x live from pier three in san francisco, welcome to "bloomberg west was quote where recover -- "bloomberg west." i'm emily chang. alibaba plans to go public in just over a month. the e-commerce giant will head to europe, asia, and the united states. to go alibaba gets ready public, we look at the rising challenge of 10 sent to stop -- of 10 sent. amazon has launched a new card reader called amazon local register that can be used by

physical merchants in physical stores. competitors,tting offering much lower transaction fees. and a variety in luxury, from to bumpers.lights we will tie you how rolls-royce is helping to enhance the latest model. first, to our lead story of the day, alibaba is making final preparations for its ipo, which could become one of the largest in history. the chinese e-commerce company started its investor roadshow on the third with travels to three continents. alibaba could go public on the new york stock exchange by september 16, this according to people with -- familiar with the matter. we are getting new information

on the business of one of his chief rivals, 10 sent. said net revenue rose in the second quarter as it games and gains in shopping services. also joining us, bloomberg news reporter leslie picker. i know you're all over this alibaba ipo roadshow. what is the latest? will this either largest ipo in history? >> all of the valuation metrics are still a little fluid, but the good data coming out of me it willay tells be compared to tencent. the bigger the valuation, the bigger the offering size, usually. but how much of a challenge is tencent to alibaba?

where do they compete the most? >> it is a tremendous challenge to alibaba, and it's interesting that they are compared to another comic of -- to one another, because the overlap today is more than it has been. $.10 -- tencent has been able to do with their retail model is to encroach on the mobile space on ali baba posture. -- ali baba's turf. >> leslie, what are investors saying about that? are they worried about tencent? do they feel like ali baba stands on its own? >> it's back to the old how you value one of these big internet conglomerates. users tou monetize the something that matters to the investors? if tencent is taking something

away from ali baba that is valuable, that could impact the valuation going into the ipo. if they maintain the user stronghold that they have been able to exhibit over its 15 years of existence, that is something that investors will also pay attention to and subsequently look at it in a more favorable light. on,hat you are working brian, is to try to bring luxury goods to china. both of these companies are suffering with counterfeit goods, which are all too common in the chinese market. how are they handling that? >> it's a great question. and the bit of a catch as it relates to ali baba and how they work with the west. essentially, what they've done businessve built their off of a mass of consumers of western products. have drivenoducts ali baba to astronomical heights. on the flipside, they are wicking up and saying, wait, we need to own our relationship

directly with the chinese consumer and if ali baba is going to play a role, it will be a constructive role. how do they play a positive role without diminishing the value to the consumer, which is primarily now discounted product? >> another big company is, can these companies succeed on a global scale? leslie, are investors more positive about one or the other? specifically with regard to amazon, for example. >> alibaba has taken a very interesting approach. they will invest in startups in silicon valley. that has in their way to penetrate the u.s. there has not been much evidence that they are looking to replicate their model that they have been successful with in china and bringing it over to the u.s. yet. that said, it's not completely out of the question as an option for them. they are looking to expand globally, but right now, their strategy is to take startups

here and then benefit that way. but something else that is happening in the chinese -- >> something else that is happening market, so much investment from ali baba, buying up strategic investments in other companies, how does that play into these giant players? >> i kind of liken it to the red sox and the yankees about 10 years ago, where they just have more cash and more capability and seem to have greater market value than any other company in china. basically, the market in china for internet companies right now is to get bought by one of these two companies, or potentially by a few other companies. but really, it is about tencent and ali baba in an arms race in china, and then trying to set up the rest of asia, the rest of the developing world, and then make these strategic investments outside of the developing world and outside of china in north america and europe. >> which one is the red sox and

which one is the yankees? >> that is a good question. i look at -- at tencent as the red sox. and ali baba as the group with more money. not to belabor this analogy, but they have been playing moneyball against alibaba and they have been using their position on the mobile device and through messaging and communications to start to win market share in the commerce sector from ali baba. wouldonder how jack ma feel about your comparison. you wrote in your story today that he will be celebrating his 50th birthday on the road during his roadshow. >> absolutely, what a way to celebrate his birthday, right? i hope -- i think he's looking for a gift of a pledge from investors as opposed to a tangible gift. celebrated will be his birthday most likely here in new york. that is the date they will most likely have individual meetings with investors.

a big lunch in new york that monday, and then back to boston and his birthday. >> a quick break and then i want situationout this striking a new deal. later, one of the world's most technologically advanced cars, but to buy one would break the bank for most. we sit down with the ceo of rolls-royce to find out what makes the company's newest model so high-tech. you can watch estimate on your phone, your tablet, bloomberg.com, apple tv, and amazon fire tv. ♪

>> i'm emily chang, and this is bloomberg west. back to our top story, ali baba, tencent, and the china e-commerce market. one of the issues going public is ali baba's affiliate, all he

ay, which technically has a different owner. is this good or bad for ali baba investors? leslie picker covers ipos. y haselationship with ali[a been a little bit, gated -- the hasionship with alipay been a little complicated. what exactly does this new deal means? >> back in 2011, the purpose of spinning this off was because the chinese government restricts foreign investment in payment services. it was a spun it off, bit controversial, because of the way they left some major shareholders, such as yahoo!, out of the conversation.

it was spun off, and what yesterday's restructuring agreement does is, it essentially says, if it were to do its own initial public offering, that ali baba would have an unlimited ability to get a windfall from that. --ore, they were cap did they were captured about $6 billion. -- they were capped at about $6 billion. now that cap has been lifted. >> i remember yahoo! was pretty unhappy with this move when alipay was spun off. is this good or bad for investors? ismost people would say this actually a good thing for potential ali baba investors, because it gives them a greater profit sharing with the overall financial services assets. profit sharing directly when alipay had decreased, it's profit-sharing services increased, giving it your access

to a larger pool of assets. do anaid, if it were to ipo, it would be a bigger windfall. for ali baba in itself, but because of the partnership, it would have to do its ipo in china. and there has been a big backlog of ipos in china. this is not something that we would see in the near term. it could be several years away. >> brian, you also used to be a tech banker at morgan stanley. there are so many interesting and potentially confusing things to potential investors when it comes to ali baba. it's a chinese company, to start. and you're dealing with the chinese government in part. how do you think investors will be thinking about some of these issues on the roadshow? will there be a lot of questions? >> i think the biggest challenge that ali baba faces right now regarding their ipo is the governance issue. is definitely an

amazing, charismatic executive and leader. but he is also relatively hisurial, and he controls company. there are certain relationships i go on behind the scenes that western business executives are not right is used to, that rely sometimes on selective enforcement of different regulations, etc., and china that we are not used to hear. that said, there is not exactly a fair and level playing field as it relates to ali baba versus competitors entering -- entering china, like amazon. alibaba is set to grow in the e-commerce space next five to 10 years. that is what these investors will be banking on. >> leslie, have you spoken to any of your sources about how ali baba and the people marketing this ipo land to prepare -- plan to prepare for some of these questions about potential governance issues? occasionally, ali baba

executives will compare themselves with other chinese executives at companies that are listed. for example, only a certain fraction of their assets are tied to it. that is safer than a traditional chinese company, which has 99% or higher assets tied to that structure, which could be legally dismantled if the chinese government decides to do so, meaning the investors lose their money. oftentimes, they will compare themselves, in terms of their partnership, which gives out that to a group of 27 individuals in terms of nominating the board. -- 27 individuals. in terms of nominating the board, they will compare that to structures like google and say, this is better than that. i see what you're saying about control, but at the same time, is not as bad as it could be. >> leslie picker reporting that the roadshow will be starting on september 3. you.yan buchwald, thank

card readers in physical stores. could this spell trouble for competitors like square and paypal? ♪

but that is a look at some other stories making headlines on bloomberg. for more, you can always visit bloomberg.com. at&t wants to clear out old apple inventory ahead of new

iphone and ipad launches. as a result, discounts on ipads for customers who buy the new one. it is unusual for tablets to be included in shoes. launched amazon local register, which it hopes physical retail stores will use, with news that it is taking aim at competitors like square and paypal. more, crawford, i will start with you. it seems amazon will not stop at anything to get more customers. what is your take on this move? ofthis is just another move amazon being the disruptor. they basically started in retail, then move to cloud services. now that they are at scale, they

are in a very enviable position. they need this machine that they can drive through different kinds of experiments and disruptive efforts. the phone that we saw earlier this year, that is about understanding the retail experience. successful it is as a product, but they will probably learn a lot. this is a double whammy. they will learn a lot and undercut and have none of relevance and move it through the machine and potentially damage some competitors out there. this is the long play. this is a long game and this is a disruptive move on their part. >> 90% of commerce still happens in physical retail stores. this puts amazon into those stores, potentially. square is a seamless user experience, but a full percentage point lower it's kind of hard to beat. >> people are asking whether it is too late for amazon to come into this. you know, if you charge your

users less, they will want to use your product. and i think they are proving there is a market for this instead of creating the market will stop -- creating the market. >> the market sounds big, but when they came to square, you are also talking about smaller merchants. there was a question about how big the market could be. crawford, you have some numbers about the potential of this space. what do you have? we think the mobile space could be a trillion dollar 2023, but that will only represent half of all the payments out there. but there's a lot of upside. when you get into small businesses, there is about 26 million of those in the u.s., but the vast majority of those are filed for tax reasons with

zero employees. with only about 7 million that would have employees and would be in the position to take these kind of products. it is about going after that 7 million, but also about getting a small piece of this fast-growing mobile payments segment. at 2.5% in 2017, there is a lot of room for growth here. >> and paypal is also in this space. i want to ask you about square. they been doing a lot of interesting things. they recently bought a food delivery company called caviar. they have been on the receiving end some -- the receiving end of some bad press lately. are they just throwing stuff at the wall to see what fit -- what sticks? >> i think they're looking be on the payment service to see where else they can be useful, and maybe that would make a broader case for their business strategy. of course, there were rumors that they would ipo, and then

people saying they were not going to ipo. there are doubts about their future. the bigger they say they can eventually be, maybe things will look at her for them. ,> crawford, amazon, paypal which is owned by ebay, can the giants really compete? -- these are giants. can square compete? >> i think it will be tough for them to compete without some kind of bigger partner or acquisition deal. again, they invented the category to some degree and kind of took it to that next level. --hink the scales ride scales rise exponentially. and guess what, when they see you buying something and making a move with the online product, they can now come at you that way. square will need a lot of partners to pull those maneuvers off. the hill gets pretty steep for

square from here if amazon is actually able to move this through. >> thank you both. devices are capturing all kinds of information about the human body these days, information and could be extremely helpful to understanding serious diseases. we will be back with a new type of study that can change the way medical research is conducted. ♪ >> it is 26 minutes past the hour, and that means that -- bloomberg television is on the markets. i'm julie hyman. we do have a rally going on today. the nasdaq is up 1%, that is despite retail sales being worse than expected by economists. thinking this -- some this gives room to the fed to not raise rates as soon as expected.

expected takeover bid from some of europe's biggest drugmaker's, like glaxosmithkline. byge drug companies targeted tech companies will help build up their pipeline. more "bloomberg west" next. ♪

>> you are watching "bloomberg west." i'm emily chang. could wearable technology be to a cure for parkinson's disease? and you partnership was just announced with the michael j foxconn nation for a study -- the michael j fox's foundation for a study. it will try to better understand this the generative disorder. fox's foundation ceo joins us now.

all, diane, what kind of wearable devices are you using, and what are you tracking? >> one of the objectives is to support as many different wearable devices as possible. we support a variety today. we will be adding more to it, including intel's wearable device that we acquired through that company. but the idea is to give patients and research institutes as many options and solutions as they choose. we are tracking many different activities of the patient. we are tracking their gate, hand eir gait, hand tremors, and other information. >> what kind of value does this information have for providing better treatment for parkinson's disease? >> it's very important

information. parkinson's is very complex and there is a lot of variability in the symptoms the patient cap. the symptoms could change within acrossacross a -- and days it progresses. we have no better way to reject what is happening with -- to project what is happening with the disease and how treatment is working. this is the first time we will have the real opportunity to leverage technology to greatly advance our understanding of the disease. >> diane, once you gather the data, what kind of patterns will you be looking for, and how do you find those patterns? >> that is a great question and that is why this partnership with the michael j foxconn nation is so important. foxxe michael j foundation. use algorithms to analyze the big day that solutions, but it takes the expertise of the medical researchers from the

michael j foxx foundation and their network of partners. it is that combination of the technology expertise with the medical researchers core domain expertise that allows us to extract meaningful information from the wealth of data being collected. >> what is the status on finding a cure for parkinson's disease, and how could this help? rugratse making great in finding a cure for parkinson's. it is a very -- we are making great progress in fighting a cure for parkinson's. it is a very difficult and complex disease. a lot has been learned from the genetics. we are trying to find treatments to slow the progression and stop it in its tracks. there's a lot going on with clinical testing. this type of work we are doing with intel is critical. we need better ways to measure the disease, track its progression, so we can determine if we are having the effect we

want. >> diane, do you see ways to focus on other diseases as well? is that part of the plan? >> it absolutely is, but there is a pent-up demand for big data analytics solutions. this will be extensible to other diseases as well as other scientific discoveries, and even extensible into other verticals, like transportation, industrial, retail. so much of this platform is reusable. and our effort and intel is all about making a platform robust, easy to deploy, reduce the use thety so we can data analytics solutions more pervasively. >> what other diseases have you been thinking about, or have discussed? >> alzheimer's is another directly applicable disease to parkinson's. we have also discussed cancer, and the use of genomics data to

correlationa better between a patient's cancerous tumor and the wealth of data available through genomics, which is now becoming cost-effective and quite persuasive -- pervasive. are understand that you starting with 20 patients. how will you scale this? what will it take to scale this beyond that? >> we started with a small study to get a feasibility approach and start to get a handle on managing the data, tracking the data, how the patients use the devices. and we have a plan now to roll this out, do more trials, get more patients involved. the power of this approach will come from large numbers of patients participating actively in improving our understanding of their disease. >> all right, ceo of the michael j foxx foundation, and ceo of intel, fascinating stuff.

we will be moderate -- monitoring your progress. >> thank you. >> thank you. maker is using high-tech features to attract a new generation of luxury car drivers. that is next on "bloomberg west" and you can watch us on your phone, tablet, apple tv, and amazon fire tv. ♪

>> i'm emily chang, and this is "bloomberg west." rolls-royce is one of the most luxurious cars on the road. the british carmaker unveiled high-endt ultra automobile last month. the company says it is their most luxurious way to stay connected at all times. but with technology changing faster than a roles can get to -- from zero to 60, how do they make sure they stay relevant?

matt miller joins us now. are you are car reporter, or are luxury car pull -- car reporter? we're always talking about aston martins or rolls-royce, not hyundai. >> i cover hyundai. but i have had the pleasure of driving in a couple of rolls-royce is. ceo of the with the company. he joins us now to discuss the predecessor to that car. i drove in the coast -- the ghost with you in new york city. now we releasing the series two. this car thatut needed to be improved? i thought it was, honestly, the most amazing driving experience in my life at the time. i don't see a you could improve on it. what did you do? >> rolls-royce is all about striving for perfection. we are always searching for the latest technology and to make

sure our cars are living up to the unbelievably high expectations of our customers. we made it aon, series two with led headlights, and related transmission, and many other features to really ensure customers are getting the best car on the road. a lot of people watching will wonder what the satellite aided transmissions do. could you explain to the viewer how that helps your experience? >> it is basically a connection between your transmission and the satellite guided navigation system. it allows the transmission to think already miles ahead what the right gear is for you. and to really sure that you are always in the best year for your gear for-- the best your driving conditions, and of

course, effortlessly. effortless is the name of the game for rolls-royce. , i have tow years have the best and the newest. i feel like it that way in the car industry as well. ghost two build the so that i don't feel like i have to get rid of my ghost one? you might see the design ,hanges in the ghost series two they are subtle. and for good reason. we are very interested in high resale values, and that is particularly what our clients are looking at them and you don't want to see your car being outdated after a couple of years. that is why we are following a completely different strategy. we are making sure our cars are technology wise up to date, but never change just for the sake

of your changing the design of our cars. we think our cars are timeless masterpieces. suv'save to ask you about , because it is a craze that has gone too far for some carmakers. i think it is unforgivable for porsche to make an suv, and kind of laughable for lamborghini to do so. but rolls-royce has history here. are you planning on coming out with a new suv soon? next year maybe echo >> we have not confirmed any plans yet, but we are working on it. it is an interesting segment for us, and the more we are talking about it with our clients, the more we get feedback from our clients saying, why aren't you bringing such cars to the market? we are making progress. there is no final decision yet. it is very important at the end of the day that it needs to be a true rolls-royce, which lives up to all of the expectations that our clients have toward our bland -- brand.

>> please call me when you make a decision. driving on the streets of san francisco there. obviously, it is an incredibly successful place with silicon valley nearby. are you going to open new dealerships there? you are hitting record numbers. for the first six months, you sold almost 2000 cars, which is a record for rolls-royce. >> we have sold 3% more than the same timeframe -- 30% more than the same timeframe in the previous year. we are looking to open up a dealership here that will take probably between 12 to 15 months before it's open. but we see more and more demand coming particularly out of that area. for that reason, it's time to have a dealer. >> we are showing video of me driving your race, which is your fastback coupe. it is also an amazing experience. i wonder how many of those you are selling. what is behind the big growth in

sales for rolls-royce? the one side, we see the economy is doing good in many countries, particularly japan, for instance. but we also see it here in the u.s., that confidence is in a market. and that makes people also by rolls-royce is. and of course, the third part of wraith,cess story is which is sold out for the next four to six months. it is great to see that. >> 60% sales growth in europe, the first half, especially germany. that must be a huge sign of confidence. >> it is germany, our home market, as well as the u.k. and switzerland, as well as many others. i'm very pleased to see that europe is coming back on track. let's say it that way. >> thank you. emily, back to you.

>> thank you so much, matt miller, our core -- cars correspondent in new york. our anchor mark crumpton joins us now from new york. a 72 hour cease-fire in gaza is about to run out. what is the latest? >> it is supposed to run out, emily. local time there in the middle east. there are concerns because no headway has been made. many issues still need to be addressed. negotiators in cairo have not agreed on a more permanent deal. in the meantime, israel is said to be moving troops to the gaza border, and that could be a cause for concern as we approach the cease-fire hour. >> what else is coming up? obviously, we have been talking a lot about israel and gaza and the very latest. what are the implications of this? the implications for the international community could be huge, because some of the concerns are on the palestinian , stop becauseing

of the blockade of gaza, and also security concerns. we will continue that conversation with willem marx, our correspondent in the gaza strip. -- in tel aviv. >> a big boost from the world cup. will the momentum carry it when the title launches next month? you get a preview, next. ♪

>> welcome back. i'm emily chang. electronic arts is getting an assist from u.s. gold keeper -- goalkeeper tim howard. howard strapped on a motion sensing suit and perform his best moves on the field off the field to help make the game more realistic. he spoke with us about what exactly it was like. >> a really, really tight suit, which is kind of fun, you know.

in europe, i'm used to the tight clothes. oncelly, it's really cool you see yourself up there on the screen, and how quickly they capture the images and how accurately they capture the images, which is really what we are doing here for motion capture. >> tim howard, who others have called a national hero for his amazing performance in the world cup. i would say he is pretty cool. fifa 15 comes out next month. speaking of that, sales for the ultimate team fantasy soccer league was up 80% during the games in brazil. mobilepany also says drove user engagement to a franchise record high. joining us now to discuss this about -- discuss this and everything in sports entertainment, technology.

how much of the booze are they -- how much of a boost are they expecting? booste fifa a initially. looking for initial offerings, and every player helps. cuphoward during the world and his performance, will definitely help later. they do try to make everything as realistic as possible. for example, fans of tim howard are more likely to play this game as well. they recently signed the english premier league. english fans will also be playing along. what happens with the ultimate team is that people buy player packs and try to make their own teams in real life. >> most of the revenue is coming from digital now, right? >> right, 60% of their revenue now includes ultimate teams. nfl, madden nfl, nhl,

these are all franchises. they have this whole sports arena that other companies do not have. >> football season is also starting. our gamers going to be more fifa d on that than because of that? >> they might be. the way that people watch on tv actually emulates the way that they play. they want to play along with the players that they see on tv. that people who watch ifa during the season and not just the world cup are more likely to play all year long. aboutlso want to ask you keene digital, the maker of candy crash. --ly worried about happened

happening seems to be happening. are they a one had wonder? -- one hit wonder? it seems like they have not been able to monetize other titles. >> right, and actually, they did mention they had trouble monetizing their other titles as well. they were not able to monetize them enough to make up or the klein in candy crash. they are having trouble -- the decline in candy crash. they are having trouble monetizing the other games. >> keene digital shares are --king digital shares are down. thanks so much for weighing in. it is time now for the bwest byte, one number that tells a whole lot. our bloomberg news reporter mark milian is here with the bike today. it better be good. >> following tim howard is not easy, but we've got a good number. number 32, which is the percentage of facebook users who

interacted with an ad on their later went on to their computer to do some kind of action within 28 days, usually to buy something or sign up for a risk -- a subscription. whatever they saw and the ad. the study was conducted by the alternator group for facebook, which was trying to demonstrate the effectiveness of its ads in getting people to buy stuff. facebook lands to let advertisers do more of this kind of cross device tracking in the future, which has some creepy potential. but exactly. -- >> exactly. let's talk about that. facebook is letting advertisers track us on different devices. is that the bottom line echo >> that is the bottom line. fleury enables a lot of this cross device tracking and ad tracking. google does something similar to this. facebook is really trying hard to demonstrate that their ads

are getting people to go into a a computer to buy stuff. >> and in terms of the numbers, 32%, that sounds pretty good. at least, from their perspective. >> yes. >> what are the implications? the networkseeing kind of split their a little bit with the move toward mobile. there are close to a billion people who use facebook i merrily from their mobile devices and they need to find a way for -- people who see something on their phone, and then clicked onto their computers are actually being influenced. >> mark million of bloomberg byte thank you for the today. and you can get "bloomberg west" all the time. we will see you later.

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this is "bottom line." the 72 hour cease-fire in gaza news in and. then and lord of compost is killed in a plane crash. and a superfast car that can go nearly 300 miles per hour. we have full coverage of