♪ >> live from pier three in san francisco, welcome to "bloomberg innovation,we cover technology, and the future business. >> he will put off his retirement. he was just given a two-year contract extension which would keep them at the top of disney until june, 2018. we look into what if this isn't means for disney's business as well as his knees plans to groom -- we look will stop

into what this means for disney's business as well as their plan to groom a successor. the much-hyped ipo has come crashing back to earth, shares fell about 12% after opening at the top of the range. is it the german company's business model which is replicating u.s. websites like airbnb and pinterest that has investors concerned? it has been a magical one for disney and bob iger as the chairman and ceo. now, it is poised to continue as eiger continues his retirement. he was given a two-year contract to remain on the job until 2018 which will give time for disney to pick a chief executive officer. annual revenue has grown from 32,000,000,002 45 billion angst to properties like espn, hit

movies like frozen. fromnual revenue has grown $45 milliono properties like espn, hit movies like "frozen." >> as much time of his as they can get, the better for the company. of course, he has a great bench under him. i am pretty bullish on this company. >> there's been so much talk about who would replace him, it is really down to two people, two very high-ranking disney executives. does this mean they were not up to the job? >> why certainly i don't think it means that. one of them i know, the other one i have admired. i think that everyone that has

worked with and would say that executives. bob is in great shape, i wish he was in half the shape. >> -- i wish i was in half the shape as he was. >> i wonder if they just could not make a decision and realized that they needed to remain bob iger needed to remain, what do you think his greatest incompetence have been and what were his is challenges? >> his accomplishments are many including the kind of organization that you put together after he took over. his acquisitions have been phenomenal. pixar, lucas, marvel. these are amazing properties. he has completely transformed disney. mommies disney. it is young men, young women,

everybody. digital transition is hard for every traditional media company and they are trying a lot of different things. i think they have a great future. >> the thing that stands up to me is what happened over the course of the technological changes forced on disney, both changes in the cable business, the death of the dvd business, that was so important to them when he took over the company, and the way that he has really managed that. are there lessons to be learned for other companies here? >> well, every company has had a different set of challenges in terms of the networks and the degree to which they have been involved in distribution and the capital load. the big lesson to be learned from bob iger, it is an old general election lesson is, hire great people and ask them in a big way and be there to empower your company and have a vision. wasink, for instance, i just over in china and what they are doing in china is very impressive. the entire middle-class in china

is twice the size of the entire united states of america. 'sthink that iger international vision, his international markets. quick to stands to take over -- >> who stand to take over? even the board cannot pick. they are both super impressive man. i'm not an expert on j resume rasulo. you never know. there are four or five other good guys. there is a handful of other people you would look to. one thing we can be sure about will be thoughtful. saying this out

of abc. >> the drama is pretty interesting. there was a lot of drama in years past. ger thatit about i removed that thing which is always attached to hollywood? man,think he is a mature he is a self actualized man. he has a great family. i am not a friend of bob iger's. i think he is got it all together. >> what is the likelihood that this is extended again? >> well, he is in great shape .ull

this certainly means he will not be running for governor or senator or president in the next two years. >> thank you for being a good sport. mike morehouse from l.a.. he's the cofounder of microsoft, he is one of the wealthiest people on the planet. what is he spending his time and money on? peace is dennis lucidly with bloomberg to share all the details. -- she sits down exclusively with bloomberg to share all of the details.

west." is "bloomberg bill gates is well-known for his philanthropic work. his latest cause, digital payments for the poor. erik schatzker said, the software mobile in his lucid interview and he began by asking gates wide inking is important for those living in poverty. but to go listen. mogul gaveware his discursive interview and he began by asking gates why banking is important for those living in poverty. >> now we are involved in trying to get a very efficient digital payment structure set up for all of the folks in the world to get

financial products that work for them. >> what are you doing? >> you should be able to send money to your relatives, you should be able to track the money that is coming in, set aside money to buy seeds for next year. there are countries where this is beginning to take off. this might be the last country , up in somaliland, almost half of the gdp is done digitally will stop >> i don't need to tell you that the poor unbanked since there have been thanks. they put currency under their mattress, cows, gold. they are getting cell phones. the capability of identifying who is using the cell phones.

people will have help and lots of innovative products competing on top of the digital currency platform. currency, digital money helps to increase access to financial service as the same time as it lowers the cost of delivery, why is philanthropy needed? >> philanthropies should be here to trap this. there are a lot of regulations in this area and understanding how they can make the cost of remittances where you are sending money back to your family and your country of hasin, how, right now that about a 5% overhead on it. we think we have a role to make sure, particularly for the smaller transactions, the regulations don't impose those very high cost. once this gets going, then we

will step up to the applications and say, how does this application help the mother make sure the money is focused on the kids, how does it help them stay in school? >> some of what you just described, they needed to move money from place to place, the cost of doing so, the overhead, as you put it, makes me think, believe it or not of bitcoin, because some people have said that bitcoin is the answer to those problems. are you a believer? what bitcoin shows how cheap it can be. bitcoin is better than currency -- >> bitcoin shows how cheap it can be. bitcoin is better than currency. it can get pretty convenient. the customers we are talking about aren't trying to be anonymous. they are trying to be known. the bitcoin technology, you can add to it or build a similar

technology. this is nothing to do. >> what are they using to solve the problems you are interested in? >> the mobile companies have been fantastic. in some countries it is a start up company that is paying. the be cap offering comes across any phone. regulations for potted that we think will be very persuasive. that we thinkct will be very pervasive. if you want to put in like electricity in a city, collecting the bills is why the understanding of infrastructure in these areas is a real thing holding back the economy.

>> you mentioned banks, the legacy institutions, the most part, banks, credit card companies, payment processors, friend or foe? >> many of them want to have these additional customers but they have to embrace the idea that the fees are going to be a lot lower. they have to find a way concerning these new customers. that means they will not be coming in and they can charge a higher fee when you actually want to cash out. it is a peer digital transaction, then you should be paying less than 1% to move that money from you to a merchant or from you to a friend even with meeting all of the regulatory requirements. with billhatzker gates. up next, part two of our exclusive interview with the

microsoft cofounder.

>> welcome back. this is "bloomberg west." we just heard from bill gates about digital payment revolution. what does he make of apple pa y? erik schatzker sat down with him and asked him just that. >> apple pay is a great example of how a cell phone that identifies its user in a pretty strong way lets you make a transaction that should be very

very inexpensive. the fact that in any application i can buy something, that is fantastic. i can do that transaction and you will be quite sure about who it is on the other end. whether it is apple or google or microsoft, you will see this payment capability get built-in, that is built on andstry-standard protocols these companies have all participated in getting those going. sure itll help make gets to critical mass for all of the devices. >> have you considered asking tim cook to help you with what you are doing? thingsthe kind of a sick -- basic things underneath are not what apple is doing. apple will take anybody they are signing up for the payment

instrument. they are not involved in driving the efficiency for super low amounts of money. when we get these things in other countries, having interoperability for people on their devices would be worth doing. >> you were talking about wallet pcs and digital money 20 years ago, how come microsoft hasn't into this market already? a lot ofmicrosoft has the banks using their technology to do this type of thing. in the mobile devices, the idea that a payment capability and storing the card, that is going to be there on all of the different platforms. the divisions, we have got microsoft had a really good vision in this, my time on this area is all foundation. >> you were advising the new ceo on technology and strategy,

should microsoft the a player in this business the way that apple has become a player now and google as its own digital wallet product and paypal is being spun off from ebay. certainly microsoft should do as well or better. as all the things that microsoft needs to do in terms of making people better in their work, helping them communicate, it is a long list of opportunities that microsoft has to inundate and taking office and making it dramatically better would be high on the list. that is what are the things i'm trying to make sure they move fast on. >> are they moving fast enough? >> i'm very happy. i see a real sense of energy. there is a lot of opportunity. if there's something that the company isn't leader oncoming ecc needs to change that. -- if there's seven at the

on, theyeeds a leader need to change that. >> you have been outspoken on ebola. theast heard from you on subject before the patient was diagnosed in dallas. what do you think now? >> we do have an ongoing tragedy and it is really awful. inre are 22 million people these countries and we need to get this under control because not only are people dying of ebola, the health systems are shut down. ,ll of the other disease measles, malaria, more deaths taking place. we need to make sure it doesn't spread to other countries. good primary health care system, you should be able to handle that. the fact that this dallas , i feelwas identified

confident that the cbc is on top of that. i wish every country had a help system like that. there are parts of africa that don't, we are helping them to build up the capacity. was ap nigeria and there piece that went up there. all of the contacts have been traced. ebola in, there is no nigeria. the u.s. government is picking up on this. had betterave primary health care systems. >> that is a very hopeful perspective. what if people don't see it your way, what if panic takes over? didn'the u.s. government have the cdc, the department of defense, were not working with other countries to get

volunteers to come in, then the treatment capacity would not get to the point where people are able to come in and be treated and not infect other people. without this leadership on this, you could see large numbers of people not just in these countries but a lot of spreads. this is a big challenge. tools, response, generosity is going to be up to the challenge even though the death toll will be quite significant. bloomberg's erik schatzker earlier today with bill gates. i sit down with the so-called godfather of artificial thelligence, how he founded moonshot laboratory, google asked.

brokeners might have into celebrity accounts on apple's icloud service but it is google that is being threatened 100 million dollar lawsuit. the company is accused of "blatantly unethical behavior for blatantly refusing to taking down the image." we have post hundreds of accounts. it is used for stealing private photos -- it is used from any

things, dealing private photos isn't one of them. they cannot clone the success of alibaba's recent ipo. instead, shares of rocket fell in their trading debut. ofsat down with the founder -- and a former rocket employee. i asked him about the market reaction. >> maybe there is concern about their growth in emerging market, they have cited a lot of new companies in. you will take time.

>> the speed of how they expand. this is approving the business models. company criticized for copying other companies around the world. arehat a fair company or they more innovative than we give them credit for? >> that is a fair criticism. they copy already successful, proven online business models and take it to countries where they don't exist. this is the core of their business. a lot of the u.s.. it's that they copy tend to ignore the other 6 billion people in the world who might also want to buy shoes online or order food online. this is the core of what they do. also, integration apples on different levels. happens onion different levels.

when you start in different countries, you have obstacles. you don't have a manual for that. i think that rocket is very good at innovation at that level. it is a diamond doesn't. >> what are they like? what is it like to be in the room with them will not it seems like they have a certain type of drive. >> he runs most of the interest. are intense guys to work with. they are very logical. he will keep going until there is no more shoes to sell. when that happens, he will ask you to call the government to

ask you to change the government said that people can buy more shoes. >> you have gone support from the famous incubator here in the u.s.. how are they different from rocket? >> they are very much different. product,ll about the about delivering something that people want and creating something new. they would never dream of copying an already existing model. it is a completely different approach. i would say they know that in order to make those ideas happen , you need to be able to build the company and this is where i think that rocket is a very good school to go to for that. it doesn't have the new idea to start a company. this,hink when we look at we tend to look at ipo's and say, if it goes up afterwards, .t is successful sto money as much as

possible? did they intend to have a high-priced ipo? >> is definitely the strategy for them to raise as much as possible to continue to build, new companies and also run the existing companies. it is part of a bigger play where all of these companies, rocket will be one big network that enables them to launch new we haves very fast and an advantage compared to amazon or southwestern bell, may be going there one day. want tosaid they transform the company from more of an incubator to an operating company. how do you see that transformation happening, can they do it? >> this is kind of an operator. it is the incubator in the sense that it starts the companies and it brings in people to operate those companies. may be that we will see

more companies where they would go in and expand the company's to the rest of the world as we saw with groupon. is more ofinternet an operator than an incubator. >> the former rocket internet executive. fixing one tough problem, education. of udacity is the first guest on my new show. >> i wanted to explore what it means to work in silicon valley. i found a team from the basically they built a technology. we joined google. >> at what point did they say, we want to do self driving cars and you know something about that? what larry said, it is time to do something courageous. larry said, it is

time to do something courageous. larry said, well, give it a try. don't blame me for screwing up. >> you how to found google acts. i would say thrill of the skepticism, just do it. it turns out that they are the same personalities. absolutely, yes. i came up with this name google acts. google x. it was a backpack. and then we strap a cell phone to the glasses. my nose would get crushed. it took a whole bunch of iterations to make something

that you can actually wear in normal life. so many otherothe>> projects. >> another one of these crazy moonshot that you have to be a believer to even attempt it. it, by sheer thinking about you launched balloons, satellite like equipment, the downside of balloons is they are exposed to wind. is the potential? >> to build an entire internet that is into the air. they have very low cost, they provide unprecedented bandwidth and coverage to places they would never get covers today like central africa. the vision is spring the internet everywhere. -- is to bring the internet everywhere. >> facebook is trying to connect the world in different ways. who wins, google or facebook? >> i would never

comments. >> contact lenses, they are big forgh to hold an array receiving energy, putting the sensor on. it is actually very feasible. we built in contacts lenses that can measure your glucose level. >> i can tell you every time i am round the founders, i feel it. you have to have thick skin for how smart these guys really are.

>> this is the week that goldman sachs hosted a clean energy ecosystem summit bringing together industry leaders to tackle challenges facing the clean and renewable market. the all of the hype, have companies lived up to it? this, the global

head of clean tech. clean tech had a lot of promise earlier in the decade. have changed changed? >> if you look at any new industry, it goes through early enthusiasm, then rejection and what i call early innings volatility and finally acceptance. the internet went through the same phase. stocks went up pretty dramatically. couplelt over the next of years, went sideways for a couple of years. their success today. our industry is relatively new. it went through the first couple , early enthusiasm, rejection, certainly a lot of volatility as there were shakeout. the companies, those that have come through the other side, they have performed extraordinarily well. >> will clean tech have its

moment? >> they arty have. if you look at their portfolios and some of the successes out of the portfolios, there have been andendous successes terrific returns, of course there have been failures as well but that is the nature of venture capital. that's the nature of capitalism. you hope to have one out of 10 companies that have a return. >> you cannot talk about specific companies but what about trends? what kinds of companies? >> there are a number of sectors that are doing very very well. let's look at electric vehicles, for example. just a few years ago, and national agency predicted that there would only be 2000 electric vehicles on the road by the year 2035. we have blown through that already. there are 20 different brands that you can buy, does anyone think that we will have millions on the road by 2035 when today

15 million cars are sold every day? no, that is an area that has done quite well. distributed generation is another. solar on rooftops can be on your house, office, warehouse. another national agency said they would just be one gigawatts of solar produced. by the year 2020, well, companies are doing that today from individual companies are doing that today. what we see is that people's predictions of most of these andors have been wildly low they are exceeding expectations. >> how big of a priority is clean text for goldman sachs? is a very large priority. in 2005, we made what we thought was a pretty bold prediction to invest or finance a billion dollars over the past 10 years. well, we blew through that just

one year later and within five years we had 23 billion dollars. two years ago, we made a new target, we said we're going to invest or finance 40 billion. people thought we would never meet that target. here we are, two years later and we are $20 billion into that new target. we have an environmental markets group at goldman sachs which is focused on this. we have clean tech and the nobles group. everyone else in the sector was firing their teams or disbanding their group, we doubled down and we hired more people internally, from the outside, and we went after it aggressively because we knew this is going to be a large market opportunity and we were right. >> the global head of clean technology and renewables at goldman sachs, we will see if the moment for clean tech happens or continues. thank you for joining us. >> let's get a check on stories making headlines with mark

crumpton in new york. >> more than 80 people in dallas are being monitored for symptoms of ebola. they came into contact with ebola patient thomas duncan as well as others can headmanned met. for this family members have also been ordered to remain at home until at least october 19. the new york city commuters could face years of trained allays into manhattan. amtrak plans to start remodeling two of its four east river tunnels within the next year due to repairs needed. they said that a permanent fix is needed for the hudson river tunnels all the work cannot start for about a decade. directv has renewed the rights to carry the nfl sunday ticket package and also stream it online. the deal will cost about one and a half million dollars according to a person familiar with the matter. , whose purchase of directv is pending, had a chance to walk

away from the deal if the contract was not renewed. >> intel has the latest in tree into the tech race to your wrist. we will get a look at the peak watch.

unveiling the latest

entry in the wearables race with the heat watch. last march, they bought peacemaker basis. it goes on sale next month for $199. we recently spoke to the intel vice president about the device. >> we bought them because the technology is phenomenal. i think it is the best in class when you look at all of the fitness and wellness trackers, this is the one that works and gives you the proper results. >> you have a new product. is the basis peak, our second generation device. it is better all the way around. this one is thinner, it is made gorillanum and it has glass on top and a touchscreen, etter sensors. offensively it is the first generation of steroids. this does everything the first

one did come except this one you can wear swimming. it is waterproof up to five atmospheres and it is just a better product. i've got my jawbone, the company has had a lot of issues with a lot of returns. this is about the sixth one i've had in the last year. i also wear a heart rate wonder when i run. so, it sounds like you have solved a lot of this. is must be light. the light that shines through your skin and figures out what your heart rate is. you wear this, not only while you're exercising, also while you are sleeping. you could wear this for about four days. it tells you what your sleep habits are, it tells you what your exercise habits are, it is one device that does many things. >> i get it from a hardware perspective, but fundamentally i

don't care about people, i care about business. talk to me about the technology and the business behind it. >> the technology behind here, there aren't lots of geeky terms for it. basically, these really smart people have figured out how to take the sensors inside of the product and figure out what your body is doing based on what the sensors tell it. it is easy to have a little thing on your wrist when you check it tells you how many steps you took. i had one of those earlier devices. me 1000so tight it told steps. >> i was very it. >> you will not be able to fool the peak. the science behind it is very good. we bought the company not just for the product but i can take that and build it into other products and license it to other people. we would like to get our technology into as many wearable

markets as we can. >> is it an intel chip? >> well, no. the next generation might see a chip. we are a cloud services company. this is all about the experience, what the device does. >> the business behind this, how big is the market? is this just about displacing others or is there infinite growth in this market? everyone wants to be a little bit more fit but there is a later level of anal-retentive miss that only a few of us are actually interested in. >> i think the market is big. there are a lot of people that dailyo see how their activities affect their sleep and how to make themselves feel better. wore -- drankd i a red bull before i wanted to go to bed. my heart rate went up. space is ahe fitness

very big space and we are just getting to the beginning of this market. will be 50 say there billion devices connected to the internet by 2020. if a small faction are wearables, it would be a huge market. >> is time for the bwest byte where we focus on the number that tells a whole lot. >> how about four? that is the number of adam sandler movies that netflix has two make -- to make and exclusively air on netflix. >> i love adam sandler. the last few movies haven't been such a hit. >> he as done wonderful things. he as done great stuff. >> thank you all for watching

this edition of the show.

>> welcome to "money clip those quote where we tie together the best story come videos in business news. christine lagarde's challenge is slowing global economy. plus, crises around the world. tracking a killer in dallas. health officials tracking dozens people that have come into contact with the first case of the deadly virus. the ukrainee crisis. wel