If you hit the roads in california, there may be a self driving car in front of you. Regulations went into effect allowing automakers to test Autonomous Vehicles with the proper permits. An inside look into the program. To our lead. Bloomberg businessweek sits down with apples executive team. We will tell you the real story behind the apple watch coming up. Also ahead of the iphone, apples latest mobile a system. Overhaul a complete and ios eight is a refresh of the new design with a lot of updates, including apps, keyport options, messenger app, easier integration, updates, and more. Downloads could take a while with a massive spike in the ios 7 release last year. What will it be like developing for ios . Now, thank you both for joining us. You have already gotten to see it. What is it like . Unlike the ios 7, a refresh of the operating system in the u. S. , these are just a lot of fun Little Things that make it more enjoyable to use. The syrian integration finding out what songs are playing. Thes really fun and makes os a lot more interesting to use. How is it different for developers and will it be different for users . Yes. It is awesome. In a matter of a few weeks, a few modal apps. Mobile apps. It is a way to get knowledge and information. Isnt ioss biggest release ever . It does not look different. It is all Little Things that are really fun. Predictive texting. All of the things that make it great. We are very excited about two different areas. Hotel tonight a couple of hours ago and he confided in the app store. It shows you the best deals around zeal. It pulls information to you in a different way and allows users in a holder for way. It is really amazing. You can share things between different apps. Lets say you find an amazing presentation to help you get better at the job you are doing today. Tonight anda place you want to share it with your friends. What was it like . It was a lot bigger. A lot of work up front for us to move to a development framework. We did all the upfront work and it will now save us time going forward. New sizes are great. They merchandise our hotels that appeared we have beautiful pictures of Incredible Hotel properties. The bigger the screen, the more you can see. We are happy about developer support for making it easy. Apple or android . Presentations are going to look beautiful in most devices. We think about every single device, how the interaction is and how it looks and feels in every device. That is important to bring users the experience for different platforms and devices. It is a loaded question. What does i wait not have . Io8 not have . You want . Do i need to spend time with it and see. There is so much in there i will discover in the course of using it that it will take me a while. I saw them and i was like, that is great. It is really hard to say. One of the things within ovation, you never really know how users react to it. A lot of new and exciting features. It is really hard to say. What do you think about the watch . It is not something i have been saying, i really need a watch. I am excited to see what it. Ooks like the same whale is not sold on the iphone when i first heard about it. Then i used it and it was irreplaceable. I would imagine that would be very similar with the watch. I was super excited about it. It is beautiful and i was excited to use it. Getting information timely and in a great manner, that is probably what the new iwatch is about. Should we wait to download it and get the bugs out or right away . Right away. Go for it now. Thank you so much for joining us. Goods, areour luxury they the key to alibabas growth . How the Strong Demand could impact alibabas bottom line. Bloomberg news is reporting this and is also reporting that apple is working on a bigger, 13 inch ipad on new iphones and the apple watch. We will be talking much more about apple here at coming up with brad stone of Bloomberg Businessweek, executive interviews with apples but first, in china, demands for luxury is rising. Chinese consumers are the biggest buyers of luxury goods locally, making up 29 of all purchases in 2000 and 10. York, ame now from new site that sells luxury goods to the chinese market. Thank you so much for joining us. And oh you have done a lot of research on the market. What exactly is the demand for luxury goods in china . Thanks. We have the consumer side that helps sell goods but we also have the intelligence side that helps brands understand the consumer better. Is tremendous appetite by consumers for western luxury goods in china and a booming business for the goods. The irony is the brands are doing very little to promote themselves today. You know, i lived in china for many years. There were many luxury stores. Yet, many times, the malls were empty. Are people buying these things online more than in person . Question. About two thirds of all luxury goods Chinese Consumers buy occur outside of china. The Online Market is growing quickly but is primarily driven by retailers who are selling products they buy in the west, products they report to buy and the west that they actually have made in factory in china but theyre showing it on the market in china to the Chinese Consumer who understands buying abroad or buying from a retailer is much likely to be more costefficient than buying from one of the brands directly. Done did ay study focusing on jewelry or what are the most popular brands in china . The brands that are making the largest impact are some of the usual suspects we focus on here on the states or in europe brandsrberry, chanel, more popular in china than the united states. Brands like coach. One of the ironies we found was only a quarter of these actually are directly sold online from consumers. How well is alibaba meeting demand for luxury goods . What else should be doing . It is crushing it right now as it relates to the Chinese Consumer and luxury goods. It is not being sold directly from the luxury brands. While the brands themselves have advocated their position, alibaba resells the product. Is looking to work more closely directly with the brand. They have a multibilliondollar business both on top of the retailers. Earlyuite this to the 2000. If you look at the Music Industry or napster or the it is a time when these grants will step up and owning their own channels of distribution and also partnering with alibaba, or they will get is thisby the way that massive company. Anyone who shops in china knows you could go to any market and find counterfeit luxury goods of any kind. Sometimes, they look at a good. How much does that hurt alibaba and ultimately the brand . It does not hurt alibaba right now because they have a multibilliondollar Market Selling both unauthorized and black market to the Chinese Consumer. Stories ofcdotal Chinese Consumers coming in, chanel salesto the associate. Alibaba is doing fine. It is the Brands Taking a hit. We are recommending and focusing on is helping the brands understand better working with alibaba but also working on their own so they can grow the business. All right. Thank you so much. A quick programming note. We will bring you a halfhour and al, the alibaba story documentary about alibaba and the former coo of yahoo who struck the deal with alibaba many years ago. That airs tomorrow. A new apple watch. Legacy products for ceo tim cook. We will hear his comments about them next. Many questions were just last week when tim cook took the stage and laid out much of what apple has been working on over the past three years. The apple pay, apple watch. The apple is now swamped with preorders for the new iphone but the real test could be when the watch hits iphone stores next year. The changes tim cook minute apple, will they cement his legacy . We spoke with the executive team at apple, rare oneonone interviews here. Brad, i will start with you. Who exactly did you speak to in what sense did you get of how well the team works together . Lets we spoke with tim cook, johnny, who ran the eye team behind the iphone 6 and apple watch. Board members like bob iger and sue wagner. You do not get that kind of access from apple usually. They were trying to make two points. They are proud of the product this week and very much in apple style, they wanted to take their victory lap. They also want to impress there is a new openness at apple. Tim cook uses the phrase, defaulting to open. They want to be transparent about product plans and want to know, this will be part of his management style. The company was very secretive and opaque under steve jobs. Would you say it is indeed a new era . There is a little bit of a change. There is a little bit they are trying to capitalize on having the new product come out. They are trying to make it as big a deal is possible. More,is a little particularly in areas like corporate responsibility. They will give you a little bit more. This is a big moment. They have been facing a lot of criticism or questions over the past several years. They are ready to come out and say, companies are ready to innovate and there is a lot to look forward to. It seems the apple watch could be the product that really defines tim cooks legacy one way or the other. What do you get behind the making of the watch, how does this happen, and he is he the one trying to push this through . With the watch, they were looking to the past. , as theysting tidbit kept bringing in watch experts to give them lectures about why clocks migrated from towers to our wrists. Johnnie was really trying to understand it. They had to go on a journey to get things like the additional crown, the zoom scroll wheel on the side of the watch. They are quite enthusiastic about it. Tim said he already feels like it is a success. There are a lot of questions. Up. And it might go way we do not know how pricey it will get. It is not clear what the killer app is. It is a question on the watch. You really want to upgrade your watch every year . How much money do we have . Come on. Do we want this while we are in meetings or driving . There is too much on it at this point. Yes. The battery life is part of that. Charges really nicely. We do not know. We have not road tested it yet. About the feeling at apple . Your story talks about Nervous Energy and things are much more tranquil these days. A rising up of new executives taking on more responsibility. Someoneg we learned is tim cook has been relying on heavily, ted williams, a behindthescenes guy, a lot like tim cook. Tall and softspoken. They both went to duke and had early parts of their career at ibm. He is the person tim cook tapped when he really wanted to go forward with the watch. He is the one he put in charge. Bit of leaders coming up in the company. You get the sense tim cook and johnny were in sync, as johnny was with steve jobs, as far as we know. Absolutely. It is hard to tell. Apple is good at crafting their own narrative, showing journalists what they want us to see. Every indication we got, of course, we are pesky reporters. You find out he acquired steve jobss private jet. He designed the airplane and now he owns it. But look. He just hired his friend, a celebrity designer. They like to work together. This is a team that is not going anywhere. I get the sense they love working with tim and they are protective of him. , isre all buzzing around tim cook as good as steve was, eddie in these guys, they want him to get the credit. Interesting. One thing we also learned is that tim cook has left steve jobs office as it is. Enshrined forever. The fourth floor, any of the loop that headquarters, it is something tim cook has left in place, not as some sort of trying necessarily, but it is something he did not think should be touched. It is a not to the past as they tried to move forward. Continueon will it to stay on top, the brand . Absolutely. X essentialrger questions about growth rate and stock price, but if youre looking at the franchise, it is still healthy. Iphone 6, record orders, their beautiful products. We do not know about the watch, but the ecosystem itself is very healthy. About tv . G i do not want to hear that it is interesting. I feel like we did get a tape a tidbit. About projects they killed inside apple and he said, we have killed products where we do not feel we have enough control over the ecosystem and he said, taught sounds like youre talking about tv. There was a long pause and it was said, the interview is over now. Liked that he was looking he was working on an interesting answer and he said, is working on interesting eve asian. They do not have enough control over the content. It has not been killed, it has not not been killed. Basically. Us. K you both for joining it is a great read. Coming up, Silicon Valleys most audacious investor, we talk apple,oogle, facebook, and amazon. Which company will outlast the rest . That is up next. From google to facebook to apple to amazon, conversation in Silicon Valley is intense. Which of the four companies is the most dominant in tech . Will they be as dominant as they are today in the future . I sat down to pose these very questions on the latest edition of my new show, studio 1. 0. The book is out this week, notes on startups and how to build the future. Here is a sneak peak of what he told me. Do you have concerned that Companies Like google, facebook, apple, amazon, could ever become too powerful that they stifle innovation . I tend to think that does not happen a lot because there is always enough innovation to keep things flowing. That means someday you think google, amazon, apple, will not be as dominant as they are . I think they will be dominant for a while. They are great businesses. But i do think they will be dominant forever. D. C. Anyone or the other becoming more dominant . It is difficult to justice. Judge this. I tend to think of google as the one on an incredible arc at this point. Search monopoly is powerful and they are trying to extend it in two other areas. Into other areas. They are exploring other things, self driving cars, google glass. Vasily. As a businessman, these are attempts to extend the monopoly. I think self driving cars would change transportation may be as development of the car itself. When it comes to startups, you compare compelling startups to colts. Should they be more like colts . They should not be in the sense that believing something that is wrong. But it is always a good sign there is an intense understanding of something true that very few other people do him do. Musks company is motivated by the yeah the idea that they wilil messed up start up be fixed. Hinglse you say is a why not . Foundations are important. The first some of things wrong, it is hard to recover. I guess you do not think messed up tech out pennies beger than startups can fixed either. Ken yahoo and hp be fixed . And yahoo argue hp are not really Technology Companies at all. Technology companies in the 70s and 80s of hp and the 90s with yahoo . Even though the companies were Technology Companies and 80s and 90s, they are technology against innovation. Even though they are not Technology Companies, ken yahoo and hbv the fix . Fort is probably a mistake them to radically try to reinvent themselves and become Technology Companies again. You mentioned marissa mayer. What are her chances of really turning around . The best ceofar yahoo has had in a decade. She should not be evaluated on whether she that invent something new. That is setting her up for failure. Existing businesses are really big. If you could improve those incrementally and make them work, that is fantastic. Is, we wantedophy flying cars and instead, we got 140 characters. Tofacebook changed the enough take our civilization to the next level. Facebook is not enough. We need many different kinds of things. Flying cars alone are not enough either. Is facebook a monopoly . Not as much as google at this point. There are still emerging competitors in the social networking space that come up every year, twitter, snapchat, all of these companies emerge on a continual basis. Do you worry facebook take it distracted joan companies, Virtual Reality question mark it is always a challenge. You have to do some new things, because you are not in a static world. You do not want to do too many. You want to do just the right number of things. Craziest sector you might enter that we would not expect . There are all these different sectors we have looked at and we are tempted to do things in. One that we have started to look at in the margins that is wildly out of fashion is the Nuclear Power industry and is it possible to build safer, cheaper, better reactors with all the new technologies. When you look at the technologies, it looks like the answer is definitely yes. What is the most audacious about howave pondered humans could potentially survive in the future . We should give Nuclear Power serious considerations. It does not emit greenhouse gases. I put the date in the second half and the 21st century, a little bit further in the future. But it will happen. Will march the first . Last there are a lot of things about mars that make it the natural other planet in the system. Yes. For more in my interview, tune in to studio 1. 0, coming this october. The space race is on. There are major developments involving big tech names. We will find out what it means for nasa next. The space Flight Company backed by amazon and jeff asus will partner with united launch new rocketo develop engines. This coming a day after nasa awarded boeing and elon musks spacex a 6. 8 billion contract. This marks the first time astronauts will be flown into into outer space since nasa retire the shuttle fleet in 2011. What does it mean for the future of space travel . Im joined now by the former currentlyy director, the general manager of the Airline Pilots association. Thank you for joining us. All, lies nasa signing the contract now . This is a path we have been on for quite a while. It is an exciting way to progress in the space program. We should have been doing this earlier, the Space Shuttle itself was an Amazing Technology when developed in the 70s. 30 or 40yearold years later, we s