emily: 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? the lawsuitred that against uber can proceed. apple may be giving netflix a

run for their money. all of that is ahead. first, stocks are continuing to tumble and investors are worried about china. matt miller, break it down today. the dow and nasdaq ended down. techs not having a good day. >> this is the leverage china has over global equities. all they have to do is released a bad economic number or devalue 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. and we kickoff september with a drop of 3.8%. it was a very bad day for energy stocks and financials. there were only three gainers on the s&p 500.

oil got crushed hard. american airlines was up today. other stocks up. a third gainer is only at 139.44. it is going to get bought for cash and be a done deal. the s&p 500 was a huge loser. huge losers in tech, as well. netflix was a big loser today. emily chang: netflix had a bad day. down 8%. apple down 4.5%. i want to bring in cap he would -- kathy wood. you see that this is the best time to invest in disruptive technology. what does that mean? >> absolutely, when pressure is on and the market and economy is unsettled, they think about cutting costs and increasing productivity and it plays into the hands of disruptive innovation.

emily chang: would you espouse a rosy view? matt: netflix has issues. the problem is, if apple is making deals with tv and movie companies to make content, it is not necessarily going to be better than house of cards. that it will be competition. 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. let's get back to kathy. kathy, do you think that china's hard landing has already happened? why are you optimistic? if you look at commodity price -- if you look at commodity prices, they have been 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. we think that they will get this right. >> look -- emily chang: go ahead. are in a situation where their currency could be overvalued at 30%. the interest rates are too high. out of all, they have stand corruption. doing those three things alone 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 chase down that person who ran

in front of the camera. kathy, we will come back to you. now i want to talk about the private market and volatility. this company monitors the private market and this area has been hard to track. are we seeing a shift in investor sentiment? is cash starting to dry up? furthermore, i will bring in danielle who is in the stat -- in the studio. it is interesting to watch the and seef your company what you are putting out. is a liquidity crunch coming? >> there is finding over $1 billion and getting put into the market. so, what has happened last week and this week, we do not see it playing out. there has been very low activity this week and we hear from customers, people are in "wait

and see" mode. emily chang: how much cash crunch are we talking about? >> we will see a barbell effect. big companies get a little bit smaller. we could be talking about hundreds of millions of dollars not getting invested. that would be every week. emily chang: we are hearing a lot of investors talking about profits. start prioritizing profits over growth. and others say that we are in a hit whend they will be 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. take a listen to what he told me. situation is normal. 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.

emily chang: so, 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 hire, the wrong team, not hitting a milestone. he is saying, if we are panicking, we are panicking all the time. it is always hard. this is another factor we cannot control that we must consider. emily chang: you helped me out with the data that shows private versus public capital. explain what we are seeing here. >> we definitely see that private capital has been growing quarter by quarter. so people who are bullish on the market are also bullish on putting it in startups. there are also funds being put in a lot more. this is a good place to chase. >> how many are there?

the unicorns? over 100. >> how many will survive? >> about a third. that is roughly the outcome. emily chang: what determines whether or not they make it? >> ultimately, if you look at history, they are turning toward profitability. the market wants to see growth. they want to see that you have control. they want to see who will continue to get revenue. emily chang: i want to turn to uber, who are facing a class action lawsuit. that is from drivers in california. this is another twist in the tussle between them. statement from the company, while they say they are are onlyised, they

going to satisfy a fraction of the case. indeed, one of the three main plaintiffs will not qualify. they will appeal the decision and there is no typical driver, the key question at issue. how big of an issue is this? they are a multibillion dollar company, they have other problems to overcome. fors probably not great pr them, especially when they're questioning if they should be going public or not. overall, they are growing so fast that it seems like a thing they want to ensure. -- they want to mature. emily chang: when it comes to uber, how does the shakeout play out? for companies that are well funded? >> the big thing is, if you need capital, is there another investor who will give you a bigger check? at some point, that stops happening and companies need to go public. , theis the last investor

one not willing to pay the full market price. at some point, you reach a ceiling and some people wonder if uber is there. emily chang: thank you for joining us. we will follow the stuff you are putting out. thank you, kathy, for stopping by. hollywood plans. we will tell you why and iphone -- why the iphone maker wants to make tv shows next. ♪

emily chang: apple has plans for original programming. they are in talks with apple for exclusive shows. they are expected to unveil a new top box at an event next week. how much will this be for existing online video services like netflix and google? what is really going on here? >> everybody gets into the game of doing original content. emily chang: why apple? >> that is a big question. there are more risks than reward. you think of apple, what kind of content will they do? will it be family friendly or racy? will it impact how people view it? man of different company other companies that got into this business. it is more associated with the brand. that is a big question.

i guess the concern is they need to have some sort of original content for, when they offer a package of content, they deliver the same thing everybody else does and a few unique things. when andu are saying not if. >> i think they are going to. the trend is a television box in preparation for a television service. everybody has been talking about doing an a la carte video 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 -- do you make it different? clearly they are looking at original content. emily chang: doesn't get more complicated? >> just because they are apple doesn't mean that they will be

better at doing content. all of these companies are having a hard time. hollywoodhire producers and people who have experience. emily chang: or, buy a studio. >> it is taste-driven and it is hard to continue to make money. emily chang: we are seeing netflix settling down and ending the contract. netflix will focus even more on original content. amazon, as well, how does this disrupt a broader industry? >> the issue is 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 -- ultimately wins. the content is a nice thing to have, but fundamentally it is

about a business 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. let's be honest, netflix is working on this. so is amazon and other folks. emily chang: you are sticking with us. >> indeed. emily chang: we are focusing on emerging leaders in virtual reality. we turn to a unicorn that harnesses a power. they are looking at augmented reality as a tool for search. >> it is an app that uses a camera and looks at things, making them come to life. ♪ creativityto make

limitless. what we mean by that is it is ads. they are all about storytelling. all good ads are about storytelling. this is not just one dimensional, it is three-dimensional. that is the reason the engagement level is so high. if it is a dog, it will tell you the species of the dog. where is the nearest vet, what is the nutrition it needs. it will tell you all the trivia about the dog and where you could get the nearest dog food. the nearest dog-walking agency. it goes on. this behavior is not such, so

simplistic. this is about discovery and finding things. there is a behavior with a blue shirt. you can usually type and get 10 results and you choose. i have seen that opportunity is really big. i do not want to lose out on this opportunity or the journey. emily chang: 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 dethrone twitch. i will speak to the head of games next. ♪

emily chang: it is time for the number that tells a whole lot. 225,000, that is how many apple iphone accounts have been breached. the hack only targets jailbroken phones and makes unauthorized 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 twitch, who do not have a foothold in mobile gaming.

still here is ryan wyatt, the head of gaming content on youtube. ryan, thank you so much for joining us. first of all, 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. more people are watching gaming on it youtube than anywhere else in the world. we realized we needed to create an experience. that inspired us to create youtube gaming. emily chang: not everybody understands watching others play video games, including jimmy kimmel. take a listen. actually, we don't have it. i'm sure you have heard it. he was like, "why would anyone want to do this?" why would they? how big is the market? >> yeah. you know, i look at basketball.

you can play it will that people enjoy watching it. we are seeing people and teens enjoying this. it is new. sometimes it can be difficult for people to understand, but growing is a massive community and culture of people consuming it for entertainment purposes. jimmy was funny. >> what makes youtube gaming different from twitch? >> a great question. if you look at the ecosystem, we wanted to be the first one stop shop. not only live content, but we wanted to take this great corpus of content that we had and bring it together. it makes us unique. >> are you doing additional

things like original gaming it -- gaming shows or original content that makes it somewhat different? >> yeah, you know, say we did "videogame high school." we are looking into e-sports. this is also a segment on the rise. there is premium content being positioned with people playing 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. to me, watching another person play video games is like going to a restaurant and having someone eat your food. emily chang: that is how he feels about it. by the way, it was not a popular

clip. so somebody is on your side, ryan. twitch is on playstation and xbox one. how do you displace them on those platforms or is your real target desktop and pc gaming? >> we want to focus on all content. other platforms. it is about, how can you make a platform that increases discoverability. you can watch people playing games and it is about building a product and the ecosystem 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 the mobile games market is growing incredibly fast and people are taking advantage of it. we want to move it on plat norms and we it to platforms 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 family. when we live in difficult situations, the culture is the bridge that keeps us altogether. all russians want to recreate the great russia. we told the story of imperial russia, which everybody wants to