Star wars becoming the high yeast grossing film of the box office. The force awaken broke the 16 billion. It made an additional 18 million overseas and it opens in china. Hong kong is closed for lunch. China now for the day because it exceeded the certain per september handle. Theres no more trading this thursday. Hang congress by 2. 39 . There we go. On the way down as well. Any nikkei. Time now for bloomberg west. Emily im emily chang. This is boomberg west. Potato chips and mitro chips. You can buy just about anything on amazon and that includes semiconductors. Colleague as, my orey johnson at the Consumer Electronics show. Were going to talk to selfdriving cars and the future of navigation as well. Emily an executive shuffle at Morgan Stanley. Hat could mean changes the c. E. O. s gormans succession. Eric, give us the rundown. The bottom line is this, james gorman is going to be the c. E. O. Of Morgan Stanley for longer than he initially planned. He will be though there for the next seven years and all the way through his retirement at age 65. Gorman is 57. Greg phlegming who has led the retail brokerage, really the crown jewel of the franchise is on his way out the door. , greg flemmingon has been seen as a potential successor. And as long as theyre down 15 twites as down as gold man satisfaction you Goldman Sachs you know that takes the issue off the table. Emily is gorman trying to shoreup his future leadership as c. E. O. Here . In short, yes. Gorman is cementing his hold on power. Flemmings departure removes the potential successor trip. Hes older and now perceived as a threat to his hold on power. What now needs to be seen the who steps into the shoes of those deputy ranks, Morgan Stanley doesnt have many people in their 50s who are eligible. And so we will see the next generation of leadership begin to emerge. , ly, theres one last thing. That he had departing words emily how existential. Marissa Myers Company under fire yet again from investors angry with yahoo s performance. A letter. Comes from it pears that investors have lost all confidence in management and the board. Starburt raising the threat of a proxy fight. In response yahoo says its in the mix of of a multiyear transformation. We will share additional plans for a more focused yahoo . Joining me now is eric couple an early investor. Also joining us tom giles who overseas tech coverage for bloomberg news. Tom, you guys have been choicing this all days. What do you make this . Is a proxy fight inevitable . Thats the word were getting right now. They are really fed up. Nothing that Marissa Meyer and her Management Team are doing at yahoo is just really up to snuff as far as starboard is concerned. And i think what what you saw Marissa Meyer and the Management Team take a few steps. But it really wasnt enough. I mean, starboard has been making demands for months and months and months, first they wanted the alley babba and they said no, we have concerns about the Tax Implications. Dont do that, spinoff your core instead. Yahoo came part of the way to exceed those demands. They said well look at whether it makes since to spinoff like that. But as far as starboard is concerned still not enough. Emily the way that yahoo s positioning it, i could take the better part of a year which starboard said its far too long. They did specifically said if the board is unwilling to accept the need in an election contest may very well be needed so they can share a majority of the board. So eric, what should yahoo do . Eric yahoo really has no choice at this stage but to sit down with starboard and maybe some other shareholders and negotiate a change in the board of directors whereby some of the time. Ts will get some they had to exceed to carl icon a few years ago and dan lobe. To take such a fight to the end to an election is just not done in two days time. They have to sit down immediately. Negotiate a settlement so that new directors come on the board, a new plan is put in place and the faster, the better. This idea that they can wait another year or two years to turn this company around is just not going to fly. Emily what about Marissa Meyer . We recently spoke with mark benioff and he expressed extreme confidence in her qualifications. Lets take a listen to what benioft has to say. I have a lot of confident in her ability to create a great yahoo . Ve a great confidence to in her. Shes amazing. Shes completely magical. Ily given starboard, what does that mean for Marissa Meyer . It seems like theres a group of people in Silicon Valley that are closing ranks. I do not know marissa. Im sure shes a great leader for her company. But you look at the result for the past three year, years. And starboard gave a very good try in a letter that shows theres a steep decline in the core business if you let that go on for a few more quarters there , ll be no more ebidad therefore no more core value thsm happened under marissas watch and thats got to stop. Emily a potential sale of this core business is another. Verizon is a name that has come up. We spoke to Tim Armstrong and we said what about yahoo . Verizon bought aol and is very interested in add technology. Take a listen to what armstrong had to say. I told you we had our longterm goals. Im not commenting specifically on any companies but we want to increase the scale of what were doing. So were doing things that make things organically to make sure we become one of the most important mobile Media Companies on the planet. What do you make of ar strongs response there and you know, this open question, who could, should buy yahoo . Well, armstrong was not giving you a sense that, hey, no, dont look at us. He said he wants scale. Jahoo would give give them yahoo would give them scale. Thats a billion people. Theres still people who use email. Theres still a lot of people who flock there and use it as a portal to the web. Theyve missed a lot of social. Theyve missed a lot of mobile. But it seems that armstrong and verizon based on some of the things that verizon said publicly that they would be interested in yahoo would put themselves up for sale. So armstrong in no way is taking them ott of the running for potentially buying eye yahoo . What do you do about those asian asset that are so much of what yahoo s valuation is . You have the stake in alley babba. You have the stake in yahoo japan all of which any buyer and yahoo itself needs to unravel. Needs to figure out how to do it in a selfefficient manner. And thats what prolonged this for so long. Emily do you see a sale . Ou see it being ve roy verizon . Definitely. F you created an asset and you will find that there are a number of buyers nasms the best outcome. Ou sell the it. And you figure out the Tax Implications and the Share Holders end up with cash or shares in alley babba and yahoo japan. Thats the best cleanest way to get out of this. Emily early yahoo investor tom giles who understand our tech coverage. Coming up i will be sitting down c. E. O. Election cre max just resigned from the company. And where he sees the company heading. Microchip technology will be reconsidering fellow chipmaker atmel. Respective for atmel and microchip has declined to comment. Coming up, we head to ces and speak with the navigation partner that uber parrer ined with. Why uber wants a piece of tomtom. Nd remember the high speed support system . One Company Begins work on a prototype in the las vegas desert. Emily shares of apple down 4 . After reports surfaced that the companys trimming orders for the iphone. Apple announcing that its own ap store set a sales record last week. Stocks have been sinking ever since. Its currently at its lowest point in over a year. To the Consumer Electronics show where Automotive Technology is the theme of the moment. Especially the push towards making selfdriving cars a real. Tomtom unveiled its latest technology. Our editor at large, cory johnson is standing by with tomtom u. S. President. Joshua degrove. Cory thank you. Tomtom is an interesting company. I first heard of them 10 years ago when you were making personal business devices. You are making personal navigation devices. It puts you in a position to serve up maps to uber and apple. Talk to me about what happened there and how the business pivoted. Well, i think for the business, one of the best decisions that was made is to actually as we real wanted to take our destiny into our own hands and control the business, one piece was missing. At the time, our ceo made a bold move to acquire the map companies acquisition. Cory it seems crazy at the time, so expensive. Exactly. This is exactly what we are seeing now. Content and the ability to control the content and invest in the content is giving tomtom, what were seeing with the development of highly automated driving technology, it is increasingly more important around the world. So having that able to build on that asset is a great opportunity for us. Cory what are you doing now . It is about investing in the technology. Recently, we just unveiled a realtime map. The ability to update maps little by little as the reality is changing. The grapped reality is changing. Cory that is coming from the evice or the user . That would be coming from us. If the map needs to be updated, it can be updated immediately, onthefly. Which as you can imagine can be very important for that technology. Cory do you imagine there will be a day when tomtom is not making physical devices . Well, theres suddenly tomtom is a Product Company. This is one of the things that defines us. We make products that makes peoples lives easier. This is why we went into navigation and this is why we were recognized for providing the very first navigation device hat only had one button. We push the barrier with wearable, comfort, bringing heart rate to the wrist. Bringing music on this wearable device. We are a Product Company and i think we will continue to be a Product Company. At the same time we face some very large bets. What we are doing in the automotive world, you have seen us partnering with apple and with uber. It gives us a unique opportunity to really invest in our technology, to be part of what is, i believe tonight, undeniable, the next revolution in driving. Cory he needs a map because he is french and he lives in massachusetts and the company is based in holland. That alone requires g. P. S. To keep that straight. Emily cory johnson on the ground. We will be back there tomorrow. With the u. S. President of tomtom. Coming up, want to get from San Francisco to l. A. In 30 minutes . Yes, please. Were going to talk to rob loyd about whether or not that scifi dream could become a reality. Emily in the market for a vr headset . Preorders just began. It will cost you 599. The head sets are expected to ship in april. The majority declined to estimate. Saying the device suspect a big deal for the social network. Now, i want to get to the main event, the consumer electronic show underway in las vegas. Earlier or editor at large, cory johnson caught up with qualcomm ceo. After the Company Announced its w processors will be used in 2017 audi 17. He started by discussing the importance of the deal. We have had a long relationship with the car industry, over 10 years. Asicipped over 340 million s. The speed at which people it started off by getting the car connected. It has accelerated through more technology and the audi partnership is not just taking the modem, but also the part of the car that processes information. Cory this is an additional socket . More technology in the car. The car is becoming a smart phone on wheels. Audi is an innovator and we are happy to be working with hem. The automobile is going to be a growth sector. Our blend of technologies that we can provide in a smart phone type factor is going to be important to the Car Manufacturers. The Car Manufacturers are becoming much like the cloud providers. They generate so much data. If i had information on your intermittent window wipers, so much data i can get off that information. That is why you see the cloud providers and Car Companies onnecting. We invent that technology to allow that to occur. That trend is good for our business. Cory they want to keep the data hemselves. Anytime you have innovation occurring at a fast rate, you ave a lot of different parties. That has always been a good trend for us and we try to make that easy for these companies to take advantage of that technology. Cory what percentage of the business might be cars five or 10 years from now . If you look at our business, the smartphone business will continue to be a big business. But its slowing down. We can take that same technology and apply that into new markets. When we look at those businesses, it doubles the available market over the next five years. When you look at all of the hings on the show floor, not just cars, but if you take cars, the home, what is happening in smart cities, automotive, health care. Those are new sockets for us. It doubles are available market. Cory i think i will come to hate the phrase internet of things, so thank you for not using it. I imagine how you see that working . Well, today were already a big player. We ship over 100 mill chips into that area. What people forget, it is very diverse. You have to enable a number of different partners. Not just one like you might do in the smartphone case. But whats happening is theyre absorbing many different technologies, drones, even your thermostat has a number of technologies. That 10 years ago or five years ago would only be in the beginning stages. That accelerates the rate of innovation that occurs in the home and all of these different markets. Half past 12 00 here in hong kong as a look at our top stories. Chinese regulators looking to restore the market. And just after 15 minutes the wiped t breakers out 640 million. The Security Council has promised to take new measures r north korean koreas claim hydrogen bomb. The blast was a clear violation of the u. N. Resolutions. He said that the blast was to protect itself from the u. S. An other enemies. They summoned the north korea envoy in protest. Netflix has gone live in 130 new countries on its way to becoming the first Global Online service. India, singapore and hong kong mong the asian market. Netflix jumping more than 9 . They expect to add more than 11 million subscribers outside of the United States. The asia Pacific Trading day today is one that many would like to forget. Given how short it was on the chinese menu. We do have some breaking news right now from china that the securities regular, that the csrc has scheduled well, scheduled an unscheduled meeting. I said an unscheduled meeting to discuss what they can do about these Circuit Breakers in china. Two of them kicked in. When they fell 5 . Trading was halted for 15 minutes. When things resumed it took less than 90 seconds for us to hit the second threshold of minus 7 in effect shutting down the market for the day. Of course, we dont know details of what they will be discussing. Perhaps should they revisit the gap from 5 and 7 . Once they reach 5, everybody fears they may get stuck in. They also discuss the rules or the limits on how much these big hare holders can sell. Perhaps alleviate some of the panic that were seeing across the choi knees market which is shifting into hong kong. Were counge to 2. 4 morning session, 200 of the 30day average in terms of volume and well see how this plays out in session. Not in shanghai. Hong kong reopens 27 minutes from now. Emily now were headed to hyperloop. Its an idea outsourced by ilan musk for. The system capable of speeds of more than 700 miles an hour. Rob, thank you so much for oining us. What is the path for bringing this idea to reality . Rob emily, it is a pleasure to be here. What is really exciting for all of us at hyperloop is one year ago, we were operating out of a garage with six employees. One year later, we have 88 people, 37 million of capital, on our way to closing are 80 million b round. Were sitting here right now, 45 first s away from our important test that we will be completing this year as we move quickly towards what we call our kitty hawk moment. The moment we demonstrate the full system, achieving those 700 mileperhour speeds, and demonstrating the innovation this company has brought. Well have 300 people by the end of this year. And not only is hyperloop a fast technology. Hyperloop is a really fast company. So when do you move to actual mplementation . You know, as we see incoming interest from around the world, we are putting some folks around the world to start to work with projects that we are already identifying. Along with the technology evolutions, we will be demonstrating this year, we are seeing interest from around the world and we are beginning to work on the process of identifying those projects that will demonstrate the transformational nature of hyperloop. It could be passenger movement, opportunities between cities, it could be moving freight. We are focused on identifying the three top opportunities by the end of this year that between 2017 and 2020, we will begin constructing the three first production hyperloop systems around the world. Emily how involved is elon musk at this point . Have you talked to him about how you move forward technically and financially . Rob he has been pretty pleased with the progress our company has made. He is not directly involved. The hyperloop competition being sponsored by spacex is something we love. That is coming up as students and contestants begin to demonstrate their ideas. The test that spacex will be sponsoring the summer we are a sponsor of that activity, but most importantly, we love the fact that some of the brightest minds around the world are putting their thoughts toward solving this problem and we think some of those will be the next 100 people that we hire. Emily what kind of people are you looking for . You said