It is cutting some Senior Executives temporarily, from january until march. Are it, let us take a look at the markets. Hong kong and china are currently closed for lunch. It has been a volatile session. This after u. S. Rebounded and markets climbed, the much across the board. As you can see, some volatility. This is the picture in mumbai. I am back in half an hour, time now for bloomberg west. Emily im emily chang and this is bloomberg west. Coming up, star wars leaves the competition far, far behind in the box office. Privacy please tim cook pushes back on critics who want access to encrypted information. And flying into red tape. If you are thinking of buying a drone for christmas, take note the drone registration site is up and running. Star wars the force awakens shattered records in its opening weekend. There are stories about what happened. Its true. All of it. Emily the movie rang up 529 million, more than disney anticipated. Disney ceo bob iger sat down with an exclusive interview speaking with Stephanie Ruhle and david westin about the box office sales. Bob its bigger than big and bigger than we thought it would be yesterday. Yesterday morning, we came out with estimates for the weekend of 238 million domestic and 500 million total global box office. Yesterday ended up stronger than we anticipated, so it is likely to be in the 247 million range domestically and even higher in international. We expect the total global take could be in the neighborhood of 528 million. And china has yet to open. That is an incredible weekend. Stephanie put that in perspective what that could do to your business strategy. That equals more than 15 of what disney will take in all of next year. Is that going to change what you want to do seeing how impactful it is . Bob no. Our strategy is baked in, particularly in the movie side where we have the lalo plan in the films are shooting or in some cases in various stages of editing. What this does is set this great franchise up for far more value over a long time for the company. David take us into that. It is more than just a movie. You have been through some version of this before with frozen and a number of these. Take us through the revenue stream and when does it hit going out, whether it is merchandising or theme park incremental. Bob star wars really is more than a movie. You touched on other franchises of the company. Star wars is probably the most valuable, maybe even most important mythology created in our time. While it was introduced by george lucas in 1977 and in five other movies, it was always bigger than that. It spawned books and games and all sorts of Consumer Products and attractions. When we acquired it in 2012, while we knew the most important thing we had to do was to make good films, it was always going to represent more than just a movie and more than just a movie business. As we look ahead, theres a lot of activity that is star wars related, including large theme park lands and many plans across our businesses and territories. Emily he also spoke about the disappointing numbers on espn subscriptions. He called the drop an overreaction to the Earnings Report and says hes bullish on the future of espn and went on to talk about netflix and whether the streaming company is disneys friend or foe. Bob netflix has been an aggressive buyer of our product and in our case, we sell three types of product to them. We sell offnetwork, programs that have been on abc for instance. We make original programming for them. They are buying some fantastic marvel series. The latest one was called jessica jones. And they have an output deal for our movie product. Starting with product we release next year. They have been great to us as a buyer. We talk a lot about disruption and competition, but what technology has enabled is the birth of new platforms, which some may view as competitive. They can also be additive in terms of our businesses and netflix has been. Longterm, we believe they will continue to be aggressive buyers. Time is finite for people and if they are spending time using netflix, it may be time to not be spending it watching other channels. It not necessarily a bad thing. We look at them carefully in the sense that we want to see where things settle down in terms of i will call it the competitive nature of the relationship. Short term and maybe midterm, they are more friends than foe because they are a Great Customer of what we make. Emily David Kirkpatrick joins me now. He is with us for the hour. David, what about the longterm . Longterm, is netflix disneys friend or foe . David disney the is an external very content company. I love the combination of disney and star wars. That is a powerhouse. It shows what incredible judgment disney has with content. The thing with netflix is that it is becoming, along with amazon, the new exciting content distribution methodology, so disney has to love it in many ways and i think hes right. They will be more friend than foe. And i dont think espn is the main way we get content down the road. Look at things like netflix and the christmas specials that are coming out. Sports is going to be a big thing. If you are the great distribution media working with a great content company, its a brilliant possibility. Emily with regard to behavior, maybe they will have to go direct to consumer with espn. If they have to change the model, do you see espns future to disney is a good one . David they have the top brand by far in the world for sports and could easily be used in a direct to consumer methodology. They have made so much money as a cable channel that it hasnt been a priority, but i could see it being a big business for disney, absolutely. Emily i love mondays. David kirkpatrick is here with us for the show. We will see you after this quick rate. Wishes planning to raise as much as 1 billion in new funds. Money could sharply boost the valuation of ubers largest u. S. Rival. Lyft was valued at 2. 5 billion when it announced the previous funding round in march. Uber filed to raise 2. 1 billion, bringing it to a 62. 5 billion evaluation. Coming up, is a drone at the top of your holiday wish list . Beware, some new red tape may keep the drones from flying high. As we had to break, we will leave you with this stock we are watching Juniper Networks down for a third day after warning customers it found a vulnerability that opens the door to cyber attackers looking to get around its encryption services. Emily did you get someone a drone for christmas . If you did, you may want to include a five dollar bill. Any drone weighing more than a half a pound must register with the faa. You only need to register once, even if you have multiple drones failing to register could cost up to 27,000 in fines and more in potential criminal penalties. Joining me now is our bloomberg reporter alan levin and ceo of the golden gate bridge. And still with us is David Kirkpatrick. On one hand, you could say what took so long for this registration rule. But on the other hand, why now . Guest this year, we have seen a big upswing in the number of Safety Incidents involving drones. Its hard to get a handle on the exact number, but it looks like we will exceed a thousand reports of drones either flying too close to aircraft or other buildings or people. The faa wanted to get a handle on that and this is one way to do it. I just went and got my drone certificate today. Here it is. You have to take a safety quiz to get it. I think they are hoping that will make sure people know what the rules are. Emily so if youre drone is over half a pound, you have to register. We filled a bottle of water with about half a pound of water, so this is about how much we are talking about. Talk to me about drone activity at the golden gate bridge. How often are drones flying over the bridge . Guest at least once a week. We are concerned because a lot of hobbyists dont have the requisite skills to fly over a busy roadway. We had a drone a crash on the roadway. If a drone hit your windshield, you would probably be in an accident. We have a heightened sense of awareness and we are concerned about drones from a security perspective. We dont want drones photographing some places. This merely requires you register your drone so a specific aircraft is tied to a particular individual. Emily how are they going to enforce this . Are there going to be drone police out there . How do they enforce it . Guest clearly no drone police. The faa is asking local authorities and police to keep an eye out. You have to have the drone certificate with you and you have to mark your aircraft with the registration number. But, i think thats a good question in the long run. Theres not a lot of resources devoted to this and, as we have seen, the faa has not brought a lot of enforcement action so far for people violating the drone flying rules. David im curious whether this will be use as a punitive regulation. In other words, they will only require you to register if they catch you doing something they dont like. What are the chances of that . Guest clearly it is difficult to catch somebody who is flying these illegally. Last summer we are number of cases where drones were flying near wildfire aircraft and they had to ground those aircraft. There was not a single case where they actually got the drone afterward. So, this is a step in the right direction but i do not think it is a panacea. David maybe it is an educational process. Its just a way of getting people to realize that these things have consequences. Emily how are you enforcing the rules . Guest this encourages responsibility and accountability. If a drone crashes, you can return it to its rightful owner. The faa will have an email address and can give them common sense tips and hints going forward. I dont think it is meant to be punitive. Emily but they are talking about 250,000 or time served. Thats not nothing. Guest its the same thing if you dont register your car. The potential fines are huge. If something bad happens, you know who did it. But around the golden gate bridge, this holiday season, theres many beautiful places to fly your drone. We encourage you to dont buy dont fly over busy traffic. You have no business flying over a busy public roadway. If you crash, someone could die. Go to a vacant lot or vacant field, dont hurt people. Emily we have to leave it there. David kirkpatrick is going to be with us throughout the show. Thank you very much. Coming up, feeling the heat tim cook under fire for his position on encryption. Details, next. Emily apple is pushing back hard against a proposed surveillance law in britain that would give Security Services access to Internet Usage of every british citizen without judicial authorization. Apple said that this would substantial portions of the tech sector and likely be the catalyst for other countries to act similar laws under the weight of what could be dozens or hundreds of contradictory countryspecific laws. Meanwhile, tim cook Standing Firm against critics on capitol hill who want greater access to Customer Data at home. On 60 minutes, he told charlie rose that terrorism concerns have not changed his view on keeping phone data private. Tim there have been people who suggest we have a back door but the reality is if you put a backdoor in, that backdoor is for everybody. Charlie does the government have a point where they say if we have good reason to believe in that information, that it is evidence of criminal conduct or National Security behavior tim if the government lays a proper warrant on us today, we will give specific information that is requested because we have to by law. In the case of encrypted communication, we do not have it to give. Emily i want to bring in our Bloomberg News reporter who covers apple for us as well as David Kirkpatrick, still with us. Adam, it seems like apple is not bending at all. Do you think there is a middle ground here . Adam not really. Something is either encrypted or its not. What the government has been asking for is this back door where apple would have a key and go in and unlock messages. Apple is saying if they were to do that, it would create all sorts of vulnerabilities to their customers and other governments that might not have those sorts of protections in place might implement similar laws and apple would have a hodge legal landscape it would be dealing with all over the world. Emily john chan, the ceo of blackberry, has taken the other side on this issue. He published a blog post where he said we are indeed in a dark place when Companies Put their reputations above the greater good. At blackberry, we understand arguably more than anyone the importance of our time to seek commitment to privacy, success and brand value. However, our privacy commitment does not extend to criminals. Being devils advocate, is apple protecting criminals . David i dont think so. How scared to you want to be about terrorism and how many of america upon freedoms do you want to throw out . Apple has made the decision that encryption is a critical function that it uses across the globe. If you tell it not to do that, you are undermining a fundamental way the technology works. I do not think that the government should put terrorism fears above the fundamental privacy of american citizens. I think tim cook is right. They dont have the information. It is either encrypted for everybody or encrypted for nobody. On balance, privacy for everybody is more important. The other thing is, if we include this in a global context, every other country is going to copy what we do and that is something we need to remember. Emily adam, i will ask you the same question is apple protecting criminals . Is apple protecting potential terrorists . Adam i dont think its that simple. Its a new dynamic we are seeing , a company of apples size and influences at the center of this debate because they have the power, they hold the cards and because they dont see it as this cut and dry, you are with us or against us sort of thing, i dont see them bending on this and i think it is too simplistic to say they are siding with the criminals. Emily just playing devils advocate. On this tax issue, is the only time ive seen tim cook loses cool a little bit. Take a listen to what he said about this tax issue. Charlie heres what they have concluded apple is in a sophisticated scheme to pay no corporate taxes on revenues held overseas. Tim that is total political crap. Theres no truth behind it. Emily have you ever heard him say crap . Adam apple, because of their prominence, they are in the headlines. A lot of companies are doing this and apple generates a lot of revenue overseas and they have a subsidiary in ireland where taxes are close to nothing. So apple is in a position where they say we are not going to pay those taxes, say they dont have to so they dont have to. We will be back with more we will be back with more when youre on hold, your business is on hold. Thats why comcast business doesnt leave you there. When you call, a Small Business expert will answer you in about 30 seconds. No annoying hold music. Just a real person, real fast. Whenever you need them. So your business can get back to business. Sounds like my rides ready. Dont get stuck on hold. Reach an expert fast. Comcast business. Built for business. Chinas leaders have said theyll do more to boost the slowing economy. This deficit ratio must be raised gradually and fiscal policy more forceful here forceful. Measuress taking against counterfeit goods. Former computer crimes prosecutor at the u. S. Justice department and helped apple deal with fake iphones and copyright infringement. A human rights lawyer has unexpectedly avoided jail in china. He was convicted of inciting ethnic hatred and promoting trouble, but his threeyear term was suspended. He was arrested in may last year after attending a seminar about tiananmen square. Outgoing fee for president sepp blatter says he will appeal his ban. Because Ethics Committee found blatter says the committee overstepped its mandate. Heres david. Let me give you an update here. Continuing to price in the face of this record loss. 11 . S are down back to earth, now. Kerry goes on i will be investing broad view of the equity markets are mixed. Uneventfulu how today has been. Volumes are quite light. Let us see how this all plays out. Waiting until we reopen in hong kong and china at the top of this hour. U. S. House care regulators to first complaint filed medicare and Medicaid Services keep that employers theranos told the wall street journal it had not been provided a copy of any alleged complaint, but troubles there have been a big story this year. We have asked some of our biggest guests to weigh in along the way. Here are some bloomberg west stocking stuffers. Last month i spoke with an early investor of theranos about whether or not he still stands behind the company. We are an investor and we want them to succeed. We dont though have the answers to the questions that are swirling around right now, which is, can i give you an answer to the questions youre asking . I dont have that. I remember meeting her when she was still a stanford student. She started the company with great passion. I remember my partner saying she is like steve jobs. She even likes turtlenecks. I wrote it down on a piece of paper to remind myself that he said that. It was fascinating. She had that mesmerizing zeal to revolutionize the entire field of medicine. There were special kinds of needles she was talking about. We wrote a check before anyone else. She has been somewhat independent and going at it all on her own. So, i dont have an answer to your question. Emily have you had an observer on the board . No. Emily i interviewed elizabeth last week and i had the same impression you did. She is impressive. She is impressive, and i want them to succeed. But there are people out there who think it is a fraud. Is it a fraud . When i say i cannot answer that heres an analogy i might draw. There are some reporters that really wanted to accuse her of being a fraud. In that darkest time in 2008 when everything was looking terrible. And, its really frustrating to get kicked when you are down. From the outside, i understand that people want to critique anyone who is flying high and take them down a notch. I think anyone can survive and i hope it will. They have done something remarkable and i hope it will achieve its full potential. Emily you guys have a tough job because you want to invest in breakthrough technologies. How do you, at the earliest stages, how do you separate something possible from something impossible . There are people walking in our door every week