>> live from pier 3 in san francisco, welcome to "bloomberg west" where we cover innovation in the future of business. >> here are some top stories making headlines. according to people familiar with the matter. this after the cloud storage provider delayed its ipo. talks are at the early stage to be determined. apple is proposing a new smart watch according to reports. "the wall street journal" is multiple versions will be in production with an expected release later this fall.

it is said to include more than 10 sensors to help track health and fitness. apple unveiled new service out the annual development conference. comedian chelsea handler has inked a deal to host a new talk show on netflix. the host of "chelsea lately" will begin a new show on netflix, the first of its kind. frequency of shows has yet to be determined but opens the door for a larger variety of original content. her late-night program on e! network is scheduled to end this year. now to the lead story of the day, time for apple's long-awaited smart watch may be coming soon. apple is working on multiple versions of a watch incorporating several different screen sizes and more than 10 sensors to track things like health and fitness. they showed off a new app called

health and they're working with nike and mayo clinic. joining us is the head of technology equity research at s -- s&p capital and bringing in our special guest host, general partner at kleiner perkins caulfield byers. a physician by training and a former chief medical officer at amgen. now you are an investor in many biotech and health tech companies. this is a perfect story for you to discuss. how closely have you been following the potential iwatch from apple? >> very closely and i'm very excited. from a physician's point of view, 50% of all health-care care costs are due to lifestyle choices. 50% don't get the right amount of exercise. if you do not get that, it can cost seven times more to treat.

>> scott, what are you hearing from your sources in the supply chain and elsewhere and whether or not it's coming this year? >> we actually think it will happen and it will happen this year, but also because it seems the speculation of apple and a variety of offerings kind of manifests itself and then nothing seems to materialize. we think that definitely before the holiday shopping season apple will have at least an iwatch product in the market, but to be honest with you, emily, we are not so sure this will be a slamdunk product like a lot of folks expect. >> on that note, one third of consumers have heard of wearable

fitness devices. only 28% by of them and a huge number stopped using them when they have them. how important will it be? >> we will see what the market adopts. when you think about things like fitbit, it is not used for a long enough time, but a great statistic i saw a recently as over the past two years, people who wore fitbit walked 2.4 trillion steps, the equivalent of walking from here to saturn. it's kind of incredible. you need to measure reward. people respond when they have a reward at the end of it. just seeing your steps are seeing a measurement is not enough. you have to give people a prize. give them an opportunity to be rewarded for what they are

doing. >> scott, when you think about how widespread watches could potentially be, do you think it could become as big as a smart phone market or will never come close? >> i tend to agree more with the latter of those two conclusions, emily. the way we think about this is, as was just referenced, a lot of companies have introduced a lot of related products and, to be frank, it seems like notwithstanding the enthusiasm, these offerings have not had sustainable success, i would argue to a large extent and it's kind of interesting this is something people can buy to improve their lives yet, seemingly, more people are interested in yo! the app than these herbal devices. -- these wearable devices. people need to think about priorities but in light of that, we think apple will have an uphill climb when it comes to this category.

>> i've tried out a lot of these wristbands and they are now in my drawer. i'm not compelled to use it every day. of the bands out there, pebble smart watch, samsung galaxy gear, job own -- jawbone, do you think apple will hurt the competition? >> there'll be different options for different people. one option for today's band is the engagement. if apple can find a way to have a two-way interaction, i think people will be more engaged and therefore more willing to use it. i hate the way they look. >> what we wear is such an expression of who we are. what do you make of the report that they're working on multiple screen sizes? still only one screen size.

if they are indeed working on multiple sizes, what does it tell us? >> that's a surprising characterization of where apple is going was early in the process with regards to this particular category. we are frankly a little bit skeptical as to whether or not you will see right off the back two separate or multiple separate screen sizes and product offerings. frankly, i think what it says perhaps is apple is aware, as best indicated, different products will cater to different types of users and use cases. i do think, while it's important that the product is beautiful and garners people's interest and attention, think about it in the context that people will be using this when they are working out so they need something rugged and something that will be able to hold up to sweat and other kinds of tribulations.

we think the way this will play out is not exactly how people might expect at this point. >> are their startups out there banking their futures on an iwatch? once apple comes out with something, we are going to go big. you're investing in a lot of these companies. are any of these companies waiting for this? >> i have not heard it exactly spoken that way, but they are waiting for a broader platform to be able to expand the amount of things that they can measure. >> dr. beth seidenberg from kleiner perkins. and scott kessler from s&p, thank you. where she sees potential and you can watch us streaming on your tablet, found, bloomberg.com,

apple fire tv -- apple tv, and amazon fire tv. ♪

>> i'm emily chang and this is "bloomberg west." the new surface pro three hits stores today in the u.s. and canada with a starting price of $799 with a 12 inch screen. it is thinner and lighter than its predecessor. microsoft net loss from the surface exceeds 370 $6 million

-- $376 million since the release of the original surface back in october 2012. we will see if this one sells any better. we're back with her special guest host for the hour, dr. beth seidenberg. she focuses on life sciences investing in a range of biotech and digital health companies where she advises on everything from finding a cure to cancer, and developing mobile apps to help manage medication. how does investing in life sciences to for from consumer and enterprise technology companies? we've focused a lot on consumer and enterprise technology. how is health tech different? >> one of the main differences is it's very personal. if you think about what people are doing with their information, whether it is to get healthier or find out what

the health is about, it's personal. a number of things we do are regulated. you cannot just go out and put something out that will tell you about your disease state or diagnose you without the fbi getting involved. >> is there more or less competition, more or less volume? >> there is a tremendous amount of volume. i cannot process all of the opportunities coming our way. we're are very excited about the opportunities. there is less competition, but it is heating up. we are seeing a lot of traditional digital investors seeing the path and the pattern of opportunity in the health-care space. >> kleiner has put a big bet on healthcare services. what have been the returns? what makes it worth it for you guys? >> returns matter. our returns particular on biotech and soon on the digital health side will be equal to our

digital returns so we are doing well. what makes it worth it is we're making a difference and it's part of the partnership fabric of who the partnership is and who we care about. >> what are the most exciting trends? what are you most excited about? >> we are excited about trying to address the problem in front of us with baby boomers. why is that important? >> what's the problem? >> there's a lot of them. they are not very healthy, but they love technology. >> for the next 15 years, 10,000 baby boomers will turn 65 every single day. >> happy birthday to all of those who turned 65 today. [laughter] if you look at the other statistic, there are 3 million new people joining medicare every year. medicare is now projected to increase in the amount of spending. people will be more responsible for their health.

in order to address that, we think that digital technology will make a big difference. when you look at the baby boomers, the internet trend and the amount of time they spend on the internet is equal to the millennial generation. it's shocking. i did not know that. >> what kind of digital things will help them? >> we talked about one, perhaps the watch. there was a pew survey that looked at people between 50 and 64. baby boomers but not quite over the edge yet to be in the medicare generation but they measure their weight, exercise, or calories in some way. if we can find engaging tools, so things like an iwatch, fitbit, or things like myfitnesspal, one of our companies, there are over 80 million users. there have been over 100 million pounds lost. 30% of americans are obese.

we need to fix that problem. >> what about the affordable care act and the making of all of the health records electronic? what kind of opportunities are you seeing there? is it working? what are the challenges? >> it's a challenge anytime you introduce new technology into a field that has basically thought high-tech was a fax machine. there's a big cultural shift in the physician-provider area. we are building the pipes so that now over 80% of hospitals have electronic medical records. we are only at 50% in the ambulatory outpatient medicine. once we get there, people will

have access to the information. >> we know valuation's are soaring in the private market. the nasdaq biotech index is up more than 50% in the last year but took a deep dive in march. there has been talk about a biotech bubble. what are your latest thoughts on the environment? >> we spoke about this last time i was on the show. >> has anything changed? >> it's a scary market when the charges started to go down. i said to you there was no biotech bubble and then thought it was going to have to eat my words. i still don't think there's a bubble. if you look at what's happened here today, 33 ipos and they are overall up 28%. just this week, three great ipos. there are more coming. there is still a lot of optimism.

there's a lot of money to be made. because we are able to now come up with better treatments that are going to get through and help patients. >> speaking of treatment, more on efforts to cure cancer later in the show. i'm excited to see what kind of progress is happening there. dr. beth seidenberg of kleiner perkins, our guest host of the hour. we will be back with the latest in the book battle next on "bloomberg west." ♪

>> welcome back to "bloomberg west." i'm emily chang. the world's largest long time -- online retailers making an exception to the book locking and accepting orders for the latest book from j.k. rowling. five are still showing out of

stock messages as amazon seeks a bigger cut in e-book rices. we turn now to our wiring the world series looking at how tech is shaping the future of health care. if you hang going to the doctor, there is an app for that. in the process of launching technology letting you diagnose medical problems from the comfort of your living room. sam grobart takes a look at three of these companies. like certain technological breakthroughs have a way of making our lives seem more like science fiction than reality. think about the first time you've ever used a smart phone or see someone use microsoft xbox kinect. the future is happening right now. these giant leaps of already changed the way that we work and communicate. the next step is going to be how we take care of our bodies.

we soon may be able to diagnose ourselves using tiny sensors and the computing power already in our hands. one company is using a handheld sensor you would hold to your forehead to get temperature, heart rate, blood oxygen level, and other data points. the sensor would then send all of that via bluetooth to your smart phone which could share the data with you or e-mail it to your doctor. another company has developed a mobile accessory that turns your phone's camera into a sort of ear scope. put it in your kids gear and send the video to your kids doctor and you may be able to get that ear infection diagnosis and that antibiotic prescription without ever leaving home. the third outfit has developed a smart phone based ultrasound machine that costs less than $8,000.

a senate -- a standard rig would run you into six figures and is being used in developing nations to provide more accurate diagnosis. there are some skeptics out there. like you cannot just throw a sensor on the body and get accurate data. in some cases, they may be right. they are works in progress but the improvements seem to be inevitable. 10 years ago, we barely knew what a smart phone was and now we are talking about driverless cars. if you look at the history of the future, one thing seems clear. it's happening faster. >> bloomberg businessweek sam grobart. dr. beth seidenberg, our guest host. >> i cannot believe the smartphone is so smart. i think we're going to see more and more of these mind of apps and technologies. what i am most excited about is the data. if you think about it, we've never had this data before.

in between hospital visits, physician visits, all of a sudden you will be informed and empowered and it will be awesome. >> kleiner perkins beth seidenberg will be with us for the hour. coming up, buzz feed is one of the fastest growing sites on the web. we talk with the company's ceo about how buzz feed gives the great viral content. watch us on your tablet, phone, bloomberg.com, apple tv, and amazon fire tv. ♪ >> time now for bloomberg television "on the markets." i'm jonathan ferro. let's get you caught up on where stocks traded in a very happy way. higher 0.2% on the s&p 500, a sixth day of gains and a record high.

the nasdaq refuses to miss out on the party, 0.2% higher. vix higher as well. " bloomberg west" will be right back. ♪

>> you are watching "bloomberg west" where we focus on the future of business. convening in france to discuss the future of the business. seeing business grow in an older audience, one of the hot topics was has to catch the attention of the variety of groups now active on social media. stephanie ruhle attended the event and sat down with buzz feed ceo and started by asking

if buzzfeed was going to attract an older audience. >> it is still growing quickly, but my gut feeling is that we are starting to see a little bit of a shift. we look at it with the level of individual posts so if we do a post about parenting, we will see and reach an older audience and if we do a post about signs that you missed your senior year of high school, it will skew to a younger audience. >> in the last year, do the traditional media icons want to understand how your business works? could we see buzz feed become part of these iconic traditional media brands? >> we hear from people at big media companies but people from small businesses doing work in the space. it's definitely fun to have people watching what we're doing and appreciating it, valuing it.

a couple years ago, we were not on anyone's radar. it's a different moment for us where we are able to operate and have influence in a larger industry where people see what we do. >> do you have a dream partner? >> like my wife? >> nice. >> bloomberg is a great company. we tend to take the approach of making content ourselves. we work with lots of brands collaboratively from branded content so we have a lot of partners who are marketers and major brands. we were with 76 of the top 100 now. we do a lot of partnerships. on the content side, we feel like the social platforms are a

great partner and it's less about having a contractual agreement and more about having aligned interests to make the newsfeed and content streams of all the social platforms better by creating really great content that can be shared across the show natural when -- social web. >> there's one about people you cannot believe really exist. it is more like a laughing out loud sort of thing. >> how do you find these extreme people you don't believe exists, monsters, the most extreme? >> part of it is having a team of people who really live and breathe the web and meet in small groups and brainstorm ideas. a lot of these are the product of internal e-mail lists where people are just throwing ideas around. have you seen this and this? and then having the data feedback of what people are sharing helps us understand what people really love. if they share something a lot, why is that? maybe they're sharing it because there are corgis, because it's tied to father's day, xyz.

then you say let's test that and make another piece of content that is tied to a holiday but does not have one of the other elements. you start to get that are in better at understanding what really touches people's heads and hearts, funny bones. and we make some of the things that people will clearly get excited to share. >> at the creativity festival in cannes. i just looked up the 42 people you cannot believe exists and it's pretty epic. chelsea handler is headed to netflix. they signed a deal with the comedian including five specials in addition to a new talk show set to start in early 2016. her current late-night talk show is ending its run on the e network. for more on what the deal means, i want to bring in jon erlichman.

still with us, our special guest host for the hour. why did chelsea make the switch? >> on some levels, this is not surprising to me. netflix is about comedy and chelsea is hungry to find something interesting in the. -- and new. they brought back "arrested development." they have "orange is the new black." the first thing she will do is a comedy special. they did one with aziz ansari from "parks and rec." where i'm a little unsure as there talking about redefining the rules of the talk show. if you think about where netflix has avoided stuff, content so far, it's those things that are really tied to linear television. are you going to get into sports and they will say, not really?

it's hard to get sports rights but what's the value of a sporting event after everyone has already watched it when you are an on-demand player. how they avoided topical issues that seem less relevant a week or a year afterwards the key people interested in chelsea handler. they will figure it out. >> i know she's doing specials but she's also doing a talk show which may be tied to an actor's movie release or some sort of news. will that play as well on netflix? >> the first name that came to mind was jerry seinfeld. he has had some success on another platform, crackle, on the sony with a show about comedians getting in vintage cars and they just talk. she may have to avoid those references to it's coming out tomorrow, but there's no reason why you would not want to be going after people who have a movie to pitch because that's one of the great ways that talk shows exist.

you can go and get someone because they want the publicity out there but those are some of the big issues they will probably have to talk about. it was just a few years ago that the stock was plummeting. >> it's a spectacular turnaround story and it's amazing. i love netflix. >> you watch a lot of stuff on netflix? >> "house of cards," "homeland." is she bringing chuy with her? [laughter] >> she's not saying anything yet but she does have a team. 20 tons like you will watch. >> i will watch. i'm a chelsea fan as well. >> any other favorite comedians? >> i love jerry seinfeld and billy crystal. >> john oliver recently went to hbo, netflix's nemesis and he's doing a weekly show and it's

gotten mixed reviews emma though i personally love john oliver. what do you make of the two different directions they've gone in here? >> is a great opportunity in the shifting landscape of late night for netflix to have made the moves they've made. in terms of the kind of stuff that ends up being discussed, i do think you have a big difference. he can say to his audience, be sure to tune in on sunday to watch this. will they be exploring the same kind of subject? they do not really to begin with so that probably will not be a

big issue. he would have to take a different spin if he was on an on-demand platform. i think people like netflix has this global reach which is why some comedians have already teamed up with them. >> jon erlichman, senior west coast correspondent, thank you. dr. beth seidenberg from kleiner perkins, stay with us. forgot to take your meds? there's an app for that. helping patients to the medical treatment plans next. ♪

>> i'm emily chang in this is "bloomberg west" on bloomberg television, your phone, tablet, bloomberg.com. looking at how tech is changing the future of health care. four out of five adults take a combination of prescription drugs and over-the-counter supplements. how often are they taking a properly? san francisco-based mango health has developed an app on how

medications could be interacting. they just raised a series a round led by kleiner perkins. dr. beth seidenberg just with us. you joined the board of mango health. what did you see in the company? thanks we saw an opportunity to address a huge problem. they just don't take their meds. if you look at the cost of chronic diseases and not taking your meds, it's in the hundreds of billions of dollars. it's an enormous problem. we see this as an opportunity to

have a mobile platform that can engage people. jason is a spectacular entrepreneur who took his experience in mobile gaming and moved it to health care. >> tell me about that. it used to work in zynga and the gaming community. you intricate it some gamification into it. >> it sounds crazy but it's actually quite similar work. our focus is building products that consumers want to use every day for a long time and we apply that now to solving some of the most difficult problems. >> what are the most difficult problems? chronic diseases very much or a focus. >> it represents about 75 cents -- 75 percent of all u.s. health care spent. >> what are we talking about? >> hypertension, high cholesterol, diabetes.

they are not feeling the effects of this disease every day. we're inspiring them to start thinking about this part of their lives now. >> there are so many health and wellness apps out there. why does mango stand out to you? >> a lot of it is taking the gaming experience and bringing it to health care. it's all about engagement. if we can make these apps fun and reward people, we will see a big uptick in adherence. that is what jason is doing. we believe it will really make a difference. great example, my mom. jason knows. we get real-time feedback. i have her on mango health. it's really making a difference for her because she has multiple different meds she has to remember to take every day. quite frankly, she loves the reward. target points and other things that she can earn is really motivating. >> what kind of stats are you seeing? initially the first month you

see a lot of engagement and then some people sort of dropped off, the same problem you're seeing with some of these health devices and wristbands. >> the key thing to track is used over time. what we tend to see is 90 days in, we see about 67% of our audience still in the app regularly, three times higher than what is typically seen in medication and health apps. we are very pleased with that. equally important is levels of adherence. that translates to lower cost of care over time. >> we were talking about iwatch and the potential to come out with something. is that exciting to you because they have their own health app? >> we are excited about building

a tool for daily health management. at her health starts there's a that's really been our focus. >> i want to ask you a little more about this. we focus on consumer and enterprise tech where there is so many venture capitalists out there and beth is more in a league of her own really. is that the case when it comes to life sciences and health tech? >> we sit right at the intersection of consumer tech and enterprise health care. there are very few firms that understand the intersection of those two things. kleiner perkins and beth happens to be one of them and they have a very unique perspective. even health care-oriented investors do not understand where we are. as the incentives in health care shift, there are huge dollars to be saved here. we are just so pleased that a firm like kleiner has the expertise. >> how do all of you keep the different kinds of investments

you are making for k.p.? >> one thing that differentiates us is we work as a team. he's in there working with roderick. and john is working on design. we have mike working with all of the engineers at twitter helping scale the organization. it's really a team effort and it takes a village. >> beth seidenberg, our guest host for the hour and jason oberfest from mango health, thank you. how good genome mapping technology help doctors treat cancer? using tech to hunt for a cancer cure next on "bloomberg west." watch a streaming on your phone, tablet, bloomberg.com, apple tv, and amazon fire tv. ♪

>> welcome back to "bloomberg west." time now for the bwest byte. our guest host, beth seidenberg, from kleiner perkins is with us today. >> 1.7 million. >> what's that? what's the number of people in the united states diagnosed with cancer in 2013. >> you do a lot of work processing cancer treatment what kind of process is there? >> we're making major, major

strides. we now have technology based on the human genome project where we can map a cancer genome. >> you can map a tumor. >> you can take an individual patient's tumor and then provide the list of the appropriate drugs or therapies that are going to be effective for that individuals tumor. a company that we invest in, foundation medicine, is doing this work today and we are seeing major project. the cancer institute just launched a project for lung cancer where they are using this to test multiple different drugs to figure out a cure for lung cancer. >> you are also looking at how to regulate the immune system to fight cancer. how does that work? >> immuno-oncology.

there is a product on the market which basically is for melanoma. in that case it uses this antibody to go in and regulate the t cells that will go in and kill the cancer cells. it's regulated. another type of therapy is taking an individual patient's t cells, removing them from the body, using an antibiotic receptor, car t cells, and then putting a virus into those cells. it takes about 10 days to go through that process. you take the patient's own cells and put them back in the party and they become smart bombs. -- you put them back in the body.

they hone in to where the cancer cell is like a trojan horse. they invade the cell and they kill the cancer cell and replicate themselves so they take over the replication process and then they go off and do it again. spectacular results. >> you hear a lot about this unicorn that someday cancer will be cured. there are so many different ways. is the cure for cancer going to be much more incremental? or isn't someday -- boom -- cancer is cured? >> it will not be a boom, but it will not be a bust. we have technology that by being able to map the genome we have the knowledge to know what treatments to give. like hiv and other illnesses, it will become a chronic disease. i believe that will happen in our lifetime. we are seeing such dramatic changes that we are at the beginning of that journey.

>> you are saying within decades? >> i'm confident within decades we will see certain cancers, you are calling it a cure, but basically test and check so that it becomes chronic, indolent, and people will not die from that illness. we will die from something else. --they will die from something else. >> does the fda and regulations make your job more difficult? >> it makes it more interesting. the fda, they helped make the breakthrough because of breakthrough therapy designations. >> dr. beth seidenberg from kleiner perkins caulfield buyer. it's been great to have you. thank you all for watching this edition of "bloomberg west." it's friday. have a wonderful weekend. ♪

>> this week on "political capital," ralph reed talks about evangelicals in 2016. obama v. cheney. margaret colson and megan mcardle debate common core and renaming the redskins. we begin the program with the chairman of the faith and freedom coalition, ralph reed. thank you for being with us. your conference is this weekend. mo