alibaba's bottom line. emily: is it fair to compare amazon and alibaba this way, by looking at their market cap? bob: it is tough. what we are looking at is sort of like comparing the chinese consumer economy versus the u.s. consumer economy. each of these companies are highly associated with the region's within which they play. they are compared because there are similarities. large e-commerce companies. they have made investments in entertainment platforms and services. there are interesting similarities. there are a lot of regional specificity each has. and there are unique characteristics on both sides. the other big point selina made that is critical is alibaba is making money now. amazon is investing a ton of money now. that is a big difference. alibaba is investing but not to the same degree. the bottom line looks much smaller for amazon. emily: we traveled to beijing a couple of years ago to speak with jack ma. there was some concern around that time that alibaba might be a lot of hype. what has cha

alibaba's bottom line. emily: is it fair to compare amazon and alibaba this way, by looking at their market cap? bob: it is tough. what we are looking at is sort of like comparing the chinese consumer economy versus the u.s. consumer economy. each of these companies are highly associated with the regions within which they play. they are compared because there are similarities. large e-commerce companies. they have made investments in entertainment platforms and services. there are interesting similarities. there are a lot of regional specificity each has. and there are unique characteristics on both sides. the other big point selina made that is critical is alibaba is making money now. amazon is investing a ton of money now. that is a big difference. alibaba is investing but not to the same degree. the bottom line looks much smaller for amazon. emily: we traveled to beijing a couple of years ago to speak with jack ma. there was some concern around that time that alibaba might be a lot of hype. what has chan

did it after alibaba. emily: how do their efforts compare? >> if you look at the type of china,payment market in in 2016 it fell $790 billion. that is 11 times the american market. that means chinese consumers are used to paying with their smart phone. alipa toy make payments every time they go. if they go to a store and see something they like they can , make a purchase. if the inventory is not available, no problem. the warehouse can send take to -- send it to their home in the next 30 minutes. that is something we don't see in the u.s. you will see it happen more and more in china going forward. emily: cloud revenue another big growing part of alibaba's business. but they are losing money there. talk about what is happening when it comes to cloud computing? >> they reached a milestone. they had more than a million paying customers but we did see growth slowdown from the triple digit growth rate they had been predicting. digital media entertainment, we saw growth slow from triple digit growth to just 30%

alibaba's earnings will be released very soon. alibaba's earnings will be released very soon. looking at the asian market... it is a mixed baga. —— bag. terminal in washington and us fed meeting is showing worries about inflation. in the us market... in positive territory. thank you so much for investing your time with us. much for investing your time with us. bye for now. the top stories this hour: more business leaders have resigned from president trump's advisory councils, in response to the violence in charlottesville — he has responded by shutting down those very same councils. there's grief and anger in freetown as authorities are blamed for hampering rescue efforts — at least 600 people are still missing after monday's mudslide. thousands of extra care home places will need to be created in less than 10 years, in order to cope with the growing number of of frail older people. of frail older people. researchers at newcastle university say england will need an extra 71,000 home places by 2025, because people are living longer, and many need substantial help in the

we will break down alibaba's results next. plus, apple is making a major push in original programming. we will detail the steps they are taking to compete with the likes of netflix and amazon. this is bloomberg. ♪ ♪ emily: alibaba delivered blowout earnings last quarter with sales jumping more than 50%. china's largest online market is setting its sights on a new goal , now stepping up its spending on media and content as well as a new retail strategy. talking about the results and alibaba's future. >> anyone who grows this size , but at the same time, we also feel boredom vindicated because anyone who grows this size but at the same time we feel vindicated because for the last two years we have been saying it it was great and a lot of people had skepticism given the stock market crash of two summers ago. it has grown and grown. emily: i want to take a look at how revenue growth has progressed. take a look at your bloomberg -- shows how revenue has grown over the last several quarters. the company executives spend a lot of

we will break down alibaba's results next. apple is making an original push -- a push into original program in order to compete with netflix and amazon. this is bloomberg. ♪ emily: alibaba delivered blowout earnings last quarter with sales jumping more than 50%. jenna's online marketplace is setting its sights on new goals, stepping up -- alibaba -- stepping up. talking about the results and alibaba's future. >> anyone who grows this size but at the same time we feel vindicated because for the last two years we have been saying it it was great and a lot of people had skepticism given the stock market crash of two summers ago. it has grown and grown. emily: i want to take a look at how revenue growth has progressed. take a look at your bloomberg -- showing revenue growing over the last several quarters. the company executives spent a lot of time on the call talking about a new retail strategy. another area they are expecting significant growth. what is that mean? >> alibaba like amazon and other e-commerce giants have been ta

companies like alibaba, taobao and aliexpress. but it's notjust online anymore, alibaba is also now building physical stores. at the start of the programme we asked you to get in touch with exam results, whether not getting the grades you needed have affected you in the world of work, do qualification still matter, shane says, i left school with nothing, now i get a comfortable wage. jason says, they matter to a point but they are not the be all or end all, keep your comments coming in. chinese tech firm tencent saw shares rise as much as 5.5% after posting record profits for the second quarter. the news comes ahead of results from another chinese giant alibaba later today. christine hah is in singapore. tell us what are these companies going to do. look into your crystal ball. it has been a really exciting week for chinese tech companies, as you say, a record estimate leading result, for tencent and it is expected that alibaba will beat estimates. revenues are $7.1 billion. a lot of that is because of the core business of chinese

we will break down alibaba's results next. apple is making an original push -- a push into original program in order to compete with netflix and amazon. this is bloomberg. ♪ blowoutlibaba delivered earnings last quarter with sales jumping more than 50%. jenna's online marketplace is setting its sights on new goals, --pping up -- alibaba stepping up. talking about the results and alibaba's future. >> anyone who grows this size but at the same time we feel vindicated because for the last two years we have been saying it peoplegreat and a lot of had skepticism given the stock market crash of two summers ago. it has grown and grown. emily: i want to take a look at how revenue growth has progressed. take a look at your bloomberg -- showing revenue growing over the last several quarters. the company executives spent a lot of time on the call talking about a new retail strategy. another area they are expecting significant growth. what is that mean? >> alibaba like amazon and other e-commerce giants have been talking about the futur

alibaba delivers blowout numbers. sales jumped more than 50% thanks to its robust e-commerce business. now to our lead story. president trump said he is ending two advisory committees after multiple c.e.o.'s stepped for as trump faced blowback sufficiently condemning white supremacists. the president made the .nnouncement on twitter it is a serious turnaround from the tweet that trump posted on tuesday. several c.e.o.'s left the council earlier this year following disagreements over the president's approach to immigration and climate change. tech'sed us to weigh relationship with the white house. >> i think the president is clearly struggling with lots of issues. first of all, i think the president is sort of a sociopath. i think he is revealing under pressure more of his characteristics. under pressure and stress, people tend to reveal their natural characteristics. at the end of the day, when he gets attacked, he will punch back. we saw this on the debate stage, and none of his opponents were willing to punch back a

. >> alibaba one of the days winners after beating estimates. sales and revenue came in ahead of the field. betty: this is "daybreak asia," live from bloomberg's u.s. and asian headquarters. i am betty liu in new york, it is after 7:00 p.m. shery: it is after 7:00 a.m. in hong kong. i am shery ahn. injured aftermore a van hit pedestrians in one of barcelona's most popular streets. two have been arrested in los angeles -- las ramblas. spain has a history of terrorism. passengers were killed by bombers in madrid in 2004. there are rumors gary cohn would be resigning as president trump's top advisor and not to mention the political scandal going on. that is leading the markets. they took a big hit overnight. betty: they absolutely did, as you point out. it was interesting to see the terror attack rattled investors. but it was gary cohn and his possible departure that hit the markets. i want to pull up a chart g #btv 360. it really tells the story. we saw the second worst day in terms of the drop of the s&p, down 1.5% today. the second time it has d

alibaba pictures, i want to alibaba ishis, burning more money on media and entertainment. its content craze is being fueled by the gains from its commerce business. some of these riskier, unusual bets are playing off -- are paying off. let's get to the first word news. spain is on high alert after the death of civilians and presumed terrorists. suspects shot dead by police in a town south of barcelona. the operation was linked to the death of 13 people hit by a speeding van in barcelona. the prime minister says spain and the world stand by the people of barcelona. president trump is said to have a bandwidth plans for an infrastructure --to have abandoned plans for an infrastructure council. order foran executive the panel in july but failed to make formal appointments. it follows the cancellation of two other advisory councils since some business leaders quit. a report cites an official saying the proposed a number of shares exceeded -- global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. ♪ haidi: th

. ♪ caroline: alibaba is on a run. the e-commerce company predicts its revenue will increase almost 50% this year on china's booming ranks of middle-class consumers. shares listed on the new york stock exchange have risen over 76% since the beginning of the year. investors may have even more to cheer about when the company reports its latest earnings on thursday. joining us to discuss alibaba and other asia tech earnings that are catching our eye, bloomberg technology reporter selina wang. alibaba, what are the key takeaways? selina: we are expecting very strong profit and sales growth. alibaba has a lot of macro trends in china. more chinese consumers are buying online. bloomberg intelligence estimates alibaba makes up 95% of the e-commerce transactions in china. so, as long as that market is growing, alibaba will continue to grow as well. we probably expect to see more growth in newer lines of business. cloud computing has seen triple digit growth the last few quarters. digital media and entertainment. investors will

the world's biggest hotel chain is teaming up with alibaba. the deal will allow chinese travelers to book rooms at marriott hotels using alibaba's travel platform. >> reporter: as the chinese travel market booms, companies are looking to cash in. marriott's international and alibaba ra teaming up to make it easier for chinese consumers to book, pay and manage travel at home and abr at stake is a market that's expected to be worth more than $100 billion this year in digital sales, alone. marriott will get the chance to build brand loyalty and exposure as more chinese travel abroad and as it localizes more services like mandarin-speaking concierges and chinese-language tv channels. marriott already has partnerships with alibaba's travel rivals such as ctrip, but stephanie linard, company's chief commercial officer, says alibaba represents a huge opportunity. to tap in to the 500 million-plus active monthly users on the alibaba site, signing people up for our loyalty program, getting a disproportionate share of chinese traffic, to our own website

alibaba hit a record high after posting record quarterly earnings. revenue jumped 56%, and profit nearly doubled in the june quarter, fueled by a core e-commerce business. joining us to discuss these ner ers, the managing part at capital and one other. are you impressed that a company of this size can continue to post such strong numbers? >> of course we are being impressed with the growth at this time. we also feel very vindicated, because for the last two years we have been stating that alibaba was going to be great. a lot of people had skepticism given the china downturn in economy, the stock market crash from two years ago, and alibaba has continued to grow and grow. >> i want to look at how revenue growth has progressed. btv t your bloomberg z # 474. it shows how revenue has grown over the last several quarters. they have spent time on the call talking about a new retail strategy, another area we are expecting significance growth. what does that really mean? >> alibaba, like amazon and many other giants have been talking about how really the fut

. ♪ caroline: alibaba is on a run. the company predicts its revenue will increase almost 50% this year on china's booming ranks of middle-class consumers. shares have risen over 76% since the beginning of the year. investors may have even more to cheer about when the company reports its latest earnings on thursday. joining us to discuss alibaba and other asia tech earnings catching our eye, selina wang. alibaba, what are the key takeaways? >> we are expecting very strong profit and sales growth. alibaba has a lot of macro trends in china. more chinese consumers are buying online. bloomberg intelligence estimates alibaba makes up 95% of the e-commerce transactions in china. as long as that market is growing, alibaba will continue to grow as well. we probably expect to see more growth in new or lines of business. cloud computing has seen triple digit growth the last few quarters trade digital media and entertainment. investors will be looking to see if losses narrowed in that area. one thing that might have investors sli

alibaba versusat amazon. so often i sit here and talk about amazon and how it is taking over the world, but if of aook, alibaba in terms market cap is really closing in on the gap around amazon. alibaba compared to 10 sent and the other tech stocks we look at? pharma,tand it's called facebook alphabet, now. matter what we decide to call them, one thing is for sure, alibaba continues to outperform. we have normalized performances of the shares that you highlighted back to january and it has really come up 80% here. it comes back to the basic key areas of growth. cloud computing, i would mention those monthly active users outpacing the growth in the monthly active users jumping to 530 to 507 million just in march. taylor, thank you. grocery wars taking a bite of the walmart bottom line. shares of the retail giant plunging today after a disappointing second order with the walmart ceo, doug mcmillon finding it optimistic in the earnings call earlier. >> the grocery business has really strengthened as they deliver

shares of alibaba up this morning after the china-based company beat expectations. let's bring in joseph burger, ceo at pacific epipooch. is this stunning growth we seeing across alibaba's e-commerce double digit growth, is it a matter of taking market share or is this market just growing like crazy >> yeah, we weren't surprised by the results that quarter based on our research on the ground in shanghai and our prix poprietar data tracking. we see continued strong performance for alibaba over the quarter and clearly their promotion strategy helped them this quarter and we see that continuing. >>they're growing so much faster than the broader excommerce growe e-commerce growth in china, what do you put that down to? >> yeah, so from our standpoint, the way we see the market is you look at the china consumer, currently there's only 50% of the population online today and that's growing, it's about 700 million people, then you look at disposable income and you look at the sophistication of the china consumer and these factors are helping to grow the e-commerce pie and a

because of alibaba's involvement? do you see the model changing? max: i think there will be things which will change because we learn from what they do. we have the luck of not making some of the mistakes may made in -- mistakes they made in the past, but in the end, let's not kid ourselves. what we're doing is not rocket science. we're connecting sellers and buyers. there is lots of different formats in which that can happen. our job is to make the customer happy and the seller happy and have the platform be in between. so, i think it is less about sudden rush transformational changes, but more about improvements. do i think that we will make a big improvement from the earnings? yeah, 100%. haslinda: it has been challenging operating in six different markets. people look at southeast asia as a region, yet within the region, within the six markets that you operate in, there are lots of differences, not just as a culture, but how they do business. max: yes. there are many differences. you look at the culture in these six markets. they have distinct

companies like alibaba, taobao and aliexpress. but it's notjust online anymore... alibaba is now building a brick and mortar presence as well by buying intime retail. ryanair has accused lufthansa and the german government of conspiring to carve up collapsed airline air berlin. lufthansa is negotiating over buying air berlin planes, which are still flying following a 150m euro german government loan. the german government rejected the accusation and said its support for air berlin did not breach anti—trust rules. there is an increasing feeling in the markets that it is going to be delayed, interest rates in the us. the federal reserve issued the minutes and it shows members anxious in holding operates until they had a clearer idea about inflation. let us move on and give you an idea about how the markets ended. the dollar was the main casualty. don't forget, you can get in touch with me and some of the team on twitter. see you later. alligator far too many older people are suffering in silence when things go wrong with their nhs care, the ombudsman saying it is o

alibaba has been on a tear some of these chinese internet stocks like alibaba outperforming f.a.n.g. in terms of the technology boost. they don't get as much attention but they have been chbts don >> don't get as much attention and they had an extraordinary rise two, three years ago. we want exposure to the tencents of the world, those webos, then a stagnant two or three-year period, as the f.a.n.g.s took off, now rotation again back into those names >> back into alibaba >> walmart will be interesting they have been sort of steadily improving traffic and positive sales, ramping up the e-commerce efforts. the question is with the stock move which has risen to reward the company, can they continue to outperform? >> stocks to watch shales of l brands slipping. the owner of victoria's secret reporting a bigger drop in same-store sales >>> netapp beating the street. product revenues grew 10% on the year it's down 1.5%. systems latest matched estimates, but the stock is down 3% we'll hear much more about the quarter this morning chuck robbins will join "squawk on the street" f.a.n.g.s doin

is this an alibaba story or an e-commerce trend as a whole, jeff >> i think it's both alibaba is a phenomenal organization that executed flawlessly since going public. you look at 56% year over year growth i can't think of a time in the last ten or 20 years where i've seen a $30 billion company growing at 50%, 56% year over year, $540 billion in annual gmv last year in china the fiscal year which is larger than the entire e-commerce market in the u.s. but i think if you look globally, we're still in the infancy of e-commerce taking over retail in the u.s e-commerce i believe is 12% or 15% of retail. so we're in the first inning one reason i'm long alibaba, we've been an investor for a very long time, it is still early. the chinese consumer, look at the value of a consumer on this platform, it is small to where you may see amazon if you think about the chinese economy growing tremendously over the next five or ten years, eventually becoming the number one economy in the world, alibaba benefits from that as does ctrip and the other major internet players in china. so i think we're in the -- you

alibaba's position is very strong. they have been seeing some very notable monetization improvements. combined with good volume growth and a strong operating environment and a high range business model. affirmation is my initial take away. nejra: what about the cloud computing? that dipped below triple digit growth of the first time in several quarters. is that a concern? rob: it is not. there in market development phase and the offset here is the number of paying customer record,s was by far a the previous high bar being 103,000. their primary objective is to win the land grab. they have had some aggressive pricing actions over the past couple of quarters that the plates the top line growth but as long as there is -- they are successful in getting the early adopters on their cloud in mass, they are in position to win this market. one area notonnie: doing as well as entertainment. why is it not performing as well ? of: they have made a couple the acquisitions in this space. required, they took that business and really

that isn't true for alibaba. said it ishas prepared to use regulations to allow banks to acquire digital platforms. is that enough? will that level the playing field? the bank and make visible. the long-term view is to make dbs invisible. people do not want to do banking in and of itself. people want to do something else , they want to buy house, a car, go on holiday. invisiblyg should be and seamlessly hidden in something you want to do. if we can work with partners to hide the banking service in something the partner provides it would be a big step in the direction we want to go towards. some is encouraging in this time frame. >> are you in talks to acquire digital platforms? >> we are in talks all the time. one third of our customer acquisition comes through chinese partners and not directly. that is the difference in our philosophy and approach. banks used to be pipeline companies, today we try to be platform companies to engage in equal relationships and bring customers in through chinese partners and use ch

business attract more through the alibaba platform and also attract more consumers to and on the alibaba platform. >> the shares in wpp has plunged this morning, after the company cut its for your revenue forecast to slash market spending particularly in the consumer goods sector. ,> the concerns about wpp earnings going down, a confirmation of the pressures such as cutting back on spending on its biggest clients. that has hurt the company. >> the market has been hurt andntly because of brexit, the u.k. is one of your strongest performing regions in the last quarter. how are you weathering that. >> well, i think that has something to do with more on the micro level. we had a strong market share, a lot of good people, doing a very good job. the other thing is that may be, this is just i had offices, with the uncertainty around fixed capital investment, there is a lot of pressure. there are signs indicating that it is under pressure and the the contexttion, in of this uncertain environment, as we may or may not go through a transition. march, thatter could be putting more pressure on it an

consumers to and on -- that spend on the alibaba platform. everyone will benefit from that process. >> the shares in wpp has plunged this morning, after the company cut its fourth -- full-year revenue forecast to slash market spending particularly in the consumer goods sector. >> there have been concerns about wpp, earnings going down, a real confirmation that the pressures people feared, such as cutting back on spending on its biggest clients. that is starting to hurt wpp. mark: the ad market has been hurt recently because of brexit, and the u.k. is one of your strongest performing regions in the last quarter. how are you weathering that. >> welcome, i think that maybe something to do with more the micro level -- we had a strong market share, a lot of good people, doing a very good job. that is one thing, maybe the other thing is -- and this is just a hypothesis, that with the answer to around, fixed -- uncertainty around, fixed capital investment, there is a lot of pressure. there are signs indicating that it is under pressure and the brand

lot more consumers to spend on the alibaba platform. everyone will benefit from that process. >> the shares in wpp has plunged this morning, after the company -- the world's largest revenue company cut its market spending particularly in the consumer goods sector. >> there have been concerns and there is real confirmation that the pressures people feared, such as cutting back on spending on its biggest clients. that is starting to hurt wpp. mark: the ad market has been hit recently because of brexit, but you whether that. >> the u.k. is one of your strongest performing regions in the last quarter. how are you weathering that? >> well, i think that may have something to do with more the micro level and we had a strong market share, a lot of good people, doing a very good job. that is one thing, maybe the other thing is -- and this is just a hypothesis, that with the answer to around, fixed -- uncertainty around, fixed capital investment, there is a lot of pressure. there are signs indicating that it is under pressure and the brand innova

who is the best at that, alibaba. we needed their expertise and know-how, not just with digital but with chinese travelers. betty: could you have done this without starwood in your portfolio? >> i think we could have, but it made it more appealing for alibaba when they look at the size. -- there have been conversations between us and alibaba in the past. though the starwood and marriott had very good relationships with alibaba prior to the merger and it has become stronger. i think it was more compelling for them when they saw our size and expertise. in the case of marriott, they are looking at 90 years of hospitality experience. they are looking from the other side, saying how do we get that information for travelers when they go outside china? haidi: appreciate your time, craig smith, marriott international asia-pacific president talking about the tie up between alibaba and marriott. ,orld time inc. shares raising adjusted eps coming in a $.13 last quarter compared with estimates of $.11. the president and ceo told

lot more consumers to spend on the alibaba platform. everyone will benefit from that process. >> the shares in wpp has plunged this morning, after the world's largest revenue company cut its market spending particularly in the consumer goods sector. >> there have been concerns and there is real confirmation that the pressures people feared, such as cutting back on spending on its biggest clients. that is starting to hurt wpp. mark: the ad market has been hit recently because of brexit, but you whethered that. the u.k. is one of your strongest performing regions in the last quarter. how are you weathering that? >> well, i think that may have something to do with more the micro level and we had a strong market share, a lot of good people, doing a very good job. that is one thing, maybe the other thing is -- and this is just a hypothesis, that with the , thanksnty around capital investment is under pressure. brandand, innovation and in context of this uncertain environment, as we may or may not go through a transition period in brexit afte

he has a buy rating on alibaba. they started by asking for his reaction to today's results. >> my one-word takeaway is affirmation. we have been looking at trends in the chinese consumption environment. alibaba's position is very strong. they have been seeing very notable improvements. combined with good volume growth and operating environments, the product of those is the result we sold today. the affirmation is my initial take away. what about the cloud computing? because that's it below triple digit growth for the first time in several quarters. is that a concern to you? no. they are in a market development phase. i think the offset is the number of paying customer conditions was by far a record. objective is to win the land grab. they are doing that. they have had some aggressive pricing actions over the last couple of orders that deflate the top line growth. as long as they're successful in getting the early adopters on their cloud, they are positioned to win. harry and not doing so well is entertainment. area

that's because alibaba has been growing very fast. it's been expanding beyond china trying to look into other mar t markets. mobile is growing extremely strongly as we saw from tencent numbers, numbers for mobile gaming surpassed pc for the first time. at the same time alibaba has some promising young businesses. one of those is cloud computing. that in the last quarter grew 103% analysts are continuing to expect high double digit if not triple digit growth there. at the same time the digital media and entertainment business which is games, movies, that was over 200% growth in the last quarter. these account for small amounts of revenue the excitement is that these are business in which alibaba invested billions of dollars into these could be huge drivers of growth for the future and in the short-term >> i have to say, this sounds impressive equally impressive is the share price gain this year, up more than 80%, some of the articles we've seen over the last couple of days indicating b.a.t.s. are outperforming the f.a.n.g.s. what could

lot more consumers to spend on the alibaba platform. so everyone will benefit from that process. >> the shares in wpp has plunged this morning. that is after the world's largest revenue company cut its four-year revenue forecast and market spending particularly in the consumer goods sector. >> there have been concerns around wpp. there is real confirmation that the pressures people feared, such as cutting back on spending for the biggest clients. that is starting to hurt wpp. mark: the ad market has been hit recently because of brexit, but you weather that. the u.k. is one of your strongest performing regions in the last quarter. how are you weathering that? >> well, i think that may have something to do with more the microlevel and very good business. we had a strong market share, a lot of good people, doing a very good job. i think that is one of the things. the other they may be this is just a hypothesis, but with uncertainty around, fixed capital investment, there is a lot of pressure. the brand innovation, the innovation of brand i

if you look at alibaba, he put six 4 million in alibaba. was 68 million, .raded to 12 billion what i think you will see is he is also in super cell. will goke most people anywhere, any place. more money than raise in the entire money of venture capital in 2016. >> in the vc world or private equity world, do people still talk about him? >> his lawyers are silicon valley lawyers. he has dealmaker all over the you can get tension anywhere you want, especially where deals are plenty of people are always raising money. he absolutely gets a lot of attention. alwayspoint out he's willing to spend it. accelerator, though started guys, we can go from series 82 b. >> it's very different where it was a few years ago. i think his money is very welcome in silicon valley. >> he purchased fortress investments. he shows up all over the place. i think that really has changed going toic to say i'm be focused on a, b, and see. he will go anywhere. professor at columbia business school for your thoughts. up, sport tv rights, what we see from the traditional pr

so, if you -- i'm long alibaba, 92%. year to date it outshines everything. >> why not take some profit? >> because i do believe when you have a company that's guiding up 45% on revenue, in 2018, we're scratching the surface >> not only that, you know, i'm long baba a long time. what's happened to baba in the last couple quarters is not only is there core commerce business growing, but their cloud business is growing a lot faster than amazon's for example. theflowing on amazon is a web multiple. not a brick and mortar which is what they're selling at low margin stuff giving them the benefit of the cloud. essentially alicloud, alipay, all different kinds of pieces. meanwhile, these guys trade at 25 times next year, where does amazon trade where does tencent trade, also to own and long it trades it around 34, 35. i would take thissing a nich ia the way, i would make it -- s.t.a.b., seen thina is inconsequential. samsung. add in taiwan semi got an asia tech play that competes with f.a.n. fwvmt. >> focus on internet, 50% pene

alibaba is having an incredible year. since january, the prices gone from $87 to 174 just this year. been seeingell has into the number since the end of last week. at a also looking longer-term opportunity of alibaba. omnicell retail. and if you take a look at my it is a revenue breakdown. that is international and cloud computing. there is a lot of room to grow. businessense of this -- l, the potential question has been up over 80%. the core e-commerce business, they are talking about that other investment. look at those similar to amazon, it is investing in movies, it's taken the chinese the south china morning post sounds exactly like amazon. they are seeing a lot of similarities there. analysts look at the calls generally, 94% of analysts who rate the stock rate it a buy. it has none on it, but it looks like it is not just this analyst. everyone seems to love it. >> a lot of people are shorting alibaba. they're losing a lot of money at the moment especially this year. there is so much and they have a huge part of the

how about shares of alibaba? they were up 90% and then rallying again today about 3% after reporting earnings next, we'll look at the surelts from this sometimes formerly overlooked tech giant. >>> welcome back a sea of red for the blue chip industrials and the s&p 500 had. the dow is down 224 points the s&p is down 32 for a 1.33% drop. >> 29 minutes left in the trading session with the dow now down 225 points at the lows -- in fact, all the major averages are at the lows of the session joining me on the flor here is alan valdez from silver bear capital. blowing through some support levels, aren't we? >> blown through quite a few of them. >> is wall street losing confidence in washington or what's going on? >> appears today we're losing confidence and the business communities and ceos, so that's problematic. i mean, it was the business world that really promoted this tax cut with deregulation and nothing has come from it yet and now the ceos seem to be getting nervous and we're backing away from them, so it could

alibaba and tencent, a lot of investor focus here. let's go into some of the issues that are in the forefront. first of all be traded much higher from facebook. we talk about bank stocks, facebook, amazon, these have done so much better in terms of the expectations, the expectations 30%, profit gain for alibaba alone. justifyhey will have to their high stock prices. thank you so much, su keenan with a look at wall street. let's stay with the talks she mentioned. the head of asia, telecom and internet research. it is great if you are an investor in the stoxx or made quite a bit of money. or made quite a bit of money. do you think these valuations are too rich? >> it is reasonable at the current level especially for the big names. theou look at alibaba, forward growth is over 25%. for tencent, you are trading at a premium. it is only because they list in hong kong. they are everywhere. now we don't see the amount it ifl contract from here, but they go forward for year, the stoxx perform. -- stocks perform. betty: some of that is from ac

alibaba. what are you looking for? stephen: they dominate e-commerce, whereas tencent is the big mobile and online gaming juggernaut. alibaba dominates more than 90% of these e-commerce transactions in china. what i will be looking for is revenue from other businesses and international expansion. big in the cloud and other areas. when are they going to get traction there? this is another juggernaut, but -- alibaba but i want to see , what they will be doing overseas and in other areas that have been a bit of a drag. emily: stephen engle from hong kong. thank you so much for stopping by. coming up, our conversation with former softbank president who was once heir apparent to the softbank empire. he joins us for a wide-ranging exclusive interview on southbank investment strategy. what he plans to do next. this is bloomberg. ♪ emily: former softbank president nikesh arora who was once cap does the heir apparent of the softbank empire joins us on a special edition of bloomberg studio 1.0. in a wide-ranging discussion we

it includes tencent, alibaba, and others. the unlisted state run parent will remain the biggest partner but give up its majority shareholding. tencent is reaping the rewards that marry social media with gaming. its best growth in seven years and profits beat estimates by 30%. tencent has cap to the earning games, helping revenue for mobile games past that of desktops for the first time. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am a ramy inocencio. this is bloomberg. shery: president trump firingtwo of his advisory councils. four ceos resigned following the deadly protests in charlottesville. greg, this announcement came within the hour as a report surfaced this group was planning to defend. trump is trying to get ahead of business leaders. greg: obviously, trump's following high-profile departures from his manufacturing counsel -- council. held ahis council conference call and took a poll on whether to leave the council. 10 voted to leave. they said they woul

alibaba also this week. tencent reports wednesday. alibaba the day after. crazy growth, the estimates as well. sophie, thank you for that update. on the weekend, we did get these events in the u.s. let's start with that. charlottesville happened. the driver of a car that plowed into a crowd, killing a woman, has been charged with second-degree murder. heather heyer died on saturday when alex fields drove into anti-nzi protesters. --sident trump has been can been criticized for preventing to condemn them. groups needremist to be pushed out of the public debate entirely. for the hateed groups and dangerous fringe groups they are. president trump is preparing to turn up the heat on china over what the u.s. perceived as theft of intellectual property. he is expected to sign an executive memorandum on monday, dragging -- directing the launch of an investigation. u.s. companies in china are said to be enforced to transfer technological expertise. next monthn for german election begins. the two german leaders put the blame elsewhere. global news 24 hours a day, po

anna: we'll get earnings from rival alibaba. analysts expect the company to show strong revenue growth. as we were just discussing, we have a chart from one of our colleagues on china's text giants, this is global. ian: global growth and the -- in the economic sector is muted. even though we are talking about stronger economic activity will 4.around 3.5 or you have the growth expectations from these tech stocks, they are long-duration stocks so as bond yields stay low you get that stimulus, there classic roast plays in that is why people are getting excited about this. in a world where earnings growth decelerates according to our top down monfils kinds of stocks stand out attractively and that is where the valuations get pushed up. manus: they still hold attraction for you. we get filings at the end of every quarter. this is not cast in stone but what we are seeing is a selling of apple and facebook and holding on to the latex -- likes of netflix. how much of america versus the rest of the world in terms of tech do you want to h

alibaba. what are you looking for? stephen: they dominate e-commerce, whereas tencent is the big mobile and online gaming leader. alibaba dominates more than 90% of e-commerce in china. what i will be looking for is revenue from other businesses and international expansion. cloud computing and other areas, when are they going to get traction there? but is another juggernaut, i want to see what they will be doing overseas and in other areas that have been a bit of a drag. from hongphen engle kong. thank you so much for stopping by. withg up, our conversation the former southbank president. us for a wide-ranging exclusive interview on southbank investment strategy. what he ans to do next. this is bloomberg. ♪ emily: the former southbank president who was once the air of the southbank empire joins us on a special edition of bloomberg studio 1.0. others.tionships with asked about his humble beginnings growing up in india and how he was invited to work for google. we're making around $2 billion in revenue at that time. i

partnering with alibaba. craig smith says the focus will be on digital payments. >> it is the marriage of off-line to online. that is the new acronym today. we take to companies and put them together, we have the best and brightest. we have 500 million people on alibaba and we are marrying them with marriott loyalty customers. we have 125 million trips last year by chinese travelers. the largest percentage of those were to asia. this isest benefit to for asia, but it will benefit the company around the world. >> much as been made about chinese travelers. these chinese tourists. they could be business travelers, as well. how are they different than other travelers and how are you changing perhaps you are giving them services to attract them to your hotel? >> we always sick of travelers looking today for what they can get it home. there looking for comfort food, looking for tv shows in their language. the most important thing i think today that is different is digital wallets. they want to pay in their way. ima

in other news, alibaba had another lacklustre quarter thanks to slow growth in their shopping business and cloud computing. the e—commerce giant posted a 56% jump and cloud computing. the e—commerce giant posted a 56%jump in and cloud computing. the e—commerce giant posted a 56% jump in revenues for the three months untiljune, which came in at 7.5 william dollars, blowing past market expectations. —— billion dollars. walmart has released higher full—year profits and sales figures for the past three months but it looks like investors aren't happy with the results. shares have fallen overnight. now, do you appreciate our life on the rolling deep? if so you may be one of the 25 million people who took a holiday onboard a cruise ship last year. industry major business and is growing rapidly. but as we report, the new generation of giant, floating hotels aren't welcome everywhere. they are floating cities. majestic and luxurious. sailing serenely through the waters that surround some of the most beautiful places on earth. but when these vessels come close to land or interport no

marriott international says the joint venture will allow chinese travellers to book rooms using alibaba's travel website. they'll also be able to pay for their hotel bookings using alipay on their smartphones. chinese travellers are expected to take roughly 700 million trips over the next five years. tesla plans to raise $1.5 billion to pay for production by by the sounds of it, many will be drinking stout beer on their holidays as well! let's look at the markets: basically, these markets have been going up, up and up, so no surprises, a slight fall in asia today, but look at the dow, going higher and higher again. i'll see you again very soon. the welsh government is expected to unveil today plans to invest over a million pounds in dental health. 10,000 new nhs dental places will be created in some of the most deprived parts of wales. however, critics, including the british dental association, say the new cash doesn't replace money taken out of the welsh dental budget last year because of missed targets. tomos morgan has more. for the last few years, finding an nhs dentist has been a str

but the regulators said that the deals that will tap into more than a dozen major investors such as alibaba and baidu, do not violate rules. values surged 10% in chinese trade. and china unicom hong kong also climbed 10% to their highest level in more than two years on the hong kong stock exchange. this is good news for china unicom, able to raise $12 billion for their fundraising efforts. ben? thank you forjoining us, rico hizon. right, now it is time for the first in our new series on the business of death. we start in new york, where it costs big bucks not only to live, but also to die, in the big apple. burial plots in cemeteries are often some of the priciest pieces of real estate anywhere in the city as samira hussain finds out. deals worth dying for? not in brooklyn. in a city where land is at a premium, it may come as a surprise that even cemeteries are pricing people out. this particular cemetery still has room to grow but they are also trying to maximise the space they already have. we wanted to provide the people of brooklyn, especially, an option where they can have affordable b

it will allow them to book rooms using the travel website on alibaba. they can also use alipay on their smartphones. chinese tourists will ta ke smartphones. chinese tourists will take 700 billion trips over the next five years. prosecutors in south korea want a 12 year prison sentence for the samsung previous ceo, jy lay. they say he was the ultimate beneficiary of the crimes committed in the scanner which brought down the previous president. he denies any wrongdoing. the court will rule later this month. tesla once $1.5 billion to pay for the introduction of its new model three car by selling bonds to investors. that is even though they have $3 billion in cash. they are expected to go through most of their cash this year as they try to produce 100,000 of those mass—market cars. they already have half a million orders for the model, they say. video streaming giant, netflix, has made its first acquisition, the scottish comic book dumped me behind kickass and kingsmen. and they specialise in science fiction and fantasy stories similarto science fiction

we have been noting accelerating trends in there and alibaba's -- chinese environment -- alibaba's position is very strong as you noted. they have been seeing some very notable modernization improvement combined with good volume growth and a high-margin -- strong operating environments and a high-margin business model, the product is the result of what we saw today. , take -- myirmation initial take away. >> online shopping mall jd.com posting a wider quarterly loss after raising running to drive -- spending to drive sales. a shortfall of $74 million is almost twice that of a year ago despite a 44% jump in sales. why is jd.com spending so much on marketing? what is behind this? >> jd usually wraps up spending in the second and fourth quarters when it has sales promotion days. in the june quarter, it was what they call a 618 promotion, and the underlying reason for this spending is to attract traffic and users, because it is in a pitched battle with alibaba for chinese online shoppers. it --g as jd can make maintain its topline growth, if i remember it came in at 40-45%, as long as it can su

alibaba does not control t lodgistic behind however, year to date, alibaba is winning the race of 85% comparing to amazon gain of 30%. it does put it among the other online tech giant including facebook and google and amazon as well. we should point out this play on alibaba still on the chinese consumer and international presence jack ma has been on acquisition street and acquiring start ups in indonesia and malaysia and around the world >> can i use it here >> you cannot use it here yet. you can use it to buy chinese goods. excuse me. >> do you want chinese goods i get it all the time. >> if you were to buy 25 mopeds. that's the place to go ahead more on the market sell off. including what we are seeing in technology right now is that a reason to be concerned? we'll lkta about it on "power lunch," back at two. >>> lets get some reaction on the market exchange. kenny, it is great to see you wi every sector is in the red is this beginning of a broader cool back >> i think it is we have been talking about it for a while. we are certainly talking about it in my note. the market rally bac