why is xiaomi still a private company?o think that moving fast and being able to change direction quickly is important for us. when you are a public company, you are more restrained in your ability to do that, to massively allocate investment into something that may not pan out for some time. so i think that being more flexible and being able to move quickly is the reason why we will be private for quite a long time. emily: what does an ipo look like? hugo: our ceos answer to this question is five years away. he has been giving the same answer for the last couple of years. emily: how does xiaomi live up to a $45 billion valuation? hugo: we are only in eight markets up until now. there are so many services and new products that people haven't even started thinking about. i think $45 billion is just the beginning. emily: hugo barra, thank you for joining us. so great to have you. ♪ >> prepare to be blown away. ♪

to what extent is xiaomi eating up market share. are they suffering because of xiaomi's growth? >> they're suffering and not just because of xiaomi. but you have local kings where you have local brands cropping up in turkey. in india you have micromax and you have other brands in indonesia and brazil and russia, even in france. so you have the smaller brands and as, you know, as markets now are beginning to saturate and not just in china or europe but many other countries worldwide a lot of these brands are looking to international expansion to try to keep the growth going so there's going to be a lot more of competition over the next couple of years. a lot of these brands are probably going to fall by the wayside as a result. so that will be an interesting couple of years. >> a quick question for you. it's either coined or labeled as the most valued private company. so when are they going to ipo? >> i think that's actually tied to the issue of the market share in china. >> but if you were a betting man, when do you think it might come? >> i honestly don't know precisely but you

. ♪ emily: xiaomi may be a new kid on the block, but it is no longer so little.ears old, xiaomi rivals apple and samsung in the chinese smartphone market and is valued at $45 billion. but worldwide it is not a household name. former google executive hugo barra intends to change that. born and raised in brazil, he left a top job as the public face of android to take xiaomi global. joining me today on "studio 1.0," is xiaomi vice president of global operations, hugo barra. hugo: hi, how are you?

but there are concerns about xiaomi itself and how they're losing market share right now to china in slowing market that's their own home grown one by the way. >> and that push into other tech spaces is an attempt to try to stop that market share. the issue that we discussed earlier is they do still rely on google. they rely on android operating system and that makes them and samsung and everybody else too similar in the eyes of the consumer. they might be cheaper than samsung. is it differential? >> i'm wonnering when they're going to ipo. they go back and forth every month. it's the most valuable private company in the world. if you're worth 50 billion, at one point maybe you need the cash. you need to hit up investors for it. we're going to go to break here. still to come, world leaders continuing to condemn donald trump's comments but will this mark the beginning of the end of the donl's presidential run? we'll be heading out to washington d.c. for the latest. ♪ while you're watching this, i'm hacking your company. grabbing your data. stealing your customers' secrets. there's an

you have samsung, you have xiaomi.pple has not made it a lot of headway, which is not to say they cannot so far that really has gone to the local vendors and frankly to xiaomi. anecdotally i was shocked by the number of iphones i saw in beijing when i was there recently how much control to his the family actually have of samsung. sector doesphone not around for them how much control do they have? think t.j. yeldon his family have the time they need to take and right the ship. that is the way the corporate sector is set up. i think where we are looking at ease even though they are still in the house at all, the family does have the control and he is in a position of control. emily: do you see this winning back investor confidence? >> time will tell. we have not seen their shares drop over the last year but we will need to see progress over the next year. what kind of progress are you going to be looking for? that samsung is one very good phone, one very good upgrade away from being back in growth mode. again i think a l

they are being hit on the high end by apple and on the low end by xiaomi.msung leads to focus on is differentiating the stop -- the software of their stock. they are going to find their competitive edge. the longtime global chief is out as the head of mobile. he remains co-ceo of samsung electronics. but the new guy is now in charge of samsung mobile. he is someone who is been focused on partnership of samsung. he has been focused on r&d, and presumably he is the guy who is going to focus on rebuilding samsung phones from the software perspective. david: samsung in such a fascinating company because of the culture of their place on the culture of the company -- country the area they are based. been leading the company quietly. he has led a spree of deals for instance. this is the first big transition that he has spearheaded. these are the people he is choosing to lead under him rather than having to deal with the leaders that were chosen by his father. he was not named chairman as part of this transition according to south korean norms. that cannot happen w

the deal will allow the xiaomi to sell next generation devices in the domestic market. japan will consider a share buyback in the -- in response to yahoo! marissa mayer under pressure from investors star board value, which has threatened a proxy fight. largest city2 remain shut down after the heaviest rains in a century. look with bloomberg siddhartha --r this is more than a simple monsoon storm, isn't it? reporter: yes, the government says it is the heaviest rain in 100 years. in november, we already saw two times the normal rains. this is basically when the eastern seaboard gets its rains. channai has not seen these rains for 100 years and companies are unable to get its workers into factories, into offices and have had to close production. it is a huge amount of manufacturing, is it not, in chennai? what is the deal? you have companies mahendra,ford, daimler, hewn day -- hyundai. big information and other technology hub. because of the rain, huge areas of the city have been inundated. workers cannot get into factories. so far, companies are saying that they are not r

and also chinese companies like xiaomi?ating is all about an emotional bond with a customer, being culturally relevant. cheap phones could stand out is ending. one plus, only two years old, is trying to build that. the problem is almost no one is making money and smartphones anymore. apple takes up most of the profit along with samsung. what chinese manufacturers have to do is to create a strong global brand and that is what oneplus is trying to do. emily: thank you so much for that update. one stock we are watching, apple, the tech giant slipped 2%. confirmed a nonchalant remark made by les moonves. this is a plan to sell a package of 14 or so channels for 30 to $40 a month. studio is here in the a sim cofounder. founder. what do you think is really happening? sure.cannot really be the fact is it has always been a tough fit. apple is a devices company and the software company and a services company. only to the united states, which is not the biggest market anymore. they would have to do deals, not just with individuals li

qualcomm is out with a deal that is made with xiaomi.omi to develop 3g and 4g file and with its technology in china. it does not give the terms of that deal but obviously it is a very large market. investors like this in the premarket. up almost 5%. sales and brick and mortar stores were a little bit tepid this holiday season compared to the internet real taylor's -- retailers. we will talk to an analyst next. ♪ stephanie: welcome back. you are watching bloomberg. we have to talk it little retail. it is a holiday season. we have to find out if holiday sales really that bleak. one study estimates that brick and mortar sales slumped over black friday 10%. let's ask the senior retail analyst at goldman sachs. is it fair to say that retail sales are down at brick-and-mortar? so many people are shopping online that a whole category has gotten bigger. >> even though black friday can that weekend is behind us it is a little early to pass judgment and would weaken the is that the outcome of the november timeframe looks like the month before. to

qualcomm and xiaomi entered a patent agreement. it is a break for the company.been bad news has investors -- as investors worried about loyalties in china. only time will tell if this piece of news will be enough to turn that tide. betty: thank you. abigail doolittle at the nasdaq. u.s. equity stocks heading for a new record high, again. may be today. the dow jones industrial average and s&p are out there last record closes in may. now that the average is within striking distance of those prior records, what factors could make or break the markets. is the stoxx reporter. if you were a betting man, would you say that we would make our records? .liver: it is very possible the 2100 has been tough for us to break through meaningfully. it at these levels, and you keep going up, and people start to draw lines, if you are technical guy, you can draw lines wherever you want. there are some potential catalysts this week. that is what makes this last leg of the year interesting, and different from previous end of quarters. have janet yellen speaking today on ecb thursday,

that remains elevated when he compared to competitors like samsung or xiaomi.gree for a minute. when you say apple is all about sales, not unit, it is also about units. smartphone penetration was lower, they were expanding with the growing market. that was helping on the unit front, and then it was the pricing was also premium, helping as well. it was a combination of those. what we are seeing is the unit growth is slowing down. so the total growth will be slowing down even though we are seeing esp uplift. and demand of the iphone 6 is going up. impactift will have an through the next few quarters. scarlet: price cuts from apple? abhey: a mix shift. it had moved a lot towards large screen size. now i think it will move toward the middle. then there is talk about the launch of iphone 6 c which will be a smaller phone at a lower price point. that will have a deflation impact. scarlet: when you look at apple's shares, there is a time of weakness in the second half of 2012 when there was excess central questions about whether apple could sustain its growth rate. no

qualcomm is an outperform after coming to an agreement with xiaomi. it is a 3g and 4g patent agreement that will allow for royalty fees. this is important because qualcomm had said last month that it was maybe having issues with negotiating those speeds with its chinese customers. you can see the shares of 7.5%. once again, i want to look at momentum stocks that we have been watching within technology. facebook had not much change to that could amazon, netflix, and alphabet are all at records again. important that the technology outperformance is helping with the overall markets, although not how big the s&p and dow today. alix: it speaks when you have those guys moving so much. scarlet: now let us check in on first were news. mark crumpton has those from our news desk. british prime minister david cameron says the u.k. must answer the call of its allies. mr. cameron is asking parliament to approve a new mission for british warplanes. bombing islamic state targets in iraq. the threat is very real. the question is this -- do we work with our allies to