when we look at alibaba, _ change things up. when we look at alibaba, how _ change things up.ook at alibaba, how does _ change things up. when we look at alibaba, how does it - change things up. when we look at alibaba, how does it reflect . at alibaba, how does it reflect the state of the chinese economy?— the state of the chinese econom ? . �* , economy? overall, it's the same sto . economy? overall, it's the same story- the _ economy? overall, it's the same story. the economy _ economy? overall, it's the same story. the economy is _ economy? overall, it's the same story. the economy is not - story. the economy is not growing very quickly for retail, for cloud which are its core businesses. i don't think there are any clear drivers for significant growth in the near term, obviously alibaba is investing heavily in al hoping that's the next breakthrough, but i think that's pretty unproven at this point and not something we can expect to really explode near term. so i think what it's really going to do is alibaba is really going to have to rely on what we said earlier, really r

quarter it grew nearly 100% versus alibaba's 9%. in live streaming e—commerce, a business model alibaba actually business model aliba ba actually pioneered business model alibaba actually pioneered but douyin has taken over as a leader and it's encroaching on pinduoduo's gmv as dwell. ., . ., as dwell. e-commerce a competitive _ as dwell. e-commerce a competitive space - as dwell. e-commerce a competitive space in - as dwell. e-commerce a i competitive space in china as dwell. e-commerce a - competitive space in china and increasingly a part of the daily fabric as well. but it's still way down by slower economy, isn't it? that's correct- _ economy, isn't it? that's correct. although - economy, isn't it? that's correct. although i- economy, isn't it? that's correct. although i think| economy, isn't it? that's- correct. although i think that — despite the fact that — you know, economy relatively speaking is in a — has seen better days if you look at the expectations for online retail over the next three years, this is a ginormous mark

-- pro'ects for alibaba. �* , on track? -- pro'ects for alibaba. , ., alibaba.ba has focused on three main _ alibaba. alibaba has focused on three main things. _ three main things. reprioritising the core business, investing, all in on al for the cloud business and ai for the cloud business and in the commerce business, exploring and investing more in the international business. in terms of major specific initiatives i would say for investors what they need to watch is that it has been reported that alibaba will move to a fee based model charging for merchants, similar to what pinduoduo and others already do versus its current business model which is an annual fee plus service fees. it will start in september and that could really change things up. we also got earnings fromjd.com, one of alibaba's key competitors. the chinese e—commerce company saw net revenue for april tojune come in better—than—expected. profits for the period also jumped by more than 70%. the reason for the strong result has been a discounting strategy that the company has engaged in since 20

quarter it grew nearly 100% versus alibaba's 9%.course, leader in live streaming e—commerce, a business model alibaba actually pioneered but douyin has taken over as a leader and it's encroaching on pinduoduo�*s gmv as well. e—commerce a competitive space in china and increasingly a part of the daily fabric as well. but it's still weighed down by a slower economy, isn't it? that's correct. although i think that — despite the fact that — you know, the economy relatively speaking is in a — has seen better days if you look at the expectations for online retail over the next three years, this is a ginormous market. china is almost $3 trillion, online e—commerce, and expectations the next few years is still going to grow at 8% and for a market of that size, that's still significant. so by 2027, you know, professionals, experts, are expecting that it will be a $4 trillion market. from an e—commerce giant to an entertainment giant. india has held growing costs steady at 6.5% since february 2023 as steady at 6.5% since february 2023 as infl

alibaba's executives announced aliba ba's executives announced they'll alibaba's executives announcede group's share buyback programme by $25 billion in a move they say demonstrates confidence in the company's outlook. alibaba is facing fierce competition from rivals such asjd.com, rivals such as jd.com, pinduoduo rivals such asjd.com, pinduoduo and i doage. grew about 11% that's according to official est—matses but the company itself did not and really it's — the investor response is partly because the recovery has not been as great as some have expected. although to others it's been better. it's really because of the competition. so pinduoduo is one of the most aggressive competitors that it faces in its core business. of course, it's still less than half of alibaba's business, but it's been growing very quickly in thirty quarter it grew nearly 100% versus alibaba's 9%. and doin, leader in e—commerce, a business model that alibaba actually pioneered but now they have overtaken as a leader and it is actually encroaching on pinduoduo gmv as well. e—commerce a very competitive space in

alibaba has struggled to drive growth. the ceo who was installed last year making it his priority to focus on between business of cloud and commerce. he has also been making bets on ai in the long run, but investors have worried that alibaba's intense drive to beat its competitors will compress margins in the three-way rivalry has been intensifying for a while. a quick note -- alibaba's biggest rival, tencent, reported better than expect a earnings, but warning of weakening consumption. it is really alibaba that is in the back seat for now. but it is just one quarter. the economy in china still not looking that fantastic. caroline: it is interesting. we understand that michael burry has been keeping up his alibaba stake. people do believe in a turnaround for this business. is it all to do with ultimately a week revenue stream, a weak consumer? they didn't seem to put it away when it was dmv focused and merger focused. isabel: they also have david tepper slashing his alibaba stake for a little bit, but it is still the bigge

ed: isabel lee on alibaba's u.s. shares. currently up around 7%.t jump since august of 2023. that does it for what was a packed edition of bloomberg technology. a big thank you to everyone checking out the podcast. if you listen on your way into work or apple or spotify we are posting the podcast to the bloomberg platforms as well. two days into what is quickly becoming a week about technology earnings and that's what the conversation will be on this program. from san francisco this is bloomberg technology. ♪ get help reaching your goals with j.p. morgan wealth plan, a digital money coach in the chase mobile® app. use it to set and track your goals, big and small... and see how changes you make today... could help put them within reach. from your first big move to retiring poolside - and the other goals along the way. wealth plan can help get you there. ♪ j.p. morgan wealth management. katie: live in new york. welcome to bloomberg crypto, look at the people, transactions and technology shaping the world of decentralized finance. now that the coin d

-- pro'ects for alibaba. �* , on track? -- pro'ects for alibaba. , ., alibaba.

alibaba cloud gets close.generated ai firms are running on alibaba cloud services but the common challenge is china's economy and enterprises are more reluctant to spend on i.t. infrastructure services. that is the basic challenge here. haidi: bloomberg's technology reporter. taking a look at stocks we are watching, we are trading ahead of the china open, we mentioned jd.com cutting prices for cloud services triggering a a price war with state cuts with alibaba. game sales missed estimates, we are watching netease. china pmi data is coming up in the next hour. this is "daybreak: asia." ♪ when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh wealth-changing question -- are you keeping as much of your investment gains as possible? high taxes can erode returns quickly, so you need a tax-optimized portfolio. at creative planning, our money managers and specialists work together to make sure your portfolio and wealth are managed in

it has executed more consistently than alibaba and the strategic issues that affected alibaba, they areit is more of a calling and the market is looking for a decent team profit where topline growth will be relatively flat. relative to peers, the view on jd.com is more study. paul: our senior analyst robert lee. it is a busy time for earnings. let's look at other team. this is despite margin concern. and the preferred cash, profit was right there, the chinese market pushing out. if we take a look at new form shares, that was so funny downgrading, off more than 20% and one point after cutting the full-year forecast. still to come, a hospitality form says it is doubling its revenue by 2038. paul: welcome back. markets in china heading to lunch. the csi 300 up by more than 1%. that was not the standing with richard data begun earlier out of -- wretched data we got earlier out of china. a decline from the contraction for the 5.3% we saw in june, and retail sales were the bright spot, up 2.7%. that was a beat. china steel prices the lowest since 2014 and iron ore slumping, as well. our next

so you may recall alibaba. ultimately receive a fines, 2.8 billion usd from china's antitrust authority. but this was nothing compare with the market loss it has received on the day of the announcement of the investigation and over the following months. this farm. over 75% of its market cap. so at its peak in 2021 alibaba was worth over hundred billion us dollars and today it really struggle as a firm that is worth so so this is what the book talks about i mean, the book talks about china won an initiate a tech crackdown and how it went about doing that and what are the consequences and the implications for both china and the world. now, the book not only talk about how china regulate its own tech also have implications for companies operating in the united states. as you know, a lot of the chinese subsidiaries of chinese are of chinese tech firms and doing very well in the states recently. and the most prominent example is tik talk, which is now i saw radio one online, a participant already raised question abo

chelsey: for alibaba, right?tly, i think it is important for companies to do three things, like i said, revenue growth and margin cannot decline so much. a lot of return back to the shareholders. so i think investors are quite demanding these days. market share i think is important but it depends on how you achieve that. if you just achieved by giving out subsidies, is not sustainable. but if you achieve by lowering what consumers consume, i think, and also offering competitively priced products, these are the winning recipes. so to achieve market share through that, and then with market share, you can have better line share. then i think tech rate will come naturally. so i think these are the ways how e-commerce companies should work on. paul: i want to quickly get your views on tencent as well, it's having a pretty good day in hong kong, up by about 4.2% right now. what is your outlook for the coming quarters for tencent? cannot sustain this momentum? chelsey: -- paul: we will have to leave it there. thank you

we know alibaba are has been on the hunt.re seeing alibaba get aggressive as you mentioned, investing $600 million to bring the valuation up to $2.5 billion. a start up a lot of momentum. this is the second deal alibaba has cut. they led the largest funding for an a startup. a $1 billion deal this year. they're getting aggressive on ai and seating outside startups to help the effort. it is the microsoft strategy. microsoft is funding openai in chatgpt. haidi: kelly, has been through a tough time. is the tide turning? i find it interesting that the cyberspace administration published a piece. the whole nation approach, the big bump for spending in tech. our companies going to see more fervent government support? peter: good point. alibaba got beat up a few years back when the government went after them, but they had been one of the most aggressive investors, seating the chinese ecosystem and controlling a big chunk of it. so seldom pullback in dealmaking and it looks like they're getting encouragement in areas that are importa

cooper bob we are kuo: alibaba buzzfeed to be partner -- alibaba was b2b partner.m the global business, the global business is growing fast. we are using all kinds of technology to enable that. second, we see a lot of customers going global. not only from china, but all over the world. we see many areas. 30% or 40% of growth from the new customer perspective. scarlet: kuo zhang is president of alibaba.com speaking to us from las vegas. as we had to break, a quick mention of u.s. equity index is at session lows with the russell 2000 declining by 2.7%. the s&p 500 as a whole in a 1.6% whole. this is bloomberg. with so much entertainment out there wouldn't it be great... ...if you could find what you want, all in one place? show me paris. xfinity internet customers can enjoy the ultimate entertainment experience and save on some of the biggest names in streaming, all for just $15 a month. get the fastest connection to paris with xfinity. from the world of politics to the world of business this is a balance of power. live from washington, d.c.. >> the final stretch. th

>> alibaba is going to lift her foot off the pedal. it's going to shift here towards alibaba clout.he good news is that we are not going to actually see a lot of that incremental spending, but likewise, you will not see the company in a position to really monetize the paris olympic sponsorship. some of the other companies that actually have the on-demand video rights may be in a better position to monetize on the paris olympic stan alibaba. -- the paris olympics than alibaba. paul: plenty more to come. this is bloomberg. ♪ this is our future, ma. godaddy airo. eates a logo, future, even social posts... in minutes! -how? -a.i. (impressed) ay i like it! who wants to come see the future?! get your business online in minutes with godaddy airo starting a business is never easy, but starting it eight months pregnant.. that's a different story. i couldn't slow down. we were starting a business from the ground up. people were showing up left and right. and so did our business needs. the chase ink card made it easy. when you go for something big like this, your kids see that. and they believ

from the blueshirt group, said the primary listing would help alibaba. i think it's a fantastic move. here is what i think is the rationale behind it. when these companies are dual listed, and they are not the only one, there are a number of chinese companies that have adr in the us and are traded in hong kong. but the adrs are still the driving force behind their evaluation and as we all know, almost all of these companies are having terrible evaluations right now. with not having a lot of positive sentiment coming from us investors, the companies obviously are trying to figure out how to appeal to a new set of investors that can offer a better valuation or recognise better valuation. so obviously asia—based investors understand the company better, they understand china better. they are less worried about the environment in china in general again, more from a political and trade perspective as opposed to the economy, certainly the economy in china is not great. but to those investors buying in hong kong, there's not enough buying power, not enough abili

ed: alibaba calling off an initial public offering.ogistics are much-anticipated day the could've raised more. the big question is why they pulled the ipo. >> as the stock waned the company lost interest. the hong kong and chinese stock market aren't doing so well but we have no indication this goes elsewhere. it doesn't mean alibaba won't be providing these ipos. they filed her paperwork in september and chose and which they had to update it. instead they are going to buy up all the remaining stock held for $3.75 billion. of course we have alibaba chairman saying this is an appropriate time to double down on their investment. for now they have around a 64% stake. after that it will be 100%. >> there's been some inconsistency on what is and is not happening with the spinning off of various listings. now it is important is the logistics arm. market conditions are one thing but how surprising is it of a u-turn on a decision from major financial transactions? >> this isn't the first high profile ipo, they also in 2023 halted their ipo the

exactly 100 ears partner alibaba. exactly 100 years ago — partner alibaba. - years ago paris held this 0lympic years ago paris held this olympic games with only 4.4% female participation, and then after 100 years, they are hitting the 50—50 target this year. we think it is a great achievement for human beings. it is worth documenting and celebration, it is not being promoted enough. i celebration, it is not being promoted enough.- celebration, it is not being promoted enough. i found out how the 1924 _ promoted enough. i found out how the 1924 paris _ promoted enough. i found out how the 1924 paris footage . promoted enough. i found out how the 1924 paris footage is | how the 1924 paris footage is being lovingly restored through pioneering ai recesses. $5 being lovingly restored through pioneering ai recesses.- pioneering ai recesses. as you can see. _ pioneering ai recesses. as you can see. the — pioneering ai recesses. as you can see, the old _ pioneering ai recesses. as you can see, the old image - pioneering ai recesses. as you can see, the old image was

keeping an eye on the tencent, alibaba earnings. whether the earnings scorecards can justify their valuations. there is optimism surrounding it, which is why stocks are in the green but it isn't just about whether these companies do well. that will be a key test for them. it is also how it will potentially help justify chinese equities rebound. we will keep a watch on revenues and share buyback plans. let's take you to japan where the bond selloff is extending for another session, the yield hitting the highest levels in more than a decade. the boj reducing bond purchases in the five and 10 year zone. strategists say it is not unlikely to see potentially something coming through with the 3-5 year zone. the idea that this will help shrink the yield gap and support the weak japanese currency but let's flip the board because i want to highlight the relation between them detaching despite shrinking yield gaps. the dollar-jan has been moving back up towards one point 60 despite what we saw a couple weeks ago, believed to be intervention.

let's start with alibaba. >> tencent reporting better than projected, surge in earnings, but alibabat plunged. the fact that the two biggest in china reporting on the same day was a rarity and it highlighted the tale of two fortunes for both. better-than-expected single-digit revenue growth, but profit performance is where they diverge and investors are looking at on a mining these companies as they are seen as a barometer of chinese health when china recovers from rocky covid recovery and a one year slump big tech crackdown. get this, neither company offered strong reassurances on the future of the chinese economy moving forward. caroline: we love how you give us the macro context. let's go optimistic, first. why was tencent pulling it out for the investor base today? >> their profitability really shines in the results. basically, video streaming is a huge positive, but in the meantime the company is cutting usually on costs. remember, they are looking at revenue growth of 6% they costs of revenue that's down 8% from one year ago. the key to that is lower cuts in costs associated wi

>> i guess alibaba is back to square one essentially.hey have highlighted that they will make a big, global e-commerce push both at home in mainland china as well as overseas, and they are going to spend, so i think this heightened concerns that it will take a hit on their profits in 2024, and the second disappointment really comes in as they concur that market conditions right now are making it difficult for divestments of assets, not the likely overhang on china ipo, which is subjective to market conditions. it does not look like any of the changes they wanted to put through may come true in the near term. >> there's so much focus on how much ground alibaba has lost in the e-commerce space. are we going to get any signals perhaps that alibaba can catch up again? >> if any evidence comes true, it's not going to be in the near term. we probably have to wait until 2025 to see if any gains can be sustained for the next couple of quarters. alibaba is now looking at new road and development measures, and these are markets that pdd is also mo

this is two thirds of alibaba revenue generation. this quarter is anemic. the revenues they generate from third-party merchants grew 2% for the quarter. that's not the rebound investors were hoping for. direct sales from the platform declined. consumer sentiment in china is weak. this morning we have positive retail sales data from october showing they expanded 4.8%, fastest pace in eight months. take into account, these results came between june and september. during then, consumer sentiment is not on the mend yet. caroline: international growth. , how resilient in the face of geopolitical headwinds, dominantly in the u.s., anticipating a new administration which is not china friendlyz/ --? henry: the domestic e-commerce business has been weak for quarters and quarters. they have to find a new growth engine. it used to be cloud but that is sputtering for several quarters in a row now. it has shown signs of recovery but a long way to go. another way to expand his overseas. explosive growth in the u.s. alibaba, the focus has been on other asian markets, mala

alibaba has focused on three main things.and in the commerce

alibaba is also facing growing competition from rival online sellers. under pressure as customers have been cutting back on their spending as they face a challenging economic environment. the firm is facing stiff competition in the china e—commerce market from rivals. 0ne analyst that we have spoken to said that the retail online market, which is worth around $3 trillion, grew about 11% in 2023. but there only grew about 9%. last march, the company had a major restructuring. it's that the firm into six units that covered e—commerce, streaming and logistics, each with its own board and chief executives. but it later scrapped a spin off of its cloud unit. it had created uncertainty is its listing. in its latest earnings, alibaba executive said edible grow the group's share programme, enemy they say will demonstrate confidence in the company's outlook. to energy and climate change now, because the boss of norwegian oil giant equinor has been defending its huge new investment in the north sea, which was approved by the uk government last year amid widesprea

alibaba u.s. an investment vehicle, alibaba was months most valuable company in china.craft is years behind sejal. analysts say heightened scrutiny . shares of texas instruments led after disappointing quarterly forecast but said sales could reach up to billions of dollars, lower than the average estimate. the outlook suggests a rebound. with plenty more to come on daybreak: asia. this is bloomberg. ♪ ♪ ♪ ♪ ♪ ♪ ♪ >> china bond, we have seen some breaking news out of japan. annabelle: pmi numbers for the month of january, for the manufacturing reading it ticked a little higher. unchanged we saw services continuing to hold from the december readings. follows what came through with trade data for december, the signs include chipmaking equipment to china. paul: as i was saying. csi plunging. serious concerns, policymakers, we have reports to put a floor under equity prices, deposits, government bonds seem to be the place to be. annabelle: yeah. we're seeing the equity market the economy editor joins us now, this money, does it tell you anything? >> was talking about the nee

>> i think we are back to square one for alibaba.wo things that really stood out for the companies overnight, they are looking to grab back global e-commerce market share. they are also going overseas, targeting markets like europe, developed asia, and they are going to spend. this indication from the company overnight really does bring concerns that they will likely be focusing on profits to try and win back the topline growth. the other disappointment really was that they had alluded to the market conditions not being the most favorable for divestments as well as the last remaining ipl that they were looking to actually put onto the market this year. so now it's a question of whether we will see it coming to the market in the first half of the year. haslinda: we know the market is looking for an e-commerce come back. we've been waiting for that for a long time. when can that happen, particularly in china? >> i think what the market is really looking out for, myself included, is whether alibaba can sustain any gains that they make o

let's just start with alibaba., and probably a particular focus on the ai front as well. >> we have not had alibaba and tencent reporting on the same day for years, so it will be exciting. it investors will be comparing the results side-by-side. it is a barometer for the chinese economy, which is not doing so great. for alibaba, at the bottom line is there e-commerce, and on top of that ai. it made its ai language model open source, meaning more developers will be using their services, and it is a strategy mirroring microsoft. in alibaba's case, commerce will give us a sense of where chinese consumers are spending and on the cloud side we will see if it can compete against other makers like tencent and baidu. haidi: tell us what we are expecting for tencent. these two companies are major barometers for the broader economic recovery story. >> for tencent the growth is centered around wechat. we have a video feed and live shopping and games that will contribute to their advertising and game purchases. wechat has this

alibaba, even chinese brands like mengniu, which is a dairy company, what do you make of these? understandable, they are following a tried and tested route that 20 or 30 years ago, the japanese companies used to sports to develop a global marketing strategy and export. that was followed by the korean companies like samsung and hyundai and the chinese companies particularly as they look to broaden a global footprint are seeing sport as a very powerful marketing tool. mengniu began with sponsorship of the soccer world cup, it was very successful for their marketing, both inside china and hoping to extend and broaden the markets. and do you think the organisers of the olympics also have to try and keep reinventing themselves to keep attracting sponsors the way they have so far? absolutely. change will be change. the olympics is not immune, marketing is changing rapidly all the time, the way that the public is consuming content, engaging with sport, so the olympics has to be at the forefront of that. and the partners from their marketing strategies, with the technology, is helping t

alibaba is putting a lot of capabilities.are trying to incorporate some of that into various businesses around the company. the cloud computing business is a little bit of a bed. overall operating margin shrank going from 18% to 15% and that is partly because they are investing so much money in the ai. on the conference call, we were asked the question will you invested this kind of play -- at this kind of pace. we are determined to make progress and that is also a cause for concern unless they can find some sort of payoff at the end of these investments. scarlet: we have seen that game play out. you mentioned eddie wu is the new ceo. alibaba is an organization. does it differ significantly from its predecessor? peter: daniel was focused on expanding in a number of and -- areas in the core of the business and made adequate -- acquisitions in brick-and-mortar retail and retail ventures in particular. they expanded abroad also. eddie wu and the chairman of the company are focused on the traditional businesses that matter. e-com

sarah: actually alibaba had a tough year last year as well. the domestic side from increased competition, from you know, domestic rivals, and internationally from temu and tiktok shop. we will see how they can navigate internal reshuffling with their new ceo taking direct control over the cloud and domestic e-commerce side seeing if he can turn things around and reinvigorate what has been sort of a struggling business. yvonne: thank. -- thank you. sarah zheng with what to expect. go to tliv to get commentary and analysis from our expert analysts. this is bloomberg. ♪ haslinda: you are watching bloomberg markets: asia. shanghai-based chipmaker smic posted better-than-expected quarterly profit, a robust month for huawei's smartphones. china's top contract chipmaker is capable of making advanced seven nanometer chips used in smart and laptops. adam neumann and other investors are exploring an offer to buy we work out of bankruptcy. a letter seen by bloomberg news shows adam neumann and his real estate firm have been seeking information to fo

haslinda: alibaba having a run currently, up 5%.s on the back of news, jack ma, joe tsai buying 200 million dollars worth of the stock. we had catherine say that does not erase the gains for the rest of the year. sinotruk 20% higher after that good earnings report. great wall motor with a fall. alibaba currently extending its gains to more than 5%. looking at the broader market, it is pretty flat. china front and center. people wondering if the move recently is enough, and expectations of that rescue package worth about $280 billion. plenty more ahead. keep it here with us. this is bloomberg. ♪ yvonne: welcome back. china markets heading into the break. you are seeing slight downside relatively speaking, not doing as well as hong kong on the onshore market. 0.4% to the downside today. in terms of the rest of the greater china markets, day two rally for hong kong after our scoop about the stabilization fund. that is leading sentiment to look pretty good today. but there you go, the rest of the onshore markets are doing this. we are f

alibaba, even chinese brands like mengniu, which is a dairy company, what do you make of these?a dairy company, what do you make of these?- do you make of these? i think it is understandable, - do you make of these? i think it is understandable, they - do you make of these? i think it is understandable, they are | it is understandable, they are following a tried and tested route that 20 or 30 years ago, the japanese companies used to sports to develop a global marketing strategy and export. that was followed by the korean companies like samsung and hyundai and the chinese companies particularly as they look to broaden a global footprint are seeing sport as a very powerful marketing tool. mengniu began with sponsorship of the soccer world cup, it was very successful for their marketing, both inside china and hoping to extend and broaden the markets. find and hoping to extend and broaden the markets. and do you think the organisers _ broaden the markets. and do you think the organisers of _ broaden the markets. and do you think the organisers of the - think the organisers of the ol

from the blueshirt group, said the primary listing would help alibaba.ey are not the only one, there are a number of chinese companies that have adr in the us and are traded in hong kong. but the adrs are still the driving force behind their evaluation and as we all know, almost all of these companies are having terrible evaluations right now.

i don't think the alibaba trade is over by any stretch.y itself, the stock is too cheap. >> long-term holder, long-term investor, bit of a trader. i do think the story around china is one where right now sentiment remains about as low as it can get after the -- everyone said it was a trade nailed it, by the way. let's be clear. round trip. it was a trade. alibaba i will continue to say with 340% of the market cap at cash is not a china macro call. i will also say the $17 trillion economy that is china i think we are underestimating the impact of what tariffs to the can do. >>> coming up, after hours action in today's session. instacart, spotify, occidental. details ahead. and a biotech beat down, amgen dropping. interesting data in the trial report. we will talk to the analyst who made that call. don't go anywhere. "fast" is back in two. >> this is "fast" with melissa lee right here on cnbc. ♪ (vo) with verizon, trade in any phone, any condition, and get iphone 16 pro on us. and, ipad and apple watch series 10. all three on us. only on ver

due to platforms like alibaba we can do a hybrid so you on the operation but you outsource all of thedo marketing at the same time until we build critical mass and set up our own office to do it locally. what is your advice to other british and european brands wishing to emulate your success and tap into such a big market, if you are prepared to share them? i if you are prepared to share them? ~ , ., ., , ~ them? i think platforms like and the and _ them? i think platforms like and the and others, - them? i think platforms like and the and others, one - them? i think platforms like and the and others, one is l and the and others, one is product and pricing —— alibaba and amazon. you can test which product resonates most with customers and the messaging and also what is your ultimate pricing? in retail stores it is difficult to change our prices were as you can fine tune it and see what works in terms of launching a product in an inexpensive way. it makes a lot of sense and then you have advertising and in china you have live streaming becoming really popular, like a form of entertainm

alibaba currently trading down 0.6%. in the markets it is trepidation. investors waiting for that crucial pce data out of the u.s. on thursday after a hotter than expected cpi data, prompting questions about perhaps what signs may be gleaned from the data to suggest what the fed might do with rate cuts. bear in mind, market expectations now coming to about an 80 basis point car from the year, down from that 150 basis point level. in the broad market in terms of the chinese market, inching higher at this point in time. csi 300 index up by 1.6%. still, there are concerns despite more foreign investors pouring money into the chinese markets, concerns about the clampdown prompting the expectations of more meddling by china. gains due for the philippines and malaysia. the nikkei 225 currently consolidating, down 0.6% after reaching new record highs. in terms of the fx space we have the yen trading at 149.78, below the 150 level, up 0.6% versus the usd expectations. flip the page. take a look at the set. one stock we are watching, scbx. this is the biggest ban

alibaba calling off its plan, ipo, the chairman described the market is pretty depressed and says it would not have afforded them the capital needed for global spansion. it's a second time the firm has shelved a high profile debut for one of its main businesses. annabelle: sticking with china, it's hosting its annual blowout for -- boso forum. stephen engle joins us now. we just heard the focus is on geopolitics. their economic and market concerns as well. stephen: absolutely. the chinese economy is sluggish, no doubt. that may be a bit of a misnomer. it is hurting, and those apple numbers in february with sales down 33% for the iphone is a punctuation point on that as far as the consumer. there are bigger issues with the debt loads at the local level, and the ongoing property troubles. that spills into the broader economy and those who are trying to sell into this economy. that is what boao is about, many of them have not been here in five years. this is my first time back in five years, since 2019. this is an event that tries to liken itself to the world economic forum for china. i

we have alibaba and tencent talking about gains accelerating, gm coming back at alibaba and the fight of the incumbents are leading to revision of topline or at least some expectations at the top line where we accelerate into the rest of the year. and then into this second quarter so far, as we look at the conference next week in hong kong, with 160 companies coming, we expect this to be the meeting around how the current economic and consumption trends are going, and we have seen them track ahead the past two months, part of growing around 20% to 30% year-over-year in the recent one or two months. that means consumers are buying still, cheaper things, the average ticket size is coming down but they are still buying, and that is on the front of expectations that will be key to the sustainability of how internet performs, and the internet rallied funny percent year-to-date, while shareholder return is the other thing highlighting, which is how they are buying back 5% and 9% of shares plus, buybacks, so this could provide downside potential while anticipating consumption into june 18. a

annabelle: what about alibaba? has been a focus on these different units and potential spinoff plans. what is the biggest risk the you think going forward? catherine: we have put aside all of that restructuring and they are now going heads on into all the different businesses by them valves. they are going to be investing into revitalizing the topline growth for their commerce businesses in the cloud businesses. that is going to take a lot of expenditures and investments. we have seen that hitting the bottom line of adjusted ebitda of the companies. and i think you might actually see the profit decline widening over the next three quarters. haidi: catherine lim in hong kong. let's look at some corporate headlines we are following. byd has debuted his first plug-in hybrid pickup truck in mexico. they say it will be available globally priced around $53,000. it comes as president biden announced 100% tariffs on chinese ev's, but byd does not plan to sell it in the u.s. they reported first-quarter earnings that beat an

tencent and alibaba are set to report their numbers. posting its slowest growth since 2022 and alibaba lags in the e-commerce. with us is eleanor long. it is the first time we have seen tencent and alibaba reporting on the same date, were you watching most closely? eleanor: it is the first time they report on the same date. we expect tencent results quite solid. operating profit will be around 16%. for tencent, doing business was the major concern. they were into client and they do not have blockbuster shares. revenue growth will decline because they are very aggressive in monetizing. we expect the business that rebounded year on year because they already changed monetization team after talking. they are going to introduce virtual item to increase and revive growth. for their second-tier game, monthly active users is over 500 million. that including the golden bachelor and crossfire, which we see this game growing at over 30% year in year. they have 20 approved game in the pipeline and upcoming game is dns mobile which has over 20 milli