>> live from pier 3 in san francisco, welcome to "bloomberg west," where we cover innovation, technology, and the future of business. i'm cory johnson. it is a check of the top headlines. oil prices have their fourth weekly decline. the international agency boosted oil production in the u.s.. cutbacks and rulings have failed to slow output. oil inventories and production of their highest level in more than 30 years. also prices in the u.s. fell in february for the fourth straight month in places decelerating as the rising dollar lowers the cost of imports.

bill ackman says that no one from his office has been questioned over possible manipulation of herbalife stock. the feds are investigating global strategy group. it was one of the firms hired to handle government relations. he spoken market makers. course we have not encouraged anyone to make false statements. you don't need to make a false statement to be negative about the company. within the truth is what's powerful here. the truth is the company is harming people. corey: shares of the company are plummeting. herbalife insistence not a pyramid schema. ukraine's government has accused pro-russian rebels of breaching the treaty. this comes after the imf approves the program to bailout ukraine's struggling economy.

general motors has settled a lawsuit that spurred a massive recall over faulty ignition switches. gm was sued by the family of brooke milton, who died in 2010 after the ignition switch failed in her chevy cobalt. her parents initially settled the suit for $5 million but filed a second suit alleging g.m. concealed evidence in the first case. settlement terms are confidential. tesla is shaking up sales staff. jerome dillion will be reassigned after tesla hires a regional sales executive. the carmaker is trying to find a sales slump. sales in california fell 27% last year. ceo elon musk says sales in china have been excitedly week. the phrases shareholder meeting and blockbuster usually don't go together. disney broke some blockbuster news, talking about a plan of a sequel for "frozen."

they were releasing a live-action cinderella movie and a frozen short called "frozen fever." the timing of three new star wars films between now and may 2017, including a standalone film. and the fantastic success of "the avengers, disney says they will have 11 more films in the next five years. shelley holidays in new york following this for us -- shelby holliday is in new york following this for us. "daredevil was terrible and did poorly, they have in putting a blockbuster after blockbuster of all of these franchises. it's amazing news. shelti: -- shelby: the shareholder's was described as wild. disney continues to do everything right. they are appealing to the masses, expanding on franchises that appeal to men, women, children. they are expanding globally,

they talked about a theme park in shanghai. they are also returning to their roots. the opening of "cinderella," this weekend has disney going back to its fault of fairytales. it's what disney started out as these classic films. they could well be launching in a live act of was "cinderella." it's not for kids, she has jim he chewed shoes, mac makeup $500 necklaces. when you appeal this many people , you can't really go wrong. cory: those are big numbers, in terms of box office. paul joins us from los angeles a guy that is a great rendition of "letting go." you want to build one out -- built -- belt one out?

guest: i'll save it for you too. cory: how does disney do this so well? we've seen so many bombs they've had their "lone ranger," and "john carter." it seems like their franchises are performing. guest: disney is a 100 year plan, it's a legacy. by having these crown jewels lucasfilm, pixar, of course marble superhero vertical and now they are getting really in to the whole fairytale princess kind of area they are just creating such a broad swath, in terms of their audience appeal for all their various movies. by these acquisitions of various companies, and by internally going back to the vault for something like "cinderella," and then combining it with "frozen

fever," in front of "cinderella," this weekend, it will bring in a lot of people just aceto seven minute short. the power of the disney brands aren't comparable. they have really set up an incredible strategy. like shelby was saying, when they these announcements, you can feel the excitement in the room. everyone is talking about "frozen too. " "avengers age of old tron -- ul tron," is coming soon. every franchise, the branding if the ancillaries as well. the international box office is huge. stage shows, product placement, home video, big screens, small screens, you name it, disney is strategically planning for it. cory: when we look at star wars

by the numbers, in terms of the original movies and subsequent movies, -- they paid $4 billion for lucasfilms. is there a suggestion that under disney, they will do better than they were in talks? shelby: they said disney has to prove themselves. they require this wildly popular franchise, but one thing i noticed is that this top grossing star wars film adjusted for inflation did not do as well in the global box office as "frozen." disney does have some work to do. being under the disney brand they gives people a lot of confidence. as paul was saying, it's not just about the launch of the movie. this is what disney does so well. disney is focus on long-term revenue streams. one year after the frozen was the -- frozen release, the dolls were still driving the product release segments.

it's not about just how popular these movies can be, but what kind of longevity they have for the franchise. cory: i may be alone in this but i think box office is one of the stupidest metrics of measuring success. it seems like it's a function of the marketing spin. do you think that disney, as you mentioned, they are clever with the "frozen," short head of "cinderella," do you think this been on marketing will be higher in early editions of these films because they are looking at the long-term? they're hoping big box office for the first movie will lead to freer, cheaper box office for the second? guest: it does cost a lot of money to get these movies in front of the audience and get them excited about it. the thing is, the box office that the ethical first run does drive everything else. they spend a lot of money on that first marketing push. and then the brands take on a life of their own.

in terms of at least getting the word out, they have to do that for the opening weekend and build that up. that's the first push. then you have home video which comes along it is a big deal. with a lot of these disney properties, particularly the classics, people like to own these. there's all the digital downloading that your important, but people like to have these disney movies in their physical collection. it's an amazing play for disney with that brand. we were talking earlier about the marvel movies and how important that is. we are talking about billions of dollars long-term. it seems to be that for each of these verticals, for the superheroes, for the classic disney tales there is an inexhaustible audience. the ability to spin off different characters, if you look at "captain america," winter soldier opened last year. huge numbers opening weekend. it seems like time after time

with his marketing, they are really building a long-term it. audiences know these brands. look at "guardians of the galaxy." it was untested. it was huge because it was marble. cory: in tv "agents of shield," that's fantastic. shelby holliday, paul, thank you. "bloomberg west," will be right back. ♪

cory: and cory johnson, this is "bloomberg west." president obama says he is embarrassed for the republicans who sent a letter to iran's government urging iranians not to complete a nuclear deal with the white house. ron johnson was one of the signers, and now he says he regrets addressing the letter to iran's leaders, but not its

contents. ron johnson: there is no reason to spread their terrorism even further around the world. this is going to be very destabilizing. the letter just told the truth. i think that's a good thing. cory: john kerry told secretaries -- the fact that congress could change a deal is wrong. the interest rate is slashed to 14%. in january, the bank lowered interest rates 2%. the economy has slipped into recession because of sanctions over the conflict if ukraine. rick scott is making an effort to lower businesses to estate from california. after the west coast port strike. republicans and a letter to shipping companies telling them to flee california and the tax-and-spend administration. california has created more jobs, unlike florida, has a balanced budget. if you ask people about their tech frustrations, is a strong

chance you will hear them talk about their home wi-fi network. there hasn't been a big change in the world of wi-fi in quite a while, incremental changes perhaps. there is new hardware and software. guest: it's a reference to a famous architect. cory: we met six weeks ago, you were just launching a product in your website. even though it's not available yet. had to go? guest: better than we could imagine. we did $1 million in sales in 48 hours it in two weeks, we did 2.2 -- two-putt finally dollars in sales. we have early networks that we are testing in san francisco, delivering hardware this summer. cory: why does wi-fi sync? -- stink,.. sometimes it just craps out in

certain places. guest: it's becoming increasingly more important. you will never cover a house adequately with one router. what we've designed is a system where you have multiple units that blanket your home and really fast and reliable connectivity. cory: was the state-of-the-art now? guest: most people by one router that looks at his patient, plug it in, put it in a closet, and leave it there. cory: the linksys router with a couple of antennas. what does it do technologically that's different other than work together? guest: what we allow you to do, if you buy the base system is plug one end your cable or dsl modem, your internet connection. that starts creating a mesh network for your home. as you plug in other units around the house, they all mesh together sibling to your home with fast and reliable connectivity. cory: i have a lot of wi-fi

units around the house, it's supposed to be doing the same thing. why is my not and you say yours will? guest: becomes down to the software. most of that hasn't been updated in years cory:. cory: we've seen the step changes. guest: the underlying software that runs the devices hasn't changed in quite some time. when you log into the ip address to change settings that software hasn't changed in a very long time. cory: what have you done to fix it? guest: we have fundamentally rewritten everything. the software that runs the device, chimney did that -- connected that to a service. we tied it together with mobile apps so people can understand what's going on. cory: who has worst connection? someone in a big house or

someone in an apartment? guest: it all depends. with big homes, you have a range issue. in smaller homes and apartments in cities like san francisco, you have so much competing noise, there's a lot of interference. cory: in terms of the product what is your rollout plan? guest: the biggest thing here is , in hardware, there are components that have to be sourced. processors, memory antennas, plastics, everything that goes into the physical device. by doing a preorder, it really gave us a sense of demand and how many units we needed to produce. now our team is 100% focused on shipping these units as fast as possible. cory: broadcom told me about a 5g standard, a much faster wi-fi standard around the corner. guest: we have qualcomm chips in our device.

we're using the fastest most current wi-fi standard. cory: when you displace any particular company if you have great success? guest: interesting products just don't serve the market today. as we get more streaming video and connected devices, the existing products just do not serve those high-speed and reliable connections you need. i think we have a big opportunity. cory: there's a nasty connection here as well -- a nest connection here as well? guest: one of our designers from nest worked on our device as well. cory: thank you, we appreciate it. "bloomberg west," will be right back. ♪

cory: and cory johnson, this is "bloomberg west." dr. sign -- docusign joins with hp. joining us is the ceo of docusign. is this a big deal? guest: it is. they are arguably the most important software company on the planet. they've already been a great customer themselves, in terms of their sales contracts, procurement contracts, legal partner contracts. we are excited about sap joining with docusign. cory: it's a thing that saved away from the nightmare when i have a mortgage to sign it.

guest: it allows anyone to transact anything, anytime anywhere on any device securely. it's a new category that's emerged, digital transaction management. cory: do you see fraud in this area? guest: if you look at one of the key things that striving her business, it's reducing the risk in security compliance. these are people's most important documents. once the need to be authenticated or signed. it's huge in terms of our encryption technology, our bank class. cory: when that goes wrong, what do we see? what does that lead to? guest: i think you see it for sure in the financial services sector. we talk with a lot of our customers, we talk about on the average saving $30 per document. we do see -- reducing turnaround time.

if we would've had docusign we would've saved millions. cory: you did in acquisition this week, it's hard for me to make sense of what it means and how important it is. guest: it's a rx, a high-performance team that has great domain next for tees and the public sector, also in health care, which is a growing business for us. they bring about 2000 companies and public institutions on the doc global network. usign. we been partners for years. cory: why is the medical industry different? guest: we have fertilized almost all of our business. -- verticalized all of our

business. we have special market terms in terms of real estate public-sector. we are able to take experts from those areas. we can really focus on the customers solutions. cory: ipo in your future? guest: we just keep our heads down and keep focusing. cory: you see company is taking a different approach, deciding to be private for much longer or doing things to develop. you have a lot of experience with public companies. do you think the balance has changed? guest: a little. what you see companies doing, and for sure what docusign is doing, is making the big ones last. global expansion, we have 50 million unique users, over 100,000 companies. we are focused on that. cory: keith, thank you. "bloomberg west," will be right

back. you can watch us streaming on your tablet, phone bloomberg.com, apple tv, and amazon fire tv. ♪

cory: you are watching "bloomberg west," where we focus on innovation, technology, and the future of business. i'm cory johnson. the greek finance minister says greece has made all of the necessary provisions to make its payments. he says he sees the need to hammer out an agreement quickly. >> greece is a member of the european union. it is part of the indivisible eurozone. therefore, our negotiation within the eurozone and within the european union must be an affair that is resolved within the european economy.

cory: greece is trying to get its creditors to release the next round of bailout aid. the country could run out of money within three weeks without additional help. the royal bank of scotland is narrowing the field of suitors for its internationa private inking army. the bank is focusing on a switzerland phone care is the preferred bidder. an agreement may be reached this month with transactions being held up over price. calm prevailed in ferguson, missouri as registers took to the streets peacefully. no arrests were made. state police will assume security until further notice. the person or persons who shot two police officers wednesday night remain at large. soccer fans are cheering their national team into town. -- in bhutan. they beat sri lanka 10 to one nothing.

porsche is gearing up to challenge tesla. the company is working on plans to develop a battery-powered vehicle. the form is not yet known. the target audience is environmentally conscious luxury buyers. tesla has set the standard and that portion needs to step up. it's no secret that u.s. tech giants have been operating in ireland for years. apple recently announced a new plan to spend $2 billion to open the data center there. why move to ireland? we have the ceo of an agency responsible for convincing companies to jump the pond. you guys are very active in silicon valley. i wonder how much the nsa and those issues about surveillance are driving the new push to open up european data centers and so on. guest: there are many reasons

companies come to ireland. our environment is one of those. enter data privacy laws add up to tech companies making investments in ireland. cory: it seems like there's a strong financial commitment from the government to make this the business of ireland. why? guest: ireland is one of the most open economies in the world. we have been successful in attracting foreign direct investment. the government invests about 700, 800 million per annum in research and development. it provides an attractive rmb tax incentive. cory: talked about the r&d tax cut incentives. guest: twin 5% is the tax expenditure on research and development. cory: if they do r&d there, the 25% break.

how you calculate what's happening there and what's happening somewhere else? companies are so increasingly global. guest: we look at exactly what they spend their money on, and what qualifies. cory: you guys have been at this for a while. i wonder how long these tech companies in ireland are changing ireland? guest: they had a profound effect. i think dublin and ireland is more of a tech coverage euro. we've had really strong investments over many years from microsoft intel, apple, google and newer internet companies like linkedin, yahoo!, facebook. we all have the next wave coming through. the airbnb, the dropbox, we have a couple of companies talking about how they conquered europe from dublin and ireland. cory: in terms of jobs, what are you doing to have workers there? i imagine people look to ireland

again. what are you doing to develop talent that's available. it's one of the great problems in silicon valley, being able to find the right engineers. guest: availability of talent is why people are coming to ireland. we have a strong education system, one the highest participation in education in the world. we also have access to a european labor market of over 200 million people. dublin and ireland are very attractive place to live in. cory: talk about negotiations how to those conversations start? guest: we are very active in the market. we have a presence here in the bay area and the valley. or right across north america. everything from going in and knocking on doors and it's using myself to the fact that we are well known i think. dublin and ireland is well known. we introduce ourselves at all sorts of different levels. cory: what's the biggest deal in the last year for you guys?

guest: apple's announcement they're going to invest 850 million euros into a data center in ireland is a huge deal. it adds to our existing presence in ireland. across multi-functions, they are doing everything for manufacturing to servicing. guest:cory: in what ways is that a game changer? guest: justin sheers gale, 21 of the largest data centers on the planet. cory: if you had to build up our capacity for these kinds of things? guest: all of the major names have data centers and ireland, we are seeing a very strong flow investment in that area. we have a very strong renewable energy and ireland the wind blows a lot in ireland. we capture that. cory: martin, thank you.

interesting stuff. "bloomberg west," will be right back. ♪

cory: i'm cory johnson, this is "bloomberg west." a lawsuit against mark zuckerberg could reveal information about his personal finances. new court documents shed light between a dispute between zuckerberg and a neighbor. the facebook founder supposedly made promises that he hasn't lived up to. the suit says. the university of california system law professor has been watching the case joining me via skype. guest: if with a neighbor alleges is true, thanks to strong case. what he's alleging is that this house was worth $1.3 million or

more, and that mr. zuckerberg wanted to buy the house. what he ended up promising was $1.7 million as a cash payments or some sort of payment along with promises to introduce him to valuable social network and that would be worth significant amounts of money. if that promise was made, and if that thomas was exchanged as part of this deal for purchasing the house, i think it definitely is a pretty strong case. cory: talk to me about the law behind this. there's no written agreement from what i can understand, there's no formal contract of any kind. guest: we usually think of contracts is written documents. there was a written document here, there was a document recently stating -- my laptop would offer a second.

we had a written contract for the sale of the estate. nowhere in the written document was there any mention of these promises from mr. zuckerberg. you might think that was enough to turn the tide in the favor of mr. zuckerberg. but in fact, anyone who's taken even a few days of contracts law knows that oral promises can be just as good as written promises. it's really just a matter of proving that they exist. california takes a liberal approach, as you might suspect, with allowing oral promises to come into the written document. even though that's not within what they might call the four corners of the written document, if he can provide evidence that mr. zuckerberg made this promise , and that promise was made in exchange for purchasing the home, then i think he will prevail. so far, he's come up with some pretty good evidence that suggests that at least zuckerberg made that promise. cory: it's interesting that he sued, this is his first lawsuit. does that matter?

if either particularly litigious person? guest: from a purely legal matter no. but juries take lots of things into account. at the end of the day, the juries might well look at the vicious tactics or the hard knocks tactics that are being used as well as his previous litigiousness, and they might hold this against him. on the other hand, you might have juries looking at mr. zuckerberg and holding on to their opinions. at the end of the day, you put 12 people on a panel and give them lost of time to discuss the matter, and who knows what they come out with? cory: how could damages of potential business deals possibly be measured? guest: great question. it's going to be one of zuckerberg's arguments, the this particular promises so indefinite that the court can possibly enforce it. i think attorneys have found a way around that. i think it is difficult to measure these types of damages.

what they are asking for is not the value of the promises, what they're asking for is to rescind or undo this deal. you will get back to $1.7 million plus interest and he will receive the house back. unwinding the deal is kurt -- perfectly within the court's authority, it would get around the problem of measuring damages. what is the value of promises of introductions? cory: it's as like you think that zuckerberg is going to lose. guest: based purely on what we've seen in the media and court filing i'd say it's a following proposition. if everything he alleges is true, he will probably prevail. we don't know what will happen with the jury. the law is probably on his side area we've had pieces of evidence come out that seem to point to supporting his version of the facts. the new york times just reported today that attorneys filed an affidavit on behalf of the real estate broker saying that he

didn't -- he did indeed have an offer of $4.3 million on the home. given that he sold the home for $1.7 million, very steep discount, is that offer actually was in existence, and we have some evidence that it was, that is one pretty strong data point that he was exchanging this for something else of value. this promise potentially. a second piece of evidence that's pretty damming against this or zuckerberg is an e-mail from one of his advisers in which they state that zuckerberg did make a promise to make some light introductions on behalf of this person. that e-mail seems to indicate that his version of the facts may be true. taken together, i think this tends to support his allegations. cory: david, thank you. we appreciate it. time now for a check of your bloomberg top headlines. the u.s. is eyeing oil rates.

the closing of rigs does not have a big impact. u.s. oil inventory and production is still at a three decade high. that's sending oil prices down for the fourth straight week. the cia director john brennan says the edward snowden leaks have not stopped foreign partners from collaborating with the cia. he made the comment to the council on foreign relations. he calls cyber threats and urgent national security priority. accuweather is launching its own tv network, relying heavily on digital. >> we're the world leader in the presenting of weather information on digital media. we have 1.5 billion people throughout the world that watch us in that way and can see is in that way. we took the digital ability and moved it into television to give people different experience.

cory: burress files is already dumped the weather channel for this new network. mark crumpton joins us with a preview of "bottom line." mark: look at the state of small businesses in the u.s., how are entrepreneurs navigating the regulatory and political landscape? how are trade policies affecting business and our small businesses reaching global market? we have ahead of the small business administration joining the next hour. back to you in san francisco. cory: mark crumpton, thank you. "bloomberg west," will be right back. ♪

cory: i'm cory johnson, this is "bloomberg west." the bwest byte but we focus on one number. what's the bwest byte today? guest: 0.5% in the negative direction. cory: -0.5%. guest: that's my forecast for worldwide pc shipments in 2015. cory: that's a lot better than ibc. guest: different people count things differently. some to win one's colic a surface pro warmer in taking pc -- like a two in one, the surface pro are lumped in with pc. tablet numbers are growing for ibc, minor declining. i think this reflects what we are seeing with a little bit of

some of the intel numbers that i know we want to talk about in terms of what they preannounced. i really think that we need to think about this perspective across pcs and tablets. the world is becoming very messy between those. cory: you have your small phones and big phones, your small tablets and big tablets. the tablets that are more like pcs like the surface or some of the intel driven pcs. then you have laptops and desktops. i wonder what we see in terms of reach, people are going to be using all of those devices. let me start with the tablet business. what is happening with tablets? apple has seen four quarters in a row declining. the quarter they just reported saw the biggest decline. it's getting worse. guest: exactly. i believe 2014 was the peak of

the tablet market. in the u.s., they peaked in 2013. part of the reason is smartphones. we look at the tablet market 60% of the market used to be the small tablets. the ipad mini the seven inch, eight inch android tablets. that market is getting creamed by large smart phones. cory: so the iphone six plus is hurting the android tablet market more than anything else. guest: right. if you have and always connected device of the smartphone, that's a much more compelling thing than trying to carry around a tablet that probably doesn't even have a 4g connection anyways. that impacts the tablet market. that's why we see a lot of challenges and tablets. by 2019, my prediction is we will see the large tablet category takeover as the majority versus the small tablets. which is how things started in the tablet business. that, in turn, also plays into the pc business.

we look across the pc business, we see movement more towards slowly but surely, moving up to 60% notebooks shared versus deked -- desktops. at the other thing we are seeing is growth in the percentage of the commercial share. cory: last night ibc says from -3.3% to -4.9%. that's 48%, almost 50% worse. that's a big change in a short time it. do you see that as a decline? guest: i don't in the short term. we do season challenges. the q4, we have the windows 10 intro. i think the windows 10 intro is going to make a difference. i think we will see some short-term challenges, and q4 will be more dependent on consumer versus commercial. consumer has been getting smaller as a portion of the pc

market, but it's still there, a good 45 percent of the market. cory: everyone who's ever written the headline of the death of the pc has written it on a pc. guest: that's honestly not the case. another thing, we want to take upon us here and say we do see a slowdown that intel talked about on the commercial side. windows 10 does not actually have a real benefit for commercial until 2016. companies are not going to junk, they're going to go from windows 7,'s give windows eight into windows 10 in the 2016 range. near-term, we have some level refresh, and then we have the consumer piece that i think is going to get advantage from windows 10, it looks pretty solid. cory: the mac numbers, in context of this they saw 14% increase year-over-year, and

that's before these machines that go on sale in april. really spectacular. are we thinking strong market share gains for the mac? guest: we will. it's tough. i have forecast market share gains going from in the range of the worldwide basis, 6%, 7% worldwide. i think they can get close to doubling that over the next 45 years. -- four to five years. more the u.s. and worldwide, that's where a lot of their strength is. they continue to grow. apple is showing there is innovation on the pc side. it's a great statement for pcs in the long run. cory: rob woodall, thank you very much. if the latest headlines on your phone, tablet, and pc on bloomberg.com and bloomberg radio.

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rex from bloomberg and theworld headquarters, this is mark crumpton. to our viewers in the u.s. and from those joining us around the world welcome. we have full coverage of the stocks and headlines. peterc cook has new details over the letter from republican senators