Its mobile Payment Service into china next year. T would see apple pay teveated been on the iphone, ipad and apple watch. The market so far hong kong and china are currently closed for lunch but heres how theyre trading in the morning session right now. This is a picture of singapore, tokyo, and mumbai. The nikkei surging after the b. O. J. s decision. Back in hoff half an hour. Time now for bloomberg west. i ¿emily i am emily chang, and you are watching bloomberg west. Coming up, apple polishes up ts Core Management team. Cook adding a new coo. The crossborder talent right, Silicon Valley looks to canada for the best and brightest in artificial intelligence. Show times secret weapon. How the cia helped make homeland one of the most timely and popular shows on television. Apple making big management moves today, naming Jeff Williams as its new chief operating officer. Its a job that hasnt been filled since tim cook left the position to become ceo four years ago. Williams has worked at apple for 17 years and supervise the launch of the apple watch. As far as todays executive shuffle, Johnny Sergio was promoted to Senior Vice President for hardware technology. Phil shiller will take on leadership of the app store, f tmple or myron will join apple as Vice President of marketing communications. Joining me now to discuss, bloombergs head of global technology, brad stone, and with us in new york, daniel ive. Brad, you interviewed Jeff Williams last year. Who is he . Brad everybody calls him tim cooks tim cook. That is a huge compliment. He is the guy at apple getting things done. He has historically been in control of the supply chain. A great illustration of what he does occurred last year. The apple watch project existed inside johnny ives studio for years. In 2013, tim put Jeff Williams in charge of the watch project, and it became a reality. So hes known for getting things done. Emily i pulled a quote from use your story where you say hes an uncanny cook clone. Ll, soft spoken, inexhaustible memory for tech both men have mbas from duke details, university and spent early years of their careers at ibm. Daniel, what do you make of this promotion of Jeff Williams . I know tim cook said today he had already been doing this job for years, but do you find anything interesting about the timing . Daniel i think the timing is interesting. Apple definitely has some headwinds. Weve seen it with some of the success softness. They really need to fill this role, and cook needs to have his righthand man. They are going into a pivotal 2016. I call it make or break from a rowth perspective. Thats why hes filling the role. Ultimately, it does free up some of the other management teams to look outside to m a and other projects. I think apple and cook for the first time in a while have their back against the wall. That is why the timing is not coincidental as we go into 2016. Emily do you think it is make or break . Is apples back up against the wall . Brad certainly, like all companies, they have their challenges. In the key smartphone category, they are running up against the aw of large numbers. Theyve diplomatated. The category is maturing. The phones tend to be incremental. This is an iphone 7 year, so the market will be expecting something significant, but more than that, we are seeing two years into it, tim cook putting his mark on this management team. Hes made other changes, scout for cell leaving apple. Some other small moves. This is a continuation of tim cook fully putting his imprint across the organization. Emily whenever you name a number two, talks of succession happen. Do you think this is tim cooks Succession Plan . Daniel i think there are some potential heirs. Right now, they definitely have a lot of wood to chop just in terms of getting growth on iphone 6s. But as your guest al lewdits the iphone 7 year. To, they need to expand, whether it is streaming, wearables, acquisition into enterprise. Right now, they definitely have a bit of an uphill battle come and you can see its a little bit of a proveme stock. That is why they are bulking up the management team. This is strategic from a timing perspective, but also in terms of product strategy. I think ultimately they fit like a glove in terms of who is filling the roles, but now it is, we need to see results, see products, and potentially mna. M a. Investors are a bit frustrated at apple, and you see that reflected in the stock. Emily the promotion of johnny is interesting. This was the guy brought into design the a chip. Apple has been trying to take the design of these chips in house. What do you make of that move . Brad its the importance of silicon to apple. The a4 which first appeared in the ipad and iphone 4, it was nothing particularly special or ast. Now the silicon is apples biggest competitive advantage, the fact that it owns the whole stack, and it is faster. It is allowing for new industrial designs. It is elevating synergy. He might be the most important guy at the company in terms of apples intellectual property and core competitive advantage visavis a lot of other Smartphone Companies out there. What is the significance of Phil Schiller taking on the additional role to run the app store . Daniel the app store is going to be at the center of the strategy now. Phil shiller is going to be a key ingredient in their success. I think it is something the investors like. You will see some changes over the coming year, positive changes, as the ecosystem expands and the app store becomes the underpinnings of the whole success. Brad to that point, there have been criticisms of the app store recently. The search and discovery is broken. The search is too difficult. Its hard for developers to make money. Bringing phil shiller into the app store, giving a veteran, Senior Executive direct control over it, increasing the visibility, and sending a message to the Developer Community that apple knows there are problems to clean up. Emily brad stone, daniel ives, thank you both for joining us. One stock we are watching, pandora. A favorable ruling on mood royalties was music to the ears of investors who sent the stock up 13 . The governments copyright royalty board said pandora and other web radio providers must pay artists 17 cents for every web stream. That was much lower than they had requested. Pandora isnt quite out of the rules. Content costs continue to soar, and competition from apple music is putting pressure on its margins. Coming up, a match made in heaven. Two Silicon Valley heavyweights uber and facebook have teamed up to make booking a ride even easier. More on that deal when we return. You may not know her name, but you know her work. We sit down with the woman who makes showtimes homeland series a ratings powerhouse. Emily a story we are watching, the head of googles self driving car unit says hes disappointed by a california proposal that would put the brakes on googles esearch. The draft rule would require a self driving car to have a licensed driver in the car at all times. Program director Chris Thompson says this maintains the old status quo and fall short of allowing the technology to reach its full potential. California has more cars on the road than any other state and often ends up setting the standards for the rest of the auto industry. At 62. 5 billion dollars, uber is one of the biggest unicorns out there, but the company says its not ready to go public just yet. Ubers chief Business Officer spoke to bloomberg earlier today. Uber is 5. 5 years old. It is a very young company. Weve got a long way to go. I think travis the other day said, its like asking a ninth grader what they are going to wear to the prom. You got some time. When we are ready to go, we will go. To go just to go is somewhat of a negative side sign. We are motivated to drive the value of this company, and we will do it for as long as it takes. Emily we are joined by Eric Newcomer who covers luber for us and alex brinker who covers ipos. Nothing really new from michael, repeating what travis has already said. Eric the idea that uber says its not close to an ipo isnt a surprise. When you look at the valuation and the fact that the company has raised 10 billion, its hard to not be like, what, this company is not going public soon . But consistently thats what uber saws and has been telling its investors. Emily alex, what are you earing from investors . Bviously public investors who havent had a chance to get in on some of these rounds have been chomping at the bit. Returns have not been great this year. Any kind of upside for them, they want to get their hands on. It does seem the company is just not there. They have expansion issues. They are looking to other industry verticals like delivery. They still need to figure out their presence in china, and they still have this overhang with whether or not drivers are going to be classified as contractors or as employees. There are still things to figure out and iron out that if they were to go public would make for a very thick risk section in the prospectus before they sell shares to investors. Emily emil also spoke about china. I would like to roll the clip where he talks about just how big china is becoming in terms of becoming part of their usiness. Emil im really excited about china. Five of ubers top biggest cities are in china now. Five our top 10 in terms of the number of trips we do. Beijing just got to be our number one city in the world, bigger than new york and london. Emily anything new there . Eric the thing to Pay Attention to is trips. Uber is doing a 10 of trips in a ton of trips in china. I think the amount of revenue they are doing in china is what to look at through the question we should be looking at is, they are doing a lot of trips in china how much money are they doing . Emily this is a company that as raised 10 billion. 62. 5 billion valuingation. Alex, are they setting themselves up for a potential this is the most highly valued unicorn ever are they setting themselves up for a potential down around . Alex you have to think that the Scarcity Effect has played into these valuations, and you also have to look at, not only are they one of the biggest unicorns, but they are bigger than 4 5 of the s p 500 in terms of market cap. When you look forward at some of the things eric is talking about in terms of revenue, you have to think about the realistic multiples they might be able to fetch, which is how these public investors are going to look at this company. We dont necessarily have the granularity yet. They are closely held. Given the ipo market now, tech ipos have not done extremely hot. This would be an outlier. It would be big, as the likes of alibaba was big. There might be more excitement that uber could drum up when it decides to go public, but this is one of the fears. Private rounds have really raised the valuations to a level that cant be attained when public investors start to get involved. Emily i also want to talk about this deal between uber and facebook. They struck this deal whereby you can click on an address in Facebook Messenger, and it will call a new uber for you. Its similar to a service that wechat has. Its very widely used there in china, because that is how people use wechat. Its not necessarily how messenger is being used yet. How big of a deal is it . Eric i think its interesting, but i agree with you that its not on the wechat scale. Wechats super popular in china, whereas Facebook Messenger competes with regular text messaging in the united tates. Its not kai quite the sort of asumede mode of communication that it is in america. The scale for uber is a little smaller, but i think it has Great Potential for, i message my fans, we say, lets meet here, and we arrange our rides. Emily what other partnerships does uber has like this . Eric they work with google and google maps. Those are some of the important ones. Microsoft is a strategic investor. There are areas where uber is saying, were such a big brand, bigname, all the Companies Want to partner with us. This is an Early Partnership with facebook. Emily i want to ask you one more question about this lawsuit. The ceo of uber was sued by a customer for pricefixing. What is going on here . Eric its a little weird. I read it this morning. Basically,travis has driven a number can an uber before. He is competing with all the other drivers who drive for uber, but uber is in the process of setting the price at which all uber drivers have to accept. The lawsuit is arguing, travis is pricefixing and making the other drivers compete with him and what they are charging people. Thats how i understand the case. Emily does travis drive regularly . Eric i guess it doesnt surprise me that the ceo of uber is occasionally driving, but im not sure. Emily interesting. Well have to see how that plays out. Alex, eric, thank you both. The Financial Force is strong with disney. The latest installment of star wars is shattering Box Office Records around the world. The movie opens thursday in the united states, and fandango says presales for the film have broken records. The force awakens pulled in 14 million overseas wednesday when it opened in 12 international markets. Observers say the movie could challenge the alltime Global Box Office record of 2. 9 billion set by avatar in 2009. Coming up, a brain drain north of the border, as Silicon Valley raids canada for top researchers in artificial intelligence. Details when we come back. Emily airbnb is trying to make new friends. The startup is reaching out to some of the largest u. S. Apartment owners, with the aim to work out a deal that would allow tenants to rent out a nit on airbnb with the landlords blessing. Avalon bay, Camden Property trust, some of the Companies Said to be in early talks with airbnb. An agreement could include some kind of revenue sharing, but airbnb would have to reassure owners they have a say over what happens at the properties. Canada is fast becoming known s a leader in artificial intelligence. Its origin of Pioneering Technology now found in facebooks facial recognition powers. Canada may be losing its edge as an ai leader as homegrown experts defect to Silicon Valley. They are getting hired by the likes of facebook and google. I want to get more insight from the Vice President for Product Development from the canadian tech startup maluba. Thank you so much for joining us. How did canada become such a hotbed for ai talent . Mohamed thanks for having me. Its a great question. We have always been pioneers in Computer Science in canada. In ai, we have had three mazing cofounders. All of them were based out of universities in canada, and they were able to do really cool Pioneering Research in the space that led us to where we are today. Emily basically, your technology teaches computers ow to talk, is that right . Mohamed we are Technology Company that uses deep learning techniques. Solving natural learning problems. An example of what weve done, weve built out voice Search Experiences on tvs, phones, cars with a lot of top brands. Emily are you seeing a brain drain from canada to Silicon Valley when it comes to ai talent in particular . Mohamed yeah, absolutely. The crazy thing hasnt been fostering talent. Canada has been doing an amazing job of cultivating alent. Eye a a lot of the Pioneering Research has been demun canada. Ifmost of the problem is retaining this talent. There is a statistic that says 350,000 canadians are based in Silicon Valley. Those are some of the smartest canadians who have left to do their own work, leaving to google or facebook or some of their own startups. Emily we are not just seeing facebook and google hiring ai talent, but also buying ai companies. If facebook comes to you and says, here is a few hundred Million Dollars, would you sell . Mohamed if facebook came to us with a few hundred Million Dollars . T depends. A lot of the reason why we stayed in canada was to build out our experiences over here. The innovation is based over here. A lot of the canadian startups are being bought out and going to the united states. That is not something we want to do. We want to be based out of here. We want to build out over here. For example, we created and started a new office based out of montreal. Emily what do you think are the most Innovative Ai Technologies being developed in canada right now, and what are the big themes . How will we see these things play out in ai next year . Mohamed a lot of the cool stuff that is happening right now is around advancements of using techniques like deep learning and image processing. We have seen a lot of advancements around that. There ps a lot of buzz around google boeing able to see Neural Networks to the point it could recognize cats. In the past, weve seen a lot of advancements around images and speech recognition. Next year, i think you will see a lot of things around language understanding. Ai systems would be able to understand what we are saying, speak and communicate back to us, something weve never seen before. A lot of the stuff that is happening in deep learning is the concept of self driving cars. Those are areas that i think would be interesting