emily: we have the top things you need to watch for at tomorrow's big event. emily: i'm emily chang in this is bloomberg west. theing a spotlight on excesses of the san francisco tech community. will speak to nancy pelosi about the widening income divide.

zuckerberg and vanity fair. all of that ahead on bloomberg west. host as gearing up to big event tomorrow and unveil a new version or versions of the iphone. last year we saw the most significant redesign of the iphone since it came out in 2007, but were not asked that thing another major redesign this time. more like a minor upgrade. what exactly will we see? director forrogram the mobile division and a senior wireless tech analyst. thank you all for joining us. everyone is so excited about tomorrow, even though it will be a minor of rate. adam, i will start with you. what do we know about the new features of the phone? adam: it will look like the ones that are out there now. part of the a pump

cycle where apple focuses more on the software. you will get a better camera and processor and some other new features, but like you said, is not as big as an upgrade as last year when there was anticipation for the bigger screens. we saw a hugear upgrade cycle, 74.5 million iphones shipped. will this be enough to have another quarter like that? >> that is not sustainable to continue forward. we are expecting less volume in the fourth quarter. having said that i don't think it will be an unsuccessful order by any means. >> i think people are grossly underestimating what the iphone success can do for apple this go around. ,ou go back to the iphone 4s this is going to be the new greatest iphone apple has ever

made and it really is going to impress. we're expecting better battery life, more processing power, better connectivity. given that we are now in the sweet spot, we think it's going to be another banner order for apple. emily: i am always excited, whether it's going to be bigger or not. adam, what about the apple tv? much about apple trying to strike deals with the content company, down planning to do original content of its own. are we going to see a new set-top box tomorrow and how different is it going to be? >> the biggest features of it will probably be the app store that it will introduce that will allow outside developers to come in and build applications for it. apple has not been at the strike these new deals with media companies and will be able to offer a variation on the cable bundle.

they have not enabled the strike those deals. so we will wait and see what kind of apps that developers will make. gaming will be part of this. we have not seen an upgrade to the set-top box for three years. it has been a long time coming. can the set-top box become a big enough product that it's not a niche product and it helps drive overall revenue? >> i was absolutely yes. just an more than iphone company. it's an ecosystem company as well. apple tv can be the central hub of a smart home. locations are coming out, like the new doorlock coming out that will irk -- work off the apple tv. it's all the devices working well together. that is apple's great advantage right now. apple can harmonize the

ecosystem the way others cannot. emily: do you think it can be as big as the iphone? >> it's not just about the tv, it's about connecting the home. i do think it can be as big as the iphone. i think it is the hub that will start to build these other things out. content is the other one that can clearly put this ahead of iphones. it's not the easiest thing to do. emily: well they are will they not unveil this mammoth ipad? >> the bigger ipad is expected to be announced tomorrow. it will further blurred the line between a tablet and a laptop. tim cook has said the ipad has a lot of opportunity with business customers. this is a device that is really geared toward that. , with more people began

to do more and more with the handset, ipad sales have begun to fall. people hold onto the devices longer. emily: is a big ipad enough to save it? the key is having an enduring business model like microsoft has. part ofevices become the fabric in the way businesses conduct of business, that is transformative for apple. >> the recent deals with cisco and ibm, it holds true that it is an important these. let's talk about the software and siri, there was a big hit about an upgrade to siri . that goes along with this conversation about apple and artificial intelligence. how much smarter are these new

phones and the new set-top box when it comes to the software driving it? more and more integration into the different products apple is doing. there are some compelling use cases if you scroll around apple tv looking for a show, it's a very clumsy experience. emily: and it's very difficult to search. >> but it's a product they had been improving, and artificial intelligence is a key part of that. was first introduced, it was mocked because it was clumsy, but it has been improving. a.i.: is there more to the idea then search? if you've ever come across the amazon echo. done right, and it

is brilliant. it is huge. maybe someday the apple car. >> it's a slow-paced because initially people look at it as something that's kind of nonexistence. i'm feeling more enthusiasm here than i expected. x it's going to be a good opportunity for the lines to form again. there have been some issues on the supply chain. they maybe don't have as many iphones as they would like. if people want to get in early, they probably should go out and get in line for this one. >> i think the price cuts will be interesting as well. emily: we will be watching for that. all of youratching headlines coming out tomorrow. a stock we are watching today, investor head of

relations spoke in new york. he said the company will have tough comments in the third quarter and the september quarter will likely come in lower than prior expectations. it did not stop summit research from cutting its price target to $81 from $91. slide has0 month stop wiped over $140 billion from its market value. announced thebaba single day shopping festival on november 11 will be focused on globalization of off-line to online themes. it is huge. to a new partnership are watching, microsoft will begin geting a service tablet to

big corporate customers to buy the microsoft tablet. the newest part of the deal is dell. it will offer warranties and customer support just like it would from one of its own products. microsoft gives access to enterprise level customers and dell gets to expanded support services. we don't know if hp will be offering anything similar. up next, the newest member of the uniform club tells us the importance of a billion plus valuation. house minority leader nancy pelosi sounds off on her colleagues across the aisle in silicon -- targeting silicon valley. ♪

emily: breaking news coming from yahoo!. we will get to our editor at large, cory johnson, but again, breaking news headlines coming out of yahoo! we will give you the update as we have it. this is having to do with the irs situation and some of their tax obligations dealing with the alibaba spin all. i will get back to that when we have corey back with us. news, $160icorn million has been raised from insight venture partners. the latest round of funding ballot at $1.2 billion.

outside europe, they operate in india and mexico. you can choose if you want to write in silence, like chat, or have a conversation. is with us, our editor at large. he has been taking a look at the headlines. what does it mean when it comes , how much yahoo! can be taxed on this alibaba spin off? corey: don who made a very smart investment a long time ago -- yahoo! made a smart investment a long time ago. distributing it to the yahoo! shareholders has been their plan.

the big thing with the irs , andg this been office ok they've been waiting for word from the irs. that was a suggestion future decisions would have a different rule applied to them. the irs has refused to take a meeting with yahoo! about this, so it's unclear what it means. never just the irs signed off on this proposed deal from yahoo!, that the taxable burden for the spinoff, the whole reason the structure was proposed is not kosher with the irs, at least not yet. are sharply! shares down right now after hours on this news. obviously investors are trying to get a sense of exactly what it means. thank you for that update and we will continue to follow this and bring you updates as we have them. now back to valuations. the latest startup to claim unicorn status active -- as of

today, they just announced new funding. the ceo joins me now with the details. this whole unicorn thing is becoming like a badge of honor. >> a horn of honor? emily: some of the concern we've heard from the skeptics is that startup scene to care more about their valuations and actually giving value to the customer. how do you separate the two? >> we are out to build important independent technology company for the long-term. when we went out to raise this round, we were worried about having a valuation that was too high because it puts pressure on you to have to grow into it. it restricts when you can actually go public. we thing going public is really putting the puck on the ice, so

we are excited to move forward, build our company and go forward. emily: so you are worried about the valuation too high. i thought that only happened in silicon valley. did you take a lower valuation than some were offering? >> we wanted to make sure all the investors heard our story, that we are about connecting any theiry and empowering adoption of modern technology and telling that story and getting that awareness in the market as we eventually go public in the future. make sure it was is fair, because were going to go public and we want the valuation -- if you look at our numbers now, it's pretty close to if we were a public company, not some pie-in-the-sky company

with public valuations. emily: we've been talking about a cyber security bubble. there are a lot of private cyber companies that are very highly valued. i was talking with one ceo about this very point. it seems to have become a crowded space. listen to what he had to say to request there is so much interest in this area that any good ideas being funded to the point where it can keep on going forever. that is going to have to change. to changeno idea how that. they should reincorporate as nonprofits if that's the way they are going to run their business. emily: is that happening? >> you have to stick to the fundamentals. so what is it that okta

offers that other companies in the same space don't? >> we make it easy for companies .o deploy high security a lot of security technologies lock things down and restrict users and make it really complicated. our first thing is access. we make it easy to adopt applications that help our customers do better. aftereffect of that but not the primary impedance that a lot of security companies run into. see that ahead? >> we raised $75 million additionally. we are going to put it in the bank and wait to see if violations do go up and we can do some m and eight. -- m&a.

emily: when is the ipo? >> we are planning for it. you cannot talk about it until it happens. emily: thanks so much for joining us. .ow to polytech where silicon valley meets the hill. i caught up with house minority leader nancy pelosi right here in her district of san francisco. tech dollars are in hot demand as fundraising for the 2016 presidential race heats up. i asked her what she makes of the gop courting ceos like mark zuckerberg. >> i would like to see them be more aggressive in congress in their policies, whether it's tax policy and tax credits or innovation, whether its investments in education.

whether its investments in infrastructure, which are essential to all job growth. politically isid one thing. i would like to see in interest in the tech and science community. emily: she was in town for the premiere of her daughters documentary. sandra explained how the film became a critical review of the companies in silicon valley. >> i went door to door to all the tech companies and try to get them to talk to me, and they wouldn't. so instead i ended up talking to people who really are not happy here in the first place. that was a lesson in access journalism. san francisco 2.0 air zone hbo later this month. still ahead, and inside look at vanity fair's annual our list of the most disruptive innovators

who are reshaping their industry. that is next. ♪

byte. time for our daily today's number 17 million. that's the number of people worldwide who booked to stay at airbnb. companythis summer the raised $1.5 billion in funding and is working to approve a ceo for its operations in china. now to vanity fair's and power list of the top 50 leading

innovators and disruptors worldwide. mark zuckerberg has climbed to the top spot from his previous rank of number five on the list. joining me as someone who helps put the list together, john kelly. thanks for joining us. it seems obvious that he would be at the top of the list, except when you think of the other people on their like tim ook and larry page. >> part of the thinking was that zuckerberg seems to go down on the notion that vr is the future. facebook came into the world before the providers of mobile but really after many of us had phones in our pocket. it seems vr is an opportunity to not just control the tech but control how we consume it also. uber is certainly

powerful but still has a lot to prove. >> the opportunities for uber are enormous. to disrupt the other unicorns that are out there? the options are quite limitless. it will be interesting to see what he ends up trying to do with that company. it is going to drive it somewhere. given his relation of what is going on at twitter, quickly, taylor swift on the powers that be. clearly iswift disruptive in her own way. she seems to be able to get the media to bend to her will. when you look at spotify, it's

been an enormous success story. emily: we will have to leave it there. great list, we will check it out. ♪

mark: i mark halperin. john: i'm john sullivan. with all due respect hillary clinton, this is how you turn the page. ♪ it wasn't bad. markets back. in our lineup tonight, dealing with the donald, sitting with stephen and having a ball with haley barbour. first, page turning alert. hillary clinton campaign has identified a week time -- weak period. exhibit