And leaving the 1099 economy. We talked to a ceo, all of that ahead on bloomberg west. This is a chinese Search Engine giant 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 thirdquarter 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 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 Chinese Tech Companies have, 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 seeing 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 . Josh we are not public buyers 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 basis, 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 by the steepest in years. Jeff, i want to start with you again on this. What is the is the significance of gsr getting 5 million to invest in global tech . 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 pledged 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 time of year. And we take a look at the technology helping deaf children to hear. That is coming up. Emily we know now that Jack Dorseys Square is planning to go public after their confidential ipo filing on friday, but why . Many are seeking private 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. 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 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 States. It has some small presence in japan today. A brand is really important for a company to have, in what and what better way to have a brand than to have that . And Financial Services companies, a brand is incredibly important for them 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. Kind of odd. 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 needed the private financing, so there is one tech company in particular that was turned down. 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 . How well is square actually doing . 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 thank you prateek. 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 forward the frontiers 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. Hearing aids, implants, and finally, in experimental brain is surgery. Finally, she is starting to wrecking nice sound and even make a few herself. 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. It is a natural opening. And we place a paddle with 21 contact adjacent to that cochlear nucleus. The doctors have to make sure the tiny paddle is placed in exactly the right place. The area where we are putting the implant is very congested. A lot of cranial nerves in close proximity. You do not want to stimulate a nerve that should not the stimulated. Emily nyu doctors estimate the first year of treatment would cost about 150,000. The goal to activate as many of the 21 electrodes 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 dog, and it was the greatest response to see. Emily right now, this is the last resort technology, something to try after things like a cochlear implant have been tried. Until now, it was when people have had brain tumors removed. It is not effective how they will be in the long run. But for the patients and their families, even a little progress is a lot to cheer about. Such a great story there. 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. Still ahead, we discuss the fate of the freelance economy and why one company is turning all of its contractors into employees will stop into employees. Emily now we turn to our daily byte, 950 million, the number of android phones that may be at risk for a major text message hack that could take 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. It also brings up a question about it uber turning drivers into employees. Joining me now is kevin. I am a big shyp customer, so i am very familiar with your service. You send a contractor to pack it up for you and send it off. How many couriers do you have . How many people are signing up and how much money are you making . Kevin this is something we have done from day one. We have had this wtwo classification actually inside of our warehouse false top you take a picture of whatever you want to ship and we will come to your house with a career and take it back to our warehouse. We always have employees here and they will 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 and made the choice to go with contractors because we thought it was taking an item from a to b, but what we found is it is more. You are showing up at somebodys door and potentially taking something worth thousands of dollars from you. We thought because of the indepth nature, we would be much better suited operationally to make the transition. 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. With training and everything else, making a switch eight cents for us will stop emily this is going to cost you money, right . Why take on this extra money that your peers think they can avoid . Kevin we think we will make it up in just the operational value of this. Our new employees as well. Being contractors, we really cannot did take what kind of item they can pick up. The way things are currently structured, it is up to them if they accept or reject it and we have to be able to cover an entire city, so a few rejections really throws the system out of whack. So going to an employeebased model, we will be able to bring it up there. Emily what about uber . 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 do not own post made stock or other stock, because i think it is something uber can and will do. I think trevors 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. I think that our business is extremely complicated. This city is very, very difficult. They have other things to worry about. Emily thanks so much. Great to have you on the show. And that is it for today from san francisco. The following is a paid program. The views expressed do not reflect those of bloomberg lp, its affiliates, or its employees. The following is a paid presentation for the beautiful you foundation. Imagine having skin that looks this dutiful and flawless without having to wear foundation. Imagine a product that looks and feels like you are wearing nothing. Imagine a product that makes your skin younger looking in just 10 days