is it the german company's business model which is replicating u.s. websites like airbnb and pinterest that has investors concerned? it has been a magical one for disney and bob iger as the chairman and ceo. now, it is poised to continue as iger continues his retirement. he was given a two-year contract to remain on the job until 2018 which will give time for disney to pick a chief executive officer. annual revenue has grown from $32 billion to $45 billion because of properties like espn, hit movies like "frozen." >> as much time of his as they can get, the better for the company. of course, he has a great bench under him. i am pretty bullish on this company. >> there's been so much talk about who would replace him, it is really down to two people, two very high-ranking disney executives. does this mean they were not up to the job? >> why certainly i don't think it means that. one of them i know, the other one i have admired. i think that everyone that has worked with and would say that they are executives. >> i wish i was in half the shape as he was. >> i wonder if they just could not make a decision and realized that they needed to remain bob iger needed to remain, what do you think his greatest incompetence have been and what were his is challenges? >> his accomplishments are many including the kind of organization that you put together after he took over. his acquisitions have been phenomenal. pixar, lucas, marvel. these are amazing properties. he has completely transformed disney. it is not mommies disney. it is young men, young women, everybody. digital transition is hard for every traditional media company and they are trying a lot of different things. i think they have a great future. >> the thing that stands up to me is what happened over the course of the technological changes forced on disney, both changes in the cable business, the death of the dvd business, that was so important to them when he took over the company, and the way that he has really managed that. are there lessons to be learned for other companies here? >> well, every company has had a different set of challenges in terms of the networks and the degree to which they have been involved in distribution and the capital load. the big lesson to be learned from bob iger, it is an old general election lesson is, hire great people and ask them in a big way and be there to empower your company and have a vision. i think, for instance, i was just over in china and what they are doing in china is very impressive. the entire middle-class in china is twice the size of the entire united states of america. i think that iger's international vision, his attempts at international markets. >> who stand to take over? even the board cannot pick. >> well, they are both super impressive man. i'm not an expert on jay rasulo. you never know. there are four or five other good guys. there is a handful of other people you would look to. one thing we can be sure about will be thoughtful. you will not be saying this out of abc. >> the drama is pretty interesting. there was a lot of drama in years past. what is it about iger that removed that thing which is always attached to hollywood? >> i think he is a mature man, he is a self actualized man. he has a great family. i am not a friend of bob iger's. i think he is got it all together. >> what is the likelihood that this is extended again? >> well, he is in great shape. this certainly means he will not be running for governor or senator or president in the next two years. >> thank you for being a good sport. mike morehouse from l.a. he's the cofounder of microsoft, he is one of the wealthiest people on the planet. what is he spending his time and money on? he sits down exclusively with bloomberg to share all of the details. >> this is "bloomberg west." bill gates is well-known for his philanthropic work. his latest cause, digital payments for the poor. erik schatzker sat down with the software mogul, who gave his exclusive interview and he began by asking gates why banking is important for those living in poverty. >> now we are involved in trying to get a very efficient digital payment structure set up for all of the folks in the world to get financial products that work for them. >> what are you doing? >> you should be able to send money to your relatives, you should be able to track the money that is coming in, set aside money to buy seeds for next year. there are countries where this is beginning to take off. this might be the last country to expect, up in somaliland, almost half of the gdp is done digitally. >> i don't need to tell you that the poor have been unbanked since there have been thanks. >> they put currency under their mattress, cows, gold. they are getting cell phones. the capability of identifying who is using the cell phones. people will have help and lots of innovative products competing on top of the digital currency platform. >> currency, digital money helps to increase access to financial service as the same time as it lowers the cost of delivery, why is philanthropy needed? >> philanthropies should be here to trap this. there are a lot of regulations in this area and understanding how they can make the cost of remittances where you are sending money back to your family and your country of origin, how, right now that has about a 5% overhead on it. we think we have a role to make sure, particularly for the smaller transactions, the regulations don't impose those very high cost. once this gets going, then we will step up to the applications and say, how does this application help the mother make sure the money is focused on the kids, how does it help them stay in school? >> some of what you just described, they needed to move money from place to place, the cost of doing so, the overhead, as you put it, makes me think, believe it or not of bitcoin, because some people have said that bitcoin is the answer to those problems. are you a believer? >> bitcoin shows how cheap it can be. bitcoin is better than currency. it can get pretty convenient. the customers we are talking about aren't trying to be anonymous. they are trying to be known. the bitcoin technology, you can add to it or build a similar technology. this is nothing to do. >> what are they using to solve the problems you are interested in? >> the mobile companies have been fantastic. in some countries it is a start up company that is paying. the be cap offering comes across any phone. they have regulations for a product that we think will be very pervasive. if you want to put in like electricity in a city, collecting the bills is why the understanding of infrastructure in these areas is a real thing holding back the economy. >> you mentioned banks, the legacy institutions, the most part, banks, credit card companies, payment processors, friend or foe? >> many of them want to have these additional customers but they have to embrace the idea that the fees are going to be a lot lower. they have to find a way concerning these new customers. that means they will not be coming in and they can charge a higher fee when you actually want to cash out. it is a peer digital transaction, then you should be paying less than 1% to move that money from you to a merchant or from you to a friend even with meeting all of the regulatory requirements. >> erik schatzker with bill gates. up next, part two of our exclusive interview with the microsoft cofounder. >> welcome back. this is "bloomberg west." we just heard from bill gates about digital payment revolution. what does he make of apple pay? erik schatzker sat down with him and asked him just that. >> apple pay is a great example of how a cell phone that identifies its user in a pretty strong way lets you make a transaction that should be very very inexpensive. the fact that in any application i can buy something, that is fantastic. i can do that transaction and you will be quite sure about who it is on the other end. whether it is apple or google or microsoft, you will see this payment capability get built-in, that is built on industry-standard protocols and these companies have all participated in getting those going. apple will help make sure it gets to critical mass for all of the devices. >> have you considered asking tim cook to help you with what you are doing? >> no, the kind of a basic things underneath are not what apple is doing. apple will take anybody they are signing up for the payment instrument. they are not involved in driving the efficiency for super low amounts of money. when we get these things in other countries, having interoperability for people on their devices would be worth doing. >> you were talking about wallet pcs and digital money 20 years ago, how come microsoft hasn't into this market already? >> well, microsoft has a lot of the banks using their technology to do this type of thing. in the mobile devices, the idea that a payment capability and storing the card, that is going to be there on all of the different platforms. the divisions, we have got microsoft had a really good vision in this, my time on this area is all foundation. >> you were advising the new ceo on technology and strategy, should microsoft the a player in this business the way that apple has become a player now and google as its own digital wallet product and paypal is being spun off from ebay. >> certainly microsoft should do as well or better. as all the things that microsoft needs to do in terms of making people better in their work, helping them communicate, it is a long list of opportunities that microsoft has to inundate and taking office and making it dramatically better would be high on the list. that is what are the things i'm trying to make sure they move fast on. >> are they moving fast enough? >> i'm very happy. i see a real sense of energy. there is a lot of opportunity. if there's something at the company needs a leader on, they need to change that. >> you have been outspoken on ebola. we last heard from you on the subject before the patient was diagnosed in dallas. what do you think now? >> we do have an ongoing tragedy and it is really awful. there are 22 million people in these countries and we need to get this under control because not only are people dying of ebola, the health systems are shut down. all of the other disease, measles, malaria, more deaths taking place. we need to make sure it doesn't spread to other countries. if you have a good primary health care system, you should be able to handle that. the fact that this dallas patient was identified, i feel confident that the cbc is on top of that. i wish every country had a help system like that. there are parts of africa that don't, we are helping them to build up the capacity. we help nigeria and there was a piece that went up there. all of the contacts have been traced. right now, there is no ebola in nigeria. the u.s. government is picking up on this. we should have had better primary health care systems. >> that is a very hopeful perspective. what if people don't see it your way, what if panic takes over? >> if the u.s. government didn't have the cdc, the department of defense, were not working with other countries to get volunteers to come in, then the treatment capacity would not get to the point where people are able to come in and be treated and not infect other people. without this leadership on this, you could see large numbers of people not just in these countries but a lot of spreads. this is a big challenge. i think our tools, response, generosity is going to be up to the challenge even though the death toll will be quite significant. >> bloomberg's erik schatzker earlier today with bill gates. i sit down with the so-called godfather of artificial intelligence, how he founded the moonshot laboratory, google asked. ♪ >> you are watching "bloomberg west." hackers might have broken into celebrity accounts on apple's icloud service but it is google that is being threatened with a $100 million lawsuit. celebrity lawyer marty singer accuses google executives of "blatantly unethical behavior for blatantly refusing to taking down the nude images." google responded, saying they removed tens of thousands of pictures within hours of the request and closed hundreds of accounts. the internet is used for many good things -- stealing private photos isn't one of them. the largest german ipo since 2007, rocket internet made its name cloning businesses from amazon the groupon, but it could not clone the success of alibaba's recent ipo. instead, shares of rocket fell in their trading debut. we sat down with a former rocket employee. i asked him about the market reaction. >> maybe there is concern about their growth in emerging market, they have cited a lot of new companies in. play.his is a long-term you will take time. especially in these markets where we have to educate people to start going online. >> what impressed you, and what did not? institutions is quite remarkable. been able to do things in one year that other companies would take four or five years. the speed of how they expand. proven business models to other business countries -- business models to other countries. >> this is a company criticized for copying other companies around the world. is that a fair criticism, or are they more innovative than we give them credit for? >> that is a fair criticism. the reality is rocket copies already successful, proven online business models and take it to countries where they don't exist. this is the core of their business. they can do that because they are extremely good at executing and because a lot of u.s. startups they copied tend to ignore the other 6 billion people in the world who might also want to buy shoes online or order food online. this is the core of what they do. also, integration happens on different levels. when you start in different countries, you have obstacles. you need to be very innovative to handle those obstacles. you don't have a manual for that. i think that rocket is very good at innovation at that level. bute not the initial idea, ideas are a dime a dozen. >> to the execution -- what are they like? what is it like to be in the room with them? it seems they have a certain type of drive. >> they are very intense. rocket internet is the driving -- he is the guy who runs most of the ventures, and he is a very intense guy to work with, very logical, but he will push for everyone to perform at their best, and he will keep going until there is no more shoes to sell. when that happens, he will ask you to call the government to reduce taxes so people can buy more shoes. he is that kind of guy. >> the company you found it now, you got support from y combi nator. how is it different from rocket? >> they are very much different. they're all about the product, about delivering something that people want and creating something new. y combinator would never dream of copying an already existing model. it is a completely different approach. i would say they know that in order to make those ideas happen, you need to be able to build the company and this is where i think that rocket is a very good school to go to for that. while it doesn't have the new idea to start a company. >> they are not dopes. uptend to look, if it goes afterwards, it is successful, but that means money was left on the table. will they take money as much as possible? maybe they intend to have a high-priced ipo? whatever happened afterwards was not as important as raising the money? >> it is the strategy for them to raise as much as possible to continue to build, new companies and also run the existing companies. it is part of a bigger play where all of these companies, rocket will be one big network that enables them to launch new companies very fast and we have an advantage compared to amazon or southwestern bell, may be -- and the other ones that might be going there one day. >> they have said they want to transform the company from more of an incubator to an operating company. how do you see that transformation happening, can they do it? >> rocket internet is kind of an operator today. it is the incubator in the sense that it starts the companies and it brings in people to operate those companies. i think we will see maybe more companies where they go and expand the company's to the rest of the world, as we saw with groupon. but rocket internet is more of an operator than an incubator. >> the former rocket internet executive. google x cofounder sebastian arun has his eye on fixing tough problem, education, with his company udacity. here is my sneak peek at the interview with the godfather of artificial intelligence. >> how did they get you to come to google? >> i really wanted to explore what it meant to live -- work in silicon valley. i founded a team that basically built a technology. we joined google. >> at what point did they say, we want to do self driving cars and you know something about that? >> larry said, it is time to do something courageous. a moonshot. he had to convince me. can drivehe car itself. that is hardware. i said, i know it is hard. larry said, well, give it a try. don't blame me for screwing up. >> you helped found google x. the moonshot factory. how did that come about? >> i drank the kool-aid. i was at the point, just do it and see what happens. eric ared larry and kind of the same personalities. so they said yes. i came up with this name google x. one of the first projects -- we launched our first prototype, it was two kilograms. it was a backpack. and then we strap a cell phone to the glasses. my nose would get crushed. we were running around with your cell phone. it took a whole bunch of iterations to make something that you can actually wear in normal life. >> so many other projects. project loon, an effort to connect the world via balloons that float around. >> >> another one of these crazy moonshots that you have to be kind of a believer to even attempt it. just by sheer thinking about it, the idea came up that you could launch balloons, satellite-like equipment. the downside is they are exposed to wind. >> what is the potential? >> to build an entire internet that is into the air. balloons over us with very low cost providing unprecedented bandwidth and coverage to places that would never get coverage today, like central africa or the open ocean. the vision is to bring the internet everywhere. level playing field so everyone in the world has a chance. --facebook is trying to connect the world in different ways. who wins, google or facebook? >> i would never comments. >> what about the medical contact lenses? >> turns out they are big enough to hold a little array for receiving energy, putting a sensor on. it is actually very feasible. we built in contacts lenses that can measure your glucose level. >> what is a brainstorming session inside google x like? >> every time i am around the funders -- founders, i feel dam. -- dumb. it takes a thick skin. ♪ ♪ >> i'm emily chang, and this is "bloomberg west." this is the week that goldman sachs hosted a clean energy ecosystem summit bringing together industry leaders to tackle challenges facing the clean and renewable market. but with all of the hype, have the companies lived up to it? joining me to discuss goldman renewablesal head of stewart burns. clean tech had a lot of promise earlier in the decade. have things changed? >> if you look at any new industry, it goes through early enthusiasm, then rejection, and what i call early inning volatility, and finally acceptance. the internet went through the same phase. 1999-2000, stocks went up to her medically. they fell over the next couple of years, went sideways for a couple of years. nobody doubts their success today. our industry is relatively new. back to 2006 or 2007. it went through the first couple, early enthusiasm, rejection, certainly a lot of volatility as there were , but the companies that have come through the other side have performed extraordinarily well. >> venture capitalists have invested heavily and were criticized. will they be vindicated? will clean tech have its moment? >> they already have. if you look at their portfolios and some of the successes out of the portfolios, there have been tremendous successes and terrific returns, of course there have been failures as well but that is the nature of venture capital. that's the nature of capitalism. you hope to have one out of 10 companies that have a return. that pays for the others that don't make it. >> you cannot talk about specific companies but what about trends? what are you most optimistic about? what kinds of companies? >> there are a number of sectors that are doing very very well. let's look at electric vehicles, for example. just a few years ago, a national agency predicted that there would only be 2000 electric vehicles on the road by the year 2035. we have blown through that materially already. there are 20 different brands that you can buy, does anyone think that we will have millions on the road by 2035 when today 15 million cars are sold every day? that is an area that has done well. distributed generation is another. >> what is that? >> solar on rooftops can be on your house, office, warehouse. on-site generation of energy. a few years ago another national , agency said they would just be solar produced by the year 2020. well, companies are doing that today. individual companies are doing that today. what we see is that people's predictions of most of these sectors have been wildly low and they are exceeding expectations. >> how big of a priority is cleantech? how much are you investing? >> it is a very large priority. it goes back many years. in 2005, we made what we thought was a pretty bold prediction to invest or finance a billion dollars over the past 10 years. well, we blew through that just one year later and within five years we had invested or finance $23 billion. two years ago, we made a new target, we said we're going to invest or finance people thought $40 billion. we would never meet that target. here we are, two years later and we are already $20 billion into that new target. we have an environmental markets group at goldman sachs which is focused on this. we created a dedicated group within banking that i lead called cleantech and renewables group. everyone else in the sector was firing their teams or disbanding their group, we doubled down and we hired more people internally, from the outside, and we went after it aggressively because we knew this is going to be a large market opportunity and we were right. >> the global head of clean technology and renewables at goldman sachs, we will see if the moment for clean tech happens or continues. however you want to look at it. thank you for joining us. >> let's get a check on stories making headlines with mark crumpton in new york. what else is going on in the world? >> more than 80 people in dallas are being monitored for symptoms of ebola. they came into contact with ebola patient thomas duncan as well as others can headmanned -- duncan had met. four of his family members have also been ordered to remain at home until at least october 19. the new york city commuters could face years of train delays into manhattan. amtrak plans to start remodeling two of its four east river tunnels within the next year due to repairs needed. from hurricane sandy. amtrak said a permanent fix is needed for the hudson river tunnels, although work cannot start there for about a decade. directv has renewed the rights to carry the nfl sunday ticket package and also stream it online. the eight-year deal will cost directv $1.5 billion according to a person with knowledge of the matter. at&t, whose purchase of directv is pending, had a chance to walk away from the deal if the contract was not renewed. >> intel has the latest in tree -- entry into the tech race to your wrist. we will get a look at the peak watch. ♪ >> welcome back to "bloomberg west." intel is unveiling the latest entry in the wearables race with the release of the peak watch. last march, they bought the maker basis. , it goes on sale next month for $199. cory johnson recently spoke with intel's vice president about the device. he started by asking about why intel bought basis. >> the technology is phenomenal. i think it is the best in class. when you look at the fitness trackers, this is the one that actually works and gives you the proper results. >> you have a new product. you tell me what it is. >> this is the basis peak, our second generation device. it is better all the way around. the first one was good. this one is thinner, it is made of aluminum and it has gorilla glass on top and a touchscreen, better sensors. essentially it is the first generation of steroids. this does everything the first one did, but now you can wear it swimming. it is waterproof to five atmospheres. it is just a better product. >> i'm a big fitness band guy. i've got my jawbone, the company has had a lot of issues with a lot of returns. i continue to love the product, but this is about the sixth one i've had in the last year. i also wear a heart rate wonder -- monitor when i run. but i can't wear it when i swim. so, it sounds like you have solved a lot of this. this must be light. >> this is the light that shines through your skin and figures out what your heart rate is. you don't have to wear the chest trap. you wear this, not only while you're exercising, also while you are sleeping. you could wear this for about four days. the average battery life between charges. it tells you what your sleep habits are, it tells you what your exercise habits are, it is one device that does many things. >> i get it from a hardware perspective, but fundamentally i don't care about people, i care about business. talk to me about the technology and the business behind it. >> the technology behind here, there are lots of geeky terms for it. one of those you hear is sensor fusion. basically, these really smart people have figured out how to take the sensors inside of the product and figure out what your body is doing based on what the sensors tell it. it is easy to have a little thing on your wrist when you shake it tells you how many steps you took. i had one of those earlier devices. when i drive my car to the city it is so tight it told me 1000 steps. >> i went horseback riding with the up. i was very fit that day. [laughter] >> you will not be able to fool the peak. the science behind it is very good. we bought the company not just for the product but i can take that and build it into other products and license it to other people. we would like to get our technology into as many wearable markets as we can. >> is it an intel chip? >> well, no. it is intel algorithms and software. the next generation might see a chip. we are more than just a chip company. we are a cloud services company. this is all about the experience, what the device does. >> the business behind this, how big is the market? how, you know, is this just about displacing others or is there infinite growth in this market? not everyone is interested in fitness. everyone wants to be a little bit more fit but there is a anal-retentiveness that only a few of us are actually interested in. >> i think the market is big. there are a lot of people that like to see how their daily activities affect their sleep and how to make themselves feel better. i wore this and i drank a red bull before i wanted to go to bed. my heart rate went up. quick he needed a watch to tell you not to drink a red bull? >> sure enough, your body behaves like you expected it to. i believe the fitness space is a very big space and we are just getting to the beginning of this market. in terms of connected devices the pundits say there will be 50 , billion devices connected to the internet by 2020. if a small faction are wearables, it would be a huge market. we think this is fundamentally a big market. >> intel vice president mike bell. it is time for the bwest byte where we focus on the number that tells a whole lot. what do you got? >> how about four? that is the number of adam sandler movies that netflix has to develop and broadcast only on netflix with happy madison productions. data thathey have says people on netflix watch adam sandler movies and watch them over and over again. >> i love adam sandler. the last few movies haven't been such a hit. i'm just saying. >> adam has done wonderful things. i'm a big fan. >> thank you all for watching this edition of the show. don't miss studio 1.0 tonight. ♪ >> he invented the self driving car, is considered the godfather of artificial intelligence. he cofounded google x, broadband balloons to connect to the internet through the stratosphere. now, sebastian thrun is onto his greatest ambition yet, democratizing education, by sharing knowledge with people that can't afford it. be of the internet. internet.

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