Change the shopping experience. How hard is it to buy the bitcoin and how hard is it to spend it . We put the Digital Currency to the test in the series were calling the 12 days of the point. Calling on the white house and congress to reform practices. The open letter from apple, google, facebook and linkedin comes after documents leaked from Edward Snowden showing the government had gained access to tech company servers. Write they write cory johnson in new york in joins us with more. What exactly does this mean. Geo the lyrical issues, issues regarding other countries and leaders. There is what we do not know yet, the notion that he has so much more to release about this, that the government has not told us yet. I think fundamentally this is about a business issue come a u. S. Companies trying to compete in the global i. T. Market. There have been estimates about what the cost could be. They are only guesses. Some companies have tried to look at this and figure this out. The Company Actually looked at this. They found 71 of the people polled said u. S. Is a Top Cloud Services provider but found evidence that European Companies are targeting u. S. Companies trying to gain market share. Going forward, they have a multibilliondollar cost on this that is an enormous number that they think as the business grows , and this is indeed a growing business, as it grows, more and more local businesses will to stew host cloud theyd caused theyd cloudbased offering. How believable is that estimate . It is just a guess. They suggested people are suggesting changing to the clouds. All the sudden you will look at 180 billion cost. The notion that u. S. Companies by aning hurt i this nsa program is a great concern to the u. S. Economy when you have politicians talking about how they want more of the economy to look at the big tech company. The Tech Companies think this is ability to grow businesses internationally. How do you think the white house will respond to this . Is an open question. This white house has really been dragging their heels on concerns that people have raised about national security. Trying to build out the infrastructure. Whether businesses have more sway in the white house, traditionally has always been the case. We will see if these companies forget the industry. Some of the Biggest Companies in the world are signing these. Those companies, one would imagine, would have a lot of swipe. Cory johnson, editorat large, thank you. I want to bring in michelle she focuses one cyber and Government Transparency issues like the Foreign Surveillance act. She joins us from washington, d. C. It a little ironic given that many of the Technology Companies have been cooperating . Is this just political posturing . We have been debating privacy since 9 11 nine years ago. This is really the first time they are weighing in and saying the government has gone too far. Except for the fact that they have a lot braided if the government in certain cases, right . Right. I think what prompted the new movement is the recent revelation that they are not just serving the companies with court orders that hacking into the system overseas where the laws do not apply. It might have been what pushed them over the edge to get involved. The people who run the companies are powerful. They account for a large part of the United States economy. How is the government likely to respond . This as a whole new voice to the privacy debate. By this he advocates and members of congress have been taken taking a principled stake. This is really a game changer. President is expecting a report from the pointed review rupe just this week. President obama said he is trying to get the nsa to impose selfrestraint. Some will be proposing selfrestraint on the nsa. And to initiate reforms that can get people more confidence. I want everyone to be clear, people of the nsa generally are looking out for the safety of the american people. They are not interested in reading your emails or text messages. President obama speaking on hardball. What kind of reforms eu imagine the president is talking about he phrases the way it as selfrestraint will not be enough. The nsa artie has privacy rules that it violates on a regular basis. It cannot be trusted to police itself. Thing that wetant hope will be endorsed is fundamentally changing the statute, the rules so they can no longer collect information on Everyday Americans and innocent people are not who are not suspected of doing anything wrong. Government and nsa truly protect us is everything its is transparent . No one is calling for them to name terrorist targets or explain who they are spying on. Explainst asking they the very different parameters. Release the underpinnings. It is crazy in the United States we have a secret court making interpretations about the constitution. There is a lot of information we can make public that will not tip off the bad guys but allow us to have an informed bait for the First Time Since 9 11. Debate since 9 11. We would like to see the Companies Fight back against the court orders and challenge them. We would also like to see them get involved in the legislative debate. I think that is what is so important about todays release. They are finally in endorsing the idea that the government should not be scooping up the information. We very much look forward to working with them to take them to the next step. Thank you so much. Counsel at the american liberties union. Thank you for joining us. Apple has just rolled out an in shoppersation to track and physical stores. We will tell you more about this next. You can also watch us on your tablet, your phone, and streaming at bloomberg. Com. This is bloomberg west. Im emily chang. Apple has launched a new transmitting Service Called ibeacon. It helps to track customers. Now we are going to be looking at our phones even more, right . The new reality. Are one ofle stores the big reasons for success. Relatively simple in the look of powered by technology. So the idea is to make it more efficient for the consumer and make it more efficient for apple. An elaborate video display in the store to tell you about a new product can be costly. Not always as effective as the retailer would like. A lot of times a looping video not speaking directly to you. That is the reasoning behind the reasoning. Retailers that sell apple products feel pressured that they have to offer something similar . I think retailers, if they can generate more revenue are always interested in these kinds of things. Think about the potential to boost samestore sales in a way that is different than sending out circulars that can be quite costly for them. Is would expect that this something that other retailers will watch very closely. I think one question is which device maker, Software Maker are you most aligned with . Players like dust i best buy are selling all kinds of gear in their stores. Do they have two have to offer something more here towards andrew android . I think that is the question for retailers more broadly speaking. Jon erlichman, thank you. Square has launched a new credit card reader. Additional Payment Company has unveiled a thinner and more accurate device. The former head of the apple behind theivision is new design, 45 thinner than the previous reader. For more, i want to bring in the technology editor, are really be. Goal is to make it center, lighter, faster and better. They now have a lot of the parts in this particular reader. Is this a step toward something even bigger. As far as design goes, it is signifying it will need to stay on the cutting edge and it will. At the end of the day, it is a software company. It is all about transactions. They have to make them as seamless as possible. The hardware help you to get there. He want it to be nice. So that is crucial. Nice. Want it to be me int has happened to taxis a few times. Anything square can do to reduce the friction between merchant and consumer will be a benefit. What about the road ahead going public . Just told toi take twitter public. Is it coming soon . Theyre talking about it public publicly yet. If you look at the valuation, whether it is 3. 5 billion or 5 billion depending on what report you believe, you cannot get to the valuation and expect investors to put in money at that price. There are not real other ways to get return on the capital. Square is in a hyper competitive environment where they need to continue to get there. Holiday shopping season. A busy time. What kind of growth can we expect . It will be interesting to see the numbers. You have seen a lot of competitors come into the space coming in to help merchants. Paypal has its own reader. Bloomberg news editor, thank you for weighing in. Could today be an even bigger day than last week cyber monday. That is just ahead. This is the Early Edition of bloomberg west. As wellknown as black friday or cyber monday, but today is green monday. Traditionally the Biggest Online shopping day of the year. The second monday in december, the day shoppers rush to finish online gift orders i the holidays. Cory johnson is back to explain. Only you would be talking about finishing up holiday shopping. I am somewhere about zero percent like a lot of people. 75 done. Tracking this on a spreadsheet . I want to get my free shipping. This they have historically been the biggest day for online shopping. Monday, the second monday after december shows the strength and change in nature of commerce every year. Director the managing vocus is focuses on the consumer. I thought it would be great to have you look at what we have learned at this year in particular. Is a year of mobile. 25 of online sales right now and growing. When i say mobile, i mean tablets and phones. Year there is a headline. This is the biggest ecommerce cyber monday ever. But thee it is bigger, growth rates have been slowing, particularly for the monday after thanksgiving am an quite a bit for the green monday. What do you make of the slow in growth rate . Online has slowed a little bit, but mobile has not slowed. ,f you look at tablets especially tablet usage has shot up. Mobile allows you to shop better. How so . Mobile has a choice. Mobile, because of a constrained screen size and better data, you people able to get exactly the choice and Conversion Rates are much better. You say the Ecommerce Companies are doing a better job of differentiating the signal to give the consumer a clear choice of what they are about to buy . Yes. Mobile you can use location data, and timing to make sure you offer the person the right choice at the right time. The call this the right now a economy. We call this the right now economy. Customers usually screw this up. They do not get the local behavior quite right. Lets break. Right. Outle are quickly figuring how to take full advantage of it. Look at companies in the portfolio. They figure out how to make the mobile experience so good that you will find what you want to buy in by it. That is the Conversion Rates on mobile. I noticed on the amazon site, the mobile experience is quite different. About the talked years they have done things to encourage more like bruce. Use a simple is better than offering more choices . Right. Look at the most successful things on the mobile commerce. Very simple. They give you the right choices. Because of that, you convert touch better. True of the Amazon Mobile app, too. Th i am not into on in dep about fab. But i see rollout stories. Could you lay out how this is successful, because it is different from what i have been reading. Every company goes through evolutions and changes. What they have done really well is focused on design and all sorts of best quality design on the internet. People are by yang. Buying. People like to focus on the bad news. It is growing and has done a great job. I am one of those people who like to focus on the bad news. Kind of my job. The holidayw season, focus on the good news. My soul is just start. Look at what is going on in the markets. Just dark. Getting you caught up on where stocks are trading. Second day in a row of the rally. Up nearly. 4 . Taking a look at celgene. Shares are rising along with other bio surgical companies are news they may have found a treatment for leukemia that does not include chemotherapy. They presented the research at a medical conference in new orleans this weekend. More on this in just 30 minutes. This is the Early Edition of bloomberg west. Im emily chang. Bloomberg top headlines. Riot police out in full force in ukraines capital. Raided the headquarters of an Opposition Party and toward down barricades put up i. E. Antigovernment protesters. They want the president to resign after he rejected a trade hell. And American Airlines have officially completed their merger, creating the Worlds Largest airline out called American Airlines route. Over the coming months, the companies will work on integrating networks, frequent flyer programs, reservation systems and more. A gold medal won by jesse erwin has sold for more than 1. 4 million at auction. That is a record highs for a piece of memorabilia. Educationallans and tour and other items he owns. The Virtual Currency bitcoin has had a wild ride lately. All the bitcoin headlines led us to ask what can you do . Cory johnson is in new york with more. All of the excitement surrounding bitcoin. 12 days of bitcoin being celebrated by matt miller. 12 days of christmas and 12 days of bitcoin. Matt miller is sitting next to me. Bitcoin this a morning after some difficulty. My experience, the difficulty arises from my unwillingness to give details to the internet site. Some of them that i dealt with are very reputable and big internet sites. Very reputable. Wilson. Heard of fred so he backs it. So i have not heard of it either. Did i want to give them my Social Security number . Bank details . No. They wanted Social Security, bank routing information. They wanted my credit card, and they only wanted a visa. To get an order account running instantly. Want to do that either. There are other routes to go. Bitcoin is another one. So i kept running up against little problems. You meet another guy or gal and agree to it strange. Every time that happened, they theed more money than actual advertised price. This morning i got the reporter from bloomberg who is an expert. Bitcoinse one of his at a price that he agreed upon last night. 800. I called him up last night. Need a bitcoin. I will give you 800 in cash if you give me one. 800 in cash. He gave me a bitcoin. Fortunately, by the time we made the transaction this morning, with 876. It is a fluctuating currency. I have breaking news about the 800. I sold 20 of them. Check mywhile longer a pocket. He messaged me shortly after. Day,i found throughout the i was tweeting about it for a while. I am not internet savvy. This kid does not know what he is talking about. The point is i got on there and started talking to a lot of people in reading more about it. What they really know are talking about. I think there are two different kinds of communities. There are people like you and me that are worried about the volatility and investment value and if it is a stable currency. Then there are people that are there for the community of it. It is like a dead show. Every time i talk to these people and they explained what they are doing. N outer edge i am on the inner circle right now. They got involved at a dollar or 10 or 20. What is the reward . What will you use the bitcoin for . What i will do first off is i am buying tons of stuff. I bought pizza for the office. I bought it with a tiny piece. About 30. Ut to i bought the repeats us from pizza for coins. There are other ways you can buy stuff. Three pizzas for this whole place . You did not get one . It was delicious. After i bought the pizzas i had one bitcoin. Longe have been all day sending me, and i shared my code , which i will walk close to the camera and show everyone. I shared the code. They will not show it . I can stay seated. They consume in. After i bought the pizzas, so many all sent in tips, which was disliked to dollars or five wasars that my bitcoin replenished. I have bought three pieces pizzas and i have replenished my bitcoin. What i am trying to say is this is the kind of thing people in my community do. They pass this around. They pay it forward, if you will. The notion that one we sit here and look at the degree of safety and return is being used more of a community of people that are sharing tom and perhaps participating because of the success of the community but not just investment. One person described it to me as occupy wall street for people that do not hate money. Counterculture that is pretty cool. Things. O a number of the guys have given me a number of ideas. They are all in two different stuff. Some of them are into precious metals. We have had the big story about china and how you cannot use it. Food. Least chinese interesting stuff. Thank you. More on bitcoin as the countdown we count on the mary 12 days of bitcoin. Please tell mapped we would like some pizza. Thank you. We will be right back. This is the Early Edition of bloomberg west. Im emily chang. Autonomous data machine is a security robot designed to predict and prevent crime. It can see, hear, feel and smell by using a combination of her while usingytics sensors to gather onsite data. It was founded following the newtown connecticut shooting that left 28 dead with the goal to utilize technology to cut crime and half. Joining me to talk more about it, the night scope cofounder and ceo. Crime with robots. How do they work . These are data machines. They roam around 24 7. They can see, feel, hear, and smell. Thermal recognition, gesture academician. It can run license plates and look at doing a realtime map of an area. Earsan have more eyes and for private security guards and Law Enforcement to do the job that much more effec