with an update of the top stories. -- angie lau with an update of the top stories. mining industry suffer the worst fall. this may raise pressure on the cuts. for rate south korea has ordered volkswagen to recall 125,000 vehicles over the use of the emissions cheating software.

paywe are told by apple that apple pay could be available in china as soon as next year. such a deal would allow apple to market.$3.5 trillion deals have yet to be finalized. rightlook at the markets now. hong kong, china, currently closed for lunch. here is how they were trading in the morning session. this is the picture in singapore, tokyo, and mumbai. i will be back in half an hour with another update commit time now for "bloomberg west." ♪

emily: i'm emily chang and this is "bloomberg west." procrastinators gave thanks for online delivery service this holiday. first to our lead. a short but busy week in tech news. the latest unicorn, jet.com announcing a $350 million funding round. fresh capital as holiday shopping ramps up. hewlett-packard posting its final earnings as a single entity -- and the results were not pretty. cory johnson joins us live on set.

this is a massive round for jet.com. spencer: a lot of money heading into a critical time. this will be their first holiday shopping season. you are right to note some investors doubled down. they see something they like and they are throwing more money at it. emily: jet posting a growth rate of 65% between september and october. that is impressive. spencer: one investor i talked to was impressed that by the end of the year, they are expected to be on an annualized rate of 500 million in overall sales volume. they are growing and they are

throwing money at it as long as it keeps growing. emily: they are offering steep discounts to sign up new customers. is this sustainable? cory: customer acquisition is the first goal they have to get to. it is tough to compete on pricing and with the increasingly skill that amazon has developed. this has been tried before. amazon.com has tried to launch abroad. these guys have to figure out specific things around logistics. drugstore.com, amazon put a lot of money into it, never quite made it as a giant company until walgreens took them out.

they seem to have figured it out once. emily: spencer, do you think jet can take on amazon? spencer: you cannot just look at it as one versus the other. there is a lot of headroom in e-commerce. the distinctions we are seeing, jet is succeeding and encouraging people to build bigger carts. they are getting larger orders. the typical number of items per order with amazon is fewer than two. with jet, it is close to five. they have a model that is resonating with some people. it is different than amazon, but it is working. it encourages you to build up a cart and save more.

emily: you do not get the fast delivery times you get with amazon. i am a procrastinator and i love amazon prime. cory: shipping is the name of the game. we see how much money amazon loses in shipping. they have to break it out to their investors to show it what it is. to solve the shipping problem is the name of the game. it is like the struggles that cosco has gone through. emily: i do want to ask you about hp. you have been digging into the numbers. are you seeing any signs of a

turnaround? cory: no is the short answer. when you look across every single business, declines in pcs, a big decline in printers. big declines in software, which is supposed to be the future of this company. so disappointing on so many fronts after so many years. it is worrisome going into the future. emily: we will be watching when they report their first earnings as separate companies. only 13 weeks away. cory johnson is our editor at large.

we have a very special "bloomberg west" thanksgiving feast. a "west"-giving. our bloomberg news reporter has been ordering stuff all day long. sarah, what did you order? sarah: i tried all of the apps. i tried to get a variety of things. i ordered a variety of kitchen tools. a turkey baster, meat thermometer. i ordered a full turkey and i ordered pumpkin pie. i also got wine. instacart, this company partners with different stores and i was able to get anything from whole foods that i wanted. i picked the pumpkin pie from their bakery. it was great to have the

selection, but the pie came in in one hour and 20 minutes. you can buy all of the ingredients for a perfect turkey meal. when i tried to buy a turkey on amazon, it was difficult. they have all of the kitchen tools you need. for this particular scenario, that was a problem. i searched turkey and between deli meat and cat food -- there was actually an outlet converter if you are traveling in turkey. i did end up getting some stuffing and some tools for the cooking. emily: this turkey is frozen. we still have some work to do.

we have been looking at some pictures of the loot. which company should we be most thankful for? sarah: postmates made it the easiest for me. they really thought about thanksgiving the most. if you need a specific thing, if you wanted some extra baking powder, you would have to go to amazon, or maybe something from the grocery store, instacart would have the full grocery store selection. postmates was the most prepared for thanksgiving. emily: you know that i am an amazon shopper. last night, i got a few last-minute things. i am thankful for amazon today. we will talk a little bit more about this later on in the show.

we will talk about the business model of on-demand startups. sarah frier, thank you so much. we will be back with you later. we check in with one of the world's leading experts on anonymous. as the cyber vigilantes carry out a declared war on islamic state. if you like bloomberg news, check us out on the radio. more of "bloomberg west" and our "west"-giving feast, next. ♪

emily: to the cyber fight playing out on computers around the world. >> hello, citizens of the world.

we are anonymous. it is time to realize social media is a solid platform for isis's communication. emily: a twitter hastag emerged in the wake of the paris attacks. the international group claims to have helped take down 20,000 twitter accounts connected to isis since the attack. it is a controversial mission. joining me now to discuss and help clarify what anonymous is doing, gabriella coleman, professor and author of the book "the many faces of anonymous." what does it mean to declare war on the islamic state? gabriella: anonymous has

declared war, the second iteration in the various operations. a couple of tactics are used. one is to flag twitter accounts. another thing is to take down isis websites. infiltrate forums, jihadi forums, and collect information that is handed over to the u.s. government. emily: how effective have they been so far? we have seen reports, some of the twitter accounts belong to journalists. some of them are written in arabic. gabriella: it is difficult to assess the legitimacy of the accounts flagged by anonymous. that is sent over to twitter --

we do not really know what twitter is doing with these names. they have recently mentioned to some journalists that many are inaccurate. emily: isis responded. they issued a statement, they called anonymous "idiots." this is on the encrypted messaging app telegram. how much do we know about isis's cyber capability? gabriella: they have absolutely exploited all the social media has to offer to get their message out there. when they had less brand recognition, before they led major attacks, social media was incredibly important. they literally created the conditions for creating a big

audience when they had the videos of beheadings. it has been described as a funnel. when it comes to operations, we know isis was not so tech savvy as they use unencrypted sms for their operations. emily: how does the syrian electronic army fit in here? gabriella: they have definitely -- they are very similar to anonymous, actually. they are primarily online. they do not necessarily have an off-line component. they do a lot of hacking and they are good at gaining media attention. emily: how does anonymous

actually work? how are they governed? gabriella: that is an important question to ask. there is organization in anonymous. the team has been working for the past year pretty closely. after the paris attacks, a different group from italy declares opisis. it is pretty chaotic initially. you have simultaneous operations going on, sometimes with coordination between them and sometimes with no coordination. emily: how does the cia and fbi view anonymous? gabriella: generally, law enforcement has a pretty

negative view of anonymous and have arrested many participants because they have hacked and targeted government websites and corporate websites. the government tends to take a hands-off approach with these types of operations. what is interesting, there are offshoot groups, which purport to work closely with the u.s. government. emily: how well protected is anonymous from real-world attacks? gabriella: it depends on how good their operational security is. why the fbi was able to arrest so many people in anonymous is because they did not cover their tracks well. they were not using encryption. they revealed too much information. their security is a little bit better now postarrest, but there are a lot of newcomers who have been flooding these chat

channels. isis might try to out many of these members as well. emily: at the end of today, would you say that anonymous is doing more to help or hurt the fight against isis? gabriella: it is not so much either. it is the case that at this point, isis, along with their online propaganda machine, has a huge audience simply by virtue of the attacks. they will still reach people. even if anonymous is making a huge dent, they have an audience. it looks like anonymous is making only a slight dent anyway in their online propaganda machine. i have not seen major harm so far. i think people look at these lists skeptically right off the

bat, as they should. as long as people are doing that right from the start, the harm can be minimized. emily: interesting. gabriella coleman, anonymous expert, thank you for joining us. the debate over encryption continues today with new calls from law enforcement for better access to encrypted communication. the national district attorneys association releasing a letter calling for backdoor access to encrypted data. encryption has been in the spotlight since the paris attacks. some officials believe islamic state planned the attack using encrypted platforms. tech companies say any backdoors would be vulnerable to hackers. rethinking the way lenders approve clients for loans. we will talk to the ceo of one startup that is doing just that. ♪

emily: one startup in san francisco is changing the way millennials and others who have short credit histories go about getting loans. the company uses algorithms along with other data points to approve candidates for loans. the most popular product is student loan refinancing. joining me now in the studio is the ceo of earnest. this is very important stuff. how does this business model work? louis: ultimately, the two big things are software and data to drop our costs and understand people better. delivering better customer service over a whole lifetime to

our clients, keep them forever. this increases our attention and referral rate. emily: i cannot fund my entire college education through you yet. but you do give loans for other things? louis: we do personal loans and student loan refinancing. the money we just raised is for us to build the team and build on our platform to offer a wide array of consumer financial products. our goal is to be the modern bank for the next generation. emily: how do you manage the risk you are taking on?

louis: nearly 100% of our clients are employed. emily: so these are not students? louis: financially responsible young graduates. we are looking at their cash flows, looking at their level of savings and their 401(k) and ira investment accounts. using that data to come up with a comprehensive and nuanced understanding of each individual to take smarter risks. emily: at what point would we see you doing actual student loans? louis: we aspire to do actual student loans.

when people think about earnest, to do all products. emily: interesting stuff, thank you so much for joining us. ♪

>> it is 12:30 here in hong kong. i am angie lau. capital expenditure down by 9.2% with spending in mining and other industries suffering the worst falls. manufacturing investment was a right spot of 7%. have fallenr asia x to a low. the eight the straight quarterly costand comes despite cutting measures. they expect to return to

profitability next quarter. and display makers are in the news today after reports said screens onwill use iphones. it means a switch from lcd to led screens for that has lifted lg displays. it is bad news for those suppliers of the current suppliers of the displays. check it out. 2015 looks like it is being one to remember committee when says global warming and el niño will make this year the hottest on record every the announcement comes early because the past 11 months have been so hot,, 2015 cannot fail to set a new mark.

leaders are going to discuss climate change in paris next month. let's check in on how the markets have been trading in the asia-pacific. here is heidi. heidi: this is the first time this week we are seeing this across the region. coming off some of the political of events. turmoil for the first part of the week. take a look at tokyo stocks. the nikkei up 0.7%. good gains for exporters on the back of the yen weakness. the aussie also hanging onto gains. also weakness in the dollar. keeping an eye on the chinese markets. shanghai up 0.25%. 25 year anniversary

of the shanghai stock exchange. celebrating with minimal gains. by blue chip led stocks. we are counting down to the reopened in hong kong and china at the top of this hour. ♪ emily: now to xiaomi. some signs that things may not be going so well for the beijing big startup. they will likely miss the goal of selling 80 million smtphones this year. how much of a setback will this be for their global ambition and how will the company maintain momentum against apple and samsung? i traveled to beijing to headquarters to interview the company's head of global operations and asked him to give me an idea of the size of their non-chinese business.

take a listen. >> we started with our global business two years ago. we added a couple of markets in southwest asia. we finally entered india and brazil. 2014 was just getting started. 2015 was the beginning of our acceleration. it is really beginng to form a meaningful part of our business. i will not give you a specific breakdown yet, but it is a meaningful part of ourusiness and it really matters. emily: how much of your business is still smartphones? >> smartphone are still our flagship products. it ranges from mobile phone accessies, aio products.

emily: xiaomi comes up in the u.s. when people talk about the reorganization of the smartphone market. how much does that matter? >> it does not really matter to us because we are such a different type of company. i almost cringe when people compare us to other smartphone brands. we are an internet company, an e-commerce company. we care about engaged users. emily: how are you handling slowing growth in the chinese economy? >> china is still a very large smartphone market. even if that plateaus to zero growth, it will be the largest market for smart phones.

we are fundamentally an e-commerce business. 70% of the products we sell are sold online. that growth is not going to stop anytime soon. emily: you said you will be launching phones in the united states. what is the timeline? >> no timeline set for the u.s. yet. it is on our radar. it is a very complex market. it requires operational efficiency and precision. emily: it is on your radar or it is going to happen? >> it is going to happen. i do not know when yet.

emily: a very happy west-giving to you. thank you so much for getting up early. what do you make of this new report out on xiaomi that they may not be doing as well as they expected? >> i disagree with hugo barra. the chinese consumer is not looking at xiaomi as the new hot cool thing. price-sensitive chinese consumers are moving toward another chinese brand that has some spectacular hardware. wealthier consumers are still buying apple products. xiaomi is in a tough position. nokia, blackberry, htc, and motorola were hot brands that have disappeared from the marketplace.

emily: when i was in beijing, i was shocked at how many people i saw using iphones. granted, i was in the airport, international hotels. what can you tell us anecdotally about the brand and how consumers view the brand, the xiaomi brand? >> it is viewed as a cheap alternative. they only sell online. i was surprised when hugo said 70% of their sales were online because they are not supposed to be selling in stores. they need to come up with a better brick-and-mortar strategy. consumers want to touch and feel smartphones when they buy them. they are considered a has been because they do not update their products.

if you are cool, you go for apple. emily: xiaomi valued at $45 billion. uber, $50 billion. is that valuation fair? let's not judge it simply on missing this one benchmark. >> xiaomi is a great company. they are able to realize a more price-sensitive consumer. air purifiers are a recurring revenue because you have to change the filter. i think $45 billion is a little high for a valuation. i do not see how it is possible that it is worth that much.

emily: stay with us. here is another story out of china. apple and china unionpay have reached a preliminary agreement to introduce apple pay in china through unionpay point of sales network. unionpay is the country's largest payment and clearing network. you live in shanghai. you use unionpay. >> it is kind of like a visa or mastercard. if you buy something with your card, you might use unionpay. it is really the big player out there. it is a good deal for apple, but i am not convinced apple pay is going to get a lot of traction in china.

wechat pay is dominating. you take your phone and you just swipe it. it is extremely convenient. i am not sure why consumers would not want to use what is already in existence, which is probably technologically far more superior to apple pay or square from jack dorsey. emily: there are reports that apple pay may be launching in china by february. these are areas that are tightly regulated by the government. how much do you think apple pay will run into regulatory hurdles? >> it is smart for them to tie up with unionpay. unionpay gets a lot of support from the chinese government. the much bigger problem,

frankly, is the strength of wechat pay. in the last few months, you have started seeing signs in brick-and-mortar stores. in less than a second, you can put money into your account or transfer money to other people. emily: i will take it. how much are you offering? i know you made a lot of money on those books on your shelves back there. thank you for joining us. what does amazon look for when it creates new content? we will hear from the head of amazon studios next. we are thankful for on-demand delivery and we will tell you why later this hour. ♪

emily: all i want for christmas is a playstation 4? sony announcing it sold through 30 million units. microsoft has not offered a recent sales update on the xbox, which is lagging in sales. the ps4 is sony's fastest selling console. amazon released "man in the high castle." it depicts an alternate reality in which nazi germany and japan have divided control over the united states. what goes into the process of greenlighting series? cory johnson spoke with the head of amazon studios.

cory: there have been a handful of shows at amazon. very important -- what works on netflix? what works on hbo? this on-demand programming is very different. he grew up in hollywood and has a sense of what has worked in the past. listen what he had to say about what makes an amazon show an amazon show. >> to watch the show, people have to demand it. they have to search for it, find it, click it. every time you have to have a high bar and you really have to think the goal here is this would be somebody's favorite show. emily: it needs to be someone's favorite show.

cory: you cannot just have a great show after "seinfeld" in primetime and a lot of people will stay to watch that. on-demand is very different in making that is very different. i talked to him about what that means for amazon. amazon prime subscription is a n't a moneymaker just for the video alone. they want people to become prime subscribers so they buy diapers and other media. this show is based on books. >> the other question is, are people talking about this show?

is it reaching people who may be are not amazon customers yet or people who have not tried the video service yet and get the word to those people and have them try it out. >> talk to me about the advertisements for the show. cory: they put some ads thematic to the show, the nazis taking over the east coast of the united states. the show -- i have watched the show and it is interesting. the show uses the iconography that was so successful to japan and germany. a wonderful review talked about how the show makes you think the entire time you're watching it, the iconography certainly does that.

emily: they ultimately pulled it, right? cory: it makes you think about what iconography means. i watched the first episode, really impressed so far. emily: cory johnson, thank you. coming up, our thanksgiving feast all delivered by on-demand in one hour or less. ♪

emily: very special on-demand thanksgiving today. you can be thankful for on-demand startups. but can they be thankful? they are delivering everything from wine to pumpkin pie. they attempted to do it in one hour or less.

even amazon joining the party. joining us now from los angeles, the ceo of saucey. you supplied the wine today, so thank you for that. sarah, you have been working the apps all day and you are responsible for this great spread. sarah: you and the rest of the "west" crew had some opinions about getting some wine. emily: you guys focus solely on alcohol, right? chris: we focus on beer, wine, and spirits. we find the impulse to want to have a drink is separated from grocery shopping or food.

emily: we have gone beyond the days of "mad men" and we had to wait until 2:00 to have our alcohol delivered. chris: depending on the part of the city, we usually open around noon. some places, we open a little bit later. we chose not to open at 10:00 for a reason. people can order -- the order times are between 5:00 p.m. and 9:30 p.m. we pick up around 11:00 or midnight. it has been an interesting order pattern. emily: sarah, you got a turkey. you got a pumpkin pie from instacart. you got a turkey baster from amazon prime. is there anything you could not

get today? sarah: it was hard to buy ready-made thanksgiving food. it was hard to find turkey on some of the apps. i was hoping for the office to be able to join in. there were some ready-to-eat things. i could have gotten cheese and crackers. but how thanksgiving-y is that? with saucey, i love the ability to pick from a selection of wine. i wish it had some tracking. i could not see where the driver was. everything was fine and they came here really fine. emily: chris, what is your response to that? chris: we submitted tracking to the app store today.

emily: let's talk about the business model. a lot of questions about the economics of on-demand startups. can you make this profitable? chris: i think any time you are moving the product from point a to point b, the most important factor is the drivers time versus how that cost to split up between customers. if you look at services where a single courier can pick up a whole bunch of products at once. there is a centralized pickup location. some of the other services out there can get really difficult.

an example would be, if you have 100 people place an order for food in san francisco, that could be picked up between 50 and 100 locations. very inefficient from a delivery standpoint. services like ours, people that centralized the pickup, are able to do it effectively. sarah: you have legal issues as well. i was carded when i was given my wine. how does that change how you approach the situation? emily: you have just 15 seconds, chris. chris: legal is something we have taken seriously from the very beginning.

a very old industry for us. it is important to make sure we are in compliance. emily: we are going to enjoy our feast now. ♪ >> got a pet?

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