>> live from pier three in san francisco, welcome to "bloomberg west," where we cover innovation and technology, and the future of business. i am emily chang. first a check of your top headlines. control of the u.s. senate hangs in the balance as voters go to the polls across the country today. but with all pointing to a republican takeover, can a divided government work? majorityhe former senate leader. >> you can get things done when you have a divided government and you have an opportunity among the way we did, when we had republicans control of the house and senate and president l clinton was in the white house.

>> they need to pick up six seats to take control. -- softbank is current its progress. quite confident we will be profitable for the mid to long term. >> and microsoft and drop rocks are the latest -- dropbox are the latest to form a deal. will stillpanies compete for business users as microsoft is pushing its one drive storage service.

and now to our lead. e-commerce giant alibaba is off to a good start on proving to investors it deserves a market cap $10 billion driven walmart.- bigger than as they invested heavily in digital entertainment and mobile. mobile is playing a larger part in their business. up 29% of revenue across china retail markets came from mobile. us about the mobile growth monetization strategy. that ourt reported

mobile revenues have increased 10 times on a year-over-year basis. if you look at the monetization rate that has been tracking very well over the last few quarters, we feel very good about mobile monetization. and that is because on the user side we are doing very well. if you look at september, our total monthly act of users that come to use our commerce apps were 217 million monthly active users. and on a 12 month basis, for the 12 months ending in seven number, we did $95 billion on mobile. exciting to us. the reason that is all happening is because every user that is to acts throughthat

our mobile devices and it has very strong commercial intent. we are able to turn them into a purchaser on any platform. -- the purchasers merchants on our platform are very happy. that is why our monetization rate is going up. known as theve chief dealmakers since the very beginning. layout your strategy for us. what kinds of companies are most important to you? >> when we look at acquisitions and investments, we take a very long-term, strategic approach. port on us on a one-off basis thomas some acquisitions may not make sense. but on a long-term basis, we are able to take a very disciplined and strategic of roach to these type of deals.

strategic approach to these types of deals. to add morent users, and more user engagement. any acquisition that helps us to create that will be something we are very interested in. this has been a tremendous addition to our business. the other criterion we use is that if some thing that improves our customer experience, we would do that. joining a venture on the logistics front to cover the like good area, refrigerators, air conditioners, and installation, that is the type and from best months that

are going to be very interesting type of investments that are going to be very interesting to us. we are also partnering with those who can expand our product and service categories, because our long-term vision is to gain more wallet share of the consumers and we now have moreover 300 million active .uyers anything that adds to their product offering and service offering, we are interest wed in. >> what about something like paypal now that ebay has done it off?it >> we are currently focused on the china market to the online payment market is relatively underpenetrated. being put ons is

by the financial company, and affiliated company of ours. and all of the, online payment options for our mobile business. we are interested in growing financial services off of those payments accounts. platformshave english , you have chinese consumers apps. global your expansion strategy. as if their armor to thought would want to sell overseas out of china, they can do it on our r express platform. we are getting interest from

retailers all over the world that want to sell into china, to access our 300 million chinese consumers and sell on our global platform. so an example of that would be caused go, which recently set up a virtual store. when you think about a company like cost no comedic about warehouses, the membership club. ,hroughout all of those rules their first foray is to set up a virtual store, and they have been very happy with the results. chinese consumers are buying things that they would not otherwise have access to. because of examples like that, we also have a t-mobile platform that is selling apparel. orare getting a lot across interest from retailers and brands around the world. cookur cofounder and tim

expressed interest in a partnership. how did their meeting go, and what might a knowledge bob, apple partnership -- and what might an alibaba apple partnership look like? >> apple is a great company. they make great products, great devices. there are selling very well in china, and they want to do some in the area payment with their mobile device. alipayough the business have the largest online payment is news in china. so of worse, when you think about apple, and ourselves, there is a lot of areas that we can have a discussion on. we look forward to having further discussions with them about a potential leadership. -- partnership. >> we will be talking more about the interview when we come back.

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>> welcome back to bloomberg west and alibaba just released quarterly report . for more i am joined wife the managing partner of gigi b by the managing partner of gigi b capital. investor, andrly you were very in tune with what they want to get out of these invest. ments. they have in taking stakes in things like lyft and tango. these are second and third tier

players. why not snapchat? see alibaba continued to be aggressive, acquiring assets at around the globe, the u.s. included. largeste the marketplace in the world. if they are looking to acquire companies that can help more buyers come on the platform and engage more with the platform, and conversely more sellers to come on the platform. sellers of different varieties. why not snapchat? was the valuation too high? they are going to look at lots of companies. will make the assessment with each company as to whether or not it is going to serve their needs, to build their marketplace. really interesting business.

it has a lot going for it, and it is also a business that is focused on a specific set of users. alibaba has to look at that investment like any other. it has to determine if it will meet the needs of their marketplace. happensaid that will next year, talking about the paypal.f of ebay and type majorbaba is looking at a global stage. they are looking all around the world. the u.s. is looking at their business going forward. and certainly any transaction with a paypal or ebay is going to get their attention. >> why would they be interested in paypal? entionedjoe m is that he is interested in

alipay, because there is a lot of growth there. joe and his management team are very focused on that. he is looking at paypal as a reflection of what is going on with alipay. apple alibaba and potential partnership. we do not have apple ever being clear about the future, and here and they are both saying they would be open to a partnership. something ise going to happen there. like i think something is already happening. if you take the perspective the all about apple and what happened there last week. ,hey are continuing to boom despite what you hear from london here. pundits here.

ofna is a huge portion apple's growth. million plus 300 people buying on their platform. anyone who was to sell in china will pay a lot of attention to alibaba. >> what does alibaba want out of hollywood? what does hollywood want out of alibaba? this is an e-commerce company, it marketplace really matters to them. they need to add liquidity every day to add value to the participants. the first step in adding content is artificial and g is an investment they made in the platform in china,

like youtube. there are lots of consumers who are very engaged with the content of you will see the same moves with hollywood who they will look to add content, look to add engagement to the plot or more chance liquidity and drives value. >> thank you for joining us and we will be back more. ♪

>> rite aid and cvs caused a stir recently as they ended --ir so hard for apple pay support for apple pay.

are creating their own payment platform. erik schatzker sat down with eeo and as why his company does not allow members to support apple pay. our merchants came together three years ago to create a solution for consumers that will bring more value to consumers. they focused and made a commitment to one another that they would focus on building current the author first priority. that is what they are doing currency is more about coupons and offers to the consumers where they are. it is about more than payments. witht consumers are happy paying with whatever is in their pocket and they are happy to

play with cash, with credit, or debit. pay,are happy with apple google wallet, and list goes on. that to the case improve the experience for the consumer, but the consumer is not asking for a new experience. >> you hit on it. there is no problem for consumers with payment. there is a problem for merchants. if you have to fumble for ,oupons and the reward cards you do not know that you're getting the best value. we want to bring value together. we also want to be able to use this on all sorts of phones, not just one phone. our solution will be available

to every american consumer. when? >> early 2015. we already launched with several merchants in a few cities. we are ready to go nationwide middle of next year. >> early means? that is a relative term. >> it is. wouldk our competitors love to know that. here -- byy bid mid year. >> what do you think of apple pay? are a great company. but they are not the only ones that can innovate. retailers innovate, and if you take a look at what is happening in the whole mobile commerce to starbucks.f

they really figured out how to make a work -- it work. >> are you guys really sticking with these qr codes? it has become a whole lot easier to just tap and go with the biometrics on your apple phone. >> we will see how the story plays out. but the starbucks has in the market for the past five years. you can bring loyalty together with payment. you are codes are a compelling way to go to market. it is about solving consumer problems. >> but if you turn on the end of

nfc, you could take google wallet or apple. pay. >> yes. askane the exclusivity -- explain exclusive -- the exclusivity to me. it is short-lived, it will begin on in a matter of months not years. >> by the end of next year when the english nationwide? >> i think your arithmetic is right. >> so by the end of next year they will be able to decide for themselves when they will turn off? our ofr it is really just a six-month window. >> yes.

merchantappens if a chooses to break ranks now? >> that is their choice. if they do, we still welcome n consider ther part of the family.

as you are watching "bloomberg west," where we focus on innovation, technology, and the future of business. and google are looking to transform the way we are paying things, and amazon is expanding its claimant that form -- it's payment platform. erik schatzker is live from the money 20/20 conference in las vegas with more. >> emily, thank you very much. i'm here with chuck taylor, the vice president of amazon seller services, includes amazon payments. and the global digital director for all saints.

company is a climate -- a client of amazon's on the payment side. can use plain what amazon is doing for you? >> two things we're doing with login and pay with amazon, which is what a lot of clients have signed up to do. you take this trust and security of the amazon check out and embedding it on our own website. are, for the first time ever, extending the benefits of the prime membership off the world of amazon and into our world. >> what does that mean? has the best customers. we look to partner with other brands to partner with. we know amazon customers like to

shop with them in. it's a great plan. an amazonans is customer can come to amazon, search for their products on amazon, find the items, and then and betheir transactions directed to all saints themselves. you can login, it's a seamless experience to go from amazon doll saints. -- from amazon to all saints. they were trying to dress up the brand. >> i could go to your website and use amazon. and also get free shipping, for example. >> you can actually get free next day shipping, up to 7:00 eastern. we have really ramped up in terms of what customers can expect, even beyond the prime.

and find ato amazon, piece of clothing that i happen to like, they would directly back to your website to complete the transaction. how long is this been happening? >> starting today. >> also answers your first real client? >> yes. --re are a few great brands it could be enormous. there are great things that amazon customers by the they don't buy on amazon. redirected anever amazon customer to another company's website? have, where people can shop and see that kind of selection. it makes a lot of sense, even in other rocks that are typical physical goods. this is the first case where we partnered with a great brand. the shopping experience, it looks fantastic. it's very complementary to their

brand. and there you go to do your shopping on allsaints. >> there are a lot of people who would say that like all brands, they are part -- protective of their brand. but why wouldn't you team up with a company that has a huge customer base which is known for exceptional customer service, and have them send to customers to your own world, where we can nurture them. >> that last question is a good question. i could postulate an answer -- why wouldn't you? maybe you are concerned about amazon knowing what your customers are doing and building its own mousetrap to catch those mice. >> two things on that. knows is theon size of the transaction, they don't know anymore.

>> they know the person is buying something from all saints, they know how much that person is spending. and nothing else. is, they dod thing the shipping as well. we happen to be 20 years old. we spent 20 years really making an effort to make the best possible fashion and build the most exciting competitive brand that we can. these guys spent 20 years making life easier when you shop. i don't feel worried about these guys starting a brand that might compete with all saints. our brand is completely unique. --how much is that costume? does that cost you? >> it's a civil model. onstart the transaction the amazon website. they come into our shop on amazon.

when the traffic is sent through to us, we pay a small fee. the cost of the shipping is us, fulfillment is us. we have a shared customer experience. for prime customer, the came to you through amazon, you are offering the same terms or better. >> better terms. >> a question for you, tom. paypal is leaving ebay. so far as i know, i can't pay using paypal and amazon. is that going to change? >> the way amazon would make every decision is what do our customers want? if we see a lot of demand of amazon customers to use paper now, we would put it on. we haven't seen that so far. but we have some other examples

where we have seen payment methods in china that we are putting on to the site. >> i ask because there are some areas in which amazon and ebay/ paypal compete with each other. this is one of them. paypal does some payment processing and fulfillment for small businesses that are trying to build a presence online. competitors can be customers, customers can be competitors. what i'm trying to understand better is the division or ,eparation of paypal from ebay does that create opportunities to work with paypal? >> i think that is possible in the way that amazon might accept ebay payments. we have to wait and see what happens. >> wait-and-see. gentleman, thank you very much. tom taylor and richard ascott.

it's a new partnership, and you just heard about it from the two of them. emily, back to you in san francisco. 20/20k schatzker, at the conference. are you voting today? many candidates are followed on facebook. ♪

>> i'm emily chang. this is "bloomberg west." days after aaron sorkin revealed that christian bale will be playing steve jobs in the has droppedm, bale out of the process.

he joins leonardo dicaprio as the latest high-profile actor to turn down the jobs role. for more on the steve jobs movie, be sure to turn in my conversation on aaron sorkin at 8:30 on thursday. it is election day, and a new study shows that the number of americans useing their cell phones to track campaign coverage has more than doubled. the move to mobile means 20% of registered voters now use their phones for political news, up from 13% in 2010. that's is according to a survey from the pew research center. 15% of voters are turning to facebook and twitter to follow candidates. what does all this mean for today's turnout? is joining me fee is skype from dublin, ireland. member of therd o's that foundation.

matt, i start with you. you're focused specifically on social media. compare the following when it comes to social media, the following of political candidates and midterms versus presidential. as i understand it, there is a big gap. >> is so much lower. there's an even bigger distinction that should be made between midterms and general elections. people forget that we have hundreds of thousands of elected officials and they are making about government spending, most of us can't even name them. they're being elected with 5%, 10% turnout. >> what about the state of voting technology? it's so crazy to me that i can't vote online. it seems so backwards in today's world. >> what's worse is the fact that

we don't have access to the tabulation technology. way thatunderstand the all of these processes work. it's one of the reasons of the open source technology foundation was founded. this should be open-source and transparent, and available to everyone, and use the crowdsourcing of coding that has worked well for private businesses. it hasn't worked in the election technology space because so many vendors rely on proprietary code, and they sell it into governments that had shoestring budgets. i posted about how we have this aversion to using sophisticated technology because governments operate on shoestring budgets. we need to be able open-source the way this is done. we need to have voting vendors competing on commodity hardware with open source software so you have transparency throughout the process.

you imagine the technology being implemented in an ideal world? >> weibo registration online technology already, used by rock the vote and a number of others. we will continue building a variety of techniques. seeof the things that you is that you get three-hour poll lines. we are developing an application called busy booth that will let people know when the full lines are long. it will let the election officials know when the poll lines along so they can think about deploying more workers to polling stations so they can allow people to vote easily. it's ridiculous that we are sitting in this technologically sophisticated world and we are not make it easy to people to vote. >> talk about how social media is action impacting the elections. the choices that people make, and how many people are actually going out to vote? >> i don't think it impacting

turnout or the depth of participation as much as we think. it's certainly a place where people are turning to get information because that's where the conversation is. it doesn't surprise a we are seeing a trend of people tracking the election on mobile and on social networks. at the end of the day, there still hasn't emerged a goto place to give you both information, and also a social experience around voting, where you were talking with other constituents in your district, your neighbors, with your friends who care about given issues, that what the issues are and who the candidates are, who is most aligned with your values. think social media or mobile technology is yet creating that fundamental shift in these dissertation -- these participation models. >> don't some parties and candidates not want technology to be integrated? they don't want people to vote.

>> that is right. we need to stand up and say that is un-american. it's terrible that people get away with suppressing votes, and with operating in these adequate systems. there's so much we can do. expirations, brigade is doing a great job developing next generation software. i have a company where we will knock on almost 4 million doors using our software this fall, especially in north carolina and florida. their innovations going on in the space to allow people to operate. we are trying to make sure that people can trust that underlying operation. that operating system that should be open-source, the same way that facebook and google and yahoo! and twitter, all these big tech companies are heavily dependent on open source software. the idea that this is much of a challenge is just silly. we can do this. >> chris kelly, former facebook

executive. we will see how turnout is at the polls today. and brigade ceo matt mahan. thank you. don't miss the berg television for coverage of tonight costs -- tonight's election results. we've extended coverage of the results turning at 7:00. nighter through midnight at least a. michael all that long. -- it might go all night long. mark crumpton is in new york. >> we have a roundtable discussion on the u.s. midterms. what will a shifting balance of power mean for the legislative process and for corporate america? we will also take a look at luxury retail. i will see you at the top of the hour. i have to tell you, i'm with you. if you can vote for american

idol, liking votes in an election. >> mark crumpton, thank you. we will see you soon. political campaigns of been using tv to push their candidates. a new technology is helping them target who you are and what you watch, when "bloomberg west," returns.

>> welcome back to "bloomberg west." i'm emily chang. political advertising is big business, especially tv advertising. it's no surprise that companies like dish and directv are working to target specific consumers. satellite tv providers are offering campaigns the ability to target you and your neighbor with completely different messages, even if you are watching the same show at the same time. joining me to explain how it

works is any landscape. nnie. >> it works different than broadcast. case, satellite television viewers are subscribers. exactly whoand know is watching what, and plugged and add in for that eventual. >> who is using the service, and how much traction as a getting? >> they just started. dish and directv got together in six months ago, and their competitors started offering it. 200 campaigns signed up for it. 34 some odd states. it had an immediate appeal for the campaigns this year. >> can i opt out? >> yes, you can. further privacy policy, you can opt out.

>> what if they are targeting me the wrong way? what if they have the wrong information about me? >> then shame on the campaign. i think it will be interesting whoou end up having people are conservative and start getting the liberal version of the ads. that will really turn off some voters. >> were talking about satellite-tv providers, but what about cable companies? could they get into this game as well? >> they are not doing the same push that the satellite providers are doing. the satellite providers really got together this year, they hired half, they opened a d.c. office. they started pushing this really hard among the campaigns. i would imagine cable follows. >> annie, what kind of impact do expect here? every campaign is trying so may different ways, whether it's social media or otherwise to reach people.

could this be one of the most effective? >> it has that promise. if the campaign has the resources to use the data they have, there's this one super pac , and they have come up with 100 different personality types. and 20 personality clusters. and they want to send a slightly different message to each one of those clusters. that is a huge amount of work. almost too much, too labor intensive for a campaign that needs to turnout ads really quickly, and responded to circumstances in the news. >> so we will see. >> is interesting. we watch how this plays out. annie linsky. full results tonight at 5:00 eastern with a full hour of all the respect, and in the election

on later to follow. it's time now for the bwest byte , where we focus on one number that says a lot. matt miller in for cory johnson. >> i'm not sure i can fill core issues, but i will give it my best shot. .02 million. the amount of global electric vehicles we expect to be produced in 2020. that's according to an estimate from ihs automotive. i got this little byte out of a story from mercedes, which is making a really unassuming many -- mini. the using the drive train from tesla which they sold. they will still continue to use their drivetrain in their cars. it will be interesting to see how this order thousand car works out. >> matt miller, the fancy wheels grew as always. thank you for watching this

edition of "bloomberg west." ♪

>> from bloomberg world headquarters in new york, i'm mark crumpton. this is "bottom line," the intersection of business and economics with a mainstream perspective. to our viewers here in the united states, and to those of you joining us from around the world, welcome. we have full coverage of the stocks in stories making headlines today. erik schatzker is las vegas for the money 20/20 conference. we're concentrating on to of the biggest races in t'