>> live from pier three in san francisco or at least from bloomberg headquarters in new york, we are "bloomberg west." the e-commerce giant is on track to be the largest ipo in u.s. history. billion.ed $21.1 investors will sell 320 million shares, giving alibaba a market value of $162 billion.

the question is is alibaba really worth that much? and samsung and motorola dedicated jump on apple -- getting a jump on apple created -- on apple. is expected to unveil two new iphones next week. what are the technical glitches and what will apple do in response? we will talk about the elite team of engineers dedicated to solving problems. and after weeks and delays of months alibaba released the latest ipo filing, getting close to the e-commerce company, hoping to raise $21.1 billion. that would make it the largest .po in the stock market history alibaba is going to sell 320 million shares.

would value the company as high as 162 $.7 billion in market cap. can begin its roadshow for september 18, or at least so they hope. lee is the accounting professor and former google china executive. also is our bloomberg ipo reporter on the phone. of something we know from this business from these filings. >> i was just talking about this. you rarely see a company that has been around so long and has an established history, is enormously profitable, and is enormously big. it is really just remarkable. just shows the engine of the home economy.

>> what is your big take away? dropped -- isng this really good business? can they crank out sustainable profits? >> this is the real deal. isn though it is enormous it going quickly. it is operating cash flows. sitting over 5 billion annual cash flow per isr at current valuation it not crazy. >> let me ask you, i know you have been talking about this deal.

is this the placeholder valuation they can say is raising during the roadshow so there's a lot of investor excitement about the deal? asthis is something that, you mentioned, started off relatively conservatively. a if they sense a strong amount of demand from the investors it is something they could raise. this is a bearing -- this is a very big deal. they need to have people that are willing to purchase that much stock and are going to hold onto that much stock. levels they could raise it if they do sense that demand. they have a lot of shares to sell. >> that is one of the interesting things about this. we have seen so many listings of a glue it -- of big technologies

where they offer a fraction of the shares, key aiding what appears to be strong demand by limiting supply. >> they have a dispensable approach. mystery still a bit of and a bit of hangover. >> oh when i look through the deal i go digging for accounting rarely we have such an esteemed guest list. talk to me about what kind of issues could solidify here. >> by its nature alibaba is a more complicated company. they are into online retail.

they are into a variety of other things. alibaba has been around for a long time. 80% of the retail is on one of their platforms. i don't know if the accounting problems are as big as some of trade witheads per -- heads portrayed with the p.m.er companies in 2011 they were relatively small companies compared to this one. >> you are referring to groupon and zynga? i am referring to the chinese emerge or companies. that gavef the guys

us a rhino securities and final force in let me ask you -- and final force. alibaba had acquired some accounting problems with alibaba pictures. i am wondering if there may be signs of anything like that beyond alibaba pictures? >> when you look at the size of that deal, which is only 800 million in a company with $160 entire market cap, the thing was brought. it is a small fraction of the business. play devils advocate, doesn't it make you wonder about their due diligence and their ability to figure out what is real and what is not? what does it mean for the rest of the deals? >> you get paid for the risk

other people are willing to pay you for. the chinese companies are still being viewed by u.s. investors with a certain amount of skepticism. why should we trust their ipos? having said that i think in the case of alibaba what you're solidg at is a very company with very real strong management teams. it doesn't mean it doesn't have its risks. i think the fraud argument isn't a strong one. what order are the cities going to go and? -- go in late? -- go in? >> they will do boston, they

will to baltimore before heading west to hit up some of the big investors intent -- investors in denver and l.a.. they will meet with investors in london and hong kong. they're going to rack up a lot of airline miles with this ipo. >> that will be interesting thing -- interesting to see. . want to thank our whole panel she isn't done yet. bloomberg is going to have , including aerage special documentary on monday night. the documentary draws on over 200 hours of our couple -- of our couple -- of archival

footage. check this out. >> ♪ ]life" ♪ of ♪ >> we're going to see more. 8at is monday, september right here on bloomberg tv. a companyis backing that many are calling the louver of china. towill talk about the battle own china's roads.

>> alibaba backed taxi services that go head-to-head with tuber in china -- with uber in china. it launched in 2010 and works with more than one million drivers in more than 300 cities in china. kong --us now from hong everything is bigger in china. talk about how your business is growing. >> we have limo services to our 100 million registered users.

>> isn't flat, accelerating, the >> it isrge numbers? accelerating. at the very beginning -- that is why our numbers are factoring out. >> they have a backend billing system that works so well and seamlessly. number onethe payment gateway with alibaba. it is the largest payment gateway in china. >> is the functionality similar? similar and it helps

right away. in china the credit card is not as common. a lot of people are using this payment gateway to do some online transactions. >> the transaction goes between the user and a bank account to? talk about what happens to the backend of the user? them on user pops money into it -- >> the user puts money into -- it it will be they pay will be the gateway. the money goes straight to the driver right away. >> that is an interesting difference. i was really struck looking at the website. it iss not look like close to the website. it looks like the uber website. did you just copy what uber did?

localization.t of on the cap we did a lot of localization. , local point maps of locations, a lot of localization to make sure we are fitting into the local market. wouldt sort of features that be different is -- >> i can offer you some interesting features. it is very hard to get a taxi. we included a tipping function .n our app an >> interesting stuff. are the vehicles different? we have seen huber added different types of vehicles,

more like a personal car all the way up to limousines. full portfolio of cars. something around $10,000 to bmw, audi, f class mercedes. carthe way from the economy to the luxury cars. smartphone market is expanding but not prevalent in terms of percentage market shares. are there adjustments you make for that? or will it give you even more growth in the future? >> definitely. i think the market is so big. we stopped -- we started our limo service a few weeks ago.

there are a lot of growth for the rest of the year. >> thank you very much. motorola's smart watch is going on sale today. really interesting to see this .evice ahead of apple we get our hands on the smart watch. ♪

>> motorola's highly anticipated was -- this comes ahead of an apple announcement of its own wrist worn device. look at what he found. pamela me cut to the chase, this is the best smart watch you can buy right now. it is the only

smart watch that realizes the importance of looking good. a smart watches constantly visible. that far. not only is it eye-catching lee round it is made of luxurious materials like stainless steel when you're not looking at the display it automatically dims. this is the battery life of about a day. when you want to recharge you put it into the included dock you can keep on your nightstand, which turns it into a bedside clock. saying, "okup by -- "okyour co-you can google."

navigate me to rockefeller center. >> to get your watch to do more than tell time you have to pair it with an android smart phone. of that smartphone has to have an app on it. link between your watch and some of the apps on your smart phone. google apps are the most compatible. i can see on my watch a friend commented on my facebook post bid to read that comment i have -- i have to open up facebook on my phone. motorola smart watches not looking at others for inspiration. was not the first mp3 player out there but it was the first that made people care about owning an mp3 player.

we are in a primordial phase when it comes to smart watches. this hopes to be the breakthrough. some of the kings and limitations on the software side still make this feel less than something truly revolutionary. really is the best smart watch you can buy right now. unless something comes up with a slamdunk. with theas sam grobart new motorola smart watch. we will be right back. >> it is time for on the markets. of let's take a look at where stocks traded today. we saw a record for the s&p 500. that is despite the fact that the economy added the least jobs all year last month. despite that news investors seem

to read it to say the fed has more running room here in terms of not tightening rates. more "bloomberg west" is next.

>> i am cory johnson and for emily chang. salesforce software is coming to the job own and oculus rift announced it is expanding its sales force. of salesforce already bringing developers into businesses with who will class, android where, and some sun gear. wearables and enterprise software, really? president atice salesforce.

>> we are super excited about wearables. we think it is the next mobile revolution. the momentum has been tremendous. there are tons of applications for wearables, in business, health care, retail, hospitality. rift mentioned the oculus to you what might you do with that? >> i think there are tons of applications. one of the applications we forted for the platform was the ability to go into a car dealership and visualize the car they want to purchase. you can look at the wheel, change the configuration. new experience and helps an automotive manufacturer connect with its customers and

an entirely new way. >> i was going to ask what you're doing in canada. is this parse of -- part of salesforce base? >> we have a large presence in canada. the toronto area is a hotbed of wearable innovation. it is a great place to be. >> i know there is wireless innovation going on. does this put salesforce more in not justconsumers and the salespeople themselves? >> absolutely. roots -- we have become the number one company in the world. what we have seen in terms of

an ovation this platform really reinforces that the salesforce platform, which allows developers to quickly develop things across a variety of places is the number one to build business applications in the cloud. we are not just about salespeople. we are about transformative applications that you can build that connects directly to customers and create entirely new experiences that were not possible before. >> this is a wearable device people wear on their wrists. ?here does that come in >> it is not necessarily about helping people sell their

products, it is about new experiences and connecting to customers. it is a new way for productivity. the number one internal community applications and is also the place thousands of employees go every day to do their work. to't that a natural place connect a fitness program or wellness program where companies and thenying devices providing incentive competitions to increase fitness and wellness because that translates into happier engaged employees. >> they wouldn't even talk about it. it was an odd thing. are you in a position where you are starting to see these devices before they come out?

and maybe get a sense of what might be possible. >> we had some great traction with harvard vendors. we had five more vendors. we added oculus. we get a chance to work with them. i'm what salesforce is helping singularcreate the place to bring together harvard manufacturers in a trusted environment that will transform customer experiences. it is very exciting. the first and only major enterprise software vendor that said this is the future of customer engagement and experiences. we are putting effort and energy in games right now.

from our independent software partners who are creating amazing apps, things we never would have thought of ourselves, it is the next mobile revolution. we are going to see companies on the scale and opportunities of many tuber and yelp being created. keep in mind they are all different. the you can see things in health care, retail, hospitality, manufacturing. >> thank you very much. they are in the silicon valley. you're watching bloomberg west and we are in new york. we are going to get this straightened out.

we will find out why they did that next.

we have a check of your bloomberg top headlines. at this network has an interest in acquiring t-mobile. they made a formal offer. according to people with knowledge of the p -- of the matter deutsche telekom rejected a bit -- a bit. gun in the hping a timely case? hp showed an e-mail that said it platingutonomy wasn't -- was inflating revenues. there are swaths of sales reps

with nothing to do but chase imaginary deals. hp didn't do proper due diligence before they had to break down $8.8 billion of that acquisition. and mark zuckerberg says he sees facebook's acquisition of what sapp as an opportunity to connect 3 billion people in the world. he says facebook feels a big response ability to bring the internet to more people and will spend billions of dollars to make that happen. levi's is gearing up for the anon troll season of the naming rights sponsor of the 49er's new stadium. did the partnership, about and what does it mean for their bottom line? emily chang spoke with ship third in san francisco. she asked him how big a deal this is.

think it is a huge deal for us. him it is a statement. it is a statement about the brand itself and how big the brand really is. him calmly brands can put their name over the door of a stadium? happen.id this how did you score naming rights? >> i met a mutual friend over dinner. i have experience with stadiums before. i used to work at procter and gamble. deal aw how good of a stadium could be for a brand. when we talked over dinner, the whole idea was an iconic san francisco brand, like levi's, matching up with an iconic san francisco brand like the 49ers. it seemed like such an appealing idea for the two of us. the 49er side of things you want to make sure you are doing a deal with a company that is going to be around for a while. we have been around for 161

years. you don't have to worry about the name over the door changing. >> this is supposed to be the most tech savvy stadium in the country. were you surprised it did not go to a tech company in the heart of silicon valley? >> no, because eric inc. -- because i think our propositional stronger overall. there is this relationship back to the roots of san francisco and the fact that we're going to be around for another 100 city one years. the name will not change in five or 10 years as it did at candlestick. >> how do you turn your name on the door into business for levi's? >> there are a lot of different ways we can activate the stadium. i happen to be wearing one. we will activate with some product. this is nfl licensed gear that we will sell in the stadium. we will sell in the stores and it's a big idea, not just one individual piece but we have multiple pieces. it's really more about how we engage our fans and the 49er fans and how we engage them in

the stadium experience. >> you also have a ox where you will be handshaking on deals? >> of course, we've got to turn the stadium into money at the end of the day and make it work for us for business standpoint. we will use it to work with our partners and our customers and use it to turn into business. >> and he plans to increase your ad spending in tv ads or - >> we just launched our new advertising campaign called living levi's and we are excited and will get a lot of airtime and put media weight behind the nfl. we get airtime in the stadium as part of the deal as well so we will be showing living levi's there and we will try to catch fans living in levi's. >> how much did it cost to get your name on the stadium? >> it's public, it's a 20 year deal, it averages $11 million per year, $220 million over 20 years. i think it is such a great deal that last year, 30 -- second

spot in the super bowl went for over $4 million. >> that's expensive. >> it's expensive. we've got the naming rights for the next 20 years which, by the way, includes the super bowl in 2016. since we announced the deal back in may, we have had almost $50 billion -- almost 50 billion impressions around levi's name associated with the stadium. >> who's your favorite 49er? >> bernie davis. >> that was fast. >> i thought this was the 32nd questionnaire. >> have you met any players yet? >> i did ice bucket challenge him and he responded. it's a start. there are a lot of great players on the team. and the coach as well. i've got a lot of favors but ernie davis i think is probably the most amazing tight end in the nfl right now.

>> speaking of pants design, jim harbaugh of the 29 -- of the 49ers is not known for his style. his pants up and nicknamed dad pants because they are not so cute. are you helping them with that? >> it started with his wife. his wife was the one who really said i've got this handsome former pro football player as a husband and looks like he's wearing curtains around his waist. we have been working with him and we did a 30-second spot for dockers which is our other brand called stop dad pants which features sarah harbaugh. it kind of works. when we got jim raab early styled, he looks more handsome. >> what about moving on from the khakis? maybe we could pick out a pair of jeans for him. >> we have had them in levis before. when we announce the deal, we had several players and coach our book came out to the plaza

here and we introduced him to the employees. he was rocking his levi's. i think we had on a pair of 501's. >> there is hope for harbaugh yet. the latestunches iphone next week, people are gearing up for an emergency response. we will be back with more on this elite task force next. ♪

anna apple customers get ready to unpack their new iphones. legions are -- these iphones are first responders. they hope to save the companies millions. this is interesting stuff. >> it is an interesting behind the scenes thing going on after these things are relates.

their china figure out what problems are going on. >> it is an amazing thing. you can imagine this issue that is coming up. the first iphone had some touchscreen problems. the iphone 4 had a problem with the antenna on the outside of the phone. >> there is a design flaw that sweats would cause the touchscreen to short out. millions of these things are coming off the line over the

course as they ramp up. of money.e you a lot >> they are getting ready for this forensic fix. >> you think they would be over and cupertino. they are there. there is a lot of anticipation. try to figure it out. a lot of times these problems are related to something not being connected properly. it is not a huge deal. you have a tonight show comic joking about the a 10. -- the antenna. that is what they are trying to avoid. >> there is a risk. the phone has some problem --

they drum up all this potential with their massive pr around the announcement. that is where the backfire could happen. >> apple really prides itself and they play out very hard because they make the best product on the market. that was the case with maps where the product and not live up to what they are saying. obviously that was a big embarrassment. they are trying to avoid that. >> i was up in redmond looking at the new microsoft surface. they were working on it presumably a while ago. is the warranty

program they have. there are a lot of clout internally. these were some of the key problems that customers were talking about. they are able to marshal a bunch of engineers from different teams. they will insist that testing -- pment them a thank you very much. thatcus on one number tells a whole lot. this is very exciting. welcome back.

>> 250,000 euros is a lot of bread. thatis the amount bloomberg and germany could get fined every single time one of its drivers -- that buber and -- uber in the germany could get find everything time one of its drivers operates -- they are going to ask for the licenses. every time they do not have it, 250,000 euros. >> i was a cabdriver in new york city. inspector asked me to take him somewhere at a bad time of day. not --r telling drivers drivers to ask

about that. >> we will see you on monday.

>> this is "money clip" on bloomberg television. chinese companies see their future in the u.s. i will show you the new hub of china's manufacturing in alabama. ukraine and pro-russian separatists signed a cease-fire deal but this is the beginning. we will explore. in sports am i getting fans back into the game.