>> stocks are selling off and investors wonder if september could be worse than august. take a look at the innovative company. emily chang: this is bloomberg west. will volatility cause a liquidity crisis? --udge ordered that uber giving netflix a

run for their money. all of that is ahead. first, to the lede. investors are finding more reasons to be worried. matt miller, break it down today. the dow and nasdaq ended down. >> this is the leverage china has over global equities. they release bad economic numbers or do value currency and you have massive turmoil. the dow jones industrial average was down 500 points. the first day of september, after the worst august in 17 years for the dow. the s&p 500 had the worst month overall in august. we kickoff september with a drop of 3.8%. it was a very bad day for energy stocks and financials.

onre were only three gainers the s&p 500. oil got crushed hard. athird gainer is only 139.44. it is going to get bought for cash and be a done deal. the s&p 500 was a huge loser. tech, asrs in well. emily chang: netflix had a bad day. apple down. m with a ceo. you say that corrections are the best time to invest in disruptive technology. >> absolutely, when pressure is on and the market and economy is unsettled, they think about

cutting costs and increasing and it plays into the hands of disruptive innovation. emily chang: would you espouse a rosy view? >> netflix has issues. is problem is, if apple making deal with tv and movie companies to make content, it is not necessarily going to be .etter then house of cards they have a catastrophe over at amazon. a lot of people are getting into this game and walking in front of my camera. emily chang: i do not want to listen to you either. do you think the hard landing has already happened? why are you optimistic? >> it is no secret that the cycle is over and they have cut

in half because of china. this is not a surprise. you look at electricity and the hard landing took place and they have more room than any other country. the rates have been cut five times and they will continue to cut. >> look -- emily chang: go ahead. >> the currency may be overvalued 30%. the interest rates are too high. real.ave corruption for alonethose three things would be difficult and doing them at once is incredibly difficult. the turmoil that will put the market through is going to be really hard to deal with and it is not something you bounced back from. emily chang: i will let you

chased down the person who ran in front of the camera for top we will -- the camera. kathy, we will come back to you. we will talk about markets and volatility. a company monitors the private market and this area has been hard to track. are we seeing a shift in investor sentiment? up?ash starting to dry it has been interesting to watch the growth of the company and see what you are putting out. is a liquidity crunch coming? finding over $1 billion and getting put into the market. what has happened last week and this week, we do not see it playing out. there is low economic activity and you see a lot of people are in "wait and see" mode.

emily chang: how much cash crunch of we talking about? ell effect.see a barb companies get a little bit smaller. we could be talking about hundreds of millions of dollars not getting invested. emily chang: we are hearing a lot of investors talking about profits. we talked to a ceo who said we are in bubbles. these will get hit one it plays out. on the other hand, i spoke to mark and he is optimistic. he is not completely rosy eyed. but, he is less dire about what is coming. >> these are startups and they could work out well or not. they will continue to raise

money and environments. to me, that does not translate. , there is not a sense of urgency and there is no need for everybody to panic. what do you think? >> a lot of things kill startups. the wrong market, the wrong higher, the wrong team, not hitting a milestone. panicking, it is all the time and it is always hard. this is another factor we cannot control that we must consider. emily chang: you helped me out that shows private versus public capital. explain what we are seeing here. bullish onle who are the market are also bullish on putting it in startups. this is a good place to chase.

>> how many are there? over 100 >> it is not entirely fair. >> how many will survive? a third. emily chang: what determines whether or not they make it? >> the market does not see profits. they see growth. get will continue to revenue. emily chang: i want to turn to uber, who are facing a class action lawsuit. this is another twist in the tussle between them. surprisedhey are not

by this. maind, one of the three plaintiffs will not qualify. they will appeal the decision driver,e is no typical 18 question at issue. how big of an issue is this? proms toare other overcome than legal issues. it is not great for them when the markets are russian and whether they should go public or not. overall, they are growing so thinghat it seems like a they want to ensure. emily chang: when it comes to uber, how does the shakeout play out? big thing is, if you need capital, is there another investor who will give you a bigger check? stopse point, that

happening and companies need to go public. that is the investor who goes the full market price. at some point, you reach a ceiling and some people wonder if uber is there. thank you for joining us. we will follow the stuff you are putting out. thank you, kathy, for stopping by. hollywood plans. and iphonel you why maker wants to make tv shows next.

apple has plans for original programming. for are in talks with apple exclusive shows. they are expected to unveil a new top box at an event next week. how much will this be for existing -- how much of a threat with this the for existing services? what is really going on here? >> everybody gets into the game of doing original content. emily chang: why apple? >> a big question. there are more risks than reward. what kind of content will they do? will it be family friendly or racy? more associated with the

brand. that is a big question. content for,ginal when they offer a package of content, they deliver the same thing everybody else does and a few unique things. to.ink they are going box innd is a television preparation for a television service. everybody has been talking about carte videoa service where you are not stuck with a cable bundle and they look for apple to provide the unique and friendly way of doing that. that has held apple for a long time. it is clear they are going to do it. the question is, how du make it different? -- do you make it different? emily chang: doesn't get more

complicated? bedoes it mean they will better? all of the companies are having a hard time. they will higher producers and hollywood people. emily chang: or, by a studio. -- buy a studio. and it isaste-driven hard to continue to make money. emily chang: we are seeing netflix settling down and ending the contract. amazon, as well, how does this disrupt a broader industry? business models. whoever delivers the best and easiest business model that allows people to get access to the content they want on the devices they want -- fundamentally, it is about a

,usiness model where apple potentially, has an upper hand, if they can figure out a business model that allows them to get access to this on devices. netflix is working on this. emily chang: you are sticking with us. >> indeed. emily chang: we are focusing on emerging leaders in virtual reality. thatrn to a unicorn harnesses a power. pp that uses a camera and looks at things, making them come to life. i am the creator. limitless and creative.

that is it isy ads. aboutare all u storytelling. it is three-dimensional. that is the reason the engagement level is so high. dog, it will tell you the species of the dog. trivia tell you all the about the dog and where you could get the nearest dog food. nearest dollar walking agency. agency.alking it goes on.

this behavior is not such. and is about discovery finding things. a behavior with a blue shirt. [indiscernible] big. a really it would be a shame to miss out on the journey. they have an estimated valuation of $1.5 billion. tomorrow, will show you how virtual reality transforms the work out. up next, youtube plans to do twitch.one

i will speak to the head of games next.

emily chang: it is time for the number that tells a whole lot. this is how many apple iphone accounts have been breached. jailbrokenarget unauthorizedkes store purchases. it is the largest theft caused by malware. back to youtube's latest venture. they focus exclusively on gaming content. it could be big money. the biggest competitor is twitc h, who do not have a foothold in

mobile gaming. thel here is ryan wyatt, head of gaming content on youtube. why did youtube decide to do this and what has been the response? >> we have grown bigger and we have seen amazing communities come up. it is more than anywhere else in the world. we realized we needed to create an experience. that inspired us to create youtube gaming. not everybody understands watching others play video games, including jimmy kimmel. actually, we don't have it. i'm sure you have heard it. "why would anyone want to do this?" why would they? how big is the market? >> yeah.

look at basketball. you can play its. people -- it. people watch. we are seeing people and teens enjoying this. they difficult for people to understand. again, it is a community" or of people who consume this for entertainment purposes. jimmy was funny. >> what makes youtube gaming different from twitch? >> a great question. if you look at the echo system, we wanted to be the first one stop shop. s ofanted to take a corpu content that we had and bring it together.

it makes us unique. >> are you doing additional things like original gaming it shows or original content that makes it somewhat different? say we didu know, "videogame high school." we are looking into e-sports. there is premium content being playinged with people in million-dollar tournaments and selling out arenas around the world. there is the opportunity to do different kinds of content in the space. emily chang: we have it. let's take a listen. jimmy kimmel: gaming. i don't get it. playing another person video games is like going to a restaurant and having someone eat your food o. emily chang: that is how he

feels about it. it was not popular. apparently, someone is on your side. andch is on playstation xbox one. is the real target desktop and pc gaming? >> we want to focus on all content. we have the content on the plot forms and it is really about making a platform -- on the platforms and it is about making a platform. you can watch people playing building at is about product and the ech osystem to help creators get content out. those are the focuses. go ahead? emily chang: i am asking about mobile gaming, which seems to be a particular opportunity for

you. >> sure. yeah. mobile gaming is huge. there is a lot on youtube and market is games incredibly fast and people are didn't advance of it. advantageare taking of it. we want to move it on plat norms and we are focused on mobile from a game perspective and making devices and software so that people can consume the content. that was the idea between -- behind the gaming, making it accessible. emily chang: thank you so much for joining us from los angeles. we will watch other people play video games just for you. thank you. thank you, bob, for joining us throughout the show. great to have you.

that does it for bloomberg west from san francisco. we will see you tomorrow. ♪

>> from our studios in new york city, this is "charlie rose." >> i've grown up in this museum, my father was director of this museum for 26 years. not modern, but this museum is a amily. the culture kept us all together. all russians want to recreate the great russia. we