>> live from pier three in san francisco, this is "bloomberg west." i am emily chang. november was a huge month for the u.s. labor market. the country added 321,000 jobs, the biggest monthly gain in nearly three years. matthew ferguson is the ceo of career builder -- i think overall, it's a strong report and i don't think is just one month. it may be higher than where we are running. i think it shows the labor market continues to improve and that will continue into 2015. >> the unemployment rate held steady at 5.8% and wages saw a

slight increase. president obama has officially nominated ashton carter to be the next secretary of defense. his task is to make the military more efficient. >> going forward, our armed necessarily going to need to be leaner. as commander-in-chief, i will make sure we have a military that is second to none and that continues to be the greatest critic -- the greatest fighting force in the fish -- history of the world. >> he was the number two civilian at the pentagon and has expense and budgeting and buying weapons systems. cisco systems is suing a rivalrista networks for patent infringement. networking company infringed on 14 of its patents and copied other intellectual property. a executivesest is are former cisco employees and they said they took short cuts. nbc's live production of the musical "peter pan" was not a

highflying hit. the show starring alison williams and christopher walken drew 9.1 when -- 9.1 million viewers which is happy audience for last july production of "the sound of music." it started with movies being movies online and then it was salary information and now it's getting even worse for sony is more data comes out from the recent hacking into sony's entertainment division. the latest info and close the social security numbers of some 47,000 employees including celebrities like judd apatow and sylvester stallone. also they have passwords and home addresses. a group called guardians for peace is claiming responsibility. are they really behind it? is north korea playing a role after it exposed outrage over the sony comedy," the interview" for mocking kim jong un.

how much time and effort did it take to plan a hack like this? on the one hand, you're looking at years and decades of information but on the other hand, some of this information was not even protected by a password. >> that's absolutely right. some of the documents date back to 1955. this is former employee records and current employee records and lots of information. took, as how long this this is not something that just happened in a day. it to planning and effort and is definitely an advance campaign to infiltrate >> and exfiltrate the data. >>we are learning more about the nature of the attacks and some parallels to attacks on south korea. do you have a better idea of who you think is behind this? is it north korea question mark >> ande are many indicators

media speculation regarding the north korean connection. so far, the only thing we have is that there is a motive and that there was some korean language and some of the code. i would not say that that is definitive proof that north korea was involved in particular given the scope of the attack. usually when you look at cyber espionage, it's more about being stealthy. this is anything but. this was actually looking to cause damage and embarrassment to sony. >> what was the time it took to create this attack -- tell us about who did it and how to protect global businesses in the future? it's too early right now and sony is not releasing information from what their internal investigators are finding as to who did it. that's unusual in the situation. the circumstantial evidence is pointed to north korea with

these cyber attacks, it takes a lot of in-depth effort to uncover any sort of real attribution. thing, this kind of honestly, this is a very difficult thing to protecting danced if it is a nation state. that's just the current state of internet security. >> what makes that's a much harder than russian hackers backed by millions of dollars? when you have criminal hackers come a couple of people are trying to launch attacks into operational attacks. when you have a nationstate come you have hundreds of people doing research and of element and creating malware for advanced campaigns. those are things that western countries and russia and china can do and possibly even north korea versus a criminal enterprise or some hacking group like anonymous. they are not that advanced organized. >> we are getting new

information about another hack attack on the women's clothing chain. it sounds like customer information was stolen and potentially credit card numbers stolen. what is going on here? why can we stop this from happening? >> this time last year, we were dealing with the target breach. over the course of the entire year, we have seen a number of them. unfortunately, we will still see even more of those. a lot of folks in the security community were simply waiting for when the next retail breach would be announced particularly around the holidays. target fora hot hackers. there is a lot of money being made in the underground market and a lot of demand for stolen credit cards. right now, u.s. retailers are easy pickings. >> db? is nothing sacred? >> i used to shop at bebe. >> my concern is that it's hard

to figure out when this is a big deal and when it's not. the sony thing seemed like an outlier but the steady drum roll of bebe and target them all these people, how are we to make sense of which ones are really important and more dangerous than the run-of-the-mill hacking of a big retailer? >> consumers are becoming desensitized to these breaches. it's just standard practice now. have goty friends multiple notices from retailers that they have been breached. how do you know when it is really bad or kind of that? it's hard to say because you have to rely on the enterprise to diebold said information to you. it is just a credit card number or all your personal information has been taken, maybe a mortgage company might have more information the just a retailer. based on what kind of data they have on you. >> one more question --

the online holiday shopping come is there anything specific we can do differently when i go through a transaction they ask if they want to save my credit card transaction, i always say no, but is there anything else i can do? do is best thing to vigilant with credit card statements. really t -- really monitor any transactions even a small one. you want to investigate that because that can be a sign of larger charges that will be made by the credible enterprise. pay attention to that and be careful of where you use your card in which retailers you use it on. sites like amazon are pretty trustworthy and they will have proper security in place. some of the smaller mom-and-pop shops do not necessarily have the security controls in place to protect your data. >> with all these hack attacks, amazon must be doing something right. onthe money they spend

infrastructure at every level of their business is amazing. on people orend it anything else but on infrastructure, certainly. >> it looks like they've got it figured out for now. thank you both for being with us. he was the sole winner of nearly 30,000 bitcoins in a government auction last summer and now he is bidding again on the virtual currency. the founding partner tim draper is here next on "bloomberg west." ♪

emily chang this is "bloomberg west." the u.s. government has completed an auction of 50,000 bitcoins, the second auction seized from the illicit marketplace with was shut down last year. the auction saw 11 registered bidders placed 27 bits, down from 45 bidders in the june auction. and that auction, venture

capitalist tim draper was the sole winner of all 30,000 bitcoins. did he win again? he joins us now. how did you make at this time? >> i don't know yet. i think the news is not hit us yet. it's interesting, we had a great and ience the first time used those bitcoins withmirror to create a whole new trading system in bitcoin. now, you can in effect trade anything -- and now i need more promisedbecause i have 300 bitcoins for every entrepreneur that is in the next boost contingent. is the accelerated does all the bitcoin startups. i need to go out and get more

bitcoins. >> the price is down 38% since you bought those 30,000 bitcoins in june. i know this is a long-term game. how concerned are you about this? doesn't the price volatility prevent wider spread adoption and trust in his currency? i did not know exactly where the bottom was, clearly. apoint at which there is enough of an ecosystem that bitcoin is going to be spread everywhere. point, i'm guessing it's two or three years from now, bitcoin will have to be worth a lot more. benefit me andll mirror but it will also benefit all the entrepreneurs that, on to boost because of the investing in bitcoin.

i attended an event with a bunch of bitcoin executives and towards the end of the evening, everyone was asked to guess the bitcoin price. almost all of these people picked zero. the technology is more interesting than the coin itself. do you think bitcoin is the cyber currency of the future and the why of all of them, is its bitcoin? >> when we got the internet http protocol was the standard protocol. when you have a standard protocol, people just start adding on to it. they start building businesses around it and start focusing on that protocol. bitcoin is the protocol for

currency and store value. about whatly think will ultimately happen, yes, black chain technology is fabulous. it is so exciting. >> but it is not limited to bitcoin. >> right, but people will standardize around bitcoin. that is starting to happen more and more. there are plenty of these little currencies and they are getting marginalized. everybody is focusing all their businesses on bitcoin. we have seen that in the start up a realm. >> when you talk to someone like peter thiel, cofounder of paypal, he tried to do this 15 years ago and it did not work out. he is very skeptical of crypto currency in general and thinks they are too cumbersome and thinks bitcoin a particular, you are still seeing it used mostly for illegal things. it is not think this will work out.

what do you have to say to that argument? >> peter is a brilliant man. and ultimately cyber currency. he was just early. not come up with a black chain technology. this lack chain technology really is extraordinary. it's great for bitcoin. my bitcoin is safer than my money and morgan stanley and it's certainly safer than my credit card at target or something. -- it's safer% except for the 38% you lost. >> i have not lost anything until i sell. >> that's right. >> is there a point at which you punt? you plan to distribute some of that but is there a point where you say this is not the right one or do you have a time horizon?

no, companies like atlas will make it so that you can buy things with bitcoin on a credit card. doing a variety of different things that are building this whole days of the bitcoin economy. it's continuing. i kind of like the skepticism because it means that we are in that work phase. phase tosort of a hype every industry and any work phase and then there's this enormous boom that everybody thinks that this is the way it was all along. we are in that work phase. i am tremendously excited about some of the startups i have seen coming out of boost in other places. and in other countries. bitcoin is being better recep did -- received and some of

these other countries that are more accepting of the flexibility of bitcoin. >> tim draper, thank you for being with us. my pleasure. i will be onunoodle at 9:00 and will interview a bunch of entrepreneurs so go to unoodle.com. >> thanks for reminding us, great to have you. this little white spot you see floating in the pacific ocean is america's next spacecraft according to nasa. we will bring you details on orion's first spaceflight next. ♪

this is "bloomberg west." nasa calls it america's bridge into the future -- the space ship oroion has completed a successful test flight to splashdown and the pacific ocean. the craft lifted from cape canaveral and traveled 36 hundred miles into deep space, further than any spacecraft designed for humans has gone since the last apollo moon mission 42 years ago. nasa hopes to use orion to someday bring humans to mars. one person who said he would like to die on mars is elon musk. he and his companies are not just threatening to face auto industries. his planned gig a factory in the nevada desert could have a big

impact. on electric companies the new factory which will be the largest battery factory the world plans to produce battery packs that can also store solar power. should utilities be worried? cory johnson is back with me in the story -- in the studio. elon musk is scaring utilities. tell us about this other bet. this is interesting because of the big betsy has made on this giga factory. he wants to turn this thing into a giant factory to create because ofeaper cars somewhat cheaper batteries based on old battery technology. one of the big bets that he is making is that no one else will invent a better battery for the next 20 years and that all of the efforts of the $2 billion spent in government research to find a better battery which have failed will continue to fail. >> battery technology has advanced slowly.

over the last century, it sounds like a reasonable bet. >> it's interesting because there are many problems in physics depending on the way they degrade slowly. has not been a lot of innovation since the lithium-ion battery. that theybig that is would have tesla get to half a million vehicles per year. the notion that they could grow their business 22 times or whatever it was in 2013 is a fairly amazing that. it might even seem ridiculous. he would not expect anything less from elon musk. >> they said they need to find another use for batteries. that's the acknowledgment that the tesla vehicles will not enough to support this factory. >> when is this factory going to open? >> it'll take a few years so it is a bet on the future. ironically, it's a that against

technological innovation. >> cory johnson, thank you so much. still i had, uber is now worth more than 10 luck, american airlines and delta. they have a $40 billion valuation and we will talk about that next. >> bloomberg television's "on the markets." had a rally today on the heels of that better than estimated jobs report for last month. to dow was getting closer 18000 and looks like we are not quite making it there at the moment. we are seeing a rally across the board. individual movers, shares of american eagle outfitters are falling by the most in four years. they reported third-quarter earnings in line with estimates but it's outlook for the holiday quarter fell short. shares of tyson foods are trading higher by more than 2% after goldman sachs added the company to its conviction by

list and they say the poultry producers that he was underappreciated especially after its acquisition of foster brands. shares are up almost 25% this year. back.berg west" will be ♪

>> you are watching "bloomberg west." uberhat bad press about executives targeting journalists is apparently not scaring off investors. has raisedailing app $1.2 billion in its latest round of funding and the new investment values uber at $40 billion, more than double the valuation it had in june. isning me from san diego paul kedrosky. the list of companies that uber

is valued more than is incredibly long including tesla and delta and american airlines. is it worth it? guess we won't find out until it goes public. this is clearly a pre-ipo financing round. there are large institutional investors they want to get out of this a higher value. when you go to these pre-ipo financing rounds and detach from any sort of orthodox valuation, it's what the public market will pay. for a company with allegedly in access of $2 billion in revenue and growing remarkably fast still, and it's claiming it can increase their global addressable market for taxi services. been that the total available market for taxi service is somewhat like 100 billion dollars in here is a market cap approaching that so the argument has to be that the total addressable market is larger there for the valuation

is warranted. >> some of the reporting suggests that some of the fundraising is debt that converts into shares upon an ipo so it really is pretty ipo -- it is pre-ipo in that way. how might one value this? i understand some idiot will pay more which is the greater fool theory. for those who will do math and the analyst to make this decision, they've got to show something to their bosses. what you think they are saying? totalhink us the addressable market argument and i think it's compelling. it's easy to say is bigger than delta and united and almost the same size as fedex but that is beside the valuation. what is the total addressable market for these kinds of services? the numbers vary but 7100 million dollars is tossed around.

-- 70-100,000,000 dollars is tossed around. the problem with that number is that you say ask anyone you know. do they use uber more than taxi services? most people who use it will say yeah, i use it five times as much as i would use a taxi. gurley came on our show and told me the number of cars on the road in san francisco has increased significantly since uber came into the market so it's not a replacement business. start tanking you in those terms, you say it's not -- 100 million dollars market, maybe it's $500 million market. if that's the expansion we are seeing from a disruptor in the market. there was a great line that said extrapolating the future market size based on these at

disruptive companies is like extrapolating the size of the auto industry based on a number of horses you had a 1910. it's true. it's the right way to think about how you really decide the market based on a disruptor. if the market is $400 billion and use it with a $40 billion market cap, you are looking for 25% market share. you say it does not seem an insane valuation anymore but it does not make it reasonable but it's a way to possibly come up with a valuation based on expanding markets. >> this is a company that is been on the receiving end of some incredibly bad publicity some of which they created about targeting journalists and using customer data improperly. i spoke off the record with an observer in silicon valley who expressed concern, will silicon regret creating the giant

that is uber? what if they turn around and jack up prices and this comes back to bite us all? what do you make of that. most hard among the knuckles competitor in any technology company i have ever seen going back to the early days of microsoft. people forget what a ferocious competitor they were. it's not just we win, you lose, iss we win, you dieduber carved out of that same mold. it's not enough for them to win. they have to dominate their market so i think it's a legitimate concern. it's why they get the valuation they do. they will settle for nothing other than total domination of the market that they legitimately created. >> wait until north korea has them. i wonder if there is a selection bias that many wall street guys think that everyone in the world wants to ride around in a black

car but that is the view of wall street. businessack car certainly seems to -- it's almost being cannibalized by uber-x, at least of you talk to black car drivers. i think that's a complaint we have heard from some time is the availability. is this the stuff i would use so maybe it's a good investment. see this incredible expansion and the size of the shares in the hired car marketplace. you pointed to san francisco and you can talk to numbers worldwide. i think it is simplistic to just say this is a disk the money set is saying i want more toys for me to use. uber is busy disrupting itself with uber-x. they say the black car business will not be the biggest part of their market but i think that's a bit simplistic. coming up, we will talk about

apple. e-mails from steve jobs are in the spotlight at the apple ipod antitrust trial and we will tell withhy he was mighty upset a music company, next. ♪

they hadk the control in making changes to the itunes operating system would help the digital rights management technology to not just protect their own content but also act in ways that were anti-competitive and actively, in a sense, a backdoor way of taking other people's music off the platform. i think i just saw the headline that it looks like they have lost both of their plaintiffs in the case. it's interesting that realnetworks is not participating in the case. the apple messaging has always been around being for the

consumer and want our customer expressed to be bess and take care of our consumer and we love our customers unless they spend money anywhere else. then they should not have that music. >> yeah, there was a striking quote about that in the trial which was this question of what should happen if you have music or content from other providers on an ipod. you would get this kind of cryptic error that you needed to reset your device. when you reset the device from the music from competing providers, and when asked when they might have done it that way, the apple executive said consumers did not need that information. don't need to worry our little heads about things we purchase elsewhere. >> what is at stake here? a tripke we are taking down memory lane to a decade ago when the ipod was all the rage. how will this case impact the future of apple in streaming music?

and the world in which they recently bought beats? >> it's even broader than that. there was a kind of seismic announcement this week from a publishing group on this idea they would start in competition with some of the other research providers. and they didn't. it still buried inside. we are seeing this battle really never goes away. it's a continuous struggle between what i bought and what i own. -- if i bought it, do i own it? do i have to listen to apple? the battle is being fought to this day and it does not go away. >> we will continue to monitor this apple antitrust trial, thank you for joining us. john chen has worked and enterprise technology for 30 years rising to the rank to become the ceo. now he is charged with leading blackberry and saving it from

possible extinction. his path has been anything but easy and it all began in a tiny apartment in hong kong. on the latest edition of studio 1.0 i asked him about his upbringing. >> i actually came from a relatively poor beginning. my parents, although my father is quite educated, they were ,efugees from china postwar kind of where the communists were taking over before the curtain got drawn. they escaped from shanghai to hong kong. >> can you lived in a one-bedroom apartment? >> yeah, for a long time. we did not even have a dining table. they put two suitcases on top of each other and put a cloth over it. that was our dining table. >> what kind of kid were you?

what to do want to be when you grew up? >> i never thought about what i wanted to be. everybody at the time, because of the war and because of what happened historically to china, everybody wanted their kids to be scientists. that is the hong kong way. everybody should become an engineer or mathematician so doctors and professionals so you could have a good life. i started off doing a lot of math and i liked math so i ended up studying engineering and don't reasonably well. >> you went on to boarding school in massachusetts. how did that happen? thinking ofme i was my education, the higher education, my family is already in a middle income. they asked what i would study and i said probably engineering. not greathong kong is

in engineering. have you thought about going overseas? that piqued my interest rate when i was in hong kong, we might've heard about a computer but we had never seen one. we never touched one. >>? you never saw a computer >> until i came here. that was the first time i learned to code. my last year of high school and my first year in the united states. you could enhance your chances of getting ahead a lot. i went to this prep school. >> that must've been quite a transition, hong kong to massachusetts/ >> i went from no snow to lots of snow. it was quite a transition. it was great. it was the best thing that ever happened to me. >> do not miss more by interview with blackberry ceo and executive chairman john chen tonight at 5:00 p.m. eastern. is coming up at the top of the order and mark

condon has a preview. >> the gasp you heard at 8:30 a.m. this morning was from stunned economists and analysts following the release of the november employment report. the biggest payroll gain in the united states in three years caught everyone's i -- by surprise. what does the strong jobs number mean for the overall u.s. economy and how will the federal reserve officials disseminate the data when they meet in less than two weeks? aue chief economist at messere financial will join me. >> nice to get good news on a friday. thanks so much. if you need a painter or a plumber or someone to fix that: your wall, smartphones make it easier to connect local services and we will talk to one startup making a huge dent in home improvement one zip code at a time. ♪

>> finding a home improvement contractor you trust is not an easy thing but now former amazon executives are trying to solve that problem at a startup called pro.com. the company estimates the cost of a home improvement project and then it puts you in contact with local providers. cory johnson spoke with the ceo matt williams and started by asking about the growth of the company. been a business about 1.5 years and raised a round of million from$3.5

all sorts of investors. within raised a $14 million round which we just close the past few months which was led madrona. >> with money and the bank, what are you trying to do? >> we want to change how customers interact with pros and be able to find a price for your home project and find a pro and get the job done as seamlessly as possible. hours and amount of clicks it takes to be able to interact with a pro and get a pro directly to your home as quickly as possible. >> when i visited you in seattle two months ago, the technology behind this is interesting. this is not just matching a directory, you have innovative technology. a team that came from an amazon background in terms of early history as a technology group. we have spent a lot of time looking at how we can change the

way in which customers price home project. many customers will not even pick up the phone to find a pro to get a home project done because it takes too much time and too much effort and they are not sure they will get the right price. we build technology to solve that problem and go find all the home projects that happen nationwide and understand what the cost of a home project might be if you are installing a ceiling fan are putting on an addition to your house. websitego to the web -- and present any home project. an algorithm takes any home project at the most simplest level to the most complex and you can place it instantly. >> when you first started rolling out this business, you are going from city to city and focusing one place at a time. i would imagine like an airline does with a new pilot money, you look at adding new cities. these are such local businesses. launchedre, since we

the website, we have a nationwide presence we don't have the ability -- so we have the ability to present home project in the u.s. and connect you to a pro. if we have established the pro network in that city, you can literally schedule a time for the pro to come to your house. if we have not established that network, we can find the best pro to match your job. we have a nationwide appeal and we tied a directed to finding a pro in any city. >> what is a characteristic of an idea city for you to open up in? if you look at the map of where our customers fall, it's across the board but it's definitely heavier on the coasts. when we look at which cities we want to go deeper into the supply of finding goes for any type of job, we probably look at 25 different types of trades from electricians to handymen, to general contractors and plumbers. we will purposely target the cities that have the most demand today.

we already have demand across the country. >> how can you tell demand? >> because people price at home projects every day on our website. using our old oil service come you can price a home project any city in the country. we take that demand and we focus on finding the pros for those customers and ultimately build out the network of prose. >> i would think there are certain demographic things are infrastructure things that indicate a city where a lot of workers are or economic things like areas rich with cash. if you go to buffalo, new york, there is not a lot of home projects under snow. >> if you're trying to predict a market to go into, you would probably do that analysis. we have the benefit of having customers that need jobs done in those cities. we just follow where the customers have jobs in those cities and then build a deeper base of pros around that city. >> follow the money. >> it works very well. >> are there lessons learned in that in cities that look like

that but did not turn out to be as good as you thought? >> we learned it is seasonal what happens in a given city. over the summer, there were a lot of tech project. it changes and -- there were a lot of deck projects. you might have outdoor landscaping project. it depends and that's the more interesting thing. every single city has a different seasonal pattern of the jobs being done. >> pro.com ceo matthew williams. i don't know if it is just san francisco, but is remarkably hard to find a good handyman here. if you don't have a huge job, no one wants to do it. >> it's an interesting is this an interesting it's done in an amazon way. they are so cheap. businessirly amazing that they built there. to usee of those things technology to solve this problem people have. >> thank you all for watching

this edition of "bloomberg west, happy friday and have a wonderful weekend. ♪ . .

>> from bloomberg world headquarters in new york, i am mark crumpton. this is "bottom line," the intersection of business and economics with a main street perspective. >> from bloomberg world headquarters in new york, i am mark crumpton. this is "bottom line," the intersection of business and economics with a main street perspective. to our viewers here in the united states and those joining us from around the world, welcome. why nbc'srns tells us confirms life events drive tv ratings. juliehy