Premier shopping district in response to the release of Police Dash Cam dashboard cam footage of an officer killing a black teenager. The officer was charged with firstdegree murder. Im emily chang and this is bloomberg west. Another unicorn sighting in silicon valley. A 350 million funding round. Anonymous fires the latest shot in a cyber war against terror. The group says it knocked out thousands of Islamic State twitter accounts. Castanedas give thanks per castanedas give thanks for Online Delivery Service this holiday. A short but busy week in tech news. The latest unicorn, jet. Com announcing a 350 million round. Fresh capital as Holiday Shopping ramps up. Hewlettpackard posting its final earnings as a single entity and the results were not pretty. Cory johnson joins us live on set. This is a massive round for jet. Com and you are synchronic investors reopening. A lot of money heading into a critical time. This will be their first Holiday Shopping season. You are right to note some investors. Down. Bled they see something they like and they are throwing more money at it. Jet posting a growth rate of 65 between september and october. That is impressive. One investor i talked to was the end of theby year they are expected to be on an annualized rate of 500 million in overall sales volume. They are growing and they are throwing money at it as long as it keeps growing. Emily they are offering steep discounts to sign up new customers. Is this sustainable . Corey Customer Acquisition is the first goal they have to get to. It is tough to compete on pricing and with the increasingly skill that amazon has developed. This has been tried before. Amazon. Com has tried to launch a broad. These guys have to figure out specific things around logistics. , amazon put a lot of money into it, never quite made it as a giant company until walgreens took them out. They seem to have figured it out once. Jety spencer, do you think can take on amazon . Spencer you cannot just look at it as one versus the other. There is a lot of headroom and ecommerce. The distinctions we are saying, jack is succeeding and encouraging people to build bigger parts. They are getting larger orders. The typical number of items per order with amazon is fewer than two. With jet, it is close to five. They have a model that is resonating with some people. It is different than amazon, but it is working. It encourages you to build up a cart and save more. Get the fast not delivery times you get with amazon. I am a procrastinator and i love amazon prime. Not a goodi was customer. Corey shipping is the name of the game. We see how much money amazon loses in shipping. They have to break it out to their investors to show it what it is. To solve the shipping problem is the name of the game. It is not like the struggles that cosco has gone through. Emily i do want to ask you about hp. You have been digging into the numbers. Are you seeing any signs of a naround question markcorey turnaround . Rey no is the short answer. When you look across every single business, declines in pcs, a big decline and printers. A big decline in printers. Software, which is supposed to be the future of this company. So disappointing on so many fronts after so many years. It is worrisome going into the future. Emily we will be watching when they report their first earnings as separate companies. Only 13 weeks away. Cory johnson is our editor large editor at large. We have a very special bloomberg west thanksgiving feast. A westgiving. Bloomberg News Reporter has been delivering stuff all day long. Sarah, what did you order . Apps. I tried all of the i tried to get a variety of things. I ordered a variety of kitchen tools. A turkey baster, meat thermometer. I ordered a full turkey and i ordered pumpkin pie. I also got wine. Companyrt, this partners with Different Stores and i was able to get anything from whole foods that i wanted. I picked the pumpkin pie from their bakery. It was great to have this ction, but the pie came in the selection, but the pie came in in one hour and 20 minutes. You can buy all of the ingredients for a perfect turkey meal. When i tried to buy a turkey on amazon, it was difficult. They have all of the kitchen tools you need. For this particular scenario, that was a problem. I searched turkey and between deli meat and cap food, cat food there was actually an outlet converter if you are traveling in turkey. I did end up getting some stuffing and some tools for the cooking. Emily this turkey is frozen. We still have some work to do. We have been looking at some pictures of the loot. Which company should we be most thankful for . Sarah post mates made it the most made it the easiest for me. They really thought about thanksgiving the most. If you need a specific thing, if you wanted some extra baking powder, you would have to go to amazon, or maybe something from the Grocery Store, insta cart would have the full Grocery Store selection. Prepareds was the most for thanksgiving. Emily you know that i am an amazon shopper. Last night, i got a few lastminute things. I am thankful for amazon today. We will talk a little bit more about this later on in the show. We will talk about the Business Model of ondemand startups. Sarah frier, thank you so much. We will be back with you later. We check in with one of the worlds leading experts on anonymous. As the cyber vigilantes carry out a declared war on Islamic State. If you like bloomberg news, check us out on the radio. Our of bloomberg west and westgiving feast, next. Emily to the cyber fight playing out on computers around the world. Hello citizens of the world, we are anonymous. It is time to realize social media is a solid platform for isis communication. A twitter emerged in the wake of the paris attacks. The International Group claims to have helped take down 20,000 twitter accounts connected to isis since the attack. Mission. Ontroversial joining me now to discuss and help clarify what anonymous is doing, professor and author of , the many faces of anonymous. What does it mean to declare war on the Islamic State . War,onymous has declared the second iteration in the various operations. A couple of tactics are used. One is to flag twitter accounts. Another thing is to take down isis websites. Forums, jihadi forums, and collect information that is handed over to the u. S. Government. Emily how effective have they been so far . We have seen reports, some of the twitter accounts belong to journalists. Some of them are written in arabic. Toriella it is difficult assess the legitimacy of the counts flat by anonymous. The accounts flagged by anonymous. That is sent over to twitter and we do not really know what twitter is doing with these names. They have recently mentioned to some journalists that many have an many are inaccurate. Emily isis responded. They issued a statement, they called anonymous idiots. This is on the encrypted messaging app telegram. Isissh do we know about cyber capability . Gabriella they have absolutely exploited all the social media has to offer to get their message out there. When they had less brand recognition, before they let major attacks, social media was incredibly important. They literally created the conditions for creating a big audience when they had the videos of beheadings. F has been described as a unnel. When it comes to operations, we savvysis was not so tech as they use unencrypted sms for their operations. Emily how does the Syrian Electronic Army fit in here . Definitelythey have they are very similar to anonymous, actually. They are primarily online. They do not necessarily have an offline component. They do a lot of hacking and they are good at gaining military media attention. Emily how does anonymous actually work . How are they governed . Is an important question to ask. There is organization in anonymous. The team has been working for the past year pretty closely. After the paris attacks, a Different Group from italy declares opisis. It is pretty chaotic initially. You have simultaneous operations going on, sometimes with coronation between them and sometimes with no coronation coordination. Emily how does the cia and fbi view anonymous . Generally, Law Enforcement has a pretty negative view of anonymous and have arrested many participants because they have hacked and targeted government websites and corporate websites. The government tends to take a handsoff approach with these types of operations. What is interesting, there are offshoot groups, which purport to work closely with the u. S. Government. Emily how well protected is anonymous from realworld attacks . Gabriella it depends on how good their Operational Security is. Why the fbi was able to arrest so many people in anonymous is because they did not cover their tracks well. They were not using encryption. They revealed too much information. Your security is a little bit that are now postarrest, but there are a lot of newcomers to happen flooding these chat channels. Isis might try to out many of these members as well. Today,at the end of would you say that anonymous is doing more to help or hurt the fight against isis . Gabriella it is not so much either. It is the case that at this point, isis, along with their online propaganda machine, has a huge audience simply by virtue of the attacks. Reach people. L even if anonymous is making a huge dent, they have an audience. It looks like anonymous is making only a slight dent anyway in their online propaganda machine. I have not seen major harm so far. I think people look at these lists skeptically right off the bat, as they should. As long as people are doing that right from the start, the harm can be minimized. Emily interesting. , anonymousoleman expert, thank you for joining us. The debate over encryption continues today with new calls from Law Enforcement for better access to encrypted communication. The National DistrictAttorneys Association releasing a letter calling for backdoor access to encrypted data. Encryption has been in the spotlight since the paris attacks. Some officials believe Islamic State planned the attack using encrypted platforms. Tech Companies Say any backdoors would be vulnerable to hackers. Rethinking the way landers approve clients for loans. We will talk to the ceo of one startup that is doing just that. Emily one startup in San Francisco is changing the way millennials and others who have short Credit Histories go about getting loans. The company uses algorithms along with other data points to approve candidates for loans. The most popular product is student loan refinancing. Joining me now in the studio is the ceo of ernest. This is very important stuff. How does this Business Model work . Ultimately, the two big data tore software and draw bar costs and understand people drop our costs and understand people better. Delivering Better Customer Service over a whole lifetime to our clients, keep them forever. This increases our attention and referral rate. Emily i cannot fund my entire College Education through you yet. But you do give loans for other things . Lonanswe do personal and student loan refinancing. The money we just raised is for us to build the team and build on our platform to offer a wide array of Consumer Financial products. Our goal is to be the modern bank for the next generation. Emily how do you manage the risk you are taking on . Louis nearly 100 of our orders of our clients are employed. Emily so these are not students . Louis financially responsible young graduates. At their cash flows, looking at their level of savings and their 401 k and ira investment accounts. Where using that data to come up with a comprehensive and nuanced understanding of each individual to take smarter risks. Point would we see you doing actual Student Loans . Actualwe aspire to do Student Loans. When people think about ernest, to do all products. Emily interesting stuff, thank you so much for joining us. Emily this is bloomberg west. Alreadykong, it is thanksgiving. Happy thanksgiving, juliette. Happy thanksgiving to you. Unfortunately, we do not get to eat any turkey. The ecb sees the potential for a rising risk in asia. Emerging markets may see a rapid rise of risk if the fed moves more aggressively than expected. Loose Monetary Policy has pushed asset values higher. Be a yearrning out to to remember. It is supposed to be the hottest year on record. Leaders meet next week in paris to discuss climate change. Chinas craigslist rally to a fourmonth high in new york. Shares rose 5. 5 after the company said it will spin off its usedcar trading platform. The chairman will buy a controlling interest in exchange for a cash injection. Porsche is looking for ways to boost its flagship sports car in china. The 9 11 is the dna of the porsche brand and he does not want the company to be seen as just a maker of suvs. Emily how does porsche plan to boost 911 sales . Events to court racing enthusiasts will be held next year. A driving center near the shanghai formula one center. They will open about 90 stores by the end of this year. Wanthairman does not porsche to become a symbol of suvs only. The 911 is the dna of the brand. Thing, these cars may be sold in china, but they certainly will not be made there. Thank you so much for joining us. I hope you get some turkey. Some signs that things may not be going so well for the beijing big startup. Miss the goally of selling 80 million smartphones the share. How much of a setback will this be for their global ambition and how with the company maintain momentum against apple and samsung . Toraveled to beijing headquarters to interview the companys head of Global Operations and asked him to give me an idea of the size of their nonchinese business. Take a listen. We started with our Global Business two years ago. We added a couple of markets and southwest asia. We finally entered india and brazil. 2014 was just getting started. 2015 was the biggest the beginning of our acceleration. Beginning to form a medieval part of our business. I will not give you a specific breakdown yet, but it is a meaningful part of our business and it really matters. Emily how much of your business is still smartphones . Smartphones still our flagship products. It ranges from mobile phone accessories, audio products. Comes up in the u. S. When people talk about the reorganization of the smartphone market. How much does that matter . It does not really matter to us because we are such a different type of company. I almost cringe when people compare us to other smartphone brands. Are a technology company, we are an internet company, and ecommerce company. We care about engaged users. Emily how are you handling slowing growth in the chinese economy . China is still a very large smartphone market. Even if that plateaus 20 growth, it will be the largest market for the next market plateaus to zero growth, it will be the smart largest market for phones. We are fundamentally and ecommerce business. 70 of the products we sell are sold online. That growth is not going to stop anytime soon. Emily you said you will be launching phones in the united states. What is the timeline . No timeline set for the u. S. Yet. It is on our radar. It is a very complex market. It requires Operational Efficiency and precision. Emily it is on your radar or it is going to happen . It is going to happen. I do not know when yet. A very happy westgiving to you. Thank you so much for getting up early. What do you make of this new that they on xiaomi may not be doing as well as they expected . I disagree with you go bharat hugo barra. The Chinese Consumer is not looking at xiaomi as the new hot cool thing. Pricesensitive Chinese Consumers are moving toward another chinese brand that has some spectacular hardware. Wealthier consumers are still buying apple products. Xiaomi is in a tough position. Nokia, library, htc, blackberry, htc, and motorola were hot brands that have disappeared from the marketplace. When i was in beijing, i was shocked at how many people i saw using iphones. Granted, i was in the airport, international hotels. What can you tell us anecdotally about the brand and how consumers view the brand, the xiaomi brand . It is viewed as a cheap alternative. They only sell online. I was surprised when hugo said 70 of their sales were online because they are not supposed to be selling in stores. They need to come up with a better brickandmortar strategy. Consumers want to touch and feel smartphones when they buy them. They are considered a has been because they do not update their products. If you are cool, you go for apple. Xiaomi valued at 45 billion. Uber, 50 billion. Is that valuation fair . Lets not judge it simply on missing this one benchmark. Company. Is a great they are able to realize a more pricesensitive consumer. Recurringers are a revenue because you have to change the filter. I think 45 billion is a little high for evaluation. For a valuation. I do not see how it is possible that it is worth that much. Us. Y stay with here is another story out of china. Have and China Union Pay reached a preliminary agreement to introduce apple pay in china through union pay point of sales network. Union pay is the countrys largest payment and clearing network. You live in shanghai. You use unionpay. It is kind of like a visa or mastercard. If you buy something with your card, you might use unionpay. It is really the big player out there. It is a good deal for apple, but i am not convinced apple pay is going to get a lot of traction in china. We chat pay is dominating. You take your phone and you just swipe it. It is extremely convenient. I am not sure why consumers would not want to use what is already in existence, which is probably technologically far pay orperior to apple square from jack dorsey. Reports thatare apple pay may be launching in china by february. These are areas that are tightly regulated by the government. How much do you think apple pay will run into regulatory hurdles . It is smart for them to tie up with unionpay. Y gets a lot of support from the chinese government. The much bigger problem, frankly, is the strength of we chat pay. In the last few months, you have started seeing signs in brickandmortar stores. In less than a second, you can put money into your account or transfer money to other people. Emily i will take it. How much are you offering . I know you made a lot of money on those books on your shelves back there. Thank you for joining us. What does amazon look for when it creates new content . We will hear from the head of Amazon Studios next. We are thankful for ondemand delivery and we will tell you why later this hour. Emily only want for christmas is a playstation 4 . Throughouncing it sold 30 million units. Microsoft has not offered a recent sales update on the xbox, which is lacking in sales. The ps for his sonys fastest selling console. Amazon released man in the high castle. It depicts an alternate reality in which nazi germany and japan have divided control over the added states. What goes into the process of green lighting series . Cory johnson spoke with the head of Amazon Studios. They have been a handful of shows at amazon. What works on netflix . What works on hbo . This ondemand programming is very different. He grew up in hollywood and has a sense of what has worked in the past. Listen what he had to say about what makes an amazon show an amazon show. Show, peoplehe have to demand it. They have to search for it, find it, click it. Every time you have to have a high bar and you really have to think the goal here is this would be somebodys favorite show. Emily it needs to be someones favorite show. Cory you cannot just have a great show after seinfeld in primetime and a lot of people will stay to watch that. On demand is very different in making that is very different. I talked to him about what that means for amazon. Amazon prime subscription is a moneymaker just for the video alone. They want people to become prime diapersers so they buy and other media. Show, based on books. Question is, are people talking about this show . Is it reaching people who may be are not amazon customers yet or people who have not tried the Video Service yet and get the word to those people and have them try it out. Talk to me about the advertisements for the show. they put some ads thematic to the show, the not sees n azis taking over the east coast of the united states. The show i have watched the show and it is interesting. The show uses the iconography that was so successful to japan and germany. A wonderful review talked about how the show makes you think the entire time youre watching it, the iconography certainly does that. Emily the ultimately pulled it, right . Cory it makes you think about what iconography thinks. I watched the first episode, really impressed so far. Emily cory johnson, thank you. Coming up, are things getting feast all delivered thanksgiving feast all delivered by ondemand in one hour or less. Emily two r barros very special on demand thanksgiving today. You can be thankful for ondemand startups. But can they be thankful question mark they are delivering everything from wine to pumpkin pie. In onetempted to do it hour or less. Even amazon joining the party. Angeles,s now from los the ceo of softy. You supplied the wine today, so thank you for that. Sara, you have been working the apps all day and you are responsible for this great spread. Sarah you and the rest of the west crew had some opinions about getting someone. Emily you guys focus solely on alcohol, right . On beer, wine, and spirits. We find the impulse to want to have a drink is separated from Grocery Shopping or food. Emily we have gone beyond the days of madmen and we had to wait until 2 00 to have our alcohol delivered. Chris depending on the part of the city, we usually open around noon. Some places, we open a little bit later. We chose not to open at 10 00 for a reason. People can order the order times are between 5 00 p. M. And 9 30 p. M. 11 00 orp around midnight. It has been an interesting order pattern. , you got a turkey. You got a pumpkin pie from insta cart. You got a turkey baster from amazon prime. Is there anything you could not get today . Sarah it was hard to buy readymade thanksgiving food. It was hard to find turkey on some of the apps. I was hoping for the office to be able to join in. There were some ready to eat things. I could have gotten cheese and crackers. Abilitycey, i love the to pick from a selection of wine. I wish it had some tracking. I could not see where the driver was. Everything was fine and they came here really fine. Emily chris, what is your response to that . Chris we submitted tracking to the app store today. Emily lets talk about the Business Model. A lot of questions about the economics of ondemand startups. Can you make this profitable . Chris i think any time you are moving the product from point a to point b, the most important factor is the drivers time versus how that cost to split up between customers. If you look at services were a single career can pick up a urier canch co pick up a whole bunch of products at once. There is a centralized pickup location. Some of the other services out there can get really difficult. An example would be, if you have 100 people place in order for francisco, that could be picked up between 50 and 100 locations. Very inefficient for may delivery for a delivery standpoint. Ours, people that centralized the pickup, are able to do it effectively. Issues as have legal well. Ded when i was given my wine. How does that change how you approach the situation . Just 15 seconds, chris. Is something we have taken seriously from the very beginning. A very old industry for us. It is important to make sure we are in compliance. Emily we are going to enjoy our feast now. From our studios in new york city, this is charlie rose. Mike morell is here, of themer director Central Intelligence agency. A Global Travel alert was issued for u. S. Citizens. The alert towards that i sa warned that isil, boko haram, and other terrorist groups may attack. Turkey down a warplane, Vladimir Putin called it a stab