Asked her fees are the top frustrations. Local news, 24 hours a day and more than 150 news bureaus around the world. Next is bloomberg west. On cory johnson in for emily chang and this is bloomberg west. The heir apparent to the media empire is stepping down. Myth, we will tell you about teslas excuse for missing its own forecast. A slew of Tech Companies trying onlinee a light on how lenders are working. But first, to a developing story. The disney chief operating officer is stepping down. A new twist in the Succession Plan of the Worlds Largest entertainment company. Our reporter covers disney for bloomberg. Chris, glad to have you on. This is a surprise. Chris a big surprise. The market down in afterhours trading. Our Analyst Thinks disney stocks will fall tomorrow as well. Wall street does not like uncertainty and now they do not have an error apparent. Job a littlet this over a year ago. Why is this happening now . Disney had no official comment as to what happened. Of losse reports support for tom as the next ceo. We are not getting a clear reason at this point but it means they have to start over from scratch. Its a long process that takes s as number two. Some of the other candidates have departed. They will have to probably look outside. Cory Interesting Times that disney with that breaking news. We are lucky to have you come in for bloomberg news. Thank you very much. Growing reports about increased risks in peertopeer lending, big activities for tech firms that bring transparency to those loans. Theyve issued 22 billion for several startups. Us, anddle is with joining us from new york, our panel. I cannot hear anything. Cory online lenders are creating tens of billions of dollars of loans. A new Company Helps us understand the data from those loans. We have a roundtable, tell us what this means. And investoru are in the peertopeer marketplace that is growing at an unprecedented pace. What youre really want is a view on the risk. There have been a bunch of red flags in the past few months ranging from the specific. It might potentially downgrade a few bonds. There has in a broad risk off environment this year. All of this is piling up in what investors are looking for is a clear view on the risk. What does it take to really invest in this online lending marketplace, what data do i need to be able to do that, while avoiding as much of the risk as i can . Thats really where the startups have found their niche. They are saying to investors, if you purchase our software, what we can give you in return is exactly the data that you are looking for. Autonomous Research Predicts 40 billion in this market this year and 60 billion next your. Excitement from your investors also. Where do you see the role of these tools helping investors understand what they are buying . This isve to realize new in the online marketplace environment. As a marketplace, we work with about 75 lenders across small business. We are seeing rapid growth. The new providers are helping to create maturity around marketplace lending. What the providers can do is standardize the data and provide transparency in a way we did not have before. Saw this market really grow. Do investors understand what they are buying when they buy this paper that can be created by Companies Like lending club and others . This is institutionals asia and of the space. Institutionalization of the state. People are looking for other things. Once you get comfortable with portfolio construction and the actual risk, these are great tools that will allow bigger and bigger amounts to be deployed. Cory how big of investment are we talking about . Typesre are all different. You can have a small family hold onr a large purchases. Larger than 150 million. In the fall the credit market shut entirely. People are still finding very attractive risk adjusted yields. Are your folks in a certain niche of borrower or the people who will buy the paper ultimately . Streetfocus is on Main Business owners, landscapers, dry cleaners, who are looking for financing to grow their business. Is average loan size 30,000 40,000. They go as small as 5,000, up to a couple Million Dollars depending on the lender they work with. Cory you have uncovered all these companies. Is there a particular thing they all have in common, or some way they differ greatly . They differ in the extent they are involved in the zation chain, which allows them to grow. As we know, back in 2007 it caused some issues. We know what happened with the subprime mortgage boom, it eventually fell apart. The difference between the startups is the extent to which they want to get involved in securitization. Some of them want to get even reallyvolved with how to securitize these loans. Cory you worked on the institutional side. Are we going to see some borrowers blow up here . In any asset class when you see people deploy capital and they are little more careless and they choose to be, you will see people having problems. What others are doing is useful. They provide institutional research. You can look across the asset class in figure out what the right assets are. Cory we dont really know how the assets will behave in the falling market. You just dont know what the borrowers are going to pay back and where they put it in their own credit stat. These are people who had to borrow money sometimes on a shortterm basis because they had issues. The last six years have been the best time to lend money to people. The advancements in data on each of these platforms gets you comfortable with their accumulative default. Data is important and will only get more important. 78 oncan give someone a lever return, that is very powerful. If you can give people the tools to ascertain the risks and returns better, you will see a bigger flow of capital. Thank you to our panel. Paypal is starting to feel the as they are brought into question. Similark square made a move to expand its presence online. Joining me is the global head of product engineering for paypal. Bill, what do you make of these , particularly this new amazon product . Ofthere have been a lot players coming into the space. Its just an indication that a lot of others are now recognizing that online and mobile payments is a really attractive place to be. A big part of that realization is that people see a fundamental change in buying behavior that is afoot, largely driven by mobile. As it happens, it has been a fantastic tailwind for the paypal business. The digital wallet is becoming a musthave part of the buying experience and it is driving great growth in our business. Sharee consistently taken in the market overall. We see it as a great rising tide for many players. We receive a great deal of benefit from these macro shifts toward ecommerce and mobile devices that have been our sweet spot since the dawn of paypal 15 plus years ago. The shift to mobile at this point is not anything new, and growing it may be the slowest pace in a long time despite the strong economy. I wonder if the Payment Solutions truly need to be new. Mobile is moving users are moving to mobile as their primary Computing Device. That is a pretty profound change in Human Behavior and people are demanding different buying experiences. Ecommercealf of all shopping happens on mobile devices. Theres only 10 15 of purchases that occur on mobile. Its evidence of the fact that can choose a mobile Computing Device but they are not willing to purchase unless they have a great buying experience, which is why we overwrote the industry by 23 times given the experience we have. Teen this week is your Year Anniversary of mobile payments, so this is not anything new. The very genesis of paypal was beaming money between two ago. Pilots 15 years the first mobile phone transaction was exactly a decade 2006. April 30 plus. A full we did 66 66 billion of global volume last year and we see that growing tremendously. This is something that is a huge shift in the space. The digital wallet lying experience, its now a musthave in the mobile world. People are not willing to enter in credit card details and shipping address and all these things. Despite the fact that paypal is 15 plus years old, we are growing beyond our growing to our potential. We are growing much faster than the industry overall. Cory thank you very much, good to see you. When we return, the first part of this weeks deep dive. We will look at growth and innovation in the wind energy business, after this. Cory legal woes mounting for sun edison. Creditors saying terraform a owes them money in a deferred payment resulting in the they want to get paid and save payment will be due immediately if sun edison files for bankruptcy. There has been a big acquisition spree accumulating billions in debt, pushing the company toward bankruptcy. Lets stay with renewable energy. Hearing from executives across the spectrum about growth and innovation. Last year for the First Time Ever the majority of new Power Generation capacity will be renewable, according to a report from the u. N. Energy, a Record Number of turbines installed last year. How fast is it growing . We sat down with michael garland and asked him how his business is doing. Text we operate about 3000 megawatts, the size of three Nuclear Power plants. Growingne of the faster , 500,000 5001000 megawatts a year. Are the things you have control over that are helping, or not . About 80 of our business we grow ourselves, meaning we go out and develop it and create a project from scratch, or we buy it from Small Developers who have started development and then we finish it and put it all together. We buy that 20 from third parties. Cory wind and solar are germanic lee different businesses. You see a lot of interesting numbers that relate to how the businesses are very different, whether in the places they exist farms than more wind solar. What do you see the things that differentiate the two . We look at increasing output. Nd cutting operation costs its a lot harder to do that with solar. Solar is much more of a commodity. It can be installed quicker and faster and there is Less Development elements to it. We like both. Can utility scale so we are not rooftop guys. The Clean Power Plan is the most important regulation right now to control carbon. The more we can control carbon require renewables in the system, the better off everybody will be. That will drive the most megawatts of new development opportunities. The United States or north america for that matter is not growing much and its a electrical demand. 1 . Rowing at since 2008 its been very flat demand. What you are doing is replacing existing inefficient or polluting power plants. Cory weve seen historic collapse of natural gas prices. Hurtu feel like that has , and iflopment of solar National Natural gas prices rise when we see even faster growth in the solar energy . Natural gas has replaced almost half the cold the manpower for generation. It has made the wind and Solar Industry recognized that we have to aggressively lower our costs. You cannot build a new power plant very efficiently at the low cost we are paying for gas right now. News not created to many power plants, as many as you might think. The wonderful thing about renewables to keep in mind is, we did these contracts for 25 may escalate at 1 per year for 25 years. Inflation may be at 2 . Nobody even in the gas industry thinks ask will be staying down there for 25 years. If you tried to do a 25 Year Contract with the gas producer, you will be paying many times what the current cost is. It really stabilizes the economics retail rates to the ratepayers by doing solar and wind. Gas prices will stay down for the next couple of years and creep up some, but still very low right now. Us to have to be more competitive, which is a positive. The negative is, its harder to convince people you should be buying wind and solar if you can buy gas at 1. 5 cents, but people like the idea of renewables better than fossil fuels. Cory that was michael garland of pattern energy. To John Carrington p. M. On the west coast. Comcast says it will work with groupon to bolster local ad business. Groupon says it will use the investment for general corporate purposes, including repurchasing stock. E. T is bringing the funk or at least the soul. Fromepisodes of soul train 19712006. And there will be a soul train concert tour. Microsoft upping the ante. What they are up to. Show me movies with explosions. Show me more like this. Show me previously watched. Whats recommended for me. X1 makes it easy to find what blows you away. Call or go online and switch to x1. Only with xfinity. Show show me more like this. S. Show me previously watched. Whats recommended for me. X1 makes it easy to find what blows you away. Call or go online and switch to x1. Only with xfinity. , and i am Ramy Inocencio you are watching bloomberg west. Passengers passing through Brussels Airport are being checked with new procedures. New security measures aimed to minimize the chances of repeat attacks. President obama says nato remains the cornerstone of collective defense for the u. S. And europe. Mr. Obama met with the nato secretary to discuss fighting the Islamic State and libya. Texaspreme court upheld a law that counts everyone, not just eligible voters, in deciding districts. It could alter district bounties and affect the latino population. The Court Upholds that it applies for one person, one vote. These Associated Press has obtained a patent copy of the Panel Recommendation that calls for a class of operators that could fly over people. From bloomberg world headquarters, i am Ramy Inocencio. It is just after 6 30 p. M. A. M. Inn new york, 8 30 sydney. Im joined with paul allen with a look at the markets. Call while we expect to see paul while we expect to see some declines on the nikkei, new zealand is the only up and open, and looking pretty good. Up. 2 . A busy day out of australia. Trade data for the month of february. A narrowing deficit of 2. 5 billion forecast. It is an improvement on the january figure of close to 3 billion. Then, the big 1 in six hours time, the reserve bank of australia will release its decision and we are expecting to see it no change. One of percent of those surveyed think we will stay stay put, but the more you push timeout, more expectations of a cut grow. We will watch for language around yesterday and dollar, which has weekend to about . 76. India, also a clearcut decision 33 of 37 economist pritikin a 25 basis point cut, which would take the cash rate down to 6. 5 . A note on japan ill be watching for any details on the frontloading of the japanese budget. What we are of watching across the asiapacific this tuesday morning. I am paul allen for bloomberg tv. When you think microsoft, you had better start thinking about the cloud. On friday, the cfl told us about a cfo told us about a cloudbased association with bmw. We live in it was a people expect things to be uptodate, but they do not want the moment of a big upgrade. That is a wonderful thing about the cloud. We have bit the entire company on our Cloud Platform as a way for companies to build new types of applications. They will do great things. Another microsoft partner toyota. The carmaker says the Microsoft Cloud Service will free our customers from the tyranny of technology and help us return our own humanity. Wow. The toyota executive, zack cakes cks yous zack hike cannot, on a tech show and talk about Technology Goal here any technological tear in the. [laughter] icks we just wanted to be easier. You should be able to get in a car and say i am hungry, and the car should know enough about you and you want mexican opentable can see there is an open table for you. Cory i want in and out rigors coming out of my glove box. You are partnering with a company that gave us control, alt, delete. How much lines of reliability do ferry that would be acceptable on a desktop that you could not have in a vehicle failure they would be on a desktop, that would not be in a vehicle . Hicks toyota connected is a toyota start up in partnership with microsoft very much focused on data analytics, management, and creating new Data Services for our cars, and also throughout our enterprise. It really is the central, global data hub for data science for toyota. Cory as you guys do this with microsoft, how much time do you spend working with them . Do they walk in and say we have this, we can tweak it for you, or do you sit in whiteboards with a bunch of people in a room and say what do we want . Mr. Hicks it is a little bit of both. We will have some of their engineers onsite. We have an idea of where we want to go with this. It really is about as i said earlier, making it easier for our customers, creating a new relationship with our customers, and microsoft is at the table, helping us figure out what is the best direction to go to. They are an important part of it. If the solution happens to be another technology, we go in that direction as well. Cory so, it is not just a microsoftonly solution. Mr. Hicks that is right. If you have your android or your ios, you will get in your car and still have a great experience. Cory finally, as you evolve these things, how short is the time you develop electronics compared to how many years it takes to develop a new car . Mr. Hicks that is the opportunity. As you said in the earlier segment, it really is about the cloud. With the cloud, we can deliver pps based on what the users want over the air. Instead of having to wait to have your nextgeneration vehicle, he can change the experience tomorrow. That is what this is about giving the consumer a new experience throughout the ownership cycle. Cory toyota north american vice hicks