People. The report gives los angeles and bakersfield the worst grades. Global news 24 hours a day part by 2400 journalists in 150 news bureaus around the world. Bloomberg west is next. Emily i am emily chang. This is bloomberg west. Qualcomm cannot escape the gloom, facing a sluggish third quarter. We parse through the main takeaways. Google is back in the eus crosshairs as regulators take aim at android. How much could the case hurt googles business . Shelling out for one of teslas white model x cars. First, qualcomm continues to get hit by the slowdown in demand for highend smartphones. They forecast thirdquarter earnings short of estimates thanks to weaker than expected appetite for the most expensive mobile phones. Joining us from new york with a breakdown, cory johnson. What are the big takeaways . Cory if you have a smart phone, you have a qualcomm chip in them, almost guaranteed. The problem is growth has been shrinking. When you look at qualcomms revenue, we can see a decline steadily as the smartphone growth rates have slow down in china and all over the world. When you look at the percentage change, you see some indifferent. The percentage changes, we see things have been getting worse on a yearoveryear basis. That is bad news for these guys. What is interesting is they have figured out they can still make money right citing their business. Have a profit margin that is Getting Better as they had cycled through issues managing costs. Emily the Smartphone Market is obviously saturating. Highend smartphone sales do not appear to be Getting Better. What does that mean for qualcomm . Cory it means they have to manage expenses. They can see where this is going. They want to get paid better in china. They talked about progress in that matter. Customers that did not want to pay them in china, they have worked through some of that. Yesterday, we were talking about intel. They finally decided with the , they are going to have to cut jobs. I want to show you a comparison to intel and qualcomm. Intel, you can see times where they have had layoffs. You have layoffs announced finally at intel. Qualcomm, same situation. They did this in 2015. They could see on the horizon the issues they were going to have. Now they are getting the benefit with slowing sales. At least they are seeing profits increase. Reallys the management grasps the difficult decisions they had to make and made some of them to lower costs. Emily interesting. Cory johnson, thank you for that update. Google is back in the eus crosshairs as antitrust regulators file charges against the android business, saying being preinstalled is stifling competition. Caroline hyde has developed. Eu regulators are going to google, accusing them of wielding too much power with android, crushing competition in the app space. They have sent a formal antitrust charge to google, saying they stop competing Search Engines from tablets with the android operating system. Regulators accuse google of paying some players to only install googles search app on phones. The objections could lead to huge fines and major changes to the way google does business. The eu complaint about googles Shopping Service and is worried about phones being preloaded with apps. Partnerships its agreements are voluntary, and the android model is designed to be good for competition and consumers. This is the latest in a formal investigation by the eu, sparked by initial complaints dating back to 2013 from an Industry Group backed, at the time, by microsoft and nokia. Emily googles problems in europe date a few years before that. Joining me now are jack clark, who covers google, and mark maheny. Mark, you have been covering google for years. The eu made it clear they mean business. How much could this hurt google . This will continue to be an issue for google. Is no company, maybe with the exception of facebook, that has dominance in internet advertising, search, as this company does. Amazon does not have this market share. There will be other countries that will look at it in the future. What kind of impact could this have . It is impossible to tell. Just a fine is not a big deal for shareholders. A Material Change in business practices, unbundling of search from the operating system or a required change to the Search Engine results page, that could become material to google. Hard to know. Emily jack, where does this proceed from here . But the eune thing, has made it clear they are not happy with the business overall. There will be a discussion period. Reply,has 12 weeks to then a further conversation. Regulators have been signaling they are trying to be strong. They want to make an impact. They have suggested it cannot just be a fine. It has to be something that has the company behave. We do not know if it is going to happen, but if it mandates changes on the software, that could have Significant Impact on the ability to make money from android. Emily the European Commissioner has made it clear she is not going to drop this. Google has tried to settle on these other cases a few times. Listen to what she had to say earlier today. The remedy in this case is simple. It is to stop these practices that we find to be damaging for innovation and competition. Course, quite simple and straightforward. Yet, we have found evidence that it has been going on for quite some time. Loty google does not say a about how much revenue it gets from android, but we believe it is 50 . How much do you estimate . The number sounds high. It is in direct. If you did not have android, you would not have mobile internet today as it is. Are they one of the biggest beneficiaries of Global Internet . Absolutely. Internet revenue for google is probably 20 of total revenue. It is hard to calculate. Android revenue opportunity created is probably 10 or 20 . Emily do you think the accusations are fair . There is either voluntary bundling or there is not. Look at the eu fact sheet, about a page. The fact have been have not been publicly made available. ,f they are required bundling per European Union rules, maybe there is an issue. Emily are they voluntary or not . We have a document with htc that mandates as part of the manufacturer agreement they bundle certain apps. We do not know the back story and are waiting for the facts to come out. Being a profit driver for google, android keeps costs down. Because chrome is bundled with android, they do not have to pay to get searched people. , microsoft font antitrust issues for a decade in europe and had trouble transitioning into the digital age. They are still struggling. Could this hurt google over the longer term . A is it turns out to be distraction of management attention, it could. Be, withcould leviedft, fines were during the top of the desktop cycle. The reason microsoft suffered was not because of regulatory actions but because they missed the trend towards the internet. What could happen is when apps start coming unbundled is when the zuckerberg view of messaging and bots taking over there is the regulatory process can take it while. Piece about was a how facebook is the thing that google has to worry about right now. Mark, thanks so much. Jack, thank you as well. Trail toizon blaze a integrate Virtual Reality into news reporting . We will speak with the ceo of Huffington Post about their first acquisition in that space. Apple announcing it will delay its Earnings Release to april 26 for the Memorial Service of former board member bill campbell, died monday and was close to the apple family for many years. We will be right back. Emily Virtual Reality may be hitting the mainstream. As news and Media Companies dabble in the technology, exploring ways to create immersive video experiences for viewers. On wednesday, aol announced it is making its first acquisition for the Huffington Post. The company has agreed to buy riot, a studio in l. A. , for an undisclosed amount. Joining me to discuss the deal, Huffington Post ceo, jared grusd, and the riot ceo. How long have you been in talks . Thank you for having us on the show. We met in september at a festival in central park. I was struck by four different things. The first is his presence and leadership. The second is he was displaying some films in Virtual Reality. I was attracted to two things. Noveltygory was it a or a compelling way to tell stories in the future . Bryn shared with me the fact that he made 100 films in 40 countries. Finally, the overall mission. Huffington post has been a Mission Driven company to inspire and empower. The mission of riot has been the same thing. We thought this could be a tremendous partnership to do something transformative. Emily what convinced you to go through with this . What were the terms . For us, it was an absolute dream. The work that ariana did at Huffington Post blazed the trail for young Media Companies to come along. We have a wide audience of the people excited about the work we are doing. We are linking every story to Virtual Reality. It is the most exciting thing for us and a long time. We could not think of a better partner than the Huffington Post. Emily can you share more information on the terms of the deal and what your vision is for po verizonn the huff family . Ostwe are forming huffp riot. There are two pillars. The first is storytelling journalism. How can we bring Virtual Reality storytelling across each of our 15 additions to create one of the biggest Virtual Reality newsrooms in the entire world . That is the first piece. The second is in the context of building out capabilities. Bryn and his team have become worldclass brand ambassadors. Towill be working with riot build content for each of our brand partners. Emily what kind of stories or journalism do you think works best with this potential future of Virtual Reality . , the thingf the bat that is extraordinary is there has been a platform shift with the way we see video. , you are ableeo to move your phone around and see things in a way you have never been able to. The opportunity for how this technology will radically change news, documentary, journalism, across these platforms, you will see a shift. For us, that opportunity to bring this kind of technology to 15 news bureaus of the Huffington Post means our reach can grow. We can tell these stories. Can Virtual Reality, you step inside a story and experience the world in a way you have not been able to do with traditional video. You can see the scale of it. We are really planning on doing some amazing work together. Emily i spoke with areata about this last week. Verizon has bid for yahoo . If they buy yahoo , how do you see the media assets working together . Do you see much overlap between vertical . Huffposts i think verizon acquiring yahoo is for a different day and for a different set of people. We are excited about talking about how the Huffington Post is advancing our strategy with riot. We are excited about the things we can do together going forward. The opportunity between riot, aol, post, and verizon, to transform the world of storytelling is compelling. Ooser, jared grusd, bryn m thank you for joining us. Thank you for having us. Nielsen was the Gold Standard for tv viewership until the streaming industry upended i t. Emily nielsen just reported earnings. Sales and profits rose for mayor ago, but it is a critical time for the company. It is getting critical audience measurement off the ground, which would measure views from the vr and streaming, a major attempt to catch up with Media Consumption trends. There is still a standard like nielsens tv ratings. Fromng me now, mitch, stamford connecticut. The old business of serving people via nielsen boxes makes sense. Nobody understands how you will do this. How do you intend to measure streaming on phones, settop boxes, and get it right . Great to be with you. Thanks for having me. We are building on our historical strength, measuring television audiences. We are measuring viewing across all the platforms that consumers love so much. We are capturing that viewing, focused on video content, whether it is a tablet or pc, or a connected device like apple tv or roku. We are capturing all that viewing, measuring those different viewing environments, in a way that is comparable, so we can represent a total audience for the market is marketplace. Emily the service has been delayed. What work are you doing to make sure the information you are giving is reliable . We are on track with our rollout. Our products are in great shape. We have a growing number of clients receiving data, getting more familiar with it in the new metrics we are providing to clients, and understanding the impact on their business. We are working closely with our to fit with changes they are going through in their businesses and business models. We have stayed on track with the execution and rollout of the plan throughout the calendar year so far. The softwaretrue is preloaded onto phones and data is sent back to nielsen . If so, howd do you get information from settop boxes . There are a variety of ways consumers view. We have a variety of technologies and methodologies we deployed. If you are viewing the video versus ahrough an app web player or a connected device attached to your television set, each of these are different ways consumers view content. We have a different measurement methodology associated with each. What they have in common is a combination of big data sets that we have access to through our work with publishers like facebook and tencent. We combine that with high quality panelbased information to get the best of both worlds. We get high quality from our historically strong Panel Approach and the incredible granularity that big data sets provide. Emily it sounds a little big brother. Our viewers being tracked with consent . We are focused on privacy and respecting consumer interests around privacy. A privacy officer that receives all our product design. Wefact, one of our tenets is design respect for privacy into our product from the start. If you are a member of the nielsen panel, you are opting in to that service. We think that is important. Emily i presume you cannot track netflix data. Everybody wants to know how many people are watching house of cards. Only netflix seems to have that information. To what extent can you track netflix, amazon, and hulu . If you cannot, does not undermine the model because more people are watching shows produced by amazon or netflix . The growingf consumer interest in subscription videoondemand platforms like netflix, hulu to 63 of allw up u. S. Households that have a subscription to at least one of those services. We rolled out a measurement methodology that allows us to capture the viewing last year. Over the past several months, there has been tremendous interest from media clients. Emily we have to leave it there. We are getting a commercial break. Two michigan regulators and a municipal employee in flint have been charged with evidence tampering and other crimes in connection with the water crisis. They failed to discharge their duties. They failed. Theirailed in responsibilities to protect the health and safety of families of flint. They failed michigan families. Indeed, they fail us all. I do not care where you live. Mark michigan lawmakers have taken a step towards directing another 126 million to the water crisis, including 25 million to replace underground pipes. The sweltering heat that has gripped india for weeks has killed more than 160 people in the southern and eastern parts of the country. Temperatures are as high as 113 degrees in some areas with relief from monsoons likely weeks away. A tremor ravaged ecuador before dawn. The 6. 2 magnitude jolt was the strongest aftershock since the 7. 8 earthquake that killed 553 people. New diplomatic ties between the u. S. And cuba have led to an exodus from the nation. Thousands are hoping to take advantage of a loophole that allows any cuban that can make it to u. S. Soil can stay before politicians can end that decadesold policy. Powered byrs a day 2400 journalists in 150 bureaus around the world. I am mark crumpton. I am joined by paul allen with a look at the markets. Good morning. another better than expected day. Another unexpectedly from wall street. Not really translating into games over in new zealand. It is looking flat right now. We are expecting gains on the nikkei and asx. Locally, gains in oil and iron drivers. Xpected to be bys has been supported cutting production of mining forecasts. Mitsubishi dropped 15 on wednesday. They have been caught up in the emissions scandal. They will be closely watched at the open. That is some of what we are looking at in the asian pacific. I am paul allen from sydney, australia. Emily turning to china. Believesounder jack ma the chinese economy will remain enviable for 20 years. The southd this in China Morning post. Alibabas purchase of the newspaper was finalized. The cofounder said that the rapid growth of consumer culture could help china through temporary difficulties. How much of the slowdown we are seeing in china is temporary . How is it affecting funding environments . , hansith me to discuss tung. Always great to have you. Do you think the chinese economy will be enviable for two more decades, or will the slowdown have a pronounced impact . China is facing the reality of a new normal situation. They have gone from 10 a decade ago to 6 or 7 . Improvethat needs to before it can grow again. There are changes that need to be made in order to do that. Emily are you disagreeing with jack ma . I am cautiously optimistic. Emily what do you make of the fact he is doing an interview in a newspaper he owns . Interesting. They have been a harsh critic of what is going on in china. Now, you have a balanced perspective. You have a more prochina perspective. Overall, it is good to