HP Beefs Up Board: Bloomberg West (07/15)

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July 15 (Bloomberg) -- On today's "Bloomberg Surveillance," Tom Keene, Sara Eisen and Scarlet Fu bring insight on the state of the market getting you ready for the day ahead. (Source: Bloomberg)

? welcome to the early edition of bloomberg "best." i'm emily chang.

Three months after ray lane stepped down as chairman, hewlett-packard adds three new board members.

How much will former executives help the turnaround?

Apple says it will fully investigate reports that a 23- year-old chinese woman died after injuring her iphone 5 while it was charging in getting electrocuted.

Hollywood heavyweight right and greaser said the is and talk about new seasons for "arrested developments" for netflix.

Hewlett-packard adding three new board members months after ousting the chairman after meg whitman tries to turn the company around.

A former mcdonnell ceo, and the former chief stockport arkansas -- software architect of microsoft.

With these appointments expand from 9-12 members.

The company says it is still looking for world-class directors.

Also looking for a new non- executive chairman in april.

All this comes just days after new numbers show that a no vote overtook h-p in the second quarter for the title of world's largest pc maker as pc sales fell.

Shares are little changed.

And how can a stock for a guy in media guy helped h-p? for that we turn to an analyst from bloomberg industries.

Why add the?

And why these particular members?

This company suffers from the constant question, what is the right size and makeup of the board?

Do we have right old world experience?

Do we have enough new world direction in terms of software and media experience?

I think if we look at the composition of the team members right now, there is a little bit of balance.

You have a former mcdonald's ceo who has significant experience in terms of the product line.

How to make a product line that has mass-market appeal.

That is one.

You have a software architect who was clearly in the direction of where h-p wants to go and the higher end margin product in the technology industry.

That is another edition.

In the media executive addition, there is also another forward- looking legislator board of h-p. if you look at it from that perspective, one old world person who can help with potentially have to mitigate cause, coupled with executives who can steer the company from a where do we need to be, what kind of acquisitions we need to make some kind of markets we should be targeting?

A little bit of a balance.

Take a right.

H-p is a company needs a lot of work.

Why not add someone who is younger, known for being forward-thinking or known for innovation?

All of these guys are very experienced.

There is not one name that stands out for someone that is extremely innovative.

I do not think you will get a steve jobs type person to steer the company that way.

I do not think here the combination of bright minds for a diversified group of industries is likely going to be the right mix.

What about the numbers , 9212 -- is that too many cooks in the kitchen?

-- going from 9 to 12, is that too many cooks in the kitchen?

I do not know.

It is also -- companies struggle with is all the time.

How many people do we need to have to form a quorum to get things done.

Second, the kind of experience we need to have in this background and have a board experience, etc.? i do not know if there are magic formulas here.

All right.

We will watch to see if this new formula works out.

And thank you for joining us today.

Well, microsoft is slashing the price of the surface tablet by as much as 30%. the more expensive service model which does not include a keyboard cover will be sold for $349 down from $499. the keyboard model has dropped from $599 to $449. could these reduced prices help and help compete with other prices?

Tom jowell joins me now with a look at this.

First question, what took so long?

Based on numbers they did not like.

Circus, as we have been reporting, has not met expectations.

Microsoft's partners are not players without the circus has done.

This was a really important thing to get right.

Based on what we're seeing the pc market is really declining.

When it comes to tablets, when the consumer goes to the store, when the business goes to make a purchase, they are opting for alternatives like the ipad, like those made by samsung that feature google.

Microsoft really needs to turn things around in quickly.

Massive reorganization.

Trying to understand what he is really getting at.

In terms of this particular division, who is leading this division?

Will this person be able to help make major changes?

Julie larsen grain will be in charge of hardware.

That will include circus come x box -- surface and xobox.

A good way to look about this -- look at this is the microsoft challenge.

It has a lot of expertise but needs to get developers on board to create that applications.

Users are spoiled by the fact that you have hundreds of thousands of applications available from apple and google did not have the same falling on microsoft.

Again on the software side.

Harborside you need someone to come in and focus on the design.

Make them sleep, interesting, sought after and sexy the way apple has with the hardware.

-- make them sleek.

How does this fit into the bigger picture?

The bigger picture is a lot of different divisions.

Xobxbox doing well.

Cranking out products the market really wants.

On the other hand, the smart phones, pc side of things, surface not doing as well come even some of the partners not to -- also expressing dismay at how things are going.

That makes google look were interesting as a software partner.

Microsoft holds the plug in strategies.

Last week talking about how android is the culprit in terms of winning over the cheap tablet sales.

Startek team leader in san francisco, thank you.

A strange and sudden death, potentially caused by an iphone5 in china.

Details of the investigation next.

You can watch streaming on the tablet, down anphone and bloomberg.com.

This is bloomberg "west" and bloomberg television.

When no vote just -- lenovo became the world's largest pc maker.

Bishop wellpoint 2 million.

H-p only ship will 0.4. -- bishop 12.6 million.

Record declines down for a fifth straight quarter.

Despite the slowdown, the asia- pacific president says there is no room to grow in the market.

The market is 300 million units.

Now 16.7% market share.

If we add another 5 points per share, still 16 million, which is still hundreds of millions of dollars of profits.

The pc business is still very much alive.

He also added the company is focusing on smart phones and plans as many as 50 different devices at multiple price points.

And apple says it will fully investigate reports that a 23- year-old chinese woman died after answering inher iphone 5 while it was still plugged in and charging.

The family is not seeking compensation at once to warn others.

This is incredibly scary, especially for all of the iphone 5 users.

Is there any way this could have possibly happened?

It is certainly possible.

She does gotten out of the tub.

This provides a better conduit for electricity.

They do pull enough electric current to potentially kill someone in this fashion.

It is not impossible, but it seems like are rare occurrence.

There have been a number of theories out there.

She was using a counterfeit charger.

Soaking wet.

Barring those issues, what are the chances this could have happened with a legitimate iphone 5 and charger?

I think it is highly unlikely.

These chargers go through lots of testing.

They are engineered to keep people safe and keep people from being electrocuted.

Generally speaking you are looking at a possible defect with the charger or particular phone she was using at the time.

For something like this to happen.

Generally the electrical wires and chargers are very well insulated and isolated from people.

It would be extremely unusual for this to be an actual apple charger or found that caused the problem.

Certainly possible.

Apple has faced problems with overheating comer reports of a device catching fire.

-- reports of device is catching fire.

Could this be related?

Probably not.

What you are looking at here is more of a charger issue.

When the phones are catching on fire, iphone 4, not divides 5's. those overheat.

There is chemistry involved.

This sounds like something different.

What is the most likely scenario?

China has had trouble with counterfeit chargers in the past.

Also a potential with the wiring in her home.

What do you think really happened?

Picco possible there could have been a split in the installation somewhere that's caused a problem could have been an off- brand charger that was not as the really engineered as we expect from major engineers like apple.

Probably one of those issues.

Certainly if she was in the tub and her hand was wet when handling the device, that will increase the chances as well.

What about those of us that have an iphone 5? do we not use it when it is charging?

Picco i think the best is to use a certain amount of common sense.

Generally a bad idea to handle a electrical devices when you are in and around the tub or when you are wet.

I use my phone when it is took to the charterer all the time.

I have never had a problem and never heard of anyone being shocked or having issues with that.

I think for the general public, really all you need to take away from this is generally stay away from your phone if you would just popped out of the shower.

Generally speaking, most people can feel safe and secure when they are handling their phones.

We will continue to keep following this story.

Michael garmin.

Thank you.

Certainly makes you think.

When we come back, is the start of seen heading east?

How east coast cities are giving silicon valley a run for its money when it comes to tech hiring.

You can watch a streaming on your phone, a tablet, and bloomberg.com.

This is the early edition of bloomberg "est." west." i'm emily chang.

Surprising news about where the tech jobs are.

Tech jobs in new york state outpaced jobs in california last month.

Salaries still a lot higher on the west coast.

The study also found georgia is becoming a fast-paced player in the texting.

Joining us is director of corporate development at trident.

Obviously this is against conventional wisdom, but what is happening in new york come in georgia to make them so far ahead?

We provide bundling services for range of companies, over 8000 total.

Media as well.

They employ over 200,000 worksites employees.

As a result, we collect a tremendous amount of employment data.

We found last month in june we looked at new york and san francisco come and new york has outpaced the hiring for the past year and a half.

Why is that?

That is a big number.

By no means is the san francisco bay area declining, it is just that new york is growing faster.

Both are outpacing national average by almost 10 times.

In new york there is a lot of focus on industries that combine technology with fashion and media.

One of our clients is a great example.

We have not only does exciting new start-ups but big tech names moving campuses to new york.

What about george r.? they have a great engineering school with georgia tech.

You also have these fortune 500 companies like home depot, ups, coca-cola.

That, combined with low cost of living in new venture financing from a public and private standpoint, and you have the right ecosystem for technology.


The other interesting number i saw was salary.

A good time to be a technology worker in california.

They turned over 20,000 more than counterparts in new york.

It is like a $50,000 difference.

I know you found interesting differences between san francisco and silicon valley.

Tommy about those.

-- tell me about those.

What about san francisco and new york?

What other differences are you seeing?

Any trends that surprise you?

To go new york is more fashion from the media and art, which is different in san francisco that is a pure technology focus.

Any companies in particular that are driving these trends?

It new york a great example, we have engineering graduates from stanford and berkeley flocking to companies that we partner with.

Remind us what they do.

They provide services so if you need a programmer to help develop your application, you can outsource back.

Interesting numbers.

Thank you for joining us today.

Time now for on the markets, a look at what is moving in the markets every hour.

Julie hyman, a senior markets correspondent joins us from new york.

Take a look at where stocks stand at this hour.

Seeing some grain on the screen.

Better than we saw earlier.

Good enough for an s&p 500 record, at least on a closing basis.

Intraday, 16 87.18. still some point shy of that.

That is the intraday record to watch.

In terms of what is going on in treasuries, the biggest weekly rally in prices as yields continued to decline.

One thing that could help stocks today and helping bond prices and pushing yields down, the fact that retail sales came in weaker than estimated gives more fuel to the fed to continue stimulus.

Finally, take a look of the dollar.

We see a rally particularly against the yen.

The dollar index is higher.

The idea of central bank divergence that eventually, even though we of the stimulus, the fed is closer to tapering and then expanding it.

That is an opposite track we are seeing from other central banks around the world.

Back to you.

Thank you.

Do we hyman in new york.

Imax expanding in asia.

-- thank you julie hyman in new york.

This is the early edition of bloomberg "west." i'm emily chang.

British investigators say so far they see no links between friday's three minor fire and the battery problems that grounded the plane earlier this year.

The team from boeing and the u.s. and ethiopian airlines looking into what caused the plane to catch fire.

They are still flying the three other streamliners.

The russian president says nsa leaker edwards noted is seeking permanent refuge outside russia.

Speaking near st.

Petersburg, he says the united states has is that chile blocked all for their travel for him.

Still believed to be living in the transit zone of the moscow airport.

June not a great month for retail sales.

The commerce department said sales rose 0.4%, less than forecast.

Demand was strong for gasoline.

Imax and the south korean partner, announced the addition of 35 new theaters in asia today.

The deal includes 30 new movie screens in china and five and south korea.

China is the world's largest -- second-largest movie theater right behind the united states.

Will what can you tell us about this?

This partner is a major player in south korea, which has a presence in china.

For imax, they find themselves relatively in the sweet spot as far as the industry goes as far as capitalizing on the growth in the big screen theaters . the ceo joins us with more on the announcement.

Welcome back to the show.

Obviously you have been very ambitious in china.

We have heard china film group showing its own ambitious -- ambitions.

It does look as if you have a sizable lead.

How would you describe the competitive dynamics right now?

What ever newmarket you go into, there will be people that emulate what you do.

There are people trying to do what we can do.

The difference is we have relationships with the major directors and a major studios in china.

We have a network of 118 theaters.

When we build it out come about 275 theaters.

We have marketing.

The competition in china, there are people trying to get into the business.

I think the closest competitor has something like 12 screens.

I think they're trying to create a bit of a premium.

Taganrog wrong i would like to do more on the number crunching.

Some have estimated china is a market that could have 400 screens.

Do you see i max having two- thirds of the markets once the full bill that has happened in china?

I think the estimate for 450 is our estimate.

I think we will achieve that level.

How the country grows in what ever share other people have is not a major concern to me.

I always worry the kind of money we make in the network we have.

We cannot just look at china, but we are in 54 countries.

We will have 35 homes.

The brand is recognizable to consumers everywhere.

The fact that someone picks up 10-12 theaters here for a less- premium product is not the way we look at the world.

All of your partners are important.

I thought it was interesting the wording in the press release.

Her largest exhibitor partner in asia at present.

You have a good relationship with one deathwanda as well.

Would you expect them to claim the title that you currently have?

As you point out, they are the title.

Something like 90 theaters, plus they own amc here in the united states.

We have an excellent relationship with them.

It has been going on for a number of years and has performed -- performed well.

I would hope they would add more screens, but we will does have to see.

Talk about a movie that is in theaters right now.

"pacific rim" which by some measures have been disappointments.

As far as i max goes max goes, the word on the street is the numbers were really well.

We did $1.5 million.

North american market, 19 percent of the total box office.

That means for every one in north america that went to see this, 19 percent work customers.

Obviously we only have 330 screens.

Internationally there are strong territories.

South korea, 35,000 per screen.

Taiwan was strong.

Pressure was strong.

Opened in china and a couple of weeks.

We had a very significant part of the box office.

Glad consumers chose to see it in imax.

19% is a massive number.

Is that sustainable?

Does this represent the greatest opportunity for companies like yours?

I think we have done more than that and other ones.

It really depends on the type of movie.

This was marketed to fan boys initially and opening -- hoping to broaden out.

If you want to see the movie, go see it in imax.

They came out in big numbers to do that.

Always appreciate your time.

The ceo of imax joining us on the new partnership.

Thank you.

Is the mobile payment business not as hot as we thought?

New research that could spell trouble for the likes of square and google while it next.

-- googlle next.

This is "bloomberg west." the mobile payment business may not be as hot as we thought.

The firm forecast that october that mobile payments and the west would reach 2.1 $2 billion this year.

It now says the volume for this year will only hit $1 billion.

The scaled-back estimates after seeing delays in people adopting old payments in congested landscape of competing technology.

Here to help us understand what is happening is bill ready.

First of all, let's talk about braintree and very competitive landscape.

And how is it different than square or pay paul mobile business or google wallets even?

We are on line in the mobile payments platform powering the next generation purchasing power.

Largely because we have given them very easy access to sophisticated payment tools.

Things like cinko click purchasing, corn payments.

-- things like mobile click purchasing or foreign payments?

Think about a transaction where you are on your mobile device.

That is an entirely different purchasing experience.

They are an example of targeting in the store.

For in-store transaction, i think that is a place where it is taking longer to develop.

The report is taking longer to develop.

There will only be 1 billion in store transactions through mobile.

We of more than 2 million -- 2 billion on the platform, but it is all happening on the mobile device.

I think in any way confirms the premise we have.

Shopping sessions are happening on mobile devices.

Two years ago we said we are really big on mobile but everyone big on mobile in the store.

We're big on mobile for e commerce.

So we feel really good about that.

And i think mobil will happen in the stores but first and e commerce world and then into the stores.

We were thinking about mobile talent wars.

Your interesting position because you are based in san francisco, new york come in chicago.

What sort of trends are you seeing?

The average tech worker could make up to 50,000 more than new york.

Why is that?

I think it is extremely competitive.

You see companies looking for talent and other places.

A lot of tools allow you to have more talent in places.

That is one of the reasons we have gained products is that we see innovation happening all over the world.

I think companies are diversifying that, but still the most intense competition here in san francisco.

You mentioned in the break you can find better people in new york but will pay people in san francisco more to do the same job that someone in new york will do.

We see great talent both places.

The thing that we seek is it for a similar job, the competition is more intense here in san francisco than in new york and that drives prices higher for similar talent and san francisco vs.

New york.

We are hiring faster in new york than any other location.

There is an emerging tech same there, but not nearly as a competitor -- competitive as here in sanford sysco.


Bill ready.

Thank you for the first-hand explanation.

More in just a moment.

This is bloomberg "west." kids these days.

The cartoon format has hardly bald.

One new show on nickelodeon has a new approach to animated story telling, finding ways to embrace technological change.

Corey johnson has more.

Do, what is up?

-- dude, what is up?

The new nickelodeon show created by these three guys.

They met in the san francisco bar and were soon making curtains in their bedrooms, all created on laptops.

Technology has been a giant health.

To go within their reach.

Anyone can do this.

What they are doing is revolutionary.

You can get different tips that interact with the screen.

Jay howell draws the essentials of every scene on his computer.

What we try to do is provide them with a very intense map to how the cartoon gets made.

Animators and career draw the thousands of nitty gritty animation's overseen using the latest, greatest software.

Storybook program adobe boaters shop, aftereffects, final cut pro and avid media composer.

The results can be thrilling.

But here is what is really groundbreaking.

It is not just written as linearity become a it is short bits written for the web or games for the iphone.

There is so much we do not have time to talk about or would not lend itself well necessarily to television that we want to see and other platforms.

New original content, the multi dimensional media will help nickelodeon readings.

They have seen their ratings slide 21% in the past five years.

The disney channel's has made up lost ground.

Helping their cause, clever and sap experiences -- app experiences.

We will find out.

Nickelodeon executive matthew evans says this will transform their business.

Kids and snack on a variety of digital content.

Sometimes they want to play again, sometimes they want to watch a short video.

Sometimes they want to look at photographs or hear from their favorite stars and characters.

For us, it is looking at all of those and understanding it is part of the content they consume.

Staying with a digital content, these stars may be coming back sooner than expected.


Speaker george michael?

-- goerge michael?

Talks currently under way to start work on it arrested development.

He broke the news in an interview with john ehrlichman.

He joins us from l.a. on details for how close this is to reality.

The reason they want to do it is they loved exclusives.

Gives people a reason to watch netflix.

They like original content like "house of cards." play that clip on plants that are in the work.

We are in conversations with them to do another season.

They are interested in doing that.

So are the actors.

We're very excited about that.

Our understanding is the challenge getting from point a to point b to getting the cast together long enough.

They want to have a lot of material to make those fans happy.

Take don't think you.

-- thank you.

Fans very excited.

You can catch the full interview at bloomberg.com.

We will be right back.

? welcome back.

I am emily chang.

Coming up, will online shopping till physical retail stores?

We talk to an investor who said no.

Did not miss the managing director at 3:00 pacific.

And it is time now for on the markets, a look at what is moving in the markets every hour.

Julie hyman joins us now from new york with more.

Taking a look at what is going on with stocks.

We of cnet small gains relatively in today's session.

Enough to take us for a record for the s&p 500 and the dow jones.

We're seeing gains continuing at highs of the session.

In fuelled even though it got worse than expected retail sales data.

More about that in just a moment.

See how this all playing out in the bond market as well.

Yields are coming down to some extent.

We have seen the biggest wheat pit -- weekly rally in prices and about a year's time for trent -- 10-year treasury.

Continuing to see that move today.

Joining my now to discuss what the economic data means for the broader economy and federal reserve is our economics editor, michael mckee.

We did have mixed data.

Take a look back and look at the broader picture, worth an estimated on the retail sales front.

Better than expected empire manufacturing.

Would have been better if it was the other way around.

It is not really tell you what is happening on a national basis.

It is not beyond a new york supporter at this point.

The one that gets you cover retail sales number is really a surprise.

We saw big drops.

Also in electronics retailers.

Then eating and drinking places.

They fall.

That is discretionary income come out of extra money, go out to dinner, or not.

This text has been automatically generated. It may not be 100% accurate.


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