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: i'm 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. >> it's 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: it's 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, there's 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 he's bullish on the future of espn and went on to talk about netflix and whether the streaming company is disney's 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 off-network, 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. long-term, 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 long-term? long-term, is netflix disney's 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 he's right. they will be more friend than foe. and i don't 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, it's 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 espn's 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 hasn't 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 uber's 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. it's 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 you're 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 don't 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 don't 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 that's a good question in the long run. there's 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: i'm 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 don't 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. it's 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 e-mail address and can give them common sense tips and hints going forward. i don't think it is meant to be punitive. emily: but they are talking about $250,000 or time served. that's not nothing. guest: it's the same thing if you don't 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, there's many beautiful places to fly your drone. we encourage you to -- don't buy -- don't 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, don't 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 country-specific 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 it's 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 devil's advocate, is apple protecting criminals? david: i don't 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 don't 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 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, i don't see them bending on this and i think it is too simplistic to say they are siding with the criminals. emily: just playing devil's advocate. on this tax issue, is the only 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 overseas. tim: that is total political crap. there's 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 don't have to -- so they don't have to. we will be back with more we will be back with more when you're on hold, your business is on hold. that's why comcast business doesn't 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 ride's ready. don't get stuck on hold. reach an expert fast. comcast business. built for business. ♪ china's leaders have said they'll 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 three-year 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. here's 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 don't though have the answers to the questions that are swirling around right now, which is, can i give you an answer to the questions you're asking? i don't 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 don't 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 -- here's 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, it's 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 or every day and a week does not go by that someone has not gotten as equally excited. this is the future of, you name it. that makes my job fascinating. some of them are just dead wrong. sometimes if they are really an interesting sector of the economy, they are doing something that is not well understood by most. and, you are scratching your head like, do i believe them? do i think this can happen? the best partnership is when whoever is doing the first round of investing believes almost as passionately as the on-chip or nerve himself. himself.aneur when i first learned about tesla, i was convinced that all vehicles could be electric. it was his idea, but i fully buy it. when i hear him explain it, he has won me over. it's hard to describe when that clarion bell hits, like you see the future and you believe it. i've been wrong and i could be wrong again, but when it is right, it is a remarkable thing. emily: i also spoke with the 23 and me ceo on her thoughts about elizabeth holmes. >> i know elizabeth. i have spent a lot of time with her. i have a lot of respect for her mission and what she is trying to do, but i have stayed out of knowing the details of it. health care is changing quite a bit and people are always going to be skeptical. the onus is on us to be really transparent. emily: i understand what she is trying to do is hard. after 12 years, does it seem like it should be more involved at this point? >> the idea that you could have a fingerprint and get your information, people just want to understand the technology and the data. i get that concern, because people are making life-and-death calls based on this data. so they want to understand the why of how these things are happening. emily: this is a $10 billion company and people think it is a fraud. do you think it is a fraud, or is it possible, what she's trying to do? >> i'm sure it's possible. she is somebody who works incredibly hard. i've seen her discipline in how much she is working. again, i'm not close enough to the company to know about the technology but i think everyone is excited about the potential of new technology and people want to understand what the technology actually is. emily: how do you walk that line between protecting your trade secrets and being transparent to the industry? >> she is not required to have the transparency that people are asking for. if that's the type of call the fda is making, it will begin to have that same transparency across all diagnostics. in the middle of a crisis, it's hard to evaluate. that is the media's job, and when the truth comes out, all those things will speak to what the reality is. right now there is a lot of discussion. emily: david kirkpatrick is still with me. david, how does this story play out? what is the fate of elizabeth holmes and theranos? david: both of those interviews were great. theranos were attacked when they were making extraordinary claims, time and time again the wall street journal did a deep investigation and found there was really good reason to question the claims they had been making. the wall street journal continues to uncover new questions. meanwhile, theranos has simply split hairs and not answered the big questions. they are doling her out to all kinds of conference stages, cover story in business week, none of which really answers the questions anymore than the wall street journal original piece did. at the same time, fortune magazine, which is the first publication that really gave her a big boost in june 2014, put her on the cover and started the whole flurry of media attention. they published a piece last week by the author of the original piece with the headline being, how theranos misled me. he talks about how they really misled him about whether they were testing with their own technology or with more conventional technologies, and they still did not answer his questions about that when he went back to them last week. the problem is, it's a great company with a fantastic vision, but is simply not answering the questions that people want answers to. emily: i read the piece you mentioned and we are still waiting for the data which they have said they will reveal about how well their technology actually works. that's something we will watch for in 2016. david kirkpatrick, stay with me, you're with us throughout the show. now, a major patent dispute of 2015 is over. erickson and apple reached a seven-year licensing pact that paves the way for greater cooperation between the tech giants. they sued each other in january after an existing agreement expired. shares of both companies rose on the news. erickson estimates it will see property revenue this year including royalties paid by apple. coming up, another startup accused of overhyping the science behind its success. hampton creek, my interview with the ceo, next. ♪ ♪ emily: hampton creek is a sustainability food company backed by bill gates that makes vegan products, most notably an egg free mayonnaise product called just mayo. the fda got involved this fall but last week regulators decided that hampton creek can keep its name as long as it makes a few other tweaks to the label. i spoke with the ceo and asked him what is the state of his relationship with the egg industry. >> i would say it probably is to a point where the egg industry realizes we are not going away. they probably realize this is not a tiny little company in a garage. i think they realize there is a real approach here that does not have to be the same way, that we can create real, scalable change. my hope is, and it's been the case with some competitors in the egg industry, there is an interest in working together. next year were coming out with a product called just scrambled. there has been expressions of interest from some of our friends in the egg industry about working on that together and distributing it together. i think that is a remarkable thing. that is when food begins to change, when we realize it's in all of our collective best interest to do something better. emily: i do want to address the big business insider story came out earlier this year and accused you guys up shoddy science, stretching the truth, compromising on quality, employees calling the company a cult of delusion. >> anytime anything ever happens, because we're growing so fast that i would not be surprised if we have to deal with more things. it's always important to say with the facts are. a couple of the high-level things are, our science enables us to ultimately make products that are better. the proof is not in what one says or documents. the proof is in what you can actually create and the change that you are making. secondly, the proof is in the team that we have. we are so fortunate to have a team from around the world, executives that have been at apple, uber, netflix, all of whom, even after that came out, said this is a place i believe in, a place that is meaningful to me. so, we feel confident about the science, the culture, the intent. that is part of the reason we are rolling along. emily: i know you're backed by bill gates. but, one of the allegations was that you were improperly touting yourself as a tech company. >> we are a company that attempts to do a different approach ultimately to make food that are. whether it's characterized as a tech company or a food tech company really is not our concern. the different approach is recognition that there are 400,000 species of plants in this world. we get addicted to soy and corn. we identify molecular properties of plants and connect them to properties to allow us to make really dynamic products. that involves a lot of biochemistry, process engineering, and culinary science. it's that approach that enables us to make the products. whether one wants to characterize us as tech or food, it doesn't matter to us. emily: how do you categorize it? >> i think we are a blend of tech and food. in the same way that apple would be a blend of art and science. emily: $300 million, 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 in tech in this short holiday week? one memory chipmaker has had a rough year as the falling demand for pcs has hit the company hard. can they turnaround before 2016? joining me are ian king and david kirkpatrick. if you want some excitement, just look at the micron stock chart. it's been a roller coaster the last year. what is going on? >> this year has been particularly bad, as you indicated. it's a commodities company. it's not like a normal chip company where you sell as many as you can. it's the same product that multiple companies are making. if you cannot sell enough, you are in trouble there. emily: what are you expecting tomorrow? >> as we've seen, profit will be down in the 70% range, sales as much as a third from last year. a pretty rough quarter. emily: so, not good. is there any sign of hope for them? >> it depends on how you look at it. a bad year for micron is not necessarily a bad year when you compare it to other companies. this is a brutal business they are in. they lose billions of dollars and make billions of dollars. this might be the time to buy. emily: david, it sounds like survival of the fittest. david: let's face it, the pc industry is not doing that great. the entire critical mass of tech is moving to the smartphone. nobody is thinking about pcs the way they used to, and micron is a casualty of that. >> they are a casuality to an extent, and you have to remember they get huge amount of their demand coming from smartphones because they are using more storage. unfortunately those markets are not growing quite as quickly as they were. emily: i know you will keep us honest when those results come out. thanks so much. now, i want to talk about shipping. some e-commerce retailers are worrying about a procrastinator pop, an influx of orders that could overwhelm the system. has amazon prime spoiled us? david kirkpatrick is still with us. every holiday season, we talk about potential delays, but it seems like it's getting worse and not better. david: we've seen amazon and online shopping getting more and more important to consumers. everybody now realizes you cannot only get a good deal but you can procrastinate and get things delivered very inexpensively from amazon. it's an amazing company. i would not want to compete with them myself. it's hard for everybody to compete. emily: what do you make of amazon leasing jets? david: i think it's astonishing. like i said, i don't want to compete with them. they have changed the landscape for retail. emily: we will see if everything makes it under the tree this year in our household. david, always a pleasure having you here on mondays. that does it for this edition of "bloomberg west." much more tomorrow. ♪ next, a paid presentation. brought to bike of the rancor. posted by television star, courtney thorne smith. high, everyone, i am courtney thoren smith.

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