In 30 minutes.
"bloomberg west" is next.
? from peer three in san francisco, welcome to the early edition of bloomberg west.
Where we cover the global technology and media companies shaping our world.
At alibaba tops cyber monday sales.
And apple puts the new ipad mini with the rest of its plan today without advertising, so what is behind this unusual watch.
And hulu is doubling down -- can the wrong man be behind a house of cards?
But first, to the lead.
The chinese e-commerce comment --ebay shattered . the singles day is up from 80%. consider this, 5.7 5 billion is more than 187% than the last.
It was greater than the beginning of the year's worth of sales.
This is in one day.
This comes as the online marketplace moves towards an ipo in the u.s. this could be bigger than facebook's offering last year.
The ali baba numbers, it is hard to get a comparison of how big this is.
This is bigger than all of cyber monday.
It is extraordinary.
It goes to the extra ordinary growth that china is seen in its retail sales generally speaking.
Primarily, just extraordinary growth year after year after year.
Aly baba, the largest marketplace which is really positioned to really take the lions.
-- aly babaalibaba, the largest marketplace.
Should we think of this as a chinese amazon.com or is it more than that?
It is almost like amazon, ebay has of has that marketplace aspect to it, and it has that size.
It is a hybrid between amazon and ebay.
We are starting to see some very serious growth in e-commerce.
We recently were in china visiting these companies.
The culture of retail sales really lends itself to e- commerce and a lot of e- commerce companies are finding a lot of success as they transition from bricks and mortar sales to e-commerce sales.
As broadband continues to expand, that goes well for e- commerce trends in general.
In what ways is fulfillment different in china?
Is much more challenging.
You see it with amazon.
What do you hear jeff bezos say every quarter?
Trying to get the fulfillment centers closer to the end consumer.
That has a negative impact on profits for amazon.
You see that at alibaba as well.
It is merchants on their exchange, there is simply a middleman between the buyers and sellers and alibaba takes a commission as well as some advertising revenue.
Not as a cerro the infrastructure that amazon needs.
I don't understand why alibaba is growing so much faster than online in china.
We are starting to see the share of retail sales for e- commerce actually went up 6.3% up from four point three percent.
Approximately a 50% increase year to year.
That shift from traditional bricks and mortars to e- commerce is expected to continue.
We look at some of the forecast out there for the next decade at least.
As the leading player there, aly baba is positioned.
They are benefiting from the secular trends in retail.
I will be keeping a lot of attention on this as they get closer to the ipo and the u.s. is focused on this company.
What do the numbers mean for the ipo?
Well, clearly it is a good timing for aly baba in the sense that it raises the awareness and the overall growth.
From that perspective, it poses well for alibaba.
For alibaba, one of the challenges to raising capital in the u.s.. the name is not as well-known as some of the other consumer internet names such as google, twitter.
There will be an education aspect of that.
In investor in the u.s. and in other parts of the world are very used to and know very well the amazon and ebay story.
It is a question of trying to extrapolate those metrics and dynamics to the overall profile which has obviously expanded dramatically.
From a market perspective, i will focus in on the business and on the markets but i think it is interesting because of the other relationship, they don't need an ipo, they need to raise a lot of cash here to pay out yahoo!. i wonder if the size of that ipo will put more risk in a facebook problem because there's so much more volume, so many more shares.
Twitter got a lot of backslapping for not screwing up but it was a tiny comparison to facebook.
This might be on the scale of the buddy 10 billion dollar deal.
Valuations range from 120 billion to 190 million in the marketplace.
You think about the facebook ipo and what went wrong.
There was plenty of blame to go around.
One of the issues was dramatically increasing the size of the deal him and not just the range.
The number of shares and the number of insider shares coming into the market.
That was coming in the last 28- 40 eight hours.
The market had a hard time digesting that deal.
A smaller deal, no insider sales.
Indeed it did.
Thank you very much.
As we mentioned, alibaba working towards the ipo.
The company is weighing the listing as they are faced in facing listing troubles in hong kong.
Revenues have jumped 60% last quarter.
Owns a stake in the chinese e-commerce giant.
For more on that, let's bring in our reporter who covers ipo's for bloomberg news.
Aly babaalibaba is probably the biggest thing on the ipo world.
Every bank is looking at it.
Every bank is clamoring to take a part in this deal.
As of yesterday, they have not picked any underwriters.
There is still a lot of moving parts up in the air but everyone is anticipating a big amount of hype surrounding this deal.
The one day of sales, i'm wondering if we are looking at this where they are thinking about it or they are publicizing it more.
It does not hurt.
The $6 billion number for one day of sales is tremendous.
It was captured in all of the major newspapers in the u.s. and around the world.
It is something that companies often do.
They like to tout their big successes going into an ipo.
They make strategic acquisitions, gearing up towards becoming a public company with a lot more scrutiny.
Why list in the u.s. at all?
Why not the hong kong or stains?
Is comes down to a duel class share structure.
Alibaba would like to maintain more control of things like nominating our directors.
So, the partnership which consists of the founders as well as some senior employees want to pursue a dual cost structure.
His is only possible in the u.s.. this is not something you can do in hong kong.
-- this is only possible in the u.s. they could possibly have both sides agree on something.
Now, they are leaning potentially towards listing here although no changes have been made yet.
I'm wondering how much the tax issues are hanging over this deal, at least certainly slowing it down.
Is there a sense that they have figured out the answer?
Ownership part is interesting.
It has a role in the timing of the ipo because they don't need this for general working capital purposes.
They need this to pay aly baba back.
The ducks are quacking.
The market is certainly looking for new ipo's. extraordinary.
But thank you.
Apple's newest ipad mini is now available for pre-order.
We did not know the release date was coming.
? this is "bloomberg west" on bloomberg television and streaming on your phone, tablet, and at bloomberg.com.
Liberty global is in talks with intel on acquiring intel's tv service wes is not even exist yet.
Liberty global would use the system outside of the u.s. they already operate systems in europe.
Verizon was also in talks to buy this nascent intel tv project.
The apple's ipad mini is being sold without a launch date.
Usually, they launch their new products with lots of fanfare.
Why the quiet launch?
Jon erlichman in los angeles.
And john, what is up with this?
We were covering the ipad announcement, the ipad air went on sale november 1. apple had not provided specifics on the launch of the many.
Brian white covers apple for kant or fitzgerald.
He calls this stealth.
-- ryan white covers apple for cantor fitzgerald.
Were you surprised by the way the that apple made the announcement?
It was a big surprise.
They generally have a pre-order time.
Generally they will let you know a few days in advance.
We went docilely got nothing.
You put out a research note.
Supply might be at the heart of this.
What are you talking about?
What issues might apple be dealing with?
One of the things that we talked about was issues with the display.
I think this has been a little bit of a challenge with the retina display from a which is the big new feature on the ipad mini.
So, just being able to get enough displays made in time to satisfy the demand?
This is a lot more advanced than other displays they have used.
Remember when they went to intel with the iphone 5? it was kind of a similar issue.
When you changed the technology of a display, there can be issues.
This is a different form factor that they haven't used.
It is a little different technology.
There are a lot of new apple devices on sale heading into the holidays.
This ipad mini.
The ipad air.
How do you think that the demand for the ipad mini compares to the other devices that apple will be pushing this holiday season?
I think that this is part two of many mania.
It is getting ready to take off.
The problem is that they cannot meet the demand.
I think that that is what this launch is all about.
Think they want people to still be able to walk into a store say november 20, 21st, 22nd in that timeframe when they are available at stores and get one.
They don't want to sell out ahead of time.
I think demand will be strong, i just don't think that supply will be there.
Any numbers that we can she want?
What do you think apple is capable of selling given what might be supply issues and how might that compare to what they might be capable of selling if this wasn't an issue?
We have a total ipad estimate of 24.5 million.
If there were no supply issues him a they could probably pretty easily do a high single million type number.
I think it will be very difficult.
We have modeled about half that.
You are talking about the first quarter, the fiscal first quarter?
We modeled a lot less than what we really think because this is the supply issue.
This will be very exciting and there will be a lot of people interested in getting this.
If you want one, you would better go out and get it.
You pointed out that they're rolling this out in a lot of markets including china and japan.
If there are supply issues, why not stagger the release?
What they did do with today's pre-order is only at about 62% of the countries.
It is not as big as the ipad air, where i am sure they have the supply and availability, they would launch it at the same type of caterer that they did the ipad air.
Brian, thanks a lot.
If you sometimes dream of a place with no cell phones and other technology, a small town in west virginia could be the ticket for you.
We will take you to the quietest town in america next.
You can also watch this with -- streaming on your tablet and phone.
? this is the early edition of "bloomberg west." i am cory johnson.
You can catch us on our later time, 3 p.m. on the east coast, 6 p.m. back east.
Americans use two .3 trillion minutes last year on their cell phones.
There is a place in america where cell phones cannot be found.
A small west virginia town called greenbank.
Our correspondent has more on america's quietest town.
Over 300 26 million wireless subscribers blanketed the u.s. with cell phone noise.
There is at least one oasis of silence in green bank, west virginia.
The 143 residents live in a 13,000 square foot area called the national radio quiet zone to protect the research done here at the radio astronomy facility.
It's reflecting surface is 2.3 acres.
It observes the birth and death of stars, the sugars, the proteins, the building blocks of life.
Its data is analyzed worldwide.
You are like the nsa of science.
I guess that is a way of putting it.
We are the collection agency for universal radiation.
Why the quiet zone?
The energy that it normally receives is equivalent to the energy given off by a single snowflake.
With no cell service and only white noise on the radio, living in greenbank is like traveling back in time.
Your life is a little slower.
The general store sells everything from plumbing supplies to beer.
If you need to call home, use the payphone a couple of miles down the road.
In case you are wondering, it costs $.50 to make a local call these days.
They have someone to enforce the no frequencies law around town.
He patrols the community for violators with his high-tech frequency hunter.
They are popping up already.
Must comply but there is some rebellion.
Some people used to have a wi-fi system set up that was named "screw you, private property." they drive my crazy.
I don't know any other place i would live other than here.
We were all sitting around the table, eating.
I said, listen.
Everybody looked around.
I don't hear nothing.
I said, that is what i like about this.
I love that.
I want to know if he actually had to wire his microphone for those shoots.
It is 26 after the hour which means it time for "on the markets." julie hyman is in new york.
Has anyone seen him since that?
No, he is gone.
He is locked up somewhere.
We do see declines across the board here.
There is some continue to talk about tapering.
Some said officials raising the possibility of tapering.
In terms of individual stocks that we are watching today, rackspace hosting is one of them.
The shares fall in the most since may after they reported third-quarter earnings that missed estimates.
They also forecast higher capital spending.
We will have more capital markets in 30 minutes.
This is the early edition of "bloomberg west." i am cory johnson.
You can find us at our later time, three of p.m. west coast, 6:00 east coast.
A settlement will clear the way for a merger to create the world's largest airline.
They must give up slots in new york and washington.
The justice department has sued saying the merger would hurt consumers.
More rain is hampering efforts to get supplies to the victims of last week's massive typhoon.
A number of airports have reopened.
Roads have washed away.
The confirmed death toll stands at under 1800 with thousands more displaced.
A new skyscraper has been ruled the tallest building in the u.s.. the council of tall buildings and urban habitat says the 400 foot spire can be included in the building's height.
The building will have a total height of 1076 feet.
It is set to open in january.
Streaming services are making big bets on original shows and hulu is no exception.
They rolled out their latest original series.
Jon erlichman back now in los angeles.
It sounds like the title of a show for us.
This is about two office workers caught up in a deadly criminal conspiracy.
Some call it a cross between 24 and "the odd couple." take a listen about the new show.
It came about as a result of our relationship with the bbc.
We have been an issue with successful licensing their shows.
We decided we wanted to get involved in an earlier stage.
We were really enthusiastic about activity when asked us to coproduce.
This is a fun interesting series.
You have done a lot of green lighting of different types of shows.
I think of "the awesome" and "a day in the life." when you are picking your shows, what are you looking for?
What's we are looking for a distinct creative voice.
All of those you just mentioned, they are trying to do something new in the television space that is smart and crosses different genres.
We are looking for that show that will have a distinctive flavor and personality that will thrive.
Do you feel like comedy is really where hulu feels like it is in its comfort zone?
There is definitely a comedy theme with hulu original shows.
It is still early and our evolution and we have focused on comedy because there is a manageable scope and scale in production.
We look to broaden the scope into dramas and other types of programming.
We have been lucky with comedies from other content partners.
The ambition going forward will be more on these and more other traumas.
There is a headline a few months ago about they possibly rolled up in the neighborhood of 40 originals over two years.
Does that make you say, we have a lot of originals to find or is it the opposite that you have a lot of good shows and it can be hard to find a home for them.
We talk about originals broadly.
That includes shows that we license including those that we do in-house.
We are very enthusiastic about the possibility of bringing a greater variety of television to our audience and to grow our audience by offering them more shows.
The ambition is to figure out what we can do to build the best personality possible and service our audiences with very tailored content that feels really unique and it feels like a destination for them.
I think it is an ambitious goal but it is able to be achieved and really energizes the company overall.
Hulu plus subscribers get all six episodes right away.
Is the goal to make as many originals as possible available for the bandaged viewing?
Thus far, we have customized the release pattern with the show.
This is optimize.
The plotting is heavily serialized.
The for cicadas derek taylor can be made -- the sophisticated storyteller can be made into a drama.
This is where you fall in love with the characters and you want to stop watching.
I think we try to do this in a way that optimizes the show.
Still ahead, google glass hopes to transform itself, not just on your facebook.
You can watch a streaming on your tablet, your phone.
This is "bloomberg west." i am cory johnson.
T-mobile u.s. will be selling 66 million shares in the secondary offering.
The company says it will use the proceeds, they might buy more wireless airwaves.
You're gaining spectrum this is a crucial task.
The google is adding features to it's google glass device.
Users can have streaming music through their google play app.
-- google is adding features to its google glass device.
Google glass is interesting.
These guys clearly see it as a gateway to all of the products they offer.
Right now when you have those, you will see a bunch of options.
This is a whole new line.
You can have music as an option, make a phone call, e-mail message, whatever.
This is a pretty important step.
This is google being pretty serious.
I feel like these offerings are not disparate.
Is this working?
Itunes rules the world right now.
This is glass.
This would feature some other service first.
Is there a sense that with google -- i don't care about people, as you know.
I don't care if consumers will use a product, i'm more interested in a business.
This could gain more traction.
People are thinking about it.
It is interesting thing.
We had a big rollout here the past few years.
Now it is the proven time.
Glasses get a lot more press.
At a can only help.
Would the consumer have to have google headphones.
I am picturing like dr.
If you buy google glass when it becomes available, it will be google this, google that.
You need to have all of the services at least for the time being if you're going to buy glass.
This is a google product.
Has this gone from a side project to essential part of the strategy to unify the consumer base?
That is not clear yet.
We are so early in the stage here.
Glass has got to prove itself.
That said, is that fully one of those things that google can use to say, hey we are a cool company.
Look at all of the cool stuff that we can sell now.
I don't think it essential but it is definitely a key part.
You talk to wall street analysts.
When they look at this business, all of this does not matter.
What did analysts say?
I think there is some excitement that they are doing interesting things.
Just so rarely.
This is tiny.
Thank you very much.
Apple is back in court with sam's son over billion-dollar patent ruling.
We will talk more about that.
You can find a streaming on your tablet, your phone, and at bloomberg.com.
? this is bloomberg west streaming on your tablet, phone, and at bloomberg.com.
Jury selection begins today.
The trial stems from the verdict that was won by apple last year.
The judge said that of the original award was flawed.
They counted the dates wrong.
It will be asked to figure out exactly how much samsung has to pay for patent infringement.
It is possible that they could end up getting a lot more than the original verdict.
Box media just went shopping they are already the parents of sb nation, they have no acquired a trio size that includes a real estate sought betty liu sat down with the chairman and ceo to ask about these recent acquisitions and how video is a digital core.
Flex video is big and it will be bigger.
One of the reasons we are excited about this is the opportunity to invest more.
The team is talented but they bootstrapped it.
They did not take big venture capital financing.
They are great entrepreneurs and we have the opportunity to have more resources.
We will be investing it absolutely and we will be doing this primarily in video.
This is original video.
Give me an example.
What will that look like?
Homes, food, it is so visual.
There are so many great themes.
You can envision shows about homes, shows about architecture, shows about great restaurants, great food trends that we can see.
If television and magazines are any example, this will work in digital.
Is that because you were trying to get the advertising dollars and you're trying to get the bigger dollars that are right now in traditional television and cable.
You're trying to bring this on to the web?
Right now, there is 150 billion dollars of brand building advertising.
The big bands, you want to create awareness, image, they need to move to digital because their audiences are on digital yet they need to be associated with quality content editorial.
We produce it efficiently and for a younger generation and we are a know that advertisers are looking for that falls down you sound like tim armstrong.
You actually worked at aol?
I did for many years.
Is that the philosophy that you learned as well?
He believes that it is digital video, he is trying to get a cut of the advertising dollars.
He said, video is where it's at.
We both believe in online videos growth.
I believe also in digital as a branding medium.
We tend to think about tiny little ads that might not be that effective.
He think about content that is cheap and ubiquitous online.
If we use technology and digital talent to grow big audiences that brand advertisers will come.
We are working on making the ads good?
So, original content to get premium ads.
Are you as big on the programmatic and buying that tim is big on?
We believe that technology plays a role in advertising, but it is not just about a marketplace.
Brand advertisers want something new, something that only they can get with us.
They look to us for custom solutions.
We use technology to help make that more efficient, make it more robust.
Right now it is not that good by and large.
We believe by using data, using technology, using human creativity emma we can make it better.
You have properties that range everything from technology to sports, now shopping, real estate, so, how are you going to meld all of them together?
Are you going to try?
We have a technology platform, it enables us to launch these so that we can run them very efficiently and in a high-quality way.
We have a sales office.
We believe in being vertical eyes.
We are not a portal and we are proud of that.
In order to do what you do, you have to focus.
We are not a niche player.
We want to go after big consumer categories.
You are backed by some pretty big venture capital firms.
The war in the street is that in silicon valley, pure content companies are not that popular to invest in and perhaps that is why you could make a move like what you did which is you're able to buy these websites.
I think people shied away from content baby because they don't understand it.
Does it scale.
Sometimes doesn't. we use technology to unleash creativity on the editorial front.
Interesting stuff, james with betty liu.
? welcome back.
I am cory johnson.
Coming up on the late addition of "bloomberg west", ipad now available for shipping.
What happened to the fanfare that usually accompanies a apple launch?
We will talk about the change in the strategy and what it means.
Let's take a look at where stocks are trading.
We have the clients.
It looks like the s&p will be down 4/10 of one percent.
People are trying to handicap what the fed will do.
We have heard from several officials talking about the possibility of it happening in the coming months.
As far as stocks we are watching, first up is u.s. airways that recent agreement the justice department clearing the way for their merger with american airlines which would create the world's largest carrier.
You're watching jetblue and southwest airlines.
Both airlines told regulators they want to acquire -- the world's second-largest economy is outlining plans to become the worlds biggest by 2020. . chinese leaders have wrapped up a summit charged with planning major reforms.
Our economics editor has the real deal on what that may mean for the rest of the world.
Going into this, there was a lot of talk about the outcome of this meeting, what effect it might have on markets around the globe.
It happened today and we have not seen much reaction elsewhere.
We are not seen a whole lot yet because they are just giving us the outline.
We are waiting to see what the details will be and how they will flesh this out.
There was one line that really matters.
They said, let the marketplace the decisive role in allocating resources.
That is a change from what they said before.
If they follow through with that, it could mean any number of things for western investors.
The chinese government is just a tent below the peg in its history.
They're letting the currency rise faster which has major implications for trades around the world.
They are talking about loosening the control of the state owned enterprises.
There will still be the major feature of the chinese economy.
They will bring more of them to market, try to bring more accurate international accounting to those systems, allow more people to open service industry businesses or get into the banking system which matters a lot.
We are going to see a better legal system, they say, all of which is designed to improve investment in china.
How realistic is it that all of these goals will happen?
This text has been automatically generated. It may not be 100% accurate.