>> live from pier 3 in san francisco, welcome to "bloomberg west." stocks are taking a major dive on wall street as the s&p 500 he races gains for the year. this comes after european onkets entered a correction signs the global economy is slowing down. plus, retail sales in the u.s. also fueling the decline. airline stocks among those tumbling today after the cdc said the second health care worker infected with ebola flu on frontier airlines from

cleveland to dallas monday night, the night before she reported symptoms. the mayor of dallas says she lives alone. >> we want to minimize rumors and maximize facts. we want to deal with facts, not fear, and i continue to believe that while dallas is anxious news this and with this this morning, the anxiety level are nota level, we fearful. >> meantime, president obama has canceled political trips to new jersey and connecticut for an emergency meeting on ebola. they's book ceo mark zuckerberg and coo sheryl sandberg have met with other executives in south korea today -- facebook ceo and coo. neither side gave details about the meeting. and qualcomm is buying british r, which will allow

qualcomm to expand into chips for the so-called internet of things. was a leader in bluetooth technology and began focusing on devices about five years ago. is this the week the tablet begins its comeback? apple is holding an event tomorrow where to do ipads are expecting, and google announced its nexus 9 tablet -- apple is holding an event tomorrow where two new ipads are expected. part of the reason -- the rise of larger screen smartphones, but another big 1 -- people just do not replace tablets as quickly as they replace their phones. is the tablet in trouble? bob, i will start with you. is the tablet in trouble, and

could tomorrow change things? >> i don't think tomorrow is going to change anything, to be honest, and i think the tablet is challenged. i put out a forecast that says i don't think tablets ever even surpass pc's, which is a radically different view than most take. with there finding tablet is tablets are more of a nice to have device, not necessarily a have to have device. >> a niche market? >> i will not call it a niche market, but a lot of people who want a tablet already have one. they are relatively comfortable with what they have, and they are not really upgrading them on a frequent basis, and that is a big challenge for the market. also seenket has explosive growth. i love the charts that show the adoption of radio was so much slower than tv, which was so much slower than mobile phones, which was so much slower than smartphones, which was so much slower than the tablet, and we

have had such rapid adoption that of course it's going to slow down a little bit. >> i don't disagree with you. in fact, that's very true, and at a certain point, we have to wonder, one of these charts one of these days is going to go up like this and then like that, but i still think the issue with tablets is a lot of people have not really figured out what they want to do with them other than play games, watch videos, and do stuff like that. nothing wrong with that, but that does not dramatically change people's lives notssarily, so we does necessarily as compelling a device. >> i am one of those people, i will say. the google htc nexus 9 is also coming out. how will it compare to the ipads available tomorrow? >> i think it will be relative on par -- relatively on par. i do not think announcements tomorrow or today made by htc will change what is happening in

the market. people who want a new tablet have gone out and purchased a tablet. even apple is still supporting 2ftware back to its ipad device, this is contributing to the extended life cycles are seeing in these products. we expect a single digit market this year. close to 6%. a big reason for that is because we expect contraction from apple in the ipads face, which i do not think is a surprise to them as well. >> i wonder if -- to that point -- if the hardware was selling faster than the software and use cases could build up if apple might be focusing in the same way they did with an ibm announcement, focusing on the enterprise, focusing on a device that may be used as a cash register or something tomorrow so that they are really building out the use cases, not just the .ardware potential >> we have certainly seen the

use case expand from just consumer. there is no question in mind that the next iteration of cash -- cash registers are not refreshed that often. these are items that have 10 or 12-your lifecycles rather than four or six-you're lifecycles like the tablet or pc. apple is certainly focused on where they can move product there as well, but for apple, i think it's about the overall ecosystem, so they are making plenty of money on their iphones. >> what does it actually mean for apple overall and google overall? >> there are two important points, and you guys hit on it in your intro. 1 -- the impact of the large smartphones is huge. remember that a lot of the growth in the tablet market over the past few years has been in the smaller seven-edge tablets. that is the category in

particular that gets hurt by large smartphones. >> do we know that yet, or do we suspect that? >> i think we know that to some degree. there is a reasonably solid fact on that front. there certainly is on which tablets have sold, and there's a little bit more speculation than on what the impact is going to .e qualitatively, i have talked to a lot of people who have said 6w they have gotten an iphone i've hadre using their a lot less. i think the question tomorrow is what they will do with the ipad mini. see moree are going to specialization and tablets. we are going to see things like a point of sale tablets for commercial or a gaming tablet. if and when apple does do a larger tablet, i think that is an interesting product as well, but it is more of a specialized opportunity. that for thehink

apple geeks out there, which is pretty much everyone who watches the show, right tackle there is a fundamental change going on at the company that is represented in the watch and they will likely have lots of fusing theroducts watch. it's very not like steve jobs to have lots of different price points. >> cory johnson, our editor at large. all. you of course, we are all over apple's ipad and whatever else comes out tomorrow. i do want to get to the cdc justing on ebola that has started. let's get to our senior markets correspondent julie hyman with breaking news in new york. >> this is the briefing the cdc has been holding daily with the media to keep them posted on the developments about the disease and its spread here in the united states. remember, a second patient seems to have come down with ebola. she was the nurse who also was in very close contact with mr.

duncan, who died from the disease in dallas. the cdc now says that that second patient is ill but clinically stable and that a lab confirming a positive ebola test for the second patient should be coming shortly, so confirmation of the diagnosis should be coming shortly. also, the cdc and its director saying that the infected workers, most of them, had intense exposure, so seeming to make that difference that this was not some sort of casual infection, that it was because they were in such close contact. also, the cdc saying the new patient, the second patient, should not have traveled on an airline. there is a report she did fly between ohio and dallas, so now, there are concerns about her being on that plane. the cdc saying that person should not have been on that plane, but that she did go to ohio before the first worker was diagnosed. we continue to bring you headlines from this news conference coming to us from the cdc and keep you posted on all of the developments "bloomberg

west, and -- and "bloomberg west " will be right back. ♪

>> welcome back to "bloomberg west." i'm emily chang. 3-d printing is one of the most exciting areas of technology, all 3-d printing companies living up to their promises? our editor at large, cory johnson, took a look at one company, and what did you find out? >> last year, few ipos work harder than the ipo for the 3-d printer maker. the company said it would use ipo proceeds to expand its business in the u.s., and here we are a year later, and the company is not telling investors just how slowly that u.s. expansion is going. the idea of 3-d printing excites the imagination.

on-demand products from guitars to guns, sexy dresses, fully functional cars -- the holy grail of 3-d printers are at opposite ins of the spectrum. on one side, the small printer, the desktop size printer, the laserjet sized printer that could even go up in the space shuttle. on the other side, huge format printers that can make ins like a jet turbine or the hood of a car. when german company is going after that giant 3-d printer market, and they say they are focusing on selling to auto companies. their mini-jet-- sized printers help launch the company. now, they are promising a new leg of growth with a second factory opening up in michigan near the motown automakers. here is what the ceo told investors on a second quarter

conference call. "the facility will initially support or large format printers by the end of this calendar year . we expect to be using on-demand parts by the end of september or early october. we will start to see revenue contribution in the fourth quarter." so i headed to detroit to see this new voxeljet facility. so here i am. canton, michigan, middle of october. this is the voxeljet factory. as you can see, there's not much going on here. let's check it out. inside, a big, big, basically empty room. there are no parts being distributed, no printers being manufactured. just a few workers doing some rudimentary framing work, one literally sleeping on the job. -- 41s the right address 30 haggerty circle, same as the website, but this is about as tranquil as a manufacturing facility can be. the facility clearly was not

shipping on-demand parts by late september or mid-october. will might be making large-format 3-d printers by the end of the year. perhaps all the 3-d printer companies will live up to the hype someday, but for now, 3-d printing is hard, and for voxeljet, apparently hard to build a factory, even in detroit . with we contacted voxeljet what we found, at a spokesman said the facility is running 46 weeks behind schedule. the company blamed construction delays, and the building had been empty for a really long time. -- a spokesman said the facility is running for his six weeks weeks schedule -- 4 to 6 behind schedule. we'll final more about the hype and the hope in the 3-d printing market with a manufacturing expert who joins us via skype. we showed up at this factory

that they said was already contributing, shipping parts. it clearly was not doing that, and it did not look like there was any position to do anything this quarter, though they say they are still hoping that might happen. is 3-d printing reality or hype? >> that's a great question. my position is we are overhyped right now. there's a lot of truth in what is being said, but the apectations are being set little too aggressively, two high ambition into short of a type frame -- timeframe, but if we back off and look at the nuggets of truth, there is a lot of reality. it is an industry where players can succeed, so the future is bright, but maybe just not in the timeframe people are predicting and what we read in the headlines. >> slightly bright, no sunglasses required. i think one of the things people do not know about this is that this is an old industry, an

industry that has been around for decades. >> absolutely. i got involved in the industry in 1990. there's a bit of a disconnect, though, because it was originally called rapid prototyping, so the lineage does not really track well for a lot of people to jump in and want to research the history, but it was founded in the late 1980's. 3-d systems was the one that originated, and we have been growing steadily, incrementally in technology, adoption, and use cases over the last two and a half decades, and i expect to continue more incremental growth, but a little more accelerated because of the awareness and attention we are getting these days. >> let's start with hype versus compared what is really happening out there in the enterprise world of this multi-decade-old business. >> certainly. on the industrial side, i think what we need to do is understand that the cases we are hearing about, the stories we are reading about -- ge with the engine,el on the

reticle applications, turbine blade -- those are the exceptions and not the rule. they are being held up as the poster children of success to show this bright future of tomorrow, but what people need to understand is those situations are somewhat exceptional. there are certain circumstances that come together that drive the use of 3-d printing. in the short term where the technology exists today where people are comfortable and what their expectations are, in many cannot deliver what they are expecting, but that is in manufacturing. please do not forget that we are a tool fort using as engineers to vet new designs before they commit to production . that is vibrant and growing, but it does not get the headlines because it is not a sexy topic. what is sexy as the consumer being empowered to become their

own manufacturer. those are sexy headline stories, and there is truth in those, but if you back it off to the average manufacturer with more traditional needs, wants, demands, and desires, we can still satisfy them and service them, but it is going to be more on an exception basis. a given component on a given product instead of everything lock, stock, and barrel. >> i guess, like the voxeljet factory, it is not quite there yet. thanks. we appreciate it. >> detective johnson on the case. interesting piece. facebook and apple's moved to to covermove egg-freezing -- procedures next. ♪

>> will return to "bloomberg west" in just a moment, but breaking news -- we are seeing an acceleration of decline in the stock market. the dow jones industrial average is down more than 400 points, more like 425, as we see an acceleration of the selling today. nothing seems to a changed , but we talked about the layering of different rings that seem to trigger the selloff. the selloff was more of a continuation of the selloff we have seen over the past several weeks, just an acceleration of that selloff. headlines crossing this air with a second nurse in dallas who has been affected by the ebola

patient, and not only that, but she had flown on a plane from ohio to dallas. we got details on that just a few moments ago, that she did not necessarily exhibit symptoms, but she indeed -- they are awaiting the positive confirmation test on ebola. we have that. european markets selling off very sharply under more concerns about greece and the european market more broadly, so all of this layering on, and economic data in the u.s. helping to exacerbate the selling. matt miller and olivia sterns are with me right now, and like me -- like everyone on wall street, in new york, anyone who has been watching the market -- we have been watching the market today very closely. are nowzing that we down more than 400 points. worst day since november, 2011, for the major averages. >> we started off this morning erasing the s&p 500 gains for the year. the s&p has now gone negative for the year. the dow industrial average at

more than an eight-month low, and you are starting to see limit downmarket circuit breakers getting hit. it is really an incredibly broad selloff as well. you mentioned europe, but also treasuries, bonds, yields are going down to lows that we have not seen in quite some time. for exfo, the 10-year down below 2%, and we are seeing the inverse of that, the price, for example, of the 30-year, rising there.real moves this morning, i had been bouncing back and then turned back around. it is across all asset classes, across all regions, and it's a crap -- it is an incredible selloff. >> the carnage we are seeing in

europe is much worse. milan and greece hit much harder than that, and a bondrun-up in peripheral yields. >> thanks. we'll have more on the markets and more "bloomberg west." ♪

>> i'm emily chang and this is "bloomberg west." silicon valley is known for its job perks. apple and facebook are going above and beyond, covering the cost for female employees to freeze their eggs. facebook is offering full coverage up to $20,000 and apple plans to offer it next year. this aztec companies struggle to as techomen -- companies at struggle to retain women. obviously, this is giving women

the power to make a choice. what do you make of apple and facebook doing this right now? >> we applaud their efforts. they are definitely tech innovators. they are leading the space in the employment benefits area as well. >> how likely will other companies follow suit? >> a number of other large corporate citizens will in fact pay for egg freezing for their female employees. ,> is this telling young women we want you to be a mom, just not while you are working here? or is this profamily? >> it's absolutely profamily. they are trying to help women to the degree that they can have it all, be able to do that. both facebook and apple and all large corporate employers should embrace this.

we endorse that as well. in the event that doesn't happen and you want children later in life, this is like an insurance policy so you will be able to conceive in your mid to late 30's. with eggs you may have frozen in yearly 20's. -- in your early 20's. >> in vitro is so very difficult. is this making false promises? putting the interest of the company first thing work now and have babies later? >> it's a pretty invasive procedure. it takes a while and it's very costly. >> i will answer those two questions. the first one about false promises. thfertility is directly

related to age. it's not a linear thing where if know 55% of the time you're , it wouldet pregnant not mean if you froze 12 you had a 100% guarantee of success. it means or success is much likelier. if youot a false hope freeze eggs when you are younger. it is much more difficult to conceive after the age of 35 as or fertility declines. question about the cost for treatment and whether the procedure is invasive, it's actually not invasive. it's half of an ivf cycle. you get accustomed to the injections. it's easy to inject your self with the medication.

the retrieval is a 10-50 minute outpatient procedure. most return to work the same day. for sure the very next day for we don't think it's medically invasive. about as the cost, it's $10,000. we help the patients finance treatment. we negotiate with artillery practices around the country -- fertility practices around the country, making egg freezing and affordable solution. >> how widespread is egg freezing today? it's been around for 30 years. how many people are doing this? should it be routine? >> we think egg freezing will become standard affair in the next 5-10 years for all professional women. annualseeing about a 45%

cater over the past five years. about 15,000cted cases of egg freezing today. we dissipate that 45% could get as high as 50% over an annualized basis so that you could see 60,000 plus annual cycles. this also opens up a conversation about the cost. carryy not be able to those eggs yourself. employers beuld covering the cost of surrogacy and storage be on that? >> it goes back to retention and recruitment of employees. i know apple and facebook have surrogacy plans. it's up to the individual employer could we have seen these companies be leaders in their field. they are providing very aggressive benefits. we anticipate others to do similar things.

not to the extent that facebook and apple -- it's incredibly generous. >> thank you. , half a billion online shoppers and china will have a way to shop in the united states with today's introduction of the pass. e ♪

>> you are watching "bloomberg west." is pushing further into the u.s. market today with the new payment service called epass . it will let chinese shoppers of byproducts directly on u.s. retail sites and manage payments and door-to-door shipping logistics.

's u.s.own with alipay president for an interview ahead of the epass announcement. digital version of cash in china. for almostalipay everything over the internet. they pay their bills and restaurants. they do a lot of things with alipay. it is hard to imagine someone without an alipay account. >> it has been referred to the crown jewel of alibaba. what is the relationship today? >> and processes every single transaction within aligroup properties. >> they are two separate

companies. >> structurally, they are two separate companies. >> you just launched alipay epass. >> it has been fantastic. we are taking a different angle. is a business service to u.s. and european merchants so to tapey can use epass into huge chinese consumers. if everybody in china has an allowingcount, by u.s. company's to accept epass, they can directly perform transactions with chinese consumers. >> you are giving u.s. retailers exposure to the chinese market. macy's, if you are a chinese customer, they will give you an option to pay with alipay. >> that's exactly right.

people can go to macy's.com and by thanks direct over there and epass takes over logistics. we deliver the macy's goods directly to the doorstep of the chinese consumers. over 100there are million trips overseas. they found something they love, but once they go back, that experience should continue for the u.s. merchants. they should be able to go to macy's.com and continue to enjoy the experience. i talked to jack mall about his timeline for expanding in the united states. have a lot of small business in the u.s. we sell american cherries and seafood.

not tocoming here compete, but to help a lot of small business. part ofs alipay alibaba's expansion strategy into the net states? we are in infrastructure company. we allow global companies to compete globally. .hey can reach to consumers people who have needs, globally. is provideducture aligroollie group and -- up and alipay together. >> how does this help prevent counterfeit goods? -- ife is what i believe you give access to authentic goods, people will enjoy the experience.

you give the people the real things, the real experience. you can make options easy, such as easy access to your website. -- importshem to use will be easy. it will provide an authentic experience. part of the problem is that chinese consumers are limited in the amount of currency they can convert to dollars. they have difficulty opening international accounts. how do you circumvent that? with alipay, there is no such limit. license agreement so there is not an issue with alipay.

in 2013, chinese consumers spent $33 billion on overseas websites. what do you see as the growth potential? >> we are at the beginning of this huge industry sector. , there's a lot of difficulties for chinese people they don'tverseas -- have the payment method. here to streamline the process is. -- streamline the processes. this is a 100% increase year-over-year. >> who do you consider their biggest competitors? think we havelly

a competitor in that space. we are doing things very differently and focusing on serving our members and consumers and being the best of the best u.s. merchant experiences to chinese consumers. the president of alipay u.s. is coming up at the top of the hour. mark crumpton has a preview for us. >> we are going to continue to follow today's it's been a lot and get a look at the facebook. -- the beige book and examine the market for secondhand luxury items. i will be joined by the ceo of the real real. >> we will see you in a few minutes. before instagram and the iphone, it was polaroid that dominated

camera technology. how is the company adjusting? scott hardy is with us, next. ♪

>> i'm emily chang and this is "bloomberg west." it made many apple users angry last month when the new u2 album was downloaded for free. bono is apologizing for the whole thing. i'm sorry about that. idea andis beautiful got carried away with it. artists are prone to that kind of thing. generosity and a dash of self-promotion. way theeek after giving

album, apple created a page telling people how to remove it. i don't understand why people were that upset. >> i do. it's their phone. >> is a free album. feel sorry for him. polaroid was once the global household name for photographic technology. then digital cameras came along. now, the companies try to take on go pro. polaroid recently launched the q. joining us is scott hardy and cory johnson. why buy your camera over the go pro? >> we are looking at a different segment of the market. there is a lifestyle segment which is less about jumping off of clips in norway versus kids a camera to film themselves writing their bike or skateboard.

theas important to hit lower price point at $99 and have a design that is easily approachable. >> does the name polaroid resonate with those kids? >> you stopped making the polaroid cameras in 2007. >> the polaroid brand stands for instant, it stands for sharing, it stands for fun and value. the younger demographic loves our brand. go crazy for analog cameras. there is this super cool element we have with our brand. it's not just about cameras. it's about lifestyle. >> the former head of apple design -- tell us what is special about it. >> ammunition is a firm in san francisco. they designed the product for us. we think the market is much

bigger than what has currently been tapped so far by go pro. from our perspective, we also agree with that and we wanted to do something unique, fun and have a fresh perspective. they designed something that is play full, something that has a magnet. it's a one click, one touch press like the polaroid one step camera was. >> how does this market play out? >> today, the market is dominated by go pro. sony has a play in there and they are having some moderate success, but not success by sony standards. we see the market is going to continue to grow as people find new uses for the product. that's why our camera is unique and different.

go pro did $1 billion in revenue last quarter and you are doing the same or less? >> we are doing less. polaroid retail sales in 2014 will come in around $200 million. >-- $600 million. >> what do imagine those different uses will be? >> use cases we have not even thought about. i have five kids and my two youngest boys -- i brought these cameras home and they went crazy. silly little things. it fits in areas that bigger cameras can't. >> we are living in an instagram age. people can shoot video on their phone. if it's not going to be as high quality as it could become a why not just shoot on your phone? >> if anyone has -- you buy a

new iphone and its subsidized. iphone, you that are shelling out $600 to replace it. it's not suitable for action sports situations where you are jumping, you are at the beach, playing in the dirt come outside. speculated that when over,ean's boil they will find it sprinkled with go pro's. >> you can lose it or break it. $99, it opens up a world of possibilities. >> go pro is supposed to be a media company. do have media aspirations as well? >> not today.

>> they don't have any revenues from media right now. >> i don't know what their strategy is. you do have to wonder how it can be justified to be so high. we are more about selling products under the polaroid brand and building that lifestyle. scott hardy, thanks so much for joining us. it's time for the bwest byte. >> three. apple mistakenly revealed the details of the ipad 3. they are announcing it by accident. and ipad airini 3 2. this is what they are supposed to be unveiling tomorrow. a big mistake. we will be covering the actual

event in depth. cory will have all the information for you. that does it for "bloomberg west ." ♪ >> let's take a quick look at where we are standing at this moment in the markets p we selloff -- ine if the markets. we continue to see the selloff. the gains have been raised. i'm joined by the chief equity strategist at wells fargo advisors. there are 70 different things to choose from in terms of the selloff today. -- so many different things to choose from in terms of the selloff today. >> we've had some negative sentiment because of international slowing. there are a few data points this morning on retail. the move forward

we have been seeing here for the last two weeks. >> traders have been mentioning recent have seen re negative hedge fund performance. is that something you have seen happening as well? activity on the part of portfolio managers is always this time of the year. it somewhat of an issue. you see windowdressing for the end of the year. thought we would have a more volatile year. wasn'tter liquidity there any longer. we have had low volatility for years. course worstf september and october.

we see windowdressing this time as time of year. all of these things have come to play here. years -- fullback for .5% pullback for years would be good. still looking for 7% year.gs growth next on the marketsapwe are

again in 30 minutes. ♪ >> from bloomberg world headquarters in new york, i'm mark crumpton. this is "bottom line." we begin with breaking news. the release of the federal reserve's page book. reports from the 12 regional banks of the u.s. federal reserve system. peter cook joins me with the details. >> good afternoon. so many questions right now about the strength of the u.s. economy and the strength of the global economy at this moment. a snapshot of conditions around the country.