♪ >> is just after noon here in hong kong. this is an of eight of our top stories. its lowest ever since 2014, the yen holding a one-year high. mining down even as oil climbed back up to $28 a battle. facing a bear market. donald trump and bernie sanders have taken the respective republican and democratic primaries in new hampshire. john kasich in a crowded field. sanders a clear victor of hillary clinton.

being sued -- oftels laundered aliens dollars. hsbc says it will defend the case. those are the headlines. 24 journalists, 150 euros. journalists, 150 bureaus. chinese market closed for the lunar holiday. the nikkei down. back in half an hour, time now for bloomberg west.

>> i am cory johnson, in for emily chang. this is bloomberg west. tradersk, solar city after investors send shares down 29%. could amazon become the next that x? a blueprint for a global shipping and logistics operation. ♪ corey: net disney reporting an interesting quarter. shares.ase in star wars driving most of the action. investors have been sending shares down as es en continues to see subscriber losses with rising programming costs. columbia,yst and from

we have input. you would inc. that star wars would more than make up for a little weakness, but no. >> this was a real head scratcher. here you have a company reporting a record quarter and you still have a share trading down. investorr one issue on minds is espn. commentaryutiny and about subscriber losses. causing no shares to trade off. shares to those trade-off. corey: is this subscribers in transition across the empire?

changing the way the business works with espn. >> note out. consumption is undergoing a revolution. investors are missing the beauty of disney, the diversified nature. where you hadter subscriber losses, you had a huge off than in these video. when you talk about contact consumption, people focus on the consumption part, but you have to have the content people want to consume. othertrast to via, or companies. corey: give me that again. got to becribers has a loser or at least less of a winner. walter: it is an involving scenario. while they may be losing subscribers incrementally, they're offsetting that with other parts of their business and i do think they are going to

pick up subscribers as they evolve the distribution of espn and their other networks. bob iger talked about going direct to consumer if the cable bundle on bundles, they have the content to be able to go direct to consumers. seven investors want to obsess in the near-term about the slow losses of subscribers, i am happy to take the other side of that trade and by a company that is trading at less than the market multiple. we showed a graphic that has the revenue of what they get for each espn subscriber. more shocking how much disney gets for an espn subscriber then tnt gets for a subscriber or you name it. >> head and shoulders above its peers. almost seven dollars per

subscriber her month which dwarfs the competition. he is brings -- espn brings about $9 million, 1/5 of the industry, almost 50% of disney's operating profit even though it is diversified, this is why there has been so much focus on this one portion of disney business. walter: i would argue that they via espnually get more if they went direct to consumer. i would be willing to bet consumers would be willing to pay 10 or more dollars for espn and disney content than they are currently being paid by the cable operators. if that whole system just blew up -- corey: if you look at the pack network, the ut network, the sec network, you have not seen

consumers being willing to pay for a whole packet when they can buy them separately. walter: because they still have a choice. what i'm saying, if you went tomorrow, a substantial number of subscribers would be willing to pay for espn and disney content. youngally, if you have kids and you try to tell them you do not have disney, that is not a good situation to be in. corey: 10 seconds or walter, is this a different investor environment? what would've of been good news is now bad news? walter: yes. disney was a winner last year and the market share just wants to sell winners. corey: thank you very much. musk companylon plunging in the after-hours trading with the investors worried.

willllations are said they fall 34%, leading to wider loss per share in less revenue than some analysts were expecting. cash flow overgrowth. talking now about sensitive numbers, bloomberg analyst. tell me how to production lessening. so, this company is hard to figure the model out. i was struck when they said they are focusing on cash flow. cash flow was abysmal. kit: they are burning cash very weakly. that is basically the business model of a rooftop solar company. that has been the model all along what they're telling people they are aiming to do is be able to first of all, installation costs will go down

second of all they will be able to resell the assets, including the leases and the whole package with the panels. they will be able to resell those two secondary market buyers and that will get them back to cash flow even within one year. corey: break this out a little bit they say their costs are going to go down for , yeah because we can see workers don't want to get more pay? [chuckling] corey: how are costs going to magically go down? walter: it is true the cost of solar panels are following. they want to be getting more efficient in finding customers and putting them into the pipeline to get the panels put on the rooftop. corey: that sounds like it would be a lovely thing if they could be more efficient. they were trying to be efficient last quarter as well. are there more, their cost of

capital is not small anymore. it is getting more expensive. they the tech about that? walter: there were numerous questions on the earnings a little while ago about how are you going to resell these assets,tax advantaged as it-backed securities. they have a whole bunch of things they are trying to sell to people and get the cash monetized. clearly, there is a lot of skepticism in the current environment. maybe that worked a couple years ago but now people are very concerned about where our buyers going to get the money. from what banks are going to get the money for what could be a fairly risky thing to invest in. corey: there is always a long-term issue with the way the company is set up.

they say it will throw off on five years, but most will have four seven years. 5%, 1% will say i am not going to do that anymore. of changed i'mcs not going to do it. i imagine this is going to happen. walter: that is exactly right. there are no guarantees going that long. another important headwind they face is as gas prices continue to go down, the price of electricity continues to go down and the appetite for what are adapter, prime first but harder and harder sells for price ofn though the solar maybe going down, the price of other electricity is going down, to sell it is a tough battle to convince people to put it on the roof.

you veryge, thank much. the market is going to have a technology foror the fifth day in a row. julie hyman has the wrap from new york. nasdaq 100 in particular having a losing lowestand closing at its since october of 2014. ahead of the disney earnings, viacom and 21st century fox, down. viacom coming in with the mystic advertising revenue that fell. revenue from paramount pictures down by 15%. could you been to the decline in the stock even as the new chairman and ceo coming out and trying to reassure investors

unsuccessfully. 21st coming out with a 2016 forecast that was disappointing. also, disappointing theatrical releases over the course of the year. happened with the stock over the course of the session. so-called stock that had been a week. amazon, google, having a mixed session. netflix rising even as the other large cap technology shares showed weakness. corey: that was bloombergs julie hyman in new york. coming up, watch out fedex and ups. bloomberg got hold of an interesting internal document that showed plans to grow amazon into a global shipping sector. and we will hear from goldman sachs president and another ceo later at this hour.

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♪ corey: the latest revolving door. -- the benefits -- zene fits executive out. value written down as much as 22%. executive shakeups, paypal has a new technology officer.

papal shares ending today more than 2.5%. andon quietly working expansion of its fulfillment by amazon service. according to documents uncovered by bloomberg news. andill turn into a fedex ups rival, and they are also thinking of alibaba as a competitor. ryan peterson and an author on a book of amazon join us next. glad to have you both here. ?rad, what is the specifics to get a planning document out of the very secretive amazon, what spencer came up with was a document written to about three years ago, called dragon boat. what does dragon boat mean?

think a moment. do, itazon wants to appears, is getting to the global shipping business and consolidate all of the goods it is selling from suppliers in china and by space on the freighters that we see up the window here on bloomberg west, on airplanes and basically have customers, sellers, making these deliveries on amazon and not over dhs or ups. about becoming a shipping company. that is no small interest. antiquatedreally an industry. the idea this big cap company would come in and bring automation is a huge opportunity for amazon. your organization. peterson: we are a technology shipping company.

we are moving in a world where pieces of paper are traveling across the world to serve as title for the goods, right? and all of these complex handoffs have to take lace to move freight internationally, managed by people on the phone, exhibitions. very antiquated industry. >> you talk a lot about this in your look, they threw a lot of things up against the wall and see what works. this seems like a bigger deal. >> we're seeing what they were talking about three years ago. they are acquiring airplanes. they're putting their names on trucks. bigrly, they see this as a opportunity. it is very amazon like to move so quietly, secretly, and to leverage the surplus of sellers they have in places like china, india, and look for opportunities to make the business more efficient. corey: it reminds me a little of amazon web services. where they were consuming so much computer stores,

processing. a lot of shipping. tax they probably see how antiquated it is and how there is an opportunity for technology to make it more efficient and pass it to consumers. corey: sometimes they think it is hand and they can replace. what are these things about the shipping business that are stubborn to change? a world of an. every business is different. all kinds of compliance getting goods in and out of different countries. human-driven a lot is there are relationships involved, it is very complicated. do think you could just come in and automate things from start to finish, it is daunting. corey: give me an example of what you have encountered that has been very difficult. >> hoverboards. people are scared these things could bring down a passenger plane if shipped on a plane. comply with those rules and

regulations is not something softer will be good at. you need to have people on the ground to look at things, make sure passes the drop test, all of the fcc regulations, if it is a consumer wireless device. there are all sorts of implications. corey: this is not hurt them in their negotiations for the u.s. postal service and ups? looked amazon has always out is option analogy. you want to keep you honest and on their toes. i don't think amazon is going to go supplying to the u.s. postal service but they rely on postal companies but to have their shipping mechanism to the last mile, to running amazon trucks and neighborhoods allows them to negotiate better deals. corey: thank you are a much. our senior editor for bloomberg technology. coming up, how to turn the so-called front page into money. the new challenges of aching a popular website with the ceo of reddit.

corey: now to a story that is trending. the fit it. it will to you how much you walked, the quality of your sleep, apparently, whether or not you are knocked up. of 110sting heart rate heart beats a minute, he turned to heartbeat. he was right, it came out positive. the rabbit died and that was a first. fitbit investors not amused. prices.ipo the company lost more than half of its value since it started in june. it introduced altar, a slimmer female aimed at consumers. asking how he weighs the freedom of free speech over privacy issues. >> freedom has always been

important to read it. -- reddit. privacy is very important to us. when it comes to freedom, there is more nuance. important to us as it is to the world in general. that does not mean and fettered free speech, right? speech that is dangerous. terrorism is completely nonnegotiable. look at issues carefully every single time and try to do what is best for both our community, where we want to present as much as we can an accurate view of humanity and also what is best for the world and our users. we do not want people to feel like their life is in danger and we do not want to be was possible for harm in the realm world. emily: and some point, when it

comes to turning this into a business, when it comes to making this a community that is tol to all, are you going have to say, we don't care if some users tell when a comeback. >>do not want them to come? i made this remark over the summer when we're taking a pretty aggressive stance with some of our worst users. mail in my of hate inbox. regardless of who it is coming from, it takes a toll on your psyche. i went to bed at night knowing that if racist are mad at me, that is ok. the right people are angry at me. we cannot please everybody, but itcan have scale mate read a safe lace for people. emily that was with bloomberg. we are going to hear from ceo jerry cohen.

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i've never felt so alive. make your business phone mobile with voice mobility. comcast business. built for business. ♪ rishaad: 12:30 here in hong kong. donald trump and bernie sanders -- theken the route respective democratic and republican parties. victor was the clear over hillary clinton. it is the state she won in 2008, the machinery now rolls to a primary and south carolina. out, i heard the end of bernie's's speech and i heard some of the getting. congratulations to learning. in all fairness, we have to congratulate him.

we may not like it, but i heard parts of bernie's speech. he once to give away our country. we are not going to let it happen. rishaad: sharp could be part of a new japanese smart appliance company. it is proposing to inject more than $2.5 billion into sharp which would be used to buy other domestic appliance is is is, primarily toshibas. sharp prices down by the most in almost one year. the big for lenders out with information. better than expected. the slowest since the financial races. globalby the risk of the turbulence. headlines from bloomberg's news powered by 2400 journalists and

150 bureaus around the world. looking read out there in the asia-pacific. juliette? juliette: not a good day across the markets in hong kong, china, taiwan also closed and vietnam and korea. you can see selling across the markets that are open. is 3.7%, the loss adding to yesterday's more than 5% fall. the banks now holding those loads we have not seen 60 rubber 2014. october 2014. apart from the gains you mentioned, the biggest stock i those miningle, losses could be a lot worse if it was not for cba's gains. in three weeks as it came back online after two-date right. playing catch-up.

widespread selling across the region. a safe haven, and we have seen the yen in play. 13 past 116. we leave you with this live shot of hong kong, where markets will open after the lunar holiday tomorrow. ♪ corey: this is cory johnson, in for emily chang. emily sat down with gary cohn and asked him why bloomberg has yet to go public. still has yet to go public. >> oversell still has access to capital, they are closing around as we speak. emily: unprecedented. gary: they are continuing to grow, they do have cash flow. they are doing the things i was talking about other companies doing.

they are investing a of their u.s. earnings and u.s. cash flow in building up their international and china business, but their u.s. business is pretty to be very positive for shareholders. emily: what about investor liquidity? garrett: that some point, investors were liquidity but as long as a company is growing, investors are crating value. they will get concerned if you rounds.t rounds or down come and then they will start work more about liquidity. the companies having trouble raising capital doing a flat round, a down round, having to create more security or preference for new investors, that is when you will start hearing about, you know what, i am managing other people's capital and i need liquidity. and lee: what is your relationship with travis and how are you and rising him? gary: we're talking all the time about how he is thinking about

optimizing for his cards investors and for his future investors. emily: you want from the ipo, gary: we do. [laughter]: emily: information saying goldman sachs is the most popular bank in silicon valley. two years ago, and they have been morgan stanley. -- what have you been doing differently? consistently been in the valley, we have a strong team. great makers. we have been invested with the client from the very beginning with many of these companies. we will continue to be there. we will continue to do for our clients what they need in all aspects of their business. emily: your boss said today you are seeing and-up demand because private funding is drying up. our companies thinking about going public in a market as volatile as this?

gary: the promise and many of these technology companies for years has been growth. we will be able to get funding no matter what as long as we are growing. ,e will use the funding to grow which will allow us to get the next round of funding which will allow us to grow. if you cannot get on the, it changes the premise to some extent. you now have to about changing the model from just pure growth to creating cash flows to create revenue. creating return on capital. if you can create cash flow return on capital, you will have access to the public market and buyers and investors will show up at that point. historically, companies have not wanted to go into the public markets because the public markets will at some point, like we are seeing now, they will demand earning power and demand on capital. they will demand you create revenue, that you just do not

grow your company forever. emily: what happens then to ipo volume in 2016. how does 2016 compared to 2015? to or if companies choose are forced to go public, we will see a pickup in the amount of ipo's. but if they're forced to go public, the question is, will the market allow them to go public? only companies with a robust, long-duration this model will be able to access the public market. the public market can become very discerning. have an ipodid not because the flow of funding into the public market is not there. to do an ipo, you need new investors, unique capital coming into the market. if you are an asset allocator today, running a mutual fund, a big investor, you are probably pretty invested today. if i bring you a new ipo, for you to be of to buy that ipo,

you need to sell a position you already own and think that the ipo is a more favorable rate of return than something you own or double what seems a better outcome, you need to be getting positive inflow is every day and put those to work. the ipo is a great way to put them to work. we have not the seeing positive and close to the market, and fact we have been seeing outflows. until we get inflows in the market or a change in valuation of the ipo's, it is going to be somewhat difficult for some of these companies to go public. that said, we think we will get a normal ration of the evaluation and we think many of these companies will be about go public as the market continues to settle them. gary: goldman sachs ceo with emily chang. a company's market value, take a look at these private companies

that now have a larger capitalization than twitter. xiaomi, airbnb, spacex to name a few. aboutliu spoke with a ceo why he is still bearish on twitter. >> twitter is an incredibly powerful platform. isy can about how twitter used, a lot of value there. if you have seen the kind of management turmoil there over the last couple of years and you still have a platform of 320 million users grown revenues at the rated it is, being engaged the way they did is. look at the super bowl this past weekend as an example. the get any major political activity in the u.s. elections as an example. that is a platform ultimately we think will be worth more but ultimately they need stability and they have not had that over the last couple of years. corey: that was goldman sachs keith terry.

coming up soon, silicon valley, is it getting old? politicallk about donations. another check about what is moving in after-hours trading. solarcity trading down big time. a say installations will lessen. closely watched espn building -- business for espn, and disney coming up next. stay with us. ♪

cory a developing story. supreme court has blocked regulation. puts the clean power plant on hold. the president's boldest attempt to get to fight climate change. states were rushing to submit reduction in emissions plans but coal miner's in more than two

dozen states have awaited the resolution of changes in the lower courts. says some of the information technology the government uses is archaic and in need of an upgrade. towants to boost security $19 billion, a 25% increase. towants to assign someone oversee this, and says it makes everyone's security vulnerable. those are creepy hands. always creepy hands. supreme court, surveillance bill being picked apart i watch stocks. intelligence committees saying the bill, called the snooper charter, offers adequate privacy protection. they also argued the current draft seems to be rushed. separate committees say it could

be costly and damaging. some form of the bill must be passed by the end of the year. the saying goes, if you're not a liberal by the time you're 25 you have no hard and you have your not a conservative by the time you're 35 you have a brain. some of the silicon valley companies are growing up. some of the silicon valley companies are leaning toward republican. a targeted victory. becomes -- comes to an interesting conclusion that silicon valley is not as liberal as you might think. >> presidential campaigns are some of the most ideological. it is striking how many companies have more people giving to republican candidates in democrats. state has elected many republican governors.

one of them with the most experience is a movie at her. wouldn't you agree? >> to some degree that is right. area targeted victory, we at the intersection of silicon valley, innovators, and politicians and washington. we are seeing that the romani, the smart money coming out of silicon valley today is based not on ideology but on policy. insofar as this policy bites are happening at the state and local levels, they understand the republican party as the party that is the party of innovation. the presidential campaign, marco rubio, ted cruz, they are standing with over. hillary clinton, she is standing with the taxi and limousine corporations. they understand the smart money is going where the smart fights are happening and that is at the policy level.

corey: historically, what is the data? historically it has been the tech companies have leaned left and given to democrats. history, certainly in 2008, democrats adapting to tech knowledge he better than republicans did. beyond that, i think there is a mix of issues that really cut both ways were both parties. it's like immigration, democrats have been pushing emigration much more than republicans although obviously there are with the about whether thinks the tech companies are interested in, which companies would be better or that. we are seeing a bit of a shift and i think part of this is we have had eight years of a democratic president. republicans are making overtures. andng to woo this industry that is why we're seeing some shifts and a lot of it is driven

by policy and ideology. corey: i am surprised we did not see a lot of money going to rant aull because -- rand p because you cannot throw a semi conductor in this area without somebody claiming to be an avowed libertarian. >> i am not surprised. a lot are smarter than we are in the political world and the understand what candidates who look like they are making inroads with voters looks like. that is why you are seeing more money towards folks like marco rubio and ted cruz. it is not surprising to me. these are platform agnostic people, less ideological, and they understand the democratic party is playing at a much deeper level from the technology side then they have in the past and they are smart to put our money on new pub inside and we hope to put that money to good use.

corey: lenny, let us be clear. you are a republican strategist as well. we appreciate your reviews. from targeted victory. thank you. terminal one bloomberg.com. out of this world. in its final budget, president obama has requested $19 billion for nasa. what nasaless than actually received. nasa may be turning its focus back to the moon. according to documents, nasa will invest an early stage private-public partnerships leading to the possibility of a habitation near the. careg up, and elderly provider making waves in the 1099 debate. next. and tomorrow on bloomberg, don't

stanley ceo. check out more bloomberg west after this.

♪ drones conducting surveys of offshore oil and gas rigs. this helicopter transport to the energy sector, less time operating drones and more time approving software.

can be dangerous, time-consuming work. experts say using drones to explore and check things could minimize risk and increase safety. biggest award to a startup with elderly care. the uber for marijuana ease. all nominated the winning company called honor and it helps people in need of an in-home aid and caregiver. joins messaging company, to tell us why he saw potential for this market. interestingn company. talk to me about why this is needed in this industry. >> i got a little bit worried about my mother and i got to looking into how we take care of our elderly in the united states.

i discovered we are in the same place today as we were in 20 years ago as we were worried about my grandmother and trying to help her. the elderly space is one that has not been touched by innovation and rightly, technology and innovation have missed it. corey: this morning you talked about the dissatisfaction of the people in the home health care business. people who we asked to take care of our elderly parents. we call them care professionals. the industry will call them care givers or unskilled aids, which the care professionals really dislike. corey: shocker. >> yes. people are these paid low, and many of them, 66 percent, are on government assistance programs because there are so poorly paid and do not get enough hours.

when we looked at how to fix care for parents, our elderly, it is really about how to fix for care professionals and give them the best pull so they can give the best care. corey: what is not working? >> what they are doing right now, as they will be sent into a home and not know what is going on. it might be a 90-pound e-mail 305d to be able to lift a -pound male out of bed. or take care of cats. agencies say they are very small. the way it is run. corey: how is it run now? >> there are probably about -- withgencies with a an average of 30 people per company. but what are we doing at home? tracking the care? modernizing that, giving care professionals information before they walk in the door, giving them a clear care plan, tools to

provide amazing care of the home, tracking outcomes, that is a huge deal. you want to know, is this person improving in state or getting worse? how is their pain? things like, how is someone's pain trending? how is their sleep trending? corey: my mother had her hip replaced a few months ago and i started getting her to wear a fitbits i can see which was doing after i left. >> that is a common use. people will talk to their parents and say, you know, i don't necessarily like wearing things designed for the elderly, kind of designed down to people. but taking things designed for everyone in making inappropriate for the elderly is great. corey: you came across this because you are taking a different approach to the workers. over people, saying you are responsible for yourself. it you are taking a different approach.

>> we started with the contractor model but we learned after six months that we really think the employer-employee model is better. -- carefessions professionals were staying with honor for a very long time so we could provide training, to help people advance. when people of something to aspire toward, they prefer that. so we train. do think over would be doing better if they actually trained employees and make them better and happier in their work? is a trend that better? uberit is tricky because is a transactional model. people use it were, they come and go. a long-term human relationship. they are two different businesses. if you give people a path up, i think they perform better. corey: congratulation. honor ceo. thus does it for this edition of bloomberg west.

tomorrow, tesla, cisco. big companies. the, important stories. we will have all that tomorrow on bloomberg west. ♪

♪ >> imagine wiping away the appearance of crepey skin. >> on your arms. >> on your legs. >> even your neck. >> what would your reaction be? >> are you serious? >> oh, my goodness. >> and now, a paid presentation for crepe erased. find out how you can get it delivered for free. coming up, jane seymour, dorothy