Bob iger will continue to direct creative endeavors. And conversations from tech regulation to politics. We begin with the coronavirus and the outbreak spreading beyond china. The firstted states, known case of unknown origin was reported in california. The state is monitoring thousands for signs of exposure. President has tapped mike pence the task of overseeing the u. S. Response. Trump spoke from the white house wednesday. Done,ause of all we have the risk to the American People remains low. We are ready to adapt and do whatever we have to. This is like a flu. I think the stock market will recover. Emily but the markets were not all fine, with markets pinned to the virus threats. The s p 500 and dow jones suffered big losses this week. As for the tech sector and supply chains, microsoft and apple sounded the alarm. I caught up with dan ives thursday. Tragedy, butjor view is that we have to look at if this impacts demand or changes dynamics for our winners. When i look at names like apple and amazon, even though this is going to be a very uncertain , thesen my opinion continue to be stocks we want to be owning. Emily facebook just canceled a conference that is three months away. Microsoft, hppple cutting their forecast. What will be the impact . Dan microsoft is a good example. Cloud continues to be something microsoft has kept on and 80 of the valuation is because of that. Microsoft is going to be a victim of the supply chain, but when i look out in 18 months, is this a name that i continue to believe is the best play . Views why i continue to these scary headlines. Winners and you said luckily selectively continue to buy them. You are not alone in that view. A number of analysts have rated but the question is how selective do you need to be . I have been telling clients all day. Our view is, you do scenario analysis. You pick your spots. You are continuing to own these names and buy at these levels if you believe in the fundamentals that we do. From our opinion, this is not the time to go into the bunkers. It is a time to look at your whiteboard. Look at the names you wanted to own over the last four or five months. When i look at a lot of these stocks, you have in five days, six or seven months of gains wiped out. It depends on which side you are on. There is obviously going to be the bears and more of the armageddon. They are not going to be buying high growth. In my opinion, this is more of a pause in the long term bull market for tech rather than the start of a darker time. That is our view. Paul in the short term, i am wondering if the risks around the supply chain are fully understood. When apple was the first one to fess up and then microsoft, that is something they tried to get their arms around. Fundamentally, it is such an unprecedented situation where the supply chain to your point, do we start seeing normalization in march, april, may . That is how you have to put the goal post. And we see some normalization starting in march, 5g super cycle remains. You have the 5g phones for apple, in december. But if you start to get into april, may, and later, thats where the supply chain impacts are more pervasive and you are seeing that reflected in stocks. Emily dan ives of wedbush securities. Coming up, disney just got a new ceo and it is a company veteran. We hear from the new and former guards of the magic kingdom. And if you like bloomberg news, listen to us on the bloomberg app, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. This is bloomberg. Emily disney named bob chapek its new ceo this week, replacing bob iger, who will remain fair. It comes weeks after an upbeat earnings report. I spoke to the two executives shortly after the news came out. Its a great time to begin this transition. I was going to be leaving the company at the end of 2021. The board has been engaged in a process for quite some time. , we have somebody who knows the company very well, but he is also somebody we know very well could not think better candidate. Now, we havehy recently completed the acquisition of fox and have engaged in assimilating those businesses. We deployed a brandnew strategy, our direct to consumer strategy with disney plus, hulu, and hot star. Given the fact that our asset place, my next priority was really making sure that our greatest pipeline was as vibrant and rich as possible at the company, particularly given the new strategy. In order for me to concentrate on those pursuits of the company, i needed to turn over the reins to bob, to someone else, so that they could essentially run the company daytoday and do what i think and free me up to do what i think should be the priority at this point. It made perfect sense and creates a really smooth transition, given the fact that i will be around to advise bob when he needs it, and bring bob into some of the business he has not been familiar with. That gives me the opportunity to spend the time really working on our creative side. Emily bob chapek, day one for you is today. This is effective immediately. Bob talked you had to hit sequels bob talked about the streaming strategy, you had to hit sequels to toy story and frozen. You have opened the star wars portion of that the park, where do you intend to double down . Mr. Chapek i intend to double, the same strategies bob has established 15 years ago that served us so well. At the core of everything, the center of our brand is creative storytelling. If the creative storytelling is right, then Everything Else is right, no matter where you put it. Whether you put it in theatrical channel, disney or the theme parks. The thing i have taken away from bob igers legacy is getting the content right. Everything else will follow suit. Bely bob, you said you will focused on creative endeavors. Can you give us an idea of what things you will be focused on . Television, star wars. Mr. Iger creativity abounds the at the company, whether it is a Television Channel or our various movie studios, or all of the places that we create globally. There is a lot of creation outside the United States. I dont have any specific priority, but fueling the pipeline of our new direct to consumer business is very important to us. You know, given how large a role they will play in the future of the company. There is a lot to do. A lot of creative activity. It makes it exciting and separates his company from so many others in the business. Emily it is a Global Business, bob chapek, youll have to get used to being in the hot seat in answering a host of questions. The coronaviruss front and center. You have seen parks in china. Theme parks in china. Can you give us an update on the status of the parks there and what life is like for employees . Mr. Chapek we are not prepared to give an update on the impact of the coronavirus on our business. But what i will say is that when you have a brand as strong as us with tremendous franchises and builtin consumer demand, we know that when we are able to reopen, we will come back better and stronger than ever. Emily bob iger, are there any jobs out there that are of interest of you . Your potential political ambitions have been speculated about very much. What else might we see you do if not at disney . Mr. Iger i have not made any decisions about what comes after disney. I will have to use my imagination. Right now, i am concentrating on priorities we have talked about. I will not take my eye off the ball until i retire at the end of 2021. Emily you are leaving at a time when the coronavirus has markets in upheaval, a very competitive election in the United States, bob iger, what is your outlook on the macroeconomic picture in 2020 . Mr. Iger again, as bob said, i will not comment specifically about the impacts of the coronavirus. Obviously it is very unfortunate and we feel for all of the people affected by it. Overall, we thought that the world was quite a hospitable place for our company. As bob mentioned, our stories and storytelling are enjoyed the world over. Our businesses are doing well. The longterm process for our brands, franchises and businesses are looking quite good. We are obviously experiencing some very, very challenging times now, whether you are looking at the stock markets or just the Global Business environment due to this virus, but we view this as a serious situation. We also know it is not permanent. This country has always shown an ability to rebound from some of the Biggest Challenges that it has faced, and this is one of them. Emily bob iger and bob chapek of disney. Helping political candidates get around the rules. Thats next. And can Artificial Intelligence help detect Health Threats . This is bloomberg. Emily in politics, all eyes are on the South Carolina primary and super tuesday. Candidate sparred in the latest debate and we saw joe biden try to hold on to his lead. Backed byden has been strong support from africanamerican voters. To get perspective, paul allen denied spoke to a Political Science officer. Professor. This endorsement, traditionally, is critically important. Instrumental in support for barack obama over hillary clinton. I know it is important for joe biden who has not been doing so well in early states. Reason, it is critically important. Really well respected and joe biden is looking at a state where 60 of voters are africanamerican. Its 2020 and we are entering a brandnew era. Did these types of traditional endorsements even matter anymore . Nevada, we saw the culinary unions. Critical of Bernie Sanders and yet many of their members drove ranks with voted for him anyway. We just are not sure if these butrsements matter anymore, it sure mattered a decade ago and bided his hoping it will do the same for him. Emily sanders is still the front runner nationwide. Bloomberg is the founder of this network. Not on the ballot in South Carolina. He had a disastrous first debate. Some would say he improved in the second, but not enough. What are the chances of regaining some of the momentum he had . It is tough to come back from a difficult bait performance. Debate performance. He got better in the second debate, but hes not on the ballot in South Carolina. Hes running a campaign we have never seen before. Not just the amount of money he is spending, but the fact that he is not competing in these first four states. As we get to super tuesday, a third of delegates are up. Money he has and name recognition, he has a shot, but it is an uphill battle. Bernie sanders has a commanding lead over all others. Delegates to buttigieg in second place at 25. There are 54 delegates in South Carolina, which could put biden over sanders if he gets all of them, which is unlikely. We will see what happens with all of these other candidates who are in this moderate lane, so to speak. There is pressure on them. It is a do or die moment. You have got to perform or get out of the race and let the out. Runners battle it , joe terms of do or die biden has long in building up to this vote. How resounding does this need to be . Joe biden needs a strong firstplace finish. Think he will i sustain threw two super tuesday. To super tuesday. He is a far distant second to Bernie Sanders. If he cannot lead in us win a state where he is leading without endorsement, people are going to say, can he beat donald trump . That is the key question. I would say this is critical for , whoiden and tom steyer has spent so much time and money organizing. If he does not do well, he will have to step away. U. S. President ial candidates spend continue to spend online. Michael bloomberg, the owner of our Parent Company, is far rivals,ing rebels followed by trump and tom steyer. But these numbers do not tell the full story as advertisement in given loopholes political advertising. Mike schmidt is the founder of dovetail. Mike it is not new to me. I see tons of activity on sponsored content. We have been preparing for it and we have been thinking about intensely as a team at dovetail. We are a small company, so we have to be nimble and pick about these things more intrinsically and we have to be careful about how we position our says ourselves in this space because we are a neutral third party. It is becoming a big Opportunity Zone for us and a big area of interest for us, we also ask ourselves what are our responsibilities as a neutral Third Party Data company and Workflow Company that treats this ecosystem equally. Equally . Emily where do you draw the line . Where should the candidates draw the line if they are fighting loopholes that are loopholes and abide by Company Policies . Mike the answer to sponsored content, there is two reasons. One is the rising cost and Customer Acquisition on platforms like facebook and instagram and the diversity of advertising content. People want more places to advertise. At the end of the day, our strategy is to inform and educate. At the end of the day, people are just going to do whatever makes sense for their campaign. It is hard to stop these things as a company like ours, but what at the platforms like facebook, they have more responsibilities to crack down on content that is either fake, or misinformation or fake news. Specifically, there are Government Agencies that need to crack down on these issues as well. Paul regulation is a thing that comes up when discussing these matters. Do you believe there should be more, and which parts of sponsored content should it focus on . The platforms or the advertisers . Mike i think advertisers need to be held to a higher standard. If they are sending fake news or lying to customers on purpose, there needs to be more ramification for those types of customers, specifically on facebook and instagram. Whatsapp is becoming a new platform for advertisers as well. As we see more and more of these things come to fruition, we think about the responsibilities for instagram and facebook to collaborate with governments around the world. You see activity in singapore, in not only the u. S. , and i think zuckerberg making his opinion in the wall street journal, it is looking to me like he is becoming more in tune with some of these regulations. I think that, over time, this is the tip of the iceberg and we will have more and more regulations as we think about the future of this particular advertising. General, we are seeing improvement. Some people say it is not enough, some people think it is on pace to change the industry. We can always do more. I am a innovator, i have to think that way. When i think about improvements to the platforms themselves, how can we change the narratives narratives for election cycles . I want to make sure we are helping be ecosystem. At the end of the day, we are trying to educate and think about how we can be thought leaders and how can we get to the right solution because this is a tricky subject. Is there a role here for Machine Learning or ai in combating the fake news . Mike Machine Learning is a core piece of our pitch here at dovetale. I think about Machine Learning and Artificial Intelligence all the time. Everyone is scared about the situations we are in with Machine Learning in Artificial Intelligence. I think it is about perspective. Do you learning and Artificial Intelligence and make these things harder, easier, or do you think we will have an easy way to collaborate in the future . Deepfakes alone, sometimes i cannot tell the difference. As we look at data systems, privacy, more and more of these data systems, how can we be more educated as a society, and how can we understand the systems more . In general, people dont know how Machine Learning works or how data scraping works or how obtaining data works. Of course, data is a huge part of our business at dovetale. Making sure they can use and bots all work into the fold, but in general, what we find in our surveys is most people dont know how this data is obtained, nor do they know that facebook is the same company as instagram. There is a lot of education happening in the markets, specifically around Machine Learning. It should be introduced at more younger ages. More and more people should know how the systems work, and specifically how social networks make money. Emily mike schmidt there. Coming up, how Artificial Intelligence could help prevent the next outbreak. We speak to a Health Expert has created an Early Warning system who has created an Early Warning system. And if you like bloomberg news, listen to us on the bloomberg app, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Is is bloomberg. Emily welcome back to the best of bloomberg technology. Im emily chang. The World Health Organization says there are now more cases of the coronavirus outside of china rather than inside raising the questions of Early Warning systems. In boston was the first and try not flag the disease. Was the first to flag this disease. I spoke to dr. John brown, chief innovation officer who helped build the potential for ai and he future in future health practice. What is challenging is getting enough detail in real time. There is only so much Public Health agencies can do to track these creases cases. If you think about our interactions with social media and search queries, all that information is valuable, that it is messy. If we start tapping into that and getting insights, you can pinpoint early events before they bubble up. With the coronavirus, early signs came out of social media sites that were talking about this mysterious outbreak. It was only a dozen people that ultimately became this major event. But what we are able to see are small signa