I think its just a matter of time before wage growth turns up. Meanwhile, the fed president Dennis Lockhart said todays jobs report is no reason to hasten and adjust rate hike. Major developments today in the houston xl pipeline, hours after Nebraska Court throughout the case. A showdown with president obama looms, because he says he will veto this bill. Sony is poised to recoup money they spent making the interview. The companys rate and 36 million in online sales. Sony should be able to recoup the 60 million it took to make the film. The interview, is being released internationally, on dvd, and streaming. Facebook is pushing deeper into video, quick fire. The Company Delivers technology over the internet without second price and quality. Terms were not disclosed. Facebooks video feed tripled last year. We begin with fastmoving development in france today. French police have confirmed that the two suspects in the shootings are dead. A dramatic series of standups, and to separate hostage situations. We are monitoring this very volatile situation from several fronts. Let me start with you. Walk us through what happened. The main suspects have moved inside a publishing house, a building in a village about 10 miles from the airport. They were staying there all day. Apparently what we learned in the past half hour is that the hostage they were taking inside was actually hiding in a box. He was giving information to the police. He was giving intelligence to people by sending text messages. He helps a lot in the timing of the operation. The Intelligence Team started to move, and the robbers who have been killed. We actually have learned also in the past hour some pretty disturbing documents. Release by 124 news hour channel here, who actually talked with one of the brothers and talked with the gunman who was at the other attack. They decided not to broadcast those interviews until after the operation, not to interfere with the Police Operation that happened around 5 00 p. M. In these documents, that were broadcast about 45 minutes ago on french television, the gunman who killed five people in the kosher supermarket said clearly that they were synchronized for the operation, that the robbers were taking care Charlie Hebdo of the taking care of the Charlie Hebdo journalist while he was taking care of the policeman. A policewoman was shot and the man who shot that policewoman was identified as the same man. A very disturbing document here on french television. In the investigation will be starting. It is now clearly established that there is a link between these terrorists. Indeed. President Francois Hollande saying this was an antisemitic attack, and the perpetrators have been neutralized. We have a correspondent in paris outside that market. Whats the latest . From outside the market where the interior minister was speaking. He said something very important. That we have a beginning, this really shows the enormity of the attack. Im back outside of the office of Charlie Hebdo. This is where reading started off, two days ago, 12 people were killed. We heard from Francois Hollande exposing his condolences, talking about frances resoluteness. Four hostages were killed. Hans, the president just under to speak. I want to jump to that. Here is president obama. Before i get in to the reason im here today i want to begin by saying just a few words about the tragic events that we have watched unfold in france over the last several hours and days. Because events have been fastmoving this morning, i want to make sure and comment. I just go to my counterterrorism advisor. We have been in contact with the french government throughout the strategy. At the moment the attack took place, we directed all of our Law Enforcement and counterintelligence operations to provide whatever support that are allied that our allies need in confronting this challenge. We are hoping the immediate threat is ours old. We think the courage is now resolved. We thank the courage of the people on the ground. The french government has to remain vigilant. President Francois Hollande has said they will do whatever is necessary to protect their people. France is our oldest ally. I want the people of france to know that the United States stands with you today, stands with you tomorrow. Our thoughts and prayers are with the families directly impacted. We grieve with you. We fight alongside you to uphold our values, the values that we share universal values that we fight together as friends and allies. The world has seen once again that terrorists have nothing to offer but hatred. We stand for freedom and hope and the dignity of all human beings. And that is what the city of paris represents to the world. And in that spirit, we will endure forever. Long after the scourge of terrorism is banished from this world. [applause] im in knoxville, not only because it is like knoxville. [laughter] im here today because one of my resolutions is to make sure that folks across this great country feel like they are coming back. Then there is no doubt thanks to the steps we took early on to rescue our economy and to rebuild it on a new Foundation America is coming back. [applause] president obama is talking about the terrorist attack and talking about sharing universal values with people of france. I want to bring in phil mattingly, who is in knoxville tennessee. Phil . I think what you heard from the president is what we have been hearing from white house officials behind the scenes for the better portion of the day. The u. S. Is a very close touch with the french government both on the Law Enforcement side and counterintelligence. The u. S. Will and to give whatever resources the french made him a little figure out what happened this morning, but more broadly, what could be happening in the future. He did say that the immediate problem does appear to be resolved. The information is getting from lisa monaco, who recently briefed him. He did note that the longterm situation remains fluid. That is where the u. S. Capability will come into play. The french intelligence community, french Law Enforcement, they really try to figure out what happened, how this came to be. And if anyone else involved. A of work left to be done on both sides of the atlantic. I think the u. S. Will play an Important Role going forward. Phil, thank you. I want to get back to hans is in paris right now. I want get back to what people are saying in france, in paris. Im struck by the notion that the satire of the sony creation the interview, was under attack by kim jongun, here we are with a much more disturbing attack of the political satire. A political satire from Charlie Hebdo. I wonder what this says about french culture . What we have is a response here from the french Media Community at large. They are going to put out an issue they were planning behind me on wednesday, when those jihadist came in and murder those staff members. They will put that issue out this month. But they will double, triple quadruple the number of issues they will put out. I have some support, they have printing presses. They cant do it here, is still a crime zone. But that has been the response from the french cultural elite. On the streets there are questions about how this could happen. But as a part of a broader conversation, the interior minister was just starting to talk about saying you need to have a difficult conversation. What we saw here in the last 48 to 72 hours, only portray is the enormity of the task for french culture and indeed european culture. One final an Important Note on sunday, theres going to be a march here. Most of frances political leaders will be marching here. On the low marital Angela Merkel announced she will be here. It will have a paneuropean feel. The very notion of freedom of the press freedom to tell a joke freedom of satire are literally under attack around the world. Describe to me the scene behind you. What is going on there . Pretty much every night, people have come here to pay their respects light candles. Its dark out in paris, but this is the city for the first for the third night, it has been lit by candles. Less that, they dimmed the lights on the eiffel tower. But everyone hundred yards or so on the streets, you will see candlelit vigils. You see them here, you see them down there. From all the entrances leading to this crime site, you do see that. Thats just one response from the french people. What is next there . Was the scene like this all assigned . All last night . To the police have the impression that this is really over . No, officials here have made it very clear that they are not lowering the threat level. There is still one unanswered question about a potential accomplice of the 32yearold who was part of the shooting in the south of paris yesterday. And who was, and the terms of Francois Hollande neutralized. There is still one outstanding person. Hans nichols. Thank you. I want to bring in peter cook, right now on capitol hill. Right now, it lots going on on capitol hill. How are lawmakers reacting to the paris news as they work in the new year . X its been a busy day for house members, voting on the keystone pipeline. In between, a lot of lawmakers trying to keep updated on what has been playing out in paris. Some of them, including members of the intelligence committees at Homeland Security committees getting briefed along the way, privately. Behind closed doors on exactly what is happening. Obviously, a lot of concern about whats happening there. And concern about the prospect of a played out in paris playing out here. Several aspects of this troubling to u. S. Lawmakers and members of the intelligence community. The fact that soft targets were the targets here. And the fact that the suspects involved may have gone overseas and received training, perhaps may have received orders from al qaeda in the Arabian Peninsula and a similar situation could play out with americans who have gone abroad and could choose to come back to the United States. Thats the biggest concern on the part of lawmakers ive been talking to today. There is a coordinated nature to this. These were soft targets, and people who had a lot of security. It wasnt enough. How is this going to change the way the surveillance debate goes on in congress . It will add a new wrinkle to it. Ive spoken to several members of congress, including a lot of them who were supporters of the intelligence committee, those who are skeptical about efforts to rein in the nsas toolbox, the cias toolbox going forward. They believe what happened in paris bolsters their case. Congress should be hesitant to alter the toolbox all that much. They are making the case that emma for example, the United States had these two suspects on the nofly list. The u. S. Had arguably more information than the french did on the nature of the threat these two posts. Posed. And yet it was the french they had to confront this. There will be a new debate with republicans in control of congress, a much tougher time passing changes that were talked about a few weeks ago. Peter cook, thank you. We continue to monitor all this breaking news here on libertarianism. Bloomberg west, bloomberg television. Bloomberg west, blueback. Will be back. This is bloomberg west. Im cory johnson. But foxes proceeding with an ipo. The ipo says they are going to raise as much as 116 3 million dollars. The ipo is a long time in the making for box, and its ceo. That was delayed, thanks to a choppy climate for tech stocks, and some pretty crummy financials from box. Joining us is the ceo and cofounder of ignite, a Cloud Storage provider. Interesting that box is going through this, even as the expenses show they are spending so much money on marketing just to acquire customers. Indeed, it is. Its one of those ipos that has been stalled for a long time. We are actually glad to see them finally get out, and we all wish them well. We hope its going to be successful. By doing so, just increases the interest in our space. In excess better for all of us. It makes it better for all of us. Your company does what, and how is it similar to box . The similarity is, we are both targeting the enterprise. The difference being that box is a vertically integrated stack. You have to use their clout, their product, and their acts their apps. When you go after the enterprise, the cloud is real important. That gives choice to their customers. But fundamentally, the commonality as we are both going after the enterprise. Why is this business booming so much right now, for dropbox for box, for ignite . The opportunity or the total available market size is huge. I fundamentally believe that we are all barely scratching the surface. Given how the space is evolving and the Market Opportunity getting bigger, there room for plenty of companies right now. Specifically as it relates to box, their growth has been fueled by a marketing expense that has been next ordinary. Is that because they are trying to get ahead of what dropbox is doing . And the only way they can do this is spending money and marketing . There is an element of that. We love the fact that box sells more, we sell more. They have more marketing dollars to spend. They create a Market Opportunity and for Companies Like us, it opens up the gateways that was the solution space starts getting interesting, they start looking for enterprise centric solutions. And that is an opportunity that we sees as soon as we can see an opportunity appearing in any of these industry verticals. Box for every dollar of revenue they spent they spent 1. 38 in marketing to get the revenue. Forget about the cost of all the revenue, just get those customers in the door, thats how much they spent. Their argument is that its recurring revenue. Once you get a customer in, they stay there. How sticky is an ignite customer and how sticky is a box customer . And is that stickiness different . If you are focused on selling enterprise, and not consumer enterprise, which is what box started with, the stickiness on the enterprise side is almost negligible from our perspective. The more you appeal to not just the user but also i. T. Which has been maligned in the past with the advent of the cloud the stickiness is going to be a lot higher. So what you are saying is that when box makes the argument that most of our customers are enterprise customers, and those customers are very sticky, you buy that . Why . I would differ slightly. A lot of their customers tend to be small medium businesses. Enterprises depend on your definition. Any customer that is a thousand employs or higher. When you do a good job of reaching out to your internal users, the number of tax points especially increases. As long as you dont screw up its incredibly difficult to take you out. When the roadshow begins in the next few days and weeks, what kinds of questions would you want to know about boxes business if you were an investor considering the deal . Would you want to know what percentage of the business customers are more likely to drop box pardon the pun . As an investor, you need to analyze their segmentation of the business by different years. Look at that return rates. Look at the cost of customer acquisition, or economics for all of these different segments. And then really decide where is the money . Wheres the beef . You cant say you can grow well in all three target segments given there are big kahuna is hanging out there, especially on the lowend of the market. You cant outcompete those guys. Pick the target market you will be good at, and show the economics to say you can do this. Now the republic, the screen it will be a lot higher. It will be an interesting roadshow. From a few early a purely financial point, it looks bad. Maybe they can use the money from the ipo to spend a lot of marketing, get more customers, keep the thing turning. Vineet jain, cofounder of egnyte , thank you. Last year was the strongest in the United States since the. Com bubble of 99. Apple has had a major role of putting americans back to work even though apple wasnt doing a lot of hiring. We bring you that story, and apples numbers, next. Its 26 minutes after the hour, which means bloomberg is on the markets. Im matt miller. Stocks are trading right now down across the board. Although not as bad as we had earlier scene. The s p down three quarters of 1 are in the dow down 150 points. It was down more than 200 earlier in the trading session. Take a look at a couple of individual movers here. The container store, though shares tumbling by the most in three months after the retailer reported thirdquarter sales and missed estimates. And helen of troy shares surging to a new alltime high. The personal household Product Company raised its 2015 outlook. Ah, got it. These wifi hotspots we get with our Xfinity Internet Service are all over the place. Hey you can stop looking. I found one. See . What do you think a wifi hotspot smells like . Im thinking roast beef. Want to get lunch . Get the fastest wifi hotspots and more coverage on the go than any other provider. Xfinity, the future of awesome. I want to recap the latest developments in france. The suspects behind the shooting at the Charlie Hebdoo shooting were killed. Other suspect were killed in a Grocery Store in paris. Hans nichols is outside the Charlie Hebdo offices. The latest we have, Francois Hollande is try to heal the country and move on and take next steps. For hostages died today four hostages died today, taken at a kosher Grocery Store. Francois hollande called it an act of antisemitism, and called Benjamin Netanyahu to express his condolences. Angela merkel will be taking part of the lunch here in paris. Its the beginning of the conversation about how you better integrate society come in with the proper role of government and Civil Liberties is going to be. It will be a long and painful debate, and one that doesnt have an obvious resolution. But it may be starting, and its arty starting in paris in many ways. Hans, thank you. Apple claims it has created more than one million jobs in United States since the start of the app store in 2008. That includes direct apple employees, hundreds of thousands of indirect jobs. Developers, suppliers, manufacturers. Apple did not give an exact number, but it would imply about 15 billion in revenue. Joining me from new york is jack, ceo of smart link, a Cloud Software firm that figures out how apps are working. Apple is one of their clients. These numbers are amazing. We know there are a lot of people working on apps. Our apples numbers right . They seem right to me. 25 billion generated is a next ordinary number. 50 growth from about 10 billion to 15 billion between 2013 in 2014 really implies that the app economy is real. When you consider the fact that about one Million People a day will log onto the internet for the very first time and its probably on a smart phone, its probably on a mobile device. That applies there is an extraordinary global opportunity. The summers feel right to me. The app these numbers feel right to me. The app economy is huge. Its interesting to me how distributed that is. 78 of them are not centered around apple, centered around bloomberg west, centered around the bay area. Most of them are all over the world. Where are they coming if they are not here in the heart of technology . I think that apples numbers said that about 625,000 jobs last year were created in the u. S. Alone. We are seeing jobs around software and Eastern Europe ukraine, russia, places like israel. I think this is a global phenomenon. There are developers everywhere, its very important that people understand the important trend around smartphone adoption, and the fact that people are using smartphones all over the world. They want to use apps in their native languages. That means there is next ordinary opportunity for growth. Apple hired a lot of people in their stores, 30,000 people in over 200 stores. You get to 250 stores, thats about the top number, at least in my sickly. Or you can grow at least domestically, where you can grow. How important is that kind of employment for apple in the world of technology . Im not a store analyst cant really comment on where apple is going to go next. What i can say is that i see apple Opening Stores in china and places where they have a huge user base. I think it will be important that companies and brands can reach consumers where they are. One of the nice thing about smart phone apps is that users are a your fingertips everything will day, interacting with your brand. The more you can bring Something Like an apple store directly to your customers and give people that facetoface support, the better off you will be. Jacket, are these good jobs jack, are these good jobs . Is it a stable job, a job you can support a family on . Absolutely. I would say the demand for highquality developers is extremely important. Its a global phenomenon. Even just as smart link alone, we have our development forced to strip it of between distributed between new york and ukraine. Thats a pretty powerful thing. Developer jobs are absolutely one of the most coveted Jobs Available right now. I dont think thats ending anytime soon. Jack welde, thank you. One company is keeping a close eye on the annual show. For the biggest hits, that story is next on bloomberg west. The winners and losers of ces matters a lot to Companies Like logitech. Logitech makes the keyboard, the mouse is, the speakers that connect to all your stuff. This company has to make important bets around what was important at ces. Lets go to logitech ceo. I asked him what he saw at ces this week. First, its amazing the breadth and depth of whats happening in electronics. It is stunning. Its the best time to be in this business. How so . You used to go there and keyboard area. And the computers and the tvs. Now you see the rounds and everything healthrelated. And everything home related. In terms of the places the products are going, one of the technologies behind them . Do you see a unified theme in term of offerings . Bluetooth offerings are exploding. Anything bluetooth is popular. There are a lot of things in the home of. Its another form of wifi, bluetooth. Just another protocol. There are a lot of things happening there. At the end, theres a lot of opportunities. In the case of logitech, look at all this stuff. What kind of meetings does your company take a logitech . We do several things. I saw a retail customers from all over the world. Its a very efficient place for that. Second, i probably met one of five entrepreneurs there. 25 entrepreneurs there. We are looking to expand into these spaces. Its very interesting. I spent a lot of time looking at new things and new products. In terms of looking at these products, how do you look at what is going on . What is your methodology to make sure you are seeing whats important . Or do you just wander . I do a little bit of happenstance wondering. But we have a lot of areas where we work. We have four key growth areas, and a new area that we havent announced yet. We have seven different categories for building things in right now. We are looking for things that either accelerate us or highlight some thing we are doing that can go faster. Tell us some. I would love to. I can show you something else. One of the categories we are in some of the viewers will of art is seen. Already have seen. I have one at home and. I love to hear when people have these in the shower. We Just Announced the mega boom. If i turned it on, we are sitting in front of a huge window. Rental is windows. It will rattle those windows. This is incredible, it has a 24 hour battery life. It has 360 degree sound. How it is doing . We have had an incredible year and a half of this. We launched it back in may, a year ago, two years ago this coming may. It has done extremely well. In the u. S. , were right at 10 share. We went from nothing, its become our number one product. 10 market share in the Bluetooth Speaker market. Its our number one selling market. More than your keywords . Keyboards . Is growing very rapidly. How you decide which products to worked with . You want to be with the ipad i dont even know what the number two tablet is. Samsung. How do you decide what other products to make product for . We look at peripherals to make in terms of scale in consumer experience. We want to really enhance. We want to give people another reason to buy an ipad will he make one of these. If you are enhancing the htc whatever, the xyz tablet that no one will use, what good is that . There are things that we are not working on that we could. We have more opportunities than we could possibly get out right now. Were focused on the ones that we feel a really exciting, highgrowth, sustainable business. How you decide . We look at what the trends are in technology and consumer experience, and where we think we could add something significant. We created four new growth businesses, and we have seven more i can talk about. One of those businesses that is working for you right now . The Bluetooth Speaker business is taken off. The Gaming Business has taken off. The Video Collaboration business is a way to have a videoconference experience in a small room for under 1000. You drop it on a desk, plug your computer in, you have videoconferencing. Its very high level. Logitech ceo bracken darrel. Bloomberg west, will be right back. I am cory johnson, and this is bloomberg west. Thanks to go pro, extreme sports have been catching on. A crew has been documenting two rock climbers as they try one of the most dangerous ever. We are joined by the filmmaker peter, and our very own kim shriver, our Business Analyst who suffers by sitting next to me and also a collegiate climbing champion. Kim why is this getting so much attention . So this climate is essentially the hardest free klein in all of history. Climb in all of history. Free, you do not have to pay for it . Do not have to pay for it. It is using your own body to propel you upwards instead of pulling on broke or gear that might be in the wall. You have safety equipment, but you are using only muscle. Yeah, it is pretty much just you. Peter, talk to me about this business that fits with all of this, going with all of this in terms of shooting this movie and making this kind of movie . I have been making rockclimbing videos for 20 years and my partner, josh, he is actually out in yosemite up in the wall, and in the valley working with the climber. I am behind the scenes on this one, which is why im speaking with you guys. We work with Companies Like patagonia, north face, companies that sponsor these athletes, and we put together films. We have a film tour. We do television series, and however we can sell the movies is how we make profits. We sell digital downloads dvds license the footie footage. Talk about what these revenues are like and how they have changed. I feel like we are seeing more of this in broader culture. There was a citibank ad i could not get away from, but it is compelling to watch this stuff. Has the popularity changed in terms of who is paying to see your movies . I think the popularity of climbing has changed and the industry sees that. You see growing in Companies Like cliffbar, which had the climber in their logo. They are extremely popular mainstream companies well beyond the extreme sports culture. For us, there is wider interest we have wider distribution that we did 20 years ago. I think climbing with youtube and people being able to see what is going on up there on the cliffs, it has become more popular and people have a better understanding than they did 20 years ago. Kim schreiber, when you see people climbing, are they inspired by this city back citibank ad . People will watch the films and see the movies people are making and go out and try to climb themselves. The gynm communities are growing where people go to indoor gyms and then desire to go outside. I think the films have become a way to bring people together and inspire people. Technology is changing the movement, movies, making them more available more people ive seen them, and more people are showing up in the gym. Exactly. It is exploding. Talk about the cost of making these things how has technology changed that . It is costeffective. Like you say, with a gopro you can go out there and if you have the skills and you are working with the best athletes, you can do the filming rather cost effectively. For us, we do invest. We have red cameras. We try to use drones. We try to be at the cuttingedge of the technology. So, we spend more to make it as dramatic and exciting as possible, but i think the level of entry to make a good actionadventure film the cost you need, it is pretty low. Peter, figure very much. Kim schreiber thank you very much. Kim schreiber you will climb this year. May fingers crossed. Thank you. We will see you tomorrow here. It is 56 minutes past the hour. Bloomberg tv is on the markets. I am matt miller. Lets get you caught up on where stocks are trading. Take a look. Down across the board, although not the drops we saw earlier in the session. We opened and probably fell more than 200 point on the dow. Down a little bit, still a loss and we will close out the week with a loss of a little less than 1 of the s p 500. You see a down. 7 2047, not that bad. Look at treasury moves in the bond market. The 10year at 1. 9657 . So, holding firm below the 2 level. Interesting after we got the fed minutes and people start to speculate well, as people continue the years long speculation as to when we will get an Interest Rate increase, i am going to be joined by david robin here, societe generale. Thanks for joining us. What do you think about todays jobs number . It was another knocking the ball out of the park, especially looking at last months revisions 350000 last month to order 50,000 this month 250,000 this month, unemployment down to 5. 6 , can the fed put it on the table . No, because they have almost a triple bandit job growth Overall Economic growth, and inflation. Do not forget they have to make the stock market higher. [laughter] a little sarcasm, cynicism there. Quite since janet yellen has taken helmet at the fed, there has been a push back toward raising Interest Rates, and moving forward she will use the inflation argument the dollar risk argument, the Global Growth argument, as an environment where circumstances are indicating that growth is moving forward, but as long as inflation is at 1. 3 , 1. 4 there really is no reason whatsoever for her to adjust Interest Rates, and if you look at job growth in the absolute, yes, the threemonth moving average is 290,000. The 12month is 255. That is ok, not blowing it out of the park. Odds are increasing that we are going to come to october of 2015, probably have unemployment at 5. 2 5. 3 , and rates will still be at zero. Still a very low Participation Rate at least historically and we have not seen the wage growth we have been hoping for. That is the bugaboo in this report. If you look at the lack of substantive wage growth the biggest squawk on the board is talking about sluggish wage growth. October is when we get a possible rate hike . We are probably going to come to october and be in the same place. It would not surprise me for the move to be deferred to be on 2015 if not 2016. I do not see the argument for it. We will keep playing this game. Yes, we well. David robin, you are for joining us. Street smart is up next. Welcome everyone. I am trish regan, this is street smart. The world is watching as events unfold in paris one hostage situation ending with the death of two Al Qaeda Linked brothers. Another suspected terrorist was killed at a standoff in paris. President obama says the u. S. Stands by france. France is our oldest ally. I want the people of france to know that the people of the United States stands with you tomorrow today and our thoughts and prayers are with the families that have been directly impacted
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