remy: let's start with your bloomberg first word news. late files from a my firm in panama say shell was one of the most active companies that moved money on behalf of politically connected clients. the records outline the creation of more than 200,000 offshore companies. shell companies can be legal, and can also be used to hide wealth. california and new york are gradually pushing their statewide minimum wages to $15 an hour, the highest in the nation. california will do it by 2022; new york by the end of 2019. imary,of wisconsin's pr

ted cruz leaves donald trump. meanwhile, trump is telling kasich to get out of the raced. democrats, polls show bernie sanders leading hillary clinton. a new study on air travel quality says more flights are arriving on time, the traveler complaints jumped 34%. it's the highest level since 2000. the top reason for frustration were cancellations, and delays, and extra fees. global news, powered by 2400 journalists in 150 news bureaus around the world. "bloomberg west" is next.

cory: i'm cory johnson, in for emily chang, and this is "bloomberg west." the heir apparent to the media empire is stepping down. plus, a sales myth, we will tell you about tesla's excuse for missing its own forecast. a slew of tech companies trying to shine a light on how online lenders are working. but first, to a developing story. the disney chief operating officer is stepping down. a new twist in the succession plan of the world's largest entertainment company. our reporter covers disney for bloomberg. chris, glad to have you on. this is a surprise. chris: a big surprise. the market down in after-hours trading. our analyst thinks disney stocks will fall tomorrow as well. wall street does not like uncertainty and now they do not have an error apparent.

cory: just got this job a little over a year ago. why is this happening now? >> disney had no official comment as to what happened. there are reports of loss support for tom as the next ceo. we are not getting a clear reason at this point but it means they have to start over from scratch. it's a long process that takes staggs as number two. some of the other candidates have departed. they will have to probably look outside. cory: interesting times that disney with that breaking news. we are lucky to have you come in for bloomberg news. thank you very much.

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cory: online lenders are creating tens of billions of dollars of loans. a new company helps us understand the data from those loans. we have a roundtable, tell us what this means. >> imagine you are and investor in the peer-to-peer marketplace that is growing at an unprecedented pace. what you're really want is a view on the risk. there have been a bunch of red flags in the past few months ranging from the specific. it might potentially downgrade a few bonds. there has in a broad risk off environment this year.

all of this is piling up in what investors are looking for is a clear view on the risk. what does it take to really invest in this online lending marketplace, what data do i need to be able to do that, while avoiding as much of the risk as i can? that's really where the startups have found their niche. they are saying to investors, if you purchase our software, what we can give you in return is exactly the data that you are looking for. cory: autonomous research predicts $40 billion in this market this year and $60 billion next your. you have some excitement from your investors also. where do you see the role of these tools helping investors understand what they are buying? >> we have to realize this is new in the online marketplace environment. as a marketplace, we work with about 75 lenders across small

business. we are seeing rapid growth. the new providers are helping to create maturity around marketplace lending. what the providers can do is standardize the data and provide transparency in a way we did not have before. cory: ryan, you saw this market really grow. do investors understand what they are buying when they buy this paper that can be created by companies like lending club and others? >> this is institutionalization of the space. people are looking for other things. once you get comfortable with portfolio construction and the actual risk, these are great tools that will allow bigger and bigger amounts to be deployed. cory: how big of investment are we talking about? >> there are all different types. you can have a small family

office or a large hold on purchases. some can get larger than $150 million. in the fall the credit market shut entirely. people are still finding very attractive risk adjusted yields. cory: are your folks in a certain niche of borrower or the people who will buy the paper ultimately? >> our focus is on main street business owners, landscapers, dry cleaners, who are looking for financing to grow their business. the average loan size is $30,000-$40,000. they go as small as $5,000, up to a couple million dollars depending on the lender they work with.

cory: you have uncovered all these companies. is there a particular thing they all have in common, or some way they differ greatly? >> they differ in the extent they are involved in the securitization chain, which allows them to grow. as we know, back in 2007 it caused some issues. we know what happened with the subprime mortgage boom, it eventually fell apart. the difference between the startups is the extent to which they want to get involved in securitization. some of them want to get even more involved with how to really securitize these loans. cory: you worked on the

institutional side. are we going to see some borrowers blow up here? >> in any asset class when you see people deploy capital and they are little more careless and they choose to be, you will see people having problems. what others are doing is useful. they provide institutional research. you can look across the asset class in figure out what the right assets are. cory: we don't really know how the assets will behave in the

falling market. you just don't know what the borrowers are going to pay back and where they put it in their own credit stat. these are people who had to borrow money sometimes on a short-term basis because they had issues. >> the last six years have been the best time to lend money to people. the advancements in data on each of these platforms gets you comfortable with their accumulative default. data is important and will only get more important. if you can give someone a 78% on lever return, that is very powerful. if you can give people the tools to ascertain the risks and returns better, you will see a bigger flow of capital. cory: thank you to our panel. paypal is starting to feel the heat as more -- as they are brought into question. last week square made a similar

move to expand its presence online. joining me is the global head of product engineering for paypal. bill, what do you make of these new entrants, particularly this new amazon product? >> there have been a lot of players coming into the space. it's just an indication that a lot of others are now recognizing that online and mobile payments is a really attractive place to be. a big part of that realization

is that people see a fundamental change in buying behavior that is afoot, largely driven by mobile. as it happens, it has been a fantastic tailwind for the paypal business. the digital wallet is becoming a must-have part of the buying experience and it is driving great growth in our business. we have consistently taken share in the market overall. we see it as a great rising tide for many players. we receive a great deal of benefit from these macro shifts toward e-commerce and mobile devices that have been our sweet spot since the dawn of paypal 15 plus years ago. cory: the shift to mobile at this point is not anything new, and growing it may be the slowest pace in a long time despite the strong economy. i wonder if the payment solutions truly need to be new. >> users are moving to mobile as

their primary computing device. that is a pretty profound change in human behavior and people are demanding different buying experiences. more than half of all e-commerce shopping happens on mobile devices. there's only 10%-15% of purchases that occur on mobile. it's evidence of the fact that consumers can choose a mobile computing device but they are not willing to purchase unless they have a great buying experience, which is why we overwrote the industry by 2-3 times given the experience we have. cory: this week is your teen year anniversary of mobile payments, so this is not anything new. >> the very genesis of paypal

was beaming money between two palm pilots 15 years ago. the first mobile phone transaction was exactly a decade ago in april 2006. now it is a full 30% plus. we did $66 billion of global volume last year and we see that growing tremendously. this is something that is a huge shift in the space. the digital wallet lying experience, it's now a must-have in the mobile world. people are not willing to enter in credit card details and shipping address and all these things. despite the fact that paypal is 15 plus years old, we are growing to our potential. we are growing much faster than the industry overall.

cory: thank you very much, good to see you. when we return, the first part of this week's deep dive. we will look at growth and innovation in the wind energy business, after this. ♪

cory: legal woes mounting for sun edison. creditors saying terraform a owes them money in a deferred payment resulting in the -- they want to get paid and say payment will be due immediately if sun edison files for bankruptcy. there has been a big acquisition spree accumulating billions in debt, pushing the company toward bankruptcy. let's stay with renewable energy.

hearing from executives across the spectrum about growth and innovation. last year for the first time ever the majority of new power generation capacity will be renewable, according to a report from the u.n. when energy, a record number of turbines installed last year. how fast is it growing? we sat down with michael garland and asked him how his business is doing. >> we operate about 3000 megawatts, the size of three nuclear power plants. we are one of the faster growing, 500-1000 megawatts a year. cory: what are the things you have control over that are helping, or not? quick about 80% of our business we grow ourselves, meaning we go

out and develop it and create a project from scratch, or we buy it from small developers who have started development and then we finish it and put it all together. we buy that 20% from third parties. cory: wind and solar are dramatically different businesses. you see a lot of interesting numbers that relate to how the businesses are very different, whether in the places they exist, there are more wind farms than solar. what do you see the things that differentiate the two? >> we look at increasing output and cutting operation costs. it's a lot harder to do that with solar. solar is much more of a commodity. it can be installed quicker and faster and there is less

development elements to it. we like both. we do utility scale so we are not rooftop guys. charlieory: what is the one regulation you wish you could see? >> the clean power plan is the most important regulation right now to control carbon. the more we can control carbon or require renewables in the system, the better off everybody will be. that will drive the most megawatts of new development opportunities. the united states or north america for that matter is not growing much and it's a electrical demand. is growing at 1%. since 2008 it's been very flat demand. what you are doing is replacing existing inefficient or polluting power plants. cory: we've seen historic collapse of natural gas prices. do you feel like that has hurt

the development of solar, and if natural gas prices rise when we see even faster growth in the solar energy? >> natural gas has replaced almost half the cold the manpower for generation. it has made the wind and solar industry recognized that we have to aggressively lower our costs. you cannot build a new power plant very efficiently at the low cost we are paying for gas right now. it is not created to many new power plants, as many as you might think. the wonderful thing about renewables to keep in mind is, we did these contracts for 25 years and they may escalate at 1% per year for 25 years.

inflation may be at 2%. nobody even in the gas industry thinks ask will be staying down there for 25 years. if you tried to do a 25 year contract with the gas producer, you will be paying many times what the current cost is. it really stabilizes the economics retail rates to the ratepayers by doing solar and wind. gas prices will stay down for the next couple of years and creep up some, but still very low right now. it will drive us to have to be more competitive, which is a positive. the negative is, it's harder to convince people you should be buying wind and solar if you can buy gas at 1.5 cents, but people like the idea of renewables better than fossil fuels.

cory: that was michael garland of pattern energy. emily talked to john carrington at 3:00 p.m. on the west coast. comcast says it will work with groupon to bolster local ad business. groupon says it will use the investment for general corporate purposes, including repurchasing stock. b.e.t. is bringing the funk or at least the soul. 1100 episodes of soul train from 1971-2006. there will be a soul train concert tour.

still to come, microsoft upping the ante. what they are up to. ♪

>> the top stories this hour. risk aversion has returned to asian markets as the oil slump deepens. japanese shares driving losses at the end of a three-day search. topix slumping to its lowest level in almost seven weeks. kong,also down in hong seoul, in sydney. australia's trade deficit blew out in february, coming in at $2.6 billion. that is on the $700 million worse than expected. exports fell 1% from the previous month while imports didn't change. the doll so on the newsar. latest will make its

rate decision in our. system global financial feel safer banks to banks raising capital into leveraging. speaking at the asia investment conference in hong kong, the ceo it's a great time to invest in china. his company is on course to double its profit. those are the headlines in bloomberg news. let's get the latest new markets. japan comes back on line in markets take a breather. juliette: it hasn't been a great start to the month of april, or for regional equities. seeing the nikkei coming back and reversing the early morning gains. moment, but the

still a very strong yen way into export stocks. players are really coming under pressure with that crude oil price falling. 1%, certainlyp by bucking the trend we have seen across the rest of the region. cicc and deutsche bank coming through with bullish calls, saying they see further upside coming through, and what we have seen recently is more of a cyclical downturn. here in hong kong, the hang seng is up after the public holiday. you can see it really is the energy players, similar to what we are seeing across the rest of the region, really weighing on sentiment. we're not expecting any change to the cash rate in australia. the regional benchmark down by 1.5%, now at a full week low. a lot of selling coming through. it's this story about the yen's strength.

it's holding at 110.89 at the moment, an 18 month high against the greenback. having a look at some of the other em currencies, coming under pressure. that is your picture across asian markets. cory: when you think microsoft, you had better start thinking about the cloud. on friday, the cfl told us about a -- cfo told us about a cloud-based association with bmw. >> we live in it was a people expect things to be up-to-date, but they do not want the moment of a big upgrade. that is a wonderful thing about the cloud. we have bit the entire company on our cloud platform as a way for companies to build new types of applications. they will do great things. cory: another microsoft partner -- toyota.

the carmaker says the microsoft cloud service will free our customers from the tyranny of technology and help us return our own humanity. wow. the toyota executive, zack cakes joins us -- zack hicks you cannot, on a tech show and talk about technology goal here any -- technological tear in the. [laughter] mr. hicks: we just wanted to be easier. you should be able to get in a car and say i am hungry, and the car should know enough about you that you want mexican and opentable can see there is an open table for you. cory: i want in and out rigors coming out of my glove box. you are partnering with a

company that gave us control, alt, delete. how much lines of reliability do you need in a ferry that would be acceptable on a desktop that you could not have in a vehicle -- failure they would be acceptable on a desktop, that would not be in a vehicle? mr. hicks: toyota connected is a toyota start up in partnership with microsoft very much focused on data analytics, management, and creating new data services for our cars, and also throughout our enterprise. it really is the central, global data hub for data science for toyota. cory: as you guys do this with microsoft, how much time do you spend working with them? do they walk in and say we have this, we can tweak it for you,

or do you sit in whiteboards with a bunch of people in a room and say what do we want? mr. hicks: it is a little bit of both. we will have some of their engineers on-site. we have an idea of where we want to go with this. it really is about -- as i said earlier, making it easier for our customers, creating a new relationship with our customers, and microsoft is at the table, helping us figure out what is the best direction to go to. they are an important part of it. if the solution happens to be another technology, we go in that direction as well. cory: so, it is not just a microsoft-only solution. mr. hicks: that is right. if you have your android or your ios, you will get in your car and still have a great experience. cory: finally, as you evolve these things, how short is the time you develop electronics compared to how many years it takes to develop a new car?

mr. hicks: that is the opportunity. as you said in the earlier segment, it really is about the cloud. with the cloud, we can deliver new apps based on what the users want over the air. instead of having to wait to have your next-generation vehicle, he can change the experience tomorrow. that is what this is about --giving the consumer a new experience throughout the ownership cycle. cory: toyota north american vice president, z hicksz technology lover and hater all at once. thank you. one stock we are watching is tesla -- shares down after the copy announced sales missed their own guidance. they said they would hit 16,000 deliveries when the guidance was issued in february, but it came shy with just 14,820 cars. tesla blamed suppliers, a part shortage, and "hubris in ending -- adding too much tech to the model one/" two checkout model s delivery

growth, those are interesting numbers. on a sequential basis, delivery growth was down more than ever before -- down 28% sequentially. the biggest drop tesla has seen since the roadster stopped production. next, bill morris joins us to discuss his early investment in over. plus, alaska air takes up valuable access to california and new york thanks to a key aspect developed by sir richard branson. we will break down the virgin america deal this hour. ♪

cory: salesforce acquiring meta-mine, which trains to manic

human brain activity without explicit instructions. they will help salesforce offer capabilities to personalize customer support, marketing, and many other business processes. it is not salesforce first acquisition in ai. they spent $399 to purchase relate iq to make predictive tools that have been folded into salesforce products. emily chang said down with bill maris, and started by a few him about the current market -- conditions and how he sees things playing out. mr. maris: there is not a lot of upside in trying to pick the market, but since we are part of it, we have to understand what is happening. we have tried to avoid investment opportunities that seemed overheated, and try to

work with founders that are trying to make reasonable deals and find that investors. someone once told me you can pick your investor or you can pick your price, but you can't pick both. it is better to pick your investor in all scenarios because you want thing --them to be there when things go wrong at things always go wrong. emily: you invested at a $3 billion valuation. now does valued at $62 billion. is uber overheated? mr. maris: of course, i am completely biased -- anyone watching will say i am completely biased, and i am. you have a transformational company. when we invested, a lot of

people question what are they doing -- and we pushed all in. we put in a lot of money. it is alleged investment. we have over $300 million invested in the company, which is the size of our entire front of the time. all along, at every stage of this company and many companies like this, people question is it overpriced -- is it overpriced -- they are doing something far more remarkable than we even thought when we invested, so i do not underestimate that team and the people that work there at all. emily: things with bet --uber did get complicated because uber is interested in maps, google is interested in maps, self-driving cars. how are you navigating the relationship? mr. maris: we're trying to help them build as big, successful, as useful a company as possible. emily: now you guys compete. mr. maris: we do not compete and we are the investors. everyone wants to be in cars and maps. travis was in it before it was the head thing to be in. anytime you get companies that are the size of ube, the importancer of apple, etc., they will bump into one another emily: the last time you are on the show you pledged to hire a woman general partner.

what kind of progress have you made? mr. maris: we are not hiring a partner right now -- a general partner, but when we do that, we need to make a deliberate effort to do that. i wish there was something i could drop in water, mix, and it solves the diversity problem, but there are other elements -- most boards are made up of white men, most entrepreneurs that get funded by venture funds like ours are white men. this is a problem on several different fonts. we decided to deploy a series a amount of money, roughly $5 million, into something we had never done before, which was to invest in some other venture funds. we invested in four venture funds that are not our own. they are founded by people that are not white men, who see entrepreneurs that we would not see otherwise. emily: would you be in favor of -- i do not want to call that affirmative action -- immediate

is affirmative action -- hiring a woman that checks maybe not all of the boxes you thought needed to be checked, but some of the other boxes. but taking a rest -- emily: by the way, we do have a female general partner. i do not like to point these things out. i have seen other people give you the numbers on our team. i think there is a d in judy chu asian that goes on with -- -- de-individualization that goes on with that. emily: you have the power to change things. mr. maris: to do that. we have been looking at ourselves, trying to determine what we can do as a team. i had the team undergo unconscious training. we are all guilty of that. to try to correct those things and to start those ways -- and like i said, invest in other fund, try to meet with entrepreneurs that we wouldn't -- that wouldn't, on our radar,

necessarily. yes, we do have the power to change it. many of us have failed. we have just done a bad job of it, which is ok. it is ok to say that. it doesn't -- i would like to do better at it. cory: emily chang and bill maris. you can catch all of the "studio 1.0" broadcasting at bloomberg.com. virgin america is soaring today -- get that -- it is an outline. alaska airlines -- fish announcing they will cut alaska air to junk. earlier, "the bloomberg advantage, listen to what he had to say about the sale. >> we were approached by alaska initially in december.

we thought we had a good standalone plan. they have some ideas in terms of how a combined entity could be put together. i would say just in price they were willing to pay and the fact that we think our teammates are going to come out of this pretty well, it is bittersweet, but we did the right thing for our shareholders and our teammates. cory: let's take a deeper dive with some look on the data from the bloomberg. this is a 10-day stock chart that shows you the jump this thing god. if you look over a longer period of time, it is amazing. let me show you two things. it is not just a list of holders. it is not graphically interesting, but the vx holding has to resort percent of the stock. that is richard branson's holding company. that meant he could not hold more of the stock because the federal governments send you cannot be a foreign owner of a u.s. airline.

he is a british citizen. we call him sir. if you look at what happened in the company, dish shows not just the stock chart -- this shows not just the stock chart. green is mine. red is selling. you see very little buying and selling. a couple of board members have sold a couple of shares here and there. you can see this one right here was one shareholder -- samuel skinner, former department of transportation secretary, who is on the board there, selling 10,000 shares. insiders in this company believe in this company. they kept their shares. richard branson -- it sounded like he did not want to sell. you heard the quote from david cush. he says they did not approach him. they did not want to sell. but when the offer came in that they, they had a fiduciary responsibility to shareholders.

when you see 37% is all richard branson had -- he said i simply could not stop the sale once it was in play. do not feel too bad -- he is probably made 300 $50 million in the last week or so with personal holdings being marked up so much. it sounds like it was a sale he did not want to do, and other insiders did not want to sell it either. virgin america -- it is going to be a thing of the past if the deal is approved by shareholders and the government. apple is eyeing india's booming market. we will talk about the tech giant roadblocks to indian consumers next. and tomorrow, do not miss an excessive interview with imf chief christine lagarde. francine lacqua has that interview at 9:30 a.m., london time, 1:30 a.m. on the west coast. ♪

cory: a chinese software maker is making an investment in india, saying they will integrate into products, and the expansion of faster 4g networks in india is expected to fuel demand for digital content and smartphones. speaking of smartphones in india -- apple china to get into the booming market. they have met assistance from tight regulations, low income, and fierce resistance. join us live from hong kong is tim called. these rules in india that products be manufactured there, largely in india, makes it tough for apple, whether they want to sell new phones, and now, apparently, used phones. >> that is right. apple has this plan that they want to import secondhand phones into the india market for resale. they have to ask for permission. they are getting pushback

locally. some of it is coming from intense local interest, local smart makers -- smartphone makers in india. they are saying do not turn india into your secondhand phone trash wasteland. apple does not want to turn it into a wasteland. they just see it as a great way to introduce the iphone in the market. india is not a rich country, so by bringing in and secondhand phones, refurbished phones, they could sell a lot of devices into india and get around the problem of a high cost of a new phone. cory: i look at the back of my iphone, it says something to the affect of it is designed in california, and manufactured in china. what is india require in terms of made locally -- everything -- with that bnf -- would it be enough to reassemble the phones that are damaged in the indian market?

tim: if you want to sell a phone in the indian market, it does not have to be made in india. it can be made in china, but you will be hit with a 50% -- 15% import tariff. the new prime minister of india has introduced this make in india policy, and one of the first moves was to have the protectionist move of doubling the import tariff. foxconn makes a lot of these phones. they have set up factories. some the chinese names have decided yes, we'll go ahead and have phones made in india. that allows them to get around the tariff they will be stuck with. apple is not doing that yet. as we know, and making an iphone is -- making an iphone is more complicated later not have plans of the stage. they wanted to do the imported approach. basically, as long as you

assemble the phone in india, you can get around it. my prescription for apple to get around this problem is to have the phone pulled apart, and as we saw a few weeks ago, they have a robot called liam that can do this -- pull apart the components, shifting them in parts, and then reassemble them in india. you would not need the large factories foxconn has in china. you can do it with smaller factories. cory: they certainly want to have iphones in the hands of the indian people. bloomberg gadfly columnist, tim culpan. time to find out who is having the best -- no, the worst day ever. today, the worst day ever -- the total loser is you, and me, and the human race. a study by the white house released today cites floods, petulance, and death as the possible impact of climate change, and it goes on to

predict the increase of lime disease. three years went into the report with the stated goal of spring additional action on climate change, but yes, we all losers together in the wonderful world with the future of climate change. tomorrow on bloomberg, do not miss john kerry, 11:00 a.m. new york time, on bloomberg television and bloomberg radio. don't miss it. ♪

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