mark: you are watching "bloomberg technology." a check of first word news. an iraqi military commander says special forces have driven islamic state out of a town east of mosul. in the meantime, officials say an american servicemember died thursday from wounds received in a roadside bombing. it was the first american combat death since the mosul operation began. more than 100 u.s. special forces are embedded with iraqi units. the u.s. trained forces expected to lead the way in the coming days. british prime minister theresa may is telling european union leaders there will be no turning back from brexit, according to two senior officials. they say there will be no second referendum on leaving the european union.

may's attending her first e.u. summit as prime minister. fox news drew the largest audience, 11.3 million viewers, for wednesday night's final presidential debate. nielsen data shows almost 69 million people tuned in across 11 cable and broadcast networks. that is bigger than the audience for the second debate but smaller than the first that had attracted a record 84 million viewers. tonight, hillary clinton and donald trump will attend the al smith dinner. the candidates will trade one liners in a custom going back 70 years. they will sit one seat apart separated by new york's cardinal , who will keep the comedic piece. i'm mark crumpton. "bloomberg technology" is next. ♪

emily: i'm emily chang and this is "bloomberg technology," coming to you live from the vanity fair new establishment summit in san francisco where we are hearing from some of the most influential voices in technology shaping our future. this hour we will hear from the most candid tech leaders. we will hear from social capital and alibabaunder, copresident mike evans. microsoft shares soaring after the tech giant crushed it on earnings. that is where we start. microsoft shares pumping 6% and excreted trading. the windows company releasing better than expected results buoyed by growing demand for cloud-based software and services. revenue was over $22 billion, up 3%. the company had a net profit over $4.5 billion, up 2%. the ceo has invested in data centers and partnerships to

bolster sales for microsoft cloud products. like azure and office 365. here to break down the numbers, our editor at large, cory johnson. let's start with the turnaround plan. at a high level how is the , turnaround plan going? cory: it looks good. we have seen a couple of quarters of increasingly improved results. the company continues to be a free cash flow machine. we have an increasing level of revenue growth, a second river of revenue growth. the revenue is growing at a faster rate. that is exactly where they want to be. making these big changes while continuing to have some success with windows and office. emily: let's talk about pc's. obviously, so many questions around the future of the pc. intel actually reported strong results around pc's. what about microsoft? cory: microsoft results were not

great in the pc business. maybe not as bad as some had feared, -1%. that could've been a lot worse. this is a windows market. particularly the third quarter, which can be so bumpy. we will see how that might diverge. intel said fourth quarter. there was early ordering in the third quarter. the fourth quarter might look a little light. no indication of the same for microsoft. we will see how that plays out. usually as goes intel goes the rest of the pc industry, and as goes microsoft. emily: let's dig into the cloud, because this is their big bet. a lot of people saying this could be the future of microsoft. how is cloud revenue shaping up versus amazon? cory: fantastic for microsoft. on a year-to-year basis they reported a substantial increase in the cloud business, but

especially in the azure business the business most comparable to , amazon web services. you saw gains of 121%. if you look at it quarter after quarter, what you see is an acceleration of that growth rate. last quarter 108% growth. , 121% growth is really fantastic, even as the business is getting a lot bigger. on a year-over-year basis, that's a giant percentage. we don't know the actual numbers. when you look at amazon's percentage change, it is growing at a much slower rate. it is a much bigger business. some estimates are at least five times as large. when you look at amazon web services, the real growth rate, they are nowhere near as strong and declining. they will happily take 58% when they are looking at such a big business. nonetheless, microsoft growing at twice that rate. emily: all right. our bloomberg editor at large breaking it down. cory johnson thank you so much , for that update. ailing, now to ride h

president sets beyond china. the president told me about the company's global ambition earlier today at the vanity fair new establishment summit. >> we are definitely going global. every market is very different. either through local partnership or because we are a big sponsor , and big believer in local players. we think there is a lot of local knowledge and experience we can leverage, local players. if there are no existing local players, we consider to go by ourselves. emily: so then we will see you compete with uber? >> we will play the global game. emily: joining me now is eric newcomer who covers uber and didi. what did you make of jean's comments? eric: didi just cut a deal with uber. in order to stop some of the bloodletting. uber left china. i think uber was hoping didi

would be less global. i thought it was surprising. as you know, didi has ties to grab, lyft. it has its global tentacles, but to say didi is a global company i thought was surprising. emily: it is so confusing to think about how exactly this partnership is going to work. you have the founder of didi on the uber board. you have got didi doubling down investments in southeast asia where uber is doubling down and didi has a partnership with lyft, uber's archrival. how does this work? eric: to be determined. lyft in particular, it's hard to understand whether didi and lyft are totally in sync. i don't think we have seen a lot of public acts of friendship sense that deal. emily: john zimmer told me last week they are still in conversations with didi. eric: i think there is an understanding that didi and uber are still sort of fighting them both.

didi threw its support at grab and ola. and uber is operating in southeast asia and india. they remain competitive there. right now it is a proxy war. for all we know, didi could have interest in one of those companies or could see, you could see them tying up share investors. didi already has a stake. there is no indication that that is imminent. emily: john zimmer also told us that lyft is not for sale. though you have reported they were at some point were looking for a buyer. eric: they had a lot of talks and then they made a public show of we are not for sale. ,there is certainly a price. one publication said $9 billion. there have been a lot of different prices for lyft. at the moment, i know we are going it on our own. emily: i also asked jean liu about apple, what exactly apple will get out of this partnership.

how is that going to work? this partnership. -- what do you make of what she said, which was probably "use your imagination." [laughter] eric: that quote was perfect. she sort of ducked. the question on apple has always been, was it a matter of apple wanting a good relationship with the chinese government or was it actual, strategic interest? she said our drivers use phones. you can imagine them using apple phones. people are reading her both ways on that. they could be a little bit of both. it seems like a $1 billion investment is serious. you can imagining them tightening their connection overtime. emily: apple has a seat on the didi board. eric newcomer, still wartime, the ride sharing wars. thank you. coming up, with great technological advancement comes great security concerns. we will hear from the darpa

director about the additional measures being taken. a reminder, all episodes of "bloomberg technology" are streaming live on twitter. chuck is outside bloomberg tech --check us out on bloomberg tech tv weekdays 6:00 p.m. in new york, 3:00 p.m. in san francisco. this is bloomberg. ♪

emily: we are watching time warner shares spiking on a report that its executives met with at&t about a possible merger. this according to people from a with the matter who said time warner's ceo is willing to sell if he gets a fair offer. two years ago, time warner rejected a bid from 21st century fox valuing the company at $75 billion. and turning out to darpa, the u.s. defense advanced research project agency, which focuses on the way government agencies can

utilize technologies in the coming years. the main theme behind agency is not about machines gaining control for how humans and machines will work together. joining us now is the director of darpa. great to have you here. >> thanks for having me. emily: we always talk about darpa in reference to self driving cars. you do so much more. talk to me about the most exciting project. >> there are so many. the self driving ship is a great one. a decade ago we read of being competition and asked people if they could build a car that could complete a course without a human being driving it. if you want to find people who won that competition will find them out driving it commercially and all the companies that are going after that. meanwhile, we are off to the next set of challenges. one of the things we are doing, we just christened a few months ago a self driving ship that is large enough and capable enough to leave from the pier and

navigate across open oceans by itself. we think this is going to give the navy a way to do some really important jobs. think about clearing mines from a harbor without putting sailors and harm's way. and i think that's just the beginning. we will find out what else we are able to do. emily: as you say, these are important jobs, and with technology there also comes warning. what are the security risks of technologically equipping our warships, our cars and relying on technology more than ever? >> absolutely. especially information technology. we keep using more data and more computing systems and more networks because they are so valuable. that is true in our personal lives and in our business lives and certainly true for the military and national security. with that comes more and more attack surface. one of the things we have been working on is really asking the question, how do we win at cyber security? how do we take classes of vulnerabilities off the table?

how do we develop machines that can help us scale cyber security? our most recent big competition was the cyber grand challenge , where we challenged people to build supercomputers that could look at software and figure out where the flaws were. build patches, identify flaws in their adversary's code. we built cyber war in a box. be blessed -- we let these machines go at it. they were really quickly able to find flaws. when you think about giving those kind of tools to the humans that do cyber security, you can see how we can make some big advances. emily: you are also involved in online counterterrorism. talk to us about how new technology can improve what exactly is happening online. >> i will tell you a story that started with one of my program managers a few years ago.

he went to a conference he learned to his anger that you can buy a human being for $90 in the world of human trafficking. he came back committed to doing something about that, and he started talking to law enforcement, found they were searching the surface web indexed by google. chris set out to build tools for them that do deep web searches , looking at the dark web, all the places that bad actors hide. those tools are being used by d.a. offices to go after human trafficking with hundreds of cases they are investigating. so far we are at 27 indictments and three convictions. emily: there are a lot of concerns about the dangers of new technology, about technology taking jobs, eliminating jobs. you're on a panel that is not "mand then -- not called versus machine," but "man meets machine."

what does that say about your viewpoint? >> i think it is the right question to ask because the really interesting part about all this technology is what are the humans going to do with it? the long arc of history says we are going to make amazing advances, and we are talking about the potential of these technologies. we also know it is very disruptive. we all experience that in our personal lives. i think we can see the impacted it is having on unemployment. i think these are big challenges. we technologists need to be thinking about that, but the whole country and the whole world, thinking about in dealing with these disruptive changes so we can get the benefits. emily: all right. you will be on stage in just a moment. head of darpa, thanks so much for joining us. up next, we talk politics and the inner workings of facebook. this is bloomberg. ♪

emily: facebook board member and venture capitalist peter thiel will give a speech october 31st in washington to address

the presidential election. he has become one of the most divisive figures and silicon valley from his public endorsement of donald trump. take for example amazon ceo jeff bezos, his response on stage at the vanity fair summit earlier today. >> peter thiel is a contrarian, first and foremost. and you just have to remember the contrarians are usually wrong. [laughter] emily: bezos went on to say that trump is "invading our democracy." stay with politics, we caught up with social capital founder chamath palihapitiya. as a former facebook insider, we wanted to know how he thought thiel's support for trump might be sitting with the rest of the board. i started by asking him what is at stake on election day. >> i think everything is at stake. at the end of the day, i think there are two things that are going to get judged on november 8. the first is just the subjective thought around the future of -- -- of pluralism. do we believe that the more

inclusive, diverse set of people around the table are more capable of building a better off country, or do we take a step back toward something that seems a little bit more oppressive? that is the first thing. the second thing is, do we believe in a future where the substantive quality of the person that's in a point of leadership, versus someone who can market themselves, and can we see through those differences? those are issues that transcend past 2016. there's still a huge amount at stake. >> you are a fellow venture capitalist -- peter thiel contributed more than $1 million to the donald trump campaign. you have worked with peter thiel in the past and have said on stage here that you would have a hard time working with him now. i wonder what you think the impact will be for peter, considering that this is an unpopular view to hold right now in silicon valley. >> i have known them for a long time. he is an extremely constant individual. i think he thinks through issues deeply. there is a whole set of reasons i do not understand because i have not spent the time, to be

fair, to understand how he has gone to the point of view he has. hopefully, he has some broader mandate and agenda. maybe it is hoping to see the rise of a third political party. i don't know. personally for me, i find it really troublesome, and it doesn't map to my morals. but i support his right to choose. emily: there is a debate about whether they should kick them out of their partnership, whether facebook should take them off the board. you have looked at facebook for a long time. what are these companies do? >> i think they have to follow their moral and ethical framework of how they want to run those organizations. i can't speak to what facebook should do because i do not work there and i am not the dominant shareholder. i can speak to social capital. we decided that we are going to spend the time trying to create more quality for everybody and create a more bottoms up world. i think that is fundamentally about a positive view of inclusion and pluralism.

so i can't stand to work with people at social capital who have views that have transcended politics and have now entered this quite gray area that is bordering on hate. i would have a really difficult issue with it. emily: you would kick him off? >> for social capital. i think so. example if it was mitt romney v. , obama. that is politics. i'm not sure this is politics anymore. i would have a real moral issue and ethical issue. >> you see the facebook executives -- do you think this is a divisive issue? >> i think it must be. i think they want to create some someone's of fairness. that's some semblance of fairness. at the end of the day, this is a person that has been legitimized by many tens of millions of people. we need to take a step back and unpack, where's the legitimacy in the movement?

he represent that we can take away and say, these are things we need to fix for everybody. i think that it probably causes organizations like facebook to be in a quandary. emily: peter thiel represents an extreme end of the spectrum in silicon valley. at least among facebook board members. is that of any value to facebook? or is that a detriment? >> no, i think it is valuable. the solution is not to listen to people who think the same thing you do. the solution is you have to have people around the table. the question is, in what context are they around the table? i think we have to unpack. should he have a voice? absolutely. does he have a right to do this? absolutely. that is different than what role should they play and other management or governance. those are specific issues that come down to the people in those organizations deciding that. >> the topic on twitter came up this morning. were you surprised that disney and google and salesforce seems to come up to an acquisition and then stepped away? >> no.

there is no industrial logic for any of those companies to buy twitter. twitter is best left in the hands of a group of investors who can take it private and rationalize the infrastructure and can clean up a lot of the abuse and spam, and fix the employee morale problem. i do think it is an emerging pillar of communication. it is an important part of the media landscape. it should exist as an independent company, but right now, it's in such a point of disrepair we need to take a step back to fix it. emily: you have a hedge fund that is outperforming the average hedge funds. i know you are long on amazon. you have been positive about jeff bezos. when you look at amazon versus facebook versus google versus apple, do you see a future where amazon is head and shoulders above the rest? >> absolutely. it is the most durable business built anywhere in the world. emily: that says a lot given your history with facebook. >> i think facebook is fantastic.

facebook is about creating consumer intent and behavior. the problem is that those ebb and flow. facebook has done a fantastic job in acquiring these new sources of expressions. but amazon is in a fundamentally different business where it's dysfunctional utility. they do such a good job but there is no emotional reconsideration that happens. at no point does a prime subscriber think, i'm going to get in my car and drive to target because that makes me feel better. so, that's just a very different set of problems. as long as amazon can continue to invest in the customer experience, then they will win. facebook will be in an evolving arms race where they have to constantly look to see what are the emergent behaviors we do not understand or yet own. and then go and build or buy those. it is a much harder problem to solve over 20 years. emily: that was the social capital founder chamath palihapitiya. still to come, with tesla racing ahead to a driverless car

future, where does that leave the likes of google? we will check in with the google and udacity founder next. this is bloomberg. ♪

on sure urns filled to fresh six-year lows. er was currency surged aft mario draghi hinted his bond buying program the be extended. china's overheating property markets after authorities stepped up codes on home buying. prices rose to 63 of the 70 cities attracted by the government, down from 64 in august. they fell in six cities, compared to four earlier.

some policymakers are seeking to avert a hot housing bubble -- a housing bubble without killing a major pillar of growth. hong kong bracing for the imminent arrival of a typhoon. ferry and bus services are suspended. almost 700 planes have been canceled or delayed. no training in the markets, at least in the marking --trading in the markets. the storm has killed at least eight people in the philippines on thursday. local news powered by more than 23,000 journalists in more than 120 countries. this is bloomberg. checking the markets, let's see how japan has come back online. a bit of traction, but higher by 2/10 of 1%. we are gearing up for earnings ramping up in japan next week. nikkei had a solid session

coming through thursday's trade, holing at its highest level since the end of april. you have seen the shanghai market go into that break, down 4/10th of 1%. we saw home prices rising and fewer cities in september than was expected. 63 out of 70, down from 64 in august. a flood of positive movement from the ip space. hong kong closed for the morning session as we await the imminent arrival of a typhoon. the australian sharemarket down by 2/10 of 1%. a moderate weakness in the health care phase, normally seen as a defensive buy. health scope has fallen by 18% as it came through with slowing growth in its third-quarter revenue. ramsey health under pressure. sky city done by 12%, on track for its biggest decline since lifting in 2096. also disappointing third-quarter numbers.

concern about the overall gaming space. we had risks from lawyers and china earlier. overall next movement in southeast asian markets. that is the state of play across asian markets in the final trading day of the week. ♪ bloombergs is technology live from the vanity fair new establishments summit. elon musk is accelerating plans to roll out self driving cars. in a product announcement wednesday, elon musk announced all upcoming model three sedans will be equipped with fully autonomous technology, with tesla's existing software autopilot under increased scrutiny after a fatal accident in may. joining me now to discuss the state of this self driving industry car revolution, a visionary, the inventor of google self driving car, sebastian thrun. always great to have you. i never forget we met in a google self driving car.

five years ago. sebastian: you are courageous. [laughter] emily: it has come a long way from there. sebastian: it was in the back seat too. emily: what do you make of this turn by elon musk? sebastian: no surprise at all. he wanted to drive self complete course, and his autopilot is come that's not good enough that you play enough attention. he has been very clear. the next generation he could go to sleep. emily: does this mean any cars will see semi-autonomous? or is that dangerous? sebastian: i don't think it is dangerous if you know what you are doing. autopilot has been used in planes, and they don't replace by the title. they just suspend to be better pilots. i keep my eyes on the road always on. at the same time, once technology is ready to be completely self driving, we can do better things. as usual is putting aggressive deadlines on himself.

do you think he can deliver by 2018 with fully autonomous cars? sebastian: 2018. i hope he can believe -- deliver. in two to three years, it should be possible. emily: talk to me about google. you worked there for many years. we have seen some people leave that part of the company. why haven't they shifted to cars? sebastian: google is phenomenal. they are driving cars every single day in mountain view and los altos, completely autonomous. even the cars to drive alone. i don't know the product spain today, but i think by far they have the best technology. emily: but why has it taken so long? building these so autonomous cars driving is like , this crazy thing that happens once every five years that picks you up. we are not quite there yet, but we are almost there. emily: apple has scaled back their own car plans. we understand they are focusing on the platform, not making an actual car.

the project has struggled. what do you make of that? sebastian: it would be sad if they moved away from building a car because apple is such a , design company. there are so many knots and complexity, i would love somebody like apple to. through. i wish tim cook would just do it. emily: that is interesting. building a car is incredibly complicated. sebastian: it is true, but elon musk has proved a silicon valley company can build a great car. a tesla is a great car. it is not great and every dimension, but you walk in, you have this amazing display. there is almost no buttons, you hit autopilot, the car drives itself automatically. the innovation in this space -- innovators come from different angles. they come from new companies. emily: what about uber, who has been aggressive about self driving ubers on the road in pittsburgh?

what do you see as the future of self driving cars in ridesharing? sebastian: travis and other rideshare companies have been very vocal. it came in a way they could not drive from one generation to the next. the right thing is to invest in new technology because he owns many customers right now. if someone else can offer the same service for half the money, he is in trouble. emily: elon musk has this idea that he will start all right sharing network based on ownership. owners will actually lease their cars or lend their cars to the network. whereas with uber, it is unclear who owns the car. sebastian: in the business of selling cars, he's in the business of giving people rides. he does not like the notion of this ownership. this is a service. the car comes to you, fix you

up, delivers you, disappears. at the end of the day, that is not a bad idea, because you don't have to own cars, part cars, you can utilize cars better. you can get the car that we want. it is a question of who will be there first. emily: 10 years from now, paint the picture of ownership and ridesharing for me. what does it look like? sebastian: what we want as citizens is transportation. most of us want to get from a to b. ridesharing will be cheaper than ownership. for most of us, ridesharing will be the cheaper alternative. you don't have to look for parking anymore, drop us off in the front of store or riddenant, and can be around when we are drunk. this will eventually percolate into the countryside. emily: so who wins? sebastian: i can tell you that udacity is in the building of some driving cars. we have students working on

these projects. we have them driving on parkways successfully, and we hope within a year, it will be the same as uber and google. emily: you are offering nano degrees for those that engage in this technology. sebastian: if you want a degree, come to us. we have 13,000 people applying for admissions in our self driving economy. these are more students than -- emily: where do they want to work? do they want to go to tesla, apple, google? sebastian: we have 14 different hiring partners, cleared for 15 other companies. nvidia, intel, many firms. out the skills required to do this is not written down in any university because so brand-new. we have the best of the best. teaching us how to have a self driving car. emily: you just need to clone a blood of sebastians. sebastian: you can shoot higher

than that. emily: always great to have you. thank you so much. i know you are going on stage. we will be watching. more of the coverage from the vanity fair new establishment summit. we sit down with the founder of the cooking lab, nathan ceo ofd, former microsoft. and on bloomberg television, we bring you the best interviews from the week, including the uber board member. tune in saturday. this is bloomberg. ♪

emily: nintendo unveiled the long-awaited new gaming console, the switch. they showed off the tablet like console that will allow gamers to play at home and on the go. additionally, the portable part comes with its own screen and

two detachable controllers, allowing two people to play. shares rose in tokyo trading. the product is expected to go on sale in march. former microsoft cto and intellectual cofounder nathan knows a thing or two about innovation. the visionary tapped on both of his passions for food and technology by finding the cooking lab, a state-of-the-art kitchen and laboratory. i sat down with him earlier and discussed how technology will impact the future of our food. nathan: we have already seen tremendous change. we can import food from around the world to different places. so when i was a kid, sushi is extremely rare. now there is sushi in every mall. and in japan, it was rare to eat pizza. now there is plenty of pizza. [laughter] the interesting thing is, we are pretty much done with that kind of import, because most major cities in the world have most every cuisine there is. maybe one or two little

cuisines, something like sushi or szechuan food or some other big cultural cuisine is a rare discovery. we kind of found all of those. going forward our need for , variety is involving invention. emily: how will we eat differently? nathan: the things people care about in a given era change. there was a time from the 1950's up through the 1980's where most consumers were focused on cost and convenience. so tv dinners and frozen food and lots of process stuff in the supermarket was paramount, because the consumer was focused on cheap and convenient. more recently, people have decided, let's also think about healthy, delicious. the number of people that consider themselves a foodie is at an all-time high for society, not just in the united states

but around the world. we are caring a lot more about what we eat, and the whole food system will sort of real line. -- will sort of realign. now you can get kale in every restaurant. emily: will the kitchen get more high-tech? nathan: the american kitchen is low-tech. you have people with supercomputers in their pockets, in the form of their cellphone. their car has dozens of microprocessors, and the oven has none. and their oven does a pretty important job even of maintaining temperature. as consumers, the search for convenience and better results, i think digital technology has a huge impact for us. why should all of the skill have to be in you? emily: the other big business is patents.

we have a big collection coming up. what is as stake in the patent world with this election? nathan: there is a lot at stake in this election. neither candidate has any position on patents, and i am fine with that. patents are kind of a boring little topic. it is super important, and important to get right. but i think adding the crazily divisive politics we have seen in other areas would not help. it doesn't help anywhere, to be honest. we cannot seem to get out of it. emily: and your company has amassed a lot of patents, controversial tactics. some people say you are a patent troll. do you see the need for patent reform? nathan: whenever you see reform, it sounds like it is good. with any old piece of legislation or body of law, there is always ways to bring it up to date and make it better. on the other hand, there are a

lot of companies have a dog in this fight and an agenda. the giant tech companies tend to absorb lots of features and functionalities of and they don't want to pay it. some companies whose entire business is based on that, but that is not just me. it is the biotech industry, communications, talking about qualcomm. other people want to take people's inventions for free. and they can spend a ton of money lobbying and say, we have all these jobs, and no bother to the fact maybe somebody else had that idea and we took it. emily: that was ceo and cooking lab founder nathan mere gold. tomorrow on bloomberg we look to the skies with the largest maker of consumer drones. we will focus on the launch of the new competition from gopro and research plans for silicon valley.

and up next, alibaba single day in 2015, the single largest shopping day in history. how do you follow that up? ask president mike evans next. this is bloomberg. ♪

emily: alibaba's most important event of the year, singles day right around the corner. it has become an annual shopping extravaganza for the largest commerce company, but now they are citing set abroad, teaming up with costco and macy's. i sat down with president mike evans and asked him about his expectations for the year. mike: singles day is the biggest shopping day of the year in china. we kicked it off last night in china with the announcement that david hill, who organized the super bowls and on the oscars, is directing it for us. katy perry will be the global ambassador. we have thousands of merchants. we have entertainment.

it will be a wonderful event that all china and many different parts of the world will participate in. emily: i was there last year. you processed $14 billion in merchandising in a single day. what numbers are you expecting? mike: $14.3 billion last year actually. the numbers will be big, but and bigger than last year/ what makes single stake for success for us is obviously a large amount of products that changes hands between merchants and consumers. but it is a social experience, a great event for all the people that participate. we haven't achieved what we want. the e-commerce is really a social commerce platform. it brings people together in a way they live their life now, online, buying things, chat rooms, all sorts of experiences they have not had historically. singles day in the global

shopping festival is about the total experience. ma's sent a letter to shareholders that rattled investors temporarily about how alibaba needs to transform from just e-commerce. what does that mean for your job? mike: for my job, it means we have to think about the way retail will change in the future. people may have misconstrued his letter. it is the change and morphing of the retail model is referring to. emily: part of the reason you are here at vanity fair is to dispel some of the mysteries and missed perceptions --this truth perceptionsand mis about china. alibaba is not just the amazon of china. it is more, but it is hard for u.s. consumers to understand because it isn't quite an equivalent. what is alibaba?

mike: alibaba, it is an epiphany for u.s. consumer, a combination of facebook, google, and amazon. -- particularly for a u.s. consumer. we have a social component to the commerce program. we have a search component in everything that we do. we have an innovation and a cloud component which reflects the totality of businesses you see in those three companies. we do that all in one place. if you look at what our business es are today, we have the core commerce platform, digital media entertainment, and services and innovation side of the business, which is very important. everything from travel to ridesharing to involvement in food and food delivery and health, and then ar and vr and the technologies of the future that will be important. those are all enabled by the cloud computing business, payments, logistics that delivers over 50 million packages a day, and of course

the advertising and merchandise. emily: we had two investors yesterday, saying china is in a bubble, collapsing ahead of us. the banks have four times the toxic assets the u.s. did before the financial crisis. there are billions in extra square footage of real estate that are not being used. is china in a bubble, can the economy continue at a pace it is? mike: china is not in a bubble. the economy is slowing but not slow. the components of the economy are changing from industrial and manufacturing to services and consumption. there were too many points raised yesterday when i wasn't here to discuss them and debate them in isolation, but what i would love to do is get both jim and kyle to come to our campus to sit down and we can help them understand the things they don't

understand about china. emily: gdp is flat or dropping, but you say that consumers are still spending money. where is the disconnect? mike: not understanding that when the economy slows, not all of the economy is slowing. parts of the economy in china are slowing like industrial and manufacturing, but the services and consumption components of the economy are growing very rapidly. so our business grew 60%. that was the last quarter year on year. that is because more people were consuming. the chinese consumer population on the platform is 423 million people with $4.3 trillion of assets in their bank accounts that are on levered that they want to consume with. i think the mismatch is understanding which parts are slowing, which parts are growing, and why they are growing.

we have data and analytics to support both what we see and also what we believe. emily: alibaba president mike evans. now in today's tech revolving door, some of the most renowned vc firms, sequoia capital has hired a female investing partner, the first in its 44 year history. she is leaving her position of a shopping site acquired by john -- by yahoo! for $230 million. when she starts at sequoia next month she will be one of the , youngest at the firm. sequoia came under fire when the chairman said he was trying hard to find a female partner, but they were "not prepared to lower their standards." he did clarify, saying he believed there were many women that would flourish in the industry. that does it this edition of "bloomberg technology." tomorrow we are catching up with unity technology ceo, former

electronic arts ceo, and there are life episodes of bloomberg technology on twitter. that is the latest from san francisco and the new technology establishment summit. this is bloomberg. ♪

>> it is noon and hong kong. an update of the top stories. the weakest fixing since august after the dollar strengthened further. the yuan at a fresh six-year low. lowesto slumped to its since mario draghi announced its bond buying program may be extended. china's overheating premarket extended amid curbs on hold mining. prices rose 63 of the 70 cities, down from 64 from august. policy makers are trying to avert a damaging house bubble without killing what is the main pillar of growth. there has been no