Are to be saving their own country, theres a need for genuine readiness to negotiate and compromise and be president at the next talks. This is the opportunity we would like to offer them. Mark the u. N. Announced it would resume a delivery in syria after they were suspended after a deadly attack on humanitarian convoy. House Speaker Paul Ryan says congress has the votes it needs to override an expected president ial veto of a bill that would let 9 11 victims sue saudi arabia. President obama believes the measure could leave u. S. Officials open to retaliatory lawsuits in foreign courts. For the second time in two weeks, u. S. Bombers flew over south korea in a show of force aimed at the north. Pyongyang recently tested its biggest warhead ever. Im Mark Crumpton in new york. Bloomberg west is next. Emily im emily chang and this is bloomberg west. Coming up, apples plan for self driving car is a tie with formula one franchise mclaren. How about electric scooter maker lit motors . We will discuss. Plus a flurry of startups pricing their ipos this week. We will look at how investors feel about deal activity in Silicon Valley. And president obama highlighting how text is driving growth in africa. We will sit down with one of the ceos of one of the countrys most promising startups. But first, a flurry of reports attempting to look under the hood of apple plus highly secretive car plan. People say the iphone matter is taking a strategic stake in mclaren. This brand is known for its formula one racing franchise. The Financial Times is reporting apple may want to buy the company outright which would likely be its biggest acquisition since its 3 billion beats. Mclaren denies talking to apple and the ceo said i can confirm is not a discussion with apple about any potential investment. We have learned apple is talk to buy lit motors and bmw audi are in hot pursuit. All of this is a secret. Apple acknowledged of its heartland, socalled project titan. Joining us is a William Blair analyst on the phone from chicago. And a Bloomberg View columns in portland. With me here is our Bloomberg Apple reporter. Lets start with mclaren. What do we know . What discussions have taken place . Guest we know apple is currently in talks with mclaren about some sort of strategic investment. This would mean bringing cash into the business and taking a percentage of the company. This would allow apple to choose one of the two paths they are considering for a car. Their own, org partnering with a another automaker and giving them the apple form. By partnering with mclaren, it opens the door for a future applemaclaren triumph. Emily this is a company we looked at in 2014. We interviewed the ceo. This is an electric Scooter Company. Why would apple want a Scooter Company . Guest after speaking to multiple people who are familiar with the company, we have learned they are really proud of their patent portfolio and have 10 patents specific to self driving. One of the components of project titan is the self driving system. And theirmpany customers combined with their Engineering Resources would be able to assist apple with that part. And self driving, the system behind that is critical. Emily of all the carmakers out there, mclaren is not into mass production. What do you make of both of these potential deals . Guest mclaren has been moving toward a lectern and hybrid technologies. Electric and hybrid technologies. That is part of the picture, but i think its interesting because apple is not getting into cars to be another car company. A very challenging and intimidating business. They have to be doing it with a fresh sheet of paper, like a being able to bring a new Value Proposition to mobility rather than just making a car. I think what both of these and applesflect, interest in them shows. I dont think apple wants to put its badge on mclaren or i dont think they want to make a selfleveling motorcycle. I think it wants to acquire both patents and intellectual property, but also r d capabilities which mclaren brings to the table. They want to take a highend, cuttingedge approach to developing their own vehicles, whatever they end up being. Emily how are you sizing up this news, especially given that cars in general are a low margin business . We have no idea what apple is working on. Guest good afternoon and thank you for having me. I come from the world of stocks, and as a stock analyst, the Gross Margins and profitability is something i focus on. You are absolutely right. Short of apple getting out a fullblown car with their end toend, getting out of this tough business, any initiative that would help the margins or the top line would be welcomed by me and my peers. I think it touches upon a very interesting point. I agree about the ip and the technology. But when we look at what is going on with automotive cars, i cannot think of anyone any one particular sector of our Global Economy witnessing some amazing transformation, whether it is the driving, electrification, fencing, infotainment, intelligence. I cannot think of any other thing. I think apple is putting a stake here. Theyre looking at it over the next 510 years, and as the other two gentlemen point out, you could have some very interesting and innovative outcomes beyond our normal sense of thinking of what is a typical car. Emily there has been a lot of the people within the organization at project titan. That layoutsted plans have changed. Latest you think is the in terms of what direction apple is really going . Guest when apple started work on this a few years ago between 2013 and 2014, it was run by an executive whos a former engineer of until 1999 ford. He came to apple, worked on many iphone generations, but this group is very focused on the car. Bob mansfield, who retired from apple, returned when the engineer left and organized the entire organization into three components. One, focus on self driving sensors, one focused on the hardware and the other on the software. You could theoretically see apple building a car platform rather than just a car. Now, apple has two different roads where it can go. It can make its own car start to finish, or it can make its own platform. What we dont know is what apple is going to do and that will be exciting to see in the years ahead. Emily apple is not the first to do a smartphone or tablet but they came to the market with Something Better than anyone else. Do you think it is possible in the car market when you have Many Companies that have a head start, whether it is tesla were google for these more traditional automakers that are presenting themselves as forward thinking . Guest clearly, what Companies Like tesla and google have proven is that Silicon Valley can provide the car industry with a real jumpstart. I think the car industry has become somewhat come out of five commodifiedfied and theres still a tremendous amount of innovation and its a challenging business. But it has lost the excitement that characterized the first 50 or 75 years of the automobile. Silicon valley is bringing them back, but tesla is showing this is really hard to, especially if you go at it. We are a Silicon Valley company and will go anymoreway. Production issues and quality issues tesla has and continues to face really shows how challenging this is. I think what apple has that other Silicon Valley firms dont is a focus and appreciation of the value of manufacturing, what it actually takes and the logistics. How much work that is. They dont do their own manufacturing, so a lot of people overlook the expertise they have in this area and its one of the mistakes, it is working to understand that is one of the things that separate apple from any other company in the valley. Emily apple as always been a supersecret company, this is one that goes all the way back to steve jobs. Does apple over wall street more of an explanation or our investors is going to have to put up with the secrecy . Guest in a nutshell, they can be secret if they want. I do not think they own anyone anyone oh anything to on some level. One of the secrets of apple and one of the fascinating aspects of apple was the ability to surprise. In that context, upside surprises, downside surprises, things we do not call into thought are things we see moving. We have seen a little more leaks but we see stock getting priced in. When we look back, i think they are fine. I think they should be secretive, they should not reveal their hands right away. Emily im sure we will continue to be surprised. Thank you so much for weighing in. Thank you all. Turning to a story of the following, the eu investigator is defending a controversial ruling that would require ireland to collect more than 2 billion in back taxes from apple. Critics say she was unfairly training her sites on american companies. We asked her about all of those claims earlier today for i earlier today. We are not in International Tax authority. I dont have control over taxation. What we do is enforce legislation that goes all the way back to 1958. Our Founding Fathers thought we should have control and any trust in order to have a fair competition and a level playing field. David apple says it paid an effective Global Tax Rate in 2015. How do you square the reason why are the estimate so different . The numbers we have are obviously apple numbers because when we do this kind of work, we go on the information we get from the company for i hope we will be able to publish as much of the decision as possible. It is now in the hands of apple in ireland and if they want to redact some of the things in the decision if they find them to be confidential, i think its better for everyone to put it out in the open the decision because then you can check as well as anyone else. David you talk about redaction, i wonder how difficult it is to get your hands on data like this . How forthcoming are companies with this kind of data . Brexit czar to the question asked that said. For them, none of this was public. Data control has been public ever since the beginning. The secret was the sample data in the apple data and tax rulings in question. David what has the level of dialogue been like between your office and apple . Was there a robust dialogue . How would you characterize the conversations with apple ahead of this decision . Works asd say the case a relationship between us and the Irish Government and the cooperation has been constructive and open. We disagree on the results of the decision, but to enable the conversion to take place, they have been accommodating. David could they face penalties as large as this or larger . If you had a smaller company, it would have been much more of a number even if they could do the same thing. David you met with treasury secretary jack lew and said it was a frankness that should you have. The Treasury Department submitted a white paper ahead of the decision and wrote a letter head of the decision as well. Are you optimistic there will be some middle ground with the Treasury Department here . I think we will continue to disagree on this decision. Also, because of the fact we have very different legal traditions, i have learned in the u. S. That it is absolutely the order of the day for a business to negotiate tax breaks with the state where they are situated. You have the clash of understanding about how this should be played out. Emily that was the eu competition commissioner standing her ground with gura. Ergs david coming up, a startup that a big on africas tech talent and earning a visit from Mark Zuckerberg in his recent trip to nigeria. This is bloomberg. Emily Mark Zuckerberg and his chan, arepriscilla pledging to spend more than 3 billion over the next decade work on during the. The facebook ceo took the stage at a Initiative Event on wednesday. Mark this is a big goal and we got this was really aggressively got started. But we spent less few years going out and talking to dozens and dozens of top scientists and experts believe this is possible. Emily bill gates also appeared on stage to support the new program. One of the things thats great about doing science right now is the enthusiasm and interest in doing science. Often, philanthropist in the past may have funded a hospital for some very specific disease focus, but now you see a lot of philanthropists the value of science to bring the solution from an early stage. I think bill gates has been a leader in this area. Mark and priscilla are stepping up and making a fantastic investment. Emily after the birth of their daughter, max, zuckerberg and 99 of their wealth toward philanthropy. Speaking of that initiative, the company that claimed his first Andela Andela investment was. The Company Secured it on in june and specializes in giving them fulltime role that International Tech companies. Technology and its role in spring Economic Growth to center stage at the Second Annual africa summit. The end a la cofounder joined in cofounder joining us, thank you so much. Explain it to us. I understand the acceptance rate and its harder to get into than harvard. Jobs for four years at various Technology Companies from facebook to google. Tell us how it works. Guest thank you for having me. Simple. We create a platform to find the brightest, most driven development to work with the world. We do that by providing data summary around the application process. We have had about 45,000 applicants to the program, we combine it with outstanding Education Technology and are creating a cadre of africa s first elite engineering teams. Emily i think that is interesting. Explain that, too. How many engineers are looking for work and looking for better training and hoping to get into the broader Technology Industry . Guest newly to look at it and of andela isbelief brilliance is pretty evenly distributed around the world. Part of the reason we started ratio was to change that and connect great engineers with tough companies. It turns out there are a bunch of really talented engineers, inhnologists, and scientists the space across the continent which is 1. 1 billion years old and the youngest continent on the planet. There are quite a few folks interested in this space. Emily Mark Zuckerberg visited on his trip to nigeria and im curious what you learned from him . How has it helped you . Guest mark and i spoke early on about andela and the education space. Mark and priscilla were interested because of the ability to unlock Human Capacity and expand Human Capacity around the world. He knows little bit about Software Development and we did not know when we were going into early discussions that there was a chance to help him on his first trip in africa to experience some of those extraordinary developers, but it has been a fun journey working with them on it. Emily africa has been plagued by blackouts and power disruptions. Not good you are in technology. How have you navigated these kinds of challenges and what needs to be done for things to get better . Guest there are components of that that are true but the reality of africa today is much different. It is very different from what most people think of it as. We had, for instance, a Better Internet connection in nigeria than i do in manhattan, right now. So yes, there are challenges, no question, but if you think about an event and how you are going think about it in advance and how you are going to build out the infrastructure and how you are going to work around those challenges, you can make an things happen. Emily how do you intend to scale this up . How you increase the number of applicants . Guest . 7 of over a billion people is a big number. Andela is not going to be facebook. We will never have a billion people working with us. That is not the intent. Its a mix of Rhodes Scholarship with pivotal labs for these engineers in africa. When we think about scale, it looks more like training 100,000 extraordinary developers over the next decade. With that process, i believe we can change the way the tech world views talent and what an engineer looks like. Emily fascinating stuff you are working on. Thank you for joining us. Coming up, we speak to the company of a cofounder cited as one of the most eagerly anticipated ipos in the pipeline for 2016. This is bloomberg. Emily bloomberg is teaming up with twitter as the exclusive streaming partner for the 2016 president ial debates, starting with the first debate on monday. Tune in or follow the politics. If you like Bloomberg News, check us out on the radio. You can listen on the bloomberg bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. He said it is in the public inflation, deliver and policymakers are not inflation lovers. Hasthe september rate hike been passed upon, as expected. Expected toase is be seen before the end of the year. The decision was far from unanimous, with three of the 12 members voting for an increase. This is all the more appropriate given the shortterm Interest Rates. This means we can more effectively respond to strong inflation pressures in the future. Korean air agreed to provide emergency funds. 50 million is going to be supplied immediately, but the forper needs 10 times that fuel and Cargo Handling cops costs. News, 24 hours a day for 120 countries. This is bloomberg. With get a look at the market right now, sher