We talked to a ceo, all of that ahead on bloomberg west. This is a chinese Search Engine out with secondorder results and i want to get julie hyman, our Senior Market reporter. What are you seeing . Julie well, first of all adjusted earnings essentially for u. S. Share, seven cents short of what analysts had in anticipating. Revenue rose about 38 , coming in right in line with what had been anticipating, and it looks like the company is coming out with a forecast for herquarter sales which is below what analysts four thirdquarter sales, which is below what analysts had been expecting. They say theyre mobile search, 629 million for the month of june itself, and monthly active users up 48 , so i am still looking at the exact margins that you are talking about but those are some of the numbers. In the second quarter, 590,000. We are looking, as well for the investment in sort of a group on site similar to groupon in the United States. We are looking for those numbers, as well. Traffic acquisition, that is unchanged from the same period a year earlier so i am going to continue to look through these numbers, emily, but its we saw that take miss but it looks like we saw that ms. That miss. The shares are not doing well with these numbers. Emily i want to bring in a general partner who focuses on mobile, and with us from stanford, jeff richards, a managing partner. Let me start with you, jeff, because baidu has not seen as much of a selloff as some other companies, because consumer demand in china is still strong, but what are you seeing about a strong macro trends that baidu has to deal with with alibaba and tencent . Jeff the biggest one was what you and your team highlighted earlier, which is the shift to mobile, and that affects how it works, and the second thing that baidu is doing is moving services, soap Ondemand Services letting consumers buy things by search or a so on demand services letting consumers buy things by search. And we saw their investment in uber, and they are executing quite well in china, so those are what you are eating play out with baidu and there is the strength of the those are the things that you are seeing play out with them. Emily and they are also looking at buying the nokia mapping business. What do you see as sort of the big picture challenges . We are venture capitalists. We invest in the early stages of a companys life. That being said, we think less than half of china of us is population is on the internet. It is a massive opportunity, and quarter to quarter, there were expectations, but on a longterm aces, i think baidu has a tremendous opportunity but on a longterm aces, i think they have a tremendous opportunity. Emily i want to talk at another story we are watching, launching a 5 billion fund to buy companies. This is not the first time considering crossborder deals, like Philips Lighting 2. 8 billion. This comes as Chinese Markets are hit i the steepest are hit by the steepest in years. Jeff, i want to start with you again on this. What is the against of what is the significance of gsr . Jeff i cannot talk about their strategies, but it is still the most attractive longterm opportunity so far, so what you see is an influx of capital, a lot of interest in the world investing in china, raising new funds for that opportunity, and the second thing i think you are seeing as part of the headline is there have been a spate of companies that are making offers to go private. Many times, those are led by the ceo paring up with a large investor, so while i cannot strategy this trend is probably playing a part in the thinking of that new capitalformation activity at gsr. Emily i want to bring in sean. What the intentions of big businesses like this are. What does this mean for vcs here in the United States . Chinese entrepreneurs and investors are quite bullish, so it is the 5 billion and getting a lot of technology to bring it back to china or to be able to create an opening for Chinese Companies to move into the china market a little bit more, so i just wanted to pop in. One of the other guest said that uber is doing well in china. I actually disagree. We are only doing well because they are spending more money paying off Driver Commission than what the actual cost of the ride is, so uber is going to face some difficulties, but overall, i believe it is quite good in china, and they will continue to go forward with these 5 billion funds. Emily interesting. You are seeing Companies Like uber, and with this gsr capital we are also seeing Companies Like baidu and alibaba. What about more competition for investors . Josh it is a phenomenal time to raise capital. The best time ever in the history of startups. I think the same thing can be said for investors in startups. I do not know the particulars of gsr, and i also cannot speak to their strategy, but it is a phenomenal time to raise capital. The flipside of that is maybe it is the worst time to beat an investor. It is more competitive than ever before. Prices are very high. So that is the rub. Emily thank you, and joining us from china hence, that shot thank you all for joining us. Collaborating on climate issues 13 companies apple, google, microsoft among them investing billions to reduce their own carbon foot print. This is before the Climate Change summit in paris, and apple and google alleged to increase investment, while aluminum giant alcoa will eliminate half of Greenhouse Gas emissions compared to 2005 levels, and cocacola, inc. Of america also taking part bank of america also taking part. Coming up, Jack Dorseys Square is planning to go public, but that is not the normal for texas heart of year but that is not the normal for this year. Emily we know now that jacks square is planning to go public after their confidential ipo filing on friday, but why . Many are seeking financing over public funds, so why is square doing this . Joining me from palo alto is someone who used to work at square on buechele partnerships and another test. I am tereus about this one is that they can raise capital in much more attractive terms. And today, what is happening on square, it used to be known as purely a payments company, and it is clearly moving towards other areas about Software Things around payroll and the third area why Companies Really want to go public is from a branding perspective, and when we talk about branding today square is a very wellknown brand in the united dates. It has some small presence in japan today. A brand is really important for a company to have, in what utter way to build a brand than to have and what better way to have a brand than to have that . And Financial Services companies, a brand is incredibly important for went to have. Trust is so important, and this gives them an opportunity to do that. Emily brand is important. Leslie, a lot of talk after we broke this news is the timing seemed kind of on. He is the interim ceo of twitter. Leslie jack dorsey aside, you are seeing those companies who have not been able to get the private financing or have not he private financing, so there is one tech company or have not needed private financing. So square could be an example of one of those companies. As you mentioned, it is interesting with the timing given that jack has returned to twitter. It seems that he is committed to remain at square. Of course, there is additional pressure on what he is going to do with twitter. Emily far fewer Tech Companies are going public this year as compared to last year. You worked with jack dorsey. Does it change if he is not ceo of square . What you make of some of the things leslie just brought up . There is incredibly strong team. Their head of engineering is incredibly strong. It is one of the few women lead executive teams in the valley, and i think that is a great story. Outside of jack, it is a great team, and what i think they can execute and have executed, and they will continue to execute. I have no doubt. Emily ok, we are all watching see how this one unfolds and who ends up leading twitter as well as square. It is time now for our latest bloomberg west series, a closer look at the Technology Driving before tears of medical science, and today, we meet a little girl driving the frontiers of medical science. Take a look. It took five point five years before she heard her first sound. Finally experimental brain surgery, but now with 20 one tiny electrodes bypassing her auditory nerve, she is hearing sounded even making a few herself. Auditory brainstem implants in children under the age of 12. The operation is tricky. We make a small opening, back behind the ear, and there is a little opening where the spinal fluid goes from inside these final court to outside the spinal cord inside the spinal cord to outside the spinal cord. And we place a paddle with contacts. The doctors have to make sure the tiny paddle is placed in exactly the right place. It is congested, a lot of cranial nerves in close proximity, and you do not want to stimulate a nerve that should not stimulated. Nyu doctors estimate the first year of treatment would cost about 150,000. The goal . To activate as many as possible. The first time she actually heard our voices she turned and looked at my husband and was in total shock, and then when we got home, and she heard the dog bark, she stepped back and looked at the dock, and it was the greatest thing to see. Looked at the dog, and it was the greatest thing to see. Reporter until now, it was when people have had brain tumors removed. It is not effective how they will be in the long term. It is not known how effective they will be in the longterm, but to the families, even a little progress is a lot to cheer about. Emily such a great story there and you can watch the rest of the series every day on bloomberg west this week. You do not want to miss it. Lots of fascinating stuff going on. Coming up, a freelance economy, and why one company is turning all of it workers into employees. Emily now we turn to our daily byte, 950 million, the number of android loans that may be at risk for a major text message hack. Android phones that may be at risk. They could take a hold of phones with a simple text message, and since so many phones, maybe one of the worst ever. They are going to be pushing up the fixes over the coming week. Now, to a sea change in the freelance economy. Shyp, the online shipping company, making a name for itself. It is converting its couriers from independent contractors to w2 employees, a move that makes them one of the few ondemand companies to boost a work horse made up entirely is a work force up entirely of employees. And turning contractors to employees, and will more Companies Join shyp in doing this . I am a big shyp customer so i am familiar with your service, and what you do is charge a five dollar fee, and they will pack it up for you, and it looting the cost of postage and including the cost of postage, they will send it off. How much money are you making . Kevin this is something we have done from day one. We have had this classification and you can take a picture of what everyone to ship, and we will come with a courier and take it back to our warehouse. They will take your unpackaged items and professionally package them, so this is just a transition for the actual couriers. Emily your shipments and Customer Growth are up. What was the lightbulb moments, when you said, we need to make these contractors employees . Kevin this is an idea that has been with me since we started the company, and we aid the decision to go with contractors was we thought it was taking the item from a to b and we turned that it was more, some buddy showing up at your door and taking something worth thousands of dollars somebody showing up at your door and taking something worth thousands of dollars. Emily should not uber and lyft want their workers trained too . Kevin in the movement of items, the seven contractors for decades, and so for us, we felt we needed so much more. Emily why take on this money . Kevin we think we will make it up just in the operational these that we are able to gain in the operational efficiencies that we are able to gain. For us, being contractors, we really cannot take it what item we pick up. The actual courier will get pinged and it is up to them to accept or reject it, and we have to be able to cover the entire city, so a few objections really throws things out of whack. Emily what about uber . Heaven this is something a reasonable kevin this is something that a reasonable company has to decide on. Emily take a listen. I did not invest in shyp because i think it is something that uber can and will do. I think the ambition is boundless, but i think his ability to execute on that is completely unlimited. Emily is he wrong . Is uber going to do what you do . Kevin i dont think so. What we do is difficult. And there are other things to worry about. Emily thanks so much. Great to have you on the show, and that is it today from san francisco. John im john heilemann. Mark im mark halperin. And with all due respect and with all due respect to boston you are never that great a sports city anyway. Kidding. On the show tonight, obama clinton, walker and obviously trump, but first, huckabee. In case you went in case you missed the news holocaust reference blowback. President obama and Hillary Clinton both made it clear how much they stand against my cut be possible reference to gas chambers. Mr. Obama to the