There is no doubt, thanks to the steps that we took early on to rescue our economy and to rebuild it on a new foundation we are entering the new year with new confidence that america is coming back. Tomorrow the president heads to phoenix to talk about the state of the housing market. The sec chairman said his Net Neutrality proposal will line a linealign with president obamas vision, meaning no internet fast lanes. He said will be no blocking, no throttling, and no paid prioritization. The proposal will be formally submitted in february. Three of the five members need to formally approve the plan. Tomorrow i will be speaking with one of those members on bloomberg west. Is facebook a serious threat to Googles Youtube . Facebook said the amount of video on its news feed tripled from last facebook has averaged june. More than one billion video views per day. Facebook is looking to take a bigger piece of the online ad marketing space. Now to the lead French Forces are reportedly raiding a site as they seek to capture the gunmen responsible for the terrorist attack at a satirical french newsmagazine. The suspects reportedly fled about 90 miles northwest of northeast of paris. After opening fire at the offices of Charlie Hebdo, killing 12 people, including the Magazine Editor and two policemen. French president Francois Hollande declared tomorrow a day of national mourning. Today is the entire republic that was attacked. Republic is the freedom of speech, core alyssum, democracy. This was the assassins target. It is that ideal of peace and justice that france carries out everywhere, and this message of peace and tolerance that we defend with our soldiers against terrorism and fundamentalism. No one has claimed responsibility, but the attack is believed to be the work of islamic extremists. Joining us is Caroline Connan from paris. Thank you for working so hard on the shocking news. What is the very latest . There are police situations in the city of reims, northeast of paris in the champagne region. At the moment, according to various french media reports there are between 10 and 20 police cars is going around undercover trying to find these three suspects. Journalists have been warned by the police that they have to be very careful because until the suspects are arrested, there may be some more shooting happening. So the story may not be over quite yet. The police lost track of the three suspects earlier this morning in the 19th district after they shot 12 people dead at the Charlie Hebdo headquarters. We also have information about the background of the three suspects. According to several media reports, two of them are brothers, 32 and 34 years old of french and algerian descent who came back from syria over the summer. The third one is purportedly the driver who helped them escape from the Charlie Hebdo headquarters, possibly an 18yearold homeless man from paris. This is what we know so far. The police raid in operation is still underway. What do we know about the city of reims and what that may have to do with this . Im sorry, i did not catch your question . What do we know about the region where the police are right now . What do we know about that area and the people that are in it . The city of reims is not known for especially violent background or anything. It is not what you may have in your imagination. It is further out. It is more the countryside, in the champagne region. It is nothing to do like what we saw a few years ago where you had cars burning in the suburbs of paris. This is not that kind of area. It is much further out, much more in the countryside. The notion these could have been people who fought in syria is sort of the Worst Nightmare of the people leaving, particularly france, who has the largest Muslim Population in western europe leaving to fight and coming back with both possibly the training and ideology hardened by battle. Of course, and the problem is france has been under threat already for the past few weeks. We have already had two smaller terrorist attacks happening near christmas. Some extremists, some terrorists driving into a crowd at a christmas market, also attacking some policemen just a couple weeks ago in different cities across the country. There is this antiislam fear around the country, and this incident will not help the antimuslim feeling. As you were mentioning, with 5 million muslim people in france, the most important thing right now for the government is to calm down and Show National unity and to not mix the peaceful Muslim Community with the terrorist. Thank you very much. For more perspective, i spoke with bob milton. He is retired commander of the u. K. Metropolitan police and asking how this attack may be different from other attacks previously seen in europe. I dont think there is a massive difference. I think the response to the 2005 attacks in london and the response to this attack will be very much the same. The Police Agencies and the intelligence agencies will want to identify these people as quickly as possible and will use a whole range of methods to do that. It is important that the public will be vital to providing information. What we need to do is track these people down, find out who they are, and monitor supporters from in france, are they getting support from overseas as they claim from al qaeda in yemen. We are already starting to see a lot of that. In 2005, the smart phones the cameras, the videos everyone carries now are not as prevalent in 2005 as today. We have that today. We have seen pictures of the gunmen. Is that going to help, because these guys wore masks and had this carefully plotted out. What is going to help is all of the video cameras by the members of the public, but more important the cctv cameras will help us track how they got to the scene and how they got away. It is one of a number of things that the police and security people will be doing. I was just picking up something your correspondent set in paris said about paris about the repercussions to the Muslim Community. This is something the police are very much concerned about. Will the rightwing take it out on the moderate muslims were clearly not involved in this at all. You talked about cctv. I know that london is rife with cctv cameras everywhere. Is paris similarly saturated . I should imagine so. I dont have firsthand experience, but we work very closely with europe. Europe learns from what london does, with the u. K. Does with cctv. We have facial recognition software, we have very good automatic number plate readers right now. We can track vehicles easier than in the past. That is how we tracked the london bombers up to the leads. The technical leaps we have now have moved on and hopefully they will help the police in their investigation. What kind of thing will the police be doing right now . We know that the gunmen ditched their car, that they jumped into another car. What will they be doing with that information on the ground right now . Well, the senior investigating officer in charge of this will have a number of key strategies. The first one is to identify who the suspects are. So there will be a lot of work trying to track them back to an address to see where they came from. Is that address a bomb factory are there firearms . We need to neutralize that as soon as possible. We will also be looking at gathering evidence from the witnesses. All the people who saw what happened will be interviewed in the evidence gathered. The video on their phones will be seen. There is a whole range of other things they will do to try to protect the country. They will close borders. We dont want these people escaping. Because europe has a euroborder, the u. K. Is separate, but the rest of europe has one single border, so they will have to work with european allies on this. We have seen a lot of cooperation already. Thank you, bob milton. Bloomberg west will be right back. The future of paytv is a hot topic at the Consumer Electronics show. Dish kicks things off with a streaming bundle, offering content like espn online. And Charter Communications teams up with cisco to offer cloudbased programming that they will be able to update via the cloud despite the set top box. Charter has the content, cisco is providing the networking and data centers. Could this be the future of paytv . I spoke with cisco about this. What we have done with charter is exciting and is really a combination of all the things we talked about. Video is moving more towards a cloudbased video delivery model. Charter is offering a new experience, leveraging the technology element, as well as offering the ability to move towards new experiences both from the software and user guide, but also with the settop box they will deploy. When you say leveraging the technology, what are you talking about . What kinds of technologies are required to make this work that were not available five years ago . Sure, there are a few things. First is the ipbased network for the foundation of what needs to be done. The second is you have to be able to render the video from the cloud. Instead of doing the video transformation inside the home you are actually doing the video rendering from the cloud. That means charter can deliver this experience using any device that they have. The 10yearold device they have been putting inside the customers homes or the ones they have been putting in the past few years or the new ones. Newer devices will be 4k capable with multiple tuners. If you have five televisions inside the home and five programs to record, you can do that with one device. Those are the abilities of the new platforms also. The cloud rendering is interesting. The reason cable boxes render on the box the Computing Power required to turn bits into video is so massive and you can move more along the pipes when it is just digits, now just rendered video. What has changed technologically to make sense of rendering on the cloud . A lot of the video processing capability, the Cloud Computing processing capability, as well as some of the technology about taking video streams and putting in them into ip video streams and putting them into a thin client. You do not need as much Computing Power in the home. You were doing more of the processing in the cloud. In addition, software, downloadable Security Solutions which we can actually deliver to the residential gateway from the cloud. A very interesting capability. Also, Digital Rights management. Both very important for charter and the rest of the industry. Lets talk about the rights issue, because its such an interesting and archaic thing, the way they think about things in the way content providers protect their content from potential users and strike these deals that do things like people keep people from being able to watch espn online. Dishes trying to do Something Different like that. When cisco approaches this business, how do you try to get around Digital Rights issues and content licensing issues . From a technology standpoint any service standpoint operators like charter want to be up to take their content and services and be up to offer them on any stream. That is what charter is being able to do. Clearly there are rights managements they have to work through with content players and having the right solution for that makes them available impossible to be up to make these capabilities. A very important issue for the industry that requires a solution that we are working with charter on. Absolutely right in terms of what youre saying. Doing that with multiblasting is exactly what this is going after. I was thought a fascinating part of ciscos business is be feed the new technologies that will sock bandwidth, whether it is the flip phone of yesteryear are this. Is this part of that, showing what can be done so people are just doing more online, more networking, more cisco boxes being slung around the universe . As we go back a few years we predicted that video is going to be very predominate across the industry. Video is becoming the new voice in terms of communication and collaboration inside enterprises, inside the consumer world, and it is gaining more capability even as entertainment video gets delivered. Not just from professionally organized content but even personal content being generated. Whether it is through personal handheld devices or mobile devices or gopro, etc. All of that content is being generated with very high quality, 4kcapable, being delivered to any user on any glass, that is what we are starting to see now. Up next, instacart raises more than 200 million. We will talk with an early investor, next. Im cory johnson, and this is bloomberg west. Instacart is the start up that promises to deliver groceries from your favorite store in about an hour. They have raised 210 million from investors. A personal shopper partners with whole foods and costco, but this latest funding round is interesting. They have some big competition. I will speak with the instacart investor. Instacart is interesting because you have these really important partners that instacart is enabling to deliver. I think of the analogy of the casinos in the early 1980s. The casinos had a lot of people coming in and out and did not know who they were. They actually created cards. Now instacart is able to give Grocery Stores data that other companies cannot capture. A popular company in the johnson household. I also got a instacart delivery yesterday. I did the whole thing, put on the green tshirts, delivered groceries. Its interesting, these Big Companies like whole foods costco are not trying to do this themselves. Why not . Its hard for a Large Company to go out and do it. Instacart has a different model where they are bringing together a marketplace a firsttime shoppers, maybe they have different jobs, more flexible hours, and they are pairing it with different kinds of Grocery Stores. So they are not holding inventory. They are not holding inventory, they do not have warehouses, they do not have employees, they have an uberlike model where they have regular people. It is an open model like uber where the kicker uses a smartphone and uses their own car. Absolutely. They can login and logout. They may have different jobs. What you are really getting is this idea of being able to deliver something to somebody and capture that data and create that customer relationship. The other piece that is a key strategic advantages they are already profitable, but you can also start to spin up newer cities faster. They are already profitable . Really, thats interesting. Is that what you want this early in a company . I dont think it hurts especially in this kind of environment. It does not hurt. Interesting. Look at all the cities that instacart is in, boston, new york, d. C. , portland, los angeles. Im a very smalltime investor, but in the history of knowing the founders, and i have been with them for years, every time they have said something about their ambitions and i thought in my head no way they have proven me wrong everything all time. They think they know a secret about building a big independent company like uber. They are facing serious competition from amazon doing grocery delivery. When i was out yesterday with the instacart delivery, we saw a google delivery guy going by, and there is a lot of that stuff going on with all the other Companies Competing with instacart. Its tough. People want to deliver within the 48 hour window. 48 hours, it is really how to get something soon. The instant cart model starting with groceries is how to get something to you in an hour in more cities. If you look at the footprint of google shopping express now, amazon express now, its not the same as instacart and that is because the model is different. I was also impressed with instacarts quality of produce touching the bottom of the pear to see if it is ripe yet. Those are the things that make a difference. They have people who are trained. Thank you very much. We appreciate it. Bloomberg west will be back right after this. This is bloomberg west. Im cory johnson. French antiterror forces are raiding a site northwest of northeast of paris hunting for the gunmen who opened fire at a french satirical magazine killing 12. Various reports from french media says the suspects have been identified, two brothers in their early 30s, another in 18yearold. Leaders from around the world condemn the violence, including david cameron. Here are some of Angela Merkels comments. It was a very moving moment when we where able to address this, both of us, the french president Francois Hollande. We assured him that we would do everything to help them in this very desperate hour. We stand by the french people in all of those who feel committed to freedom of the press. We stand up for freedom of the press in such a resolute way. These are the basic freedoms that we hold dear in all of our countries. Vigils were held in paris and other cities, People Holding signs saying that they stand in solidarity with journalists. Closer to home, i sat down with the former mayor of San Francisco, willie brown. San francisco is the sister city of paris. There are deep ties between the two. I started off by asking willie brown what his reactions were to the terrorist attack . It is as if it happened to San Francisco. We are a sister city. 2009, the mayor of paris celebrated my 75th birthday with a blacktie party at city hall in paris. There is an interlocking relationship. Some of our educational systems, many of our schools. One of the languages spoken at our schools, one of the best schools, a frenchamerican school here in San Francisco. When that sister city is hit, it hurts us as well. I realize you have not been mayor for a while, but the sense San Francisco police