pier three in san francisco, welcome to "bloomberg west." i am emily chang. here is a check at your top headlines. is there trouble ahead for the u.s. economy? first-time jobless claims in the u.s. rose 313,000 last week. the highest number since early september. in the meantime, october new home sales came in lower than estimates. capital goods posted an unexpected drop here at alibaba sees major opportunity in india. plans to ramp up investment in the country.

chairman jack maas poke about the plans in new delhi. >> we can see a large number used in our service, which show our great respect for the passion of catching opportunities. we wish we will improve on the platform to help a small business. bejack moeller will also meeting with the ceo, india's largest e-commerce site. the declining russian google. has lost a quarter of its value against the u.s. dollar since september, prompting them to buy the iphone on achieved in russia. has cut theamsung price of the galaxy s5 in russia. sony is developing a watch made out of electronic paper as soon as next year. the per -- the precise

technology is unclear but people familiar with the matter will say the watch emphasizes style. to spur innovation inside the company. story in the headlines today, a winter storm in the northeast. for more on this, we are joined by heather. one of our producers and tonight in the airport. not a good. not good as we had to the rest of the day. in your neck of the woods, it is looking pretty good. northeast is a totally different story. a look at the satellite radar. you can see all this rain with a

lot of cold air. some pretty heavy snow. in west virginia, right along the border, 11 inches. that is up in the mountains. pocket of deep blue from harrisburg up from albany, mixing in his philadelphia. the major airport in new york city. even three hours. and waitto sit around for a little bit. has been a soggy start far wednesday. delays are likely along i-95. slowing down for the heavy rain. improvements are still ongoing across the sunset -- the sunshine state. in the coming to an end snow will last a little while

longer here in the northeast dairy 6-12 inches of snowfall, right along the i-89 core door come all the way through parts of eastern pennsylvania into scranton. albany as well. in portland, you're looking at 6-12 inches. of course, a big travel area along i-95 near it we will deal with some accumulation as well. a lot of delays at the airport and on the roads. back to you. >> all right. thinking about all those theelers trying to navigate storm. thank you. to our lead, uber shows no signs of slowing down. company in talks to create new funding at a $40 billion valuation. this is according to people with knowledge -- with knowledge of the situation. if it goes through, uber's evaluation will have more than doubled as june.

this shows investors are not scared of all the controversy surrounding uber from the battle with regulators to recent comments about targeting journalists. joining me now in the studio with prospective -- perspective. and another great giver of perspective, our bloomberg contributing editor. i will start with you. both of you are journalist. what do you make. 35-40,000,000,000 dollars valuation? just a week after all of this explosive pr? >> convenience trumps pr and bad behavior. that is what it is. if you look at the very next day after the story came out, there .s a rainstorm in san francisco 5.7 search pricing. it tells you people do believe in the convenience the service

offers. i think the investors are looking at that as an opportunity. .e cannot look at uber as hard as it is to factor in. at that standpoint, your factoring in a lot of the .nvestors >> the number sounds extremely large, 35-40,000,000 dollars. there are x is out there saying it is worth much more. what do you think? >> is a beautifully conceived business. the convenience is real. there is no question the company has a great product. it is continued and flat-footed and other metaphors that are negative. this company would receive along , having never really

made a public statement about not just one incidents, but a series of incidents is they have recently been accused of. there have been reports the firestorm of negativity about the culture of the company is not irrelevant to the fundraising. on the other hand, if you're just looking at it on pure dollars, which i frankly do not think is necessarily wise, i can see the justification for a high valuation in this company. >> the executive in question has apologized and yet able out there, peter called and ethically questionable company, and sara calls it a morally bankrupt company. what do you think? >> there are a lot of allegations flying around on all sides. i will not say to an individual person. i do think not just uber, but everything in a technology

company, which is involved in consumer lives has to come up with what i like to call terms of trust. livesnnot change people's without having a moral compass. matter if you're uber were the next uber coming along aaron it is time for silicon valley to look at itself in the mirror and ask itself what is the right thing to do. think making one company the point person for all the problems is the answer. the answer is, how to resolve the bigger ones? >> a lot of people are talking about deleting uber but not anybody has. someone suggested, might silicon valley regret one day this supergiant they have created?

one day, could uber, which still has no serious competition, get so big that they turn on us and jacked up prices? >> certainly, that is not inconsistent -- inconceivable when so it has a powerful business model. i think that is not the near-term concern. goesearer term concern very much to what he was talking about. he has a judicious way of looking at it. judgment and culture really matters. company cannot do with a relatively minor set of incidents this they have not directly addressed, and do seem wrongicate something is with the company's internal culture, it makes me worry that later, if they do become a global colossus, which has more market control, they might really be hard to manage and

hard to deal with both for customers and plenty of other entities in society. it worries me. companies don't have unlimited license in society to operate. the funnyer hand, thing is, there is this thing the manager of uber put out saying, haters got a hate. it is striking how every one of the negative articles have prefaced themselves by saying, i love the service, i got to the studio using the service, which was the case for me last week when i was talking about this incident. they have a great business and their great business people. doy need to make tweaks i not think are irrelevant to raising money, going back to my point before. aboutors need to think this stuff. anybody who puts money into the company without asking for this to be dealt with, i think that is beginning to suffer from a twisted moral compass.

coast, younow east are sticking with us. we will talk to you on foot after this quick break. a cfo accidentally tweeting about a possible deal. what can the company do to win back confidence? ♪

>> i'm emily chang in this is bloomberg west. twitter is trying to boost global growth. the company he's facing one obstacle after another. the credit rating is junk. the new cfo accidentally tweeted out plans to buy up a company and, changes laid out did not dwell investors. bloomberg me, our

contributing editor. ru is down on twitter is everyone else seems to be? >> no. being honest is one way of looking at it. they have to find ways to grow. it seems like people focus on all the other stuff on twitter except the good. the only thing they should be focused on is growth. month to 500. how do they make it interesting to people not on twitter just yet? that takes a little bit of soul-searching on the part of the company. that is why i find it funny that anthony,focuses on or centered on dm. uses twitter, dm are painful. but they are way easy. it is too easy to make a mistake using

direct message. exactly, which is what the problem is, and if they knew how to fix the project -- the product, there will be growth. not hidden away or difficult to find here this is where the company needs to figure out what is half to the future is and just follow it. do not listen to what everyone says too much. >> in that tweet, anthony suggested buying a company, and could beny reportedly a selfie service call shots that i tried out earlier today. i had never used it before but i retweets on my35 first shot. what do you think about this company and the potential that twitter is probably looking at a lot of different companies, but this one in particular? >> that is a fascinating story

that your experience is so probably suggests they should buy it. selfies are one of the great phenomena of our era. i want to echo these points, and it seems i always do. you cannot separate growth from the product. this product could turn out to be very healthy for the company. it will force them to more seriously except the criticism, which i think they already know about, but they need to focus on it even more. it is way too hard to use. people constantly focus on twitter there to facebook. twitter is very different from facebook. my wife, my kids, my mother, my neighbor in my apartment building in new york, they do not have any problem using they spoke from a day in and day out. many of them just do not understand how twitter works, the way it is structured now. have perfect -- personally

always avoided using direct messaging in twitter because i felt it was too dangerous and to the using and i do not like and what it will direct message me. i do not like to be expected to do it, and in my community, that is something people take for granted. twitter is a global facility that matters here it when the nigerian general recaptured the announced it, he on twitter. that is a reality. it is really important. but if they want to be a service for every man, they are not there yet. >> direct messaging is easy. i use e-mail as soon as i can. >> just to add to what david said, anthony is an x wall street -- i do not expect them to know how to use that product. >> really? come on. he made twitter public.

i do not think it is not that he knows how to use it. was amiss they. i am joking about that, but buyingeet, he could be something for his kids. it does not say he is eyeing a company. a mountain out of a mole hill. >> it sounded a lot more like puppies to me. -- like a lot more than puppies. all right, you are staying with us and we will see later in the show. games,up, video exploiting women. we will tell you about the controversy next. ♪

what it is.l this you and your feminist nazis are coming to take our balls, right? >> no. >> that is stephen colbert. posting blog posts about chauvinism. she has been posting and has become essential figure in the controversy known as gamer gate. -- for more, i am joined by a writer, sheila, in new york. gamer gate has taken on a life of its own.

term, what is gamer gate? fax there is not a one perfect definition. there is a strong threat that represents people who feel a sort of political correctness has seeped into german and dutch journalism. feminist there is a tone creeping into a lot of critiques of video games. gamer gate is intended to represent. since it started a few months ago, it morphed into a month , boundary list online mob of people who are targeting mostly women affiliated with the videogame industry for different types of harassment and even threats. in need of's role here? what is she trying to publish question -- accomplish? lot.ion has accomplished a she is a media critic who spend

hundreds of hours playing dozens of games. she has got 10 or 12 videogame consoles and she is looking for patterns in the way the games represent women. putlays all of this out and clip after clip of different kinds of games and lays them out. you can see that pattern of the same clichés about women being damsels, prostitutes, victims of graphic violence, showing up again and again in all these different games aired frankly, it is almost an academic sort of work. her websitere on and are available for free. when the online controversy started bubbling up, she came to be drawn into it and has become a target of the tremendous , peoplef online harass calling her and showing up in her house and even threatening

venues where she is scheduled to speak. some people involved in this are the same ones involved in gamer gate. it is all a big, chaotic mess. >> i wonder at one point the gamer industry gets out. theme time, you have saying there is no room for harassment in the gaming industry, and on the other hand, you have a new game that allows you to have sex with hostages and then kill them. a delicate position the videogame companies are in. several of them have said, we are against online direct -- her. many people believe that is not enough, and they need to take a stronger stance making clear they will not tolerate homophobia, racism, sexism, online threats of bullying and silencing of evil in any gang-related environment. prominent parta of the culture.

these are valuable franchises. anything that will risk that is creating a dilemma for the company. >> a great read. check it out. thank you for joining us. we will be back. ♪

bloomberg watching west. i'm emily chang. netflix has soon -- sued the former technology for fraud. cash kickback for two supplies and have deals to receive stock, money, or gift cards from other vendors. reporting directly to ceo marissa mayer. if this is even true. what are the implications for yahoo!? david, i will start with you. if indeed he really did this,

really? it is specific. >> these are devastating allegations and he seemed the very well substantiated based on the complaint with the e-mails, etc. you cannot expect very long for his job with yahoo! it sounds again is illegal on top of having effectively stolen, they somewhat netflix is accusing them of. three stories in this program about the ethical and legal behavior for technology companies. a report you just made about videogames, we have a major executive of the major silicon valley company is accused of taking cake that and then there is the whole question of the ethical behavior of uber. it is interesting how central technology has come to our technology -- our society.

now we're talking about companies at the core of modern life and how they behave. >> can you believe this story? >> it is a very big shock. the complaint is pretty specific. david is making a valid point. we came into a very different times in the technology industry. uncharted waters for all of us. been doing things i guess we do. sometimes, being morally ambiguous. shocking he would leave a digital paper trail for something like this. onwhat about this reflects marissa mayer's, who seems have a little bit of trouble hiring for seas fleet.

a yeare left in about and left with about $100 million or more when he was fired. you now have this guy who just started in august. question is hired a lot of people. to generalize about her with those two cases is probably a little unfair. this is clearly somebody she would not want to keep employee, based on the evidence. if she did not fire him right away, you would have to ask questions quickly about her judgment. it is more one of those, you win some and you lose some. she has had a pattern of that hires -- i bet she has hired 30 or 40 people. we have two year that maybe were serious mistakes, but i do not pass judgment on her at all. ceo just spoke with yahoo!

who recently took on more responsibilities when henrique was fired. she said she fell into who, most of the hirers were very strong. to what she had to say about investor and media pressure when it comes to marissa and how good a job she is doing. >> at the end of the day, we need to spend our time , again, for all those users and advertisers and shareholders. we think people will be focused on our results as opposed to anything else. >> you think the latest twist reflects on orissa? you have been -- on bristol-myers? -- on marissa mayer's? couldn't she have just picked up the phone and call hastings and said, what do you think about this guy? >> that is the challenge right now. it is a hard market.

remember scott thompson? it made up his whole career. >> yahoo! cannot win. makeu know, i think they -- sometimes you want to buy things you really want to believe in. turn a blind eye. i do not think this is as much a reflection on orissa. we are moving so fast, we do not actually due to diligence. >> how would you respond to that, given your equally long history covering silken valley? -- silicon valley?

dominant reality for so much of modern technology, we may have gone over a line that has to be recalibrated. this guy was very foolish about his use of e-mail. think you can say somebody should have necessarily known he was doing this. i do not think orissa would have been able to call to ask him if she could poach a guy she was currently employing. if that resolves it. there is a big set of issues about money and the relationship about money to business ethics and business behavior. the technology industry is going directly into, and we will be talking about that for the foreseeable your tour -- future.

>> think is a much. you're sticking around with us and we're looking later into the show. newfaa may soon introduce rules for commercial drones. what it could mean for companies like amazon and google and facebook. that is next. ♪

>> i am emily chang. this is a request. could the future of commercial drones be in jeopardy? the federal aviation administration has new rules before the end of the year. the new rules would mandate drone operators to have highlight licenses. they would have to fly below 400 feet and, in daytime hours only. the faa response to bloomberg for a request for comments for the respective roles. what does it mean for tech companies currently developing drones? michael, thew,

executive director of the small, unmanned aerial vehicle coalition. first off, what is your reaction to the rules? good or bad? >> it is good to be here with you. i think the reaction is they are not optimal largely because we are falling behind other countries. the european union, and we are seeing australia making incredible advances, india. companynology and the in the u.s. are doing incredible work. the faa is too restrictive in terms of the things you just mentioned. requiring a high let's license, having in the line of sight, requiring them to be doing daylight hours. of thele concept unmanned vehicle is that it is in fact unmanned. providing a technology there, and we believe it is, it can be done and that is what is most

importantly -- most important. it can be done in multiple different industries. agriculture, search-and-rescue, and delivery. much potential here. we will have to see it in other countries before we see it there. it in 2015ng at before any operations commercially. >> potential rules do not sound that unreasonable. in them you cannot fly dark. that makes sense to me. brad and i recently took a drum drone selfie. >> recreational hobbyists absolutely permissible now. the rulesou abide by of the faa. the irony is commercial use is prohibited. companies that have the most

technology and are on the cutting edge of technology, they are not able to use commercial -- but hobbyists scanned by them and use them and have fun with them. it seems you have this a little upside down, a little backwards. is regulation is better than no regulation. when you talk about drone use, could this be a good and progressive first step? >> i think it is. i think we need regulation. there is no question. no one said we don't. what we need is to get outside the current framework the faa is working with. the faa is really looking at this in terms of a pilots license, and within the line of sight. they're being highly restrictive. we need to be more creative. tree regulations actually looking at these as devices, and allow for there to be commercial

operations in the near term. companies will not allow for the use of drones that are not going to be safe. is, we can do some .n between ground here do something that saves and protects consumer privacy, protect consumers generally, but allows for us to use at scale across a number of sections of the economy is to provide efficiency. >> what could these potential rules mean for companies like facebook, google, amazon, that are experimenting buying drone companies right now? will mean is that they will have to do testing overseas and operations overseas. the new rules will not take effect until 2015. and the faa reauthorization format of 2012 f -- mandate the faa to come up with rules. we will not meet that deadline. google, companies like

and gowing, and amazon pro and a whole host of other companies, will have to go overseas or have to go to six test sites in the u.s. and they have to transplant their entire teams to the test sites. an arcane process. they should be able to test at a private property near their headquarters and they should be able to see what works and does not work so they can promote safety and efficiencies in different sections of the economy. right now, we are actually saying to the industry, go overseas, because we are not allowing any pathway for operation in the u.s.. >> how likely is it the rules will actually come to fruition? life they will be introduced. we expect them anytime now. there will be comments and reply comments. the reality long-term is that the rule will not be in place for another 16 months. i think congress and the white

house will act before the rules take effect, because the u.s. have those been a leader in technology and technology always wins. the reality is the u.s. will not succeed territories to other countries. the rule is less important than the actual seats from white house and from congress. >> all right. executive director of the coalition. thank you for joining us. we will keep our eyes on the potential drum -- the potential drum regulations. "bottom line" is coming up. matt miller is in for mark crumpton. what have you got? >> i will talk with justin. he is the ceo of downtown -- music publishing. also involved in an organization the music to bring industry, the recording industry, back to new york city. you have seen and heard, of

course, of the wu-tang clan, talking on bloomberg television all day today. they will beat -- on taking stock monday as well. we will focus in on the music industry in new york there it is definitely something you want to stick around for before you go off to your thanksgiving dinner. do they celebrate thanksgiving in san francisco? >> i believe they do. with lou skies overhead, unlike you guys in new york. >> your tech turkey, i will eat it up. >> we have got the best turkey in the world right here in san francisco, along with everything else. matt miller is coming up at the top of the hour. still ahead, why a designer teamed up with ebay to design interactive dressing rooms next. ♪

>> i'm emily chang. mobile is becoming increasingly a part of black friday shopping, waiting on line, buying things from your couch, more people are using their phones and tablets to buy stuff. here is google's industry director of retail. will be the biggest mobile influence holiday we have seen so far. to give you a piece of data, we look at people shopping there it we are seeing the traffic coming from smartphones two people shopping is 3.5 times what it was at the same time last year. >> the top searches on google shopping this year our toys, tech, and apparel. shopping in the physical store is going high-tech as well. ebay and a designer are teaming up to create smart dressing rooms to allow shoppers to have an interactive, in-store experience. joins us noway

from new york. how does it work? >> yes, the goal is to eliminate pain points from in-store shopping. these stores feature things like smart meters, so when you go up to them come you can click new sizes and new colors. you do not have to ask a store associate. also feature texting technology. you can get a text when you're fitting room is ready. also, on the spot check out so customers can buy stuff in the dressing room using the paypal app and do not have to wait on line. i asked her what inspired her to create these stores. take a listen. >> a friend has her phone in the -- in her hand all the time. it is hit -- a part of her body at this point. it was not just about a pretty they pretty product. it is to make it with her on a lambeau -- on a level she is couple with. >> the goal is to capture and on

the channel shopper. two thirds of shoppers are falling into the category. analyst experts tell me this is the future of shopping, improving the customer spirit -- experience in capturing meaningful data to drive sales. >> if they were really smart, the smears would make you look a lot better. >> they actually do. they were telling me this, they had tested the technology in san francisco. , employeesere there said, the smears do not look good, so they changed them. they actually make you look awesome, i have to say. >> they sound dangerous to me. techaside, a lot of companies are getting involved with these stores. you mentioned ebay. what can you tell us? tech companies are driving the trend. a few examples, google partnered with macy's to launch a partnership function. , which is behind rebecca's connected store, also just announced is working with

nordstrom. in addition to making the shopping experience more pleasant and more fun for clients, it is also helping retailers take that are track of their inventory. take a listen. >> every item here is architect. have 100% inventory accuracy in the store. we can do a lot of interesting things. mostndustry contexts, department stores, their accuracy inventory, maybe 67%. >> from ebay there, he just told me he thinks the retail world has been on a back foot in recent years. but he said they are catching up. seeingd -- we're also retailers open up storefronts. even though customers are getting more tech savvy and using mobile devices and computers, they're spending more money in your is than they are online. it is a big opportunity for every retailer across the board. >> all right. shelby is about to go shopping for work. the good life there in new york.

thank you for joining us. it is time for the bwest byte, where we focus on one number that tells us a whole lot. our special guest is giving us the bite today. >> is 53%. >> what is that? shoppingthe amount of done with mobile devices, phones, and tablets this thanksgiving day. >> will you be shopping on your phone? definitely. i think i do not need thanksgiving as an excuse to shop. >> me to. deals been shopping those . the sales are credible. statisticoking at a from google the other day. an increasing number of people are shopping and browsing on their phones while standing in line at a physical store. >> have you tried to shop?

>> that is very infrequent. store,ou go to a real macy's or one of these stores, you encounter salespeople who are not very helpful, and sometimes, they are not even polite. why would you want to do with someone like that? a smartphone does not yell back at you hear it i would just take the smartphone for that. earlier thatots the act in twitter is looking to potentially buy. >> they should have twitter offers embedded in it. sense for twitter and otherwise, it makes no sense. >> giving it to us straight as always. time to go shopping need turkey now. happy thanksgiving to you and to all of you, thank you all for watching. have a wonderful holiday. we will see you in a few days from now. ♪

bloomberg world headquarters in midtown, ,anhattan, this is "autumn line the intersection of business and economics with the mainstream respective. to those of you joining us from around the world and our viewers in the united states, welcome, we have full coverage of the stories making headlines today. peter cook has details on the epa proposal for tougher standards on smog. shannon looks at how some medications are being banned from health plans in a drug card