endsy: apple s invitations to his next big thet, while is former ceo competition. i am emily chang. this is "bloomberg west." ising up, president obama about to speak in new orleans on the 10th anniversary of katrina. we will hear how local leaders regulations. plus, amazon may be re-thinking its mobile phone strategy and tesla -- they were better than

big. first to our lead. apple of course. new products coming on september 9. out invitations to a san francisco event where it is expected to unveil a new iphone and tv box. what else should we expect? former ceo john scully joins us now. we also have our tech reporter visiting us from hong kong. i want to start with the invitation. it says something curious. "hey, siri, give me a hint." so, we tried that. hint.iri, give me a you have to wait until september 9. i bet you were one of those kids who went down ores to --

downstairs to open your present early, weren't you? emily: of course i was. >> this could have a new camera, a beefed-up processor, as well as theforce touch. emily:a and the new set-top box. : the newnew -- adam set-top box. been as much of a focus for the company, but now it's a competitive market -- amazon, google, roku and that's aces well. emily: what are you looking forward to? john: i would expect obviously new iphones, but on the tv box, i think the "hey, siri, give us moret" is a hint to a interactive way to interact with

television. being able to speak to television as well is using the remote control could be a way to integrate siri into the television. john scully, you are unveiling a new phone, the obi world phone, which looks like an iphone. and you are releasing this in october, which is prime iphone time. what is your intention? do you think you can take the iphone and cheaper competitors on? we have no interest in taking on apple. it dominates he premium and of the market. what we are doing, we are creating the only other design lens consumer electronics company in the smartphone industry from the knight's face. .e are here in silicon valley

i speaking from san francisco. we brought together several of the old apple team i worked with, and we are creating a design group. platform.he android you can do a lot with the user interface. we are doing a lot with the user experience. basically we are giving people for $700 would expect and giving them to it a $190 price point and we have one that $129.n lower, it is for markets that are upgrading from low bandwidth to 4g lte. china is a huge market for apple. it's also a huge market for xiaomi and the samsung. apple be worried about the state of iphone sales in china and the incoming competitors?

>> they have always based a lot of competition in china. like i said, they have always xiaomi,position from lenovo, but the just issue now is the overall slowing economy in china. competitors are asking themselves, should they extend , really subsidiaries trying to export that market, or are they going overseas, and that is exactly what lenovo and xiaomi have done. they have chosen india as the next market, because they realize maybe the more saturated markets are not enough to boost their profits for growth. i saw a interesting numbers on the apple watch, more impressive than a lot of people expected. in thelion apple watches last quarter. break it down and what it means.

crawford: what we saw is this 120%, so thisded is the classic situation where category buster. they are coming in and redefining the category. in we believe the wearable category has the opportunity to changer thaname the tablet was. we expect this is the beginning of that trend. there will be fits and starts, but we also believe that 120,000 developed for wearable devices. it's a very different world if you are a wearable competitor year ago. it was one your market is twice as large, but you have a whole new competitor, and a competitor his side.evelopers on that is huge. for companies like garman, that is a real warning sign. -- for companies like garmin,

that is a real warning sign. you can see them settle into iwatch, as well as a re-thought android device we will see in the next few months. john, looking at the big picture, maybe the apple watches doing better than expected. there are concerns about sales slowing. what are concerns when you look at the big picture for apple and what of the challenges that lie ahead? very i think apple is in good shape and china. 1.2market is growing at percent year-over-year. very slow, but apple is growing very fast. they made a public statement a few days ago, which means there are a lot of people that are not growing at all. they are willing to wait. so, in the past and china, people would refresh, by new phone every six months, nine months, year.

that's having an impact on the market. less phones are being sold. that's a problem for other companies like samsung in china, and it's why you see people like xiaomi moving into other markets. going intoeven china. we are focused on the middle west asiafrica and and southeast asia and we will be in about 70 countries over the next few years, but we're not even looking at the u.s. or china at this point. ok, our bloomberg news reporters are sticking with me, and adam, we will be watching your reports for more tidbits. speaking of apple, ceo tim cook's goal for apple pay is to reach one .5 million u.s. -- 1.5 million u.s. locations by the end of the year.

they teamed with pay anywhere to reach that goal. >> we are the only company in the united states that allows .uyers to pay with apple pay so as a business owner, if you want to accept apple pay on your iphone or ipad, your only choice is payanywhere. reader will be available exclusively in apple stores next week. the amazon fire phone never caught on with consumers. now the e-commerce giant is dismissing dozens of engineers who worked on the device according to "the wall street journal." the exact number of cuts is unknown. amazon is not commenting on this are work. coming up, it is the 10-year anniversary of hurricane katrina. i will be joined by the leader of a group of airbnb hosts hoping to develop sharing economy regulations for the

city. ♪

emily: and just about 20 minutes, president obama will speak in new orleans, commemorating the 10-year anniversary of hurricane katrina. bloomberg television will carry that speech live. since the hurricane, a growing number of residents have been using airbnb as a way to earn money while the rebuild their city. and hosts in the city are working to craft sharing economy regulations. 120 volunteers working for regulations -- polly joins me

from new orleans third as i understand it, short-term airbnb rentals in new orleans are still illegal. yet a lot of people are doing it anyway. what is the's eight of airbnb in -- what is the state of airbnb in new orleans right now? i did not exactly here you. would you mind repeating the question? emily: i understand short-term airbnb rentals are illegal in new orleans. a lot of residents are doing it anyway. what is the state of airbnb right now? coming.egalization is i am proud to say we are working with the city council to get legalization in place by the end of the year. emily: how many people are using it? , demand is therefore airbnb -- how much demand is there for airbnb? polly: i hear all kinds of numbers.

just doing someone it for mardi gras, jazz fest, or someone doing it all year round. describe the impact hurricane katrina had on the rise of the sharing economy and the need for regulations to govern these kinds of services? ly: i think it is safe to say cents hurricane katrina, all eyes have been on new orleans. you can't pick of the population what a greatng destination it is for tourists. and the sharing economy has made it possible for new orleans resident super dissipated in the recovery since hurricane katrina. emily: have you gotten any help from airbnb specifically? have not. we would love that, but no, we have not. emily: what is left? what steps need to be taken? we need to agree on an

ordinance. it's a discussion happening worldwide, paris, san francisco where you are, emily. it's a big conversation and we have to figure out what will work for new orleans as far as how to approach it and make it regulated and legal. emily: all right, interesting. polly hardie, thanks so much for joining us today. the homeof airbnb, sharing startup has joined a growing list of tech companies expanding into china. a week ago, airbnb announced a partnership with two chinese venture capital firms to hire a china ceo, and uber's china arm has closed its fund-raising round early. what challenges will they face, expanding into these local chinese markets? still with us, who lives in china, and can give us

the exact picture of what these services look like. let's start with airbnb. what you think about the strategy? the first thing they say is right now they want to look for a ceo in china to manage the business. companies that have managed to do this successfully like linkedin, they were looking for people with a range of experience operating on the ground in china, but also having the communication abilities to communicate with managers in the u.s. so they have enough support and backing of the headquarters, and also an understanding of how the regulatory environment works. when youly important are trying to compete with local competitors on the ground to navigate the economy. emily: how would you compare the way that airbnb is doing it versus the way over is doing it -- uber is doing it? lulu: [indiscernible]

emily: the uber of china was 90% of this market. taxi exactly, 90% of licenses. eight cars sharing service in china already attracting 3 million people within the first few months. emily: what is it like to use uber in china, and across the different cities? it is quite localized, isn't it? lulu: it is quite localized. if you try to use the equivalent people x, you get picking you up. these could be government officials driving to work. they want to save some gas oil and that is why they are using the service. headhunters use it to find recruitment for silicon valley in china and some people are using it as a dating app. -- the local adaptation of

these apps is amazing if you look at it. so, we chat is huge in china. what is the chance of uber china's success? public account service -- that is the equivalent of an fansnt company sell up, so can follow their information, news releases. in terms of messaging, they can still do that. but it does have a very popular -- very popular in china. traffic is through the roof. isng blocked on tencent something of a setback. what they are trying to do to compensate is having this quiet operation with baidu. a question of capital and talent in china. emily: what about the market? ubern -- can uber be the

of china or the lyft of china? lulu: it depends how fast they expand. uber wants to be in at least 60 cities. expertiseve the local and navigate the regulations on the ground, they might have a chance. emily: interesting stuff. thanks so much for joining us here today. great to have you. well, washington, d.c. is looking to silicon valley for help. defense secretary ashton carter will be meeting with tech executives in the bay area. this is part of an attempt to bridge the divide between the pentagon and the tech community, leery of excessive privacy violations. be a defense department page on the lincoln site. they are looking for help to combating cyber threats.

the fbi and the nsa are matching secretary carter's outreach efforts. i will have an exclusive interview with the defense secretary tomorrow at 1:45 p.m. eastern and i will also be sitting down with mark andreessen of andreessen horowitz. talkst, aol's president for the first time since that $4.4 billion acquisition by verizon. how it stands up to google and facebook. ♪

nowy: all right, it is time for a breaking bloomberg west bike. mark zuckerberg just posting on facebook that facebook has watched one billion users to use the social network in a single

day. one in seven people on earth used facebook on monday. that is a big milestone for facebook. for the first time, one billion people using facebook and a single day. he also says, thank you for being part of our community, for everything you've done to help us reach this milestone. i'm looking forward to seeing what we can call push together. well, gone are the days of you've got mail. long gone. competing with google and facebook is a big reason verizon but aol earlier this year. joining us to talk about how they are fitting in with the new parent company, aol president bob lower. we do not have a lot of information about how this worked out. i'm. as. how does aol fit into verizon right now and how are working out so far -- working

far? bob: there's great information about how aol is fitting in verizon. verizon was one of our largest customers and they realized the value we created from creating customer segments, so they decided to combine our assets and create a wholly-owned division under the verizon entity. we operate with the same strategies, but there are horizons for a -- there are assets verizon has given us to build the company. it is only reinforced by the acquisition. incorporating you verizon's user data and how is verizon changing now that you are here? the most important asset we brought to the party was our automated media buying stack. that at verizon, we are allowed to use part of the verizon data as long as the consumer has opted into permission to use

this data. what we can do with that data, great, greata consumer experience in ways that we have never been able to do before. because we are able to use that data and understand behavior, the context and someone is then, and what they are consuming, we can give them more content rate from that context, what we can do then is go to brand advertisers to give them the randtunity to bring great experiences to that consumer like they have never had before. for example, if someone is in seattle watching the seattle seahawks game, their context will be very different than someone watching a miami dolphins game. so, you are the guy who led aol programmatic ad efforts. what will it take for tv embrace a? bob: we are living in a very different

time. the great thing about ale well is we are changing the inertia. there is an inertia model because the economics are a self fulfilling prophecy. we are not only looking at the digital space, but we are taking the technology and applying it to linear tv on the supply side. we have gone outside the u.s. because there is great supply to test the model and make it work. what we will do in the future is to use great data and great technology and apply it to linear tv so we can start advertising to people when they are watching linear tv and also on the o.t. p platforms and mobile platforms. emily: interesting. though you are taking on google and facebook, which just hit one billion daily users. we have to watch it there. aol president bob lord. thank you for watching this edition of "bloomberg west." tomorrow do not miss my

exclusive conversation with ashton carter and mark andreessen. ♪

>> welcome to bloomberg politics special edition. presentt golf is in -- obama is in new orleans this evening. john, this is an event that affected new orleans most of all, but the president will talk about it tonight as a national story. there is not a single issue that does not affect new orleans, has been exacerbated about what happened with hurricane katrina. this is a story about infrastructure. mark: let's go down and listen to president obama. president