emily: i'm emily chang in this is bloomberg west. coming up, elon musk unveiling a bold plan to colonize mars. we will explain how he is planning to build a martian city of a million people. our exclusive interview with bob right felt and why he says unicorns are delaying their ipos. and more trouble for facebook. onered to delete all data .ermany's whatsapp users

speaking at a space summit, elon musk says he wants to build a city on mars. -- it is something we can do in our lifetimes and that you can go and is there really a way that anyone could go if they wanted to? that is really the important thing. it could taked between 40 and 100 years to create a self-sustaining civilization for as many as one million people. so how does spacex pant to get us to mars? what kind of financing would a project like this need? andessor of aeronautics astronautics scott hubbard. incubatesis -- who

space companies. scott, i will start you. do you believe we need to go to mars and why? scott: of course. i have been collecting reasons for the past 40 years. it is exploration. a he said, this could be hedge against future catastrophes. emily: do you believe we could face an extension event -- an extinction event here and we would need to go to mars to survive? scott: the dinosaur new day been come right? needed a the dinosaurs space program, right? i am more interested in the science. : i'm sure at some point, we will have a city on mars. besides elon musk and spacex,

there is a good dozen who have started on enabling technology. it makes complete sense of course. emily: the plan that must layout, do you see any -- that musk laid out, do you see any holes in it? principle,s all in plausible pieces. but a scale that no one has ever attempted before. he is talking about a rocket that is four times the thrust of the saturn 5 here in so will it scale up? who knows. but i wouldn't bet against elon musk. he has been successful. emily: why we need to get there more for explanation, a manned mission in the future. scott: i think this is extremely important and i think it would partnershipprivate and maybe an international partnership as well. i don't see this as being just

the u.s. and spacex. emily: talk to us about the funding of it. obviously, it's going to be extremely expensive. by traditional or conventional means committee costs $10 million a person to get out there. but elon musk wants to drop that to $200,000 a person. what do you think about his proposal to investors? francois: i think it is going to be a multiyear step business plan. and as we can compare that mission with the international space station's, even if at the beginning it was only making .ense for research purposes pretty soon, there will be a few people on mars. maybe will -- maybe we will find new materials are properties for large corporate's, it would make laboratoryvest in a or research center on mars.

then they could participate in the funding of the next stage. and then in 10 to 20 years when we have improved the [indiscernible] then it would be another business case for more people like us to go there. so it will take time. i would say that more in a step-by-step case. showedemily: a video at the event today detailing the plan, to the extent that they know them. did that look right to you? did you see any issues with it? elon that is what spacex does it he admitted that. so the life-support, how do you support a hundred people in the months and months to get to mars?

and then once you're there, he said you can live off the land, which i believe, but he did not show any of the equipment or necessary technologies to do this. and then there are other pieces, like on orbit refueling. that nasa hasing stated in the past. they never implemented it. a lot of engineering develop and. but the big picture comes together, i think. emily: how might you support life, even just getting there? scott: first of all, you need water. and then you need food. and as he said, the luggage and the other pieces that you carry with you. if he can truly build a vehicle this big, you can take a lot of that for your trip out. if you're going to build a civilization, you would have to cover all of the waterice ice we know about in mars into water and oxygen to breathe and to rocket fuel and so forth. i think that's feasible. and there will be an experiment in the future that nasa is when to do to show that is possible. but to this point, no one has

shown that it can be on this kind of a scale. francois, less question to you, quickly, do you believe outsourced of the hyperloop, a whole new wave of innovation, do you see this plan turning into the same thing, smaller companies out there trying to make it a reality? francois: i really believe they can be possible and it can be done the same way as it was done for the hyperloop. we see ourselves as the upward elon musk him a platform where we provide startups and innovation that will be enablers for life on mars. when you look, already we have startups with planetary resources and things i fed, deep space industry doing that. we have all the startups funded by nasa called made in space, .hat are working on plans

bigelow is another started testing right now. they have been experimenting. so yes, there are a dozen startups that are working on different streams. at some point, quicker access to life on mars for sure. emily: fascinating. i could talk to you guys about this for hours. thank you both. linkedin shares dipping on tuesday after regulators asked for more prefiling about the company's merger with microsoft. microsoft says it thinks the deal will win unconditional approval this year. one yeary marks the anniversary of the nasdaq entrepreneurial center in san francisco. bloomberg technology was there to congratulate the nasdaq. there you see our logo. coming up, i sit down with bob

griefeldlt -- bob next.

emily: the nasdaq entrepreneurial center here in san francisco is celebrating its one-year anniversary. the nonprofit organization is dedicated to providing education, resources and access for future entrepreneurs during we sat down with bob greifeld for an exclusive interview and i if unicorns should go public? bob: they need to make their own decisions. they've public-private market has been a remarkable success. if you try to stay private

longer, you still need to provide liquidity to early-stage investors and to employees. when they reach the point that they are ready to go public, we want them to list with nasdaq. we also say, when you going public, it is an important fact that you have a sure business model. we want to make sure that a -- so we want to ensure a company at any stage in its business cycle. emily: how do you see i pierced the rest of this year and into next year? first, m&a. there has been a lot them and day activity. bob: with the interest rate activity -- with the interest rate environment we have today, the amend a activity will m&a i-30 willhe mn da continue to be there. 64 good quality ipos, what is important to me, when you look the post public returns of ipos, they are outperforming the s&p 500.

you could not have said that for 2014 or 2015. when we look at our back law, we now have 116 companies in the backlog filed to go public. that's higher than we had at this time last year. i think there's good signs. in addition, we had our best ipo week of the year just last week. companies have them public, nine of them on nasdaq. it's exciting. so you feel the momentum. won most of the ipos, the tech ipos. bob: 74%, not that we are counting. you pitch too companies these days of role why they should choose nasdaq? bob: we have a unique focus on our companies. certainly, when you come public, you are facing an endless series

of horrors. we have a unique set of corporate solutions and services to go through that evolution and face the grind of being a public company. very proud obviously of our market, our market structure, how we treat for those investors in those companies. emily: your business is evolving as well. you bought three options exchanges. cboe now buying bets. competitor dole a you expect them to be? model isbusiness different from those two companies. today, we have 75% of our revenue based on non-transactional businesses. and we are a fin tech player to about 15,000 companies around the world. so those are two good transaction-focused companies. there will be synergies they can realize. but strategically doesn't change

either one of them. we love our transaction business , 20 5% of our revenue. we expect to do well in it, but it is a bit -- a different business model. the cash equity platform after the acquisition, would you be in a position to buy that? our not relative to strengths in the equity market today. we like our position in equities. like i said, we won 74% of the ipos. we have an arsenal of tools that we have that are unmatched right now. i think it's important to recognize an exchange. the transaction part of an exchange is an exact -- a policy.ion the marginal cost of doing the next trade, the next contract some of the next transaction is zero. that is the logic for why you want to put two organizations together.

you because you have one plan, to plans, and you can recognize benefit to your shareholders, to your customers. that will always be an undercurrent in the exchange world. will be front and center, but it will always be there. emily: there are often large shifts happening right now. speed bounce for high-frequency trading. had you see this evolving? bob: right now, we are proud of what we should use to the marketplace. that's a long life order. the biggest thing in exchange can do is to control the priority of who gets excluded -- gets executed first. if you put your order in for a longer period of time, we will move you to the top of the q so you are the next person getting executed. if you are faster, but not living to commit to time, then you will be lower in the priority queue. i think this has a positive impact because people can choose

to opt in and to do that. but they don't have to. is no penalty associated where there. no delay associated with it. the certainly a reward if you are able to provide liquidity to the market for a certain period of time, which is longer than others. landscapeiously, the is changing quickly. what is the nasdaq response to this? how to you -- how do you rise to the changing competition? bob:bob: on the listing side, i think it is remarkable the amount of services we provide to our companies and that directly correlates from [indiscernible] have a greatg to market open and we do a phenomenal job year. redo a phenomenal job back in new york city. but we uniquely, compared to any exchange through our customers, through the whole process of being a public company. on the transaction side, the trading of the stock, when you look at our option technology, opening closing the market, it

is the best in the industry. long life order, i think it is a major positive innovation. compared to speed bumps, it is a positive development for investors. i think that is when to help us quite dramatically. emily: what about when the unexpected happens? what internal controls you have? ? you rely too heavily on technology. quiteok has gone on to do well, but what are the internal controls you have in place when the and happens, when crashes happen? bob: that is something we live with all the time. in addition to providing liquidity for our own markets, we also are a technology provider to 90 other exchanges around the planet. so when we think about what we are doing in a given day and have we depend upon technology, we have two build tremendous rigor into how we develop, release and support our products. in every step of that product,

we are truly world-class. with technology, you are to be perfect, but you have to aspire to be perfect, but then you have to come up with remediation plans when you have a technology snafu. i think we are also world-class with that. we are pervasive and influences everything we do. emily: that was nasdaq ceo bob greifeld. spikeok benefiting from a apps. ♪

emily: u.s. regulators are claiming palantir technologies discriminate against asians. the labor department alleges they rely on a system of employee referrals.

toulators are asking a judge award lost wages and benefits of employment to the applicants. palantir denies any allegations of bias. a privacy watchdog in germany has asked facebook to stop processing data of german users on whatsapp. they also wanted to delete any data it already has. meantime, facebook may be benefiting from a spike in advertiser interesting u.k. mobile apps, helping counter concerns about clinton's decision to leave the eu steve hatch spoke about the referendum impact with caroline hyde. guest: one of the things i've -- we may that brexit not know what it means in totality, but it has meant the people i thinking a little

differently about the marketplace. marketplace within this country and the marketplace within europe, but also now beginning to say, ok, what does this global marketplace look like and how do i drive in it? caroline: are they still looking internationally as they are willing to mystically? steve: yes. the u.k. has a very strong community. 31 million people using facebook to date. the key to it is the 97% of them will be doing it on a mobile phone. it's really the mobile phone revolution that we have seen across the world that has created greater levels of kang -- greater levels of connectivity for all businesses. 4 million active advertisers on facebook globally. in fact, the uk is in the top five in terms of growth year on year. that's really just the start.

when we've looked into the data, what we have seen is that there are 300 million people that are connected to at least one british business here in the u.k.. so the opportunity to say -- to think maybe a little essa bancorp's and boundaries and more about audience in opportunity seems to be something that is really resonating. the brexitnnan anxiety that we saw, the build up, that hasn't knocked u.k.'s placement in u.k. -- in facebook at all? in terms of advertisers, given the growing level of engagement boosting on mobile with people, that is certainly something that is motivating all advertisers. in the u.k. and in most developed countries, we see people spending to a half hours , doingay on their phone different things. in fact, the mobile has added an additional two hours to the time overwe spent doing stuff

the last years, watching stuff, browsing stuff, and buying stuff. the u.k. is the most developed mobile commerce market in europe. come in the next and he five minutes, over a million pounds will be spent through mobile. the projections are that that is going to, in this country, rice to $50 billion by 2020. so the market opportunity that mobile represents in the growth of commerce, just in u.k., it's substantial. so thinking about that not just in u.k., but also overseas as well. it's the main topic of conversation at times. was steve hatch, facebook regional director of northern europe and bloomberg zone caroline hyde. former head google down with kai sit fu lee next.

you can listen on the bloomberg radio app and sirius xm. this is bloomberg. ♪

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you don't see that every day. introducing wifi pro, wifi that helps grow your business. comcast business. built for business. angie: shares of -- are flat. is among investors. the bank has a market value of $49.5 billion. more than 500 million retail customers in the most outlets of any chinese lender. hyundai shipping is being assessed and experts say it should be sold. the company is a

complete entity is preferable. toshiba has more than doubled forecast its operative to ¥70 billion. the company says profit is growing in its stores and electronics segments. a yenf that is down to that is weaker than the company's original forecast. day andews .4 hours a more than 120 countries. this is bloomberg. let's get back to the late it's on the markets. japan coming back online. juliette: equity markets when into the lunch break down one point 5%. extending losses for the afternoon session. more than half of the japanese equities listed on the overall thanc index, there is less

[indiscernible] the lossesaway in you are seeing will probably be half that. elsewhere, we are seeing some downward pressure. that puts presidential -- that -- the postpresidential debate euphoria very quickly. we are seeing the hang seng index in hong kong down .7%. we see casinos and also retail stocks looking quite good in the market. the shanghai composite is off by .3%. a little bit more upside coming in from australia. it is the market that are true reformed -- that underperformed the region yesterday. a little bit of a rebound following the big slump that we saw in the new york.

aboutand crude when of 3%. southeast asian markets looking in the bit mix at the moment. there has been some upside coming through. generally, weakness across the board for these midweek trading day. -- this midweek trading day. ♪ i am emily chang and this is bloomberg west. soon of asian ventures has raised more than $64 million in its original funding round. the firm was founded by kai fu the a driving force in chinese tech scene. joining me now here in the ceo kai fuinovation lee. that's not a small amount of money. is a coming from us a chinese investors? kai fu: it's about half u.s. and

europe and have china. comingfor the investors from the united states, for example, what are they looking to? are they looking to have a foothold in china? ? kai fu: i think they are just looking to make money. newre behind a lot of the technologies, such as autonomous vehicles, robotics, artificial intelligence. and people see us as a forefront. we like that. emily: there have been miss perceptions -- there have been some misperceptions about the technology scene. i know there is a lot of innovation happening there in its own right. what do you think is mud to be defining the chinese tech scene over the next five years? kai fu:kai fu: i think the entire china market is running in a separate stack compared to the u.s. market. google,re, facebook,

microsoft, apple, they split the mark in their own ways. with alibaba and tencent, it is split in very different ways. everything is possible. emily: what about the startups? kai fu: just like here, looking for areas where the giants don't notice and try to do something, maybe with the technology innovation, maybe in the markets that a giant thinks is too small but eventually grows big or bets on the new market, like a taunus vehicles, where the all the giants don't have a monopoly power. emily: i recently spoke with robin chan, the ceo of a covenant called operator here in the u.s. they are launching in china now. china-based ceo. his ideas that come if you would too long, it's awkward to happen. but if you go in early, you have a chance. example,t uber, for waited too long. do you think tech happenings have a chance if they go in early? robin may be an

exception because he's been to china many times. but it is a struggle. any start up should focus on one thing. the u.s. and china are by definition completely different. we would not recommend our chinese companies to think the u.s. market initially. but if they wait later, the catch-22 is that it will be too late. emily: so what your device? kai fu: -- so what's your advice? kai fu: they should invest with us. or license technology to a chinese company. if they use company -- of a u.s. -- if a u.s. company is really ahead, take a 20% share in a chinese company, maybe a startup, and give the technology to them and let them run wild with it. emily: talking little bit about the companies in your portfolio. you have 300 startups. name a couple that you find the most interesting. thefu: we have majil,

instagram of china, but it's for selfies. ohu, which is the knowledge marketplace. we have in a taunus vehicle company, one of the leaders in china. -- we have an autonomous vehicle company, one of the leaders in china. it's a very tech centric portfolio. emily: don't they make most of their money off the hardware? kai fu:kai fu: most revenue from the hardware. but most of the growth in the margin will come from the software. emily: exactly. how do they turn that into a profitable, sustainable long-term model? kai fu: the tools were given away for free. it's called beauty plus in the united states. they become a community where users become sticky. it's an area where people are finding it is interesting to get to know other people. then social networks have their own monetization around the

people who want to look beautiful. --ly: how do you see ,oeti meitu standing out were others are struggling? kai fu: it is a high-margin niche. so it will never have a kind of market share that these other guys have. but it will be highly profitable. the new phones that came out that sell more than a thousand dollars. it's completely out of stock. emily: you ran google china. you were there when google left the country. do you ever see who will a search engine in china ever again? kai fu: i think the world of google. it is a great company. it should have a project that will launch in china in the future. but the search engine is a tough one. difficult the chinese regulation and google's decision not to do censorship, but also because people are getting used to using baidu and it is hard to switch to a new

brand. emily: kai fu lee, ceo of sinovations, thank you. more people get hooked on amazon ahead of the holidays. amazon is planning on a five dollars a month music streaming service. . this is cheaper than spotify and apple music, meaning amazon will likely lose money on this one. but the e-commerce giant plans to use the service to boost sales of its voice command toice at go and telling it instantly stream a some of their choice. replacing microsoft with domestic software on thousands of computers. the move answers russian by mere putin -- president vladimir putin's call. moscow says it may expand the 600,000o as many as

computers and servers and possibly replace windows and office. . the plan poses a challenge for u.s. firms in the country's $3 billion software market. -- a rough year for european economies. but the biggest online fashion retailer is growing. we will sit down with zalando's ceo next. this is bloomberg. ♪

emily: ceo bob iger may reset the course of disney with a big deal. he is retiring and has achieved a number of milestones. but one issue escapes him, the transition to a world where mobile devices, not tv screens, dominate news and entertainment. that could be disney's interest in twitter. number reported that disney

hired advisers for a possible twitter merger. retireal could let eiger knowing that he gave disney major media advertising. online retailer is operating in 45 countries. company has survived grexit and brexit and is ready to continue expanding. >> we want to keep the positive things, the entrepreneur owes. and the speed of making, the episode -- the appetite for risk. keeping the company closed entering to transform to a sitting where this looks well with status process seeds. have you managed to

steer the story into a more successful one in 2016? john: it has been very consistent. the first six years of the wereny operating, there high operating losses because we were willing to invest into building our infrastructure and technology and terms -- and in terms of logistics and manpower. we have been able to invest quite a bit. we are still investing quite a bit. caroline, i want to dig into the market trends. how much more will you scale pass that? >> i think right now, the major focus is how we can grow even share, which could is 15 european markets. have a market size of 400

billion euros each year. us, we are approaching a market share of 1%, which is pretty far from where we think it can go. growurpose continues to market share and operate rather than to expand necessarily. i think it some point we will, but the focus right now is to grow market share. caroline: is it any reason you need to acquire within certain countries or is this purely organic? rubin: if opportunities,, we are also focused on m&a. we have been doing acquisitions companies that are connectors, that allow brands to connect to market places. these capabilities are crucial

to continue to grow very fast. the growth itself really should be mainly organic. caroline: the setting you have, as opposed to changes in europe as a whole, how is the brexit decision changing or reassessing how you go forward? rubin: our success story would not have been possible without the protection of the european union. while we think it is a pity, on the other hand, it doesn't really change our u.k. markets. the u.k. continues to be a great equal in this markets. people are [indiscernible] are even more fashion forward. we want to continue to drive in the united kingdom. caroline: in terms of economic mm and we find ourselves now, toetary policy still having throw a lot of money to the situation in terms of trying to support the economic growth, what worries you as a leader of a business? rubin: we have had many

macroeconomic, big events like lehman brothers, like greece, like the brexit, all of these financial crises can all of these elements a came along in the last eight years and they have not really kept us from growing. the fundamental trend that consumer fashion, they buy it more and more online. that is feeling our growth. that doesn't stop because we have negative interest rates are because of brexit. i think a very fundamental trend continues. technologyow is moving forward in terms of development in the eu and while berlinhere in germany, supporting that particular decision. rubin: we've benefited from a growing tech class. many companies over the course of the last year have been successfully in creating an equal system that we can benefit from. --hink we have also shapes

to be one of the big growth examples. it is challenging to acquire great talents. caroline: and if you more ipos coming from germany? become much more concerned and it has helped us to recruit and gain an understanding of our wealth partners. we have taken a letter of capital to continue to grow. i think it has really been an accelerator of our development. emily: bloomberg's caroline hyde 's rubin ritter. timing can be delicate for cisco after announcing job cuts. hiked trump threatened to

taxes on companies moving jobs overseas. men who helped bring real-time computing to wall street is taking his passion for tech to the sports arena. legs projectis next. tomorrow, bloomberg will be live add the market's most inferential summit. don't miss it. this is bloomberg. ♪

emily: the nba's sacramento kings are moving to a new home. in any ordinary stadium. the new gold and one center has over 615 miles of fiber on the cable and it's entirely powered by solar panels on the roof. the push for the most high-tech championed by the current owner of the kings.

cory johnson took a tour of the arena. we wanted to rethink the whole paradigm of an arena. we have our fingers on the pulse. security,ia, environment, you name it. arenahing plugs into the and we have real-time control on everything that happens or could happen. this has never been done before. we have the best fans in the world and they deserve nothing but the best. cory: there is this notion of future proofing of the building makes it not just room to use more bandwidth but to do different things. vivek: we have set a record in terms of how much bandwidth we have in this arena. we have 200 gigabytes coming into the arena. cory: 200 gigabytes? vivek: this could power a city.

construction on the golden one center began in october 2014, after a hard-fought fight to keep the kings and segment of. the total cost for the -- kings in secondment oh. the total cost is more than $500 million. with theson sat down ceo. vivek: i said i would have a new arena by 2017. thanks to the hard work of all the people that you see here, we will be done one year ahead of time. we are moving in. cory: why does the world need to have a great arena? there have been incremental improvement's arenas. but it seems like you're doing bigger things than a better take care and faster food there. they have had coliseum's for thousands of years, but the

design hasn't changed. the flip to the notion of an arena on its head. of you checking into the arena, the arena checks into you. it is there to service you. from the time you wake up in the mining and you decide you're going to go to a game, it will tell you had to get there, or to park, how to get your seat. it shows you that a lot you're going to is full, it says try this space. eventually, right now for our players come you don't even have to take your phone out. the arena recognizes you when you walk in and directs you to your seat during your phone because -- your seat. your phone becomes a remote control. if you think it is too hot, it will cool you down. it's not just technology. there are rights issues. showing replays on your app. the league has got their own -- the association, should say. to navigatearned

all that. we were the first to use virtual reality. before we built the arena, i had it mocked up in virtually reality. we had it sold out by having people choose their seats on virtual reality. it is the first scheme that canally gamified it, so you play games and make bets, not using money, and get the expenses that you want. sacramento,ty of smaller than new york, smaller than chicago, dallas or even san francisco, or the bay area at large, but the economics of teams in small towns, smaller towns like portland, like sacramento, seem to suggest that it is a different business, but a very good one. vivek: it is. let's not forget that california has a seventh-largest economy in the world.

we are in an area that is surrounded by farm country. napa is not far away. we don't see ourselves as being small. cory: but it's fair to say the population is less. how is the business different? we have -- like i said, we don't cater to very large corporations. we cater to smaller businesses. to adjust to the pricing and the size of the suites which are largely based on the kind of market that we have here. since i took over the team three years ago, we wrote -- we doubled our revenues. owner sentiment of kings alando -- kings owner vivek randive. the first debate between donald trump and hillary clinton july

record 800 million viewers, beating 1980 when jimmy carter faced off with ronald reagan, i tracting 80.6 million viewers. that is all for now from san francisco. this is bloomberg. ♪

♪ yousef: oil it raises some of its recent losses as opec fears to meet in algiers. saudi arabia indicates it will cooperate with iran on output. shimon perez was the last surviving link to the founders of the jewish state. also, bank of china makes a muted debut in hong ko.