and that he wants to simplify the tax code to three brackets, 12%, 25%, and 33%. his speech was disrupted more than a dozen times by protesters whose shouts were drowned out by boos as they were led by the room by security. hillary clinton says trump's proposal would benefit rich corporations and the wealthiest americans at the expense of the working class. mrs. clinton told a rally in st. petersburg, florida, she'll raise taxes on the wealthy because that's where the money is. officials have signed a letter opposing donald trump. they include former members of the nixon, reagan and both bush administrations. they write they're convinced trump would be the most reckless president in american history. doctors without borders says a hospital in sports in rebel-held northern syria has been destroyed by air strikes. the group says the hospital was hit directly killing five children and eight others.

hospitals mostly in rebel held area are regularly attacked. more than 40 attacks were reported in july. global news 24 hours a day powered by our 2,600 journalists in more than 120 countries. i'm mark crumpton, "bloomberg west" is next. emily: i'm emily chang and this is "bloomberg west." coming up, the escalating e-customers war, will wal-mart's acquisition give it enough ammo to really challenge amazon? the clash of two retail titans for e-commerce supremacy. will apple reveal a new iphone next month, we'll give you a first look at the changes in store for iphone users this fall. and my taxi gets in the front

seat with halo. could this alliance in the ride sharing war lead the charge into new territory? halo c.e.o. andrew pinnington joins us to discuss. to our lead, can wal-mart turbocharge its e-commerce business? the big box retailer is hoping to do just that with a $3.3 billion acquisition of a fast growing marketplace. the deal includes $3 billion in cash and $300,000 and wal-mart shares to be paid out over time. it will run wal-mart.com and jet will remain a separate brand. the current head of e-customers will be stepping down. the wal-mart has spent billions of dollars expanding it's online operations but trails amazon by a long shot. at the very same type, overall revenue growth and physical store expansion is declining as well. can jet.com help turn things around? joining us is david kirkpatrick and bloomberg's global head of guru logy, brad stone and

who worked at amazon and ebay. brad, you wrote the book on amazon and wrote the business week cover story on jet which was last year. this is such a young company. they say they're processing 25,000 orders a day, adding 400,000 shoppers a month. there are reports that it's been struggling. is this the best way for wal-mart to spend $3 billion? >> first of all, let's discard the numbers. it's a years old company. you look to the left and right, are either of those people jet.com shoppers, probably not. this deal is about history and people. i don't usually do this but i got to go back to my book, the amazon acquisition six years ago. wal-mart stepped up to that deal. wal-mart was talking to quincy first. emily: that was the company that mark founded? brad: through distraction and lack of faith, they lost the deal. they don't want to be wrong again. mark has a team, scott hilton,

nate foss, the c.o. o. the team can think strategically about e-commerce and know it better than anyone and have a record of offensively opportunity alongside amazon. amazon will get you that box in two days or one day. you can't beat them on selection. what the jet.com folks have been able to do is to a certain extent beat amazon on price or at least find some opportunities to create a brand that will speak to economic-minded consumers. emily: we have been digging into some charts on the terminal. wal-mart's e-commerce business is declining as a percentage of its overall business, it grew 7% last quarter. if it's for the talent and team, is it worth it? >> i think in this game of e-commerce, it's either grow fast or die slow. wall matter realizes that. we are seeing the decline in the e-commerce sector and for them, it is a game of how to get back into the entire war.

one of the crown jewel of this acquisition is really the pricing technology that jet has. we have tracked amazon, wal-mart and jet over the last year or so and as brad pointed out, we have seen wal-mart.com has been expensive, 8 to 10% more expensive than amazon and jet has been treading the same lines as amazon, sometimes even cheaper than amazon.com. this is a good game for wal-mart to watch that pricing technology and bring that in-house and put that into play to potentially grow their e-commerce business. emily: the way the algorithm works, the more you buy, the cheaper it gets. it encourages you to buy in bulk. i did speak to mark last year when the company was six months old. take a listen to what he had to say about amazon in particular. mark: we don't see amazon or anyone else as a competitor. we see $3 billion growing to

$1.2 trillion in 10 years. there is plenty of space for multiple players. emily: david, i want to bring you into this, look, amazon is far away the leader in e-commerce. is this a play for number two because can wal-mart ever be number one? david: the simple answer to that is no. there is no scenario where wal-mart will be number one in e-commerce. i can't imagine that. if you listen to what we're saying here, it's for talent, $3 billion worth of talent. it's to get a better pricing methodology. they're paying $300 billion to reduce their margins and build their market share. i do agree and i think doug mcmillan is obsessed with this issue that they have to become a more digital player. that's critical. it just shows how hard it is or some of these lumbering behemoths to make the pivot they have to make the way they

have to do it. it's a costly way to achieve a desired result. mily: brad, how much can jet really turbocharge wal-mart's e-commerce business? brad: we'll see. the biggest challenge is how do you utilize, how do you exploit the assets that wal-mart has, the huge stores, the distribution centers, how do you exploit that advantage for e-commerce. mark and his team running wal-mart.com, can they get the desired benefit if they're not running wal-mart. kill some of those prized assets for the benefit of growing the online business. that's probably what wal-mart has to do. you do have some of the best strategic thinkers in e-commerce, anyone can pull it off, it's them. emily: wal-mart is opening fewer stores and revenue is also growing more slowly. we actually got a chart to show you that.

the bigger question, what is the future of wal-mart, how do they balance their e-commerce efforts with the physical store efforts? is it more like an identity crisis? >> from a shopper's standpoint, fast forward five years from now, this is a high-tech game. it is not either/or. wal-mart has the physical presence, they have the store network and they have the game already figured out being so close in proximity to the american shopper. they sort of lacked in the high-tech game. this is a shot in the arm for them to bring the high-tech into the picture to get a chance to compete with high touch and high-tech and go head on with amazon potentially on this. emily: i want to talk about the great india sale at amazon. marisa and kevin are on the board of wal-mart. now this guy, neil ashe, who was considered perhaps the number two is gone. we want to make anything of

that? >> it's shows you the struggle. it's a struggle that they're looking at and e-commerce again, it's a tough game, we have seen prices go down consistently. selection is more than 500 million on amazon now. it's a bloodbath. how do you counter that. >> wal-mart.com has a geographic challenge. eir e-customers folks are in california. bentonville is where most of the decisions are made. emily: do you see marisa as the future c.e.o. of wal-mart? >> unlikely. emily: let's move on to india, a huge investment in india, the great india sale is happening there as we speak. david, talk to us a little bit about how big of an opportunity this is for amazon.

david: if you think of amazon being such a powerhouse steamrolling its way over global e-commerce already, if they're competitors are spending $3 billion to compete with them, for them to spend 50, 100 million here or there to build market share in a critical market like india by offering special discounts which they seem to be doing right now, that makes a lot of sense to me. it is a global opportunity. this is where they agree, e-commerce is a global business and it will be probably the central form of commerce down the road. amazon dominates. it wants to continue dominating. it has to do it, therefore, in places like india. emily: china has been a difficult place to crack. india is very different, the language is different. does that make this a completely different story? >> look, i was actually at amazon when amazon acquired and saw a bunch of those in action.

let me remind you that india is much different from china in a lot of perspectives. the output of that, you say the facebook off india is actually facebook. the google of india is google and amazon of india is also becoming amazon. it's not flip card. right now, although there has been a tug of war, amazon right now is clearly winning. the key to that has been definitely the long term investment that they have made in india and the customization that amazon has been able to do in the indian market. they launched a marketing rogram that says we indians. imagine amazon launches we indians love shopping and love low prices. they have taken what they call chai cards in the streets and educated the indian mass about the e-commerce markets. emily: we'll be following that sale over the next couple of ays.

david, you are sticking with me. still to come, apple has yet to confirm it's unveiling a new iphone next month. we learned about some key upgrades in the works, are they enough to bring a much needed stock boost to the company. that is ahead.

emily: more now on wal-mart's $3 billion deal to buy jet.com and one unlikely millionaire to cash in on the deal. he won an online competition, the prize, 100,000 jet.com shares. he joins us from harrisburg, pennsylvania, grinning widely, eric. first of all, congratulations.

just how much money? eric: thank you so much. emily: how much money did you make on this deal and how do you feel? eric: i feel wonderful. it's 100,000 stock options. i'm not at liberty to tell you how much it comes out to, i'm very excited. emily: you work at a bath installation company, you have a family and kids. you invested $18,000 on online ads to get people to sign up for jet.com. what made you so convinced that it was worth the risk? eric: you know, at first it was just kind of on a whim. i started by getting myself in the contest. i was at 230,000 and i got my wife in. i was like at 13 or 15,000 in the contest. as i did better in the contest, i also was kind of vetting jet in my mind and it's really paid off. emily: are you a customer?

eric: yes, yes, my wife more than me. she does most of the shopping. emily: we have been talking for the last few minutes about whether this was really worth $3 billion from wal-mart's side. do you think it's worth it, just as a customer, is this a good investment? eric: for wal-mart, yeah. i think it brings them into the, sort of the 21st century. emily: so what do you think is so special about jet.com? eric: it's hard to say. there are so many things. i think their customer service is amazing. they're shipping stuff fast is amazing. their prices are amazing. it's just fun and i think it's just fun. it's a fun website. it's a fun brand. it's fun to see what you can add to your cart and making prices better. emily: do you use amazon as

well? eric: on occasion. if i can't find something on jet.com, i'll consider it. emily: good to know, eric martin, newly rich, we think, thank you so much for joining us and congrats on that investment. coming up, who raises the white flag in china as a u.s. tech accelerator doubled down with start-ups. we chat with the c.e.o. of rocket space. ♪

emily: if you found out what many other u.s. tech companies realized long ago, china is an alluring trap. we take a look at why it might be time for u.s. web companies to permanently give up on china. >> no u.s. web company has really cracked china and it's time they stopped trying.

google, facebook, amazon, microsoft, ebay all have either been shut out of china or are barely treading water. the latest loser is uber which sold its chinese operations after it lost billions of dollars in the country. apple has done well, but struggled there recently. why can't american internet companies succeed in china? three reasons, one, china's web titans are unimagineably big and broad making it tough for oreigners to be with them. a bigger share of web sevens in china than google does in the u.s. two, china's laws and government interventions favor local companies. for example, facebook and twitter are banned in china and google pulled out a few years ago because it was the target of massive cyber attacks and it didn't want to comply with censorship rules. three, chinese technology has

become really good. local companies make start phones as good as iphones about with features tailored to chinese taste like guessing your age from selfies and the ideas are being copied elsewhere like facebook turning it's chat app mention into another app. the superpowers, the tech prowess and government help has hardened china into an online economy where locals rule. china seems to big to ignore, but also too hard to crack for america's web powers. mily: shira of bloomberg gadfly. and rocket space known for housing start-ups in its early days is putting $336 million into accelerators and tech campuses in china. still with me are david kirkpatrick and duncan logan, c.e.o. of rocket space. you guys provide space to companies like uber, spotify,

in the early days, you give them mentoring, you help them network, but you don't take any equity in these companies. >> no. emily: you want to do it for chinese companies in china, is that right? >> yes. emily: tell me how the model works? >> it focuses on technology companies and these are companies who are trying to become the unicorns of the future. our goal is to help them succeed in that by introducing them to additional capitol and organizations around the world in innovation type of spaces. emily: we talk about the challenges for u.s. companies. is it against u.s. tech companies in china? >> we have a well established platform here in san francisco. we want to create that ecosystem out in china and other cities across china to help u.s. start-ups go into china earlier and also to start

helping chinese start-ups come into the u.s. one of the challenges u.s. companies have, by the time they go into china, they're leaving it too late. by the time they're going in, they already have their copy cat companies operating in china and getting funded in china. our goal is to help start-ups from the u.s. go into china a lot earlier and gather chinese investment into those start-ups rather than their competitor. emily: david, jump in here. david: 331 million which you're raising for this chinese company is a lot of money. i'm just curious specifically what it's going to go for. it's a little hard for me to understand your business model to be honest and where all of that money is going to go. duncan: so the money is going across a number of programs that we're going to be running. some of that will be going into real estate endeavors which is pretty capitol intensive. some of it is going into new programs we're announcing later on this year to help start-ups

be more successful both here in the u.s. and in china. i should add that the majority of the money we have raised is actually going to be spent in the u.s. and europe. we'll be looking at additional sources of capitol for china. emily: why is that? duncan: china at the moment as a lot of capitol chasing good products. with our partnership with the joint venture that we have now funded in china, we can raise more capitol into the entity itself. emily: you have g.g.v., big on expanding practices in china, what makes you think you can succeed in china when so many other u.s. companies have failed? duncan: that was the whole intention of setting up the joint venture. we looked to tackle that market by ourselves or a joint venture. we chose the joint venture because the pearls of u.s. companies going into china has been well-documented. h and a is more than just a

capitol partner. it's a conglomerate that covers across real estate, technology and capitol. with these different divisions, we feel we have a great partner. david: what i find interesting about rocket space, you work with big companies to intersect with the start-up mindset and work with smaller companies when appropriate. can you talk about how this major new step for your company might be affected by that part f your business or vice versa? duncan: our strategy, you're absolutely right, over 50% of our revenue comes from large corporations who are wanting to understand the start-up ecosystem and want to introduce or be introduced to valuable start-ups. in china, that would be no different. what we find is that in china, there are more corporations wanting to get into this open innovation space and learn about start-ups and invest in start-ups, both in china and

the u.s. our two-pronged approach will be highly valuable in both the u.s. and china. emily: should u.s. tech companies give up on china? duncan: absolutely not. there is an enormous opportunity for a tech start-up to get both right, go big in china and the u.s. as much as american start-ups haven't done so well in china yet, there is not many chinese start-ups that have done well in america. if we can be the bridge to make happen, we'll see some really extraordinary companies. emily: we'll keep our eye on you guys, thanks so much for joining us. we'll be right back with more of "bloomberg west." this is bloomberg. ♪

>> i am mark crumpton. let's begin with the news. delta is struggling to restart

operations after a computer failure grounded flights for several hours. andflights were canceled thousands of passengers were stranded. and an australian abducted ined -- kabul. officials say they believe they were employees. nationals have been detained over ties to a cleric. gulan of the co up. he has denied any involvement in the attempt. vladimir putin is holding talks with the presidents of iran to discuss the creation of a transport corridor.

it is intended to increase trade and reduce freight costs. global news is powered by 2600 journalists and analysts in more than 100 countries. this is bloomberg. year inst after 6:30 new york. paul allen has a look at the markets. good morning. >> good morning. let's start off in new zealand. the weekflat after from wall street. a public holiday encourages the overweight to get out and enjoy the outdoors. this is a good start to the day and we will keep an eye on the shares here. updatelease, a trading with cash profits down and the

capital ratio margins remaining unchanged for the bank. the revenue environment is more constrained. bit of a discounts and it is hard to predict the earnings for the bank. we are looking out for the chinese inflation data for today with 1.9% previously. this will reflect a normalization of the food prices. this is some of what we are watching today. i am paul allen. host: this is bloomberg west. the wars are rolling on.

a merger toed target uber. before over sold the chinese business to didi. i set down with the ceo to ask if there were other markets that cannot be cracked. >> i would not ever say that. will get of that scale the quality of execution and it will be foolish to make a blanket statement. how muchchallenge is you do and this is a thing where it is reflective of the chinese situation. when you are a local player, this will give you an advantage with the scales of funding.

m&a andve seen a lot of volkswagen is taking steps. apple is investing. how will this play out and will we see consolidation? know whatifficult to the end game is. player be surprised if a ends up through the market domination and winning the entire globe. is in india.eeing degree and you see the regional domination start to play out.

end up merging or talking together, i am not sure. future, yout siebel see the dominant players taking shape. the for seeable future, you see the dominant players taking shape. you probably have four or five regional champions who can play gamegly and it is a scaled costs in theed center. the more volume pushed through, the regional players start to make sense. to your point, you could start and you are seeing a form of these working together

and moving together. whether you will see one or two globally dominant once and local players beneath, i doubt this. you will see a regional evolution and players will play strong for the for seeable future. >> what are you seeing in other cities and how are the resources helping? dealis is a benefit of the and we now have a shareholder will go after the shares in the state. andsee this capturing data urban transportation is key to this strategic future. they really want to see this business become the dominant player across the european

the ability to help us playn will on a more even playing field. what is the plan to overcome the regulatory hurdles? >> it is important to know that the business plays within the regulatory framework. calleda phrase constructive disruption. the european theory is different from other markets around the globe and i would say that it is more socially democratic and trying to deliver the best resolution for the city. we play within the regulatory is,for structure and this

going back to the original question, one of the advantages that we have, playing within this infrastructure and improving it for the benefit of the city, rather than necessarily changing it. >> andrew pennington there. sticking with european technology, there are food delivery heroes looking to gain an edge. caroline reports from berlin. they are hungry for investment. a key start up here. shareay they may have a and they have the size and the scales over the weekend. this is important.

they have sign-ups on the platform and it is back. and is on the public market they could be cashing in before the rise in the trading. meanwhile, we see other companies increasing investment. you have a key success story beenng money and they have raising $200 million last year and they need deep pockets with the competition building. europeve been scaling in with the carsing and the food.

the race is on to be a dominant player. there is plenty of appetite here in europe. >> caroline hyde in berlin. a major design change to the iphone and we will tell you what that is. this is bloomberg.

product event of the year could be around the corner. analysts expect apple to unveil new iphones and there is the company shifting attention to the growing services business. this is important for the

company. expecty changes to button and a home headphone jack. first of all, we are not going to see a hardware design change. this is what we are saying. >> they will be stepping away from this cycle. they traditionally change this somen and this would make think they would come out with one that looks different. just likewill look the last two models. that is a big change. >> this is merging photos into one to make another photo. >> they will probably say it like that. will are two cameras that

capture color and merge the photo fast and instantly and the picture will be higher resolution and crisper. blur andl be less of a a big focus is at night. the pictures will not look as grainy. guest, before we go to him, tell me about the new home button and how it will work. there is no headphone jack. >> the home button is going to be pressure sensitive and it will feel the same way. this is a vibrating motion this liket will make isactual click and their

less breaking points and people will break the home button less frequently. the headphone jack will be disappearing in favor of bluetooth and the lightning connector. apple came out with the to make headsets that go into the charger. that will be the replacement. >> a lot of this sounds cool and the camera sounds exciting. is this enough to get people excited, if there is not a paid design change? >> i am eager to hear their views on this. feelsis nothing here that like what consumers are clamoring for it and there is not a mark of genius that we expected over the course of many .ears to change our life

a better camera is a great thing and the what and does not seem like it will make a difference. getting rid of the headphone jack could be a mistake. people will react negatively to this and i will. people use headphones for other devices and, if they get rid of this and everybody has to use whatever it is called, the powerline, i think that is terrible. that is a step backwards towards the inconvenience and it smacks of arrogance. >> interesting point. >> there will be an adapter on the headphones and it will cost a little bit. like he said, it will be an inconvenience. the rumor is teaching the public

what is going on and they will .et used to its they changed to the bigger usb to the lightning. >> there was an outcry over the new charger and everybody got used to that. >> everybody will for this. -- everybody will forget about this in a year. it is a small change and it is not magical stuff that we expect from apple. i think that any iphone will sell and we have seen these death cycles a few times. i do not think that there will be a big problem. >> i agree that these will sell. consumers want better battery life. he you think that we will get anything like that? over time, when they perfect

the internals, they will have more room for bigger batteries and there will be better battery life. i do not know if it will the significant. more room toe them integrate more components. >> all right. we hope for more details on the watch. thank you. david kirkpatrick, my guest host for the hour. a pleasure to have you today. carertup providing in-home for the elderly has made $42 million and i caught up with the ceo earlier, who explained how business was different from other services. >> we do not want them to think of us as a technology company. we want them to think it is a

company that helps mom age with grace. car services are transactional. .ou will never see this again with home care, it is a relationship service that has been built up. we serve for very long spans of time. >> we asked about the funding the climatehe said is not as hard as some had feared. >> this is a hard one to raise and there are a lot of companies and you have to have a real business and show that you have both sides of the business creatingnd you are products and you are not overpaying. the financing environment is not

seeing and you are people getting financing for companies. tomorrow, join us for the coverage. at results.ooking this is bloomberg.

host: hulu will no longer the providing free television. paidompany was had a option to replicate cable-television with the internet. comcast andd by abc. shares plummeted on news that

they lost $81 million quarter. the ceo has resigned. lending club is regrouping. here is cory johnson. ceo was resigning earlier this year and investigators are looking into multiple issues with this company. will of the hits keep coming? outhey have tried to figure these problems and they said this is how they are doing due diligence and it was the fact that they were selling loans and causedling truth and it this to seize up in may. host: scott had this to say about the chap her.

>> we have been focused and we are pleased with the progress. 15 of the top 20 investors are act on the platform. >> how convincing is this? this is bad news and it is disconcerting. they showed growth and it is and this one from being a rocket ship to a skate board. the question is where they go. >> what did they have to say? that she wanted to talk about the future and they asked her to stay on. she is now leaving.

there was a guarantee of a higher rate of return. listen to what she had to say. >> over the long run, we anticipate a higher level of investor acquisition cost and we will diversify this change and it may move the contribution margin. contribution, they are saying that it could be less a concern and this is and there may not be a place for them to grow in the markets. >> thank you for that update. >> time to find out who is

having the best or worst day ever. it is delta airlines. they were forced to cancel 650 flights after a massive computer failure. computer interrupted operations and delays continued after the system came back online. it is expected to cost the company tens of millions of dollars and delta has offered vouchers to customers with over three hours of delays. that does it for us. do not miss bob iger. he will be having a conversation about the latest results. this is bloomberg.

♪ studios in new york city, this is "charlie rose." charlie: he is a staff writer for the new yorker, a senior legal analyst at cnn. he writes books. his new book is called "american ."iress in an age of terrorism, the how she morphed into a gun toting revolutionary, a definite fascination. i'm least to have jeffrey toobin at this table.