you are still be face of alibaba. you travel the globe all the time preaching the alibaba story.he visionary, the one who thinks about where alibaba might be. define your role today. jack: i have three things to do. when i retired from the ceo position, i told my teams, i promise when i am chairman -- i am still learning to be a chairman. i thought i would have more free time, play golf, oh my gosh. i spent so much time in the air last year. three things, the first thing is i will make sure our company is a mission driven company. mission and vision driven company. we are making sure the whole company is believing we are building an economy that can empower every small business. young people, women, they can easily do business through the internet. this is number one. i'm talking to everybody, everybody in the company i needed there was a guy i remember, i talked about internet and the value mission and vision of the company. he was sitting there, he was working for a fortune 500, he said, jack is a crazy guy. a company has no business model, no money and you talk about vision. i

are you still the face of alibaba. you are traveling the globe all the time, preparing the alibaba story. you are the visionary, you are the one who thinks about where alibaba might be. how do you define your role today? >> i have three things to do. when i retire from c.e.o. position, i told my c.e.o. and teams, i promise when i am a chairman, i'm learn learning, i'm still learning to be a chairman. i thought it i would be a chairman where company is big, i should have more free time to play golf, on the beaches but i find oh my gosh, i fly 870 hours in the air last year. and this year 1,000 hours in the air. three things. the first thing i will do is making sure our company is the mission driven company, mission and vision driven company. we are making sure the whole company believing we are doing everything to empower every small business, young people, women, they can easily do business through internet. this is number one so i am talking to everybody, everybody in the company i meet. i remember there is a guy call

i started alibaba in my apartment.ie: you have said to me before also that in your mind, 1, 2 and 3 are customer, employee, and shareholder. when you borrowed that $2000, you did not tell that person he was number three. [laughter] jack: the $2000 was from my relatives, parents, and all of the friends i got. i got $2000. when i raised the money for my ipo, even when alibaba was in the new york stock exchange, we raise $20 billion. i told the investors, we have been believing that customer is number one, employee number two, and shareholder number three. people said this is against the american investor philosophy. i remember one of the investors said, jack, if i know shareholder is number three, i would not have bought my stocks. i said, sir, please it sell it. [laughter] jack: i believe there is so much money in the world, but we only need the money that believes in our vision and mission. i believe that if the customer is happy, employees are happy the shareholders will be happy. , if the shareholders are happy, not

alibaba has come to america with a bang.se commerce giant is here to show businesses what the company is all about and how it can bea company is all about and how it can be a gateway to the chinese market. the harder sell of course will be getting american consumers to do their shopping with alibaba. when i asked mr ma, he said that wasn't a concern. when we think about selling alibaba products to americans, we are thinking about selling american small business, global small business, to china. we are not that interested in how big brand alibaba is. we are very interested in how oui’ is. we are very interested in how our small business brand is. but away from the drug is where you have alibaba's us away from the drug is where you have aliba ba's us investors, away from the drug is where you have alibaba's us investors, and the message they been hearing is that getting american shoppers is part the long—term plan. getting american shoppers is part the long-term plan. i think it's going to be far harderfor them to be able to s

that includes alibaba in its portfolio.rian, what do you make of the fact that alibaba is holding a conference in detroit, of all places? >> i think it's great what they are doing. i think they are trying to get out to american businesses, small business owners, farmers, and agriculturalists, and trying to educate them on the opportunities in china, which are massive, and also get them to sign up on alibaba. they say, look, you have been selling in america for a long time, but there is so much opportunity in china and the economy is growing so much. you should bring business here and start exporting here. there are a lot of chinese consumers over the last 10 years with the rise of the middle class looking for interesting products produced in america. it's a great potential marriage. emily: is the demand actually there? >> that's a good question. i would separate the demand from the supply. i think there is a demand in china for american goods. we have seen that repeatedly. the question is, where will that supply come from?

plus: can alibaba say "open sesame" to the us market?—commerce king hopes to work his magic on millions of small american businesses. so this is our chance to focus on the business stories today. so this is our chance to focus on the business stories todaym so this is our chance to focus on the business stories today. it is world business report. also become, the latest on the battle for control of toshibachip business. we were joined the team in singapore for that. —— toshiba's chip business. we start in brussels where, as you've been hearing, european union leaders begin a two day summit. top of the agenda of course, brexit, after formal talks on the uk's departure from the eu began this week. but there are different views around europe on what brexit should look like — let's take a look. the new french president emmanuel macron wants to keep britain a close partner — saying the "door remains open" to the uk changing its mind about leaving. for germany's chancellor angela merkel it's about maintaining the core principles of the eu like

market to alibaba more prodigiously than it has.e's trying to get this brand in front of small businesses and try to make it more acceptable in the eyes of the u.s. chamber of commerce and other groups who have been battling with alibaba and the issues they've had regarding, for instance, counterfeits. emily: amazon made big news by going to buy whole foods. alibaba has been investing in grocery for several years now. alibaba and amazon now clashing on a new battle line? >> to some extent may be but they are doing this in very different geographies. when you look at what alibaba is doing, it is primarily in china, obviously.i don't think amazon has any plans to get in there, but who knows? foods's takeover of whole certainly will make for a lot of interesting dynamics, but i don't necessarily think they are competitive head-to-head. i think they are learning from one another's strategies. you see that across the board. they have gotten into payments, media, cloud, so certainly they are learning from each other, but they don't direct

market to alibaba more prodigiously than it has been.o get this brand in front of small businesses and try to make it more acceptable in the eyes of the u.s. chamber of commerce and other groups who have been battling with alibaba and the issues they've had regarding, for instance, counterfeits. emily: amazon made big news by agreeing to buy whole foods. alibaba has been investing in grocery for several years now. do you see alibaba and amazon now clashing on a new battle line? >> to some extent maybe, but they are doing this in very different geographies. when you look at what alibaba is doing, it is primarily in china, obviously. i don't think amazon has any plans to get in there, but who knows? amazon's takeover of whole foods certainly will make for a lot of interesting dynamics, but i don't necessarily think they are competitive head-to-head. i think they are learning from one another's strategies. you see that across the board. they have gotten into payments, media, cloud, so certainly they are learning from each other, but they do

we'll see you next time. >> thank you >>> when we come back, alibaba, speaking of alibaba, founder andng with david faber. plus media mogul martha stewart joins david in detroit you won't want to miss that conversation tech is outperforming. it's one of the three groups higher along with health care and discretionary. that just dipped into negative territory. we'll be right back. [ crickets chirping ] [ light music playing ] you've wished upon it all year, and now it's finally here. the mercedes-benz summer event is back, with incredible offers on the mercedes-benz you've always longed for. but hurry, these shooting stars fly by fast. lease the c300 for $399 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. a used car, >>> welcome back to "squak in the street." i'm david faber in detroit where alibaba is holding its first gateway '17 event designed to entice u.s. businesses small and medium sized, as well as farmers, which are business men, to sell into china one way that jack ma, the company's founder and chairman, believes that employment will be increas

we have coined in instead of fang, stab b the a being alibaba. what's your pick >> i said it before, stab. i think there's more outside >> pick one of the four. >> of the stabs. >> of the stabs. i thought we were picking one of the other. i think there's plenty upside there. >> china tech has done better than u.s. tech an look at alibaba and the problem is the corps get tough. they're aggressively trying to take market share. cloud is going to go from 200% growth, but they have so many levers to pull, including financial and uku digital media. >> up 57% year to date i'm long, so i have to pick that one. i think you're seeing what happened to amazon i've been in and out since the 190 price tag. i think you're seeing a redo ofry >> stab or fang. >> fang because -- >> don't do it just because because you know you want to go with stab. >> i don't know with s is. kidding. it's a joke. you look at me with that face. >> i just said it also >> tim and steve have been on alibaba for some time. if you believe their fiscal 2018 guidance, then the stock hit

alibaba now seeing 2018 revenue up 45 to 49%. the analysts had been around -- in the mid 30s i think. >> 14% higher. >> this is an incredible reacceleration of revenue growth for this company, jim. >> incredible. did you see when it was announced people were stunned. >> it's not having an impact not only on alibaba shares but yahoo shares. the yahoo is up at a new high i believe. but remember that plan to buy back stock as they get very close to the close of the sale of the core business to verizon and the creation of altaba which owns 15% of alibaba as the main asset. that's happening tomorrow on alibaba shares. remember, they set up a ratio between 0.37 to 0.42. and just the timing couldn't be more interesting. they're going to get hit without a doubt they're going to fill their tender now. may get extended a couple of days is what i'm hearing. by the way the shareholder vote on yahoo's deal is today. it will be of course in favor. the deal will close next week, next friday is the last day of index trading before it gets droppe

globalized are not alibaba. we are globalized e-commerce.e,ke sure the payment, the marketplaces, and the logistics, making sure everybody today can compete with amazon, microsoft, ibm, this is what we want. >> this is the alabama chairman -- the alibaba chairman. now to detroit where bloomberg has been covering the conference. so selena, what were your feelings on the room? did he come across as likable? would you want to open a business on his platform? >> it is amazing because it is easy to forget that he is not just a global figure in china. he really has this art, this presence among americans. we have 3000 attendees, many from the midwest with local businesses descending upon the center and they are all there. eyes glued to the stage, watching jack march. entire hour an today, and he received a standing ovation. i think it is pretty interesting. it is part, how do i rally these small businesses, how do i inspire them to want to be a part of alibaba? he spent a lot of time going through his back story, how he was rejected from colleges

what will be more challenging for alibaba i5 big 5ell. down the line. that is to turn alibaba's platforms once down the line. that is to turn aliba ba's platforms into once down the line. that is to turn alibaba's platforms into a global platform, allowing people to buy something from the netherlands and haveit something from the netherlands and have it shipped to thailand within 72 hours. in order to do that they will need to buy in from the american consumer and that will be harder. the iraqi military is reporting that islamic state militants have blown up islamic state militants have blown up the famous landmark of the grand al—nuri mo5que up the famous landmark of the grand al—nuri mosque in mosul. thi5 up the famous landmark of the grand al—nuri mosque in mosul. this is 5ymbolic. it is where the eis leader gave a speech three years ago proclaiming a new caliphate. —— islamic state leader. it has a famou5 leaning minaret. islamic state are claiming that the us air force destroyed the mosque from the new5 force destroyed the mosque fro

one major challenge, alibaba has to show these businesses and others not in detroit to trust alibaba,erfeit, which is a big problem, and trust them on their products >> thank you alibaba is not only attracting u.s. businesses, it is also attracting a lot of investors. stock up whopping 61% this year alone. up 80 perce% last 12 months outperforming, apple, google, netflix. rob, good to have you with us. if you're forced to choose between a new stake or alibaba, which would you choose at this point? >> i think in terms of being furtherest from where it's appropriate valuation is, alibaba is the top of the list if i was ranking order, i think the next in line for me is netflix with the most cap appreciation over the next three years. i think of the mega caps, $100 billion and up, alibaba is probably still set for outsized gains the next 12 months >> company had a stunning analyst event a while ago. a few weeks back ago in china. gave some guidance that knocked the socks off of what analysts we are expecting out there in terms of the target, a trillion in gm or gross merchandise volume by

alibaba is a platform.t is not as easy as starting a new sales channel and listing on amazon which has created its own would just ask channel to standardize delivery. but alibaba, you have to go to third-party service providers to do everything from translation, regulation, logistics, how to ship to the chinese consumer, which is a big risk and burden for sellers to join the platform. vonnie: the question of a lot of people will be asking is, can they afford not to be on alibaba? >> at this point the risk-reward is not quite clear. it depends on the business. ,f it can take the upfront cost they will have significant demand with the chinese consumer, then it is significant. they will get across the red tape and reach half a billion shoppers. vonnie: check it out. techt to turn now to the summit. it is post to be taking place at the white house today. a lot of business leaders from -- what willos's, be on their agenda and what might be achieved? >> some of the discussions they want to have is how do we get p

alibaba million chinese citizens are living overseas.ing overseas. alibaba has roughly 600 million active buyers in its place. he was a quadruple that to 2 billion people within 15 years. $1 billion in southeast asian in retail is last year. very spending heavily in the region through investment and joint ventures. we see deals recently in thailand, south korea, and india. jack ma is very aggressive with all the cashier has, and it did was a bigger piece of the asian e—commerce by. we will keep an eye on him. -- buy. ever since the uk voted to leave the european union a year ago, business leaders in the eurozone have called for some of the city of london's most prized businesses to be moved to the continent. 0ne one of these segments of business, that generates millions of dollars a day for the city of london, is your row clearing. —— euroclearing. later today the european commission is set to release its proposals on whether it should be moved away from london after brexit. so what is euroclearing, and why does it matter if it moves to

markets >> the way that happens, like i said, alibaba have a huge consumer base in china the problem is businesses in the west find it difficult to send to china alibaba.com is a way to jump into china. >> cloud battle that sounds like they do want to go into amazon's turf >> jack ma made a huge expansion into the cloud service, they expanded in the u.s. and other parts of the world revenues in the last fiscal year, up 121 p 1121% in the clo division >> you have done fin tech, financial services, it's not that banks have to worry about other banks, but this lot, that lot, the rest of the tech sector i came back from china, i saw alibaba. it's the one stop shop for payments out there, loans, everything else you can think of you go into a shop, it's ali pay. sometimes they don't even take credit cards >> why is amazon, let's look at these shares two-year performance, 128% higher double alibaba come this way. go that side wherever you like. why is retail domination worth 100 whatever times to thr company? >> you say amazon is an e-commerce platform, but it's the industries they're jumpi

they missed out on alibaba.e rise again, so why not change the rules and make it easier for some of these companies? we have very few startups in the hong kong exchange. we will discuss that. betty: a lot ahead. markets coverage continues with rishaad and haidi. this is bloomberg. ♪ haidi: it is 9:00 a.m. in hong kong, 11:00 a.m. in sydney. i am haidi lun. rishaad salamat, coming to you from bloomberg's asia headquarters in hong kong. this is bloomberg markets. haidi: asia-pacific stocks start the week in positive territory. remainingakata

it will be known as alibaba, probably, much more famous than alibaba. >> more famous why?> because i think the tech thing that we are doing, we are enabling small business and young people to be able to reach financial support. the think tank is to empower the financial institute to be more powerful we think that we should make the ali into financing, that's something we want to do. how we can build up a system to meet the need of the 21 first century. and the second thing is how to make the financial process inclusive. we are in india, a lot of developing companies are using that some day we'll be up here. not because we are going to raise money, because we want that -- we want more people to know about that. >> that's what you said about alibaba, too >> today china is becoming a cashless society. >> you believe china will be a cashless society >> of course next five years, we are already counterfeit. in five years, we'll make most of the cities cashless in society. hong kong is almost cashless, almost >> we chat mobile is taking market share from ali pay, isn't it >> wel

i think it opens up a little bit more to alibaba.ut there, headline wise, that have brought down alibaba over the years whether it was economy in china, slowing down et cetera, et cetera, but the bottom line, and ross is correct, it's a little bit unfair, but i don't see it coming to an end any time in the near future. the bottom line is they continue to show that revenue growth, and there is a lot of pessimism towards a company when you look at this though, it is one of the strongest performers in the big sector right now i mean, it's well above it's 50, 200 day moving averages, if this stock pulls back to 130, 135, you're going to find all the people that have been sitting on the sidelinings waiting to get into alibaba buying those shares up i'd love to see a pull back a little bit now this is a stock again that is just being driven higher by that wall of worry. >> all right we've got to go guys, thank you both ross and chris johnson >>> telecom is taking it's u.s. cable subsidiary to the ipo market owbol tell you what you need to

. >>> alibaba's ceo has promised to create 1 million jobs here in the u.s. and to do that, the e xhaecommerce company which is o in detroit to showbiz owners how to market and ship their made in america products to chinese consumers. diedra has our story for us tonigh >> from pickles to baby clothes, to hand crafted treats. these products are made in america. but their owners want them shipped to china. about 3,000 attendees from across the country are in detroit to learn how to sell their products to china's growing midd and who better to learn from than alibaba, the country's biggest e commerce company, the founer telling them china needs more american products. >> china markets need a lot of americans, lot of products and leading america, the products, the quality, the service. you guys have the booth. beautiful products. we chinese consumers are crazy about that. we need that. >> last year, ma told president trump he'd help create a million jobs in america. it's part of him making good on that pledge. this wants to be the foot locker of china. they've be

plus, alibaba is hold be an avent to attract u.s. entrepreneurs. the vice chair of the company joe tsa i will join us for an exclusive interview with david faber to talk about that strategy the latest now out of washington and there's been plenty of house speaker ryan, are you saw that speaking to cnbc last hour about tax reform here's what he told brian sullivan when he asked him if he would support a push for a 15% corporate tax rate. >> i would love it if we could get the numbers to make it work. >> do you think you can? >> i'm all for it, something that's actually possible we're going to spend all summer long drafting and getting what we call scores, getting the numbers to work. we being the house tax writers, the senate tax writers and the white house and treasury department, getting these numbers to work, so we want to get these rates as low as we possibly can, get to a territorial systems. the basics that we all agree on and that's what we're working off of right now so we can stick the landing this nal because we really do believe you can't

why do you need to go through alibaba? i mean alibaba has come under fire for having counterfeits on its website. and i'm wondering if, perhaps, you could have gone it alone, so to speak, in selling directly to the chinese consumer, who would then know that it is directly from gerber? >> so we have looked at a number of routes to market in china, melissa. i think you make a good point. actually i was in a presentation yesterday with jack ma and the reason we chose alibaba as one of our primary strategic partners is their focus on being transparent with the consumer. those are the same values that the gerber business shares so we feel very confident in the platform i can tell you, at least two things with china. amazing dynamism in the country, and one of the most important decisions you make is who you choose to partner with and our alibaba partnership has paid off many dividends than we expected to pay off into the future >> bill, want to thank you very much for joining us today. we appreciate your time. >> thank you for

alibaba,ts include uber, and spotify.hat is your reaction to the downs we have seen in tech over the last few days? >> we take a very long-term view. thank you for having me on. we have seen dips and ups and flows. we still own a lot of alibaba and we take a 10 year view. silly, but we have a huge opportunity to have time arbitrage. a $400 to $500 stock in a decade, earning $25 per share, compounding it 24%. it is similar to what amazon compounded revenue at for the last decade. emily: when you look at the tech valuations in the private and public markets, do they seem justified? mitchell: in some cases, yes. in many, we think some of their stuff is expensive. there was a selloff, a lot of stuff came down. the reality is, there is too much money for too few great companies. if you're growing superfast, you can still command a premium valuation. in terms of public stocks, stuff is definitely not cheap. a there is a class of companies that are cheap. we would say they are garbage companies. people are willing to pay for gro

experience amazing. >>> speaking of big movers, alibaba has rallied 80% in the last year.r, not everyone is buying that story herb greenberg is the managing member of pacific square research, joins us from san francisco. herb, you haven't been a believer of this story from the get-go, and i mean, i guess a 76% move higher in a year is not going to convince you. >> well, scott, it's not that we're not a believer in what the business of alibaba is there's a real busy there. we've never said there isn't but since june of 2015 when this stock was 90, the stock going all the way to 60, we've been raising the risks that we think the underlying the numbers cannot be believed we're focused more on the underlying numbers that said, at this stage, if you look at any company and say there's an account historic, just an accounting story, that's dangerous. it's dangerous short, dangerous long in this case, we continue to believe as the stock goes straight up, this is a dangerous long and a dangerous short we continue to monitor it. we look at the numbers from last quarter. we continue

alibaba shares are up 6% in premarket trade on the news trading at a record high. let's get out to eunice for more. what are investors cleaning today from the update from the company? >> well, everybody is focused on that very rosy guidance for fiscal year 20189, as you said. the consensus had been that the growth would be 36% on revenue of $31 billion. well, the cfo presented a much more aggressive number, much to the delight of the crowds. take a listen. >> 2018 annual revenue guidance. we're expecting 45 pefrs to % t revenue growth. and that is -- you know, like i said, is not anything that we can adjust to make it happen. it's going to be all voted by -- of the merchants and consumers. and we have that confidence that based on, you know, the technology we have, the hope integrated business we have built, we're going to achieve that. >> alibaba believes that big data and ai will help it keep track of its customers needs and keep its customers much more engaged on its sites. the cfo said that's one of the reasons why you've seen a big push by alibaba to invest in

. >> later this hour, the future of alibaba. >> is daybreak asia live from hong kong. >> back to our top story, china's inclusion on msci indexes after three rejection. ofs is the former head equity research at msci. great to have you. have biggest surprises this to you? >> not really. this is pretty much a delayed >> the waiting is still so marginal. 0.7%.lk about you talk about a shares compared to offshore stocks. they're going to be worth it by some 28%. does it really matter at the end of the day? doesn't have an impact on where the flows go? >> not really. in terms of initial weighting based on current estimate, now flowu look at your passage , this will only be 2 billion u.s. dollars. that is just a couple hours of trading. be a very symbolic move over the long-term. have anes still accessibility issues which is the highlight. this is indeed a very difficult market to trade. it is disappointing for domestic investors. >> there is clearly going to be more hurdles. markets to be put on a global basis. the machinations of th

emily: you are also an investor in alibaba.e are reporting now that jack the $1.5rticipate in billion investment of the company grab, which is the ridesharing company and one of uber's competitors in south india. how do you feel about that? >> that is fine. they invested in lift a few years ago, and a lot of people give them grief about some of their investments, but i think severalested in lyft years ago and will do quite well. we think that southeast asia, in the ridesharing space, is a huge -- there is too much capital going into it right now. we are up, also after looking at grab, as we speak. we think that the market opportunities are a norm is there, and the fact that jack and alibaba are looking at it does not surprises. they want to continue -- surprise us. they want to continue to expand outside of asia. emily: thank you so much for joining us. facebook debuted a new blog today called "hard questions," which will address philosophical debates about the role of social media and society. the first post highlighted the fa

what is alibaba doing in the united states?s is our strategy and our mission is to connect a million small businesses in the united states to chinese consumers. >> so have you been relieved that the rhetoric surrounding china from the white house has stepped down considerably? >> i think everybody's relieved. when the two largest economies in the world are not getting along, that's not good for us, it's not good for the u.s., it's not good for china it's not good for anybody. i think that things have progressed in a way, i think the xi/trump visit at mar-a-lago went very well 245i clearly spent some good time with each other and got to know each other both personally and to start to talk about some of the policy issues and i think that other things have probably eclipsed the china-u.s. relationship at the current time but we're hopeful that things will be constructive >> what is the perception of what's going on in our country and specifically what's happening in washington these days in china? >> you know, i think that you'd h

alibaba investing heavily in the cloud to compete with amazon and microsoft.arety sellersr half of the products sold on amazon. kickite is too quick to them all. they are sitting to move business elsewhere. moment is benefiting the most after buying jet.com last year. >> another food company hit by amazon's deal for whole foods. blue apron cutting its ipo. it slashes to $2 billion from a 3.2 initial. >> as we mark the 20th anniversary of the hong kong handover we have extensive coverage through the next couple of days starting tonight when joinedt british governor the surveillance at 5:30. >> tamara our special coverage begins. we are joined by emily. >> daybreak asia, the former financial services and treasury secretary, now the chairman of hong kong mtr. today: 10 a.m. tomorrow, this is bloomberg. quite steffen only going to be a great day. -- >> definitely going to be a great day. talking more about this milestone in this city. stocks have extended a rally. growth picks up. let's cross over to beijing. tom mackenzie has one of wall street's leading voices o

alibaba. >> oh, sure. yeah, i -- alibaba is, you know, another fantastic story.their analyst day over in china, a couple weeks ago, they raised their topline griuidanceo the low 50s. think of a company of this size growing top line in the 50% plus range. and i think one of the beautiful things about alibaba is the cloud story that they have underneath much as amazon had with amazon web services, alibaba's incubating a nice growing cloud business underneath the retail side so i think this is another one that has a lot of growth runway ahead. that stock has done quite well of late. so it wouldn't have quite the upside profile as salesforce from here, but if we give it enough time, this is going to be a very good performer. >> i'm very surprised, to be honest, of your largest holdings, i don't even see facebook on the list the "f" in the f.a.n.g.s why not? >> more of a miss than anything. the company has executed so well and i haven't owned it for the past couple of years so that's more of my fault than any great insight that i've had on the company i'm happy we've

. >> outside of f.a.n.g., how about alibaba? can you speak to some of the other names, like salesforce and alibaba, some of the other names that have been performing just as well as the f.a.n.g. names. we've added fa eed f.a.n.g.man l sorts of things. is the same opportunity there as well >> measure over the long-term, i do we own alibaba, maybe not quite a top ten stock, but maybe my 11th largest position. it's the amazon and google of china. fairly big company, 1.3 billion people they do both commerce as well as information. more their revenue comes from the marketing side than it comes from the commission or commerce side it's not like amazon, they don't own the inventory. but they have a direct and persistent relationship and connections with their customers. and they have more and better data about these customers than anyone else. and so they're changing the game about the way retail is developing in china and like we're seeing in amazon here, they're not just going online, but they're also going offline they want you to w

. >>> alibaba sees revenue growth that blew past analysts analyst expectations. shares popped by 13%, $134.34. >>> j.m. smucker saw sales fall because of weak demand for coffee and pet food products. cost cuts helped offset the decline. that allowed revenue to top street expectations. earnings also fell, but they came in ahead of estimates at the same time. shares off more than 1% for j.m. smucker to $128.51, sue. >>> bill, drug maker valeant said it would sell inobviovo to unit jointly owned by equity partners and carlyle group. shares rose to $13.26. >>> in a regulatory filing, clothing retailer urban outfitters warned same store sales are falling in the high single digits, a steeper drop than what the street was expecting. that news sent shares lower by 10% to $16.35. >>> yahoo!'s shareholders approved the sale of the company's core assets to verizon for $4.5 billion. according to reports, verizon will lay off more than 2,000 employees at yahoo! and at aol as it works to combine the two units. when the deal closes next week, yahoo! will change its name to alta

alibaba not done. >> jack ma made 2.8 billion on paper yesterday.ay, stifel goes to 185 and gold goes to 179. >> i'm stunned. i was stunned by the -- i was stunned by when they raised that growth rate. i have not seen that growth -- a large cap raise its growth rate at that ferocity. it's just -- the velocity of selling there is extraordinary. >> yes. i did want to hit toshiba's flash business. >> sure. >> you and i had an interchange after the broadcom call. i went back and looked, it's true. they did seem to down play the large acquisition. that said, my sources indicate that they are in fact right in there. that is broadcom trying to buy the flash business of toshiba. really all we're doing is breaking news. others who have reported on this, so i don't want to -- >> no, let's talk about this. >> but they are seen -- there's an interesting process going on in japan. you have the government -- the japanese government that sees it as a national champion. >> right. >> this flash business. they are trying to put together a group that includes potentia

small business owners are gathered in detroit today to pitch their best ideas to alibaba.turday down with jack ma at the gateway 2017 conference talking about the rise of technology and the impact it's having on business listen >> it's about wisdom, about experience i don't think that the artificial intelligence is going to replace the wisdom. >> i continue to wonder what that world will look like over the next 30 years. >> will be painful because the knowledge is not enough, the wisdom is not enough jobs have been ticking our way some people who catch the wave will be witch, more successful some people more painful the government -- the world will be dated the people will now have more data than the bosses >> you can catch more of that interview with jack ma at 9:00 a.m. eastern on squawk on the street always entertaining. >> and so much tech action >> and alibaba stock has been strong >> exactly >> we are approaching the top of the hour the team is getting ready for "squawk box. becky quick joins us >> heard what you had about uber i heard that on npr, all the things kar

if i were alibaba and looking to make, get into, make a footprint here as far as retail in the united states, that would be something that or target or something would be very interested to invest in. what do you think would happen to macy's at eight times if they took a ten or 15% take >> you don't know. >> and also this, why macy's why not another one? did you find that one because that's the most likely candid e candidate? >> i think the most likely among department stores. >> all right clearly, we have dissension here your daily cup of coffee may perk you up in morpg, but we can't say the same for your portfolio. the coffee trade cooling off starbucks down 7%. dunkin' down 5% in june. coffee futures have falling 4%, but our chart master says one of these trades is about to warm back up. break it down, carter. >> doesn't make a play on starbucks, it's been weak and maybe you've got bounce potential. start with the lopg term chart and sort of work backwards to the here and now what you have on the screen is well, it's a ten-year chart. you can see the lines i've drawn. often, if you

alibaba, it looks like a break out.t doesn't give me any reason for it to fall what is the difference between a breakout that works and the break jo ut that you see that you should sell? >> well, it's a very fair point. clearly, we have seen the breakout we'll say tesla, for example the breakout was 280 so i'm not going to do the math here clearly, we are up in a very short period of time a lot is not a technical term. let me give you technical term sentiment has peaked in the group, stocks are peaking at their all time high. you see a clear sign of trend exhaustion, you see in some cases, record high readings. it's the most crowded space in the market here and you are entering the period of challenging seasonality. safe havens are surging. that's a backup for a reversal. >> that's on top of what you are seeing technically. >> i think these are strong setups they're in strong trending markets. there is nothing to suggest the sky is falling a and the world is ending. my case and my call sheer for a short-term perfectly r

nejra: alibaba has predict did 49% revenue growth this fiscal year. with an analyst projection of 35% as alibaba invests in other areas including cloud computing and online media. airbus may be thrown a lifeline for its a380 superjumbo. emirates to buy more. emirates is the biggest operator in the world. the order could be worth $8.7 billion before discounts although people familiar say the carrier hasn't decided how many planes it wants. credit suisse investors will buy $4 billion9% raising for the banks turnaround plan as the second share issue since the ceo took over. in april, credit suisse ditched plans to list part of its swiss operation. that is the bloomberg business flash. francine: tune for our one-hour special on the election at 10:00 p.m. u.k. time. exit polls are published and number customers can follow that on tliv . guy johnson and jon ferro will be headlining at. bloomberg surveillance continues in the next hour. tom keene joints me out of new york. we will be talking to alex friedman. this is bloomberg. ♪ no convincing inflationa

companies jump on board with alibaba.looks .t the powershares from new york, this is bloomberg. ♪ >> misses bloomberg markets. julie has today's options insight. is -- when youy are here last week, we talked about the triple cues. the selloff in the rotation we saw into value. here we are about a week later and it is hard to make sense of what has happened last week. >> i would say the current theme is frustration. we've had a rotation of different sectors on a daily basis. peoplegest cinnamon is think that selloff was technical fundamentalven, not . we think there could be big sellers celebration on any >> it sounds like you want to buy that insurance trip that you want to make sure that if there is another downturn were not caught. >> we like using the strength on ahead. it is hard to its weakness in the market and people are thinking it is your money flows are now and that is what we are saying these rotations. week you are reopening that with a different price that you are looking at. walk me through it and why. we re

in china, we have the alibaba group.major shareholder in -- shanghai. >> of coures. -- of course. what is the value add and the difference of having investors from china versus elsewhere? >> china is a huge market for us. engine forearch e-commerce. some of the biggest e-commerce companies are in china. so, the chinese market itself as well as chinese companies iloring for the rest of the world. >> is it also because there are other areas where it may be hostile to chinese investment, the u.s. has gotten harder to invest, or to except foreign investment? is that why some of this money from china is looking at other markets? comment on the geopolitical situation between those two big nations, but i think between china and israel, there is no such thing as limits and for israeli companies to work in a joint venture situation in china to market their products, i think it is all very much something that can be done in a much more flexible way. and the two cultures are kind of some appear you may of heard the phrase that they

businesses on the alibaba platform.he cynic in me or is faced trying to combat that as well? >> sandberg herself has small businesses for the last couple of years. it is also because she wants to show that facebook can increase a set of advertisers beyond the big brand you think about. on main street, wants to expand and grow. cheryl is telling stories like the one about the small german company she met with. use in the thing she can sales meetings to prove that facebook has a huge impact. it is a lot harder to tell that story about pg&e or any other larger brands. vonnie: exactly. it is ironic a company looking for your data is strenuous story with anecdotes. sara, thank you. looking to catch more of that exclusive interview with facebook coo sheryl sandberg throughout the day. this is bloomberg. ♪ vonnie: this is "bloomberg markets." time now for a look at some of the biggest business tories in the news right now. apple in its long-running legal battle with qualcomm. mounting evidence that the chipmaker is operating a

alibaba founder jack ma was optimistic about his comments on job growth.also created more than 33 million jobs. this is what we are most proud of. our goal is that we get bigger, even crazier. caroline: coming up, toshiba is said to be in the final stage of negotiations with bidders for its memory chip unit. we are live in tokyo, next. a reminder of our interactive tv function. find it at go on the bloomberg to watch us live. you could send producers message, play along with the charts. this is for bloomberg subscribers only. check it out. this is bloomberg. ♪ caroline: a shakeup at tesla. the head of its self driving software unit is out less than six months after he joined the company from apple. the new head of tesla's autopilot software and hardware will be jim keller. after months of speculation, toshiba is inching closer to announcing -- the sale will be a short-term gain, freeing up cash. we will be digging into this much more now, looking ahead into what has happened with toshiba. let's get out to tokyo, where we have our -- now, we are moving