suffering a set back as he tries to control asset holdings. reject thing a buyback offer. 5%. must wait 12 months before trying again. incorrectly read lorded equities

between april and september. $157 billion reported. a result of a system upgrade. kong closinghong out. hong kong has been trading to the downside by about one half of 1%. 1/10 of 1%. this is the picture of shanghai and turkey. up by one -- half of 1%.

emily: i am emily chang and you are watching "bloomberg west." tensions escalate between turkey and russia after the turks should down a russian fighter jet. a billionaire catfight in space. and, going mobile fast. watch the games and go shopping from the comfort of couches this weekend. first, to our lead. officially split into two separate companies earlier this month and today had the combined results. down year after year, combined airings 93% -- $.93, and down from last year. away, issued a

separate outlooks for the first quarter and warned profits would be lower the end expect that. profits tumbling. it expects first-quarter earnings lower the yen estimates. hp enterprise shares flat. software enterprises headed by meg whitman expecting below estimates. joining us, crawford and here , ourme in san francisco editor-in-chief corey. down so much.es we see a business shrinking on every count. the topline shrinking, profitability shrinking. when we look at some of the businesses, print is down 14%.

i went back and at every model. biggest decline of supplies and printers than ever before. printers are weak. yearare sales are down over year. they spent over $10 billion acquiring software companies. emily: any bright spots, crawford? crawford: some bright spots. they are not that bright. one was the margin in services. up considerably. the highest since 2011. you would expect that because that is where a lot of cost cuts have been. higher margin services, a greater mix. that was a bright spot in an area they have done working on,

as well as an enterprise group in general. aruba contributing significantly to networking growth. it the largestg part of the enterprise group. again, in aggregate the core foundation really weak. a prophet you see as for hp ink versus hp enterprise hp inc vs hpt for enterprise? we should not be surprised when the world is going to mobile and away from desktop. in a way, the acquisition, one

of the things we talked about in the first bloomberg west ever, i think in 2010, it is interesting to see the stock performance, which has been about equal. up exactly 34% since meg whitman took over. interesting, the three-part. emily: the biggest tech merger ever, hp splitting into two companies. i wonder when we look back, which decision will be smarter. meg whitman has criticized. it is money they are taking away from business critical. michael dell has fired back. i spoke to him. take a listen. year, spent, last more than $4.5 million on sharing purchase dividends and

expense. so, if hp were to go private, it would spend, i calculate, about $2.5 million on, i am talking -- it wouldole hp save $2 billion that we could reinvest in our into deep. her argument is ridiculous. be on the is going to right side of history? both, neither, what are the other? >> neither is an option. aok: i think megan has made decision here. it was a difficult situation and she had to do something to get a lower base where the companies could grow. they are point out starting to grow and they have shown it to consecutive quarters of growth.

they are executing very well in that core business. even the hand mega was dealt, this was the best decision. michael taking his company private and going into emcs world, that is not going to be easy to do. but he has got some advantages as a private company. i think it gives some options that hp does not have. ofen that their history non-rocky acquisition. emily: what do we know about layoffs. >> not much. hp will announce layoffs and then they will go a few quarters and add that they are adding to that. but 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. -- the quarter wildly. it may suggest that the restructuring will go down, $591 million in the restructuring. not that they are doing anything illicit as it relates to their accounting, but 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? crawford: i don't expect that hp ink will be particularly. for 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. so i would expect it to be something in the security space and the infrastructure of the

service 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. solar city announcing the cfo will retired next year. the company says the chief operating officer has been promoted to president and will absorb the responsibility. the move comes as investors punished solar city stock with a 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. ats 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. later this hour ♪

♪ emily: in today's edition of out of this world, a major milestone in the space industry. check it out. >> welcome back. emily: that was blue origin's new rocket landing on earth after launching to an altitude. they are the space exploration company launched by jeff bezos. it, along with 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. lori: when you think about space 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. emily: even though elon musk was 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 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 to land -- it 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. emily: so this will carry passengers on suborbital flights kind of like a touristy thrill ride. what regulatory risks remain? lori: the faa is regulating the orbital and partial orbital space travel. nasa is 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. emily: jeff bezos is saying that 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 as well as he has planned for the thrill of going to space and seeing our beautiful planet. emily: 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 spacex. who do you think should focus on what? what is nasa's responsibility? lori: i 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 rockets with older technology. allow the private sector to do that. remain with government investment and our talks dollars -- our tax dollars to help increase 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. nasa will be leaders but they 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 and elon musk belief in, the 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. emily: all right, that was lori 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. it will apply to drone swaying .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. month-long bidding company 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? ian: it really does seem like 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? ian: no one is in trouble but 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. emily: 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. there is a lot about putting in 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. we think it is 100% in the

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? crawford: probably around iot. it will be more deals around the future of automotive. so i would expect that you would see intel or other companies in the large space looking to buy into the iot party. emily: how 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. there are 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. coming up, 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. ♪

president ollanta met with president obama for the first time since the paris attacks. obama: this poses a serious threat to all of us. a cannot he tolerated. it must be destroyed and we muster it together.

continue to search for suspects. one company and california is working to perfect a technology. it has already been rolled out in nearly 90 committees around the world. in the studio.w this is interesting. you guys basically have microphones deployed in a high crime areas in cities across the nation. location ofnt the the gunshot. how does that work? designed to trigger on noise like gunfire. they are able to trigger that event, timestamp it, and send it back. exactangulate the

location of the gunfire in real time. emily: that you say that is more effect of then 911. how so? ralph: 80% of the time people don't bother to call when they hear gunfire. 20% of the time they call up to five minutes later and do not have the exact location. this way, we always listening, always alerting on gunfire. givingplease a -- -- 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. effect of late, and that affect -- 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 persistent 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. if we could get a low cost 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. emily: your technology focuses on outdoor noise. what about indoor. ralph: we do have an indoor technology. we have 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. that is 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 sirious xm. it is the season for buying and believe it or not, this is one of the biggest weeks of the year for sports retailers. sports fanatics will see more than 50% of their sales this 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. and the warrior story is a big one. so in this sports energy with holiday energy combined and it is incredible in terms of the metrics. emily: we have been talking 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 it climbs into december. and it gets bigger. we will see 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. emily: what do you guys do behind the scenes to get ready? doug: it is one of the most 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. normal e-tail is 30%. 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. emily: we have been talking about how traditional retailers are suffering. every day, my inbox is full of

50% off e-mails. you are now working on sports merchandise. what is different in sports? are you seeing any negative trends? doug: 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. i think you 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 have seen a push in developing 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 warriors are one of the biggest items. it is all about steph curry this year. emily: who doesn't love steph curry? doug: last 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. which ise super bowl big. 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 duel-draft king story will begin 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 jumped 385% from the year earlier. with disney as its backer, the newest toys will knock toy sales out of this galaxy. ramy: 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. ramy: 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-$1.5 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. ramy: 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 battling for customers. hopefully the force will be with them. emily: that was ramy inocencio. the consumer robotics company is out with overdrive just in time for the holidays. it is a souped-up version of the racecar product. the general 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. boris sofman 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. this is a racing game and it is 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 devices are the brains behind this. you can give it a better engine but the cars that you aren't driving, they are controlled the ai intelligence. emily: 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. programming with software toys 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. and because of the software element, kids as young as five years old can play it then it goes up to a dolts. -- goes all the way up to adults. 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. emily: so i am still winning. i mean -- are you slacking off? boris: we can then program all 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. the ceo, boris sofman, thinking for joining us. we will be back tomorrow. ♪

♪ presentation -- brought to you by got the drinker. posted by network television star courtney thorne smith and featuring some of the most dramatic before and after photos you have ever seen. courtney: hi everyone, i am courtney thorne-smith. don't change the channel,