Payment Terms to the customers. Now it is more of a working capital in cash convergence cycle play. They can only take us so far to your point. The 1012 a range is about as far as they can take it. We have seen very good Cash Management over the past couple of years. Certainly there has been a step back the most recent quarter. If you look at the way they boosted Free Cash Flow by selling receivables, they the imf conspiracy there is but i look at the quarterly pay based on Free Cash Flow as a percentage of earnings. Selling receivables to boost the Free Cash Flow. Am i crazy to look at the profit motive . You cannot do that forever but only a certain amount of time. The company was overenthusiastic when again to 6. 5 Free Cash Flow guidance. They should have been more forthright with investors. A lot of people, guard. Enterprise services, which i think of as consultants marching. That should be a great, strong business for them. That was horrible this order. Down 10 yearoveryear. That is another one getting smaller. Profitability ready to come back. That is really where hp can come in, sell services. Where infrastructure that is really where hp can come in and sell infrastructure and services. They need to do a better job of stitching that together. The next quarter will be better, but the past working have not been. Good to see you. Heading right now to our to athens. An exclusive interview. One of the most important people in the world of finance. We are talking to the finance minister in greece. We sat down for an almost at the 45 minute and i was hoping, he made some news. Lets begin with a sprinkling the thinking news. The authors have been going out of greek bank by the millions. Estimates in the range of 20 billion euros. Possibly more. He said 70 billion euros flowed back to the greek inking system. He is not being the figures yet today but it back hundreds of millions of euros more of war euros in the greek banks. He says now that turned the tide, there is hope for the safety and security of the greek Banking Systems future was so much in question. We also talked about what happens over the next fuour month. Acknowledged Yannis Stournaras acknowledge that will be a serious cash flow problem in march or april. He was not specific. How will greece deal with the problem if you flunked out of Capital Markets and there is new no new bailouts . He said it is possible the ecb money greece owes could be paid to the imf because the big question is how is brief going to make the next installment payment to the imf cap requests for ecb could stand in and give them money. Also possible to imf could give grief permission to do gree ce permission to do what it did before to issue Group Treasury bills. Yavaroufakis could we not do it now gekk if . He said why would they want us to trip over such a small and relative terms cash flow problem you go back . That sounds pretty good dicey. How much of it is greek people or perhaps people from elsewhere that have made a lot of deposits in the greek banks gekko that is the question im afraid i cannot answer. He said it is safe to say this not know the source of the deposits. What he does do is check with the National Bank of greece, on a daily basis. The future of the Banking System so important to the stability and ultimately the ability to survive within the euros are spent. As for the cash flow situation i asked him how confident are you that you will get past this . The ecb and or the imf will allow you to make the temporary maneuvers comes back to me in quotation marks. The finance finance minister pretty confident he will not run out of cash in the next four months. Take that the way you like. But i will not even take that to a great grreek bank. Greek bank. We will be right back. I am cory johnson. This is bloomberg west. Stuart gulliver said he will help client his role in helping clients avoid taxes is the product of a different era. He tells the committee his own private lives bank account has nothing to do with dodging taxes. It is clearly about privacy. Privacy from colleagues in switzerland, and it has practice whatsoever. Gulliver said he is delisting the firm after a report said it sheltered money for tax evaders and criminals back in the mid2000. Sim card akers said the government was probably behind the hacking attacks on the network. The comment came after a report blamed the hacking in the u. K. Government as an amazing story. I will put it twitter links to this great story. It is based on a document league by edward snowden. He said no products were affected and no significant that data, although the story would argue otherwise. The radioshack name going on the audio. On the Auction Block separate from the stores. Time to win approval to leave the bidding. Also trying to buy as many as 2000 radioshack yours after the company filed for bankruptcy. The drumroll beats for the ash at the sea the sec energy and commerce rules. Today they will vote today on the rules socalled uncertain future of the internet. Joining us Georgetown Center for business and Public Policy larry downes who testified at the hearing. What did you tell them gekko good morning. What i tell them is the hearing is no longer about the open internet rules. What the fcc is doing is going for title, reclassification of the internet as a public ability. That is much more worrisome to many of us than the rules themselves. We are urged the committee to act as congress only can do in passing Bipartisan Legislation that would solve the problem once and for all without resorting to the crazy legal theories. Is this a crazy old crazy legal theory . I think the big isps have their smart machines out to befuddle and confuse the media and everybody else. Lets start with the very basic. The question at issue is whether an agency and washington d. C. Is going to have the authority as it has had in the 1920s over telecommunications to make sure there is no discriminatory actions by the providers to make sure it now in terms of the internet that a favored few will not be able to throttle content or block content or prioritize content or determine what news you and i are going to get. The fcc has had this authority. Now they will reassert the authority for the Communications Infrastructure for the 21st century that it did for the 20th entry. It is not Rocket Science is Rocket Science. I wonder there is an argument that title ii is not the best way to do it. Are there problems with title ii . Why is that the very best way for the fcc to pursue this . It is the very best way because it is the only solid Legal Foundation. They have told us that. The courts seem to indicate it is something that fcc is authorized to do, you have to do it under the right Legal Foundation. When the Commission Voted cable broadband was not a Telecommunications Service and later the same thing applied to telecommunication journalist, it wiped out the Legal Foundation to rest the arguments on. No one can predict the right outcome of what happens when the decision goes to court. I want to go to the soundest and strongest Legal Foundation there is. Clearly that is title ii. We know the lawyers will get paid for this. Someone will go to court in a matter what. Why is title ii not the right way to support this . I have to disagree about this. Not the most solid foundation. What the court told the fcc and what the chairman acknowledged in january through the summer was what the court said sections 106 is followed legal doherty. He said that was a roadmap, an invitation to reenact the rules will do it. The problem is the Supreme Court agreeing with the fcc has said it does not apply to information services, does not apply to the internet. That means for the fcc to fight it off it will have to buy a much stronger uphill battle in the core, possibly only to the Supreme Court. I want to respond to information coming up in the urine today about secrecy. There is a quote from the congressman. They said together representative of did said so long as the chairman continues to insist on secret the we will continue calling for more transparency and accountability. Chairman wheeler not about congress. I wonder if you can help me understand why the fcc has not made the entire proposal public before the vote . I think number one is following the terms of the administrative procedures act. We know a lot more about it a lot very soon. You have to realize this proceeding has probably the most complete record of anything the commission has done in years and years and years. I reference the vote. The commission has been compiling since then. We have asked every western, every issue that could about has been better. That could have come up. People talking about other alternatives like legislation. When has Congress Passed a piece of substantive legislation recently anyhow . Can you imagine how long that would take younger that as been put on the sideline too long. Time to do it in time to do it now. Next sit tight. I want to continue the conversation because it is a good one. We will be right back after this. This is bloomberg west. I am cory johnson. Were talking to larry downes. We were just talking about the secrecy issue. Is this a big deal . It may be as open as the fcc has ever been, but is it open enough . He knows far more about the secret workings of the fcc than most of us could ever possibly know . It is true it is not traditional to circulate orders ahead of the vote. While i would like to see the full 332 pages that are allegedly in the report, i understand we have to wait until the vote. Given the magnitude of what is happening, you can understand how members of congress are increasingly agitated about what is coming. The interest over the issue something you think we will see in the future now that the technology and internet is such an account important factor for the internet . I would think so. Isnt it amazing we have had over or Million People contact the easy for something as seemingly arcane as Net Neutrality . I think it is not a very organizing term of technology. Going beyond that for title ii. That is because people really understand what were talking about is the communication infrastructure. The platform to talk to one another, find jobs entry take care of their health. It is integral to their lives. Of course they have an interest in them. The interest will grow. I think at the media gives it more and more attention like you have done through the years, people are going to be even more involved than i have been before. That is democracy, the way policy should be made. Also more interest from congress as a result . I think so. Congress a year ago undertook the the starting point of looking at the Communications Act as a whole. It has not been significantly updated since 1996, and that could take years to do, but we need 21st century regulation and that is up to congress to do. Larry downes, michael called thank you very much. We appreciate it. \ you are watching bloomberg west. Where we focus on innovation, technology and the future of business. I am cory johnson. Snoop dogg and Mark Zuckerman have much in common. Not the least of which is coffee. Snoop dogg, jonah hill, Silicon Valley tech alike. One investment Coffee Company during by the chairman for the regular office hours segment in the ceo. Glad to have you both here. This is an interesting story. Not just because i am a big coffee lover. There is something going on with technology and copy. The success blue bottle has had and the success locally. What is it about coffee and the role of technology that is coming together . I think part of the big reason is we are in Silicon Valley. Most of the stores are in the bay area. A lot of technology. Come in and drink a lot of coffee is ashley the engineers to keep on going. Why is it for you . This is my First Venture outside of technology. I love coffee. I am one of those guys that love coffee. I have a problem though. I cannot drink anything caffeinated anymore. I have decaf and that is like really being a loser. You go to the store and nobody has a lot of choices. My son told me about phils and said there is a replace your to try. I took a sip and said you put green in this because i drank it black. I said i did not. Also disruptive. But if disruptive . I think we possess a lot of similar value that Technology Companies to. Our philosophy is the best coffee in the world is one that comes to your taste. The best coffee in the world is that thats the one that comes to each individual persons taste. Every copy is different. We do not do espresso out of stores. We believe it is not what you do but what you dont do. We want to focus on doing a few things very well. Every cup is handcrafted. We confirmed espresso drinkers every few months we convert thousands every few months. I am always running from place to place. I go in there. Decaffeinated people can be in a hurry. It does not take that long. It can take 34time minutes. Five minutes. There is opportunities for efficiencies. The optimized for quality, not efficiency. We recognize some folks dont have time, so what we have is an app where you can order ahead where where you can prepay and preorder why youre getting up from bed. Choose the blank and when you want to pick it up. It is like an express station in a way. You walk in and walked out, a two second visit. Now all i need is a runner. It is interesting watching the explosion. My favorite coffee, cap they broke the. A limited number of stores and so on. You guys are blowing up. Blue bottle having the slow food movement. At this point in we see an explosion and coffee. Keurig selling like crazy. Toss in holders and that is the majority of the consumer market. More people are drinking instant coffee rather than opposed to the slow copy. Slow coffee. No doubt it is in waves. There are three ways. Third is the instant the middle and the third is the one that you mentioned. We are sometimes in that category. The big differentiator between the second wave and third wave is an elevation of holiday and care for quality. Not mostly about efficiency. The other thing is a little bit more transparency. Glassworks when you are boutiqueish. I think starbucks felt they were there at one time. That works. How do you keep that as you get big . There is a fundamental difference between us and those folk. By those folks i m