>> live from p three and the "vanity fair" new establishment summit, this is "bloomberg west." it has been a great day already two.on day we already spoke with disney ceo and president. iger.ore years of bob >> bob iger was talking about

apple, and it's also a big day back there in new york does what else is happening there and apple? carl icahn drafting a letter, and he'll be joining us at 2:00 p.m. eastern. the internet of things will be a $19 billion industry, and we are saying we agree. >> i want to get straight to our top headlines and our editor at large, cory johnson, back at -- pier e -- p three three. >> unless we quickly contain and stop the ebola epidemic, nothing less than the future of not only west africa but perhaps even africa is at stake. >> ebola has killed more than 3800 people in africa since

december. hackers connected to the massive j.p. morgan chase breach may be responsible for attacks on more than a dozen other financial companies. federal and state officials also investigating. and facebook's ceo mark zuckerberg is in india, and he has been talking about improving internet access around the country, calling in a basic human right. >> because you have embraced science and research and education, the next generation here has the opportunity to define the future and bring india to the world and the world to india. a key to this next big opportunity is going to be embracing the internet. the second most facebook users, second only to the united states. and the head of twitter news is the latest executive to leave

the company. to said she was persuaded join the company by the former ceo. >> thank you. i want to get to our lead story of the day, and that his car all icons striking again, sending a letter to apple ceo tim cook -- .arl icahn striking again he says shares are undervalued, and he wants apple to buy more so shareholders can get more of their money. he got his way ultimately when it came to paypal and ebay, ebay spinning off paypal, taking a little longer than he thought. in his letter that he likes what apple is doing, but he just wants them to do this thing with his -- with their shares. of car all make icons sticking his nose out here

in silicon valley once again? this really signifies the difference between the east and west coast. nominees coast, you have companies well used to activist on the westnd coast, this is new for us and also a sign of the company's maturation. i think it signifies that an east coast investor, without running pressure -- without putting pressure, would not get the reaction he wanted, and i think he is running on the heels of what he did with ebay and hoping he can apply the same to apple. >> how can ceo's take to someone who does not know the ins and outs of the company and does not have any experience? steve jobs would not have knocking atl icahn his door. >> any experience ceo is going to pay attention, but they will not get distracted from running their day to day business -- any .xperienced ceo

the issue karel is highlighting is you have a company with $164 billion cash the issue -- the carl is highlighting is you have a company with 106 to cash.lion -- $164 billion >> he and tim cook talked it out, it seems, and now he is back. why? >> first of all, i disagree with stephanie posco intention that steve jobs would not have talked stephanie'swith contention that steve jobs would not have talked with him. this reflects a maturity in apple that it did not have before. the second biggest company in the world by market cap after apple -- exxon. that's the kind of company they keep in terms of a stock and

cash-generating machine. as a result, the company has different demands on it, but one of the things we know about it in silicon valley is the bust cycle of boom and bust. we have seen some huge technology busts, and i think that looms very large in the minds of people who have worked out here. apple has been near death before, and that's not lost in the minds of a lot of people. teel, mark andreessen, not big fans of carl icahn -- peter teel -- peter thiel, mark .ndreessen >> we try not to get too distracted. never before have you seen the zeitgeist across so many industries coming together with

credible opportunity, so i think we china not to get distracted, but at the same time, and highlights the maturation of the company -- i think we try not to get distracted. you have companies that have seen tremendous growth, and to us, they still feel like he young, innovative companies, to activist investors who are looking purely at financials, very different story. >> is it hard not to get distracted by the likes of carl icahn, who has so much influence over shareholders in the market? at the end of the day, they do have to answer to shareholders. >> that is true. at the same time, any ceo knows the first job of the business is to keep running the business. >> we just bob iger and jack dorsey together on stage, representing two different generations and technology. howdy you think it is playing

out -- how do you think it is playing out in terms of the power set? >> the coming together of industries, we have seen this .heme you have a really wonderful pairing of young and new, and let's not forget, the michael bloombergs were the young renegades 20 years ago. the fact thatout you've got technology and popular culture coming together. this is hugely impactful on a large scale. this point is a huge business. they created $49 billion in free .ash flow in the last year carl icahn is a tiny shareholder, but it reflects where this intersection of

technology and culture has created a massive, cash flow generating company. it's not about hype or electric cars or cameras on a stick. thatabout a large company generates cash and has responsibilities as a result. >> it's great to have you on the show, and we are enjoying our time here at the summit. coming up, a lot more on "bloomberg west." you'll hear our conversation with bob geithner -- with bob iger. plus, a conversation with the ceo of 23 and me. ♪

>> welcome back to "bloomberg west" live from the "vanity fair" new establishment summit in san francisco. i'm here with stephanie ruhle. we just had a great conversation with disney ceo and chairman bob

iger, one of the most disruptive companies and media, and when you think about it, technology as well. ceo of twitter, recently joined disney's board. they talked about being disruptive and what disruption means to disney. take a listen. >> actually, i get energized by asruption, and i preach similar reaction at the company. i think disruption creates opportunity. while most people look at it as a threat, i think, again, it is an energizing force, and we look at it as something to take advantage of. about the things we can do that disrupt our own business disruption is inevitable, so we might as well .et ahead of the curve >> what do people from the world of silicon valley and disruption

bring to disney? >> we had some mighty disruptors on our board. first of all, i think boards, in order to be effective, need diversity of opinion, background, and voices. i think it's really important for shareholders as well. they bring a perspective that oftentimes companies need to thrive. i love the fact that jack is on our board. cherylt disrupter with -- and of course, steve. they just bring an energy and advice on where the world might be going because that is what they are thinking about. >> how excited are you about four more years? .> it's two more years

it was a mutual decision. i have one of the most exciting jobs in the world. >> because you get to go to disney world for free? >> exactly. we have a collection of great brands and very dynamic businesses, and it's great to have this experience, and not only have i enjoyed it, but i feel there's a lot of unfinished business, a lot i'm still looking forward to with great energy and great enthusiasm, so why not? >> what does it mean for succession? you said you are looking for the next leader. how do you decide who will be next? >> it's a decision the board will make, obviously, with my input. we have been developing executives at the company. we feel good about the process. not only have we talked about it a lot, but we've given people brought experiences and had an opportunity to observe them in

their various positions, and we feel really good about how we are set up for succession. we probably will name ac 00 early enough to give that person a chance to expand their experience at the company -- we earlyly will name a coo enough to give that person a chance to expand their experience at the company. do for cableit bills when espn is the heart and soul of them as it is? have sought over time to not only produce but to license a wide array of very high quality sports for espn, so we think the offering is not only strong but only getting stronger . we had u.s. open tennis this year. the expanded deal we had with the nba and so on, so we believe

.he value of espn is increasing that said, we are mindful of any cost of any product in the marketplace, and we continue to sok with our media network the price-value relationship continues to stay high. >> you are on the board of apple ,nd also an investor in vice and the ceo of i suggested that if apple really wants to disrupt television, apple should buy a tv network -- the ceo of vice suggested. >> i do not comment publicly about their business. i love their products. i'm sureppy user, and their business will expand in a variety of ways. they represent a trend we are seeing in many places and many companies, and that's

opportunities for creators or content owners to reach people it's theys, whether devices they create like the new iphone or whether it is in the software they create like itunes and the interface they have with customers. >> carl icahn wrote another letter to apple today. do you believe his actions are helpful or hurtful to shareholders at this point? >> i really do not want to comment publicly on apple. it is not my place to do so. i am aware of the letter, but i think the actions apple has taken in terms of distributing capital to shareholders is .ubstantial >> disney's chairman and ceo there. i want to get back to pier three there. >> he was wearing a blue suede jacket, just in case you could not tell.

blue suede -- that's another level right there. >> speaking of other levels -- that's called the transition -- the markets are selling off today. the dow jones industrial average is down 1.7%. all 30 stocks are down. the s&p 500 selling off about the same. stocksoff about 1.7%, so are down today, and we will keep following the story right after this. ♪

>> welcome back to "bloomberg west." i'm emily chang, live from the "vanity fair" new establishment

ruhle.with stephanie you are known for some of the most iconic buildings around the world, and yet, as the world moves toward connected devices, you are kind of skeptical about the smarthome, the connected home. >> it's also smartcities. i think all these devices are about to really change the nature of architecture and the nature of cities and the nature of cars, and i think it's all done without actually asking us for asking you or asking the population. i think we need to be critical, and we need to enforce some kind of discussion, whether this is the way we want to go, or whether there are forms of

resistance or forms of real collaboration because all of this is happening in laboratories and spaces that we .ave no access to i want the population at large to have an influence. >> does the population realize that soul and spirit will be lost with completely connected cities? >> i think it is not inevitable, but it's possible that a lot gets lost. people used to feel great that they were anonymous. feeling anonymous was giving them freedom and a feeling of adventure, and i think they have to be very careful that those elements are not kind of taken us. from we have to resist in some form. >> what do you think of an increasingly modern design aesthetic? apple building a giant circular spaceship-like campus -- do you

like that? >> i think there are some really great buildings being built right now and some less great buildings being built right now, but i think it is interesting that companies like apple are almost complete independence of any context, independence of any city, so they want to stand alone. i think people feel better if they are part of a larger context. ceo of ciscoar the say the internet of things is$1c schmidt saying that everything is better now that we are connected -- who do you need to listen to your message? >> first of all, i think this is a very american phenomenon. i think in europe, they would

face severe criticism -- it's not criticism, but questions. there are serious questions, and i think the europeans are actually engaging. know the serious discussions are taking place. >> one of the most famous architect in the world, thanks so much for joining us. we look forward to seeing you on stage later today. we'll be back from the "vanity fair" new establishment summit later on "bloomberg west." thats 26 past the hour, means bloomberg television's "on the markets." the s&p 500 falling as much as 2%, at one point erasing yesterday's rally. small caps are leading the way down, and we also see the vick's -- we also see the vix moving north today. rent track -- rentrack bucking

the trend. we'll be back "on the markets" once again in 30 minutes. ♪

>> welcome back to "bloomberg west. i am emily chang live. we're with stephanie ruhle. we have been talking about the management and we are also -- ing to the next joining us now here on the set, scott sanford, formerly of goldman sachs. for many years. now founder of an investor in both of these companies. i want to find out what your

companies do and why it is the next big thing. replace all ofe the hassle and speaking to a salesman for eight hours. you go to your desktop, computer, laptop, or mobile phone, you click and that is it. how about you? >> the easiest way is the online businessesvice for and consumers. say you wanted to send your nephew a set of golf clubs and he was on the other side of the country. open up the ship app, take a picture, tell us where it is going, and will we will take it to our warehouse and send it to carrierst cost shipping

for only five dollars. >> as someone who has seen so many tech companies go from infancy to ipo, what do you see in them? >> i see them, the founders. it all starts of the founders areas it starts with a vision come a passion from a desire to truly transform the consumer experience and what i love about both of these guys is they both come from the industry's -- the industries they are transforming. have taken that frustration and passion and truly transformed consumers. >> isn't that what makes it risky? know what iseally in those industries? >> that is what makes it interesting. uber and airbnb, these guys did not come from the delivery business or the hospitality business. it takes a fresh perspective to step back and say not how is it done but how should it be done.

and how it has been done move it to the consumer experience and shift value to the consumer. >> one thing we know, mark was on yesterday saying, he felt like he was going to throw up basically all the time. do you have those moments? what is it like? >> it happens all the time. loan and trying to change the industry for eight years. you have regulators. it is hard but at the same time you see people buying a car and getting a car with a boat and a lease, getting outside, they are so happy about it.

that is what gets you going. >> you mentioned regulations there it is that the biggest problem you face? witha consumer perspective uber, nothing could go wrong. the fact of the matter is, the leadership team at uber is at war with light -- regulators and legislation. is that the problem you will face? >> for us, it is a little bit easier. we face a lot of challenges ourselves. problem, it at the is really a simple problem and complex solutions. we tried to solve it. what is the simplest thing? all we ask is you take a picture and tell us where it is going and that is it. ups, how service and do they feel about it? >> they love to work with us. we're reaching consumers and businesses that would not have gone without a yard an example, we have people creating businesses on top of our lab form.

it is expanding the market and air happy to be a part. >> when you look for companies you think could be big come a what are you looking for now? the uber? is that it? is it more a sharing economy? >> it can be sharing an on demand. we take fundamental steps. market?big the awesome idea in the big market is probably not a good idea. the hundred $49 million. that is a pretty good market. third-party logistics, $150 million in the u.s.. will he get all or infraction? that is to be seen era number one, a big opportunity, number two, they really transforming the consumers areas? the effect both of these companies have is like the first time you got out and did not have to pay. the same exact ink. you take a picture of something and in 10 minutes, it is gone is like star trek.

it vaporizes and then disappears. that was not available before. bubblewrap and deal with all the headaches. same here. what do people hate more than taxes? dealing with a car dealer. >> are you looking to legitimize craigslist sellers? are you going to be the person to validate it? >> we do not think a lot about evaluating credit users. solving the most important industry, there is no one saying, this guy is awesome. we're doing that and not only you, but in a way in which can do it in your home and then deliver next day there and think about it. online you pay for it, and the next day, you have it show up at your door area it is unthinkable.

>> we have got our eyes on you guys. we will be watching. thank you so much. coming up, i wanted to show you a clip of my upcoming news show. be joining me tonight. take a listen. >> how do you come up with the idea? >> we're not supposed to grow into a big thing. it is one of the things we tell founders though often. the best way to start a startup that will really take over the world, do not try to start a startup, just a project you think would be cool to work on. >> how did you decide to work together on this? you are not married yet. as it was scary. we had only been dating for about a year. >> there are myths about the great startups and founders that are boiled down to legends. what is the myth and what is the reality? -here is a myth.

people do not realize and cannot grasp how not interested we were in making money. beginning, we thought the first batch was going to lose money. we just hope they did not lose too much. investors are supposed to be greeter. -- greedy. they are supposed to be in it for the money and frankly, a lot of them are area i am thinking of all these people staying on forms. honestly, in the beginning, we were not trying to make money and we were not asked acting or trying to. >> it was all an experiment to see if these new ideas could work. >> do not miss it. the second episode is tonight with the cofounders, husband, wife, and partners in their own stock -- their own start up. >> betty liu will sit down with elon musk as he reveals to the big d.

we will air that interview 8:00 a.m..rning at an exciting 24 hours on bloomberg tv. ♪

>> we are on the markets tracking the big slide, falling as much as 2% at one point. when europe closed, the expectation was that stocks would bounce back a little bit. you are seeing small caps reading their way down once again. reentering correction.

the vix climbing to 17, almost 18. tracking all the movements here. we will be right back. ♪ >> welcome back. the summit in san francisco. i'm emily chang with stephanie ruhle. a huge announcement. we expect them to unveil a he -- a new car model. elon musk trying to bring his stream of bringing electric cars to the masses. >> the number one person on vanity fair's list. >> exactly. but how realistic is his train? sam reports. we expect them to unveil a he -- a new car model. elon musk trying to bring his if i am right, and i thank i am, tesla's new model d will be an upgraded version of their model s with not one, but two motors. one drives the rear wheels and one drives the front. the new car will be faster and

more powerful and more efficient and will continue to bring tesla's vision of bringing electric vehicles to the masses. as far as the masses are concerned, there is still a ways to go. the existing model s arty costs $80,000, more than twice the average amount people spend on a new car in the u.s. new line -- they -- in the u.s. cars priceding in for the country club set. recently, mercedes-benz selling -- b class. the hatchback maybe small the but in the msrp, a fully loaded model that gets you close to $60,000. car tech is a little like

reaganomics. it is all about trickle-down. think about the investments of cars and it likely started on expensive model. but in the msrp, a fullybreaks, mercedes. a new're going to pioneer and expensive technology, it helps to pass the cost onto people who can afford it. over time, the cost reduces, and you can apply the new tech to cars. that is the plan. after the company releases a family-friendly crossover, it is a vented to announce a smaller sedan which will cost half of the price of the model s and that will be the real rate through. -- breakthrough. >> tesla's big unveiling later today. betty liu will we there speaking with elon musk. what do you think will be unveiled today? .> it is interesting there has been so much

speculation on the internet. sam was right. there is all this speculation it could be an all-wheel-drive version of the model s. i heard everything from a driverless car to maybe even a convertible. you heard actually yesterday where you guys are at the vanity summit, you must must have said, they got it right on one point. somebody out there has guessed it right. we will hear that later today. been interesting, the kind of buzz he has been generating. who has gotten this excited about a version of the car in this long? tweet out last week on october 1. overs been retweeted 14,000 times. the stocks have gone up almost 9%. elon musk, already on the list,rds -- billionaires already earned $3 billion and has not unveiled anything yet.

>> what is the risk associated with doing that? i take that back to a big name in finance. il akerman to me he would unveil the most at the day ever. it was supposed to be the new enron. it flopped. all of this was, is and almost setting him up? know, i am so glad you pointed that out. i remember it was so anti-climactic. i think that underscores the general feeling about what is going on with tesla, which is, of morgan stanley said, he thinks three quarters of the stock price of tesla is not evenoducts they do make yet, the product being the model for you just heard sam talk about, the one that will go to the masses. but also these new batteries they will create at the giga factory.

some people have doubts as to whether he could even get that accomplished. it all underscores the entire premise of the company, which is, critics say look, we may look at a company that is overpromising and not just may be over today, but overall with futures. we will put that to elon musk later today. >> elon musk is i here, especially at the vanity fair summit. the things he is trying to do are incredibly challenging and some say completely unrealistic come whether it is electric cars or privatizing space travel. spacex has been a success, but it also ran into problems lately. >> honestly, he is the only ceo i know that says of a straight face, i will colonize mars. and people do not laugh at his face. they take him seriously. >> cory johnson does. >> or he controls three companies.

solar city, spacex, and tesla myrrh -- tesla motors. he continues to make grand visions and outline grand ideas -- ideas. about six years ago he was on the brink of bankruptcy. now look at where he is. some people say, do not that against elon musk ever. classic does not matter what he is revealing. wherever you are in california come it looks a lot warmer than where the two of us are. >> we are freezing. i hope you are warmer than we are. betty, speaking to elon musk. i cannot wait to hear what he has to say. also coming up, carl icahn, the man himself. >> you know he will have something big to say. stick with us. ♪

>> welcome back to "bloombert west" live at the vanity fair. mark zuckerberg is on the other side of the globe in india on his internet.org, speaking with the government and speaking with mobile operators, trying to connect the world and connect more people who are not connected to the internet. i also want to bring in cory johnson, who has been listening to some of the things cory had -- mark zuckerberg has been saying. >> an interesting focus for mark zuckerberg. it blends the line of philanthropy and good business. he is talking about all the people who are not online. not only can they not be facebook customers or viewers of "bloombert west" online. see thattrying to

movement to get people online all over the world and india here a list in to some of the things he had to say. >> point traditional network infrastructure to connect rural communities with low population density is not really cost effective or practical. that is why it has not been done yet. we are working to develop new technologies that can be more efficient for doing this and 15% of people.is >> is not just as simple as getting computers and phones in the hands of you who do not have them. sorts ofut event information opportunities and reasons to be online. >> right. app have the internet.org where they offer free services like job services, health nurses, to users in places like india. it is not just facebook trying to connect the unconnected or disconnected. it is also google, building drones and broadband. >> what is in it for him?

>> i would not expect anything less from you. classwide you heard me? >> let's give him credit for the philanthropic nature of this era let's also recognize the fastest-growing market of facebook. in terms of the pace of their growth, in india, they are growing as fast as any major market, it is their second biggest market already. they want to see that continue. google wants the same thing. they're running out of places in the developed world to do that and many more places online for that to happen. reallyatistic that surprise me, more than 40% of people in china are online. only 12% in india. it is a huge country. >> i'm not totally out of bounds with what is in it for him. >> he does need to find a way to get the next billion users on facebook.

so maybe it is philanthropy, but it is also good business. we will continue to follow mark zuckerberg aunties trip in india. zuckerberg's trip in india. >> the accumulated deficit of -- four tesla. betty liu is getting ready for a big interview with elon musk today. yesterday, there was an amazing statement comparing elon musk to thomas edison, walt disney, which speaks for itself. madelso, those guys businesses that made money before it made money. elon musk is losing money hand over fist. >> early days, many people thought thomas edison and walt disney were out of their minds. they ended up being iconic geniuses, cory johnson area >> yes. we shall see.

>> cory johnson, our editor-at-large. thank you. we will be back with more. ♪

>> from bloomberg world headquarters in new york, i am mark crumpton and this is bottom ane, the intersection with mainstream perspective. after successfully getting ebay and paypal to split, carl icahn is renewing his focus on apple. in an open level -- letter to the apple ceo tim cook, apple is trading at half value and that the company should celebrate shared buybacks. mr. icahn, his son,