Sales causedfast mcdonalds to surge producing the best quarterly growth in four years. Ales were up 4 in china over 24 hundred journalists in 150 news bureaus around the world, this is bloomberg news. Lets take a quick look at the markets, hong kong and china are closed for lunch but here is how they were trading in the morning session, the shanghai composite down more than 2 . This was the picture following that sentiment i am back in half an hour, time now for bloomberg west. Emily youre watching bloomberg west. Twitter stocks tending again, jack dorsey turning around the sinking ship. All lines on apple as the tech giant prepares to announce earnings. How long they can keep up the pace. Cuts. Int announces job investors signaled they are not so sure. Twitter shares are tanking again, closing down almost 5 after the company lost for key members of its executive leadership team. Jack dorsey confirmed the departures in a tweet saying that he was hoping to talk to the twitter employees about this later this week but i want to set the record straight now. It comes as the Company Struggles to improve its site quickly enough to reverse a slowdown in user growth. How much will these departures impact his turnaround plans. There are a lot of reports but what do we know . Sara we know for sure that these people have left twitter. Jasons off the head of vine has left twitter. We know that they are adding to members of the board based on information from sources. We also know they are getting close to hiring a cmo. Many changes at the top. Somewhat expected with jack dorsey coming in in october and evaluating things. It has been a couple of months and he knows what is working and what is not working. People know if they want to work with him. Emily we have seen a revolving door at twitter. Some heartfelt tweets from the people that are leaving. Om this is a changing of the guard. New people to advise jack. We dont know if theyre going to hire a new head of product. It may not be necessary as much as jack is in charge of products. In any ceo transition you see this kind of turnover. This is twitter. He lives in a public space. They have a bigger glare on them right now. I dont think it is anything unusual. It was a regular company no one would notice. Sara jack has another job so for him to be the product visionary at twitter it takes on a lot. Om he felt compelled to take on this responsibility. He feels that he could turn around twitter. The presence of a founder is always very helpful. Whoever the founder is. Theres a certain level of empathy that is acquired. I am not really that upset about these people leaving. They have moved on to the next big thing. Emily i want them to succeed the stock continues to drop. Do you think jack dorsey can turn things around . David i dont know honestly. I hope so. I think this is a little bit unusual in the sense that it is not a sinking ship but it is a ship that has a captain that is really eager to make big changes. He has a vision of twitter is a fundamentally consumer oriented company. Unfortunately that is not really what has been functioning as. It may be that the people who have left are people who more or less they go it believe has been. Emily does twitter become a bigger part of the conversation . Om there has been only one successful turnaround ever, and that was apple. That was a longshot done by steve jobs. It could easily have gone the other way. We came in bringing up steve jobs but technology is not really about turnarounds. In the case of twitter we have to leverage the expectations. Not every company has to have a billion users. Not every social Media Service has to be as big as facebook. It has been in the same place for a very long time. It needs to start making incremental movements leading up to big changes. In order to be relevant. They dont need to be a billion user company. They could be a 500 million user company. That would be just fine. The lack of growth is because there has been a lack of creative thinking around how to get it moving. David twitter remains way too hard to use for ordinary people. That has to change. The same problems that ordinary people felt from the beginning are still there. Jack thinks that a lot of people should be able to use twitter just by reading what other people tweet. He hasnt conveyed that. I am amazed at how many people dont even realize you can use it that way. That is a serious problem. It was never going to be the size of facebook. It could be a very Much Bigger Company that it is. Not the way functions today. Emily u. S. Stocks slipped on monday after their first weekly advance this year. The bottom fell out of the markets right at the end of the trading on monday. Breaking a twoday winning streak from last thursday. Oil was to blame. The pci crude also hit another low. Breaking its best twoday rally since 2008. The nasdaq also down. The industrials and Consumer Staples were the biggest laggards. Down more than 2 . Whole foods fell 5 . The stock was downgraded to underperform. Sandisk fell to its lowest point since october. Cl essays said it would be very difficult for Western Digital to walk away from it sandisk acquisition. Seagate fell to its lowest point since 2012. Western digital fell to its lowest point since 2013. After jeffries said it is pricing and extreme bear case for the stock. The retailer should be earnings expectations due to strong amazon prime adoption. Emily job cuts are on the way at sprint. The wireless carrier is reducing its workforce by 2500 people or 7 of its total staff. Part of the 2. 5 billion costsaving plan. Shares of sprint slid on the news. Concerns that the progress in attempting to turn around the company sent stocks and bonds plunging to multiyear lows. Are apples growth days behind it . Emily ahead of its earnings report, apple is bringing out a product that will have faster chips and more capacity. Perhaps a new product will help revive apples stock. Investors are craving signs of growth. The shares are down five and a half percent this year. Down 13 since the last earnings call. Can apple get back to blockbuster growth, and where with that growth come from . The broader markets are also down. Crawford i think that apple will be able to develop some growth but that growth any aggregate in the overall smartphone category i think they will struggle to get over 5 growth Going Forward over the next few years. When you think about all the product cycles that they are going through right now. They may see individual quarters when they grow up to 10 . We are going into a new era now. It has different growth associated with it. Make no mistake. They have built an unrivaled unparalleled ecosystem and that system will continue through disproportionate amounts of value to apple in the years coming. Emily we know theyve been working on a car. What are the chances that apple can create another blockbuster category like the iphone . David i think the chances are pretty good. We dont know what might be. I dont rule out the possibility that it could be the watch after it goes through a few more iterations. Cars are huge opportunity for apple. If they really do well with the software in cars they could get out of this cycle there in right now. Where they are a Hardware Company with the much lower margins than some of the companies there compared to. I am optimistic about their ability to make big product category changes. Emily could the watch be the next big product category . Crawford not anytime soon. Wearables will be a category. But it is more likely than not in commercial applications. Eyewear as well as other kinds of wearable devices. As far as the car is concerned apple may want to buy tesla but think they would only do it for ip. Then nailing the software for cars is really important it is about them collecting data and then making better predictions from that data. Better proximity decisions. Knowing what your context is. That means leveraging back to that smartphone ecosystem because they will be a lot more smartphones moving in cars that there will be cars with apples operating system anytime soon. It comes back to them expanding the smartphone category. Emily apple has been the subject of so many perception shifts. Is apple at risk of becoming a victim of this shift where it becomes more of an intel or an oracle and not a growth stock . David i dont think that is the way to think of it. Apple is a Consumer Company with perhaps the greatest global brand. Those other companies dont have anything like that. Apple and worst could start selling other stuff that maybe isnt even is good but it has this amazing perception that could help it in a lot of businesses. I think the problem is not so much that it is becoming a value stock is that it is a hardware business and they dont have a killer new product. Emily alphabets closing in on apple as the worlds most valuable company. Could alphabets surpass apple as the most Viable Company . David i think it probably well. If things like that matter. Google has a Software Business and those things can grow. The markets are extraordinary. Google is doing so many things right. We dont have the fundamental concerns about them that we have about apple. Emily thank you. We will be all over Apple Earnings later this week. Spotify is on a roll. Now it has web videos. We will tell you all about it next. Plus Driverless Cars are put into overdrive thanks to some serious investing in Artificial Intelligence. We will see how it stacks up to google. Emily spotify is ready to expand into the video streaming business. It will launch an android video content apple later this week. With the ios counterpart coming next week. It consists mostly of short clips and content created by spotifys partners including espn and the bbc. Lucas we know what they said last may when they held an event in new york to announce this. They were partners with lots of Traditional Media Companies such as espn. It is not just music videos. It is not just adding to the music part of the platform. It is also entertainment videos. They talk about the free service as a funnel for the pay service. They are trying to offer more in this free service so they can bring in more users and hopefully convert them into paying customers. Emily some companies are developing original music themed series. David i will do have to remember when mtv actually played music videos. I think it could succeed. People are giving spotify a lot of their attention. If there is video they are the grips people i think they will watch it. Theres every reason to think that they like so many other players were trying to move up can do that. It wasnt the first thing i thought about. The more i mused about it, i realize its a real possibility for them to succeed. Lucas what it takes to stand out tends to be original content. Something nobody else has. Youtube is the king in this area. Because they have every video imaginable. Facebook is popular because it has users on there for something else. With spotify they need something sexy to bring people in and make them realize there are videos there. It is not a nap where people are spending hours actively scrolling through spotify. You tend to pick something in put on right away. They will need some compelling programming. My first reaction was that this was good for their business. Advertising supported audio stream is not that big. Spotify makes money charging people for subscriptions. David it is very possible that they will eventually show video ads. The highend of the tech business is where so many of the Bigger Companies and the more ambitious companies are trying to do a wider variety of things. Spotify is clearly not exempt from that. They construct doing all kinds of entertainment stuff. Maybe down the road they will compete with netflix. Emily they say that clothes make the man. Who likes choosing what to wear to work . It is never a problem for some people. Oh remotes, youve had it tough. Watching tvs get. Sharper. Bigger. Smugger. And you . Rubbery buttons. Enter the x1 voice remote. Now when someone says. Show me funny movies. Watch discovery. Record this. Voila. Remotes, come out from the cushions, you are back the x1 voice remote is here. Angie asian stocks have reversed a two date slump a two day slump. Also though Third Quarter also thirdquarter gdp figures are treated. The correlation between shares and oil prices is at its highest level since 2013. And the malaysian Prime Minister has been cleared of corruption and the case is now ordered closed. This follows the discovery of hundreds of millions into the accounts, claiming that it was linked to the struggling investment fund. The attorney general says it came from the saudi royal family. 470 million has been returned. Some bank of japan officials are said to be seeing a close call at this weeks policy meeting. Sources tell us the slumping oil prices has dimmed to the banks inflation outlook. Haruhiko kuroda plated down the impact of recent turbulence on the japanese economy. Authorities pulling out of japan due to lack of profit. The company says all operations in the country will be shut down by the end of the year and it will continue to offer customer support. Automaker to first react to slow sales in indonesia. Last year General Motors says it closed down in the largest car market. 24 hundred journalists around the world, this is bloomberg news. Lets check in on how the markets have been trading, here is the bond. Yvonne market jitters before the Central Banks meet this week. We are seeing the nikkei to g5 , hoveringght now around those lows as the shanghai stocks fall 2 in taiwan stocks also falling 1 . At a very bigity high right now, rising about 80 . The asian volatility indexes close to those numbers. It had thrown a lot of money in theose heathen plays, shanghai composite is now raising more fresh concerns about this selloff. The bank of america is expecting another 30 . Australia and india are shut for the holidays and we will see how rings go. Emily now to israel. A growing start up. A banner year for israeli on maneuvers. 1400 new companies are registered in the country raising a total of over three and a half billion dollars. The investment crowd funding platform is hosting the Second Annual summit. We have details in jerusalem. Elliott almost 3000 delegates from 50 countries braved storms to make it to this summit. It could be the biggest ever Investment Conference to take place in jerusalem. The founder i caught up with him earlier. A lot of passion here. How does so far, it is actually working in our favor. I do not think that will last forever, but for example, this came back from asia where the investor appetite, despite all the market turmoil was higher than ever. Part of it is wanting to get their money out of local currency and into currency that is local. Part of it is the sense that longterm innovation is where your money needs to be. It is not just in the public Innovation Companies, but it is in the private Innovation Companies because real returns today are in private companies. When youre broke or cause and says, i have a hot deal, uber at 62 billion and it is still private, the right response is telling your broker, why did you not give me this offer when it was 50 million or 100 million . The problem was it was not available. On sites like ourcrowd the field future googlers theyve raised under million dollars. I this time next year, they hope it will double. Emily now to europe. Switching gears to return to for a moment. That was a major theme of discussion at the World Economic forum last week. The argument is that as issues become more and more advanced we will see a big jump in productivity at the expense of many people. Losing their jobs. That will put pressure on wages and consumption and forest central bankers hands. Our guest host, David Kilpatrick is back from dallas. I wonder, how big a concern is this for the worlds most powerful voices and economics . Does this argument makes sense to you . David i dont know about the Interest Rate piece, but there is no question that a huge and quite consistent theme for several days of dollars was what will happen to jobs and a mechanized future. The robot is sized, automated future. I think a lot of jobs have already gone away and i think a lot of able are already saying that. It is not something that might happen, this is happening now. I just looked up the San Francisco airport train has no drivers and it has been there since 2003. I remember when i first wrote that, i thought, that is the future of jobs. There is a lot of concern among leaders about what happens when we, the eminent elite of the world start getting resented for continuing to make money when ordinary people do not have any income. That is what theyre worried about. Emily in fact, the World Economic forum calculated over 5 million jobs will be lost by 2020 and 15 major and emerging economies. On the one hand, you have people saying that this will be a huge change and it will be painful. On the other, there are people who say robots will not take our jobs, innovation is just going to create more jobs. Who is right . David everybody is right and nobody really knows. There is no question my opinion that new jobs that we cannot imagine now will get created as we move into a more automated future. The problem is the transition and him as everybody agrees that however optimistically you are about the longterm, theres going to be tremendous his location in the short term. Like i said, even one of the reasons we are seeing all of this uptake for donald trump and Bernie Sanders right now is that people are feeling that they do not have the jobs that they want and the incomes that they want. It is partly because of automation now. Emily it will surly be an argument to watch. David anchors are still ok, emily. Emily except on people start watching online. David could patrick with us for the hour. Free wifi, you can find it at starbucks and airports and countless coffee shops, but one place you would likely still have to pay is Luxury Hotels which are still charging customers