alibaba is a company that thinks in decades.he company that was founded in 99, he wants them to your rounded three centuries. planning horizon is a competitive advantage itself. that is how he sees the entry into the u.s. market. a long-term imperatives. what he is doing now is planting seeds. these are seeds that he is planted in order to learn about the u.s. market. see what it is about. when the full entry into the u.s. market is ready they will be prepared. the tactical side is that they are run like a hedge fund. they took a look at zulily and then invested. they knew there was value that it was later realized by qvc. they are in the market. stillealize there is value in that market. you have a long-term strategic aspect but also the short-term practical hedge fund aspect when you look at what alibaba is doing. david: i completely agree. they are like a really well-informed tech savvy portfolio investor that these deal companies are very common in china. i'm sure there run at a profit. they so that groupon was really cheap

gil: it is really what groupon can do for alibaba.you think about alibaba, there is a strategical and tactical component. remember, alibaba is a company that thinks in decades. jack ma says he wants them to be around for three centuries. that is how he sees entry into the u.s. market, a long-term and -- a long-term imperative. you see that what he has planted to learn about the u.s. market, is that when the invasion is ready, they will be prepared. emily: how optimistic are you about groupon's long-term future? gil: they are not going to 0 because alibaba took a stake. if you are thinking about betting against groupon. brendan: t-mobile reported rising profit and predicted as many as 3.4 million new subscribers this year. stephanie: dare i say -- you crushed it. how did you do it? what did you do inside his company? john: you are right -- we crushed it. we added 8.3 million customers in 2015. we had 100% -- 108% of all the postpaid growth in the industry. in 2015, t-mobile added 3.5 million postpaid phones drivers for at&t, verizon, a

alibaba isn't going to go any lower. that's trading at $62 right now.f alibaba continues to go lower does that adjust your thinking about yahoo!? >> so as we said, a large part of our price target is based on alibaba shares. at current prices in the low 60s we get to a low 30s price for yahoo!. but if you look at alibaba shares as well, they're currently trading around 20 times 2016 earnings. cash around 15 times earnings on 2016. we even got relatively attractive for a company growing 20% plus like alibaba is. some concerns around china but most risks on alibaba shares at this point. >> how much of a risk do you have to factor in when you consider not sure how the tax stuff is going to workout or how long it's going to take for yahoo! to consider finishing any offers that come in and not sure where they're going to be? >> we have a 50% chance that yahoo! can expect a tax free send spend in our price target. in alibaba shares we put a 10% discount to our current price target to be conservative there to get to our $41 price target. >> we saw the company

gil: it is really what groupon can do for alibaba.you think about alibaba, there is a strategical and a tactical imperative. remember, alibaba is a company that thinks in decades. jack ma famoulsy says he wants them to be around for three centuries. that is how he sees entry into the u.s. market, a long-term imperative. what he is doing now is planting -- jet.com, lyft, snapchat , he has planted to learn about the u.s. market, is that when the invasion is ready, they will be prepared. emily: how optimistic are you about groupon's long-term future? gil: there is a realization that they are not going to 0 because alibaba took a stake. especially if you are thinking about betting against groupon. brendan: t-mobile reported rising profit and predicted as many as 3.4 million new subscribers this year. stephanie: dare i say -- you crushed it. how did you do it? tell me -- what are you doing inside of this company? john: you are right -- we crushed it. we added 8.3 million customers in 2015. we had 108% of all the postpaid phone growth in th

>> it is really what groupon can do for alibaba.ember, alibaba is a company that thinks in decades. jack ma says he wants them to be around for three centuries. that is how he sees entry into the u.s. market, a long-term and parent if you're what he is planting seeds, jet.com, box, lyft, snapchat. he wants to learn about the u.s. market is that when the invasion is ready, they will be prepared. emily: how optimistic are you about groupon's long-term future? gil: they are not going to 0 because alibaba took a stake. brendan: t-mobile reported rising profit and predicted as many as 3.4 million new subscribers this year. stephanie: dare i say -- you crushed it. what did you do inside his company? >> you are right -- we crush it. we added 8.3 million customers in 2015. postpaid0% of all the growth in the industry. in 2015, t-mobile added a 3.5 million postpaid phones drivers for at&t, verizon, and sprint together -- -269,000. stephanie: what are you making money doing it? you started the price were a couple of years ago, so it is great

gil: it is really what groupon can do for alibaba.ink about alibaba, there is a strategical and a tactical imperative. remember, alibaba is a company that thinks in decades. jack ma famously says he wants them to be around for three centuries. that is how he sees entry into the u.s. market, a long-term imperative. what he is doing now is planting seeds -- jet.com, lyft, snapchat. these are seeds he has planted in order to learn about the u.s. market, so when invision is ready, -- invasion is ready, they will be prepared. emily: how optimistic are you about groupon's long-term future? gil: there is a realization that they are not going to 0 because alibaba took a stake. especially if you are thinking about betting against groupon. >> t-mobile, the nation's third largest wireless carrier reported rising profit and , predicted as many as 3.4 million new subscribers this year. stephanie: dare i say, you crushed it. how did you do it? tell me, what are you doing inside of this company? john: you are right, we crushed it. we added 8.3 milli

>> it is what groupon can do for alibaba.or alibaba, then there is a strategical and tactical imperative. jack ma famously said the company founded in 1999, he wants it to be around for three centuries. that is how he sees entry in the u.s. market as a long-term imperative. he is planting seeds. box, lists, snapchat -- these are seeds he has planted in order to learn about the u.s. market and see what it's about. when the invasion is ready, he will be prepared. >> how optimistic are you for groupon's long-term future? >> it is not going to zero because alibaba texas state and there's a value to knowing that if you were thinking of betting against groupon. reported rising profit and predicted as many as 3.4 million new subscribers for this year. itdarrell issa you crushed -- dare i say you crushed up. what are you doing inside this company? >> shery we we added 3.8 million customers and we had 30% of the past growth in industry. t-mobile added 3.5 million postpaid phones subscribers. at&t and verizon and sprint -- -269,000. >>

it also says it is separating its alibaba stake.ependent, does not include admires -- marissa mayers. >> they want to show the market that they are taking very seriously this desire to find a buyer. the concern was that marissa mayers, management, and the board had different views. >> what the board needed to show is that we really want to make this thing work. >> just two days ago, they started shutting down some verticals. they are laying off people shutting offices. i suppose the board might think, we're thinking about selling it retooling. >> the best way to do a sale is not to say, we are desperate. it is, we have other options. is that a thing to think about? >> she also has to think about morale among the staff. you have to retain people to run the business. no matter where marissa goes when this goes down, you need to keep the trains running. the more you are talking about, look, we're going to close up shop, and up in the hands of private equity, verizon, where it is -- shery: later in the program, we will focus on two sect

scarlet: alibaba is certainly the driver for yahoo!hat are the company's options when it comes to the alibaba state? >> they could sell it like they had decided before, but right now it feels like they probably want to fix the company financials a little bit better so they can position it for a sale later on. scarlet: who would buy it? once they sell the company, that would bring in an influx of cash. what would they do with that cash? scenarios.e two one is where they piecemeal the company and try to get as much value as they can. if you look at the core business valuation right now, it is next to nothing. or you could sell the whole thing together and then whoever buys it piecemeal the things they don't need to get more value out of it. that is the question. you can see yahoo! shares below their 50, 100, and 30 day averages. will be folly attractive for someone else to come in and buy it? criticaljust white is to wait for more deals from yahoo! on his plan to explore strategic alternatives. what would the alternatives be, how drastic

from a $26 billion stake in alibaba. china's refiners are selling more diesel at home rather than exporting it, as prices set by the government make domestic prices were attractive. china has been flooding the region with diesel. experts in january fell 26%. imports jumped the most in 10 months. shares in blue scope steel currently looking like this in early trade, 3.6% higher after first-half profit and australia's biggest steelmaker beat estimates. let's get over to paul allen in sydney. how didlue scope to -- blue scope do? paul: net profits 200 million. they also beat upgraded guidance. revenue also up 2%. blue scope it did take some write-downs on this new zealand and australia still businesses, more than half $1 billion. the value of the asset in the united states, north star steel, also got a right up. saw plenty of challenges in the steelmaking businesses. a short time ago on a conference call, bluescope's ceo said the price of iron ore more likely to fall. cost-cutting appears to be paying off here. paul: it doe

in 2014 -- ipo alibaba saying it plans a spin , or yahoo! plans a spinoff of the alibaba stake.the stock has had a big come down. the whole proposition for yahoo! for so long has been that the value lies in its assets, not necessarily in yahoo! itself. so i think investors are now trying to figure out, what is the value in yahoo! if you exclude the value of those others. matt: what do you put the value of the core business? ron: it is one of the few 6 million that has users. there is value in terms of what it is. it has been around forever. i would think that basically whoever buys them, whether it be strategic partner or a private equity firm or an operator like a media company, i would say somewhere maybe in the seven to nine times -- the issue that we are seeing with the company is that as results come in and they go through this transition and move search on to their platform and do a bunch of things with her display business, their property is coming down. regardless of what the stock is doing, it has come tough. stephanie: what price did microsoft offer so many years ago?

♪ ♪ emily: i know you were really bullish on alibaba's ipo last year.sh are you now about alibaba and chinese internet companies? sir michael: despite the bedlam that we all read about, i will say something that will strike you as odd. i don't think anything has changed about china. the underlying consumer demand is very strong in china. the internet companies there, their business is very good. it is strong. it is healthy. it is vibrant. and we have built our own business there over the course of the last 13, 14 years -- emily: quite a robust business. sir michael: a very robust business, run by some wonderful people. and it's no accident that seven of the 20 most valuable internet companies today are chinese. because over the next 20 years, there is going to be far more business done between the technology companies that get started in china and get started in the u.s. than there has been over the last 20 years. emily: what does silicon valley have to learn from china? sir michael: i'm always struck by how eager people running chinese companies are to

japan, as well as alibaba.id, i think that is one of the reasons we need to have a somewhat complicated solution, and somewhat complicated path forward, because we need to address how do we see the most value we can from the operating business, and how do we realized the most value we can in particular from the alibaba stake -- and also maximizing yahoo! japan. emily: some have valued the core business at zero or less than nothing. how much do you think the core business is really worth? marissa: everyone models this differently. i would say that my goal is to just make it worth the most it can possibly be worth. that means maximizing revenue, really managing our costs well. that is something we pride ourselves on. and doing the best we can to return shareholder value. we have returned more than $9 billion of shareholder value. we really are trying to manage all those different pieces. i stay more focused on the tactics, and less on the high-level modeling and valuation. our goal is to maximize it. emily: share

japan and alibaba.aid, that is one of the reasons why you see we need to have a somewhat complicated solution. and a applicator did pass forward. we need to address how we see the operating business. and see the most value we have from the alibaba stake. you want to make out who the best it can be. if you do end up selling the company, would you view that as a failure? i would say what is good for yahoo! is good for me and vice versa. there is not a personal interest that is separated there. we just want to see the best possible future and the best possible outcomes for yahoo! for our users, advertisers, employees, and shareholders. continueserg best," with a silicone valley exclusive. i'm scarlet fu. much more to come on "bloomberg best." ♪ >> changes underway at oracle. the world's largest software company is shipping to the product, and leading the charge is mark kirk. -- mark hurd. in 2010 he was scooped up by larry ellison. company'sw the president and redwood, california. he talks about his propos

below the some of the -- below the sum of the values of its shareholders, which includes sprint, alibaba,

everyone is aware of our large stake in alibaba. of that alibaba stake is the most direct path we have to value maximumization. there's a number of ways that can be achieved. reverse spin is one of them. various strategic alternatives is another way. >> if the business is sold, it's not exactly clear who would be running it for whatever company that actually stepped up and bought it. >> yahoo! is down, but so is the broader market. it's looking ugly with the dow down about 140 points. there is the intraday chart of the s&p 500, down 1.3%, after yesterday's drubbing, the worst for the s&p in two weeks. a lot of losers here are the banks, who are getting hit hard, the buying of treasuries, yields go further down. the ten-year note yield 181. over in europe, a lot of buying of the german bond. the two-year note yield goes further into negative territory. >> it was about financials, it was about financials overnight. the market continues to push out or push away the expectations that there will be interest rate rises. i think we're pric

they are gaining ground on news alibaba bugt a -- bought a 5.5% stake. groupon soaring along at $3.15. >>> soaring. yes. tax season is here and our next guest runs the world's largest tax service provider. joining us here in studio is bill cobb. good to have you here. donald trump names you specifically, he says he wants to put h&r block out of business, he says the tax code is too complex. it says here in the notes that you don't like the fact that the tax code is complex. i don't believe you. i think you like it. it means people need to use your service when it's complex. >> here's the situation. the tax code now is 74,000 pages

second against investment for softbank and of course as you would know, the biggest investment was alibaba and that stock is down this year as well.

japan and alibaba.aid, that is one of the reasons why you see we need to have a somewhat complicated solution. and a complicated pass forward. we need to address how we see the most value we can from the operating business. and see the most value we have from the alibaba stake. emily: you said you want to make out who the best it can be. if you do end up selling the company, would you view that as a failure? >> i would say what is good for yahoo! is good for me and vice versa. there is not a personal interest that is separated there. we just want to see the best possible future and the best possible outcomes for yahoo! for our users, advertisers, employees, and shareholders. >> "bloomberg best" continues with a silicone valley exclusive. i'm scarlet fu. much more to come on "bloomberg best." ♪ we live in a pick and choose world. choose, choose, choose. but at bedtime... ...why settle for this? enter sleep number and the ultimate sleep number event, going on now. sleepiq technology tells you how well you

, and take the cash from those and leave aside essential asset in the remaining cash from alibaba andjapan. matt: where does the ceo go? reporter: she might go home. matt: everybody we talked to said regardless of what is happening at yahoo!, she is a brilliant hot product person and would love to work with her. reporter: it is hard to imagine she would go. a positive example of a drive and acquiring this company. using them as a medium, and ad serving business. imagine they would have melissa meyer running a much smaller business, but it is something you could see in the future. home there,found a maybe there is room for melissa meyer as well. how much you take with you when you buy businesses? what do you take in terms of salary and commitment and where does the remaining business sit? now still ahead on oil going markets," through 2017. what does that mean for exxon mobil? take a look at the major averages as stocks rally. we are looking at games of 1.3% in the snp, dow jones adding 227 points. ♪ ♪ from bloomberg's headquarters in new york, this is bloomberg markets. let's go to fi

japan as well as alibaba.hat's one of the reasons you see that we need to have somewhat complicated solutions. we need to address how do we really see the most value we can from the operating business and then how do we realize the most value we can from the alibaba state and maximizing yahoo! japan. some have valued yahoo!'s business at zero or less than nothing. how much do you think it is really worth? >> everyone models this differently. goal is to that my just make it worth the most -- it can possibly be worth. really managing costs well. doing the best we can to return shareholder value. shareholdersned to over $9 billion of shareholder value. we are trying to manage all those different pieces. i stay more focused in the tactics. my goal is to maximize it. emily: shares are already opening down this morning. what is the message that you think investors aren't getting? what is the message you are trying to send to star board? are you prepared for a proxy fight? message is really that we have a strong futu

from a $26 billion stake in alibaba. there may be competing rescue plans according to a gigi press report that says directors met to discuss their options. will respect sharp's final decision when it comes. get mourners at bloomberg.com. bloomberg.com. hsbc is due to announce full-year results. 2016 has been a busy year for the bank. rod, what are we expecting today? are hoping will be better. the tax is expected to come in dollars.illion if that was the case, it would be an increase of 50%. 15%. that would be an increase from the previous year were came in at 7.3%. -- there still quite a bit of work to do on that. china,the slowdown in investors will be looking to see what the outlook will be for 2016, in particular, for example, revenue slows. there will be cost-cutting, costing about $5 billion by the end of 2017. also, how exposed it is the oil markets -- is to oil markets. most of the revenue has come in from asia in the last two years. angie? angie: when it comes the news headlines, it has already been a very busy

alibaba, a stake in sprint, gung ho, the game maker in japan. and yahoo! japan. and you look at softbank compared to those assets, there's a huge gap, something like 25%. he feels like the stock is a screaming by so he will start buying shares at this point. how are investors reacting to this? far, it looks like in the short-term, it is being taken as a positive step. they have traded offshore in europe so far. in the long term he had some serious problems he needs to address. the biggest is probably sprint which has been losing money and shares in the u.s. market. this is the big concern. alibaba is their most valuable holding at this point. they went public about a year and a half ago. as china has slowed down, people have gotten more customers to buy alibaba's outlook. alibaba needs to show that they can continue to maintain momentum as the china economy is slowing. what they have done over the long-term. angie: peter, thanks for that. eyeingt guest is opportunities in europe and japan on the expectation of further stimulus. the gas at management's executive -

japan as well as alibaba. plus the quarter.t said, that is one of the reasons we need to have a somewhat complicated solution, a somewhat collocated pass forward. alix: what does the future hold for yahoo!? uscover yahoo! are joining from the san francisco bureau, brian, what is different today that was not there yesterday for yahoo!? brian: that was a big question. when i was looking through the release. at some level, a high level, this isn't that new. essentially, strategic alternatives. we get some news, there is a committee that is being formed looking at this and taking an aggressive -- or at least a stance on, we will look at options. we also know goldman and others will be helping on the actual advising. that was somewhat new. the big announcement came about two and a half weeks ago that yahoo! was willing to look at strategic alternatives. back at lead to a sale. versa myers is trying to do three things at once. she wants to spin off alibaba, turn around the company, and explore strategic options. how do you do three d

is actually worth minus this alibaba stake.ave business owners going to the site everything will month, but revenue is it really growing. cost instead are rising. that is what you have these vast disparities. 'sat is why people say yahoo! core business is less than zero, and other people say it is worth $8 million. the reason that murtha miller and the board didn't start this earlier is because it was undervalued and they were not going to get a fair price for it and she was determined not to let that happen. spokenverybody we have to in silicon valley, they say that murtha meyer is absolutely brilliant and they would love to work from her -- work with her. i have heard that from marc benioff and other people. emily: she hasn't given no indication that she is anywhere but yahoo! now. she is a product person through and through. in my conversations with her, i have gotten a strong feeling from her that she believes she can turn this around. she believes that this is not the end of yahoo! she is not going anywhere right now. ther

the question is now what alibaba might be thinking.hey could buy these guys with the cash in their sofa cushions. >> it's interesting because we look at companies a broad and how do we partner with them to help us bring our products to other markets and i wonder if that's what they're thinking when looking at a u.s. company. how can they bring their products to the u.s. that could be interesting to see how that evolves over the next couple of months or so. >> what's so interest as good they have a partnership with a company in china that does what groupon does here and they were liquidating that stake and trying to build something internally and organically to partner with ali pay and they're taking a fresh tack to coupons and small business in general. if they have a partnership that was a little bigger, how do you think that would work? >> i could imagine it's about bringing some of the audience from alibaba over here to the u.s. perhaps. trying to figure out a way to bring that brand to the u.s. and get people in the u.s. interested

♪ emily: i know you were really bullish on alibaba's ipo last year.ullish are you now about alibaba and chinese internet companies? sir michael: despite the bedlam that we all read about, i will say something that will strike you as odd. i don't think anything has changed about china. the underlying consumer demand is very strong in china. the internet companies there, their business is very good. it is strong. it is healthy. it is vibrant. and we have built our own business there over the course of the last 13, 14 years -- emily: quite a robust business. sir michael: a very robust business, run by some wonderful people. and it's no accident that seven of the 20 most valuable internet companies today are chinese. because over the next 20 years, there is going to be far more business done between the technology companies that get started in china and get started in the u.s. than there has been over the last 20 years. emily: what does silicon valley have to learn from china? sir michael: i'm always struck by how eager people running chinese companies ar

the gains related to alibaba taking a 5.6% stake in the company. the standouts we have been individually walking -- watching today. gold is continuing to sell off as a risk back on kind of sentiment by investors. gold futures trading lower and crude is trading loader just lower. we got russia and saudi arabia and another agreement to hold and freeze production of oil, but not to cut it. oil is coming off a little bit on that basis as well. i finally want to talk about the 10 year. when you talk about risk being back on, one of the places money being out of is the treasury market. this is the yield for the year to date. it says we see people by treasury. seen a shift in the past several sessions as we see the yield coming up but as this illustrates, that is on the back of a lot of lying of treasuries that we have seen thus far this year. bond salesrporate are seeing the slowest start in years since 2005. today is a special start. apple and other large tech companies are offering after issuances were frozen last week. lisa abramowicz for more context

jack watt showing confidence and his company, alibaba. alibaba is down about 50% for the year. been grappling with slowing growth in china, and squeezed in price cuts. it is currently worth $26 billion, making it china's -- making him china's richest person. alix: for more stories, visit bloomberg.com. , livebigail doolittle from the nasdaq. abigail: here we are at the end of the month. it has been a bit of a roller coaster. februaryace to finish slightly higher. a real recovery there. one of the biggest, in fact, the biggest, point boost to nasdaq is cisco systems. second-quarter estimates . it is in some contest to the week outlook provided -- weak outlook provided to others, apple and and tell -- intel. alix: it is interesting that cisco in particular is higher on the month. what about some other tech leaders? abigail: it's funny, some other tech leaders like apple, amazon, alphabet, facebook are some of the biggest drags. cisco, shares are up about 20% at the month, they be fourth quarter estimates. however, remain stuck in this trading range. we have analysts recommending

david: what about the alibaba ipo? julie: november 2014?roblem is insofar that depreciation has increased. there was aally, lot of hope attached to marissa mayer when she came in, that she would be able to turn this company around. tom,curious, if i can ask, is it too early to ask what her next move is? in other words, say she does sell the company, does she have a job somewhere else? does she take time off to spend with her family? tom: there is no evidence that she is looking for jobs elsewhere. she doesn't seem genuinely committed to make things work in some fashion that yahoo! at some stage, she will probably moreto shift stages to be focused on i am dressing this up for a sale. a little more clearly than right now. getting into marissa mayer's professional life, but she is a brilliant product person with a great track record. marc benioff told stephanie that he would hire her in a second. she does not have to worry. christine: was and she brought in by shareholders? she was part of the solution when she came. david: the biggest problem

♪ cory: in funding news, alibaba looking for cash. yes, the company that just went public.hey are suing eight banks for as much as $4 billion. fundmoney could be used to acquisition plans. alibaba already has $11 billion in existing loans and credit lines. lots of cash available. nintendo is slashing its profit forecast in half, blaming weak sales of its handheld game player. ,uper mario has been struggling but the company is betting that its first ios and android apps will be enough to improve the bottom line. maybe. so, nintendo is very interesting because here is a company that sort of invented and popularized seeheld gaming, and now you that they have avoided the most popular platforms, the android and iphone's. >> if you look at the first half of last year, the stock almost doubled. they were open to embracing the mobile gaming platform. if you look at the forecast, it's a pretty big market. the problem is, the expectation was they would start launching , and now thesooner next game coming out doesn't use any of the flagship characters. mario? >> no mario. cory: come o

alibaba is the fourth biggest shareholder in the coupon site groupon. it purchased 33 million shares for a 5.6% stake as of the 31st of december. alibaba was also buying elsewhere, snapping up stakes in jet.com, lyft, and magic leap. ofupon shares have lost 86% their value since going public for years ago. coming up later this hour, a silver lining. why boeing and airbus are keeping their bases in china. coming up up, the roller coaster that is japan. we are going to ask of the economic track shows any sign of smoothing out. you are watching "asia edge." ♪ >>>> these are the stories making headlines around the world. taiwan has ended the search for victims of last week's earthquake. but two of the dead were found in the 17-story golden dragon apartment complex, which the quake.n the developer and architects have been arrested on suspicion of negligent homicide following accusations that corners were cut in construction. china has called on the u.s. to 76 years of hostility towards north korea in the hope of persuading kim jong-un to give up nuclear weap

right now, especially with alibaba shares tumbling over the last few months? >> this is why we've been neutral on the stock for so long. it's been hard to find any key growth drivers or business performance drivers. the growth and profitability is declining. the value keeps declining. the quality, the sustainability of the company is in decline. they have to do something. it would be to turn around the core business. if they want to now sell the core business, it's almost an admission of defeat that they cannot turn this around. >> so we know, vooi van, that the narrative have been negative for a long time. can we balance this out a little bit? is there anything they can do that would make your turn more positive or slightly more positive on the prospects for yahoo! going forward? >> well, i think the focus should have been what marissa mayer's most important skill set was from the beginning. she came from google. her focus at google was user experien experience. she didn't focus on that at yahoo!. she basically focused on financial engineering, on first the a

similar to alibaba.tock up 9% on that sales beat. >> and if we see that chart again, a nice rally throughout the last six weeks or so. one of the stocks in china that's managed to shrug off concerns of the recent weeks in the start to the year. other stocks to watch, goldcorp. reporting a big fourth quarter loss. the company expects gold production to fall this year. it remains focused on cost cutting efforts. down 7.5% in premarket. herballife in talks with the federal trade commission over the probe of its business practices related to accusations made by hedge fund manager bill ackman. the outcome of the talks uncertain. it bounced significantly today, up 13%. monster beverages' fourth quarter results were much lower than expected. demand for its products remain strong, but the company was hurt by weak foreign currency and inventory shift. do down 7.5%. >> now for today's top trending stories. is jack ma getting into the wine business? the alibaba ceo has reportedly purchased a vineyard and chateau in

with achnology stocks magic lead with a round led by alibaba.lued the company at $4.5 billion. a so-called mixed reality. virtual images superimposed over real world views. they say the extra cash will speed up the process of bringing the product to market. it also wants to use the alibaba site to sell the headsets in china. looke're going to have a at a communications company, lastse it fell 80% from year, but the company says it is seeing strong demand and it comes to data services, and the chief joins us from mumbai using skype. thank you for joining us. let's start off with the 80% fall. that is quite a decline. >> good morning, and thank you for having me on your show. i am not going to stress too much on the 80% decline, because our core business revenue, that , and if you look at what is driving that revenue, this is on the back of strong performance of our data services. our data services have grown by 17%, and we have been seeing sequential quarter on quarter growth. i am going to put some perspective to this data. at the start of the y

the super secret start-up has raised more than $793 million in a new round led by alibaba.aves the company at $4.5 billion. it will speed up the project of bringing their first product to market. magic leap is working on a headset that creates realties superimposed over real world views. google previously invested over half a billion dollars in the company in 2014. coming up, the video game disrupture that's shelling out serious cash for new games, even helping some pay their way through college. and up next, the official football of the nfl gets a high-tech upgrade. the next wilson x connected football coming up. emily: today marks the first day in history that a polygraph was used in court. since the beginning of time, humans have tried to separate fact from fiction and catch liars in the act. before the 20th century, this usually meant torture and a lot of speculation but on this day in 1935 the first polygraphic device was used to convict a criminal in court. it's still under dispute as a valid form of technology but there's no doubt it's changed the lying game forever.

if you look at alibaba, they had a one-day sale of about $14 billion u.s.nd in the past chinese new year, they generated a $12 12 billion red envelopes. these numbers are just phenomenal. you have a market that is so large with about 750 million people using smartphones. over half of them are able to pay online any fees. there are no credit card or paypal fees. that will drive a lot of new business opportunities online. a lot of people listening will say that even though it is a very big market and there is a lot of potential, of course these companies will grow so big because the chinese government protects their market share. what about the facebooks and the googles of the world that want to get into the chinese market but can't because of censorship rules? kai-fu lee: there are different american companies. microsoft,ome extent they are doing very well. others are struggling. is, can thessue american companies adapt to the chinese culture, environment, and requirements? the red envelope i talked to you about. if the company does not understand that conce

alibaba is now the fourth biggest shareholder in groupon. they purchased 33 million shares and the filing showed they were in onlinekes retailers and magic leap. they went public more than four years ago. the results the estimates last week given by the buyers. for sharp. in paper says they could buy they asked for a commitment to maintain staff levels. they are up against japan. website, we are looking at the challenges and, coming up later, all of the action as the chinese markets return from the break and we look at the currency dilemmas. outnext guest says to watch for statements from the bank of japan as the yen continues to strengthen. >> the central banks are in the headlines today. there is imminent interest rate ins on tuesday with a yield sovereign debts dropping the rate. exports slumped the most and to seeonomists we spoke them the staying on old, after lowering the benchmarks. signals that he is in a waiting mode. there is a chance they lower the a record lowh and of 1.66 with in a year. the aussie dollar strengthens considerabl

alibaba is not a tiny company. are two efforts, here in china, to essentially use these companies to put in the information that chinese citizens use when they apply for bank loans into a system that produces a rating. this is so that people who could not get loans are able to get them. it puts the information into a system which the government controls. the chinese government could not do that on its own. there's so much information from the citizens that they can be used by the government to be better. charlie: the theme of the splinter-net is that companies want control of the internet. scott: yes. there are ways to oppose that trend, to create brakes on it. the obama administration has been trying to come up with these, where you can at least limit the damage, retain some kind of broad public's fear online. -- public sphere online. this utopian moment work -- where cyberspace trumps the physical space and weary states fall along the way side, i don't think it is going to happen. charlie: you say the trend is in

alibaba has bought shares in a number of other e-commerce sites as well, like jet.com.hat certainly is giving groupon a lift today. chinese stocks overall as asia reopens fully after the lunar holiday today, are leading the way higher. back to you guys. >> bertha, thank you. >>> on to oil prices that big announcement overnight, jackie deangelis has that. >> prices see-sawing a bit. hugging the flat line, under $30 a barrel. $31.50 intraday was the high what do we make of the headlines that the russians, saudi arabia and other opec members have agreed to an output freeze? we don't make much of it. at the end of the day the big producers are at or near record production levels. this may be a step in the right direction, but we have not heard anything from the iranians or the iraqis here. they're sort of the swing producers within opec now. the saudi arabians are not going to lose market share and allow those two countries to take a little bit of ground away from them. an output freeze may be a good thing for the time being. still probably not going to help the fact that w

we like alibaba. we like alphabet.s had some trouble since the ipo, down about 18% in the united states. i assume it is a longer play, but that doesn't mean there could be pain along the way. scott: our recommendations look at 12 months. we have a strong by opinion recently implemented. we look at the selloff as -- carol: what is the catalyst? scott: the catalyst we see for alibaba, two 43 come to mind. this is abvious one, stock that still has very strong growth but is being priced as if it is nonexistent. second, they are a market leader that will be able to expand outside of china. notably, we think people are overreacting to what is going on in and around china. we think that is an opportunity. carol: we will leave it there. scott kessler, deputy head of research at s&p intelligence. carolthank you so much, massar of bloomberg radio. still ahead, betting on volatility. a number of new hedge funds hope to cash in on volatility in the head -- credit market, but is it too soon? we will explore. ♪ alix: from bloomberg