also liberate millions of people who already have student debt by making it easier to refinance and repay what you owe as a portion of your incomes that you don't have to pay more than you can afford. [applause] >> your degree should not the only path to a good job in

america. you should be able to learn a skill, practice a trade, make a good living doing it so many americans have the talent and the will to in america. you should be able to learn a skill, practice a trade, make a good living doing it so many americans have the talent and the will to succeed. whether they are kids right out of high school or orlando older people displaced by automation and outsourcing. too long promises about the power of training and retraining haven't delivered like they should. it doesn't help anybody to be trained for a job that doesn't exist. here's what we're going to do. we will support high quality union training program. we will propose new tax credits to encourage more companies to offer paid apprenticeships that let you earn while you learn. we will do more including a national campaign to dignify skills training across the board. i think we got to reverse what

has become a kind of common place you. which is everybody needs to go to the college. more than half of the jobs that are going to be available in 2020 do not require a college four year degree. for welders and machinist and health technicians and coders and so many others, let's get the word out. there are really good jobs for people right now and there will be more in the future if you get the skills in high school, at community college in apprenticeship or other training program. i want to acknowledge the great role that the community college here in macomb county has played. in working with companies like this one to make sure people do have the skills.

i imagine some of you might have thinking, that all sounds good. what about trade? after all, trump talks about it all the time. let's start with this, it is true that too often past trade deals have been sold to the american people with rosy scenarios that did not pan out. those promises, now ring hollow in many communities across michigan and our country, that have seen factories close and jobs disappear. too many companies lobbied for trade deals so they could sell products abroad. then they instead moved abroad and sold back into the united states. it is also true that china and other country have gamed the system for too long. enforcement particularly during the bush administration has been too lax. it would make us more

competitive, have been completely blocked in congress. american workers and communities have paid the price. but the answer is not to rant and rave to cut ourselves off from the world. that would end up killing more jobs. the answer is to finally make trade work for us and metropolitan against-- notagainst us. my message to every worker in michigan and across america, i will stop any trade deal that kills jobs or holds down wages including the transpacific partnership. i oppose it now, i'll oppose it after the election. i'll oppose it as president. as a senator from new york i fought to defend new york's

manufacturers and steel makers from unfair chinese trading practices. i opposed the only multilateral trade deal that came before the senate while i was there because it didn't meet my high bar. as secretary of state, i fought hard for american businesses to get a fair shot around the world and to stop underhanded trading practices like currency manipulation and the theft of intellectual property. ly stand up to china and anyone else who tries to take advantage of american workers and companies. i'm going to ramp up enforcements by appointing for the first time a chief trade prosecutor. i will triple the number of enforcement officers and when countries break the rules, we won't hesitate to impose

targeted tariffs. mr. trump may talk a big game on trade, his approach is based on fear, not strength. fear that we can't compete with the rest of the world. even when the rules are fair. fear that our country has no choice but to hide behind walls. if team u.s.a. was as fearful as trump, michael phelps and seimone biles would be cowering in the locker room, afraid to come out and compete.

instead, they're winning gold medals. america isn't afraid to compete. right now thousands of michigan companies are exporting billions of dollars of products around the world. we want them to sell more and create more jobs here at home. but corporations should not abandon profitable operations here in the united states to move abroad. just to give shareholders a quicker return. ceo's a bigger bonus and unions a weaker hand to play. before he tweets -- [laughter] about how he's really the one who will put america first in trade. let's remember, where trump makes many of his own products because it sure is not america. he's made trump ties in china

and trump suits in mexico instead of here in michigan. he keeps saying it's not possible to make these things in america anymore. that's just wrong. we created a website. hillaryclinton.com/make it here. on it, we list 100 places across the united states that are already producing similar goods. one positive thing trump could do to make america great again is actually make great things in america again. let's look at the second question, which candidate will fight for fairness? this is an urgent need. we need to grow the economy and

we need to make it fairer. the tide is not rising fast enough. it is certainly not lifting. since the crash, too many of the games gone to the top 1%. the rules and incentives in our system reward corporations and putting short term stock prices above long term investments in workers, equipment and research. corporate profits grow the economy and we need to make it fairer. the tide is not rising fast are at near record highs, paychecks for most people have barely budged. incomes enough to keep up with the costs of living like prescription drugs and child care. i believe that every employee from the ceo suite to the factory floor contributes to a business's success. everybody should share in the reward. especially those putting in long hours for little pay. i'm proposing a new tax credit to encourage more companies to share profits with workers. more broadly, we will fight for a more progressive, more

patriotic tax code that put american jobs first. right now when a corporation outsources jobs and production can write off the cost. we must stop that. we must make them pay back any tax breaks they ever received from any level of government in aren't growing fast our country. for those that move their headquarters overseas to avoid paying their fair share of taxes, they would have to pay a new exit tax. if they want to go they have to go. wall street corporations and the super rich should finally pay their fair share of taxes. that's why i support the buffet rule. multimillionaires should not be able to pay a lower tax rate than their secretaries.

we should also add a new tax on multimillionaires. crack down on tax gaming by corporations and close the carried interest loophole. something i have evacuate -- advocated for years. compare what trump says. there is a myth out there a he will stick it to the rich and powerful because somehow he's really on the side of the little guy. don't believe it. not when he pledges to rip up bake rules that hold corporations accountable. he wants to scrap legislations a stop polluters. let insurance companies write their own rules again. trump would roll back the top

rules that we have imposed on the financial industry. i'll do the opposite. i think we should strengthen those rules so wall street can never wreck main street again. trump even wants to abolish the consumer financial protection bureau. a new agency a has already returned more than $11 billion to 25 million americans who were taken advantage of by corporations. why would you get rid of that? then there is trump's tax plan. he could give trillions in tax cuts to big corporations millionaires and wall street money managers. that would explode our national debt and eventually lead to massive cuts in priorities like education, healthcare and environmental protection. in his speech on monday, he called for a new tax loophole.

let's call it the trump loophole. it would allow him to payless than half of current tax rate on incomes from many of his companies. he pay a lower rate than millions of middle class families. one nonpartisan expert at the tax policy center described this plan as, i quote, a really nice deal for donald trump. of course it's hard to say how nice because he refuses to do what every other presidential candidate has done and release his tax returns. we do know that the 400 richest

taxpayers in america would get an average tax cut of more than $15 million a year from the trump loophole. then there's the estate tax which trump wants to eliminate. if you believe that he's as wealthy as he says, that alone would save the trump family $4 billion. it would do nothing for 99.8% of americans. they get a $4 billion tax cut and 99.8% of americans would get nothing. just think of what we could do with those $4 billion. we can pay for more than 47,000 veterans to get a four year college degree. we could provide a year's worth of healthcare to nearly 3 million kids. we could fund a year's worth of federal assistance to state and local law enforcement. i think there are a lot of better ways to spend the money. on monday, i'm going to be in scranton, pennsylvania with vice president biden.

he has a saying, don't tell me what you value, show me your budget and i will tell you what you value. well, donald trump wants to give trillions in tax breaks to people like himself. i want to invest it in veteran kids, police officers and so much more. you can then draw your own conclusions about values. it's true that both of us has proposed to cut taxes for middle class get nothing. just think families. he's making a big promise but his advisors have said, he may not stand by them. instead, the tax cuts he doubled down on in his speech in detroit on monday, offer trillions to the richest americans and corporations. what the differences between donald trump and me? i'm telling you what i will do i'm laying out my plans and i

will stand by them and want you to hold me accountable for delivering results. this reminds me of that old saying, if it sounds too to be true, it probably is. that brings us to the third question. which candidate can you count on to go bat for workers and working families? it is not enough to pay lip service to being on your side. we have to recognize how americans actually live and work in the 21st century then offer real solutions that makes your lives easier. we know that women are now the soul or primary breadwinner in a growing number of families. we know more americans are cobbling together, part time work or striking out on their own. we have to make it easier to be good workers, good parents and good caregivers all at the same time.

that's why i set out a bold vision to make quality affordable child care available to all americans and limit the cost to 10% of family incomes. on monday trump offered his first real idea on this topic. because previously he dismissed concerned about child care. he said it was quote, not an expensive thing because you just need some blocks and some swings. now he says, he wants to exclude child care payments from taxation. his plan was panned from the left, right and center. because transparently designed for rich people like him. he would give wealthy families 30 or 40 cents on the dollar for their nannies and little or nothing for millions of hard working families trying to afford child care so they can

get to work and keep the jobs. i think instead, we should expand the child tax credit to provide real relief to 10's of millions of working families. the same families that his plan ignores. that's just the start. the more we do to help working families, the more our entire economy would benefit. for example, guaranteeing equal pay won't just increase paychecks for women, it would boost family budgets and gets incomes rising across the board. don't understand why trump is against that. paid family leave, make it easier for moms and dads, it can keep skilled talented americans in the workforce and grow our economy. that's why every other advanced

country already has it. again, he's against it. raising the federal minimum wage won't just put more money in the pockets of low income families it also means they will spend more at the businesses in their neighborhood. this is something that even the original automakers understood. way back at the beginning of the 20th century. they decided to pay the unbelievable sum of $5 a day to auto workers. when they were criticized by other businesses, how can you pay that much, they had the best answer, we want people to be able bay our cars. this is economics 101.

it will help the whole economy grow and be fairer. protecting and expanding social security doesn't just help older americans retire with dignity. it helps to ease burdens on families and communities. i also believe the same thing about comprehensive immigration reform. we have millions of people working in the economy and paying $12 billion a year to social security even though they are undocumented. by moving toward reform, we will unleash a lot of new income and growth and we will level the playing field so that american workers can't be taken advantage of because undocumented workers can be exploited by employerers. which is one of the reasons we have this disconnect. finally, strengthening unions doesn't just servemembers, it leads to better pay and working conditions for all employees.

i've also said i will defend and improve the affordable care act. for me that includes giving americans in every state the choice of a public option health insurance plan. that will help everybody afford coverage. it will strengthen competition and drive down cost. these are all causes i've worked on for decades. i believe they point to a fundamental truth about our economy. it can seem like a zero sum when you are competing for a job or promotion or contract if someone wins and loses. that is not the full picture. we're all in this together. if we can grow together, we can all rise together. because you know what i like to say, we are stronger together and that's why -- that's the fourth question. the fourth question is key. it's this.

who can bring people together to get any of this done? right. well, i believe i can. i think i can provide serious steady leadership that can find common ground and build on it based on how hard and respectful bargaining. leadership that rises above personal attacks and name calling, not revel in it. i just don't think insults and bullying is how we're going to get things done. i don't think that's the appropriate approach for us. i know it's hard to imagine but there was a time when democrats and republicans actually worked together. i know that's true. i did it as first lady, senator and secretary of state. it's how we created the children's health insurance program which covers eight

million kids. it's how we rebuilt new york after 9/11 and how we passed a treaty reducing the threat from russia's nuclear weapon. i am convinced based on my experience, that we can do this. one of the reasons that i senator tim kaine to be my running mate, he also has a record of working across the aisle to get things done as mayor, governor and a senator. we're going to make full use of the white house's power to convene. we're going to get everyone at the table. not just republicans and democrats but businesses and labor unions, academics, experts, most importantly americans like all of you. i think there are a lot of great ideas out in america. i want you to have a say in your

government and that means we've got to get unaccountable money out of politics, overturn certain's unite -- citizens united. i intend starting even before the election, to bring together leaders from across our economy from a lot of different places to talk about jobs and competitiveness. i hope mark and john can join me. we need the best ideas that are out there making a difference. we need to pull together. the bottom line is this. i'm running for president to build an economy that works for everyone. not just those at the top. based on what we know from the trump campaign he wants america to work for him and his friends at the expense of everyone else. he's offered no credible plan to address working families are up against today. nothing on student loans or the cost of prescription drugs

nothing for farmers or struggling rural communities. nothing to build a new future with clean energy and advanced agriculture. nothing for communities of color in our cities to overcome the barriers of systemic racism. nothing to create new turns -- opportunities for young people. just more trickle down economics with his own addition outlandish trumpian ideas that republicans reject. as we heard him say at his convention, he may believe that he alone can fix own addition outlandish trumpian ideas that republicans reject. as we heard him say at his convention, he may believe that he alone can fix our country but clearly, he doesn't know the people of michigan. he doesn't see the businesses and the labor unions the local governments, the clergy, coming together every single day to make things better. there is still a long rise.

everyone is contributing. that's america at its best. i hope you stay active and engaged and working together to create jobs and to strengthen your own communities. i hope you will work to get out out vote in november. if we are able to win, that want you all to work with me to build the kind of progress that america deserves to see. we're going to do this together. we are stronger together. let's go out and build a future. thank you all. god bless you. [applause] >> you've been together. let's go out and build a future. thank you all. god bless you. [applause] >> you've been watching hillary clinton deliver her economic plan in warren michigan. giving more details what she intends to do.

including tax cuts for middle class road ahead. michigan is on the families. she talked about a child care plan where the cost will be limited to 10% to family incomes. she talked about infrastructure spending connecting homes to broad band by 2020 across the entire 50 states. she talk about student loans making it easier to repay. also high quality union training program. perhaps, the most interesting thing was appointing a chief trade prosecutor as she plans to kill the tpp. bloomberg economics jeanna smialek is live. this is enough to keep her ahead in the poll requests. >> -- polls? >> what we saw hillary clinton do today, the anti-trump. yesterday he emphasized lot of the negatives about the economy. lot of the negatives about the economy. he talked how he lost so many

jobs. participation rate is slower. how the obama economy resulted in tepid recovery. what we saw hillary clinton do today is come out and say, we have some problems but there's hope. here's plans to kill the tpp. how we're going to drive the economy forward. i think how she comes out in the polls is really going to be a function of how people receive those two messages. which one is america looking for. >> she's portraying herself as an anti-trump. what exactly did she say to reject trump's vision? >> one of the major things she did with the speech portray trump as one that helps the upper class. one that lowers tax rates for the upper class, one that creates all of these unfair deals. at the same time clinton was trying to portray herself as someone who's going to much more level playing field across the board. someone who make mobility possible in america again.

i think that was her path she framed. >> did she plain enough how she will plan to pay for all the things she plan to do? >> she certainly didn't. that's something we seen both of the candidates. there a little bit more detail about what clinton is thinking on her certainly didn't. that's something we seen both of the candidates. there a little bit more detail about what clinton is thinking on her website. she's also talked about in previous speeches. with trump we a bit haven't seen a lot of details period. his campaign promised they will be getting more details. >> bloomberg report jean anna period. his campaign promised they will be getting more details. >> bloomberg report jean anna smialek. you will get investigation up to the minute information on election news pollings. let's have a look at us markets now. i want to see what the dow and the s&p are doing in the last 19

minutes. dow up three quarters of a percent. 18,635. s&p up more than half percent. nasdaq is up half a percent. it's time to go to the -- >> as you mentioned, with the major averages rising on all three of them at record. energy stock leaving them there. major averages on track for the record close at the same time, since 1999. that's last time that happened. interesting one, and surprising one. even though energy starts are higher, natural gas is not. that's the out lier today. it's been zig zagging all over the map. it's down to third of one percent. it came in the wake of the weekly inventory report. we talk about the crude oil inventory report. less about natural gas. take a look at the bloomberg here. this just looks at the weekly

change. last week, there was unusual summer drop in those natural gas inventories. then the gains returned this past weekend. we're larger than estimated. it looks like that is what led to pull back in natural gas prices. oil prices are up. they're up significantly today. crude oil gaining 4%, back above $43 a barrel. the catalyst seems to be reporting, the saudi energy minister, there could be talks on how to stabilize oil as next month's opec meeting in algiers. there had been conflicting reports whether some action will be taken on production. that seems to be giving a boost to oil prices by extension to stocks as well. >> thank you so much for that. let's get to andrew cosgrove.

he is going us to talk about more about oil prices. we are seeing this up tick today. there is still a massive overhanging stocks out there. how far is that going to keep lids on prices? >> thanks for having me. i think most likely will keep a cap on prices over the next few quarters. outside of any supply shock that we see. the focus earlier in the year was crude oil stocks. they were coming down a little bit. now the focus shifted to gasoline. we're starting to see refiner, cut runs because margins dropped below the point where it makes sense for them. they pumped a record amounts of gasoline in regards to the strong demand that we have. we seeing demand drop off. that's what people are paying attention to now. >> andrew, i want to mention also the fact that we are seeing this rally in prices.

we have short positions we can see on my bloomberg. we haven't seen since the start of the year. does this mean we could see even further upside in prices just because this comes as a reaction of those short positions? >> yes, that's definitely possible. we've traded all through 50. we're down about 20% from 50 to 40. key technical level lot of people are watching. it's normal to see it here. you have the saudi news that came out today. you have the market kind of overweight and vulnerable to a surprise. positioning see it here. you have the saudi news that came out today. you have the market kind of overweight and vulnerable to a surprise. positioning was maybe over seb oh-- over extended. iran is higher output level. maybe more interested in talking about an cap. i really don't think that's necessarily in the cards.

>> we're seeing something interesting bigger. for more rigs come back online. i want to point out the departments of energy crude oil, total production inventory, you can see this down we go. it increased to a certain extent. does that continue? >> right. couple moving parts there. in terms of rigs. yes, mostly come from private enp operators. we think private enp's took opportunity to hedge. when we saw 12 month future prices rise. you alluded to us production. the trajectory of us production is now softening versus what

expectations were earlier in the year. that was a bullish catalyst. now that turns into more neutral or bearish one as we look out into the back half of 2016. we continue see us producers be more resilient. >> where do prices have to be in order for these us producers to have some substantial boosting activity? >> again, it's going to take a lot of time because there are constraints. you have oil services, labor and capital restraints. we have budgetary restraints. even if we did around 50 or 55, we don't think there will be a year over year production growth. if prices stayed between 55 and

60, that will set up for robust growth in 2018. that's -- that's two years out. we don't think u.s. production can ramp up significantly as you look out into the next year. it's a lower or softer landing trajectory i guess. >> andrew cosgrove, bloomberg intelligence energy analyst. thank you. this year's hurricane season could be worse than expected. just updated its forecast and said we can see anywhere from 12 to 17 named storms. atlantic storms threatening gulf of mexico. for more on the impact to the economy, let's bring in david streit. he join us from washington.

12 to 17. sounds like a like. can infrastructure handle it now? >> probably can. it depends on where the hurricanes end up going. i will say that normally, hurricane tracks are most common in the gulf of mexico in the month of september. next month is probably the time period where if we do get quite a few storms forming, there is greatest risk coming into the gulf of mexico. >> i want to talk about gulf of mexico, it is an important region for u.s. gas and oil. how impacted will they be? >> again, it depends just on exactly what track the storms take. one of the things that's working a bit against the intensity of some of these storms is that we don't have as much favorable conditions in the caribbean. which the national weather service had mentioned today. sometimes that can work against these storm systems from becoming strobing enough to cause problems for the platforms

themselves. that doesn't mean there won't be evacuations that lead to a stoppage in production. at the same time damaging storms probably more difficult come by this season. >> david, forecast can differ substantial federal what actually -- substantially from what happens. >> well, hurricanes are definitely a tough beast to forecast. since they are individual systems. there is the opportunity that we could come in quite a bit higher on the number of storm system. coming in lower, i would be surprised. our personal forecast has been for 16 named storms this year. we're on that high side what the weather service is calling for. >> david, florida is the world's second largest producer of orange juice. how will these hurricanes affect

the region as well as orange production? >> if you get one that comes directly across the region, it can cause damage. it's been a long time since we've seen a storm system affect the gulf coast or florida. this is a situation that statistically, they're greater odds of a strike. but again, it's really up to exactly how the atmosphere is tracking any specific time. once the hurricane forms, we'll have a much better idea. until that happens, we just have to mention that it's a strong risk because of the number of storms. >> are we typically talking about coastal areas inland areas and regions free from danger? >> for the citrus crop, there's not much protection for them. there's not a whole lot of inland to begin with. there's no topography.

>> lab soybean area and coin area. they are grown mainly in the midwest. >> if you're talking about it from a tropical storm standpoint greatest risk will be in the mid south. lower mississippi river valley. that region if a storm like a a cadena, you can see -- katrina. for the midwest, really unlikely it would play a significant role. it still look like a very good midwestern crop coming in. >> david streit, thank you so much for joining us. much more ahead including another look at the u.s. election. this is bloomberg.

>> let's check headlines. news at this hour. mark crompton has more. >> hillary clinton says donald trump's failure poverty and crime. in his economic address on monday. today manufacturing company in warren michigan, mrs. clinton said trump hasn't offered what she called any credible solutions to america's economic challenges. >> when it comes to creating jobs, i would argue it's not even close. even conservative experts say trump's agenda will pull our economy back into recession. >> clinton acknowledged the frustration felt by many middle class americans but said the

country's best days are still ahead. the fbi has high confidence the russian government hacked u.s. democratic party groups. that's according to a person familiar with the findings. the u.s. investigation into the hacks has expanded based on evidence that other groups were targeted in addition to the democratic national convention and the democratic congressional campaign committee. no comment from the fbi, bbc reports two bombs exploded in thailand. on twitter one woman was killed and 11 people were injured including foreigners. there were reports explosive devices had been placed placed in potted plants. we'll bring you more details. russian tv show humanitarian aide convoy driving to the syrian city. this after the russian military said there will be a three hour

cease-fire beginning today to allow aid supplies to go through. fighting between syrian government forces and opposition troops around the city continued this fight the cease-fire. global news 24 hours a day powered by 2600 journalst and i'm mark crompton. >> thank you so much. as mark crompton just told you hillary clinton gave economic speech. now donald trump is speaking right now in orlando on the campaign trail there in front of the meeting of pastors. let's bring in reporter. donald trump also making headlines today. making some controversial comments on this link between president obama and islamic state. he's been trying to portray the obama administration as alien to mine extreme america. what's his strategy here?

>> reporter: let me start by saying, there is no link between president obama and isis. what donald trump said, is that president obama was the founder of isis. it's a very bizarre wild claim that has no basis. what other conservatives believe is that president obama policy created some sort vacuum that embolden them. that's a different debate debate totohave. what trump to do trying to exaggerated terms, make a forceful case against president obama to whom he links hillary clinton ton foreign policy. he's going to be the kind of president who pulls back from the united states abroad reduces america's footprint internationally and focuses on domestic policy. >> we haven't done any tweets from his account yet. donald trump responds to hillary clinton's economic plan. she did mention him a lot.

said she means what she says when she looks for tax cuts for the middle class and he doesn't. >> he'll portray tax cuts helping small businesses. helping ordinary americans for instance. child care tax credit, which is unclear how many people it would benefit. he'll make the case that its ordinary people. cutting regulations will lead to more job creation. in that sense it's a standard republican argument in an election that hasn't really been characterized by the standard. >> trump has not been shying away talking about borrowing money in order to invest in the military and infrastructure. what exactly has he been saying and how does he differ? >> on the issue of infrastructure, it cuts against overall stated agenda. which is to lower taxes or

reduce regulations and reduce the size of government and the economy. that's not what his infrastructure plan will do. he talked about doubling the amount hillary clinton. he proposed more than half trillion in new infrastructure spending. one thing that hillary clinton talked about in part to neutralize trump's attacks, and this weakness the weakness she has with the left the trade. not only she opposed the transpacific partnership, she means it. there are a lot of doubts about it. she said i opposed it now i will oppose it if i'm president. >> thanks to bloomberg politics reporter. check out elec go on the bloomberg elect go. you can see the top news and research, social media content and the polls.

just ahead, digital media initiatives, shows solid growth. this is bloomberg.

>> this is bloomberg markets. i'm vonnie quinn. >> look at some of the biggest business stories. deutch bank has been adding 350 new workers in jacksonville. governor rick scott says deutsche leads. u.k. banking start up has been granted a banking license. it gives smartphone app green

light to offer customers range of services. under the licenses, the 18-month-old start-up can hold customer's money for the first time and test run new products. that's your business update. >> revenue was up more than 59% in the june quarter. boosted by growth and streaming entertainment and cloud computing. >> if you look at our core operations, $2.5 billion of operating income in our core business, that operating income is growing at 38% year on year. if you look at our eps on the nongapp basis it's growing.

we did consolidate the operations. as you know, they are loss making now. we take the long view and even despite consolidating these losses, we're generating 61% operating margins in our core commerce business. what that means is that, it gives us the luxury and the resources to invest very aggressively into new businesses like digital entertainment and our new innovation initiatives such as internet cars and things like that. we feel very comfortable with our margins. we feel that we have a lot of resources and lot of cash flow to invest into new growth. >> speaking of yahoo! is going through sale of core business. has yahoo! discussed with alibaba what it plans to do with the shares? >> no.

they need to figure out what to do with the alibaba shares. they can also do nothing. we are going to be fairly reactive when it comes to that. we are going to leave it to the yahoo! board to decide what they want to do. the important thing for your viewers to know, if yahoo! sold alibaba stake, yahoo! will incur huge tax liability. that doesn't solve the problem even if we are invited to acquire the shares of what they call remain code. we wouldn't be able to cancel those shares legally and we end up inheriting that big tax liability. it's going to be a very difficult question for us. >> joe alibaba has been inquisitive in the past. we've seen massive deals in technology. microsoft linkedin how open is alibaba really big deals?

>> well, when you have 61% operating margin in your core business, you have to think about how to smartly use that extra cash flow that margin to invest for future growth. when it comes to our strategy, we're going to be very disciplined about it. we have set ourselves important criteria including growth if our user base, improving our customer experience and also expanding in our categories. if you look at the large acquisitions and investments that we have made over the last year, they all fall very consistently into those principals. we acquired roku. we want to get into digital entertainment. we partnered and invested with a company called sooning. which is largest electronics retail inner china. we want to execute with them and

strategy to really own the electronics retail space in china. these are examples of acquisitions that we've done. we're open to large deals. we're open to small deals. the important thing is they stay consistent our principles. >> that's on bloomberg west with emily. tune in 6:00 p.m. eastern and 3:00 p.m. pacific. coming up, bloomberg markets it's been one year since china denied allegations. this is bloomberg.

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aí v shery: it 3 p.m. in new york at 8 p.m. and london. vonnie: i'm vonnie quinn. shery: and i'm shery ahn. welcome to bloomberg markets.

we are live from bloomberg world headquarters in new york for the next hour. plus we are covering stories out of seattle and china. stocks are once again pushing past record levels. we are monitoring the movement in equities for the final hour of trading. vonnie: and it is the one-year anniversary since china rocked low bull markets. we are looking back at the roller coaster ride. shery: retailers are once again in focus. macy's stock is surging as the store plans to close shops in response to online shopping. let's head to the markets desk where julie hyman is looking at another record high. julie: all three major averages are set to close at new records for the first time since