The white house was placed on lockdown for about an hour. President obama was not there at the time of the incident. Mexico has approved the extradition of a drug lord want keen El Chapo Guzman to the u. S. The extradition can still be appealed. Global news 24 hours a day powered by 2400 journalists in more than 150 news bureaus around the world. I am mark crumpton. Bloomberg news is next. Anna emily im emily chang, and coming up on bloomberg west, private investors and had an insatiable appetite for shares. But it secretive, private stock fell. A look at what happened. And shares are through the roof after fine materials beat on quarter to earnings. And can instagram take on the likes of amazon and google . We will speak to the ceo as competition in the greater Delivery Market heats up. But first, to hourly. The private tech stock has called off an opportunity for everyday investors to buy uber shares. A spokesperson for the company said it became clear the minimum funds would not be selected for this deal, and as a result the sales team began to inform interested clients about this fact. Here is how the transaction would have worked. Investors shell out for a small stake, until of their goes public organs acquired uber goes public organs acquired. We get a glance into the increasingly complicated start investing. Looking to buy hot Tech Startups before ipo. Uber declined to comment on the proposal. But when it learned of an authorized shares on the market, a contacted people involved. Newcomer, now, eric who broke the story, and our guest host for the hour, for evernote ceo phil litton. Gentlemen, thank you so much for us. Eric, i will start with you. What happened . Eric i think there is demand for uber. And they wanted to sell the shares. It is sort of a very complicated financial vehicle. They say they just could not get enough interest. I think uber is very actively policing what is going on. Emily did they not get enough interest, did they get discouraged from doing this . Eric i got my hands on some of the documents. They said the deal was off. They have been briefing people on it as recently as last week. And uber, while they will lets say exactly what they do in this case, they go after people when they think there is sort of an on allowed offering. L, what is your sense of what happened . Phil i think the private secondary markets are hard to make anything out of any particular action. Buyers versus sellers, but it is traded at fair value, in private secondary, it can really be anything. It could be a small number of sellers, but even a seller with an agenda. But it just did not happen. Emily where were these going to be shared . Phil it was not very clear in the financial documents with the buyer. Little the buyer understands. There are 10 pages of risk factors, but they do not say much about uber the company. Is it the risk in china . What do we have to think about this already complicated investment structure just to have access . Emily this is something that came about because of the facebook ipo, the sec started looking into it. Mary jo white had this to say about secondary offerings back in 2012, warning of potential challenges. Take a listen. Mary care should be taken to avoid these issues. In the new secondary market that is emerging, structured largely around derivative contracts and other novel ways to capture the economic interest in the preipo Company Without actually transacting in its stock. And depending on the structure of these derivative deals, errors and misconception evaluation could be amplified. Whether to leverage or simply be contracts built on faulty valuation. The sec be, should concerned about any kind of secondary offering . Phil this is an area that will have involving regulation and legislation to secondary. Fferings think of it is to give employees, founders, private holders a way to get some liquidity and longerterm healthier companies. But it is very much in the early stages of regulatory. Emily facebook did a lot of secondary offerings. At a certain point, they had to ultimately go public. Because they had so many investors. Public, they did go they do not have enough. Of course, shares have tripled since then. But is this a dangerous phenomenon . The longterm trend is what secondary companies do. They delay how long it takes them to go public. They can stay private for little longer. That is good for technology companies, because markets are so shortterm focused, and Tech Companies need to plan years ahead. If a company can get out one or two years of being private, and secondary offerings are a big part of the. In general, that is a good thing. But there are clearly opportunities for mistres misch. Emily how long will it be before the employees and investors can get real liquidity . Before the ipo . I think the company is starting to entertain processing secondary. A lot of the employees have joined more recently. In terms of a Public Offering where the best majority is real liquidity, it could be years away. I think the ipo is what people need to focus on when they think about liquidity, and that is still some time away. The vast majority of employees, uber is still saying not anytime soon. I think the ipo is what people need to focus on. Emily how do you manage that early stage of the company, and how is that for people that have been committed for years and years and have not seen an exit . Phil it is tough. The best motivator of talent and financial. It is always a distraction to think about your share price. Whether it is private or public. And the secondary, if you handle it well, it is a nice way to even out some of that stress. Emily well, it is a story i know that eric will keep following. Eric, thanks so much. Mel, you are sticking with for the hour. New story, repricing Stock Options without shareholder consent, a move that is a urgent in the event, or in an option exchange program. The decision is meant to protect shareholders, while providing an incentive for talent stay at the stock price of twitter stumble. Remember, back in october, Ceo Jack Dorsey handed over a third of his twitter shares trading at around 30. They closed 14. 43 on friday. Coming up, Applied Materials shares soared the most in seven years after reporting earnings. What are investors so excited about . Plus, in the age of uber for everything, do we need so many ondemand delivery startups . Instacart ceo joins us to explain why his company will stand the test of time. Emily Applied Materials shares jumped through the roof on friday trading, the largest gain in seven years, after eating beating earnings and revenue estimates for the second quarter. The display industry saw a whopping 3. 45 billion in new orders. The companys machinery is used to make parts for processors and memory chips that are at the heart of the iphone and flatscreen tvs. Here to discuss what is behind those booming numbers is the Applied Materials ceo, gary dickerson, joining us from Applied Materials headquarters in santa clara. Still with me is phil libin. Reported over 50 rise in orders, while the rest of the industry is saying it is going to be flat. How on earth is that possible . Gary as you said, our orders were at 3. 5 billion this last quarter. And we also guided about 25 higher than the highest earnings we have ever had in the history of the company. Really a tremendous performance. This is really not an industry story. This is really an Applied Materials story. We are seeing some of the biggest changes we have seen in decades in memory technology, where applied is the best positioned company to enable these changes. Were seeing big changes in the display industry, moving toward organic led. And also china is another big wave for us. So, all of these areas, memory, the display, china are really big changes, big inflection. And we are the early innings of those changes, and it is really a unique Applied Materials story, relative to growth in the inflection. Emily display making machinery orders surge to record numbers, is it the iphone driving this record level search . What is driving that . Gary it is really the change in the mobile products to organic led displays. What were going to see is used a huge transition over the next couple of years. That will drive a massive change going from lcd to organic led, flexible displays. And applied provides the technology, the new materials that enable this major wave that is coming in mobile. And really again, this is a unique applied story. Applied is far and away the best positioned company as this transition happens. Phil gary, there is a lot of interest in vr. Do you think that drives Additional Technology . Gary you just heard google this week talking about Virtual Reality. I do not know if you have had a chance to experience any of these types of Virtual Reality or augmented reality devices and the applications are really fantastic. What they are talking about to enable the devices and have an experience, a great user. They are moving toward organic led. And i really think again we are in the early innings of this particular inflection. And we are working with companies, Big Companies on secondgeneration thirdgeneration technology that will make the experience even better than what we see today. So definitely, this is another one of the drivers of the display industry. Emily you have talked about china being a strong driver of growth for chip machinery orders. Are these Domestic Companies or Foreign Companies moving the action to china . Gary so we have doubled our revenue in china over the last two years. What we are seeing is very strong growth. We have very strong positions in china. Applied materials was the First Company to establish a presence in china. 30 years ago, we opened our first office there. And the team we have, the relationship we have with us both domestic and Multinational Companies is really outstanding. Certainly, we are seeing growth in terms of Domestic Companies. But you also see many companies, Multinational Companies, establishing a presence. Samsung, intel, we expect that again we are still in the early innings of Phenomenal Growth in china. It is our strongest region, relative to market share. And applied is in a great position as this wave moves forward. Emily Applied Materials ceo gary dickerson, thank you for joining us. Libin, my guest host, is staying with me. Now, to this day in tech history. On this day in 1873, San Francisco businessman levi strauss and jacob david were given a pass to create work pants reinforced with metal rivets, marking the birth of one of the worlds most famous garments, blue jeans. Fastforward, 143 years, levi and google are partnering up and announcing a new connected jacket. The smart jacket will allow wearers to do things like control their music, answer phone calls, access navigation and more all by tapping and swiping on the jacket sleeve. Coming up, we will run through the other big gadgets to come out of googles developer conference, from ai to Virtual Reality. That is coming up next. Emily a story we are watching. Chinese Internet Company spiked 5 after trading. After the morning post reported that google is in a potential partnership. Is currently the thirdlargest search platform. With this partnership, google could expand its influence in china. And staying with google, the Developers Conference officially wraps. Now, the tech giant showing out the major bets on ai assistance that can be accessed with a messaging app. They are also showcasing new hardware for home and Virtual Reality. So how soon will these investments pay off for alphabet. Minnie ingersoll joins us now. She spent over 10 years and google and helped to launch google fiber. Ofll with me, phil libin general catalyst. Google announced a lot of things. What are the things that stood out to you must . Minnie sure, i think it waa little bit less about any particular product that was announced. And really google painting its vision of the future and of innovation. And i think what i was at google 10xtalked about larry pages mentality. Better driving spirits or artificial breakable with the talked about was a better way of interacting with the world. Emily i know you are obsessed with this, something you have been looked at closely. What you think . Phil i think the ai is the new platform. It will be what powers the next level of growth. Challenging bots be for googles ad model . Them . Ds challenge as we get closer and closer to what people actually want, it is harder to inject with people do not want. Which are advertising. Emily what do you think . Minnie i think it would be great, fine if we up and the advertising model. I do not think we are way to having to click on and out in pay for that impression. Emily what about Virtual Reality . Google has this whole new ecosystem, daydream. How promising is it . Minnie i am extremely excited for it. If you have ever done a demo, and you are roasting at a boxing match, and you hear the crowd roaring behind you, i think that is the future. And i like that google is building a platform for developers. I think it enables a lot of entrepreneurial. Spirit. And a lot of startups can go out and build on top of the platform. Emily it is actually kind of exhausting because it is so realistic, but it is still very crude, at least the demo that i tried. And i wonder, obviously, this is something that facebook is already deep in. Apple is looking into Virtual Reality. Amazon as well. How well positioned are they going to win in this space . Phil i think googles position to make a great product. I think they are going from impressive to being fun. I have had a load of the Vr Experience for a years, and before it was just tiring and nauseous. This year, a lot of the experiences are generally fun and enjoyable. And i think that is how we know it will become mainstream. Emily what about google home versus amazon echo . Minnie again, i think it is a different way of interacting with the world, and that is exciting. We are going to talk and have context that google can provide better answers. Many of google products, we all had email before gmail came is not aboutnk it being first to the space, i think google has a lot of similar dna to amazon in a lot of ways. It was a nice shot out. Phil it was a high bar for google. Amazon did a great job with echo. It is the first conversational thing people have. It is great to see google in the space. Emily i love amazon echo. So, obviously, a lot of these things are cool. But which of them are the most likely to turn into an actual business . Or big business . Minnie underlying all of this, i think google is putting this first. But they will have to figure out how to monetize it so. I do not think googles dna is about doing something good for users, and monetization will follow. But i will be interested to see how that works for them. Phil i would to know what you think about cars. The cofounder of shift, are you buying and selling used cars, and google is working with self driving cars. Do you think the whole concept of car ownership will change fundamentally . Over the next few years . Minnie yeah, so when i was a google i got to take the old version of the self driving car home sometimes. It was great, but it was essentially like a more sophisticated version of cruise control. And i dont i dont like it. Minnie you take your foot away from the break, because you would want to step on the right. But car ownership is not going anywhere. We have not seen a decline. 60 million cars are sold in the u. S. Every year. But when it happens, they will be happy to buy and sell your a autonomous vehicle. Emily we didnt hear a lot about cars, is that something . Minnie we did not hear much. But there was one on display. I think youll be seeing them more than we will be hearing about them. Minnie ingersoll, shift technology ceo, thank you for joining us. A longtime googler. Phil libin is still would be. Next up, we dive into the world of food delivery. We will hear from the ceo of instacart about what he is planning next. And if you like to listen to radio, you can hear us on bloomberg. Com and sirius xm. Mark i am mark crumpton. You are watching bloomberg west. Let us begin with a check of your first word news. Reportsciated press european purity Officials Say the flight manifest for egyptair flight 804 contained no known names on the terror watchlist. The manifest has not been officially verified. Officials say it is still too early to tell us what brought down the flight from cairo to paris. It had 66 people aboard. Egyptian officials expect terrorism. The reclaiming of the small western town by iraqi forces is being seen as a symbolic morale booster. Islamic state had occupied the town for the past two years. The iraqi army says the main road from oman to baghdad, a significant economic lifeline for iraq can now be reopened. The United Nations have agreed to make it easier to suspend its Visa Waiver Program with some countries. It comes as turkey is trying to secure visa free travel for his citizens. The socalled suspension mechanism would come into play to ensure security. It would apply to georgia, ukraine, kosovo, and turkey. British prosecutors say the man who climbed over a Buckingham Palace wall and wondered the ground for 10 minutes on wednesday was a convicted murderer. The intrusion triggered a police sweep with dogs and a helicopter before he was apprehended and detained. Several intruders have breached palace security over the years. President obama is trying to ton out the heat on congress be the zika virus. He told lawmakers, they have to get moving. President obama this is something that is