The first time in 15 years. Is warning itp will post a net loss in the Fourth Quarter and its first fullyear loss of almost two decades. In coals the tumble prices for additional 1. 2 billion in impairments and charges. It is also morning that cold may be priced lower for longer. Those are the headlines, powered by over 2400 journalists in 150 bureaus around the world. Lets take a look at the markets right now hong kong and china closed for lunch, but that global rally has snapped in the morning session. This is a picture of tokyo and mumbai. Emily i am emily chang and this is bloomberg west. Google is back in the hot seat with the eu. How the search giant plans to respond to Mark Zuckerberg plans to respond. Mark zuckerberg is going all in with vr. Do americans agree with tim cook or the fbi . We find out. Now to our lead, a new chapter in the ongoing battle between the European Union and google. They are adding on to existing antitrust investigations into their mobile operating system and shopping services. The eu has been quizzing people involved about googles behavior. For more insight into this story, i spent the day at the google plex with Hiroshi Lockheimer. I started by asking if he would have to alter googles business relationship with hardware makers or App Developers to navigate heightened antitrust in europe. We want to work with the relevant authorities and educate them how android and the industry works. In terms of what is to come, it is hard to predict. We think there is a lot of confusion and how the ecosystem works. It has that existed before. Its never been done before. It is a new thing and we are learning together and learning with the relevant authorities. I dont want to predict what will happen in the future. Emily are regulators confused . I dont know if they are confused, but it is a new thing. There is the template. It requires a lot of discussion and dialogue so that everyone can understand how it works. Emily girl is that emily is that something that you plan to fight . I dont know about fight. We are in discussions and that will continue. Emily the eu is taking a hard look at google because of its dominance. Manufacturers choose to use android. Some manufacturers have chosen to use android in other ways. We talked to regulators, which i do not want to get into now. We think it is an open ecosystem and makes it a choice for everyone. Emily what is your answer for regulators . Doesnt the goal of natural dominance put you at odds . There are certain markets were other devices do really well. I think it is casebycase and we understand their opinions on this and we work with them to get them our viewpoint. People have reviewed what we do and we have said it is fine. Emily google now, your version of siri, seemed a Big Initiative but we have not seen that much development. Is that less of a priority . I think it is a really important area. We launched google now with jellybean. It has been a while and one of the ideas hind google now is that typically when people think of google, there is a search box and they enter a query and get an answer back. But what if we flipped that around and started providing answers before they asked . That was the original premise. For instance, based on the customer providing access and granting permission, google now can learn it seems like every date you drive from this place to that place. Maybe that is your home and your workplace. It learns these things without the customer entering information. Emily amazon echo is getting rave reviews but they say why did apple or google not come up with this . I dont know if it is better than these other products. It is a very different use case. Echo is usually in your home. Google now was born on cell phones and tablets that you carry with you. They seem to be doing great. I think that it is an exciting space. It makes us want to sharpen our pencils a little bit more. Emily do you want to see android in the home like that . There are already a lot of Android Devices in peoples homes. There is now a refrigerator that runs android and other devices like your tv that run android. That is only happening and our goal is to interconnect these devices much Better Together so that the new experiences that can be invented. One of the realizations, if you look through your home, forgetting operating systems for a second, there are many different screens. Your microwave has a screen, your oven, your thermostat. They dont know how to talk to each other. If they could interconnect, there are a lot of interesting things that can be done. Emily what do you see as the future of android . A lot of these other products whether it is nest or self driving cars or cars in general, what is the future of android in our world . If you look at the future of it so far, weve also announced initiative around internet of things. That is where really interesting things can happen. If your car approaches your home, you can change her thermostat to your desired temperature. You can start imagining new things that could happen. Emily you can stay tuned for more of the exclusive conversation where we discussed google vr ambitions. Mark zuckerberg is sharing his excitement for the potential of Virtual Reality. Even just in gear vr, there have been more than one million hours of 360 video. On facebook there are people who watch 360 videos every day. That is happening. That is one part of the content ecosystem. I am pretty excited about that. Emily it wasnt all excitement. He expressed disappointment on indias recent decision to block facebook. Org as well as his relationship with telecom carriers. Sarah, give us the highlights of what he had to say. What are the main points . He said the infrastructure of the connected world can handle facebooks plan. That means people coming on the internet for the first time they are deploying this year around the world. On the flipside, he wants to lead the effort for 5g network. Emily white is facebook taking why is facebook taking the lead . That is interesting. They are not experts and dont claim to be but think about what they have done in the data centers. They decide they were not cutting it. Now they are building acts that are incorporating Virtual Reality and Live Streaming video. He talks about 3d video and that will need these networks. A what did he say about india . He said that he is disappointed. It will not stop them from using free basics in other countries. Emily disappointed, but not deterred. Sara, thank you for that update. We will leave you with this one photo from the conference that people have noticed. It could be a vision of our future if the Oculus Rift Team has its way. Emily one stock on the way down. That is fitbit after the latest guidance disappoints. Sales will be between 420 million and 440 million. The miss . Slower than anticipated global rollout of the blaze and to be alter the blaze and the alta. Movers and shakers are gathering at mobile World Congress to discuss the future of tech devices. Encoding a revamp of the smartphone as the market saturates. I sat down with Hiroshi Lockheimer for an exclusive interview. I asked him about googles approach to Virtual Reality and if there are any plans to expand on the lowcost cardboard. Cardboard we launched over a year ago and i think there are 5 million out there. Its the biggest vr platform in the world from that perspective. One of the important things about the art there is the are the technology and the content that is available. What weve enabled with this massive reach is developers of started to pay attention. In the end, that is what a customer will experience. They will experience climbing a mountain in their vr headset. Emily how would you rate the pace . Is it fast enough . I think it is fast. It is hypercompetitive. We try our best to keep up and bring new innovations and delightful moments to our customerss life. Innovation is high and i think it will continue to behind. There is so much going on which makes it hard to predict what is going on aside from new change in newer things that we cannot even imagine today. Emily what is it like working for a boss . What is his leadership style . He is an interesting guy. He has a lot more grace now i guess i do, too compared to 10 years ago. He is thoughtful and an organized thinker will stop i think he is exactly what the company needs. He is adept at all of that. Emily he can get in the weeds on what you are working on. How does that impact you . He doesnt micromanage of thats where youre headed with that but he does know a lot about platforms. Hes been doing that for a long time which really helps me. In many ways google is a Platform Company but also a product company. With platforms we work with partners and he understands both the sides of that really well and i find that helpful. Emily apple is the most Profitable Company in the world with a closed ecosystem. Why not make android closed instead of open . We think that the open approach is the right one in the sense that it fosters innovation, competition, differentiation, customization, and choice. Emily have you ever considered putting walls around android . I have never considered that. I see it as almost constitutional. We made the source code completely available. We provide our services on top, just like other companies build their services on top. We really think that the open approach is the right way to go. Emily the promise has always been mass ubiquity, cheaper phones and including india where you have hundreds of people that are not online. How is that going . Really well. We are seeing a lot of growth in all markets like the u. S. And newer markets like india. That is definitely one of the strengths of android. Every region has its own unique needs and desires. That is ok. The open model of android enables that. Emily where is it growing the fastest . Android is growing worldwide, but we do see a lot of growth in emerging markets such as india. Worldwide, depending on whose metrics you are looking at Something Like 70 to 80 of smartphones are android. Emily you know it is dominant it is criticized for being fragmented. Its interesting. We hear about that word a lot, fragmentation. There are a number of ways of looking at it. At the base layer of the operating system we have created the compatibility test. If a manufacturer wants to participate in the android ecosystem they have to go through a number of tests to prove that their device is compatible and not fragmenting from a developer and user perspective. It is an interesting point. The upgrade is something that is really important. Theres also a security element as well. In the summer of 2015, we started multiple security patches. Devices we were able to push these updates to. Also working with the industrys they have all publicly committed to doing these security patches on a monthly basis or some sort of regular cadence. We think that is really important. Security is important to anything and that is something we are providing now. What are the plans to merge android with chrome os . It is interesting because they started from different Design Centers and goals. They are successful in different ways. Emily google has been criticized for not making much money on android and it has been said that you will never make as much on mobile ads as desktop ants, is that fair . As an operating system, it is freely available. It certainly enables customers to do things on their devices that may result in revenue for google and other companies. That is how we look at it. When not going to charge for android itself. For third parties as well. Businesses thrive on mobile on top of android. Emily my exclusive conversation with Hiroshi Lockheimer of android. After the tragedy in michigan, we look at what you have to prove to become an uber driver. Emily to a story we have been following closely. Uber driver jason dalton has been charged with six counts of murder after a deadly rampage that left six people dead. Uber has said they are how broken but will not be changing screening processes. He had no criminal record and the uber chief Security Officers had no back rent check would have flagged or anticipated this situation. It had us asking, what does go into a background check . The must provide their Social Security number, copy of a drivers license, insurance, and proof of a vehicle inspection. An outside company, checker, conducts a background check. That check goes back seven years. They do not meet with them facetoface. Uber does not screen fingerprints which can lead to false positives and discriminatory results. The do have a panic button in their app and india but do not have one in the united states. They say they do not want to add an extra layer to reach Law Enforcement and do not think they can do better than 911. The uber of private air travel just raised new funding. The family had invested previously along with rapper jayz. The ceo likens the company to uber black offering private jet rides you can book from a smartphone. The latest funding he says will be used to expand in the middle east, asia, and europe. When we return, how much does travis see really matter to smartphone users. When youre on hold, your business is on hold. Thats why comcast business doesnt leave you there. When you call, a Small Business expert will answer you in about 30 seconds. No annoying hold music. Just a real person, real fast. Whenever you need them. So your business can get back to business. Sounds like my rides ready. Dont get stuck on hold. Reach an expert fast. Comcast business. Built for business. Bhp has cut its dividend for the first time in 16 years as they seek to protect their Balance Sheet and credit rating. Underlying profit came in at 412 million, which dropped 92 . It will cut its dividend payouts from . 62 to just . 16 per share. Will bepharmaceuticals correcting what it believes had been an error. The company says that 68 ouldion of net revenue sh not have been recognized. Valeant increased its eps by nine cents. Taken a dives have despite a pretax profit that more than doubled to 666 million in the first half of the fiscal year. It did better than analysts expected, in the higher range of the forecast. Cheap oil and the costcutting campaign spearheaded by alan joyce helps the results. The profits will be used in a stock buyback. We also benefit from trade congress initiatives. And american airlines, which we have a joint venture in. Both transformations are an investment in utilization of product and services and have really shown a dramatic turnaround more rapid than most americans expected. It is probably one of the biggest stories of these results. Aniggie those are the headlines from bloomberg news. Lets check in on how the markets have been trading in the asiapacific. That global rally really stumbled. We are seeing the regional benchmark erasing all the gains from the start of the session. Most indices have been slipping. The nikkei 225 down after the down,break, and the asx extending losses. 4. 7 , concerns that fuel costs could dent profits. 1 , ang seng down half of lot of this because the pboc, after lowering that reference rate by the most in six weeks, we we saw some weakness there, and that has sparked some investors to head to the haven. The gold is back in fashion as well. Where counting down to hong kong and china at the top of the hour. Emily i am emily chang and this is bloomberg west. We are the highstakes standoff between apple and the u. S. Government continues to evolve with apple saying monday that officials should withdraw the order. Instead apple is calling on congress. Members of the Business Tech community have been supportive of apple. Here is what Mark Zuckerberg had to say about encryption. We are sympathetic. We believe in encryption and think that is an important tool but honestly people will find a way to get it anyway. I think it is not the right thing to block that from the mainstream products that people want to use that will not be the right regulatory or Economic Policy to put in place. Emily at the same conference, the Consumer Devices ceo says privacy is a major issue for smartphone makers and he personally supports tim cook. While the industry is backing apple, the American Public is split with a new poll from pew research say a small majority sided with the government. We are joined with ryan reese and tim higgins who has been covering this story out of washington, d. C. I will start with you, what do you make of what way of wahwey coming out and supporting it does not surprise me it does not surprise me at all. I think that their points are right. You have to can protect Consumer Security or it is more detrimental to these technology companies. Emily yet, the majority of consumers do not care. What do you make of this Pew Research Poll . They want apple to help. 51 in that Pew Research Survey found they would support the fbi. Another survey they cannot late friday found 51 as well supported the fbi. But 41 supported apple. If you dig into their numbers you found there was an even split between people who look at the u. S. Terror policies being concerned they would go too far or not far enough. There is really uncertainty in the American Public over where they are on this issue. Emily tim cook has been speaking on this for a number of months. He made this his thing. Speaking to charlie rose a couple months ago, listen to what he had to say. There happened people that suggest we should have a backdoor. The reality is, if you put a backdoor in, that is for everybody. Charlie does the government have a point that if we have good reason to believe that information is evidence of criminal conduct or national security. If the government lays a proper warrant on us today, we will give the specific information requested. We have to by law. In the case of encrypted communication, we do not have it to give. Emily how hig