Business investment drove these higher gdp readings. Hedge fund manager Philpott Cohen has resigned as chairman and ceo of harbinger group. He will be paid 40 million as part of his exit. It has been a roller coaster for fortunewho made a shorting subprime mortgages. Company to get hacked. The Computer Network was accessed in what may be a blackmail attempt with hacker threatening to release private data it demand were not met. A person familiar with the matter said it is being linked to a group called guardians of peace. And listen up, iphone users. Blackberry has a deal for you. If you trade in your iphone for a new blackberry passport, the company will give you 550, depending on your phones condition. This includes a prepaid gift card. The promotion starts next month and runs until february. Remember all of those comments from tech observers that apple had lost its ability to innovate, or that apple was losing its cool . It appears apple has had the last laugh for now. They briefly crossed the 700 billion valuation mark today, the highest market cap ever for a u. S. Company, and 300 billion more than the number two company, exxon mobil. Shares have advanced 42 this year. Why is there so much love for apple and tim cook right now . Joining us is an analyst from new york. Nhy is confidence so high i apple right now when the iphone is a huge part of their revenue and we do not know how the next product will do . There are three factors. One, the market got it wrong that apple is not an innovator. Number two, the valuation is still very depressed. 13 times excash. At companies that traded sugar water, they traded at 26 times per year. Number three, we are getting the first new product category with the ipad. That is great for the stock and great for apple. How optimistic are you about the apple watch . We dont know how big the market is for this and if it is going to be as big a market as the iphone. People keep saying this is a niche product. I think it will be huge. If you look at the number of watches sold each year, it is off the charts. A lot of these are cheaper, but the total number is incredible. When i think about the apple 1820 we used an conversion rate. . 60, . 70. I think it will be the fact is growing product category in their history, surpassing the ipad, which sold 20 million in the first year. Thisw concerned are you at point that the iphone is such a big portion of their revenue . It is a big piece of their revenue, but as we go forward, increasingly, apple will diversify. The watch is one piece of that. Ultimately, i think there will be a tv. I think there is a lot to look forward to in apple and that is what the stock is starting to show you. I think there is still more to come. You think there is going to be an apple tv set . Quite a few people would disagree with you. The people that we have spoken to said that we thought they would do something in tv, we think they have found it too difficult, and therefore will not happen anytime soon. Whether it is the setup box device or an actual television, in my view, they will enter the Television Market probably over the next few years. Is 100 billion product category a year. Depending on the form factor that comes up, they will not price it like the regular television out there. Idc is predicting the worldwide tablet market will decelerate yearoveryear. We know ipad sales have been slumming down. How much of a concern is that for the business . That is a good question. We were in taiwan in september and tablets are kind of a train wreck. What you will see is more and more companies exiting the market. That will be good for apple. Theblet is expected to be goto to Consumer Electronics device this Holiday Season. Ipadwill be great for the franchise. I think you will see apple do Different Things with the ipad moving forward. For all the concerns about steve jobs no longer running the cap has apples market doubled since tim cook took over. What does this say about tim cook . Up until steve jobs passed away, i think there was some discounting in the stock. Number two, i think people really felt like the wheels would fall off of apples wagon, it didnt. Actually, they have done some innovative things. I think he has done a phenomenal taken ahas it has market alone while to recognize that but they are starting to give the stock a better valuation. Is apple going to get to a trillion dollar market cap, how long will it take . Our 140 three dollar price target is well over 830 billion. The trajectory looks right. We will not call when, but the trajectory is right, and the stock is, again, very cheap, and we are entering a super cycle. We only get these every five years, and that is very exciting to me. What do you mean by super cycle . A new product category opens up. The apple watch is part of that, the biggest part. Y did enter the fablet phablet market, and then apple pay. It is really driven by the watch as well as a huge refresh in the six and 6 plus. Brian white, thank you as always for joining us today on the show. Call it a social media fail. The twitter cfo thought it waa direct message but accidentally made a key part of the companys strategy a tweet. Im emily chang. Bloomberg west this is. This is bloomberg west sayss ceo chet kanojia that many of his assets are wanted. They had to file chapter 11. He spoke to betty lou about a lesson learned. Definitely like we brought the conversation to the cords. Nt, about cutting people are buying more antennas than they ever used to. All of the things that we brought to the forefront. The question in consumer minds, is there a different way to skin this cat . I dont know what happens after this, at this point. He also calls prominent aereo backer dairy donor a great mentor in the process. Twitter cfo anthony noto thought it was a direct message but accidentally published a tweet, revealing part of the company strategy. O wrote it was quickly deleted but not before many had seen it. So how big of a blow is it for twitter, what companies are they looking to buy . Frome joined by sarah houston. Everyone knows how painful it can be. I am sure this was no different, but what have you heard from twitter about this particular tweet, any statement on the context . Twitter confirmed it was a trying to send a private message. They would not say who or what company he was trying to buy. Doesnt this signal a problem for twitter, that dmfails are so easy, even their cfo can make it . That has been an argument whatsapp should not even have existed because if twitter had gotten it right, people would be using it for messaging instead. You are right. The irony of it is that noto has been at the front of trying to convince wall street that twitter can use its product easier to use, more mainstream, and messaging is top of the list for things they want to make better about twitter. To so publicly fail at it, through not his own fault, just through a misunderstanding of how to use the product, it is a big thing here. I have commiserated with so many people about how easy dmfails are. What about this issue that twitter is on the acquisition trail, looking for companies to buy . Noto was instrumental in making sure that twitter made that offering it september to raise 1. 8 billion. He said that money was to be opportunistic about acquisition. So they really want to buy more things to build out, not only offerings for consumers, but for advertisers. He will be taking many of these meetings in the coming months. Any guesses which company he is talking about here . There are many guesses out there. One of the main theories, after looking at who he recently followed, he recently followed a lot of people at mic, a new service for millenial that maybe twitter is interested in. Trying to figure out their content strategy. There are so many things that they could go into. I think we will probably see m a wrapup in general. Maybe more than just this thing is company that they were meeting on december 15 or 16th. Whoever they are, hopefully they know what is coming. You just published a piece about retailers offering new products. Twitter offering new features for retailers to offer products on twitter. Can you tell us about that . Acquired a company which allows retailers to offer things through twitter. When you click the button, it links to your credit card and you can get two dollars off of that coffee when you swipe. Its a way for twitter to prove to retailers that they can get return on investment by using twitter and relating to their users that way. Something to keep an eye on. Thank you. Still ahead, buyer beware. Should you be worried about hack attacks if you go shopping for on rod x like frozen dolls black friday . Im emily chang. This is bloomberg west. The man for leading in charge cameading squares occasions efforts is returning to tesla. Timell be joining any tee for the company with a new model x on the way. Meantime, another challenge for jack dorsey, dealing with intense competition. From payments to Cyber Threats facing retailers, prepare for black friday and cyber monday deals. Our next guest says that hackers are already planning their next attack. So which companies and will be hit and how can consumers protect themselves . Should we even be shopping on black friday or cyber monday . It is probably safe to say that they are lying in wait. This time last year we were breached at target. Several months later we found out millions of credit cards were stolen. Over the year we saw target, michaels, staples, home depot, a string of breaches. The scary thing is, it is not just one thing. You cannot just say do not shop online because the credit cards used instore purchases were used as well. Is it the most popular retailers that will be targeted . Unfortunately, it is across the board. The bad guys would love the most popular, the biggest bang for their buck, but in july, there was a warning put out that over 1000 businesses are likely compromise from a pointofsale malware. The bad guys are stealing information when we swipe at the register. In a tough spot when they do not know who is safe and who is at risk. Are the stores doing anything . They are doubling down they are doubling down because retailers are getting hit left and right. We have credit cards being lost at the register because of malware, and then we have Major Companies that are being breached because they have thirdparty relationships with weak credentials, and they are coming through the network and wreaking havoc. Do you think shoppers are going to change their behavior . Pulmonaryseen some studies that people say they will change their behavior, but it is yet to see if that will transpire over the holidays. If the deal is too good to pass up, you have to go for it, right . Thats true but you also have to be diligent. I would recommend a couple of things. Consider using a credit card instead of a debit card. When you use your funds, you can contest it and get it back, but who wants to be out of your funds over the Holiday Season . And keep an eye on your statements. This is where the attackers are. We know they are coming for us and we have to be diligent. Another concern you are raising is when it comes to the hot products, people who want to do bad things and make it harder for us to get them may make it difficult to buy the frozen dolls and the nike airs. The bad guys are organized, cyber criminal enterprises, and they want to make a buck. What better way to make money than to find the hottest products and buy them all, and then resell them for double or triple. You know your kid wants the doll and it if it costs a few bucks more, you will do it. Basically it comes down to being digital scalpers. Trying tohink about go to a concert and all the tickets are gone, you have to buy from the guy on the corner. That is what is happening here. The bad guys are systematically buying all of these things before you have a chance and are happy to sell them back to you at double or triple the price. Who are these bad guys, different from your gardenvariety hackers, are there new truths that come in over the holidays . There are different types, different motivations, but the criminal enterprises that want to make a buck, we have seen a lot of activity out of eastern europe, russia, a bit out of china. So the usual suspects . It does tend to be. When there is money to be made, these groups will keep working at it. How much money can be made . When they bring down the different control centers, millions of dollars flowing through this. There is definitely a pretty penny to be made. If i want to get my kid the frozen doll, what should i do . If you are looking to be the first person to buy when the Internet Sales go on, you will have tons of automated sales going against you. If you can get it in the store, at least you are competing with other humans. As rough as that experience may be. So go to the store. Do not try to compete with the bots online. What if, last resort, you missed out. How do you know if you are buying from a scalper or not . You have no idea. There are some trusted Retailers Online that have good, established histories, but if you are buying from someone who productto have the because they say they have a few, you could be part of the system. What is the likelihood the next big retail hack attack will happen in the next week . Will notunately, we know about it for a few months. I would not be surprised at all if we have a major breaks breach in the works right now. How long will it take to find out . History says a few months, but that is the state of the industry. There are so many different opportunities, so many bad guys, and money to be made. Until we have a different approach to security, we will keep facing this. Merry christmas, everybody. Thanks so much. Immigration is a huge topic right now with president obama unveiling plans to grant legal status to millions of undocumented immigrants. But many in the tech immunity say his actions do not go far enough. Jose Antonio Vargas is with the next. Is 26 minutes past the hour which means bloomberg tv is on the markets. Lets take a look at where stocks are trading. Not Much Movement today after the dow and s p closed at record yesterday. They may extend today, even if it is just a little bit. In terms of individual movers, raising to ars full year high. They said their acquisition of zales earlier this year helped to boost sales. You are watching bloomberg west. We focus on innovation, technology, and the future of business. Im emily chang. President obamas plans are ruffling feathers around the nation, especially with republicans. Forplan would provide a way millions of undocumented immigrants to gain legal status. Republicans argued it is executive amnesty, but some argue it does not go far enough, especially in the Tech Community. Hosea antonio is vargas. So great to have you back on the show. A very important topic. What do you make of president obamas remarks and his plans, didnt go far enough for you . No. Especially because i have a lot of friends who were undocumented , who were covered a few years ago, their parents are not being covered. That is tragic. How about a workers and laborers who do not have any kids or u. S. Citizen kids here . They are not covered. In the Tech Community, this is a big issue. Ist i think is positive there is an opportunity for all of these groups to come together and really say that we are on the united front and what the president did was a good first that but we need more. It covers 4 million undocumented immigrants who now have a chance to apply for work documents, including you. Congratulations. What number should that be . What do we do with 11 Million People . We are estimating 11 million undocumented people in the country. Nothing is copper hence it enough until we address that. We have not pressed Immigration Reform since 1996, a few years before taylor swift was born. A good way to think about the context. Yetwas not even conceived when the past Immigration Reform we had was passed, and that was not copper hence it enough. Now we have the opportunity to think about the big picture. Unfortunately, the politicians we have are way too small in the way they think about the issue, particularly in the republican party. The Tech Community agrees with you, does not think it goes far enough. We are grateful to forward. Us, who has thought of this. They have run into incredible challenges. This is not a simple issue. Man, can you imagine lgbt right without ellen grace,es, will and modern family, without the culture having to shift first before the politics . Coulter is politics. We have to change how we as a culture talk about undocumented people and our contributions to this country, before anything politically will change. Who is winning right now . Who is winning . It will be thanksgiving, the ultimate immigration holiday, as far as im concerned. I am just grateful that you know have 4 Million People that do to look behind their backs or a cop being deported. We should mention you were arrested protesting the discussion that was happening in washington. Glad you made it out. Tell us about that experience. For me, the most real part of it is that i ended up going to south texas. Have you ever been . I have not been as far as you. I have been to the california border. I ended up going there to film inside one of the shelters because i wanted to see these kids. I was haunted by the images i saw on television, the fact that we were calling these kids you eagles. Illegals. I went down there to film and i was arrested and ironically, i was put in the same prison cell as these kids. 9, 10, imagine these 11yearolds, mostly boys, who are locked up in a prison cell because we are unable to ask the hard questions about why they are coming here to begin with . Crossid not come here to a border. They do not even know what that is. They came here because, what is the responsibility of our country in terms of economic and foreignpolicy . When was the last time you heard about the kids . What do you think will happen with deportations . They went up under president obama. He has overseen the largest deportation in six years in american history. This is a way for him i am sure he did not enjoy being called keep order in chief. His is a way for him to alleviate the pain undocumented people live through. These 4 Million People like me do not have to worry about that. Congress is likely to respond to president obama. How confident are you that they will do what you think is the right thing . I get asked this a lot. I was on bill oreilly a few nights ago. After the president gave his primetime speech, i went on bill oreilly. He said that people like me do not deserve to be here. Entitled. I feel frankly, i was so busy talking about my mom who i can now visit, i was focusing on what he could say. All i could think about was, what have you done to earn it . American say all the time, you should earn it. Lets ask the american people, have you earned it . Is being born here mean that you have earned it . Is that some sort of a lottery . Congratulations, you were born in america. People indocumented this country show americans what it means to be american, because we have to fight for it. You had not visited your mom and how many years . 21 years. After the president issued this order, there are 90 days for people like me to apply and go through the whole deferred action program. Advancean apply for parole, asking permission to leave and come back. That will be the first time that i could leave. We will continue this conversation after the break. You have been following what has been happening in ferguson. Jose Antonio Vargas. Founder of defined america. Im emily chang. This is bloomberg west. President obamas proposals on Immigration Reform will bring legal status to some undocumented workers, but some in the Tech Community think the president has not done enough to bring high skilled immigrants to silicon valley. Still with me is immigration activist jose Antonio Vargas. Over the last several months you have taken on another cause, which is the situation in ferguson. I have been paying attention. One of my favorite groups is the dream defenders. I dont know if you follow them on twitter, but its basically a coalition of brown and black americans who realize our struggles are interconnected and we should work together. The million hoodies for justice. That is another group doing spectacular work. You are tweeting about this, as everybody was last night. , connectingtweets the dots. Criminalization of black males in america, the antiimmigrant u. S. Immigration deportation machine. What did you mean by that . I have to say, by the way, this is when you are thankful for social media. People exposing what they think and how they feel. In many ways, the limitations of their own lack of historical analysis as to what is happening. Really fascinating. I try not to read too many of the negative comments, but what thele say about the case testimony has been release, what they said, the decision. You have to see ferguson and Michael Brown in the context of the american criminal system, and what it does to black men in particular. I dont think its any surprise to us, in terms of what the numbers say. The inherent injustice in that i have a lot of black female friends who were mothers, a lot of black male friend who are fathers. The way they think about their children, especially young black boys, being in the street, how they can be arrested at any point that is a human thing. Not justhy, this is about Michael Brown or ferguson, but the entire history of all of that. Theappening at a time media likes to say we are in this postracial america. Absolutely not. If anything, the racial conversation restarted. Now it is beyond blackandwhite. Now you have latinos in this country, asian people in this country. Particularly in the Immigration Rights movement, who are being detained and deported in record numbers. When you look at this verdict, do you think it is the wrong decision . I am not a legal expert. All i know is i still cannot believe that, given the particulars and the facts in the case, that nothing was done. I dont know about you but i was preparing for some sort of maybe they will figure out they cannot just say nothing. What do you mean nothing was done . The grand jury was focused on this for the last six months. Three months. And the Justice Department is investigating. This case has to be viewed in the context again. There is a reason why they were riots and protests all across the country, including in san francisco. I live close to the mission and i heard everyone getting riled up. It represents the inherent injustice in the american criminal system, especially as it relates to black men in this country. The verdict, as it is, i dont think i think there was a missed opportunity here. The president , last night, we were waiting for something more. Getought maybe we would some sort of healing words. Maybe he will Say Something that will calm people down. That did not happen either. , definede a film american. Now you are spreading the word about that. How are you doing that . Work on aarting to film for mtv about what it means to be young and white in america. 44 states in the past few years, visited a lot of colleges. In my experience, young, white americans this idea of white privilege, young, white people not knowing where they are from. As a filipinoamerican in this country who is undocumented, i am very much aware of where i am from and the price that was paid to get me here, literally and figuratively. When i talk to young white people about how they view immigration and how they feel about race, i find it interesting, we have not turned the tables around and asked people, where are you from, how did you get here . Mtv did a poll with millenials. They, white americans feel are as much a victim of discrimination, racial discrimination, as people of color. That is fascinating. Especially in the context of ferguson on in the context of immigration. So my job, our job in the film, is to unpack that. To create a space for young white americans to talk about these issues and do not feel like they are being attacked or judged. Antonio vargas, filmmaker, immigration activist, and so much more. Thank you for stopping by and sharing your passion about all of these issues. Thank you for having me. Are consumers going to change their Shopping Habits this year with hack attacks against retailers like target and home depot . What consumers are thinking in a special surveymonkey shakedown. This is bloomberg west. Im emily chang. Retailers around the country and online are getting ready for the two biggest shopping days of the year, but well black friday and cyber monday bring in recordbreaking revenues, or will shoppers choose to avoid the chaos . We asked more than 950 people for this months surveymonkey shakedown. In thepany ceo is here studio. Surprising that a lot of people are avoiding black friday and cyber monday. Almost half of the people said they wanted to avoid it. I wonder if all the attention around people camping outside, getting trampled in stores, site being slow, is starting to turn people off to this thing that we are getting a negative reaction to. Obviously we do not have trending data, but it will be interesting to see what happens next year. I will not lie, i am on the j. Crew email list. 30 , 40 nonholiday, off, can it get much better . I think people are getting cynical about it. Of theout a quarter people plan to shop on those days. Interestingly, you took a look at where the best deals are coming from, and they are still coming over emails. People talk about email dying, but for ecommerce deals, it is important. It interesting we saw was that social media was almost the same as tv ads. Five years ago, social media would have been nowhere to found come a mostly tv ad driven. Email is still the winner, but social media is coming out there. You are optimistic about the future of ecommerce. I took almost the opposite view, that social media has not caught up to email, legacy technology. As you are it looking for a deal, social media is not the first place that you will look, but you will stumble upon it. The other big winner of the survey, amazon, in terms of where people are looking to shop. 50 plus of the people planning to go to amazon. 52 . No one else is close. It is really fascinating, given we know that there were all of hassles at christmas time with shipping, no one seems to be blaming amazon, but ups and fe dex. Out tops for Customer Service as well. Everyone else is so far behind. That has to be scary for other retailers. Is someone else going to catch up . Eric schmidt recently called amazon their biggest rival in search. Is another Company Going to catch up, does amazon have too much of a lock . This is a pretty scary thing if you are not amazon. Pretty good if you are. They are just fulfilling peoples needs. I can see why google would be nervous. If you know you can get anything you want purchased on amazon, why even go to google in the first place . We spoke earlier about security fears, the big hack probably already happening and we dont know about it. Our shoppers concerned, will they change their behavior . Concerned,ere certainly more than they have been in the past. No question, the majority of the people were concerned. Theree dug deeper, we saw was only about 15 of people who said they would not shop at stores that had a credit card breached. Target was still high on the list of people. Maybe they forgot it was part of a breach earlier this year. It is a little new wants to. In general, people are nervous, but will change their behavior . It does not seem like it. Dave goldberg, this was an interesting survey. Thank you for stopping by. Happy holidays. Nyte. Time for the bwest we have a special guest byte. We have a special guest. What is the number today . 3. And that is . Three people that have been up for the job of steve jobs in the upcoming film about the apple founder. You and i have been talking about whether this movie will ever be made because so many people have dropped out. Today, universal announced they are buying the rights to the film. Week, sony past wanted to drop the project. It has owned it since about 2012, after steve jobs died, based on the book by walter isaacson. There was a description by aaron sorkin. It looks like a great project but there has been a lot of changes. A lot of films take many years with lots of changes. Leonardo dicaprio considered, he then dropped out, and then Christian Bale was supposed to play the role, then he dropped out. The latest is michael fassbender. He is now attached to the role. Been not clear if that has confirmed, but he is the latest actor linked. When i spoke to aaron sorkin, he said he is excited by the project. He thinks it is the best script he has ever written. How optimistic are you that this movie is actually going to get made . Universal is very excited, they picked up the project quickly. One of the numbers floating around is that they paid 30 million for the film. We have a confirmed that. Universal has not confirmed publicly. There is a lot of enthusiasm for the film. Danny boyle is now set to direct the film. He did slum dog millionaire. Films take a long time to put together and they often see changes. When is this going to be in theaters . No release date yet. I was checking in this morning, no plans yet for a release date. My understanding is one of the reasons sony dropped out is because the filmmakers wanted to get it out sooner than they could accommodate. That sometimes happens with studios, when they have three films they want to make, and filmmakers want to get it out before an awards season. We have to leave it there. Thank you so much. Thank you all for watching. Im matt miller