Valued at more than 380 million. China shenzhen off by a fraction. Asia singapore tokyo and mumbai. I am back in half an hour. Time now for bloomberg west. Emily i am emily chang and you are watching bloomberg west. President obama is defending his plans to go around congress to tighten the nations gun control restrictions. After meeting with attorney general Loretta Lynch and other officials, the president said his actions are within legal authority. Iran is expressing regret over to attacks on saudi arabia and diplomatic missions. Iran says it will prosecute those responsible. The attacks stem from protests over the execution of a prominent cleric over the Chinese Companies deep in the red today. Stocks,her u. S. Tech going in the opposite direction from last year, netflix and amazon dropping today after posting their strongest gains in 2015. What does it mean for the sector in the new year . Joining me is max wolf and our guest host for the hour, David Kirkpatrick. Happy for both of you. Happy new year to both of you. What is going on with netflix and amazon . David probably not a whole lot. So little that whatever happened in the stock market today for Companies Like that is probably very short, in my opinion. Emily ok, max, wall street guy, what do you see as the connection . Why were tech stocks hammered today . Max happy new year and thanks for having me. I am not sure i want to wear the moniker of tech guy, but my take is the following. Three different streams collided today. When you cross the streams, as we learned from ghostbusters, not all together good things happen altogether good things happen. The high flyers of last year were sold off today. You give yourself alone on the tax bill. Anything that causes greater loss of confidence in chinese data sends shockwaves. We have seen the Chinese Market get propped up through various and sundry means. I think the market was a bit overbought. The reason i think it does matter is i think the preipo tech names are affected because the multiples they have right now are probably too high against their public peers, and that discrepancy gets larger on days like this when we see contractions. High fly winners get sold aggressively, as they did today. Emily recently, some of the other Technology Companies were the biggest losers. What about the fundamentals of these companies . Do you see strong fundamentals when it comes to smaller Tech Companies, and also amazon and netflix . David generalizing about tech is a hard thing to do. For Internet Companies that dropped a lot today like amazon, google, or salesforce, i dont think what happened in china has any relevance. A new company thats an Enterprise Software firm, if the Global Economy slows down, maybe, but i dont see a whole a lot of sign that was happening in china is a global contagion. Its nothing to do with china. Its to do with sentiment. Max was talking about tax related reasons. I think thats sage. And a smart point he made is that this could have a negative effect on some of these wildly overvalued private companies. Emily max, lets talk about that a little bit. Is this just one bad day or is this the start of what could be a not so great year . Max its just one bad day. A troubled year began in august. We are having a discussion in tech now that shows how much excitement there is around tech, what the future is, and how much the excitement around tech can be off. I think we need to see more fundamental performance from our preipo and postipo Tech Companies. We are going to see a more skeptical lens focused on the space. It is still going to grow. It is still going to be a great space. But it is not going to be the suspension of gravity that we have seen recently. Today is just sort of a dave it people are kind of vomiting up some risks they have put on may be sort of a day that people are kind of vomiting up some risks they have put on over a couple of years. Its kind of hard to make the argument that if you are not buying into the china party you are particularly adversely affected by trouble in the china party. Emily it will be interesting to see what measures china takes this year to prop up the economy. Thank you so much. Now, another stock we are watching today is tesla. Shares fell a most in two months after the car maker hit the low end of its delivery forecast for the year. Emily General Motors is giving a major boost to lyft, becoming a key ally in their competition against uber. Together, they plan to develop a fleet of self driving cars. I caught up with the president s of gm and lyft today. We are really aligned about how we see the future going. We are super excited. Emily how much faster . Not talking about specifics in and growth rate, hours pacific growth yearoveryear him and was specific growth year over year x in the united states. In emily year over three times in the united states. Emily does this rule out working with uber . . This is going to require our companies to work closely. Emily so, yes . We are going to be working really closely with lyft. Emily john, do you see self driving cars taking over the fleet or complementing human drivers . John this will evolve over several years, so will be introduced as a compliment, and eventually become the main way people are getting around. I am happy that we are going to be part of the transition because we are going to be doing it in the most responsible way and making sure drivers are taken care of in the years down and the road. Emily this is the first time we have seen a Ride Sharing Company and have seen a Ride Sharing Company partner with an automaker. I want to get to the timeline because you said you expect to see self driving cars on the road within 10 years, likely sooner, right . Right. Emily dan, i have talked to people on the board of google who say its more like 20 years. Dan we think this is a journey him anddan we think this is a we are going on to get to this autonomous network. We announced last year at General Motors that we planned to release a fleet of autonomous chevrolet volts that will become a development bed for us to do in rapid development. We are handling the autonomous ondemand network we have announced as part of this alliance. It is going to be a journey over him time and something we are putting a lot of resources behind. Emily is sooner than 10 years realistic . Dan we are working as fast as we can to make it happen. Emily how to you play out that timeframe in your mind . John i think the experience is really interesting. Lets say several years out you will open up the lift app lyft app and request a ride. If you are traveling with friends or family, maybe it is a movie lyft to tahoe. We are going to be able to create transportation experiences that you request. Emily i would love to see that. Dan, google has partnered with an ford. Him ford. Him we believe apple is working on self driving cars. It were is working with carnegie mellon. What makes you think you can compete . Dan we are a highly funded Detroit Company and the lyft guys are in Strong Fundraising shape. For the first time, a car company with all the capability we have around autonomous and the resources we have from a technical and financial point of him him view, bringing that together to a rideshare platform is a unique combination no one else has done. We think that will put us at the forefront of change, particularly in the urban environment. Emily how does this change your Business Model . As you look ahead, people are not buying as many cars or they are writing in self driving cars and dont necessarily need the best car or the most customized car if they are just a backseat and passenger. How does your Business Model change . A dan that is exactly what we are doing. Him we see that change coming, and we see that change coming, and we want to be at the forefront. This puts us in a unique position to be at the front. The real strength in our business today, our core business, is outside the urban centers. We see the opportunity as we go him into disrupt mobility in the urban environment, we see it as an opportunity, not a threat. And him and emily the rentals, how big are they going to be, where are they going to be, model it out for me. John this is something we are working on immediately. The idea is that 16 of driver applicants apply but because of the year or size of their car are unable to drive on the platform. Other casual drivers would like an easy way to earn income. Renting a car by the week or the month gives them that flexibility without the long term commitment of a lease. Again, taking care of drivers who want to this opportunity, with access to General Motors financing power and their fleet of vehicles, will allow us to roll this out in several cities in q1 this year. It will save a lot of money and in provide a lot of value for drivers. Emily do you see this becoming a bigger part of your Business Model . Dan yes, and when we think could scale up pretty quickly. Given the financial firepower we and have is a company, we can finance these vehicles much more efficiently than an individual driver can, bringing the total cost of ownership and operating in the vehicle down for the driver. Emily uber has a 62. 5 billion valuation, which is unprecedented. How does that number strike you . Dan that is the number thats out there. People have described the valuation. We are focused on the work we are doing with lyft. We think that will create huge value for our customers. Emily the ceo of gm was just named chairman. Reuniting the ceo and chairman role. What is your take on working with mary . Dan it was just announced. Its great news. I think its a statement about where we are today and her strong leadership over the last couple of years. Emily what specifically would you point to . Dan the fact that we are here making the announcement today around this alliance, that we are looking to the future of mobility and how that is changing, and that we want to be right at the forefront of that. We want to be very much part of the change we see. Its a really exciting time. Emily jon, as you model out 2016 and taking on the competition, what are your Top Priorities this year . What cities . What strategies . What will we see from lyft in 2016 . John we want to expand it use cases for existing users. The first time you use the service, maybe youre having a drink and you dont want to drink and drive. Then maybe you try it for your commute and you find out how convenient and affordable that is. People in San Francisco and new york are using as 80100 times a month. So, we will be attracting new users and Building Products to increase user ship usership from the first time using. In dan for the first time, the ownerdriver model is changing. The utilization model is changing. The average car is used for percent5 of the time, and the rest of the time it sits there depreciating. That is a model that has to change. In safety conditions and economics will drive the change. Emily staying with autos, toyota is trying to keep Silicon Valley from dominating its dashboards. The company is using an open source version afford systems to connect smartphones. Toyota has resisted apples car play and googles android auto, citing safety and security concerns. Ford also announcing that other automakers are considering the platform including honda, mazda, and subaru. Coming up, windows 10 hits a big milestone. What the numbers mean for the ceos turn around, next. Emily watch out, google and apple, microsoft 10s operating system has been installed in more than 200 million devices and is on its way to hitting one billion devices by 2018. Keep in mind, microsoft is giving away its upgrade for free for the first time, but just for the first year. David, does 200 million seem like a big number to you, and is this one billion target in 2018 realistic . David i dont think google and apple are quivering in their boots, but i think microsoft is getting increasingly pragmatic, giving the upgrade away for free while making money from pc makers and enterprise retailers. Emily i recently spoke with sasha and attila at dell world about his goal and how he gets there. Take a listen. Our goal is to grow the ecosystem, the demand for the pc, the new categories, stimulate demand. Our goal is to make sure we have a vibrant ecosystem. Emily what are some key things you are going to be looking for this year to determine whether his turnaround strategy is working . David aside from pcs, they have a ton of good Enterprise Products that continue to do well. The key issue for microsoft is how well does their Cloud Strategy continue to do . In some ways, the whole cloud battle is between amazon and microsoft, the two seattle companies. I think as Cloud Services grow and grow and microsoft is able to get more people shifted to subscriptions, that is where the real longterm opportunity is going to be found. Emily what do you think are the Biggest Challenges that della that he faces this year . David they are very economically dependent. Their challenge is going to be to stay relevant in the face of apples cool factor. As the Global Economy may be a little shakier although i dont think it is any real danger microsoft is a little less huge, a little less dynamic right now. He has to get more cool without losing focus on the businesses that rake in the dough, particularly in the enterprise areas, databases and other things. Emily we will be watching for the microsoft cool factor. David kurt hat trick is with us for David Kirkpatrick is with us for the hour. Coming up, apple facing criticism that it is too vanilla. And the Consumer Electronics show is coming up this week. We will tell you all about it. Him the only way to get better is to challenge yourself, and thats what were doing at xfinity. We are challenging ourselves to improve every aspect of your experience. And this includes our commitment to being on time. Every time. Thats why if were ever late for an appointment, well credit your account 20. Its our promise to you. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. Him an update of our top stories. Almost 20 million into the financial system. Dan the sixmonth run of cash injections. The economy slowed down. A merger between fairchild the new offer could put that under threat. Tiger airways shares are surging in singapore. Minority shareholders lobby for a better deal. Singapore air has extended the time limit. The start to trade here. Jeff bezos waved goodbye to 3. 7 billion. A quick check him of going on market wise. Just add what you said there. The biggest billionaire losers on monday. Were seeing a slightly better picture, but in no way and we recovered levels. Right now we are down about a 10th of 1 . Next, 255 billion. Although it is slightly better, gold is given back some of its gains at the moment. We are on lunch break at the moment. We do finish the Training Session dont have the trigger. Six out of eight of apple directors are white. As you can see, six of eight of apples directors are white. According to new documents by bloomberg, a recruiting proposal was submitted by tony maldonado, calling for the company to put more people of color in highprofile roles. Will this pressure apple to increase its diversity cap at the next annual meeting . Joining us from our l. A. Bureau, and David Kirkpatrick. Tony, this is a problem across corporate america. Why are you going after apple in particular . There were a few concerns i had, particularly after a discussion i had with my son three years ago. After reviewing and researching apples history as far as the board of directors and governance and leadership, i notice there is a big difference between what is being dated in the public about diversity and what is actually occurring. I noticed for about 18 years there was no one of color appointed outside of andrea jeung. You had to spend 18 years between two black directors on the board. The only hispanic i see on the leadership governance is a queue. It is a company that i love dearly, and i believe in its philosophy. I believe that using them as a catalyst for change for Silicon Valley and the rest of the corporate world is the most useful at this stage. Emily google and facebook also have just two women on their board, there is not a lot of diversity there either. Are you trying to make an example that others will follow . I would like to because this. By saying, make an example, it sounds like im looking for a negative reaction. Im trying to use apple as an example but positively. Apple is a catalyst for change. It is a Great Company and has great programs for diversity, but at the senior level there is great concern and by using apple in this proposal, there will be change among google, facebook, and other Tech Companies around the world. Emily apple last year adopted a bylaw vowing to improve diversity, something tim cook has been very outspoken about. He said in an open letter last year, we are working hard to expand our recruiting efforts so we continue hiring talented people from groups currently underrepresented in our industry. He personally came out publicly. Why isnt that far enough . We have to understand that change has to occur one way or another. We cannot be waiting for it to occur within a decade or two decades. Change is occurring, and i agree with that. But that is starting from the ground up. If you want to have a sufficient number of people of color to join the ranks of apple and Tech Companies that we need examples of the top. If you have a Leadership Team that happens to be