And apple watch . And hes a cofounder of paypal and one of most prominent and contrarian venture capitalists in Silicon Valley. I talked to peter thiel about the future of paypal which he cofounded. Peter theil about the future of paypal and bitcoin and what it takes to be a successful on to entrepreneur. First, to our lead story alibabas ipos inching closer to becoming the biggest ipo in history. The company just raised it from 66 to 68 a share. They could raise money 1. 8 21. 8 billion just shy of the global record, which is the Agricultural Bank of chinas 22 billion ipo in 2010. Meanwhile, the alibaba roadshow met with investors in hong kong, reportedly saying he will not look for a valuation that is too high. Joining me now is josh green and leslie, who covers ipos for bloomberg news. I will start with leslie whats the latest as far as we know and what is the thinking behind this new price . You might be thinking to yourself it moved up a couple of dollars, whats the purpose when they can price above the range . People i spoke with who are sources working on the deal say the reason they did it was to give investors a better sense of where they will price the ipo. It would be unlikely its priced above the 68 a share because the purpose was to give investors a narrower sense of where the final pricing would be we could see something come in between the 66 and 68 range. We are still a few days out from the actual first day of trading, so you think theres not going to be any movement . Most likely not. This is the final range they are seeking all stop a can price anywhere in that range and could theoretically price above it all above it. If you look at other big ideas in the past, they will price at the high end of the range. Everyone i speak to says this is it in terms of the filing. But few have tracked many ipos, how does alibaba compare . It is big. Lets start there. There is no question that jack ma is a man of big ambitions and the company hes built jack is a man with big ambitions but i would not count him out when it comes to targeting the biggest ipo in history. Hes telling investors hes not going to try to hard for a superhigh valuation. What do you think of that . If the shares to increase the first day, i know everyone is working hard to ensure that is the case, the underwriters have the option to issue 15 more shares which would put them at the recordbreaking level, so that is the way they can do that and those are the numbers that count in history books. That is probably the way they could achieve it. Compared to ali babas chinese competitors, isnt he going for a lower price to earnings ratio esther mark why not push it higher . Is he scared . I dont think hes afraid of anything. Certainly he learns from mistakes but if you go back and look at the alibaba. Com ipo, there was an issue where it ended up trading down from where it was introduced. I think he wants to leave some money on the table but if you look at the current price range, you are talking about videos that are self of operators like baidu. As you look ahead, alibaba plus video regardless of what happens in the early days will be judged a success if the chinese economy continues on its tear. The price we are talking about right now might look in retrospect pretty cheap. Its nice to have a nice pop and see the stock 11, but at the same time, any concern from the company is there concern behind the scenes about leaving too much money on the table . That is the big concern. Yahoo is a big concern and they are selling as touches 800 le and dollars worth of stocks, so it is really yahoo we are looking at. As we know, the situation is such that they need the cash. This exit opportunity, they are going to have to exit their opportunity, they may as well do so at the highest valuation they can possibly get. Yahoo is one of several entities that get to decide pricing and jack ma and the gang have the most they year. It in the best interest of alibaba as a whole to make sure they get those longterm shareholders they can warm a relationship with and hold the stock for three to five years or more. How much is this ipo going to change the business . What kind of impact do you imagine this having on the business itself . This is one of the most interesting conundrums. If you look at the perspective, it is very much focused on that but if you look at recent moves, just in last couple of days, jack has been talking about his ambitions to turn ali baba into a global company. One of the key questions is is is, is this a china story or is it a global story . Right now, alibaba is sending mixed messages. I think jack ma in particular has global ambitions, but thats a more difficult question. He did talk about intentions to expand aggressively in the United States and in europe will stop how do we see that laying out . It seems to be making Strategic Investments in u. S. Companies, buying companies here and there. He mentioned these lowball ambitions that he wants to expand internationally but one thing he left out is what kind of timeline are you looking at for this Global Expansion . He talked about india as a possibility, but they never got a sense to when and how they would penetrate those regions. This is something investors are looking at saying how do we model future global ambition . Potential diversified revenue coming from other areas of the World Without a sense of timeline. It has taken 15 years for ali baba to get to this way. In some respects, its taken all the time for ali baba to reach this point but it is important to room for ali baba actually started with an international focus. They were originally focused on trade and realized the big focus was china and pivoted inward. In some respects, when jack talks about going global, i think investors are speculating ali baba will test the waters globally but returned to her the big opportunity is, where the opportunities their best positions to seize is, which is in china. Still a few more days until we start trading and i know we will be beating the drum until then. The new iphone doesnt come out until friday but they are already flying off the shelves will stop up next, we talk about on the Strong Demand or the latest phone compares to the previous version. Welcome back. Im emily chang. Its a recordbreaking start to the new iphones which start shipping on friday. Apple says preorders for the iphone 6 and 6 plus topped 4 million in the first money for 24 hours, double the previous record for the iphone 5. Demand also exceeded the initial preorder supply and some customers will have to wait until october to get their phones. But will the success of the phone lead to other big launches for apple products like apple watch and will apple pay be a success . I spoke with the founder of the most accurate apple analyst on wall street. But it looks really good off the well, but it looks really good off the bat. We have to measure against the bursts we have seen in the past. Historically, it is essentially doubled every time weve had a major release of the iphone. It is an actual new number we are seeing on the iphone, so will we see a doubling from the figures we have seen for the iphone 5 . That would be the question. The first data point is we saw a doubling of the preorder figure. For the launch weekend, we would have to see the iphone 5 shift around 10 Million Units. Will it be able to do that . We saw nine for the five c and as together. Will we see 10 or more . It is possible. If we think on a daily basis, we just saw 4 Million Units in 24 hours in preorder, if that were sustained over the weekend, we would see 13 million. We have seen a roughly one to one relationship between the number of preorders per day which would be tripling the actual weekend lunch. Tripling the actual weekend launch. Here is the question of the day does apple intentionally keep supply low to boost demand and build buzz . They have done plenty of these watches before, or is it a supply problem . They just cant make enough to meet the man. But i believe it is a supply problem. Its very difficult to make a lot of things very quickly. The constraints we hear in terms of component shortages, those rumors come frequently and every year that there is Something Holding up the production line. Lets not forget last year the problem was mechanically, the chassis for the iphone was very difficult to manufacture which required a lot of milling and machinery running in parallel. This year, the process may be easier to execute on sunday might able to get more shift in volumes will stop i do not give a lot of credence to the idea that they are holding back. I think they will try to serve as many people as possible. What are the remaining questions when it comes to the six and six plus . We dont know how this is going to perform when consumers get into their hands. I had a chance to use the device refleet during the launch event. They look very, very nice when you actually hold them both up they are up to the standards of a tactile feeling in term of overall shape and aesthetic quality. As far as performance in terms of every life, we dont know. From apples point of view, it has increased the speed and memory on the units which are exceptionally high memory numbers. In previous years, we are probably going to see the product rated number one in terms of customer satisfaction. When are we going to be able to walk into an apple store and get whatever phone we want in whatever color we want . I think that may not happen until december. Obviously that is when the peak time of the gift of the season and also going into the chinese new year, we are going to want to have that supply available so the company can maximize value. I cannot guarantee it does there are some he markets it launches into nowadays trying to get into 100 countries. To have all of it available and all the point of sale is a challenge will hopefully by december, they will be able to meet demand or supply and demand might match. The iphone is sort of on a twoyear upgrade cycle. What about the apple watch . What do you see as far as how that water will roll out . Apple watch is interesting because its a new category. We have usually had delays between the announcement and shipment dates. This has been one of the puzzles this year why has it been so long . It will probably be five or six months. One hypothesis is they want some developers ready with some apps and another might be they felt leaks would encourage her in the production ramp time because most of it comes from the supply chain which the broader and broader. What is interesting from a value point of view is that this apple watch is priced at least at 350. We are looking at that being high and with solid gold frames. That will be very difficult to pin down. What is also interesting is the question of how long these phones will be used and how often people will upgrade. We are used to a two year upgrade cycle for phones and perhaps three years or four years for computers or macintosh. But we dont know how smart watches will behave. She point you might replace frequently and expensive ones cheap ones, you might replace frequently and expensive ones you might replace infrequently but we dont know what is the cycle. Will we see some other new product lines from apple . Maybe a new tv . Ceo tim cook answers some of those questions coming up. Welcome back to bloomberg west. Im emily chang. Netflix is expanding into six more European Countries today, its Largest International rollout ever. At the paris watch party, Reed Hastings told bloomberg that he expects Netflix Europe to turn a profit in 10 years, though he admits the first two years will be challenging. Some of that is in europe. Apple ceo tim cook says the companys new system will forever change the way we buy, but in the wake of apples recent incident that saw new photos of celebrities released on the internet after their icloud accounts were hacked, some are asking how safe is apple pay . Paypal is going after apples security in a fullpage ad in todays New York Times was quote business section. They challenge apple security saying that they want their money is safer than their selfies. One of paypals cofounders is out with a new book tomorrow. In the book, peter thiel outlines a new way of thinking. I sat down with him to talk about everything from why he thinks paypal was a failure to why bitcoin wont succeed. Take a listen. The first line of chapter 14 of the six people who built paypal, for build bombs in high school. Four had built bombs in high school. I was not one of those four, but there is something about starting the company. Having some extreme personalities is a somewhat good thing. As successful as paypal was and as successful as so many members of the paypal mafia have income you have said you think paypal was a failure. Why . It was a failure in that we did not achieve our original failure of a completely new currency system for the world. What about bitcoin . I am probably psychologically biased against it. I would be tempted to come up with reasons why nobody would succeed at it at this point. But you think chances of it succeeding are unlikely . My sense is it is still slightly too cumbersome to work at the end of the day is a new payment system. But should paypal be spun off from ebay . I think there are large synergies between paypal and ebay. Maybe it is something ebay should incinerate some weight, but i think ebay was right to resist carl icahn. We do not want him to be did dating the way that should be done. But if it is spun off, who should be ceo . What is critical to operated not just as another business. Someone from the paypal mafia . I dont want to name names, but there are people from there that could be good. There will be a full 30 minute interview with peter thiel coming up in october. It is an exciting time at apple, from the new iphone to apple watch, tim cook gave us some insight into apples future next. You are watching bloomberg west. Im emily chang. Preorders for the new iphone have grown, and records with apple receiving more than 4 million orders on the first day. Apple ceo tim cook was on charlie rose to speak about the new product being unveiled. These are the best iphones we have ever done. I think you will agree, this is my iphone. Look at the size of them. This is the iphone 6. Is the best phone weve ever done. It is the thinnest we have ever done. The screen is just to die for. It is lightning fast, it has a whole new range of wireless technology, so it is screaming fast on wireless networks. It is unbelievable and it feels unbelievable in your hand. Hold it. It is really unbelievable. The design johnny and his team did such an incredible job here. It is seamless between the glass it is like a singular form. Back to what is next this represents a continuation of the iphone. A leapfrog, i would say. But yes, its the iphone 6. It is not the first iphone, but it is the biggest advancement in iphone history. We think the upgrade cycle here and the number of people that will switch from other smart bounds will be enormous. Were you challenged by what samsung does and what it has in the development of this size personal smartphone . We could have done a larger iphone years ago. Its not just about making a larger phone, it making a better phone in every single way. We ship things when they are ready and we think the display technology, the battery technology, everything else, and the software you can still use this phone one handed because you can tap it twice and the screen will come down. The ingenuity here and the fact we have integrated software, hardware and services which i think only apple can do, this phone, now is the time for it. Apple pay will roll out in october, but is it secure . Take a listen as cook talks about the security features. Our system is much more secure than the traditional credit card system is. We kept the thing that people like, which is they do love their card and we said we dont want that data. We are not doing what other companies are doing. We dont want to know what you are buying and we dont want to collect all the stuff on charlie. We firewall all the stuff its not on our servers. We kept what is great and fixed what wasnt. One thing we did not see is the new apple tv product will stop when will we see that . Tv is one we continue to have great interest in. Tv is one of those things that if were honest is stuck back in the 70s. Think of how much your life has changed and all the things around you that have changed. Yet tv, when we are going into the living room to watch tv, it almost feels like you are rewinding the clock and have entered a time capsule and are going backwards. The interface is terrible. Its awful. The biggest acquisition since tim cook took over apple was the 3 billion purchase of beats electronics. Tim cook explains why he bought the Company Started by dr. Dre. They are offthecharts creative geniuses. They also had teams underneath them that i really liked. Jimmie has a deep knowledge of the musical industry. Dr. Dre knows artist, he is an artist, they started a subscription service. This subscription service, some think theyre all alike. It dawned on me when i listen to theirs for a while i feel come really different will stop and the reason is they recognize human curation was important. The sequencing of songs you listen to it affects how you feel. Its hard to describe some of know it when you feel it. That night, i couldnt sleep that night. I was thinking we need to do this. When you think of apple, there is one man synonymous with the company, and that is steve jobs. Here is cook talking about jobs who still has a major presence at apple nearly three years after his passing. He is in my heart and he is he in apples dna. His spirit will always be the foundation of the company full of i literally think about him every day. His office is still left as it was on the fourth floor. His name is still on the door. You can catch the second of charlie roses interview with tim cook tonight at 8 p. M. Eastern. In the meantime, apple is allowing customers to delete the free you to albums that he gave away last week. They have created a website to make the process easier. Still ahead, an inside look at vanity fairs new list will stop you can watch us streaming on your tablet and on bloomberg. Com. Im emily chang and this is bloomberg west, running on your phone, tablet and bloomberg. Com. We turn now to vanity fair, where the magazine has just published its power list of the top 50 disrupting the industries. Elon musk, larry page, tim cook and for the first time, alibabas jack ma. Joining me now is someone who has helped put together the list for the last three years. What do you think is so surprising about this years list . The big mover this year was elon musk. For the past few years, there have been four companies that really mattered. Apple, facebook and google. What we are seeing is this wildly ambitious startup guy is rising above those companies in the cultural consciousness. Hes kind of the coolest guy in Silicon Valley. When you ask someone like larry page who he most admires, that is who he says. The ceo of uber, even though they are facing challenges around the world, you seem up a mistake. Who would have predicted a taxicab company would be this important . They just raised their investment round and everyone in Silicon Valley from investors to consumers to pretty much everyone around, they are super excited. I think they are impressed by this robust response uber has wrought to the controversy. He is clearly a fighter and it showed. It has helped the company quite a bit. What is the biggest debate you had putting this list to gather where you guys were arguing about who should go where and why is china . One thing that has been hanging over us is apple. In the wake of steve jobs passing, it has been hard to figure out where to put them. It seems like tim cook is coming into his own and although they did not move up the sheer, thats mostly because google was so strong and elon musk is so strong. Jack ma saw a side entrance. Hes been at it for a long time. If you are seeing alibaba making a big impact with other companies. You have them investing in Silicon Valley startups and you have yahoo s Balance Sheet dependent on what happens with the alibaba ipo and you have guys who made the thats on alibaba and are looking to profit handsomely. This is going to matter for people who invest in alibaba but its going to have reverberations across the tech landscape. Jack dorsey dropped a few spots from number eight to number 14. It has been tough for him. Square is running into some problems and its not clear they can get out of this lowmargin business of swiping credit cards. With apple going into payments, that is going to present challenges. Twitter has had challenges with user growth and although they you have jayz and beyonce are kind of righting the ship, it doesnt look as robust as facebook touch looks to be firing on all sold yours right now full up you have jayz and beyonce near the top, but can you tell me if they are getting a divorce or pregnant . We did choose to separate the entries because its unclear what is happening there. What is most amazing about the on say especially as the way she has been able to break the rules in terms of media. That visual album did everything people say you cant do there is no marketing, no distribution, and yet it just exploded. Thats a credit to how we did choose to separate the entries because its unclear what is happening there. What is most amazing about the on say especially as the way she has been able to break the rules in terms of media. That visual album did everything people say you cant do there is no marketing, no distribution, and yet it just exploded. Thats a credit to how powerful she is somehow loved she is and just the way jayz and he on say ken marshall fans. I will have to check out tmz for the rest of the story. Thank you for joining us. A fascinating list you put together this year. You know him best as mr. Sulu from star trek, but did you know Actor George Takei has more than 7 million fans on facebook . We will ask him about his social media success and talk about his new documentary when we return. Welcome back. Im emily chang. Lets get a check of the stories making headlines at this hour with mark crumpton. British Prime MinisterDavid Cameron says it would be a painful divorce in scotland were to vote for independence. Speaking in scotland for the last time before the september 18 vote, Prime Minister cameron pledged a Major Program of addition powers for scotland if voters choose to remain in the u. K. The bankrupt casino in Atlantic City is seeing renewed interest from potential buyers after closing down this month. One bidder says hes considering buying other closed casinos as well. Fans of the Los Angeles Dodgers will be able to see the teams final six baseball games on local television for the first time this season. Time warner cable has decided to end its seasonlong blackout as the dodgers fight for a playoff spot. Best known for his iconic role as mr. Sulu on star trek, hes known for his massive social media following and tireless work advocating for gay rights. His documentary to be takei looks at his life behind the scenes to his childhood in a japanese internment camp to his work on the ever popular star trek series. Cory johnson sat down with him to talk about the documentary and the director. They started by talking about his huge social media following. The reason i started with social media is to bring attention to this music weve developed. First, we have to raise awareness of that dark chapter of American History and then develop them into enthusiastic ticket buyers. The best way to do that is social media. You have this wonderful baritone voice in real life but you have a particular voice in social media. It is both informative, it is sarcastic, smart and really right for the medium. I wonder how that has grown on you . By trial and error. The basic audience base when i started out were scifi geeks and nerds. And i had to grow that. I found the humor was the thing that got the most likes and shares. So i started concentrating on that. Then as the audience grew larger, i started inject a social justice issues, internment for one but inequality it was all part of the strategy. No sneakiness here. It was all part of the strategy. When you try to capture that in the movie, how do you go about telling that part of the story . One way we do it is by showing how so many fans, when he runs into fans everywhere, but one place was, comic con. We happen to be there and we show how many people come up to him and say thank you so much for making my mornings better. I get up and check my facebook every day and look to see what you have said. I think people appreciate that smart humor and then they appreciate the social justice as well. It is things people can as well. Is things people can really relate to and just thoughtful, funny commentaries that are pretty genius generally. He has that wonderful line about putting the social in social media instead of the me in media. I have to ask you about the star trek stuff because we do this Technology Broadcast and i had this heart rate monitor on the other day and it captures my heart rate by shining light into my skin and shows me on my phone what it is. Im running with a tricorder and communication device. Do you look at the things happening now in mobile technology and see some of the ideas from star trek question mark next star trek was in the 23rd century and we are in the 21stcentury and we have far surpassed any of the technology except for the transporter and warp speed. We have not surpass that, but almost every other technology is way beyond what we had on star trek. Our communicator, it was amazing back in the 60s. No cords and we talked to people wherever we were amazing. Now what do we do . We take pictures with it, we send Text Messages with it, we do research with it. We check our facebook pages for updates. How do you feel you have been attached to technology . Of all of the lasting project you might have worked on, to be attached to something so futuristic and technology driven, has that changed you in any way . It certainly has, but that should have an attached to Leonard Nimoy or jimmy doohan. It should have been them but it happens to the helmsman of the Starship Enterprise and later the captain of the starship excelsior. Its wonderful that the enterprise had a multicultural crew like nothing that had been seen before on television and that you as a gay activist taking that again to another level but from that wonderful form. That was gene roddenberrys vision of the future where we see our diversity as the strength by working together in consort, each contributing his or her unique talent or unique perspective or unique vantage point. That is what in fact is true. Part of the United Statesgreat strength is our diversity and now we are recognizing there are aspects of diversity you cant see like sexual orientation, but now that society is changing, we are discovering people who make enormous contributions to our society have this kind of invisible aspect to diversity. Cory johnson speaking with Actor George Takei and a documentary of ash director of the documentary, to be takei that available next month. Time now for the bwest byte brad stone is with us for that today. Hes also the author of the everything store. What have you got . 152. That is the number of days amazon and hachette have been fighting. What does that mean . The new book by tavis smiley takes weeks to deliver and a lot of authors are suffering. So today, authors united, including stephen king, took the fight to jeff bezoss boss, saying its undermining their ability to support their families and asking them whether they support making it more difficult for people to buy books. Your book is published by hachette, so how can this and . My book is out and not being harmed by amazon but i do worry for new authors whose books are not available for preorder and amazon is making it more difficult for them to make a living. Day 153 tomorrow. Thank you for watching this edition of the show. We will see you later. The following is a paid program for the tummy tuck slimming system. It instantly erases inches from your tommy, trims fat off your belly without diet and exercise. It burns off faster that exercise alone and delivers results so shocking that at first people do not believe it. My wife saw an ad in the newspaper. She wanted me to go with her