why doesn't apple pay u.s. taxes on the nearly $200 billion it but perhaps the most pressing issue facing apple today is encryption. it is believed that the terrorists in last month's attacks in paris used encrypted apps to avoid surveillance. u.s. law enforcement immediately renewed its calls for apple and other companies to provide access to its customers' encrypted texts and e-mails. apple c.e.o. tim cook has refused to do so. and though we interviewed him prior to the attacks, cook has since told us that apple is cooperating with authorities to combat terrorism, but he has not changed his position on encryption. in the government, they say it's like saying, you know, you have a search warrant, but you can't unlock the trunk. >> cook: here's the situation is on your smart phone today, on your iphone-- there's likely health information, there's financial information. there are intimate conversations with your family or your co- workers. there's probably business secrets. to protect it, and the only way we kno

taxes, apple-- like many u.s. multinationals-- parks billions of dollars in overseas income in subsidiaries in countries like ireland. the practice is not illegal, but it's at the heart of a battle that has been unfolding in washington to reform the corporate tax code and bring that money home. how do you feel when you go before congress and they say you're a tax avoider? >> cook: what i told them, and what i'll tell you and... and the folks watching tonight is we pay more taxes in this country than anyone. >> rose: well, they know that. and you should because of how much money you make. >> cook: well... i don't deny that. i... we happily pay it. >> rose: but you also have more money overseas, probably, than any other american company? >> cook: we do. because, as i said before, two- thirds of our business is over >> rose: yeah, but why don't you bring that home is the question? >> cook: i'd love to bring it home. >> rose: why don't you? >> cook: because it would cost me 40% to bring it home. and i don't think that

was the apple watch. ( cheers and applause ) there is intense speculation about everything apple does, including that the watch may not be the breakout product apple had hoped. it has been on the market for eight months, but apple has not released any sales figures. you think it's a product that needs improvement? >> cook: i think all products are going to be... >> rose: i know that. of course i know that. >> cook: yeah. and i think the watch is no exception to that, is we're... we're going to continue to fine tune... >> rose: so you're disappointed in some of the things. >> cook: i'm not disappointed in it. it's every par... >> rose: but you saw room to >> cook: charlie, when we... when we launch a product, we're already working on the next one, and possibly even the next, next one. and so, yes, we always see things we can do. ( applause ) this is the future of television, coming now. >> rose: and then there is apple tv, and suggestions that apple wants to do much more in the television business... as well as speculation about apple developing a car. but tim cook is keeping that a se

you worked at apple, it feels like apple, was that ever really an option?y: we considered all the possible acquisition targets. through that, they were obviously on the list. but at the end of the day, been there, done that. google has massive compute power in the cloud and all kinds of algorithms and research around where we are headed. it is a huge part of server technology and software that we would need to be able to pull it off. emily: you continue to run nest as a semi-independent company. how has your role changed? how have the goals of nest changed since this transition? tony: more, faster. that is it. we laid out a roadmap, a two to three-year roadmap. we saw eye-to-eye on all of this stuff. larry just said go implement it as fast as you possibly can. it is like no, i'm not going to go changing it. we believe in this, go. emily: how do you think about the next new product. how do you decide what the next new product will ultimately be? tony: sure. i think that, first, we each, every day, run into frustrations. things around the home, why is it that

that means apple music, apple pay, and apple tv.ne final note here, johnny will join apple's executive team as vp's. he may not be a household name, but is he the man in charge of hardware. that's batteries, displays, chip sets. opening the apple product, and you are looking at johnny's hand where i work. john, back to you. >> all right. thank you, swrosh. a few interesting things i think in this announcement. one hiroki asai is retiring from apple. he had been in charge of a lot of the advertising and marketing communication. he is a young guy. i don't think he is quite 50 yet, so one of the things that apple is fighting here is its own success. i mean, once these folks near the top at the top of apple get these millions upon millions of dollars, they don't have to work anymore, so you want to keep them happy. you saw the issue with bob mansfield. he was running chips at one point. he decided to move on and do other things. apple kept him around for a while. it's interesting. i asked apple does phil schiller keep his perview over b

but the apple's nice and -- >> oh, wow, the apple is so soft. >> mm-hmm. and it's all done with a microwave, so you can make it in your dorm room, if you're just hanging around the house -- no time commitment, just fast and easy. >> oh, my gosh. that's amazing. >> mm-hmm. >> apple and peanut butter never tasted better. to get the recipe, visit our website. for "teen kids news," i'm christina. >> that sure looks delicious. for all of us here at "teen kids news," have a great week.

it's been an incredible year for apple. >> reporter: tim cook has been running apple for the past four years. but for most of the 15 years before that -- >> we had some real revolutionary products. >> reporter: the stage belonged to apple's late co-founder steve jobs. >> we're going to make history together today. the computer from a cumbersome machine into perhaps the most personal and sleek consumer product of all-time. the iphone is 12,000 times more powerful than the original mcintosh and next year it will have sold 1 billion units. following steve jobs was one of the most challenging successions imaginable. a daunting responsible for the man he hand picked, tim cook. >> i have never met anyone on the face of the earth like him before. >> reporter: never met anyone on the face of the earth like him >> no, not one person. >> reporter: not one? >> who had this incredible and canny ability to see around the corner, who had this relentless, driving force for perfection. >> reporter: the spirit of steve jobs hovers over apple. he was a founder like no other. creating products people wan

of course, also apple, panasonic. it brings us to the apple car. were one of the first people to suggest that apple take this project on. carsbegan talking about three years ago as an interesting topic for technology analysts. as the car business is due for a recognizes, everyone this. as far as the leadership role, apple is in a wonderful position. manufacturing scale, knowledge of integration systems. they are able to put their hands around the whole problem. i am very bullish on an apple car. as far as when, i think the more important question is how many rather than when. how many units are they willing to ship. i think they need to be targeting a million units a year. we have to put that into perspective. tesla is at 55,000 units after how many years? i am thinking apple can get to one million units. emily: tesla makes cars. and the battery. and it has a huge head start. can apple really take on tesla? can apple make a car that much better than the competition? cars.borghini makes good but the only make 3000 a year. it is easy to make great su

apple changes channels.he company reportedly pulling the plug on plans for a live tv service, ramping up efforts to develop apps for tb providers. -- tv providers. if you work at a airbnb, they are shopping -- topping a new list of best places to work. lead. to the another change of course at yahoo!. the legacy oracle announced it is shelving plans to spin off the stake in alibaba, instead focusing on the possible spinoff of its core business and its stake in yahoo! japan into a separate, publicly traded company. marissa mayer said the move will give investors a better sense of the value of yahoo!'s core business. ask a large portion of our market is driven by our alibaba state. a separation will provide greater spent -- transparency to make sure that business operations are accurately valued. especially as we continue to improve products and operation. there seem to be more questions than answers following the announcement, including whether the spinoff is just a precursor to an outright fail. the managing

apple, of course, among them.down slightly today. >> certainly we'll be watching that apple down, as scott just mentioned, 11% this month. we'll talk about the app market. idc estimating the global enterprise applications market will go from $153 million this year to $200 billion by 2019. which app claimed the top spot in 2015? josh lipton has the winner. >> kayla, it will come as little surprise, according to data from octa, the top enterprise app of 2015 is slack. >> they grew over 20% in our network. they call it the usain bolt of cloud apps. we think it's the trend that cloud users are loving the app and bringing their i.t. departments on board with them. >> using data from its network which includes thousands of customers, 4,000 apps, and millions of daily log-ins, octa says slack did take the gold. next in line, greenhouse, which grew 580%, followed by envoy, zapier. octa broke out which newly public cloud companies saw the greatest customer growth on its network this year. the winner there, box, which enjoy

apple seems to have beaten back all of those criticisms now that apple is back above the $100.ark, we've oom up with, well, they can't keep running for this long. i mean, could we just be wrong again about the endurance that this stock has? >> well, we could be. certainly longer term. i think there are still opportunities for them to take share. the smartphone market is maturing, as we know, and for them to continue to gain share will be increasingly difficult over time. i think one of the ongoing opportunities, which you have all talked about in the past two, it's just the overall strength of the ecosystem, and one of the additional things they can do to strengthen that, is we're still excited about the tv opportunity, if and when that develops. the problem is that continues to get pushed off. >> we want to give the santelli exchange and rick, good morning, rick. >> good morning, carl. well, i think for this segment we're going to call it it was released yesterday late after the markets closed. i found it very fascinating. keeping track of the selling of treasuries and various

big bite for apple. man on the street says the company should be shopping for a big gift this holiday season.

but the apple's nice and -- >> oh, wow, the apple is so soft. >> mm-hmm. and it's all done with a microwave, so you can make it in your dorm room, if you're just hanging around the house -- no time commitment, just fast and easy. >> oh, my gosh. that's amazing. >> mm-hmm. tasted better. to get the recipe, visit our website. for "teen kids news," i'm christina. >> that sure looks delicious. for all of us here at "teen kids news," have a great week. >> write to us at... the following organizations have provided funding for this into the outdoors television series. (stefan) did you know that wisconsin farmers are growing an amazing crop that has the ability to both feed and fuel the world? it might sound kind of "corny", but it's true! plus, those kernels are grown right here in the badger state, and they're packed full not of only health benefits, but fuel as well. you'll see how corn is doing big things! come on and head into the outdoors!

t would see apple pay teveated been -- on the iphone, ipad and apple watch. the market so far -- hong kong and china are currently closed for lunch but here's how they're trading in the morning session right now. this is a picture of singapore, tokyo, and mumbai. the nikkei surging after the b.o.j.'s decision. back in hoff -- half an hour. time now for bloomberg west. emily: i am emily chang, and you are watching "bloomberg west." coming up, apple polishes up ts core management team. cook adding a new coo. the cross-border talent right, silicon valley looks to canada for the best and brightest in artificial intelligence. show time's secret weapon. how the cia helped make "homeland" one of the most timely and popular shows on television. apple making big management moves today, naming jeff williams as its new chief operating officer. it's a job that hasn't been filled since tim cook left the position to become ceo four years ago. williams has worked at apple for 17 years and supervise the launch of the apple watch. as far as today's executive shuffle, johnn

in the same way that apple would be a blend of art and science.illion, is that on track and are you fairly valued for a food tech company? >> that was a past valuation. emily: so it is higher? >> fairly significantly. compass group is the biggest food service company, the expansion of products and walmart, the hiring of an executive team. we started out in a 300 square-foot apartment and now we have a 90,000 square foot facility with a team of rock stars doing a lot of good. more important than our valuation, we will be judged on a few things. do we follow the common truth of making products that tastes better, less expensive, and better for people and spread them globally? it's focusing on that that will enable us to do what we are going to do. emily: the hampton creek ceo, who told me they will begin offering eggless pancakes and salad dressing in the next 60 days. coming up, retailers are expecting a last-minute rush for christmas orders. will their shipping partners be ready? more coming up next on "bloomberg west." ♪ emily: what can we expect

apple denies that it is avoiding paying tax. >>> apple structures itself so it pays some of its tax incountries where rates are low. 60% of apple's profits are managed in ireland where it's european headquarters are located. ireland has one of the lowest level of corporation tax in the e.u. according to an u.s. nat report apple used such arrangement toss avoid paying $9 billion in u.s. taxes in just one year. tim cook rejects any notion that his company is acting illegally and says it pays every tax dollar owed. >>> so could this have an impact on apple's brand? joining us live from new york to discuss this dean critchfield. perceived tax dodging is an issue right now. does this deliver a blow to apple's brand to not have declared all of their earnings? >> it's huma--it's a huge deal and it does effect apple's glossy brand. it's not just a consumer brand, it's a trade brand, community brand, employ brand and environment and society brand. apple enjoys humongous power as a brand. but that includes responsibilities, that means paying fair taxes in the countries you do business in. >> in

emily: adam, any effect on apple? >> apple, not really.do own a lot of government securities and that sort of thing as part of the cash that they have but i don't see this having a big impact materially on their business, no. emily: any startups in particular you think might feel it most? >> yeah. ats -- it's the unicorns. so many have been born recently. can he pending on who you ask there's anywhere between 120 and 150 companies valued at $1 billion or more and at least 50 approximate became unecorns in the last year. companies that investors think are overvalued are those i think are going to be hit the hardest. emily: we'll be watching. ellen hewitt, thank you for joining us. coming up, we will get a status update on yahoo's most expensive acquisition. and if you like bloomberg news, you can now listen to us on the radio on the app, bloombergdom and on sirius west. ♪ emily: with all the pressure mounting on yo ooh -- yahoo and c.e.o. marase meyer, we thought we would like a look at her biggest absigs. tumbler. it seems like they have d

apple is a much more mature company.ou really can't compare it to netflix and say which one has brighter prospects for net year in terms of earnings growth, but apple has a lot else going for it. namely the ability to return ocean's worth of cash to shareholders. tons of stability and stalled user base that is the envy of the world. quite frankly, an amazing position to branch out into new markets, which may take years, but cars, televisions, et cetera. it's okay that the stock did nothing this year. also did nothing in 2013 before doubling. >> this goes back to the conversation we've had with analysts in the past. tony among them. are apple's best days behind it? >> no. but if we knew that this was going to be a year in which, judge, we knew about the watch, we haut that they might have tv. it's still just that little box that it's been for the last several years. the phone was just a minor wrup grade. even if there's things like live with the pictures and so forth. it wasn't enough to get the upgrade cycle going. if yo

the earth but also to apple music.we'll be back in two. >>> welcome back to the show. apple has come quite a long way from when it was essentially giving taylor swift the cold shoulder announcing a major partnership with taylor swift. let's head out to landon dowdy with all the details. >> good morning. apple has won the exclusive deal with taylor swift for the world tour. she celebrated her 26-year-old birthday. she tweeted a trailer and said, thank you so much for all of the birthday wishes. i have a little surprise for you. the video will air on december 20th. she says an interview about the video will be on beats 1. apple is also using taylor swift as a marketing tool and will be able to use her name and likeness in stores where it will also have taylor swift branded itunes cards on sale. the deal is between apple and swift herself. apple music was launched in june as apple's attempt to carry its dominance of digital music into music streaming. in october ceo tim cook said apple music had more than 6.5 million paid

careful -- the apples are really hot. now, our next step -- we're gonna add the peanut butter to the apple bowl, which is one of world. >> mine too. >> so we've got our organic peanut butter here. >> okay. >> we're just gonna scoop some of that and add a little layer to the bottom before we put in our oatmeal, so right in this indentation. >> okay, so, just to layer the very bottom part. >> right. it just gives it, you know, that nice little flavor that you want, and plus it adds a little bit of protein for your breakfast, because a well-balanced breakfast is one >> you need the protein to keep you going all day. >> so this has got our protein. we got our peanut butter in there, and now we just need to wait for our oatmeal to finish. >> awesome. i'm so excited. >> so, our oatmeal is done. i'm just gonna take it out with our oven mitt. and we'll be ready. we're going to put this into the apple bowl. this is gonna be our filling. >> okay. >> we're just gonna scoop it right in. >> oh, wow. that works so well. >> yeah, it jus

whates that cannibalize apple is trying to do? >> apple does no books. when they came out in 2010 with the ipad notebooks were down for about three years. tablet sales of slow down. they're hoping to revive the growth. it started about september and october. we're talking about probably 45 million unit. like they can also be a winner when it comes the apple watch. >> apple watches are number one pick of the year. this is the first time we did not have iphone on top i. areon't think wearable mature enough to be on people youping list, slip me show with an apple logic income for my iphone right here area that >> that sounds very ominous. place your previous story talk about the star wars movie area this does play music and check the messages. all the calendars. works well. now. qantas makes it right >> appleigh makes wants to. it will release that second half next year. wearable seven around for several years. that's quite boring. you can see i have two wearables, the new wearables can measure your heart be. with the apple wants to the had to do more than

and operating system back in to apple. would look at him like he was nuts. what ceo of apple would evergreen you back and keep their job? of course, that's exactly what happened. he came back, and boom. he was possessed. i think he had the mass market appeal of the products that apple has. everyone knows he has fascination with design, but what fascinates me is that at no point do i recall him stating a strategy. it was more like, this is crap and this is beautiful. more specifically, elon musk as well, which i came to learn, has this visceral fascination with imperfection. emily: tell me about your relationship with elon. he went into debt with tesla, writing checks, to make payroll, and the headlines say that you saved him. steve: he was doing just fine. we first met in 1996, when he first came to california, pitching his first start up. the relationship -- seeing him develop these companies was fascinating. in december of 2008, he saves tesla single-handedly. he went to personal debts, to invest in tesla when no one els

apple pays every tax dollar we >> reporter: tim cook has spent much of the last decade expanding apple's reach around the world nowhere more than in china. >> thank you. in october, cook made his ninth trip there since becoming ceo four years ago. in the last year apple sales in china have doubled. >> will there be at some point in the near future a bigger market than the united states? >> yes. i am as certain as i can be of that. that. >> the numbers tell us that, and not just the number of people, but the numbers of people moving into the middle class, that for a consumer company is the thing that really begins to grow the market in a big way. >> and most americans would be surprised to know that nearly manufactured by one million chinese workers in the factories of apple factories including fox yet tim cook insist that china's primary reason for manufacturing it? >> it's skill. >> reporter: skill? >> they have more skills than american works? >> no. >> let me be clear is, china put an enormous focus on call, you and i would call vocational kind of skills. the u.s., over time, began to

williams has worked at apple for 17 years and supervise the launch of the apple watch.far as today's executive shuffle, johnny sergio was promoted to senior vice president for hardware technology. phil shiller will take on andership of the app store, tour myra and will join apple as vice president of marketing communications. me now to discuss, bloomberg's head of global technology, brad stone, and with us in new york, daniel ive. brad, you interviewed jeff williams last year. who is he? calls him timy cook's tim cook. that is a huge compliment. he is the guy at apple getting things done. he has historically been in control of the supply chain. a great illustration of what he does occurred last year. the apple watch project existed inside johnny ive's studio for years. in 2013, tim put jeff williams in charge of the watch project, and it became a reality. emily: i pulled a quote from use -- your story where you say "he's an uncanny cook clone." from dukeave mba's university and spent early years of their careers at ibm. daniel, what do you make of this promotion of jeff

emily: is apple protecting criminals? is apple protecting potential terrorists?m: i don't think it's that simple. it's a new dynamic we are seeing , a company of apple's size and influences at the center of this debate because they have the power, they hold the cards and because they don't see it as this cut and dry, you are with us or against us sort of thing, them bending on this and i think it is too simplistic. emily: just laying devil's advocate. onlyis tax issue, is the time i've seen tim cook loses cool a little bit. take a listen to what he said about this tax issue. charlie: here's what they have concluded -- apple is in a sophisticated scheme to pay no corporate taxes on revenues held over skis -- overseas. tim: that is total political crap. there's no truth behind it. emily: have you ever heard him say crap? adam: because of their prominence, they are in the headlines. a lot of companies are doing this and apple generates a lot revenue overseas and they have a subsidiary and ireland were taxes are close to nothing. so apple is in a position where they