scarlet:cory: welcome to "bloomberg west." here's a look at your headlines. arkansas governor mike how biggie -- huckabee made his presence or announcement it is hometown of hope. he spent part of his address talking about foreign policy. >> weatherby no doubt that -- let there be no doubt that israel will know as well the whole world that we are there trusted friend and the ayatollah will know that hell will freeze

over before they get a nuclear weapon. cory: huckabee who ran for president in 2008 and ran for victory in the iowa caucuses is the sixth republican to declare for the race. the service industries in the united states growing at a faster pace in april according to the supply non-management index. it is the highest level since november. consumer spending gaming exit part to springtime weather and low gas prices. greece is blaming creditors for the stalemate in bailout talks. greek officials and the imf and european officials are confronting the country with too many red lines and need to better correlate their message. there is fear is that the country is not moving fast enough to move on to more aid. bill mcdermott says his company has zero interest in buying sales. in orlando, he says "we've never bought something that was

impaired or on the decline." there was a report of sales deal with salesforce. they are now working with advisers. a memorial service for the ceo of surveymonkey dave goldberg. he is the husband of facebook coo sheryl sandberg. he fell off a treadmill in mexico. it was ruled an accident by mexican authorities. disney released its second quarter earnings. his wife is a member of the disney board. a lot of disney executives will be attending today service. turning to disney's numbers. the company is firing on all sold them theirs. that's cylinders. frozen -- there's lots of frozen in these numbers. the gains are up 10%. revenues are up 7%. $12.5 billion.

movies are poised to play a bigger role in disney's business in the next year. "avengers: age of ultoron" have the second-biggest the mystic weekend oh -- domestic weekend of all time. also star wars episode seven. here is ceo bob iger. >> the excitement around this movie is unlike anything we have ever seen before. the new trailer have more than 88 million views in the first one in four hours and has more than 200 billion views today. cory: a fascinating business. someone who has taken a look at this is our bloomberg news reported. we also have chris who covers it for bloomberg news. chris, let me start with you. with the numbers pretty much across the board pretty impressive, might as well start with "frozen." what do you got ge? >> people used to joke that the

company should change their name to yes pm because the cable networks were so powerful. but they were down this quarter and what lifted it was a lot of other things. "frozen" which came out in 2013 is still having an impact on the business. merchandising sales were up 10% in the quarter. although they had a dvd release and laster, the sum studio business was down, but you are seeing at spill over into other parts of different companies. . whatcory: what is your big take away gek? >> i'm not surprised. the analysts were all saying by and hold. even right before this came out a couple of people from citigroup and others all raised their earnings expectations and raise their share price up to $125 and $127 over the next 12 months or so. everyone is saying this is going to pop and it didn't. cory: that if the stock.

i don't care about stock. i'm adjusted in the disney business. when they report abuse result across the board, theme parks for example, were doing really well. >> they rose in the quarter european i think the number was five under 66 million. that is half $1 billion worth of revenue coming from these resorts. disney did not break the 100 -- did break the $100 ticket barrier for its part in orlando. a lot more people are buying things while they are in the park as well. cory: the only disconcerting note -- you mentioned espn. they call it programming costs. i call it college football. was it the sec? what hit them in this quarter that was a bigger expense that espn would like? >> they specifically cited college football and the nfl wild-card games and the launch of the new sec network, which you would notice is the southeastern conference and not

the security exchange commission. cory: they both play tough knows games. to your point, espn was such a central business for disney and continues to be certainly. but we see what is happening the sports in america and we see the rising costs of programming. one wonders if espn is going to keep the lead and continue to fight off comcast. is that going to come at a great expense, is there a possibility that espn is permanently different? >> they posted revenue numbers. they were up 18% at espn. all the numbers in tv which people think of now are really strong. it is obviously a concern for bob iger. he talked about these new skinny cable bundles on the call. it is more of a programming cost issue than it is a revenue question. cory: exactly. thank you very much.

we appreciate your coverage of the company. lots of big news and technology with another great big company -- cisco. changing of the guard for the first time. in 20 years and one quarter, john chambers started this job and ceo of january -- started this job of ceo in january 19 85. earlier today, stephanie ruhle and i talked about john chambers. here is that conversation. >> chuck is world class at taking a vision and strategy and executing off of it. he has done that in the commercial marketplace. he has done that in enterprise and done it in channels. he also is very good about aligning resources in a collaborative style but still allows them to move quickly. he builds great teams and guess the result. he is a perfect cultural match. he is a technical. a math major by background. stephanie: explain to me what he needs to do to really help with cisco's long-term growth.

you have been in that seat for 20 years. >> well, we are very pleased with our long-term growth. chuck articulated very well yesterday. he is very comfortable with the vision and strategy. we are winning in the market and our customers get that. the where with our top channel partners last week. this is 85% of our business. they buy the vision and strategy. he is probably going to make some tweaks to that. where he things we can improve on and i absolutely agree with him is that he is an execution the scene. -- machine. he wants to get these pieces working together and realign resources in terms of opportunity to where the growth is it areas like security and software. stephanie: what is the biggest piece of unfinished business that you are handing off to him that he will attack and execute from the get-go? >> what's going to be exciting is that we have a chance to replay the information age where cisco's leadership in the internet during the 1990's

howard our growth change our country, changed every business. you're going to see an instant replay with every country, every city, every business becoming digital. either change, disrupt, or you die. you get left behind. chuck believe that and i think he will do a great job on it. i was there during the information age. he believed during the digital age. cory: i watched you skillfully negotiate between the falcons and democrats and cisco has sold well to the government. when you look at your fixture -- future, many people in the silicon valley look at politics and want to have an impact. is that something that interests you? >> it does interest me but you have a problem. i'm a moderate republican who likes democrats. i like to work with both sides. technology needs to be agnostic. the interesting thing about government is that our country is becoming a digital country. we are behind germany, france u.k. china, india on this. it will power the next generation of job creation

economic well-being, middle-class loved it increase etc. i will also like to teach and you will see me teach and a number of different areas. i will probably work with young company startups etc. and help them perhaps go public. that along with tremendous attention to my family -- well deserved attention after doing this for 20 years is in my future. cory: stephanie ruhle and i would john chambers, the outgoing ceo of cisco. what a job he did. coming up, target india. looking at xiaomi's plans for gold -- global domination. we will look at his plans next. ♪

cory: this is the "bloomberg west." we will check with bloomberg's top headlines. reporting a profit of $5.3 billion in the first quarter of this year. the cost of bad loans and litigation decline. the ceo stuart gulliver criticized british policymakers for driving out banks with

higher taxes and tough rules. it's sbc move its headquarters out of the u.k. and the results of friday's election may play a role in that decision. sprints apprise people by posting again of subscribers in the fiscal fourth quarter. it is the second month of customer gains. rising tablet subscribers held off the decline and phone subscribers. the company posted a loss of $224 million. xiaomi is on a mission to dominate the world. who isn't? xiaomi has launched a flagship smartphone in india last month. the company announced it will sell the mi4 and it will sell for $200 and only $200. it is the leading smartphone maker in china based on the number of phones sold. it is also expanding in russia, brazil, and india. we speak with the vice president of operations on the company's

plans and the launch of the new phone. >> here is right here our latest flagship device. it is also the first smart phone that was smith's -- specifically designed for global markets. >> talk about that a little bit. predominantly your market is china and it is 90% of your sales so far. but you are expanding and that is why you are here. that is why xiaomi hired you away from google. the thing is -- how is it exclusively designed for a global market? what is different? >> it is different in a number of ways. we designed it in a number of ways of thinking a markets like india and indonesia. we wanted to design a very large battery into a five inch device. it required some breakthroughs in engineering to get there. the result is that we actually managed to build the largest battery that you can find on a five inch device and it's as thin and light as devices that cost four times the price. >> how can you sell it?

>> we sell it primarily online through our own website. it is a website available in many countries around the world. there are a few partners as well. >> you're selling it at cost. it is about growth and getting people drawn into the xiaomi story. what is the xiaomi story? we have seen a financial growth. you sold 240,000 in the third quarter of 2011. you have now grown to 17.4 million handsets sold for the fourth quarter of 2014. that is exponential growth and then some. >> we are in internet company. we are traveling at internet -- growing at internet speeds if you will. people see a smartphone vendor as a hard phone -- hardware manufacturer. we are not. we make phones as well, but we make software as well as forms. -- phones. we are building an internet connected platform. we arty have 100 million users on that platform alone. it is a very different kind of

company and that is why we have to keep up. >> you are also taking over the home apparently. i guess this is part of the strategy of putting low-cost cost phones and people hands -- in people's hands. you are building that ecosystem right now. >> that is a good way to look at it. we are an internet company and we are building a platform for internet connected services. it is very important for us to build internet connected devices and the home is the perfect place for the fact where technology has not arrived yet. companies have not been able to build compelling enough products for the home and the way that films invaded ecosystem. we have launched a whole range of products for the home from a series of smart tvs, which are beautiful by the way all the way to an area purify her. we have security cameras. we have a bunch of different things -- awaits go. yet even designed a power strip. we saw what it power strip would

be like so you are proud of having a power strip in your home because it is well designed. these are all products that are connected together. we have also gone beyond and built a little wi-fi chip that applied to any fractures starting in china come are actually building in their designs. appliances like an oven or a fridge or dishwasher, whatever it might be are also connected together and can be controlled from your smartphone. >> and you have a lot of investors interested in this including from india. you have some new money flowing through. who is this? >> we just announced the most well-known incredible business in india. he is excited about helping out in india. he came on they recently and we are excited about that. >> what are you doing with this money? investing? >> we continue to invest in our own operations. but we are also putting a lot of this money to work in startups.

we have invested in dozens of startups today. the idea is to be a veteran investor, but it is always great when a company does well. but also to build this ecosystem. and a lot of our products, like the mi band, was built by this ecosystem of startups that we helped create. in a way, we are actually multiplying the sphere of products that we are building by getting other startups that we know to do it for us. cory: that is hugo barras xiaomi's bp of global operations. apple may be updating its design of the tv remote. a company moving away from an alyssum could mean -- minimalism could mean customers coming up next. ♪

cory: this is "bloomberg west." i am cory johnson. apple rush to interesting items. the tv business -- a redesign of their tv remote. they are unveiling it at a developers conference next month according to a report from "the new york times." also revisiting the music practice. they're are pushing music labels to take their music from streaming places like spotify. just what will the new service look like and does this remote even matter that? alexandrina from san francisco. let's look at remote thing first. -- alex joins me from san francisco. let's look at the remote thing first. is this what was alluded to in the steve jobs biography? >> it seems like we have been down this path before when we have been expecting an update

only to be disappointed in the end i a lackluster refresh or no change in all. this time, there seems to be enough anecdotal signs that we are coming into a new remote and hopefully a new interface as well for apple tv. it is really about time for apple. it has fallen grossly behind in this market. you just has to go boris on from xiaomi. they have done a great job proliferating the internet of things in the homes. they have smart tvs out. apple really does need to make some moves here. it would be really nice to see . cory: one has to wonder cross platforms. the apple remote works on the computer. if you pointed it in the wrong direction, you pointed and turn something on it off. >> i don't think so. jmp securities believe in the internet. cory: everyone at jmp? >> we do.

we are talking about almost 15 billion connected devices today. it is not too far away until we see the next 15 billion connected devices. if you think about what apple can do a bounce mark to be with and play, as you point out, the internet connectivity to the pc and the mac. all that comes in to play for apple. we don't think that they can give this up. i think in the same fashion that they came out with apple watch. obviously a device whose features haven't yet fully matured to the point where you wanted to be, but they have got to be in that market. yes, cory, we do think they are going to do some refresh is here. hopefully this summer. cory: i'm glad to see guys all get along over there and share this common thoughts. let us turn now to music. apple was, for brief while, the dominant company in music and maybe the world. maybe no longer but it is interesting that their strategies would be garnering unwelcome attention. >> we will have to see what they

are doing on that front. a little more than a year ago they got themselves into trouble in the e-books arena. hopefully, they learn some lessons from that as they go about trying to transform the music industry debt again. they have learned something from that and can do it in a more elegant way. we don't know what they're doing, but it's good to know that there are watch guards like the doj to protect consumer rights. it is also not as nice to know that there are innovators out there like apple who are tried to improve things for people and get artist paid. cory: it is what it's all about. getting someone paid so they can keep making it. we need to get paid though so we're going to commercial. we appreciate your time. coming up next, periscope. was that the actual winner of the fight on saturday? not mayweather, not manny pacquiao, but periscope. a tool for piracy -- could that be at risk for twitter? we will discuss when "bloomberg west" continues. ♪

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he has distinguished himself with nearly 40 years of military service. cory: the general is expected to be easily confirmed by the senate. and the attempted attack in tennis, no evidence linking the two suspects to the islamic state. they were killed by police after killing a security guard who was guarding cartoons of the prophet mohammed. and they say regulators will miss a self-imposed deadline to finish up tax seals. she said regulators would not sacrifice the quality of their investigation to speed up the process. they would be potential costs to apple if they had to pay taxes with a deal in ireland. and mike lynch said in a post on

a blog that the 5 billion u.k. fraud laws against his team is a desperate search for a scapegoat. there was a disagreement over accounting, not fraud. they were forced to write down billions of the value after the deal. well, google wants to see automatic flight, pilotless planes, and extended air travel. the planes are not designed around the needs for humans act control. the aviation is considering to let on ground operators take over during emergencies, like the germanwings crash in the else. and the flight with floyd mayweather and many parking no

-- and manny pacquiao. streaming the fights from bars and living rooms across the world, and some even streamed video from the fight itself. if you watched the fight he paid for the fight, and on top of that, dick costolo whose company owns periscope says the night was a victory for periscope at the end of the night, so where does this leave harris go? what risk is there to twitter? joining us is joshua from bloomberg. is the owner of the place responsible? joshua: yes, i think that is something that the rights owners are going to argue, especially when you have something that is not a startup but has eight people.

cory: do we have any sense of how big of a deal this is? joshua: they said they has 66 complaints, and they took down 30 of them, and the rest of them were gone by the time they got to them. it is a question of how many people would have watched for the fight or if people were just tuning in because they were curious. we do not have an idea of how many people watched those streams that ended up on periscope. cory: periscope has not been in the situation, but others have like you to. is there a parallel here to be drawn? joshua: yes, you may remember that youtube was sued early by viacom, and eventually, they did

not have to pay anything. they came up with a something called content id, which actually identifies copyright protected content and notifies owners and allows them to make a decision about it. with content id, they can check it against the database and contact someone. cory: if they check on monday morning, yes, we do not see anybody streaming. joshua: yes, they almost have to do it immediately. cory: and that changes the business model a little bit for twitter. joshua: yes it really is not going to be free to do this, and there is a question of how to do it. fielding incoming complaints. they may have to come up with some sort of automated solution for this, and it is not exactly clear. cory: dick costolo and i love

how he says often what is on his mind, that his comment is yippie for periscope, where they won the fight, is that going to get them in trouble? joshua: if he could have that one back, i am sure he would want to have it back. cory: i guess i wonder, the best use case about twitter and how their advertising platform works is in conjunctions with movies and television and life events saying hey, we can do crosspromotional. if you have a tv show, you want to be with twitter. i do not think he would want to bite the hand that is feeding him if that is where a lot of the revenue is coming from. joshua: yes, and with periscope, that is something they could offer with added content. if there is a five, you could have hbo working on -- if there is a fight, you could have hba

working -- hbo working on that. cory: calling hbo and then -- baking them to spend money every day. joshua, thank you. up next what do the highest-paid women in america have in common? we will tell you who made what, next. ♪

♪ cory: this is "bloomberg west." i am cory johnson. the highest-paid women in america. who they are and where they are working. and drones. but first, a check of your bloomberg top headlines. 30% more revenue than one year ago, a satellite-tv service adding 279,000 subscribers, most of them in latin america.

meanwhile, netflix is asking regulators to reject the deal, saying it would hinder online video providers. amazon is going to give subscribers a new park, being able to access content aboard jetblue flights. a seatback display screen. and mobile searches in 10 countries. google has unveiled new tools to help advertisers show their products in mobile results. and went to the highest-paid women in the united states have in the country? they work in technology. $82.6 million in compensation last year, while the yahoo! ceo melissa mayer was the top paid

woman ceo last year. as a geek who reads proxy statements for fun, this must have been a blast to work on. reporter: this was amazing. being able to work on a story of the highest-paid women, there are only eight of them. cory: she came to the company and left stop behind. is that typical in these highest-paid gigs for women? madeline: it is not typical, but they have to say come work for us. what she was giving up by leaving burberry. cory: melissa mayer, last year

but not so much this year. madeline: she is largely paid in stock, and her stock is not doing well, so it is down. cory: and another ceo of oracle, how is she doing on the pay scale? they obviously paid larry and made him one of the richest women in the -- richest men in the world? macdeli at the time the proxy came out,ne: it did not include when the proxy came out. cory: were you looking at last year or imagining what was happening this year?

madeline: the process only counts for her time as cfo. then she was promoted. maybe we will see a higher number for her this year. cory: she deserves it. that is because she has been nice to me. and about the same as the ibm market cap. how is she doing? madeline: she is not even in our top 100 this year. cory: we talked about safra. madeline: lockheed martin and she makes about $37 million. some of the other ceo's -- cory: and there is still a tremendous disparity with the

men. madeline: and she makes more than tim cook. cory: part of this is that as you probably know better than i it is not exact. you give someone a bunch of stock options. they are almost guaranteed to be in the money, but you cannot say they are guaranteed to be in the money. it is like a back of the envelope way. black scholes. madeline: we decided to use black scholes. this is based on the fiscal year-end, so we decided that was the best way to do it. that is one way. cory: it is there. all right, thank you. mark crumpton is coming up. mark is almost here with a preview somewhere in the newsroom. mark? mark: cory, thank you very much.

raising the forecast for the 19 nation euro zone. does the massive stimulus from the european central bank get the credit and could the greek of physical throw things into reverse? the chief economist from bloomberg intelligence will join me from london and i will speak to the managing director and global economist from wells fargo securities. he will join me from charlotte, north carolina. i will see you at the top of the hour. cory, back over to you. cory: yes, you will. can a drone do what a helicopter can? an important story next, on "bloomberg west." ♪

cory: "bloomberg west this is "bloomberg west." -- this is "bloomberg west."

i am cory johnson great it has been weeks since the devastating earthquake in nepal, and there is a maker of commercial drones who was mapping the devastation in kathmandu and beyond. our partner emily chang sat down with their ceo. ceo: well, as far as we knew we asked each other if we wanted to precipitate and i basically e-mailed the entire team, and i have for volunteers, and very quickly, we got everyone to volunteer and said take me, i want to go, i want to go, and obviously, we do not know what we were going to do on the ground. we knew that visibility is very important. visibility is always important in disaster areas, especially if you want to do search and rescue, and we did not want to

be too late, so we rushed out there. the second day out, we were already flying a team out there, and it was risky, because we a sickly scent some of the most highly equipped people with backgrounds in camping, backgrounds in first aid, and we just shipped them out there to see how we could be of service. emily: so what did they see when they got on the ground? ceo sanz: what they sow is relatively depressing and relatively scary. a lot of desperation. people pulling people off buildings people sleeping on the streets. a lot of stuff that you don't expect until you are there, so both teammates had to work with local police and the u.n. and other organizations to actually start doing something, which is,

today, as soon as we landed, we were approached by the u.n. unesco, and the world bank so we get start doing operations. emily: so what can your team and a skycatch drone do that a normal recovery team, a helicopter, can't do? ceo sanz: the first thing you can do is send out a drone and map it out, so when you send out the search-and-rescue people you have more visibility as to how many people are on the ground assess the damage really quickly, but honestly everyone who got there was a little too late. you really need to be there a day after the disaster to do anything meaningful said today, we are focusing on reconstruction. our maps are helping the u.n. and world bank to assess damages on hospitals, on schools so that

they can get things going and deploy resources in different directions. emily: so who were you working with to provide this data? i know you were working with the world bank. ceo ssanz: the world bank and unesco and also team rubicon mostly made out of veterans. emily: jared leto, what is his involvement? ceo sanz: he is involved in a variety of different humanitarian efforts that we are also involved in as well. emily: is he involved in the nepal effort? ceo sanz: not specifically, but he is providing us with connections and overall support. emily: and you have also teamed

up with chevron and are developing unmanned aircraft to check pipelines. tell us about that partnership. ceo sanz: we were just working with the faa to work legally in the u.s., and that is focusing on doing sections of pipe line when they can be very dangerous. this has given us an ability to work with them. emily: there are obviously legal issues. how confident are you that the faa is going to catch up with technology eventually? ceo sanz: i have a very specific opinion on this. i think they will mold into this. these markets are growing. a year ago, chevron was not talking to the faa. a year ago, one of the largest construction terms were not talking to the faa. they were all afraid. they were all afraid to even mention drones, because they did

not want to be seen as using them as the wrong purposes and that everybody is jumping in. we have some of the biggest companies in the world. cory: that was christian sanzz with skycatch and emily chang, who will be here tomorrow. and now we have the bwest byte. matt miller joins us. mett: 22,000. that is the amount of miles away the satellite is from jetblue flights. so jetblue is finally going to come out with a wi-fi. they call it fly-fi, which will allow you to listen to songs or actually use the internet. cory: and with virgin, i get gogo internet, which i can't stand, because they are

terrestrial. they go from the plane down. matt: and maybe that monopoly will be open, although jetblue is the only airline to offer this service. you're going to be able to use amazon -- what is that service? prime. i got it then forgot i had it to access this, and you can get 12 megabytes or more per second, so it is pretty fast and it will be a promising alternative to all of the other horrible internet services that most of the other horrible airlines have. cory: the was a ceo with us for many times and thank you for giving us a happening byte. matt: thank you. thanks for coming to new york and joining us. cory: we are all of the time on your phone bloomberg.com, and radio. yes, radio. we will see you tomorrow. ♪

♪ mark: from bloomberg world headquarters in new york, this is jay bryson," the intersection -- this is "bottom line," the intersection of business and economics with a main street perspective. to our viewers here in the united states and those joining us, we have full coverage of the stocks and stories making headlines on this tuesday. our commodities reporters su keenan tracks crude oil over $60 a barrel. and how the disney theme parks and "frozen"