should down a russian fighter jet. plane enteredar turkish airspace before it was shut down. vladimir putin called it a shot -- he called it a stab in the back. a curfew and a state of emergency has been declared in tunisia after an explosion in the city. a bus was targeted and at least 12 people were killed. more violence in north africa -- --s time a suicide arming suicide bombing. belgian authorities have charged a fifth suspect. withrities say -- was seen salah abdeslam. lockout is expected to begin to ease tomorrow, that is when the subway at school system will start to reopen. and here in the united states,

president obama met with the french president at the white house. both leaders agreed that efforts need to do more to defeat the islamic state together and demanded serious -- demand it syria's president out. you can get more of these stories 24 hours a day on bloomberg.com. emily: this is "bloomberg west," coming up, hewlett-packard and life as a single company. plus, a billionaire catfight in space. for bezos takes the lead the rocket. and sports retailers go mobile. fans can shop for gear from the

comfort of their couches this weekend. financial swansong for a technology company, hewlett-packard has officially split into two companies this month and today, the last set of combined report. results were down here over here. reporting combined earnings of $93 per share. down 9% fromame in one year ago. issued key take away separate outlooks for the first quarter and warned that profit would be lower than expected. shares for pc inc. tumbled. they say it expects first-quarter earnings lower than estimates. hp enterprise shares are basically flat. earnings in the first quarter. those will also be below

estimate. anding us now is crawford in the studio, cory johnson who has been digging through the numbers. what are the key takeaways? any time towas ever not listen to analyst estimates, it is now. we see a business that is shrinking on every count. profitability is shrinking. and when you go under the covers and look at some of the businesses, like pcs or printers, they are down. i went back to look at every model and there has never been a big decline ever. that is the cash on the machine. are weak and the future is that also. software sales are down double-digit year-over-year. -- have spent

are there any bright spots that we are not seeing? crawford: there are. margins in services were actually up considerably to the height they have been since 2011. but he would have expected that because that is where most of the cuts had been. also, where they have application to business services , that was a bright spot in an area they have been working on. as well, the enterprise group in general, like acquisitions, they .re more successful aruba contributed successfully to networking growth. thestorage is representing large part of their growth within the enterprise group. the four foundational businesses, things like pcs and printers, really week. what is the:

prospect for hp ink versus hp enterprise? morning,the radio this crawford was saying that there is a steady business for printers. we may have reached the bottom of microsoft. maybe we shouldn't be surprised. environment is a world that is going global and away from the desktop. yes, it is interesting that the free power acquisition, i think on the first bloomberg west ever, they are finally starting to show results. it is interesting to see the shop -- the stock performance. both oracle and hp are up 34% since -- took over. hp is a much smaller company. emily: you mentioned the acquisition and we have been talking about dell in the

and hp acquisition ever breaking into two companies. i wonder when we look back, which one will be smarter? has criticized the decision. she has said that this has been taking money away from business critical. michael dell has fired back at her. take a listen. hp itself last year spent more than $4.5 billion on -- sharepers it repurchase. and dividends. so if they went private, they billion and i.5 am talking about the whole hp. money you could invest. so her argument is ridiculous. emily: crawford, who will be on

the right side of history? both? either? neither? crawford: neither is an option. i think that meg whitman ate a decision here. she had to do something to get a lower base where the company could grow. and i want to point out that in the enterprise group, they are starting to grow. they have shown two consecutive quarters of growth and they are executing very well in that business. so given the hand that she was dells, this is the least bad option. now, michael taking his company private? that will not be easy to do. but he did get some advantages as a private company. as far as what he could do with a private market. it gives you options that hp doesn't have.

given their history, it is rocky. emily: what do we know about layoffs and break up costs? i know they were looking at up to 30,000? cory: not much is known. will announce layoffs and then they will go a few quarters and add that they are adding to that. -- the restructuring charges last quarter they took a small restructuring charge even in the midst of expanding their restructuring which didn't make sense. except that otherwise, they would have missed the core wildly. it may suggest that the , $591cturing will go down million in the restructuring. i would suggest to crawford's point about services, margins

looking good, who knows what was bearish in that restructuring charge? emily: do you expect any acquisitions in hp ink or hp enterprise's future? now that they can operate autonomously? crawford: i don't expect that hp ink will be particularly. hewlett-packard enterprise, i think they will be back in the game and if they are not, there will be huge pressure on them to do something. it to bed expect something in the security space and the infrastructure of the service space area -- space. emily: we will be all over that next quarter. we will look at the clues. cory johnson and crawford del prete. thank you both. now it is time to check in on the tech revolving door.

the company says the chief operating officer has been promoted to president and will absorb the responsibility. as investorss anished solar city stock with recent loss, sending shares down close to 30%. they are the largest installer of rooftop solar power. coming up, one giant leap for the space industry. jeff bezos eight elon musk to a huge milestone. details are next. les, this is not your father's racecar. this one uses artificial intelligence. we will take it for a spin. ♪

emily: in today's edition of out of this world, a major milestone in the space industry. check it out. >> welcome back. origin'sat was blue new rocket landing on earth after launching to an altitude. they are the space exploration company launched by jeff bezos. spacex, has been working on this landing to build reusable rockets. joining me now from washington with more, lori beth garver. she is the deputy administrator. explain to us just how

significant this milestone is and why. about spaceou think travel as any other form fan transportation, reusability will be key to helping make it become regular. imagine if we burned a ship once it went to con -- went across the ocean one time, imagine how it would be if we had to get rid of an airplane every terribly fluent. -- free time we flew it. this will allow many people to go and come back. wasy: even though elon musk congratulatory at first. he did respond with a second tweet saying that it is important to clarify space and orbit. so what did blue origin do that space and ask -- do that elon musk didn't? lori: it really leads to private

industry competing. we have different altitudes. elon has gone orbital and that is harder. but this as a sub cortical -- some orbital vehicle, being able is no longer in question because there aren't outside investors making these innovative advancements. at the same time, we have a government who just announced a $1 billion contract to launch a construction line for the engine of a rocket that was developed in the 1970's and won't launch more than once every couple of years. this is clearly a win for private enterprise and space. and that means that jeff bezos and elon musk are the clear winners. so this will carry passengers on suborbital flights

kind of like a touristy thrill ride. what regulatory risks remain? the faa is regulating the orbital and partial orbital space travel. in this model and is working with the faa. they have been very successful at getting this off. similar to how it is in aviation. you do have a private sector building airplanes and flying them and faa is regulating them. and they will play a similar role for public space travel. that: jeff bezos is saying they could take humans to space by 2017. do you think that is likely? lori: i absolutely do. he has announced that there will be many more tests, probably upwards of 20 tests and that is what a -- does.

this is what will drive down the costs and make it able to utilize space for transportation forell as he has planned the thrill of going to space and seeing our beautiful planet. now, before i let you go, i want to get your thoughts on the future of mars missions. you spoke on a panel last week and made some pretty pointed comments about nasa's mars ambitions versus space x. -- onday, we had a nasa the risk. who do you think should focus on what? what is nasa's responsibility? don't think the space sector is any different than other industrial sectors in this country. we believe the private enterprise drives innovation and

is what ultimately returns to our economy. so the government has an appropriate role in driving that and will advance in the time when we have sent people to space but for exploration missions to the moon and mars. nasa has a great role in that and they should be working exactly on the things the report highlighted. things like, how do you have people survive over a long time in space? that is competing with the private sector with private with older technology. allow the private sector to do that. remain with government investment and our talks dollars -- our tax dollars to help national security and national economy. i don't think this is different than how we see the government's role in other areas. there is nothing different about it. emily: so, who will get to mars

first? lori: we will all get to mars. that is what is exciting. but they be leaders should do it in a way that capitalizes on the private industry, in a way that once we go, we can go to stay. something that both jeff bezos , thelon musk belief in long-term survival as a species. that is not nasa's role. nasa is a cutting edge agency to deliver benefits to this country and they can do that through partnership with the private sector and i think that is the future and we will all be on mars. was loril right, that beth garver. great to have you on the show. thank you. staying airborne, if you are planning on putting a drone under the tree, you might have to register with the government.

the faa latest proposal will be the biggest step so far to get a handle on recreational drone use. swayingapply to drone .5 pounds-55 pounds. owners must display registration on every machine. they will vote on this in the next month, just in time for the holidays. coming up, a big deal for some little chips. the bidding war comes to a dramatic close. the details are next. ♪

emily: semiconductor mergers are continuing at a record pace. more than $90 billion in deals in the chip industry in the last year. saying it will pay $2.5 billion for pmc sierra. this was just hours after -- withdrew the own offer. joining us now is ian king.

first of all, put this into context for us. you have been pounding the pavement to cover these deals. what is happening? seem likeally does one of these deals is being driven, bike get bigger and get bigger now. that does seem to be what is driving the industry. emily: are they in trouble? but no one is in trouble this company is small. when you think about the costs that go into developing the chip , there are huge risks and you need a return. you need to spread those over a bigger base. crawford, what is your take on this? crawford: there is a lot of opportunity in the marketplace but there is only so much great opportunity. inre is a lot about putting

hybrid/controllers in the cloud and that is a margin rich business and micro semi wants into that business. it has a nice profit profile over the long-term. in thek it is 100% market from 2017-2018. it is about where the chips are going. emily: will there be any difference for me, as a consumer, in terms of buying my iphone or laptop? ian: that is a good question. we are seeing a shrinkage in the number of suppliers out there. so if you are out there right now, you are in a strong position. next year, where else do you go? emily: what is the next big deal? around iot.obably it will be more deals around the

future of automotive. so i would expect that you would companies inother the large space looking to buy into the iot party. dominant are these intel positions right now? ian: it depends on which industry you are looking at. in the pc, no one has gone near them. -- all they are doing is making losses. areas where nobody else is even close. emily: ian king covers the semiconductor industry for us. and also crawford del prete. thank you for stopping by. as the islamic state threatens more attacks, one california company says it has a fire alarm for terrorist

attacks. i will sit down with the ceo. and tomorrow, the chief equity strategist is joining us and on bloomberg , we talk retail at 7:00 eastern. ♪

emily: i am emily chang and this is lulu -- this is "bloomberg west." it is wednesday in hong kong. good morning.

>> thank you. a couple of earnings we are watching here. the leading list of july has put expansion on a hold. -- also announced a first ever special dividend in an attempt to an list investor returns. they say they will shut underperforming stores. shares have fallen more than 40% the china slowdown affects industries in hong kong and abroad. -- says sales next year will miss the target of growth. they blame slumping demand in china and the u.s. and it comes after they cut their revenue forecast. hugo boss says the slowdown in china is forcing people to look for better prices elsewhere. a 25-year-old woman has gone on

trial charged with defaming. photos of -- she is one of three people recently charged with connection to social media posts. there are dictatorship laws protecting the dictator from ridicule. and -- has suffered a setback. holdings rejected the $12.4 billion buyback offer over concerns about valuation. said only 50% approved the plan. emily? does this mean? how significant is this? >> he is not called superman for nothing. this will likely be a short-term setback. it has derailed the plans to

consolidate the empire before he retires. his company has issued a that they areng disappointed with this outcome but it seems that no one from management on either side could sway the minority investors to vote, yet. more than $8.7 billion in cash and equivalent and that would have allowed it to fund a future transaction. but he is not called superman for no reason. he may have to wait a year but we will see him expand and consolidate his empire in the future. emily: something that we will continue to follow. that is the asian first word news. ♪ global fight against terrorism took center stage at

the white house today as the french president met with president obama for the first time since the attack in paris. both leaders were defiant in the face of an attack on the world. >> this barbaric terrorist group, isil, and its murderous ideology, they pose a serious threat to all of us. it cannot be tolerated and it must be destroyed. and we must do it together. in france and other european nations continue to search for two suspects linked to the attacks. meantime, one california company is working on technology that would help deal with future attacks. it is called shot spotter and it has been rolled out in 90 communities around the world. ralph clark, the man behind the company is here with me in the studio. microphones toe floyd in high crime areas in

cities and across the country and they can pinpoint the location of a gunshot? how does that work? ralph: we use sensors to ignore ambient noise. they are designed to pick up noise and they can trigger the event and timestamp it and send the information back to software and that allows us to take different times and triangulate operation of the gunfire. emily: you say this is more effective than 911? in urban areas, people don't bother to call 911 gunfire or they don't have a precise location to send officers to. so effectively, we are always on and always listening and always detecting gunfire surveillance that detects and locates gunfire

, giving police a specific place to go to. emily: so this is already deployed in 19 different cities and police are already using it? what kind of numbers can you get us about how often it is being deployed? ralph: as you mentioned, we are deployed in around 90 cities and law enforcement is using this to get cops to dots. that sets up a deterrent mechanism. we are looking to see gunfire reduced because this is a deterrent as officers can get to the scene quickly. in these localized areas that are dealing with processing gunfire. emily: how could this have helped in paris? ralph: that is a bit of a different scenario. through our collaboration, we are expecting to deploy in an ubiquitous manner. that is very different than how

we are deployed here. cost could get a low coverage capability across an entire city, this could operate as an alarm for gunfire. what we know about these active shooter situation's is that if we can get officers to a scene quickly, they can save lives. response is everything. emily: you mention a partnership with ge. you would be partnered with street life? how widely deployed are these now? ralph: hopefully they will be deployed in a significant way. there is a significant cost savings and effects that cities are able to employ when they use smart city lighting. emily: does your future depend on theirs? ralph: it does, yes. emily: is that a bit of a handicap? what sort of projections do you

have? ralph: we know this is a significant incentive for cities to convert their lighting. they are looking to be smart and intelligent. we think ge is taking a visionary stance and they are going to providing a lot of intelligence at the street light level and we think it will be significant. your technology focuses on outdoor noise. what about indoor. ralph: we do have an indoor technology. combined outdoor and indoor technology. emily: i certainly hope we will not be hearing gunshots indoors at a school, but it does happen too often. do you ever get false alarms? ralph: over the years, we have been able to perfect the hearing capability, that has been an advantage. i should point out that every single alert our system generates, we staff our system

on a 24/7 basis. so we analyze before we push the alert out. 35-40 seconds. so our false alarms are effectively zero. emily: ralph clark, the ceo. coming up, this company does 50% of the annual sales this quarter. we will talk to the ceo next. plus, high-speed racing with a twist. ♪

emily: if you like bloomberg news, check us out on the radio. you can now listen on bloomberg.com and on serious xm. ands the season for buying believe it or not, this is one of the biggest weeks of the year for sports retailers. sports fanatics will see more this50% of their sales quarter, more than half coming in on mobile. joining me now is doug mack. the ceo. business is booming for you right now. doug: it happens to be in the sports industry this year, that not only is it holiday, but it is a perfect storm on the sports schedule. you have nfl and ncaa football, you have the world series and nba basketball. you have nhl hockey. literally every major sport is

playing. you see thanksgiving day football games. you have college football. bigthe warrior story is a one. so in this sports energy with and it energy combined is incredible in terms of the metrics. been talkinge about how more traditional retailers, black friday isn't so much as a thing as black november. is that the same for you guys? doug: it is. cyber monday has always been a big thing. black friday is one of the biggest days of the month. yesterday for us was the biggest day of the year. and it just keeps climbing. then a climbs into december. and it gets bigger. that platform across all of our stores.

it puts us on scale with espn.com. we go from shipping 60,000 units of merchandise in the summer to 600,000 units. do you guys do behind the scenes to get ready? the mostis one of incredible things, we go from 1600 employees to over 6004 this time of year in manufacturing and operation and customer service. and that is in every area of business. from merchandising into technology. it is an all out sprint. emily: tell me what is happening with mobile? doug: it is incredible. we see sports fans when they are watching sporting events, they have a second screen out. so they are with the mobile device and when a team wins a championship, we see mobile sales be about two thirds of all

sales. when the women's u.s. team won the world cup, that was incredible. 30%.l retail is right now, on average, we are in the mid 40's. we actually ramped up in the bay area. we have over 100 employees here in san francisco with a big focus on mobile technology data to lean into this mobile mega wave that is happening. have been talking about how traditional retailers are suffering. day, my inbox is full of 50% off e-mails. on sportsw working merchandise. what is different in sports? are you seeing any negative trends? retail in general, there is a -- developing this time of year. a lot of retailers try to get out early in november with the early shoppers and then you

bring them in with promotions and discounts. then turn the corner into december and those that are in healthy shape should focus on availability and delivery speed. over the years, because i have about 17 years in e-commerce, i developing push in and then consumers know they can wait until the last minute. and you see a huge last-minute rush. you see discount shoppers early and you see the availability and get it to me fast shoppers late. emily: interesting. so you brought something? tell me about the most popular item. doug: it is incredible. the war years are one of the biggest items. it is all about steph curry this year. emily: who doesn't love steph curry? year, he passed lebron james as the number one

seller in the nba. he is now the number one selling player in 41 states. we ship to new york, the big states. we have shopped to 32 countries. so this is just one of the most popular items. people love his jerseys and t-shirts. so right now, the warriors are the mega-story and he has gotten to the level of tom brady sales. emily: really? wow. tom brady level. tom brady might be suffering this year. doug: it is the opposite. deflategate brought it down a little bit that's once he was cleared, his sales took off. patriots are undefeated, too. they are number one in the nfl. so there is a lot going on in sports right now. it is something we need to be ready for. emily: gift ideas, everybody.

the ceo, doug mack. great to have you on the show. the next chapter in the fan beginraft king story will tomorrow. they are going before a judge in order to hold off the new york attorney general. earlier, he offered them to stop accepting bets in the state because it qualifies as gambling. tomorrow's hearing is the first step in what could be a long, legal process. coming up, we are talking high tech toys. the company putting consumer robotics into the hands of anyone. ♪

emily: some star wars trivia for you. after episode three hit theaters in 2005, star wars toy sales

-- from the year earlier. with disney as its backer, the newest toys will knock toy sales out of this galaxy. the force awakens and the dark side returns during this holiday season with a potential $1 billion in star wars toy sales. in the heart of new york's times square, toys "r" us is ready for star wars fans to storm in. >> this is a huge driver for the toy industry overall. we are seeing great sales now and we will get a big peak around december 18, but now i am excited to see what happens next year. ramy: richard barry has led retailers star wars rollout.

richard: it took years in planning for what we have to execute in the store. we have more than doubled our space in the majority of our stores. toys "r" us is packing the shelves with historic characters like a reintroduced r2-d2 and a reengineered yoda with robot technology. along with new characters only teased in trailers. star wars is the biggest property in toy history and we are talking about one billion -one $.5 billion sold this year. they say that star wars fans span generations. >> you could have a five-year-old who once a toy, but then you have 50 and 60-year-old fans who need their collections. ramy: toymakers have grown.

>> you have mattel. ramy: and you have less well-known companies rolling out toys. >> this company is getting a huge bump. not a lot of people have heard of him and now they are on everyone's radar. malcolm -- the falcon is a huge draw. and retailers are positioning themselves to be the destination for star wars toys. >> if you want toys in the star wars franchise, the place to come is toys "r" us. ramy: with the countdown to star wars and christmas going, retailers will be battering -- will be baffling for customers. hopefully before slowly with them. emily: that was ramy inocencio. is consumer robotics company

out with overdrive just in time for the holidays. it is a souped-up version of the racecar product. idea is to put consumer robotics into anyone's hands and bridge the gap he between deal games and the physical. this is expected to balloon in the next four years. the ceo is back here with me. we have been playing a little bit. please, you have a little bit more experience than i do. i am the blue car and you are the red car. it looks like i am beating you right now. tell me about overdrive. boris: this is the second generation of this line of products. it is a battle game and -- emily: i am killing you. boris: let's change that's really quick. and it isracing game

augmented with digital elements because it is a videogame in the real world. basically, we use robotics to have this game come to life with special abilities and mobile theces be -- devices are brains behind this. you can give it a better engine but the cars that you aren't driving, they are controlled the ai intelligence. the starter kit is $150. if you own the original kit, you can download the new app for free? boris: yes, you can get a taste of what the new experience is like. emily: this is supposed to be a hot toy, what do you think about the competition? boris: the key difference here is that what this enables you to do, when you close the loop between the virtual and be physical, you have a deep

understanding of what is happening you can bring a videogame to life. that is what is happening. toysamming with software on how to come to life. emily: i have heard this described as a combination of a videogame and a board game. boris: yes. you are not attached to a screen but you are playing physically. it is like a videogame in real form. this is a version that brings that to life because you have a storyline and a lot of characters to explore. and a majority of it is done through software. emily: who are your primary customers. boris: kids big and small. half of our players are adults. of the software element, kids as young as five years old can play it then it goes up to a dolts. we have a lot of 50-year-olds who are nostalgic for the old days. they enjoy themselves. emily: i know the idea behind

her company is to put robotics in the hands of the consumer. what is next? boris: we are not a toy or an entertainment company and this is just the first step in developing this software. even with this, this is more of a game engine in the real world. so i am still winning. i mean -- are you slacking off? program alln then sorts of other experiences in the physical world where characters start coming to life with personalities. emily: this is cool stuff just in time for the holidays. ceo, boris sofman, thinking for joining us. we will be back tomorrow. ♪

♪ >> from our studios in new york city, this is "charlie rose." charlie: we begin this evening with our ongoing coverage of the recent paris attacks. questions continue to surround the global response. last week former secretary of state hillary clinton called for an intensified effort to combat thes i lack imstate. >> it's time to begin a new phase and intensify and broaden our efforts to smash the would-be caliphate and deny isis control of territory in iraq and syria. that starts with a more effective coalition air campaign. with more allied planes, more strikes anda