A record low. To the weakest luxury good market for six years. Less than 1 of their revenue comes from online. Lets take a look at the markets. Hong kong and china currently closed for lunch. Here is how they were trading in morning session. Hang seng index nabbing the longest losing streak we have seen in decades. This is a picture in singapore, tokyo, and mumbai, asian stocks rebounding as fed day arrives. Well be back in half an hour. Time now for bloomberg west. Emily coming up, the governments new push to monitor social media. Terror threats shut down schools in los angeles. Apples areas 51 revealed will go live in taiwan for a look at the figure Production Lab. Slumping oil prices are casting a cloud on solar power companies. We will sit down with the ceo of sunpower to look at the industry profit forecast. First, to our lead. I want to talk about what is going on in washington. Joining us now, bill, a senior fellow on american broncos where he works on National Security issues. He also worked at the cia and the pentagon and was deputy staff director for john kerry at the department of state. Also with us is derek who covers congress and capitol hill. Whats going on right now working on the plant is green working on a plan to scrutinize the social media post as part of the visa application process. Take a listen to josh earnest in todays press briefing. I guess we dont have that but, this move is part of a new focus on sites like facebook and twitter after the deadly shooting. At the same time, we have an influential House Committee preparing legislation to tighten loopholes in the visa process. An overhaul of the previous visa that one of the San Bernardino you shooters used. Starting with you derek, break down the potential measures for us and what they really mean. Derek one of the things that has come under intense criticism is that there is a policy prohibiting looking at social media and apparently one of the San Bernardino shooters had made several posts on social media that people say, had they been flagged or had people notice, maybe they could have kept her out of the country. Maybe that could have stopped a couple of things. This will be an intense focus from republicans on capitol hill as well as from democrats. At least two pieces of legislation that we know of are in the works. One from the house and one from senator john mccain. They are expected to demand that Homeland Security monitor social media posts. A group of democrats send a similar request today. The pressure on this is very much intensifying in the last 48 hours. Emily what is the current policy of the department of Homeland Security when it comes to social media . As i understand it, they are not allowed to monitor social media in certain cases . Bill this is under review right now. The general policy is not to. There have been some questions about Civil Liberties and there have been some questions about feasibility. One of the big things that is being brought up is that how would you do this . In this case, some of the posts were restricted in terms of who could view them. There may have been posts with some sort of pseudonym. There is a real question about if im on facebook or if the visa recruiter is not one of my friends, how will he see it . Will they get my direct messages . What does this look like and what are the powers that we are offering and that is one of the things that people are heavily looking at now. Emily as somebody used to work of the cia and pentagon, what is your take . Bill as to how it is being amended, we would have to look at the proposals. The specifics of the proposals. Lets take a step back. With dhs, certain officials are allowed to have access to social media. The three pilot programs that have been going on at dhs for the last year to sort of figure out a way to make this issue has to do with this issue anymore practical and realistic manner. The other thing that is important to mention josh earnest made a statement yesterday saying that the president has ordered both the department, and security and the department of state to look at potential security gaps. I think that is an important and effective first step. Obviously, we want to get as much information as they can to keep ourselves more secure and safe. Emily we do have that quote from josh earnest. I want you guys to take a listen. We will leave it to the experts to determine the best way to strengthen the security of our screening programs. That is, after all, the president s top priority. They will be able to best us as best ss the optimal way to incorporate the review of social media postings. Emily derek, are we talking about public post . As their public, why wouldnt the department of Homeland Security take a look at those . Derek certainly, public post will be one of the things that are under review in this. Yes, it makes a lot of sense on the surface, one of the things that will have to come out over the next couple of weeks to months is what the review looks like. What are the guidelines that get put as the white house is going ever Homeland Security, where do you draw that line . This is one of the things that congress is very interested in. One of the things that will be interesting is that Homeland Security may be able to get a little bit of time to do this before congress or the pressures them. We have indications that language on this may not be in the spending bill that will be coming out. There are talks that they would be. That pushes us into around january at the very earliest as to when something to get done. The white house and the Administration May have a little bit of time to figure that out. Emily bill, when authorities need cooperation from Companies Like facebook and twitter to make this work . Bill i would think you would want that cooperation. Let me take another step back. A good way to approach this would be, lets identify the problem. What is the problem that we had . What are the specifics . What are the solutions are possible solutions that we could implement to address the problem . What are the realistic prospects for implementation of those solutions . I think all three of those are important to consider when moving forward and taking a hard look at this issue. I say that because i think we would need to work with the private sector. We would also need to work with the agencies to figure out what works. What actually makes us safer. What can we actually implement as opposed to just sort of moving forward on something that actually does not necessarily make us safer. Im not suggesting for one moment that that is what congress has in mind. This has to be a partnership between congress and the administration. The agencies who are charged with implementing these basel implementing these proposals and the private sector would have to be part of this process. If they would be part of the monitor conversation we need to have to make ourselves safer. Emily bill danvers, senior fellow at american practice. Thank you both. Coming up, we all of a good bargain. Why have shoppers fallen out of love with flash sale websites like gilt . Emily lets get more on our top story, the is department Homeland Security is working i plan to screen i social media posts as part of its fees application process. This move is part of a new process focusing on it they spoke and twitter after San Bernardino. Joining me as representative trey gowdy, chairman of immigration and and another subcommittee. What are the prospects of getting these kinds of things enacted anytime soon . When will congress be able to act on this . It does not require congress to act. Dhs could check social media starting yesterday if they wanted to. The only Reason Congress would act is if we cannot convince jeh johnson who is the head of the department of Homeland Security that there is a legal basis for checking social media now. They could do it starting yesterday if they wanted to. Emily what is your position on social Media Monitoring . My position is in three separate categories. There are u. S. Citizens that are in the United States. There are noncitizens were not in the u. S. And if you are seeking to emigrate into the u. S. , almost by no finishing you are a noncitizen who is not in the United States. Before the memo does not apply to you. There is no expectation of privacy. The Fourth Amendment does not apply to noncitizens who are not here. The notion that you are worried about violating somebodys fourth mmn privacy right and they are not citizens and are not in the u. S. , you dont even need to go to law school to know how foolish that is. Emily what about this potential tightening of a loophole in the k1 visa process that gives entry to the fiancees of u. S. Citizens. I dont know that you need to tighten any loopholes as much as you need to do exactly what you are supposed to have done from the getgo. Lets look at the female terrorist in california. She applied, that is one level of scrutiny. There is an investigation. There is an in person or is supposed to be an in person interview at the consular facility in whatever country she is seeking to immigrate from. Then, once youre married, within 90 days, there is another interview as part of the green card process. That is three separate opportunities that we have to ask the right questions in the right way and did a proper investigation. There are no loopholes that need to be closed other than malfeasance and not doing what youre supposed to do. I was investigated more strenuously before i became the federal prosecutor fan this particular k1 visa applicants, despite her social media postings and despite the fact that she had been radicalized before she ever saw entry into the country. All i am simply asking is, use the tools that you have now and do your god. Your job. Emily youre working on a big spending bill needed to keep government open by friday and it looks like it does not contain restrictions on Syrian Refugees and other republican priorities is this something in the current form that you would vote for . Its probably going to have to have thes button on not just Syrian Refugees but the pods by 10 on respect to National Security. With the visa process to be able to support it. Keep in mind, the syrian refugee bill garnered the vetoproof majority in the house. Im not secondguessing speaker ryan, he has considerations that im not privy to. The fact that it got that big of a vote in the house of representatives suggest to me that it should be part of the omnibus. And if it is not, i will not be able to support it. Emily you mention speaker ryan. Obviously this is his first, big test. How do you think he has done . Do think that he has let the party down by failing to get some of these priorities in their . I dont. I think he is the best person that i can think of to be the speaker of the house. Having said that, it is a very difficult job which is why you see so few people raise their hands and volunteered to do it. He has to balance and way considerations that im not privy to. I know him really well. He is incredibly bright and incredibly principal. The fact that he negotiates a deal that i ultimately not able to write does not mean that he let anybody down or he failed to do his job. It just means that the people i work for would have rather seen a different deal. Paul ryan is uniquely wellsuited to be this bigger the house. Emily congressman trey gowdy, immigration and Border Security subcommittee chairman, thank you. Stock we are watching today, qualcomm, rejecting calls to split itself into. The chipmaker deciding to keep the licensing arms together after a strategic review. Ceo says the company is well positioned for the future. Our Business Model has enabled us to lead Important Technology transitions in the past. We are well positioned for success as the industry goes through further transitions including the convergence of wireless lan technologies as well as 5g. Emily shares of qualcomm has fallen 30 this year. Up later this hour, Science Fiction or fact . Apple opens a secret lab in taiwan. We go fly to taipei on what the company is up to. Emily a stock we are watching, yelp. Investors are in pain as shares sunk 10 today. After facebook started testing a product that directly compete with the Consumer Review site. The new facebook feature will send people to the toprated local businesses and arizona and their betting that it is likely to follow the opinions of your friends when it comes to choosing where to go. A look at potential gilt close to selling itself or a fraction of the 1. 1 billion valuation from 12,011. The ceo of saks fifth avenue is trying to buy gilt for a quarter of a billion dollars. It is not the only online retailer looking for a lifetime. Another sold to qvc. Fab. Com sold itself. A Home Furnishings site announced a plan to cut a quarter of its staff. Whats going on . Joining us is a senior analyst. I remember two years ago when i was looking at these sites for deals around the holidays and it did not occur to me to go there this year. What is really going on here . I think that what you are seeing is that over the years, these flash sale sites have really struggled to get a compelling supply of merchandise. They have really struggled to continue to grow. It is an expensive business to have a flash so business. It is basically an outlet store with a whole bunch of expensive, creative and merchandising costs. That is really what you see. They had a really tough time getting access to great supply. It was expensive to manage and run the business. That is why youre seeing a lot of the shakeout that you are seeing. Emily its interesting, it was said that even if someone buys gilt theyre still getting the short end of the stick . What is the argument . It was a nice argument. This is not something that Consumers Want anymore. Youre not going to the flash deal sites to shop for holidays. It is a problem that startups will continue running into. When you think about where they go next, you either have an exit or you build into a big institution. For some of these companies that are not able to find customers after that first burst, or not really able to build into the institution, youre probably going to continue to see some of these flash sales of the businesses where they are selling for a discount because theres nothing left for them to do. Emily it is interesting because we have also had discussions about how retailers, themselves, are struggling. I would think that people instead of going to these websites are going directly to retailers, the retailers are also not doing well. The discounts, especially this Holiday Season are so steep i cannot possibly imagine how they are turning a profit. Its not just an issue with retail season, this has been a chronic issue in retail for many years. It is that there is deflation, particularly in categories like apparel. As a test sector to make very much money. The idea of sales is very compelling. The issue is that all of these flash sale sites that we are dealing with have a ton of competition and the fact is if you are selling things for such a low price, you need to figure out a way to keep your expenses as low as possible. And to have really high production value. To figure out a way that your merchants can romance these very elite brands. That is a very tough that value proposition. That is ultimately what happens with these websites. There is another point. A lot of these internet businesses are supernovas in the beginning and that is often because of social networks where everybody who would be interested in the business learns about them all at once and they tried them all at once and investors mistake that for this longterm momentum when, in fact, all it is is your kind of compressing your entire into a sixmonth timeframe as opposed to a fiveyear timeframe which is what it may have taken in the past. Emily is there hope here or is this just a guy model and what exits are we going to see . For the companies there is hope, but the question continues to be, can you convince customers to come back to the website and when you look at them spending a lot of money to bring customers and, it is a thing that we are seeing over and over and startups spending money to make money. Yet, when the investors really want to see them get over that and run a sustainable business, with Profit Growth and growth on the bottom line, that is where well continue to have some problems. Yet seen it shakeout a little bit with the likes of some of the other ecommerce marketplaces like ansi at the etsy. There are not a lot of these Retail Companies that people are really paying attention to. You think about pinterest and there is still a question about what is the Business Model . Bottom line, these Companies Need to figure out how to make money and had to grow past the initial on boarding of customers and had to turn into a Business Model that sustains and is not just jesse at the start. Emily who do you think when . We talk about the companies were struggling, who is doing retail well go well at . Other than amazon, the customer is the winner because they are the ones that are the beneficiaries of all of these great discounts. The issue with flash sale was that it was never as big as everyone who as an investor that it was. Investors were out there thinking this was a 100 billion sector and the truth is at best dish emily we have to leave it there. Thanks guys read will be right back. The only way to get better is to challenge yourself, and thats what were doing at xfinity. We are challenging ourselves to improve every aspect of your experience. And this includes our commitment to being on time. Every time. Thats why if were ever late for an appointment, well credit yo