>> live, from pier three in san francisco, welcome to "bloomberg west," for we focus on the future of business. here to check on your bloomberg top headlines, french police are hunting for the gunman who opened up fire inside of a french satirical magazine. how people have been killed, 10 journalists and two policemen. here is the french president francois hollande. >> the people of france are in shock. there is no doubt that this is a terrorist attack on a newspaper that had been threatened several

times and was justifiably under protection. >> president obama is promising france any help that they need for the investigation. >> these were cowardly and evil attacks today. reinforcing once again why it is so important for us. >> no immediate claim of responsibility, the gunman reportedly sang islamic sayings during the shooting. every religion has been repeatedly threatened for -- the paper had been repeatedly threatened ford's drawings of the prophet, mohammed. angela merkel and of the german parliament were both knocked off-line by a pro-russian hacking group coming just as the prime minister of the ukraine visits germany today.

the u.s. director of national intelligence, james clapper, calls a hacking of sony pictures the most serious cyber attack ever launched against america. the reconnaissance bureau supervised the hacking, and they may not be done, they could be finding similar strikes. he also said they land the attack so quickly in the hopes of deterring kim jong-un. monster suing htc and beats electronics. they helped to introduce the first set of headphones in 2008 claiming that they fraudulently -- fraudulently acquired the headphone maker through a sham transaction. beats is seeking $3 billion. now, to the latest in the future of pay-tv, a hot topic this year at the consumer electronics show. dish ticked off the announcement

that its sling bundle would be available to show things like espn online to its customers and charter communications is teaming up with cisco to offer cloud-based cable. it will be able to update by the cloud regardless of the set-top box being used by customers. so, does this start to show us with the future of pay-tv will be? joining us from las vegas the vice president of the service provider business at cisco. this is in interesting business that shows cisco doubling down in the set-top business. or is it just taking learning from what works in set top charter companies? >> thank you for the opportunity to be here. what we have done with charter is exciting and it is accommodation of everything we have talked about. willy more towards a cloud-based livery model. charter is offering their customers a new experience

leveraging a lot of the technology developments in the solution and offering the ability to move towards new experiences. also from what they can deliver inside the home that they will deploy. >> let me unpack that. you say leveraging the technology. what kind of technology is required to make this work that was not available five years ago? >> sure, sure. the first is the ip-based network, the foundation for what needs to be done. the second is that you have got to be able to render the video from the cloud. instead of doing the video transformation inside the home you do it from the cloud. it means that charter can now deliver the experience using any device that they have, the 10-year-old devices that have been put inside customers homes or the last few years, or the new ones. clearly the newer devices will be more capable with multiple

tuners, if you have 55 -- five televisions in the home with five programs you want to record, you could do that with that device. >> cloud rendering is interesting to me. the reason that they render on the box is because the computing power required to turn the bits into video is so massive and you can move more along the pipes when it is just digits and not rendered video. what has changed technologically to make sense of rendering on the cloud? >> a lot of that video processing capability, as well as some of the technology around taking video streams and putting them into ip and bringing them into clients -- you don't need as much computing power inside the home. you actually do more processing inside the cloud. the next thing is software downloadable security solutions that we can deliver to the cpl do but -- cpu device through the gateway in the cloud.

also, digital rights management as well, all very important for charter and the rest of the industry. >> let talk about the rights issues those are such interesting and archaic things. the way that content providers protect their content from potential users and strike these deals that do things like keep people from being able to watch espn online. when cisco systems approaches this business how do you try to get around those digital rights management issues? >> from a technology standpoint and a service standpoint operators like charter want to be able to take their content and services and be able to offer them on any screen. now clearly there is rights management that they have to work through with content players and having the right solution for that makes it available impossible for them to continue with these capabilities

. an important issue for the industry that requires a solution that we are working with charter on. you are absolutely right in terms of what you are saying. but this is exactly what this is going after. >> i always thought a fascinating part of the cisco business was seeking the technologies that were going to suck up and with. this is a part of that sort of showing, what can be done. people are just doing more online more networking, more boxes being slung. >> if you go back a few years we predict that leo is going to be very predominant across the industry. video is becoming the new voice in terms of communication and collaboration inside the consumer world. it is gaining a lot more capability even as entertainment video gets delivered. not just from professionally organize content, but personalized content generated

to personal handheld devices or mobile devices. so, all of the content team generated with high-quality four k or one k capable of being delivered to any user, that is where the future is. >> i think you are right. i think this internet is going to be big. thank you very much. all right, up next we will go to paris for the latest on the massive manhunt for the gunman responsible of opening fire in what has become the deadliest attack in france since world war ii. ♪

>> i am cory johnson, you are watching "bloomberg west." a terrorist attack at charlie have dough left 12 -- at "charlie hebdo" left 12 dead.

police have boosted security across the city. for now we are joined by caroline connan, the bloomberg television person there in paris. what is going on on the ground right there? >> i am still at the headquarters in the eastern part of paris not much is going on at the moment because many people have moved to the republic square for this massive march in remembrance of the victims. according to the organizers there are 10,000 people currently on the square, 5000 according to the police. some of them are bringing candles and flowers in support of the victims. many are wearing stickers that say that i am charlie which has become the hashtag on twitter.

if you search for that you will see that 4000 tweets in support in the last 24 hours following the attack. >> i have seen it all over in the u.s. as well as a graphic. is there a sense of the manhunt going on? the notion that these guys are out there somewhere, still near paris? what is happening on a door to door basis? >> the manhunt is still going on. they have not been found so far but there has been a big effort to find them and secure also different places in france. they are looking for the terrorist attackers this morning . of course, you also have more security near sensitive places such as churches and cultural

places, obviously airports and train stations. it is the highest security alert in france in the past few decades. many metro stations here have been closed. you can still see a heavy presence of the police in these bloody terror attacks. >> let me ask you further i read about the movement of the far right in france and i wonder if they are also energized by this in their sort of anti-immigrant stance that they have taken. >> of course, no one has claimed responsibility for the attacks yet, but of course we can probably link it to the international anger at the islamic state and what we might call the islamization of society. you have very large parts of french society showing this anger to those who embody it

here in france. of course we had some reaction from the national leader as well. she condemned the attack and said that this list of liberate or teach again extremist islamism. according to reuters, an islamic state fighter has praised the attack, saying it was because of the attacks against islam. >> thank you so much for joining us. joining us on the ground, a managing director at the counter were terror -- counterterrorism trip -- counterterrorism training firm. this of course reminds us so much of the attack in london in

2005, but it is a very different world in terms of policing right now. what do you see as the big difference? >> don't think there is a massive difference. the response to the 2005 attack in london and the response to this attack will be very much the same. police figures will want to identify these people as quickly as possible and they will use a range of efforts to do that. cctv will be particularly important. what we need to do is track these people down, find out who they are, and more importantly where they are getting support from. you have carter in yemen. that is seems to be happening. >> i feel like in 2005 there was the smartphone, the cameras, the videos that everyone carries in their pocket, they were not so prevalent in 2005, but they are

today. we have seen videos on youtube. we have seen the gunman. but is that going to help? these guys were masked and appeared to have it clearly plotted. >> the more important those cameras are, it will help us attract how they came to the scene and got away. it is just one of a number of things that the people there will be doing. i was just thinking up something about the repercussions to your muslim community. will the right wing take it out? >> i know that london is rife with cameras everywhere. this paris similarly saturated? like i should imagine so. i have little first-hand experience but europe would have learned from what london

does and the u.k. does. the fact that we have facial recognition software now with readers that contract vehicles much more easily than in the past that is how we track the london bombers to the bomb factory. the technical lengths that we have now have moved on and we hope that it will help the police in their investigation. >> what kind of thing will the police be doing right now? we know that the gunman ditched their car and jumped into another. what will they be doing with that information on the ground right now? >> the senior investigating officer has a number of key strategies. the first one is unidentified the suspects are. there will be a lot of work trying to track them back to an address. is that address the bomb factory?

we need to neutralize it as soon as possible. we will also be looking at gathering evidence from witnesses. as you said it, the video on their phones and that will be seized. there will be a range of other things that they will do to try to protect the country. they will close the borders now. and because europe has a european border separate from europe, they will need to work with their european allies. >> sounds like a lot of one operation right now. milton, thank you so much. we will be right back. ♪

>> a startup that promises to

deliver groceries to your favorite store fresh -- from your favorite story about one hour. personal shoppers they partner with companies like whole foods and costs go but the latest round of funding is interesting because they have some big competition and we will talk about that now with one of the chief investors. great to see you. this is interesting. you have got these really important partners as they are enabling these deliveries. >> the easy an analogy with a lot of investors is to talk about the casinos of the early 1980's. they realize that people were coming up -- coming in and out and did not know where they were. now that card is able to give the grocery store data back data that other stores can capture. >> there is a popular company and the johnson household. i also did deliver yesterday.

i did the whole thing, i put it on the green t-shirt. it is interesting that these big companies like whole foods and cosco are not trying to do this themselves. why not? >> this is cliché, but it is hard for large company to get out and do it whether it are bringing together a marketplace of personal shoppers who want to work and maybe have different jobs as well with more flexible hours, paired with different types of baruch -- grocery stores. >> they don't have the inventory. they don't have the warehouses. they have a kind of uber model with regular people. every company seems to want to say they are the uber of this. people use their smartphone, their own car. >> absolutely. they can log and now when i want to.

what they are really getting at is this idea of being able to deliver something that somebody has captured that data increase, the customer relationship. the other key strategic advantage is that they are already profitable, but you could spin out more viewers faster. >> they are already profitable? that's interesting. is that what you want, this early in a company? >> i don't think that it hurts. >> interesting. look at all the cities they are in already. boston, d c, denver, los angeles . >> i am a very early, smalltime investor, this thing has passed me, but i have been friends with the founders for years and every time they said something about their mission i thought no way and they prove me wrong every time. they seem to think they know a secret about building the big -- the next big independent company.

>> they are facing some serious competition, though, amazon is doing grocery delivery. yesterday when i was doing this delivery we saw a google delivery guy going by. there is a lot of that stuff going by -- going on with these other companies. >> it is tough. people want to deliver things within a 48 hour window. everyone is used to that. it is about delivering something soon. it starts with groceries and getting something to you in an hour in more cities. if you look at the footprint now , it is not the same as instant cart. >> i was also impressed with the quality of produce. figuring out to touch the bottom of the pair to see if it's right, those little things can make a big difference. >> they have to train these people before they become delivery folks.

>> thank you very much. we appreciate it. we will be back right after this. ♪

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i'm thinking roast beef. want to get lunch? get the fastest wifi hotspots and more coverage on the go than any other provider. xfinity, the future of awesome. >> paris is on high alert after 12 people were shot and killed in the attack on french newspaper, "charlie hebdo." david cameron and angela merkel waited on the attacks today in london. brian joins a slight -- right now from 10 downing street. talk to me about the european reaction to what happened this morning. >> well, you know the day and the trip for the german chancellor began for an entirely different reason, she was here on official business, as the chairwoman of the g7 germany is

going to host the g7 summit this year in the bavarian alps in june. then this happened. she was at the british museum with the british prime minister. they both immediately condemned the attacks, called the barbaric and not just an attack against the french people but obviously because this was a magazine against the freedom of the press, they together called the french [no audio] >> we have lost our correspondent there and london. we will get them back if we can do that. turning back san francisco is the sister city of paris and also going to a lot of change. we have former mayor, willie brown, with us right now to talk about the big changes going on in the city. first, you have seen the news from paris, what is your reaction? >> it is as if it happened to

san francisco. we are a sister city. the mayor of paris celebrated my 75th birthday with a black-tie party at city hall in paris. there is an interlocked relationship. some of our educational systems many of our schools -- one of the languages spoken at our schools, one of the best schools is a french american school here in san francisco. when that city is hit, it hurts us as well. >> i know that you have not been the mayor for a while, but the police reaction, what will the city do? today is a point of reference i was reading about what new york did about the london bombings. it was quite a while ago, almost nine years ago yet new york city sent detectives within one hour to london to start to learn about what happened. >> well, san francisco, of course has been responsive to

emergencies as a result of view earthquakes. so, we have a set of protocols a series of things that we do. we have a facility, the 911 center in which anyone with responsibility gathers and everyone knows there defined roles. we have communications systems that interlocked with the general systems for broadcast purposes. we pay close attention to the school district and, of course what the coast guard and water access the people would have, we are required to do all of that. all of those things go into motion almost immediately and it becomes seamless. >> so, this city will decide that we should be more on alert because of the attack in paris and who knows what is next? >> no question. i am sure that they are immediately activating their

entire intelligence unit. the officers make sure that the city is under protection. i am sure that he interacted with homeland security in america for that purpose. >> let's turn to some of the other interesting changes going on in san francisco related to the technology boom that the city is seeing, of whom that we have not seen since we partied like it was 1999. [laughter] recent unemployment numbers show more workers and business in san francisco since 1999. is that worrisome? is that just a great thing? having gone through the tech busts of the past, what do we learn from that? >> it is what every mayor in america would love to have, a problem that you want, unemployment under 5%. you want wanted signs all over your town. coupled with that, however is the need to make sure that affordability is not totally and

completely ignored. you need to make sure that the gap between those who are earning and those who need it are, in fact, coming closer together. so, the city and county of san francisco with mayor lee saying jobs in his first term he is now talking affordability in his second term. believe me, that is a far more lazarus von scan of thing to do than being worried about creating jobs. >> so you took this city through the.com boom and the.com bust. what did you know about the statistic when he left office, 10 years ago tomorrow? >> there was no question that the day that i left it was clear the concept of all of his newness, all of this new economy where almost no products were produced was simply the foundation of what we are now

benefiting from. we have all kinds of things going on. throughout the world there is a working relationship and there is a product being produced. that did not happen in the first moon. only the creativity and the brainpower were there. people did not move from silicon valley and relocate. >> that is what characterizes it interestingly to me, this is very much an urban phenomenon. not suburban. >> correct. therefore the people that want to live in san francisco and work in san francisco and spend their money in san francisco suddenly you're not in the boom and bust cycle as we were in the old days. >> here we still had a football came setting up in the suburbs. >> i think that football team is now having second thoughts. have you noticed that their fortunes were not nearly as good

as they were at candlestick? that's right. [laughter] >> does this feel different to you? let's dramatically. it feels different because those who are the ultimate beneficiaries are actually the ones investing. they are buying. they are spending. they have kids in the schools. they are doing the kinds of things that you need to do on the give back with tipping points and other organizations of that nature. it is dramatically different. >> willie brown, 10th anniversary of your victorious speech at city hall, we appreciate it. >> thank you. like how can the computers help us to catch these terrorists? ♪

>> i am cory johnson. this is "bloomberg west." the manhunt is underway for the people who opened fire on a french magazine, killing 12. neil james, from richmond state university, whose research includes pattern detection and biometric analysis, he identified one of the bombing suspects from law enforcement video. look hard, these guys were wearing masks clearly making some plans. >> that's right. i had been watching the footage for the past hour and i don't see much clue in terms of facial recognition. or even voice recognition. they hardly spoke even a few sentences. and the voice could be muffled because of facial covering.

i think it is difficult to use. the suspect must be in some of the government data wages for passport. they are presenting what of the government databases. >> where do they start in terms of pattern recognition? what do they look for? there is an amazing story on the terminal right now that says they went in the wrong door and asked workers where the magazine was, killed one of the workers and moved on to perform their horrible task. are those the kinds of things that fall into this pattern recognition? >> i think that what would be most useful in this case is the internet or cell phone traffic to find out who is communicating to who. there might also be some

forensic evidence. for example, if they left a piece of clothing in the car. or even the bullet casings. perhaps this casings could be linked to previous crimes. but i think that the most promising information is either from the internet traffic mobile phone communications, and possibly human intelligence. i think that the video footage just does not contain any information. >> human intelligence is the most our full tool out there but this is bloomberg west, so i am thinking about technology. what technologies are different now from say, the london bombings of 2005? >> it really depends on what is available. there has been an advance in facial recognition over the past

10 years but if the subject is not cooperative, as in this case , with the subject wearing a hood on the face, it can be very difficult to use that information. if the biometric data is camouflaged, it cannot be used. one must then go back to other forms. whether it is dna analysis bullet casings in this case. again, in order to do a dna match, the suspect's dna must be in some part of the database. and that database is only growing it is not extremely large at this point. so, one has to rely on the human intelligence and network traffic , or what is referred to as social media information great advancements have been made in great big data analytics where the data analyzed links separate

forms and determines which parts were made to lead up to this incident. >> interesting. give me an analogy, perhaps, where big data has taken massive things like web searches or massive cell phone calls to give us information on something? >> for example, if there have been purchases made of the rifles in this case if some people were recruited to conduct this operation and there was a money transfer or a coded signal this is the kind of information that could be linked together. at least with computing power, as well as data analytic techniques now available it would link these disparate seemingly disparate events to

form a plot linked to this event. look at the communication pattern between the non-terrorist cells. look for some coded words. it is a difficult problem. given the network analysis techniques it is something that we have to rely on. >> interesting stuff, professor. thank you very much. "bottom-line" is coming up at the top of the hour. what is coming up? >> we will force continued coverage of the deadly terror attack in paris. the deaths of 12 people at the satirical french newspaper, "charlie hebdo."

we will have reports from london, paris, and washington. and i will he joined by the ceo of the woodrow wilson college scholars and scholarship. we will see you in a few minutes. >> we will certainly keep watching that story as it develops. coming up, connecting people and their data online is one of the biggest uses of technology today, but when will new solutions come through? next. ♪

>> i am cory johnson. this is "bloomberg west. with multiple devices going online -- west." with multiple devices going online, we had a conversation with the chairwoman of the fcc at the consumer electronics show.

>> the real question is how can the internet of things not sacrifice consumer privacy and security? i think that companies need to view this all the way through things. security by design. think hard on designing a product. they also need to think about long-standing and immunization. companies need to be thinking hard about whether or not they are mining rich data. >> even if there is a theater -- theoretical reason to keep it? >> do you really need it? when you collect and store a lot of data, there are multiple possible entries. finally, there is the giving of greater control to the consumers. i think that those three key

steps are essential for making it successful with protection of consumer privacy. >> in the two years that you have been the chairwoman you have spent a lot of time with technology, printing or settling cases with snapchat apple, amazon purchases at&t for the third-party bill. why the focus on tech companies? as a group do you think they are too aggressive when it comes to matters of consumer privacy? >> not so much that so much as we need to be where consumers are and technology is playing an increasing role in the life of the consumer. in light of that fact, we will be monitoring the marketplace and taking action where necessary. we see a lot of newcomers coming into the space and it is important for us to take the

basic consumer protections of the brick and mortar world and put it into the overworld. >> you brought up an interesting case against at&t for throttling data for limiting the data of customers even when they had an unlimited plan. how prevalent is that practice amongst isp's? >> i cannot really speak to how prevalent it is across the industry. what i can tell you is that what we found problematic about what at&t was doing is that they promised consumers would be getting unlimited data and they broke that promise, certain computers simply were not. we are out there, we are protecting consumers, they can show that customers keep their promise -- companies keep their credit -- keep their promises. >> and they settle that? >> actually no, that case is being litigated right now. >> interesting. in november the president came out in strong support of net

neutrality saying that the internet access needed to be regulated under title ii mandating your counterpart at the fcc to have a larger role in regulating internet access. i am wondering, what does that do to the jurisdiction of the ftc? does it limit the enforcement under title ii? does it limit your ability to enforce protections on the internet? >> first of all, i agree with the president and the chairman who says that we need an open internet. it is an issue that the fcc is looking at closely right now. we will hear from them again soon. we do not have authority over common carriers. reclassify broadband services could affect our jurisdiction, nonetheless we do not have a broad jurisdiction.

>> let do you worry about that? could you bring cases against at&t if those providers are reclassified? >> it will affect the jurisdiction if there is reclassification but at the end of the day it is a complicated issue that deals with economic, technical, legal questions. i am looking forward to see how they ultimately side. >> so, has this been problematic because it limits the authority? >> i would like to see the common carrier exception eliminated. something they have advocated for many years as an outdated exception. we will pay attention to that. >> chairwoman, thank you very much. >> thank you. >> that was edith ramirez at the consumer electronics show with some guy. we are focusing on one number that means a lot, joining us right now is another guy named brad.

how are you holding up? >> hi, cory. i am well. i was conflicted. conflicted about today's bloomberg by. could go with 150,000, the number of attendees here. could go with 20,000 projects. number of new product launches. i'm going with four, the number of hours of sleep i got last night. >> i feel your pain. i have been there that show hustling and bustling with people in new york going -- what are you doing? wired -- why are you not giving us more? i know you will have more to reflect on. let's lots of cool stuff. the coolest things are the automated cars. audi drove from silicon valley to las vegas in an automated car. >> awesome. brad stone, thank you very much. with more tomorrow on the

consumer electronics show, we then have your headlines online. your phone, tablet, everywhere. ♪ . .

>> 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. we begin with breaking news. the u.s. federal reserve is releasing the minutes of its december federal open market committee meeting. peter cook joins me with details. peter, good afternoon. >> good afternoon. the minutes from the last fed meeting provide more color for the talk really table about when the central bank may lift interest rates.