The ceremony observed a moment of silence. Local news, 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. Bloomberg west is next. Emily this is bloomberg west. Coming up, apple pushing hard against a court order asking the company to unlock another iphone. We will bring you all the details. Plus, is the future of Net Neutrality under threat . We look at a new bill making its way through congress and what the new rules could mean. And japan rocked by the second powerful quake in 24 hours. We will check out what the rest of the world is doing to catch up. First, to our lead. Another tug in the tugofwar between apple and the fbi over encryption. The Cupertino Company refusing once again to help investigators hack into a phone, reiterating its court case. The governments need to substantiate its need for apples assistance alone provides more than sufficient grounds to deny the governments application. The judge sided with apple. What does this mean . In ais is the next round debate or fight which is going to go on for a long time. Is fundamentally that this phone is running an older operating system than the one in the San Bernadino case. If the government could hack into that one, why honor can they not hack into this one . Exactly. Why can they not get in . The one slight difference is 5s, and thephone one in San Bernadino was a 5c. Im no hacker. I do not know exactly what might be possible. Potentially, that might be the fbis defense. We do not know. And this iphone is involved in a drug deal or narcotics case . The individual at the heart of the deal, while it has not been close yet, has pled guilty. The argument of the fbi is that it will help them investigate further. Interesting. We will talk about this a little more with you later in the show, but thanks for that update. The house of representatives passing a bill that would stop the government from being able to regulate how much we pay for Internet Service. This is a measure that would overturn that neutrality, a principal the Tech Industry has fought to protect. Net neutrality makes it illegal for Companies ProvidingInternet Service to favor or block one type of internet traffic over the next. For more on the latest developments in this case, i want to bring in our Bloomberg News reporter from l. A. Layout how what happened today changes the battleground for Net Neutrality going forward. Lucas it does not change anything immediately. You remember from citrix when you are in middle school, the senate would have to pass this bill. It has to go through both houses, and the president would have to approve it as well. Somedent obama has voiced opposition to it. It is possible that he could veto it. If it were to get through, it would mean the concern on the part of a lot of the Tech Companies you mentioned like against it, are that the rate could be defined really broadly, that the fcc would not just lose the ability to set rates for broadband providers in the traditional sense, but that it would lose a lot of regulatory abilities. The president also today through weight behind the idea that consumers can buy cable boxes from anyone they want. They do not have to get them from Cable Companies. This is something Cable Companies have then fighting for a really long time. Explain how this undermines cable providers. Lucas if you think about how you subscribe to cable now, they deliver you a box, and you have to pay a monthly fee, and you have to give them back the box when you are done. Instead, you could just buy a box, and that is how you get your tv. Comcast or time warner lose control over the box and no longer get control over those fees. It opens the Playing Field for someone like apple, amazon, youtube or google, i should say, who not only sell their own versions of boxes but also have been flirting with life tv services. Live tv services. Joining us. S for i do want to continue this conversation. I think sometimes peoples eyes glaze over when they hear the term Net Neutrality, but can you lay out for us once again why is this so important . How it affects consumers and businesses involved. Is an internetea Service Provider cannot show favoritism to one website over another basically, all traffic would have to be given equal treatment on the internet emily . Emily how would that impact me as a consumer . Impacts you in that you do not want your Service Provider to play favorites. If you have a preferred website for, say, gaming, you do not want your Internet Service provider to be giving your favorite website disfavorable treatment in relation to its own. Emily this is something the Tech Industry has very much supported. A change in Net Neutrality could drastically impact a company like netflix, for example, but at the same time all this work is being done in the obama administration, could this all be overturned by a Republican Administration . Yeah, that is the interesting thing. All of this is coming to a head right when one president ial term is ending and another will begin. Hal d be curious to ask it feels like one connecting thread between this bill that is pending in congress and the settop box issue is the cable and Telecom Companies have fought Net Neutrality rules and this settop box rule change a very hard, and we thought those uys were on the outs in d. C. They had lost favor, lost power and i wonder if they are fighting against these latest moves, reflexing their muscles in d. C. Hal . lets start with the settop box proposal, for example. It would be an attack on cable providers and telephone providers offering video service. They have to pay a lot for programming rights to distribute over their wires. The google proposal would allow google to basically get this content for free and repackage and resell it, so of course they are crying foul. Google could compete on the same terms if they wanted to. In fact, they do in certain but that requires great capital expense. They have to dig up cities, lay the wires, by the content, and that is extensive. Alternatively, they could compete like netflix or hbo, but again, that requires creativity. You have to design your own original programming. So they come up with a third way, which is ask their friends at the fcc to let them get in between Cable Operators and content providers so they can basically resell this content as a third and even superior strategy, in their mind, for free. What do you make of the strategy that it will take a long time for cable boxes to does it and ultimately, even matter . Singer it will not have an effect on video prices. It probably will not have much. F an effect on settop boxes people are finding consumers are finding other ways to bring video into their homes. Emily we have to leave it there, but of course, this is an issue we will continue to cover and obviously a very important one. Our bloomberg gadfly columnist is sticking with us. Suitors are really interested we will take a look. Emily potential yahoo buyers have until monday to bid for the companys web operation. The sale comes as the ceo comes under increased pressure. We find out why selling yahoo may be her best chance to salvage her legacy. Yahoo Ceo Marissa Mayer is at a crossroads. She can sell her company now for whatever money she can get or roll the dice on a revival strategy. Finding a buyer may be her best chance to salvage her legacy. Price alonetock might suggest she has been a success. Thanhares traded at less 16 when she took over in 2012 and then reached a high of 52 in 2014 before settling at about 37 in april, but that bump stems from Smart Investments yahoo made in two popular Asian Companies long before she was hired. Yahoo has become unprofitable and its outlook is only getting worse. Its financial troubles have sparked fierce debate about how much the company is worth. Yahoo is made up of three parts its asian investments in alibaba and yahoo japan. Depending on tricky value assumptions, the asian investments made be worth more than the company as a whole, which means investors could be valuing yahoo s web business at less than zero. Time is of the essence. Its online audience and especially its mobile audience is not growing. In short, nothing that Marissa Mayer has done has worked. For a dose of courage, she can take a lesson from her former colleague, tim armstrong, who. As struggling as aol ceo then he got an offer to sell the company for a 23 markup. The sale made him look like a genius, and now, he is helping lead verizons bid for yahoo . She could hop aboard the same liferaft that saved him. Emily monday is the deadline for all the bidders who want to throw in their hat into the ring. Potential suitors include the daily mail, verizon, private equity funds like tpg. We had heard there could be as many as 40 companies looking, but obviously, the number of actual bids will be much smaller than that. How many do you think will come . Rward there are people who kick tires, and thats what you do when a house is for sale or a company is for sale. When it comes time to put in bids, there will be a small number. They have made no secret arise and has made no secret that they are interested in web business has madeg verizon no secret. Erizon expressed early on that they were interested, and they do not seem to have wavered. , spoke to Arianna Huffington and she said she would absolutely like to see yahoo in the family and believes that verizon does have a longterm strategy that includes yahoo and the huffington post. Listen to what she told me. Yahoo is a hybrid, a journalistic enterprise, and a platform, and it owns tumblr, which i think is a great asset. As more and more people want to express their views in more than 140 characters, you have an Incredible Opportunity to use tu mblr to allow people to express their views. Is for us one of the most important monetization channels. Yahoo is not the only involved. Player do you know if we will hear about this on the Earnings Call . I cannot imagine they will say anything specific on the Earnings Call about the number of bidders or if the company will be sold or kept intact or whatever. Its hard to imagine they would say anything like that. Emily how long does the process take . Ovide its really unclear. The process is taking the clock is ticking a little bit because they are staring at a Shareholder Meeting sometime in june or july where an activist shareholder is trying to throw out the entire board. You can imagine a scenario where it aboard changes, the new board have new ideas about what to do with yahoo . Would they force a change in the Company Strategy as an independent company . Right now, if i were in yahoo s shoes, i might be looking to accelerate a sale and make sure it happens before that meeting because who knows what happens after that . Emily yahoo will be kicking off tech earnings. We will be looking at Domestic Subscriber growth, which has been slowing down, and they are trying to double it. Spendingw, netflix is billions dinal content, on expansion, and nobody knows when that will start paying off. What are you watching . Im watching two Things International growth is the priority for netflix this year. It will be interesting to look at the number of companies they added abroad. Remember, that very expensive. Customers in new countries are losing money outside the united states. At the same time, they are having trouble signing up people outside the united states, so i will be watching that, too. The number of net new isscribers in the u. S. Expected to be the smallest since 2012. They are spending lots of money to expand abroad, and at the same time, the profitable part of the company is not growing, and that makes it a pretty tricky position for netflix to be in. Emily we will be watching that next week. Just a reminder, you can always insight on they terminal from bloomberg. Coming up, fit bit is diving into gadgets, but the move could come with added scrutiny. And we are watching sun edison shares. Theres a reporter could file for bankruptcy as soon as sunday. Bloomberg news close vote is reporting that is one of several options for the struggling company to take. Fitbit is on a quest to become more than a consumer brand. Its next step turning into a Digital Health company. The Company Already faces a lawsuit over heart monitoring. Could this venture bring on additional scrutiny with the fda . Our bloomberg Senior Research analyst joins us to talk about it. Fitbit has a number of different uses diabetes monitoring, weight monitoring. Er doctors are using it to check heart rate history. Do they really have the Clinical Technology or clinical edge on other companies that could make this transition to a Health MonitoringCompany Actually happen . Cases ofis common use monitoring, they would compete with other technologies already available, but if they are targeting niche markets, just because they have this advantage, also targeting maybe we have been looking at niche markets like the medicare population and so forth where they might find applications just developed for that. Emily we recently spoke with the ceo of fitbit, james park. Listen to what he had to say. Ark we are not just wearables company. We are a Digital Health company, focused on helping people achieve their goals. Our product roadmap is filled with the devices both wearable and nonwearable, that help people address those goals. Emily does it seem like fitbit is best positioned to do Something Like this, more so than, say, apple, which has the apple watch . Ovide it does feel like a big toy up from going to this people use to confirm how lazy we are to being a health care product. I imagine that takes a number of years to get Accurate Enough where you actually can be used in clinical or health care settings, and you are right that apple talks about the apple watch in almost exactly the same way as something that prevents disease or tracks your for your physician or that monitors glucose levels. It seems like all these Wearable Companies are moving in that direction where i imagine theres more money than there is in the kind of stepcounting category. Y emily they ultimately want to sell their technology to the medical industry. At the same time, theres a lawsuit that says heart monitoring information is wildly inaccurate. You have to get better if you want to take medical devices seriously, but i was having a conversation where they said scrutiny is relatively less than that of something more life dependent. Relatively, it will be less than those things, but from where they are right now, they will have to step up their game. Emily thanks so much. Rightloomberg west after this quick break. Show me movies with explosions. Show me more like this. Show me previously watched. Whats recommended for me. X1 makes it easy to find what blows you away. Call or go online and switch to x1. Only with xfinity. Im mark crumpton. Youre watching bloomberg west. Rescue crews are searching for survivors of japans second powerful earthquake in 24 hours. Saturdays magnitude 7. 3 quake struck in the Early Morning hours in the same region as the one on friday. The Nuclear Plant near the epicenter of both quakes is operating normally. Belgiums transport minister has of thed after the leak secret eu report detailing lapses in Airport Security oversight after the bombings in brussels. The confidential document says security measures were flawed and safety checks were handled poorly. Spains industry minister also resigned today, the latest top official to leave his post as a result of the socalled Panama Papers leak. Soria stepped down after giving conflicting explanation of his ties to a firm set up by mossack fonseca. Democratic president ial candidate Bernie Sanders attended a vatican conference in rome today, commemorating the anniversary of a land march teaching document from john paul ii. Sanders i am very excited to be here at the vatican, to have the opportunity to say a few words to the academy about the need for a moral economy. Mark senator sanders did not meet with the francis. His trip came just four days before the new york primary. Republican president ial candidate ted cruz discussed his strategy for winning the nomination and healing the divide within the gop. Say, if itz i will ends up as a contested convention, that we are in a majority. It is going to be critically important to keep the donald Trump Supporters energized and engaged. Mark the republicans hold their primary in new york next week. The Lower Chamber of Brazils Congress is debating possible impeachment of president tomorrows half. Lawmakers batching impeachment say the administration violated fiscal rules to shore up public support. Hundreds of cabbies set up roadblocks and when osiris to aires to in buenos protest