the of sparking a global selloff. it the worst open in decades. china conducted its biggest reverse offer. this after money market rates hit a high. they suspended such operations at the end of last year.

valued at more than $380 million. china -- shenzhen off by a fraction. asia singapore tokyo and mumbai. i am back in half an hour. time now for bloomberg west.

emily: i am emily chang and you are watching "bloomberg west." president obama is defending his plans to go around congress to tighten the nation's gun control restrictions. after meeting with attorney general loretta lynch and other officials, the president said his actions are within legal authority. iran is expressing regret over to attacks on saudi arabia and diplomatic missions. iran says it will prosecute those responsible. the attacks stem from protests over the execution of a prominent cleric over the chinese companies deep in the red today. stocks,her u.s. tech

going in the opposite direction from last year, netflix and amazon dropping today after posting their strongest gains in 2015. what does it mean for the sector in the new year? joining me is max wolf and our guest host for the hour, david kirkpatrick. happy for both of you. -- happy new year to both of you. what is going on with netflix and amazon? david: probably not a whole lot. so little that whatever happened in the stock market today for companies like that is probably very short, in my opinion. emily: ok, max, wall street guy, what do you see as the connection? why were tech stocks hammered today? max: happy new year and thanks for having me. i am not sure i want to wear the moniker of tech guy, but my take

is the following. three different streams collided today. when you cross the streams, as we learned from ghostbusters, not all together good things happen -- altogether good things happen. the high flyers of last year were sold off today. you give yourself alone on the tax bill. anything that causes greater loss of confidence in chinese data sends shockwaves. we have seen the chinese market get propped up through various and sundry means. i think the market was a bit overbought. the reason i think it does matter is i think the pre-ipo tech names are affected because the multiples they have right now are probably too high

against their public peers, and that discrepancy gets larger on days like this when we see contractions. high fly winners get sold aggressively, as they did today. emily: recently, some of the other technology companies were the biggest losers. what about the fundamentals of these companies? do you see strong fundamentals when it comes to smaller tech companies, and also amazon and netflix? david: generalizing about tech is a hard thing to do. for internet companies that

dropped a lot today like amazon, google, or salesforce, i don't think what happened in china has any relevance. a new company that's an enterprise software firm, if the global economy slows down, maybe, but i don't see a whole a lot of sign that was happening in china is a global contagion. it's nothing to do with china. it's to do with sentiment. max was talking about tax related reasons. i think that's sage. and a smart point he made is that this could have a negative effect on some of these wildly overvalued private companies. emily: max, let's talk about that a little bit. is this just one bad day or is this the start of what could be a not so great year? max: it's just one bad day.

a troubled year began in august. we are having a discussion in tech now that shows how much excitement there is around tech, what the future is, and how much the excitement around tech can be off. i think we need to see more fundamental performance from our pre-ipo and post-ipo tech companies. we are going to see a more skeptical lens focused on the space. it is still going to grow. it is still going to be a great space. but it is not going to be the suspension of gravity that we have seen recently. today is just sort of a dave it people are kind of vomiting up some risks they have put on may

be -- sort of a day that people are kind of vomiting up some risks they have put on over a couple of years. it's kind of hard to make the argument that if you are not buying into the china party you are particularly adversely affected by trouble in the china party. emily: it will be interesting to see what measures china takes this year to prop up the economy. thank you so much. now, another stock we are watching today is tesla. shares fell a most in two months after the car maker hit the low end of its delivery forecast for the year.

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emily: general motors is giving a major boost to lyft, becoming a key ally in their competition against uber. together, they plan to develop a fleet of self driving cars. i caught up with the presidents of gm and lyft today. >> we are really aligned about

how we see the future going. we are super excited. emily: how much faster? >> not talking about specifics in and growth rate, hours pacific growth year-over-year him and was -- specific growth year over year x in the united states. in emily: -- year over three times in the united states. emily: does this rule out working with uber? ? this is going to require our companies to work closely. emily: so, yes? >> we are going to be working really closely with lyft. emily: john, do you see self driving cars taking over the fleet or complementing human drivers?

john: this will evolve over several years, so will be introduced as a compliment, and eventually become the main way people are getting around. i am happy that we are going to be part of the transition because we are going to be doing it in the most responsible way and making sure drivers are taken care of in the years down and the road. emily: this is the first time we have seen a ride sharing company and have seen a ride sharing company partner with an automaker. i want to get to the timeline because you said you expect to see self driving cars on the road within 10 years, likely sooner, right?

>> right. emily: dan, i have talked to people on the board of google who say it's more like 20 years. dan: we think this is a journey him anddan: we think this is a we are going on to get to this autonomous network. we announced last year at general motors that we planned to release a fleet of autonomous chevrolet volts that will become a development bed for us to do in rapid development. we are handling the autonomous on-demand network we have announced as part of this alliance. it is going to be a journey over him time and something we are putting a lot of resources behind. emily: is sooner than 10 years realistic?

dan: we are working as fast as we can to make it happen. emily: how to you play out that timeframe in your mind? john: i think the experience is really interesting. let's say several years out you will open up the lift app -- lyft app and request a ride. if you are traveling with friends or family, maybe it is a movie lyft to tahoe. we are going to be able to create transportation experiences that you request. emily: i would love to see that. dan, google has partnered with an ford. him ford. him we believe apple is working on self driving cars. it were is working with carnegie mellon. what makes you think you can compete?

dan: we are a highly funded detroit company and the lyft guys are in strong fundraising shape. for the first time, a car company with all the capability we have around autonomous and the resources we have from a technical and financial point of him him view, bringing that together to a rideshare platform is a unique combination no one else has done. we think that will put us at the forefront of change, particularly in the urban environment. emily: how does this change your business model? as you look ahead, people are not buying as many cars or they are writing in self driving cars and don't necessarily need the best car or the most customized car if they are just a backseat and passenger.

how does your business model change? a dan: that is exactly what we are doing. him we see that change coming, and we see that change coming, and we want to be at the forefront. this puts us in a unique position to be at the front. the real strength in our business today, our core business, is outside the urban centers. we see the opportunity as we go him into disrupt mobility in the urban environment, we see it as an opportunity, not a threat. and him and emily: the

rentals, how big are they going to be, where are they going to be, model it out for me. john: this is something we are working on immediately. the idea is that 16% of driver applicants apply but because of the year or size of their car are unable to drive on the platform. other casual drivers would like an easy way to earn income. renting a car by the week or the month gives them that flexibility without the long term commitment of a lease. again, taking care of drivers who want to this opportunity, with access to general motors financing power and their fleet of vehicles, will allow us to roll this out in several cities in q1 this year. it will save a lot of money and in provide a lot of value for drivers. emily: do you see this becoming a bigger part of your business model? dan: yes, and when we think could scale up pretty quickly. given the financial firepower we and have is a company, we can

finance these vehicles much more efficiently than an individual driver can, bringing the total cost of ownership and operating in the vehicle down for the driver. emily: uber has a $62.5 billion valuation, which is unprecedented. how does that number strike you? dan: that is the number that's out there. people have described the valuation. we are focused on the work we are doing with lyft. we think that will create huge value for our customers. emily: the ceo of gm was just named chairman. reuniting the ceo and chairman role. what is your take on working with mary? dan: it was just announced. it's great news. i think it's a statement about where we are today and her strong leadership over the last couple of years. emily: what specifically would you point to? dan: the fact that we are here making the announcement today around this alliance, that we are looking to the future of mobility and how that is changing, and that we want to be right at the forefront of that. we want to be very much part of

the change we see. it's a really exciting time. emily: jon, as you model out 2016 and taking on the competition, what are your top priorities this year? what cities? what strategies? what will we see from lyft in 2016? john: we want to expand it use cases for existing users. the first time you use the service, maybe you're having a drink and you don't want to drink and drive. then maybe you try it for your commute and you find out how convenient and affordable that is. people in san francisco and new york are using as 80-100 times a month. so, we will be attracting new users and building products to increase user ship -- usership from the first time using. in dan: for the first time, the owner-driver model is changing. the utilization model is changing. the average car is used for

percent-5% of the time, and the rest of the time it sits there depreciating. that is a model that has to change. in safety conditions and economics will drive the change. emily: staying with autos, toyota is trying to keep silicon valley from dominating its dashboards. the company is using an open source version afford systems to connect smartphones. toyota has resisted apple's car play and google's android auto, citing safety and security concerns. ford also announcing that other automakers are considering the platform including honda, mazda, and subaru. coming up, windows 10 hits a big milestone. what the numbers mean for the ceos turn around, next. ♪

emily: watch out, google and apple, microsoft 10's operating system has been installed in more than 200 million devices and is on its way to hitting one billion devices by 2018. keep in mind, microsoft is giving away its upgrade for free for the first time, but just for the first year. david, does 200 million seem like a big number to you, and is this one billion target in 2018 realistic? david: i don't think google and apple are quivering in their boots, but i think microsoft is getting increasingly pragmatic, giving the upgrade away for free while making money from pc makers and enterprise retailers. emily: i recently spoke with sasha and attila at dell world about his goal and how he gets there. take a listen. >> our goal is to grow the ecosystem, the demand for the pc, the new categories, stimulate demand. our goal is to make sure we have a vibrant ecosystem. emily: what are some key things you are going to be looking for this year to determine whether his turnaround strategy is working? david: aside from pcs, they have

a ton of good enterprise products that continue to do well. the key issue for microsoft is how well does their cloud strategy continue to do? in some ways, the whole cloud battle is between amazon and microsoft, the two seattle companies. i think as cloud services grow and grow and microsoft is able to get more people shifted to subscriptions, that is where the real long-term opportunity is going to be found. emily: what do you think are the biggest challenges that della -- that he faces this year? david: they are very economically dependent. their challenge is going to be to stay relevant in the face of apples cool factor. as the global economy may be a little shakier -- although i don't think it is any real danger -- microsoft is a little less huge, a little less dynamic right now. he has to get more cool without losing focus on the businesses that rake in the dough, particularly in the enterprise areas, databases and other things.

emily: we will be watching for the microsoft cool factor. david kurt hat trick is with us for -- david kirkpatrick is with us for the hour. coming up, apple facing criticism that it is too vanilla. and the consumer electronics show is coming up this week. we will tell you all about it. ♪ him

the only way to get better is to challenge yourself, and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20.

it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. him an update of our top stories. almost $20 million into the financial system. dan the six-month run of cash injections. the economy slowed down. a merger between fairchild -- the new offer could put that

under threat. tiger airways shares are surging in singapore. minority shareholders lobby for a better deal. singapore air has extended the time limit. the start to trade here. jeff bezos waved goodbye to 3.7 billion. a quick check him of going on market wise. >> just add what you said there.

the biggest billionaire losers on monday. we're seeing a slightly better picture, but in no way and we recovered levels. right now we are down about a 10th of 1%. next, 255 billion. although it is slightly better, gold is given back some of its gains at the moment. we are on lunch break at the

moment. we do finish the training session don't have the trigger. six out of eight of apple directors are white. as you can see, six of eight of apple's directors are white. according to new documents by bloomberg, a recruiting proposal was submitted by tony maldonado, calling for the company to put more people of color in high-profile roles. will this pressure apple to increase its diversity cap at the next annual meeting?

joining us from our l.a. bureau, and david kirkpatrick. tony, this is a problem across corporate america. why are you going after apple in particular? >> there were a few concerns i had, particularly after a discussion i had with my son three years ago. after reviewing and researching apple's history as far as the board of directors and governance and leadership, i notice there is a big difference between what is being dated in the public about diversity and what is actually occurring. i noticed for about 18 years there was no one of color appointed outside of andrea jeung. you had to spend 18 years between two black directors on the board. the only hispanic i see on the

leadership governance is a queue. it is a company that i love dearly, and i believe in its philosophy. i believe that using them as a catalyst for change for silicon valley and the rest of the corporate world is the most useful at this stage. emily: google and facebook also have just two women on their board, there is not a lot of diversity there either. are you trying to make an example that others will follow? >> i would like to because this. by saying, " make an example," it sounds like i'm looking for a negative reaction. i'm trying to use apple as an example but positively. apple is a catalyst for change. it is a great company and has great programs for diversity, but at the senior level there is great concern and by using apple in this proposal, there will be change among google, facebook, and other tech companies around the world. emily: apple last year adopted a bylaw vowing to improve diversity, something tim cook

has been very outspoken about. he said in an open letter last year, we are working hard to expand our recruiting efforts so we continue hiring talented people from groups currently underrepresented in our industry. he personally came out publicly. why isn't that far enough? >> we have to understand that change has to occur one way or another. we cannot be waiting for it to occur within a decade or two decades. change is occurring, and i agree with that. but that is starting from the ground up. if you want to have a sufficient number of people of color to join the ranks of apple and tech companies that we need examples

of the top. if you have a leadership team that happens to be too vanilla -- i am hesitant to phrase it that way, it may sound like i have an agenda and i do not have an agenda against a particular group. but when you look at something and cannot identify with or connect with it, then we are going to have brain drain. we will not have sufficient people of color saying i belong with them and should be with them. this is a business model that we need to change. this is not a racial issue or an agenda or progressive movement. as a matter of fact, i am a conservative republican. i believe by change we can change within. the only way we can do this is by giving good examples for younger people by converting some change. >> i think it is great that you're giving pressure. pressure is always beneficial. i was looking at the numbers today but at the rank and file level, apple seems to have quite a few more african-american

employees than most other tech companies, which may have to do with their stores or the nature of their workforce, but how do you feel about that and how are they doing in the aggregate beyond the top leadership level? >> i believe in the aggregate they are doing positively. i am giving a lot of credit to apple as far as diversity is concerned. when you walk into an apple store you cannot identify with just one group because it is a multicultural environment whether london, new york, l.a., china. on an aggregate level i would agree they are doing a lot of great things positively. but we have to recognize that there seems to be a problem at the top level. not just that apple, i am aiming also at facebook and google. why is it that it has taken nearly 20 years to have a second

black person gentrified within the board of directors of apple? we should give kudos to microsoft that happens to have a black or african-american chairman of the board. there is change but we need further change. we cannot wait 40 years for further change. i'm not asking for a timeline. i'm not putting on pressure and trying to micromanage the position stop i'm trying to nudge them -- position. i'm trying to nudge them a little bit. we seem to be at a standstill. emily: have you had any personal contact and how have they responded to you? >> we have had conversations. even before my proposal, this idea that i had has bitten --

has been within me for three years. it was a discussion i had with my son approximately three years ago. subsequent to that, when i went to the last annual meeting i posed this same question and what i am getting is a him reactionary response from apple. instead it is a defensive response and i believe that we can change the tone of the conversation if they acknowledge that there are deficiencies. emily: when you say it has been reactionary, what do you mean? >> they have pointed out that they do have denise young smith. the worldwide human resource director and the point to the appointment of james bell to the board of directors, etc. however, that is like saying for instance, i am giving this example in general, some of my best friends are black. some of my best friends are jewish.

you are giving a defense to justify what is occurring based on the fact that you have a small sample of people around you. what we need is response from apple to say we have a problem here, not just in apple but all over silicon valley. what is it within ourselves that we need to change. is it the message? do we not have enough recruits? if we don't, what are we doing to bring those people to us? apple is very influential and they believe they can instigate the changes at a given stage. we are talking roughly 50 years since the civil rights movement has occurred and we are still having the same discussion. emily: tony maldonado, apple investor. thank you very much. we will be waiting to see if apple shareholders vote on that this year. coming up, one of 2015's highest flyers starts the new year on the skids. ♪

emily: the winner at the box office. the disney movie taking in over $90 million. star wars has now grossed over $740 million in the u.s.. it is now just $18 million a hind "-- behind "avatar." the stock was hit hard by an analyst downgrade. at one point, netflix shares were down 8%. last year they posted a gain of 132%, robert baer drop the stock this morning. joining us now from l.a. is

lucas shah who covers entertainment and david kirkpatrick still with me. let us dissect what baird is saying here. talk about subscriber growth and what is happening overseas. do they offset? >> is not so much that they offset but the question investors have is whether netflix can substate -- sustain the level of subscriber growth. netflix has sold everyone that it is a growth story that it will get eager and bigger and the subscribers can pay for all the money they are funneling into expansion. that growth has slowed a little bit in the u.s. which is one of the reasons why they had their first down quarter and a while. -- in a while. if that continues into next year that could slow some of the momentum they get in another few hundred territories.

emily: netflix has been upfront. they are spending billions of dollars on original content, but still buying other content. is this buy-in on original content, when do we know it is paying off? >> 2017. netflix has said they will start to deliver material profits in 2017 because that is when they finish their global rollout which is supposed to be this year. they should finish this year with the possible exception of china. starting in 2017 and 2018, you will start to see profits. we don't know if that will happen, but that is what they have promised. emily: much of the programming we have seen on netflix has been spectacular. david, how bullish are you? >> i think that netflix is in a similar position to walmart. they have defined it industry. amazon is coming up there tailpipe.

if you look at the price of amazon prime, it is pretty much the same as subscribing to netflix, but you get the free him delivery and everything else. the quality of amazon continues to get better and better. netflix still clearly has the best content of any streaming service. though hulu is the best for recently-aired television. i think they will face a very challenging situation to grow as fast as they have been expected to grow given amazon's continued aggressive approach.

emily: lucas, would you echo that? >> netflix is a leader in its field, but the question is what the field is. they complete with amazon and hulu. for the most part i see them as the leader in the streaming space because they are just making more of it. they have not had that consensus hit like netflix. jessica jones, orange is the new black -- all of these are different than something like transparent which i love. i'm waiting for hulu and amazon to produce a hit on a scale that netflix has. emily: lucas shot in l.a., david kurt detrick you are sticking -- david kirkpatrick you are sticking with me. more of bloomberg west, next. ♪ emily: now, to the u.s. executive with the biggest

emily: now, to the u.s. executive with the biggest paycheck. he tops the bloomberg index. woodman is followed by michael friese whose pay was about $139 million. six of the best paid executives work that consumer discretionary firms including companies like tesla and discovery communications. as we kick off the week, the

tech world is focused on ces. the consumer electronics show begins wednesday in las vegas. they will be betting on the biggest technologies of 2016. our editor at large will be there. david kirkpatrick is also still with us. what are the big gadgets? >> it is going to be an interesting conference. it is going to be about one million gopro knockoffs. 1000 fit bits, hover boards, and a lot of junk.

but we are going to start to see a discussion about the way that data can be used as it is gathered by devices. the internet of things. those ideas, where so much data is being gathered, and what you do with that is the second part. we might see a lot of discussion about artificial intelligence, the way all of these ships are gathering data and doing something with it. emily: a lot of the predictors are saying that virtual reality will be a big thing this year. 2016 will be that your of virtual reality. facebook saying oculus rift preorders will start january 25. how bullish are you? >> i am very bullish on virtual reality. oculus will be important for gaming right off the bat. that is what they have will be the most popular first

application. overtime, we will see it become a very important alternative to travel. in the meantime, augmented reality, like google glass, is probably going to be a bigger trend where we have virtual rings overlaid on the real world -- virtual things overlaid on the real world. microsoft has a product, the famous startup in florida. magically is coming up with over $1 billion in financing. i am. very bullish. the squares of glass we carry in our hands are not the only ways we get digital information for much longer. emily: david mentioned magic leap. oculus. corey, which companies are you watching? >> i am really looking for the software uses. there has been a long history of studying virtual-reality in the weight it can be used -- in the way it can be used.

not only is the medium different, your brain him experiences it differently. the notion that we will watch longform video will be interesting to see movies or entertainment experience. the notion that we could play games for long periods of time. drop me into college duty i could walk out of the room eight hours later and have had -- into call of duty, i could walk out of the room eight hours later and have had a good time. but hardware vendors, i think that will determine what the market is and how they will used. emily: david, i want to ask you about some of these concerns surrounding internet.org. thursday is the deadline for the indian public to weigh in on him facebook's services project. but critics in india say it threatens the prince pulls of net neutrality, and the foundation of internet.org,

which is mark zuckerberg's big project. you have spoken to him about this, and i have spoken to him about this. last year we talked about him whether this is something he wanted to do for good or for facebook's business. >> if we were primarily focused on profit, the most reasonable thing to do would be to focus on the first one billion people using our products. the world is not set up equally, and the first one billion people using facebook have more money than the rest of the world combined. emily: still, the program was shuttered in egypt and it is running into these challenges in india. what do you make of this? >> i accept what he said. i know him well and i do believe he thinks he is doing something good for the world. he really wants to connect more people into this network that is so critical to our lives. i have studied this a lot lately, and i wrote a piece about it. the backlash in india is so severe, if they win in this regulatory body, i will be

shocked. there are most no voices speaking up in their defense. the one person in india who seems more sensible and favorable to them is the prime minister. emily: they lost faith in india him with the prime minister. there was all this video of mark zuckerberg with the indian prime minister and everything seemed to be fine. >> there is such a strong nationalist attitude in india, and the anti-u.s. technology attitude and the fact that facebook is a giant american colossus coming to impose its will on india which i do not think is correct, but that is a narrative they seem unable to

get beyond. >> the sentiment and a lot of the editorials are why are we getting second rate? how come we cannot have the full internet? we do not want the pieces you give to us. emily: that is what we will be watching. cory johnson, we will see you at ces. david kirkpatrick, thank you for joining us today. do not forget that we will be kicking things off live at ces on wednesday on bloomberg tv, bloomberg radio and bloomberg.com. ♪ announcer: on today's paid

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