>> live from pier three in san francisco, welcome to "bloomberg west" where we cover animation, technology and the future of business. coming up, alibaba hits the road as it starts pitching its potentially record-breaking ipo to investors. the first stop is a luncheon in new york city. its recentt to acquisition binge, we will look through some of the tough questions its executives will face in the coming days. facebook ceo mark zuckerberg plans to spend a billion dollars to get everyone in the world online. his plans may already be paying off as facebook makes a progress

in emerging markets. hit 100any says it million active users in africa, 87% of which are accessing facebook via mobile. way,ile sues china's wah accusing it of stealing its robot technology. the suit says it stole part of its smartphone testing robot called taffy and even took a piece of taffy's arm. wah way has been described as a national security threat in court and is a big concern. to our lead story -- alibaba will start pitching its potentially record-breaking ipo. jack mott arrived just a minute ago. some 500 people are expected to be there for meetings at lunch. baltimore,mps up for boston, san francisco and los angeles, then overseas to hong kong. alibaba could raise $21 billion in the offering, making it the

largest in u.s. history if the roadshow goes off as they hope. >> you are watching "bloomberg west." i'm cory johnson in for our bloomberg ipo reporter joins emily chang. tesla has just expanded in to us from outside the waldorf astoria in new york. eight the scene for me. japan, delivering its first right behind me is the model s sedan. elon musk was in japan for the event and talked about the planned battery factory where waldorf astoria. in front of me is jpmorgan, one of their underwriters. they have now found a location in nevada. >> the constraint we are trying at the waldorf astoria, the line to overcome in the next few is outdoor. years is that of battery cell the meeting was supposed to start 30 minutes ago and they've production. overcome that, we seen an overabundance of investors wanting to come in. we're looking at about 800 need factory production to go live. according to the latest reports we expect the factory output i've heard inside the room. 800 investors showed up. would be approximately -- this the executives expected to use is a very rough guess, something the today, jack mott, the like two thirds for tesla s, but one third for chairman and the vice chairman as well as the cfo. that is what people are here to see and that's what they are a bigto get all stop back stationary and other vehicles. >> they plan to pay for the crowd is a good sign. financing coming from astana for the factory. if there's a flub, you don't we are less than 24 hours away

want a big audience on your event.ple's big first day out in front of investors. any notion of what investors a big iphone is expected to be will be looking for as they hear this pitch? unveiled, but will it impress the fans of everyone who follows the company? >> i spoke with some investors after the evaluation was worked with apple to develop announced. they thought the initial valuation was conservative. waitingd, they're previous devices. is not getting a lot of significant risks with alibaba attention, but that might be one and have significant questions of the biggest changes of all. they will be asking today, feature is a lot of new primarily about their m&a strategy. they want to know what alibaba update making the phone a lot smarter. you have updates across the is outside of the e-commerce. board that will take advantage they've done $4.6 billion worth of new assessors and new of deals this year. what does that make alibaba andncements within siri question mark dayton testing in media, social media and a soccer improvements made basically to team. are like how do all of the software. >> is this behind the scenes or is there a user interface they prevent counterfeit items different? >> the ui is not going to change from showing up on their site

and how do they appeal to the chinese government to ensure that much. their variable interest entity tickets, itn movie will maintain its legal status the populate under so that investors can be assured their money is safe? these are potential spotlight. you don't have to -- it will bubble up under the interface. buyers or do they just want to forhat does this mean be there for the show and free lunch? developers? i suspect a lot of developers >> always a good question. to workheir resources most of them will be potential buyers. on the new os and get rid of it is a company and is holding bugs that might be there. are we going to see a slew of many investors. it's not something they can't new apps from existing app takers? they will be able to build live without at the right price. there, 800 investors apps within apps. we will be able to help the they need to ensure they have more demand than supply for the stock so that people i on the functionality -- >> i don't get that. explain it to me. first day of trading. appaking a work management they want to make sure this deal goes off well, so i think it is -- say a calendar application and you want to hook huber into a little of both. uber into that. thank you very much.

for more on what happened with it's basically going to do the these roadshow meetings, let's linking app to app. ring in james geller, chairman of rapid ratings international. that exciting for the platform. previously you could not do that. >> is that hard for developers sauce is out what the inside of another app and connect to that? first, i know you spend a lot of >> there used to working with time filing over the weekend third-party apis and we going over this prospectus will typically do integration with that. stop what jumped out to you? we have other choices were we can create deep link >> a couple of things. integrations. this will be a record-breaking ipo. got thegine you've it could be the world a guest. top $23.3 billion if clippers sup busy ain. what kind of resources does it take -- let's say like you include the overallotment. opentable. tradeduld be the largest iphone, butthem on tech company after google and they have to get ready for this facebook. dig change. what i thought was interesting >> we have had ios eight on our .s who is going to be selling

devices. one thing that will be new is the largest seller is softbank. that translate to about $50 the final spec that comes out -- billion. not planning on selling, unlike we will be able to develop and test across it. yahoo! which is looking to reach then we will be jumping up to at $8 billion. screen size and lastly, what i thought was interesting was the letter to investors where he talks about we have to see how well that happens. the mission, he talks about how form factorough a for the device, we have to figure out what kind of app it's he's going to prioritize going to be. customers first, and investors will it be on the size of the number three. phone? he talks about how he expects controversies to arise but he hopes it will create some type >> city have some notion of what of constructive dialogue. it's going to be. what will the new features leslie is showing you is contain? >> i would love for them to not the retail investors. introduce wireless charging. out, alldevices coming , ithe devices i carry around tepid, muted response.

>> when you are filling a response by the shovelful, you carry around all of these and maybe some sort -- could take a lot of shovels were. when you look at this deal, specifically the letter -- the some form of ultrasound pairing. press tends to focus on these letters as a new trend over the last few years. maybe a tactile keyboard that what do you make of that? produces technology or hardware >> it does not factor into the that will allow you to tap on health ratings of companies. the keyboard. that would be on my wish list of things moving forward. to -- it's trying not going to have much of an effect on how the company is some sort of tactile device. find out what we doing or its prospects long-term, but it is a good effort they are making to engage are going to get to deal with here. shareholders. it has been apple's process in the past. >> i noticed that the sec has to get ready for tomorrow forced them to move this from the front of the offering to because they're going to have to be on for the next few years? further down and that suggests

>> since the passing of steve it is evidence of a real sales effort, not an informative, i'm jobs, it has been about iterating and creating spec just doing this because i care updates to it. about you. they have not introduced they are trying to sell something here. anything revolutionary. >> we need to see everything cook thatticized tim here as an ambassadorial effort. china sees it as being the he may have lost a little spark. bellwether stock for china we have to see what happens, but internationally, but also for the tech industry which they are samsung has been creating device proud of. flagba is going to be the after device with quick product cycles will stop they don't care as much about refinement. bearer for that. this is just a piece of that. apple wants to make things work properly and they take their time with different things. we will have to see. >> i was going to caution that they have a lot of different not be considered as clients out there. are those apps ready question a proxy for the chinese economy. mark >> a lot of them are. we don't look at ebay and say if we wait until the new spec comes it does well the u.s. economy will do well. is weut part of our job we are talking about a rising middle class in china that by 2070 could the 70% of the entire chinese population which is at one point ready for billion forecast the trends and build people. the platforms.

this gives a good sense of how a startup has evolved in china, sensors -- it will take but by no sense is it representative of all the countries in china. advantage of some of that as an investor, you are probably hardware but we have to wait for the hardware to come out and make sure it works properly. betting on the chinese economy to grow. >> thank you very much. but you are betting on the alibaba model and adding on one coming up, does it make sense brand in particular. for all the accessories for the lived in hong kong for brand-new iphone? we will show you what one the last few years. i wonder if the company you know company goes through as it is a as alibaba is what you see in product is announced and their this filing? ability to get ready for mistry product, next. are they one in the same or is product, next.ry this filing more ambitious about what they might be? >> i read the filing and read ♪ through the footnotes. if you read through the footnotes, what you see is what you get. if you are just to take it on the surface based on media opinions and people you may be speaking to, it may not be that representative. i say that because the media tends to pick up on the fact that there have been frauds and it was he listed a couple of years ago. i covered that and they talk about the negative things and

positive things. very seldom do we talk about the middle. this company has been grinding it out since 1999. if you read to the filings and footnotes, they state clearly that there are inherent risks involved in their practice. and they are operating in china. what is legal when they could very well not be legal the next. was talking to someone earlier and i said i don't think you're going to get any surprises at this luncheon because investors know what the questions are and i think you'll get a boilerplate answer, which is there are risks. >> i have attended many of these roadshow meetings when i was a professional investor and you have attended many more. does the stain of all the sales of chinese ipos, the reverse

mergers and the worst of business practices in china, does that stain this or raise investor concerns? are they going to look at this as if it's a clean slate? >> i think it's somewhere in between. investors are cognizant of these problems and it will lead to a variety of questions, but i'm sure the bankers have coached the executive staff to address these and had them off so they do not overtake the broader message that alibaba needs to convey. how are they going to use the cash they've been stockpiling? how will they use the proceeds? how will they ultimately integrate all of that into an entity that can continue on the growth plan alibaba has had. how can i become as efficient the company has again been? those are the things they need to be focused on.

>> is certainly a story we will be looking at. thank you very much. extensivewill have an average of alibaba, including documentary airing tonight with some never before seen footage of the early days of the company. "crocodileremiere of in the yangtze" tonight here on bloomberg television. mark zuckerberg says facebook will spend billions to bring the internet to the world. find out why and what it's going >> i'm cory johnson and this is to cost, next on "bloomberg "bloomberg west." as soon as the new iphone is announced west." tomorrow, accessory companies ♪ will be racing to get cases and covers to the store shelves. it is a mad scramble for these apple partners to figure out what the new phone is going to

be. -- look at what they have do do to deal with this. and -- >> today, you will see is rather drown the tv. we will be watching the announcement live, hopefully on apple tv. >> enck you. thanks for joining us and good morning. >> apple does a really good job at being secretive and holding this information close to the vest. when there are new devices announced, people go out and accessorize them and that is where we compete. november 1 is the availability date which means we have to start running very fast. they will have little microphones, that means all of our cases now need to

accommodate that will stop here's the press release. are taking off. they are not leaving because they are bored, they know what to go do now. from the industrial design, to the web, two-dimensional design, everyone is listening for their bit of information. they will act accordingly. we will start growing and prototyping the concepts. this is starting right now. this is a very good 3-d printer. everyone asks me where my priority is, it is this thing right here. from an inventory position, we have the form factors we will continue selling through. >> we are a very busy warehouse. >> there is a reason we are the

best at it. we are fast and we will probably be on shelves before other people. >> imagine all of those partnerships and to deal with that. these guys have kicked it up a notch. they have recently signed a deal with kate spade, making accessories for smart phones and tablets. now for a check on the stories making headlines outside the world of technology, let's bring in alix steel who is hosting "bottom line was quoted today. are your hands still cold? >> usually they are freezing and cory has to hold them but i'm doing ok on my own. what do you have coming up for the show? >> but start with ukraine -- the president there is oak with but we're putin talking about bringing peace to the eastern ukraine. they say they will continue dialogue and ukraine says before the cease-fire is holding despite some scattered fighting. a security incident at one of >> i'm cory johnson and this is

"lumbar glass." mark zuckerberg london's airport -- police lou up a suspicious package found in says he's willing to spend a security area. billions of dollars to bring the internet to the world. evente the comments at an police say it did not present a wide danger to travelers. hosted by carlos slim. this come after facebook announced today they have more easyjet does not expect than 100 million active users in africa. operations to return to normal until tomorrow. 80% of them connect via mobile. prices falling for the u.s. open men's final. david is the author of "the facebook effect. markthis sound like be it's down about 26% over last year. zuckerberg you know or is this more ambitious? >> this is the mark zuckerberg about $390 is still be of old getting more ambitious as expensive, but you have to have he can because this idea of connecting everyone has been in that star power. >> everyone likes that. the back of his mind the ultimate or of facebook since what else are you going to be talking about? late 2004. >> summer break is over for it only in the last couple of house and senate lawmakers and years that it began to be a possibility facebook did try to elections are coming up in two months. we are going to look at what they can and cannot get that in connect people in every country the next couple of weeks.

increasingly in every economic segment and that's a high priority. coming up in just a few minutes, it changes the total i'm really looking forward to that. >> alix steel, thank you very much. addressable market if you are looking at how facebook can continue to grow. software develops around me salesmanship world has boomed just add more people. next thing he's going to be into a 20 $6 million market. reducing the world to live earth control. but can a similar model be used fax that's not something i have for higher education? we will look a company trying to heard him mention. he thinks this idea of do just that, next. ♪ connecting people with each other is a globally transformative social, political economic tool that he has an opportunity to contribute to. i think there is a reasonable case facebook has the unique opportunity and it is amazing to decided in the last year or two to devote a so -- a considerable torsion of his company's resources to this theect will stop internet.org initiative he announced in january and talked about in early february at right length is a central strategy

where he has partnered with ericsson and samsung. buts all based on mobile, the acquisition of whatsapp is a key element. >> i'm going to read this quote because it's interesting. care about everyone in the world, even if facebook has to spend billions of dollars to make this happen, and the long term, it is going to be a good wing for us and the world. the good thing for us is the thing that concerns me the most. is this a business decision or is this driven by a moral notice of what is possible? the interesting thing about zuckerberg is those things are not necessarily separate his mind. he has come to believe they spoke's long-term interest as a business is tied with economic and social betterment for the

planet. you can disagree, but that is what he thinks. it's a very long term and as investors, some people who hold the stock might not want him to be spending as much time and money as he seems to link to do on a long-term project. you are aer hand, if buy-and-hold investor, he could be in the position to serve in a targeted way for even more people as those countries come up, it could be a really big business in the long run. a users ise in five in u.s. and canada and everyone else's elsewhere. david kirkpatrick, thank you as always. t-mobile heading to court, suing huawei for stealing summits technology secrets allegedly. it involved a smart phone testing robot. details next. ♪

>> welcome back to "loomer bwest." i'm cory johnson. take a successful idea from one country -- from one company and apply it to another sector -- one company is tackling the software around education. this is one of the egg questions

and software -- whether or not you need industry-specific software. do you and do you in education? >> in education, you do. this, the crm does not do the trick. but that is customer relation management. salesforce users follow someone through a sales cycle and then the customer is, interact with the customer, whatever. >> you got it. the problem with that is what i am using that to track my relationships with my customers, at the end of the day, it's about me tracking my interactions with them, not helping make sure they have appropriate relationships. we re-envision that. if students want to be successful, and you want your students to be successful, you've got to make sure they've relationships. there's no debate as to whether

those assets help students be successful, but a crm cannot do it without building a relationship to allow students to inform those relationships. it's a new category of products. >> how much of this is already in play and monitoring how strong they are question marks >> you would be shocked that there's actually nothing. the jury is not out. across higher education right now and ask any administrator whether it matters, they will say yes will stop ask which students have strong mentors and strong theytives for education, are realizing i don't have any way to know which students have and which students don't which makes triage and working with those students be much impossible. lacks who wants this to happen? what level of education?

>> some of our early customers are oregon state university, american public university. recognizing are >> i'm cory johnson and this is they are approaching the "bloomberg west." this may be my relational aspects as much as the content. favorite story today --t-mobile education is really about stolehuawei, saying they content, relationships and purpose. software and secrets from its much relationship has gone into content that they've done that to the exclusion of robot that tests cell phones relationships. tappy.happy -- called the innovation around offering what is already there. they were banned from the facility and are trying to sneak again. it has been amazing what happens to wider audiences. >> absolutely. when partners cooperate. tell me what happened here. >> the notion of actually john grisham's run for his tracking the success or the environment for success as opposed to the content that might be there. money here.

working onot of time truth might be stranger than fiction. allegations of the for-profit education sector and it's been a disaster. you mentioned content and corporate espionage with respect relationships but you don't to a testing robot that test smartphones. mention enrollment. there's nothing more frustrating focus -- john than touching buttons on a touchscreen only to have them not work. this together diagnostic robot ability of a specific alber picked up one of the segments i did and that notion of enrollment as a focus, is for-profitng for phone. there were collaborations schools? >> i see it changing quite a bit. between t-mobile and huawei and in the late 90's to early 2000 the allegation is they tried to two the late 2000, all the effort was put into using the develop its own robot and got a leg up by taking components, internet to find new students. specifications, and software you got into a perfume from t-mobile. >> i thought they stole an arm. business where you are spending recently seeing 30% to 50% on marketing. now what we see is a couple of the new xbox before it came out and they showed me their robot things that have led to it. that tests the controllers for the xbox full stop them are now,t all schools buttons that tapped like fingers including a lot of for-profit

over and over again, thousands institutions are focused on meetingon and success, of times in a minute. is this really that unique a property testing this device? placement of the company is in the backend. in time.ve to go back for-profit schools are doing a decent job. you're talking 2006 when a lot are doing a poor job. t-mobile began developing this the end of the day, particular robot. withs helped them there's a new way to approach reliability. students to help them be successful as opposed to providing a curriculum they can over the years, you and i have talked about apple versus succeed or fail with. >> why sell this as a service? samsung. secrets.ll about trade why not sell it is a big software installation? it's something they perceive as >> for the people purchasing it, something their competitors want they can try it and put in place to have and they have taken steps to try to keep it will stop a lot of what we are confidential. selling against right now are people with $3 million to $5 million plans to try to take the example of a trade crm and turn it into a learning secret as opposed to a patent is the formula for coca-cola. relationship management system andst a year ago, coca-cola entirelyns writing an that particular combination, they cap it a closely guarded new code base. if you are looking to do that, secret. give us a try for a year.

if you give us the impact we are they considered it to be a looking for, we will take the valuable piece of information. entire organization and that allows you to get started simply and easily and prove the efficacy of this approach. there were promotional ads regarding this robot that they >> mating stuff. i love this idea. were using as a promotional. always a pleasure to see you. are they going to be able to for a tradecase the bwest byte -- one number that tells us a lot. sarah frier joins me. what have you got? secret when they were making aspects of this public? >> 28. did they give everything away and this advertisement or was 28 question mark >> 28 is the number of music artists and this something where they held nonprofits getting to use those secrets back? twitter's new button they're t-mobile continues to buy using to allow people to purchase rectally from a tweet. they are partnering with stripe stuff from huawei -- that they have and letting people do it direct. >> interesting. that is a big deal for this already discontinued that relationship. they have had to go and seek company, another revenue source another partner. am not had. i think a lot of people have been waiting for them to come up in this case, their

representative has acknowledged with a way to monetize even greater. >> it's a good revenue source. some wrongdoing. only 28 people can use it, so we thank you very much. will see how they ramp it up all stop it is starting out small it's a fascinating story that we will continue to follow. more coming up right after this. and they're trying to get people ♪ used to the idea of purchasing through twitter. >> and it's interesting they are doing it through musicians. you buy the gear? >> they want to do purchases in the moment. they want to have this urgency to it so you could tweet about an upcoming concert or location-based target. you can buy tickets to the's harrell -- to the p concert. >> any sense whether twitter or amazon tries out a lot of stuff a serious,r is this

long-term focus for them? -- they hirednate nathan hubbard from ticketmaster ad may have been working on it for almost a year. is their first strategic announcement that this is what they are doing. have purchases with amazon and facebook is trying it as well. it will be interesting to see how the two social networks decide to do it. this whenve more on we talk to twitter's head of commerce at 3:30 eastern. it will be some interesting stuff. come back and watch more "bloomberg west was quote on your phone, tablet tomorrow. ♪

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headquarters in new york i am alix steel in for mark crumpton. this is "bottom line today president obama prepares to lay out his strategy to combat islamic states. will apple have a glittering upgrade for its latest gadget release? to our viewers in the united states and those joining us from around the world, welcome. we have full coverage of the stocks and stories making headlines.