Early facebook investor roger joints me for a conversation from tech regulation to politics. We begin with the coronavirus and the outbreak spreading beyond china. In the United States, the first known case of unknown origin was reported in california. Two hours north of san francisco. The state is monitoring thousands more for signs of exposure. President trump tapped mike pence the task of overseeing the u. S. Response. Trump spoke from the white house wednesday. Pres. Trump because of all we have done, the risk to the American People remains low. We are ready to adapt and do whatever we have to. This one is different, much different. This is a flu. This is like a flu. I think the stock market will recover. This economy is very strong. Emily but the markets were not all fine, with markets pinned to the virus threats. The s p 500 and dow jones suffered big losses this week. At some point, as much as 10 . As for the tech sector and supply chains, microsoft and apple sounded the alarm. I caught up with dan ives thursday. It is a major tragedy, but our view is that we have to look especially over the past he and past 10 years being bullish, we have to look at if this impacts demand or changes dynamics for our winners. Fundamentally, when i look at names like apple and amazon, even though this is going to be a very uncertain period, in my opinion, these continue to be stocks we want to be owning. Even though you have to factor in risk in the near term. Emily facebook just canceled a conference that is three months away. You have got microsoft, apple, hp cutting their forecast. What do you think the impact is going to be in the near term . If, in the long term it is positive . Dan microsoft is a good example. Two thirds, the cloud continues to be something microsoft has kept on the table and 80 of the 70 80 of the valuation is because of that. Microsoft is going to be a victim of the supply chain, but no different than apple or any other pc player, but when i look out in 18 months, is this a name that i believe continues to believe the best cloud play over what i believe is a growth trend . Divert why i continue to view this as a scary headline. Look at the winners and you look at that list and you selectively continue to buy them during this massive volatility. You are not alone in that view. A number of analysts have rated a number of analysts still rate microsoft as a buy, but the question is how selective do you need to be . I have been telling clients on the phone all day. Our view is, you do scenarios now for apple, amazon, you pick your spots. You areselective, but continuing to own these names and buy at these levels if you believe in the fundamentals that we do. Timeour opinion, it is not to go into the bunkers, it is a time to look at your whiteboard, look at the names you want to own over the last four or five months. Stocks, youat these have in five days, six or seven months of gains wiped out. There are obviously going to be a bears, and more of the armageddon. They are not going to be buying high growth. In my opinion, this is more of a pause in the long term bull market for tech rather than the start of a darker period. Paul in the short term, i am wondering if the risks around the supply chain are fully understood. When apple was the first one to fess up and then microsoft, that is something where the streets try to get their arms around. Fundamentally, it is such an unprecedented situation where the supply chain do we start seeing normalization in march, april, may . That is how you have to put the goal posts. To some normalization starting in march, 5g super cycle remains. You have the 5g phones for apple, in december. But if you start to get into april, may, and later, thats where the supply chain impacts are going to be more pervasive and you are seeing that reflected in stocks. As we continue to go through this volatile situation. Emily dan ives of wedbush securities. Coming up, disney just got a new ceo and it is a company veteran. We hear from the new and former guards of the magic kingdom. And if you like bloomberg news, listen to us on the bloomberg app, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Emily disney named bob chapek its new ceo this week, replacing landing him one of the most coveted jobs in the industry. Replacing bob iger, who will remain chair. It comes weeks after an upbeat earnings report. Creating an air of mystery that has been talking hollywood. I spoke to the two executives bob iger and bob chapek shortly after the news came out. Its a great time to begin this transition. I was going to be leaving the company at the end of 2021. The board has been engaged in a process for quite some time. Considering who best to succeed me,. Time. In bob chapek, we have somebody who knows the company very well, but he is also somebody we know very well could not think better candidate. In terms of why now, we have recently completed the acquisition of fox and have engaged in assimilating those businesses. We deployed a brandnew strategy, our direct to consumer strategy with disney plus, hulu, and hot star. Given the fact that our asset base and our new strategy is in place, my next priority was really making sure that our creative pipeline was as vibrant and rich as possible at the company, particularly given the new strategy. In order for me to concentrate those creative pursuits and endeavors, i needed to turn over the reins to bob, to someone else, so that they could essentially free me up to do what i think should be the priority at this point. It made perfect sense and creates a really smooth transition, given the fact that i will be around to advise bob when he needs it, and bring bob into some of the business he has not been familiar with. That gives me the opportunity to spend the time really working on our creative side. Emily bob chapek, day one for you is today. This is effective immediately. Bob talked about the streaming strategy, you had two hit sequels to toy story and frozen. You have opened the star wars portion of that theme park, where do you intend to double down . Mr. Chapek i intend to double, i intend to double down on the same strategies bob has established 15 years ago that continue to serve us so well. At the core of everything, the center of our brand is creative storytelling. If the creative storytelling is right, then Everything Else is right, no matter where you put it. Whether you put it in theatrical channel, disney or the theme parks. The thing i have taken away from bob igers legacy is getting the content right. Everything else will follow suit. Emily bob, you said you will be focused on creative endeavors. Can you give us an idea of what intrigues you the most . Mr. Iger creativity abounds at the company, whether it is a Television Channel or our various movie studios, or all of the places that we create globally. There is a lot of creation outside the United States. I dont have any specific priority, but fueling the pipeline of our new direct to consumer businesses is very important to us. You know, given how large a role they will play in the future of the company. There is a lot to do. A lot of creative activity. It makes it exciting and separates his company from so separates this company from so many others in the business. Emily it is a Global Business, bob chapek, youll have to get used to being in the hot seat in answering a host of questions. The coronaviruss front and center. You have theme parks in china. Can you give us an update on the status of the parks there and what life is like for employees . Mr. Chapek we are not prepared to give an update on the impact of the coronavirus on our business. What i will say is that when you have a brand as strong as us with tremendous franchises and builtin consumer demand, we know that when we are able to reopen, we will come back better and stronger than ever. Emily bob iger, are there any jobs out there that are of interest of best interest to you . Your potential political ambitions have been speculated about very much. What else might we see you do if not at disney . Mr. Iger i have not made any decisions about what comes after disney. I will have to use my imagination. Right now, i am concentrating on priorities we have talked about. I will not take my eye off the ball until i retire at the end of 2021. Emily you are leaving at a time when the coronavirus has markets in upheaval, a very competitive election in the United States, bob iger, what is your outlook on the macroeconomic picture in 2020 . Mr. Iger again, as bob said, i am not going to comment specifically about the impacts of the coronavirus. Obviously it is very unfortunate and we feel for all of the people affected by it. Overall, we thought that the world was quite a hospitable place for our company. As bob mentioned, our stories and storytelling are enjoyed the world over. Our businesses are doing well. The longterm prospects for our brands and franchises and businesses are looking quite good. We are obviously experiencing some very, very challenging times now, whether you are looking at the stock markets or just the Global Business environment due to this virus, but we view this as a serious situation. We also know it is not permanent. This company has always shown an ability to rebound from some of the Biggest Challenges that it has faced, and this is one of them. Emily bob iger and bob chapek of disney. Coming up, the rise of and how it plus, later, can Artificial Intelligence help detect Health Threats before human doctors . That is next. This is bloomberg. Emily in politics, all eyes are on the South Carolina primary and super tuesday. The Democratic Candidates sparred in the latest debate and we saw joe biden try to hold on to his lead. So far, biden has been backed by strong support among africanamerican voters. To get perspective, paul allen and i spoke to a Political Science professor, jeannie. I think this endorsement, traditionally, is critically important. In 2008, it was instrumental in support for barack obama over hillary clinton. I know it is important for joe biden who has not been doing so well in early states. For that reason, it is critically important. Clyburn is really well respected not only on the party, but in the africanamerican circle. Looking at a state where 60 of voters are africanamerican. That said, its 2020 and we are entering this brandnew era. All of us our holding our breath to see if these types of traditional endorsements matter anymore. Looking at nevada, we saw the culinary unions. Critical of Bernie Sanders, yet many members broke ranks and voted for him anyway. Type ofot sure if these traditional endorsements matter anymore but it sure mattered a , a decade ago when he voted for barack obama. Biden hopes it will do the same for him. Emily sanders is still the front runner nationwide. Michael bloomberg, the founder of this network had a disastrous first debate. Some would say he improved in the second, but not enough. What are the chances of regaining some of the momentum he had . It is tough to come back from a difficult debate performance. He had a tough verse first debate, he did better in the second. Hes not on the ballot in South Carolina. We dont know because he is running a campaign we have never seen before. Not just the amount of money he is spending, but the fact that he is not competing in these first four states. As we get to super tuesday, this opens up big. A third of delegates are up. Next tuesday. I think that he certainly, because of the money he has and name recognition, he has a shot, but it is an uphill battle. Bernie sanders has a commanding lead over all others. He is at 45 delegates to buttigieg in second place at 25. It depends on what happens with biden in South Carolina. There are 54 delegates in south at stake, that could put biden over sanders if he gets all of them, which is unlikely. They are going to be battling it out. We will see what happens with all of these other candidates who are in this moderate lane, so to speak. Pressurely there is around them. At this point, it is a do or die moment. You either have got to perform or get out of the race and let the frontrunners battle it out. Potentially Bernie Sanders or joe biden. In terms of do or die, joe biden has long been building up to the South Carolina votes. How resounding does this need to be . Joe biden needs a strong firstplace finish. I believe for joe biden, South Carolina is it. If he doesnt come in first, i think he will sustain through to super tuesday. This is somebody who did not perform well in iowa or new hampshire. He did a bit better in nevada, but still a far distant second to Bernie Sanders. If he cannot win in a state where he is a leading, with a strong endorsement, lots of support on the ground, people are going to say, can he beat donald trump . Free democrats, that is the key question. I think this is critical for joe biden. I would also add tom steyer, who has spent so much money and time in South Carolina organizing. If tom steyer does not do well he is going to have to step away. Emily the u. S. President ial candidates continue to spend make online. Spend big online. Michael bloomberg, the founder of our Parent Company, far outspending rivals, followed by trump and tom steyer. But these numbers do not tell the full story as advertisement as the rise of a sponsored content has given loopholes in political advertising. , theke with mike schmidt founder of dovetail. Mike it is not new to me. I have seen tons of activity on sponsor content on all of the brands we work with. It is what i expected coming into the election cycle. We have been preparing for it and we have been thinking about intensely as a team at dovetail. We are a small company, so we have to be nimble and pick think about these things more intrinsically and we have to be careful about how we position ourselves in this space because we are a neutral third party. It is becoming a big Opportunity Zone for us and a big area of interest for us, we also ask ourselves what are our responsibilities as a neutral Third Party Data company and Workflow Company that treats this ecosystem equally. Emily where do you draw the line . Where should the candidates draw the line. If they are finding loopholes that are loopholes and abide by Company Policies . Mike the answer to sponsored content two reasons. One is the rising cost and Customer Acquisition on platforms like facebook and instagram and the diversity of advertising content. People want more places to advertise. At the end of the day, our strategy is to inform and educate. People are just going to do whatever makes sense for their campaign. It is hard to stop these things as a company like ours, but at the platforms like facebook, they have more responsibilities to crack down on content that is either fake, or misinformation or fake news. Specifically, there are Government Agencies that need to crack down on these issues as well. Paul regulation is a thing that comes up when discussing these matters. Do you believe there should be more, and which parts of sponsored content should it focus on . The platforms or the advertisers . Mike i think advertisers need to be held to a higher standard. If they are sending fake news or lying to customers on purpose, there needs to be more ramification for those types of customers, specifically on facebook and instagram. Whatsapp is becoming a new platform for advertisers as well. As we see more and more of these things come to fruition, we think about the responsibilities for instagram and facebook to collaborate with governments around the world. You see activity in singapore, your seeing activity in not only the u. S. With the elections. Furthermore i think zuckerberg , making his opinion in the wall street journal, it is looking to me like he is becoming more in tune with some of these regulations. I think that, over time, this is the tip of the iceberg and we will have more and more regulations as we think about the future of this particular advertising. In general, we are seeing improvements across the platform. Some people say it is not enough, some people think it is on pace to change the industry. We can always do more. I am a innovator, i have to think that way. When i am thinking about improvements to the platforms themselves, how can we change the narratives for election cycles . How can we manipulate these platforms . I want to make sure we are helping be ecosystem. At the end of the day, we are trying to educate and think about how we can be thought leaders and how can we get to the right solution because this is a tricky subject. Is there a role here for Machine Learning or ai in combating the fake news . Mike of course. Machine learning is a core piece of our pitch here at dovetale. I think about Machine Learning and Artificial Intelligence all the time. Everyone is scared about the situations we are in with Machine Learning in Artificial Intelligence. I think it is about perspective. Do you think Machine Learning and Artificial Intelligence is going to make me work harder or , do you think we will have an easy way to collaborate in the future . Deepfakes alone, sometimes i cannot tell the difference. As we look at data systems, privacy, more and more of these data systems, how can we be more educated as a society, and how can we understand the systems more . In general, people dont know how Machine Learning works or how data scraping works or how obtaining data works. Of course, data is a huge part of our business at dovetale. Workflow, data, auditing, making sure fake news and bots all work into the fold, but in general,