of companiesrepeat trying to compete with alibaba where alibaba ended up competing and really took the it will be a case-by-case basis. emily: that was bloomberg tech's peter ahlstrom. sticking with china, alibaba is taking a page from the amazon go cashless convenience store. bloomberg asia correspondent stephen engle got a look at the festival that features other new retail strategies that integrate online with off-line shopping. stephen: the festivals were the -- where the virtual world meets the physical. some 108 vendors here are selling their wares. the targets are the millennials on their smart phones, buying all kinds of stuff. the festival is in its second year is double the size of last year. it is an off-line showcase for china's entrepreneurs who have online shopsful without crippling the brick-and-mortar overhead. whether it's the latest in design or virtual reality combat, the festival represents the new youth driven consumer economy in china. a quarter of the vendors are those born after 1990. in this melee, the generation gap was all too evident. this 30-year-old knew e

it does make more sense for alibaba because the business model is more similar to alibaba in that itellers rather than selling from its own shares. shelves, whereas jd has tended to only entire chain from their warehouses and delivering to the customer. emily: staying on that side of the globe, in india, amazon making a bid for the indian payment business. tell us what is behind this. >> nothing is going to stop jeff bezos to win over india. big market withust more than one billion people. he needs to have a strong digital payment system to make e-commerce as easy as possible. he has big ambitions in e-commerce and payments. the local competitors, one of them has their own large payment service. amazon needs that as well. freecharge is a good extension of that. emily: what does this mean for local amazon competitors in india? >> amazon would be buying a this from snapdeal, a smaller competitor. for the smaller local competitors, they need to up their game. in the midst of the potential acquisition, snapdeal and flipkart are in talks for a merger. this would mean there would be a stro

theay see a repeat of efforts of the american commerce companies to compete with alibaba, where alibabathe market. so itve strong players, will be a case-by-case basis. emily: sticking with china, e-commerce giant alibaba is taking a page from the amazon go cashless convenience store. so it cafebe a case-by-case basis.shr concept. stephen engle got a look at the festivalused how about taobao festival that features other new retail strategies that integrate online with off-line shopping. stephen: the festivals were the virtual world meets the physical. 108 vendors here are selling their wares. the targets are the millennial's -- millennials in china on their smart phones, buying all kinds of stuff. the festival is in its second year, and double the size of last year, and it is an off-line showcase for online shops without the crippling brick-and-mortar overhead. whether it's the latest in eye-popping design or virtual reality combat, the festival represents the new youth driven consumer economy in china. in fact a quarter of the vendors , here are those born after 1990. in this melee the

they sell their products via e-commerce giant jd.com and alibaba.illion in products globally in the last three years. sticking with gaming, activision lizard announced the sale of its franchises in the overwatch league. among the buyers, knowing the patriots owner robert kraft. i spoke with kraft and the activision ceo in sun valley, idaho. i asked kraft why he made the move to e-sports. robert: we love the infrastructure bobby has set up at activision blizzard. we have looked at a lot. us,overwatch league, to having 30 million players at this point. just in the evolution really appeals to us and the concept of having 18 in the new england region. we know we have an infrastructure and we can do a great job with the development of that. being part of something that can be globalized is very, very relevant to us. emily: i want to talk about the finances here. bobby, how long do you think it will take before the overwatch league can compete with the leagues financially? have a 26-year history of providing superior returns to our owners. we look at owne

the company run by jeff bezos took a page straight out of alibaba's handbook.e chinese e-commerce giant has capitalized on 11/11, a.k.a. singles' day in china. turning the anti-valentine's day into one of the biggest shopping days of the holiday. on singles' day in 2016, alibaba wrapped up almost $18 billion in sales in the 24-hour event. but comparing singles' day to prime day isn't completely fair. alibaba has been running the show since 2009. amazon only started these promotions in 2016. another key difference, prime day is only available to the approximately 85 million prime customers, while alibaba's event is open to all online shoppers around the world. while prime day is still in its early stages, it is already showing signs of being a big success. when amazon held its first prime day in july 2015, it marked a turning point for the stock price. over the past two years, amazon shares have gained almost 120% in value. amazon may have catching up to do, but if it continues to follow in the footsteps of alibaba, amazon may be writing a prime success story of

at alibaba headquarters in china, 11:00 a.m. on wall street. and "squawk alley" is live ♪ >>> good wednesday morning welcome to "squawk alley." i'm carl quint knanilla along w sara eisen >> technology is one of the leader sectors and president donald trump is on his way to meet with g20 leaders in germany later this week, including the one-on-one with russian president vladimir putin all this amid growing concerns over north korea's growing tension. that escalated over the weekend. joining us to discuss is john rutland, and math chthew mcgwir former director at the world bank welcome to you both. thank you for joining us >> good morning. >> john, your expertise is china. you have studied china for a long time. we have been trying to dissect the tweet this morning, trades between north korea and china grew over 40% in the first quarter. so much for china working with us, but we had to give it a try. that was from president trump as he embarked on this journey. what is the prospect of a risk factor for investors escalating tensions between china

alibaba, does that help you get into china?re focused on the seven markets we are in, so no immediate plan for china, but does help us across southeast asia. exit?d: what is the >> we are focused on building. rishaad: ipo, timeframe, what you reckon? >> over time, we are helping people compare financial products. give 600be great to million people ownership, but ask me again in 2-3 years. telcos, entrance banking, what other silos? >> those are the three. rishaad: where are you moving after that? >> know, we are focused on that right now. rishaad: strongest market? >> philippines, indonesia, thailand. singapore, taiwan, even faster there, that we are seeing great traction all the markets. rishaad: good stuff. >> thank you for having me. rishaad: compareasia chairman. haidi: our interactive tv function. you can find it at tv on the bloomberg and watch us live, but catch up on previous interviews and do a deep dive into any of the securities are bloomberg functions we talk about. you can become part of the conversation by se

it is somewhat controversial, it was spun off from alibaba in 2014.eholder in alibaba? yes, that is what happened. it was driven by the regulation requirement in china, third—party payment providers. regulation requirement in china, third-party payment providers. just looking at where your focus is now, we are talking about the expansion to new markets. you are still only targeting chinese consumers who are travelling abroad. why not target consumers from wherever they come from? actually, i get that question every day. at the moment, in this region of europe, we are focusing on the cross—border opportunities. you know, bringing 450 million users from china to spend in europe and help them have the same experience they have in china when they are travelling in europe. but we are trying to expand our user base from china to the rest of the world. now, the focus is now more on asia. as you know, we made several investments into several countries in asia last year. that is part of oui’ in asia last year. that is part of our effort to expand our user base

many in our audiences will know the name lasada which is owned by alibaba. it is getting very competitive in this tiny market of just 5 million people. you might ask why do these big names come to singapore? according to amazon, what they said to me earlier today, it has a tech savvy customer base, and it generally, what works in singapore might work in southeast asia. but logistics and infrastructure will be major challenges as they try and expand in the region. thank you. let's have a look at the markets. japan's nikkei inched up, reflecting a rally in riskier assets around the world. a sharpjump in game maker nintendo helped too — on the back of stronger—than—expected profits. the rally in stocks was driven by the federal reserve keeping interest rates on hold in the us and investors sensing that they may not rise again this year. that caused a sharp fall in the value of the dollar to its lowest level in more than a year — but it helped push the us markets higher, to fresh record highs. the dow gaining almost 0.5% after boeing shares soared nearly 10% aft

amazon.com facebook, alibaba also helped samsung railing ona alibaba also helped samsung railing on atain types of chips nearly doubled from a year earlier and record highs this year shrugging off all the drama that the company has had to endure. thank you very much. in other news: german car giant volkswagen has said cooperating with rivals is standard industry practise and that it helps customers by speeding up innovation. the comments, following an emergency board meeting, come after allegations in the german press that bmw, daimler and the vw group engaged in collusion over diesel emissions and other issues including pricing— claims they have dismissed as speculative. let's ta ke let's take a look at the markets. tokyo stocks and other markets in asia rose on thursday morning. that was back at optimism of the companies posting results better than expected. the dollar fell after federal reserve is kept interest rates on hold as expected but it has given expect is an appetite. the three main us markets moved higher as us stocks surged to a fresh record highs. the dow gaining almost

alibaba has unveiled an amazon echo-like device.nd samsung each prepared to deliver their own -- develop their own ai-powered speaker. with more, mark gurman and our guest host for the hour, martin mignot. talk us through what we have being unveiled from alibaba. mark: the interesting thing is, only for the first trial, 1000 orders. i'm curious to see how high the price goes once they pass that or if there are even going to be more than 1000 people rushing to buy it. i will assume there are, given how big -- i will assume there will be, given how big alibaba's spread is across asia. 2017 has become the year of the digital speaker. caroline: everyone wants in. how does it compare therefore with the landscape? why are we seeing the drive to own the home at the moment? what do these companies want within their ecosystem? mark: you saw amazon and google jump in with updates to the ecco line -- echo line, lots of new alexa devices. the echo show, the echo look, part of the same family. it's more of a style guide or your wardrobe. apple l

but for alibaba, it pays off.ts shoppers, on my paypers, to use their ali in the off-line world. that is data that is very valuable. emily: bloomberg's stephen engle reporting from china. coming up, one of the world's biggest cybersecurity companies has ties to russian intelligence services that go deeper than previously known. we will bring you a bloomberg businessweek report. this is bloomberg. ♪ alisa: i'm a alisa parenti in washington. you are watching "bloomberg technology." that's a start with a check of your first word news. the epa has been saved from proposed m

carol: alibaba wants to dominate commerce.liver: this is "bloomberg businessweek." ♪ ♪ carol: welcome back to "bloomberg businessweek." oliver: you can also find us online at businessweek.com. carol: and our mobile app. oliver: a growing number of scholars and regulators want to stop facebook, amazon, google, and apple from getting any bigger. carol: that may be easier said than done. >> almost without noticing, these companies have gotten huge. not just in the united states for globally. let me throw out a few numbers because i think it really hits home. google has 77% of the search advertising revenue. facebook has 75% of mobile social traffic. amazon has 70% of the e-book market. those are monopoly-sized figures. no doubt they are monopolies. there is no court ruling, but this is what a traditional antitrust theory says is a monopoly. almost without looking they have gotten so big and so well, who cares? big is not bad. we have gotten over that issue a long time ago. there are now some studies showing their bigness may have

oliver: alibaba does not seem like they need to seek out new revenue sources yet.i guess it never hurts to keep expanding. i wonder why they are doing this now, why they are taking the measures to really break off teams and money and give it support. jeff: they just reported earnings that were well beyond most analysts' expectations. it is projected for the fiscal year ending in march they will see revenue growth between 45% and 49%. so it does seem like they are saying now is a good time to start thinking about a five to 10 year window to finance this relatively tiny sports arm. a lot of runway to figure out how to build a sports market there. oliver: it does not seem like it is something that is terribly urgent or the need to get it. it seems like from your justters' writing, let's get the ball rolling. jeff: the quotes in the story just a matter are really saying what about financial revenue growth as a financial strategy overseas. oliver: if i'm reading this, as an investor this sounds , pretty good. my company is, why not? let's explore more. jeff: right, so t

don't miss my exclusive with an alibaba claim, up over 40% over the last month alone i still think it might be a buy. do your stocks have what it takes to survive in the unknowns in the market? i'll be the judge in "am i diversified. all your calls, on tonight in the "lightning round." so stick with cramer [car tires screech] [bell rings] at the lexus golden opportunity sales event before it ends. choose from the is turbo, es 350 or nx turbo for $299 a month for 36 months if you lease now. experience amazing at your lexus dealer. and i am a senior public safety my namspecialist for pg&e. my job is to help educate our first responders on how to deal with natural gas and electric emergencies. everyday when we go to work we want everyone to work safely and come home safely. i live right here in auburn, i absolutely love this community. once i moved here i didn't want to live anywhere else. i love that people in this community are willing to come together to make a difference for other people's lives. together, we're building a better california. >>> we can name 1.3 billion reasons why ch

alibaba has unveiled an echo-like device.hinese internet giant tencent and samsung have developed their own ai powered speakers. on thee with mark gurman. growing artificial intelligence landscape for your home. trial, for the first 1000 orders, i'm curious to see how high the price goes, or even if it will be one of 1000 people rushing to buy it. i'm sure there will be given how big alibaba's spread is across asia. this year, 2017, has become the year of the digital speaker. >> and everyone wants in. samsung once in. ants in.w larry seeing this drive? what do the companies want in their ecosystem? >> he saw amazon and google jump in last year with update to the echo line. lots of new elects a devices -- alexa devices. the echo show has the screen and the echo look as well. it's more of a style guide for your wardrobe. apple, they announced the home pot for $350. tryinge players in china to jump in. why do they want these? apple, the home politics advantage of apple music and siri and home kit and their home-based services an

hugely established competitors such as alibaba?aba have about 50% of the market in china, then you have amazon trying to move it. i think they should really leave china alone, it is too big of a battle for that. i think they should focus on india where they have a much better chance, where they are more role less neck and neck. —— more 01’ or less. we also have the latest global economic forecast. attention will be on what imf says about the chinese economy and any possible effect on the uk economy because of brexit talks. the us website webmd is reportedly being sold to a private equity company. the company is estimated to be worth more than $2 billion. according to reuters, negotiations are being made for an all—cash deal. the company purchasing will add it to their portfolio. a driver death linked to ta ka ta portfolio. a driver death linked to takata is portfolio. a driver death linked to ta kata is being portfolio. a driver death linked to takata is being investigated. it is the 18th that had he recorded worldwide related to a

talking about amazon's approach and alibaba's approach alibaba is approaching it differently.y're making investments in big box stores they want to apply their set of circumstances, logistics that's why they want to invest in retailers i think we are going to see that approach amazon started it. we're going to see it in the department stores. may see some consolidation two years ago they were valuing the real estate at $20 billion three of those stores, new york, chicago, san francisco at 7 billion. we have a company now that has a $7 billion market cap, $6.5 billion in debt. dividend yield of 6.5% trades at eight times earnings you'd have a massive short squeeze if we had some sort of etailor invest in them macy's right now is interesting. down 35% on the year, down 70% on the highs sentiments are horrible, activists are gone look at that chart right there i want to tell you look at that down trend i think the intersection of the down trend and breakdown, that's 30 bucks you want to look at january expiration when the stock is trading at 23 bucks. you see buy the january 23,

e—commerce companies like alibaba are firm. e—commerce companies like aliba ba are driving firm.oom in demand for warehouse space here in asia. a proposed class—action lawsuit has reportedly been filed in new york against the american aluminium company which supplied cladding panels used at the grenfell tower in london. dozens of people died in a fire there last month. the complaint against arconic says that shareholders suffered losses as a result of its failure to properly disclose its use of the highly flammable panels. arconic shares recently suffered their biggest intraday all sense it was spun off from alcoa last november. the head of japan's largest e—commerce company is broadening his reach to football, and not just company is broadening his reach to football, and notjust any old scene. these are the european champions, fc barcelona. he has signed a sponsorship deal signed $58 million to have his name, his company's name, rakuten, prominently displayed on theirjerseys. who is the man willing to play such a premium? we caught up with him in tokyo. did you purchase anything

alibaba is trading 31 times. it you can see the disparity. amazon is projected to grow 37% versus 33. reward,see, for risk stillmes in china are values for the growth they represent. betty: you can track the performance of chinese hedge funds and compare it to the u.s. . it is very different. it is tough to be in that business. a couple of questions on this. did they miss out? the u.s. hedge fund missed out on this china rally on the china returns? what do you make of that? that on think it is too late. certainly, the first half was a great time where, because a lot of the names were oversold by the end of last year, we have some tailwind in the first half. if you look at the valuations and the fundamentals of these companies, i think we are going to continue to outperform in the second half. >> we have been reading about chinese hedge funds, given the and comingormance here to the u.s. and opening offices. the money from these high net worth people in china coming to the u.s. and establishing some satellite offices. do you see that trend gro

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 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 break ou

>> baidu, alibaba, and tencent a rapidly trying to catch up to google, facebook, and amazon.e help of the government, it will accelerate the closing of the gap. baidu has done significant work in voice-recognition technology, and driverless cars. they have a big research center in silicon valley as well as one in china with the cooperation of beijing. ur ase seeing tencent po well as alibaba. we are seeing them invest in driverless technology. this is going to be fuel to continue to push ahead and be the leader in this field. emily: selina wang, thank you so much for that report. david kirkpatrick, you are sticking with me. coming up, from netflix's international search to google results, we will break down earnings and look ahead to the onslaught. this is bloomberg. ♪ these days families want to be connected 24/7. that's why at comcast we're continuing to make our services more reliable than ever. like technology that can update itself. an advanced fiber-network infrustructure. new, more reliable equipment for your home. and a new culture built around customer service. it al

the same is true in china with alibaba and tencent. they have the ways and people to advance it.sure they will be working closely with the chinese government. it is worrisome. we are still ahead. we cannot assume that will remain the case. emily: what does it mean for those chinese companies that david mentioned, the biggest chinese companies already working on ai? reporter: baidu, alibaba, and tencent a rapidly trying to catch up to google, facebook, and amazon. with the help of the government, this is probably just going to accelerate the closing of the gap. baidu has done significant work in voice-recognition technology, and driverless cars. they have a big research center in silicon valley as well as one in china with the cooperation of beijing. we are seeing tencent pour as well as alibaba. we are seeing them invest in driverless technology. this is going to be fuel to continue to push ahead and be the leader in this field. emily: selina wang, thank you so much for that report. david kirkpatrick, you are sticking with me. coming up, from netflix's international search to goo

there is alibaba and softbank backed atm's, but the war has only just begun.ent stephen engle says at the moment, profitability come second to market share. >> were going to that maturity where you have ecosystems, and i think how is shaping up is, one alibaba andlongs to another ecosystem belongs to amazon, including payment and content and so on. >> how are you going to win? brady investments going to keep throwing money at it? amazon, $5 billion and counting. when or how does it end? >> the picture here is if you're planning to win by throwing more they, there is no into money in the tech wars we're talking about. is going to be who has more customers and connections. it's gone beyond throwing money. toowing money was a trick make a large sum of money. >> what is your priority right now? >> a large number of users. it's a large number of users and inactions. >> how far down the road is it? >> 2020, nothing before that. overheating is an outcome of overpaying. for $3.1ube was ought billion, it was overheating. when instagram grandma spot for $1 billion, it w

timesthis a sign of the that hong kong cannot miss out on the next alibaba again?se. now we're talking about high-tech economies. set manyave had was years ago. i think it is time -- i wouldn't say for sure we have to go, but it is time for the market. the market too, and have insights so regulators will be able to set the appropriate limits. some ipos ine had new york. i'm curious given the volatility that we have seen in tech shares and the selloff, might that also andeneficial for hong kong other overseas stock exchanges when you see this kind of volatility in the u.s. market? benson: definitely. what the hong kong stock exchange is trying to attract are focusing on high-tech and new economies from china. hopefully after the passing of the consultation. we will see new groups coming out soon. betty: thank you so much. the entrepreneur group leader at pwc hong kong. one feature on the bloomberg we want to bring to your attention is the interactive tv function. you can watch us live and see previous interviews and dive into any of the securities are bloomberg func

risingis shrugging off regulations in the financial sector and alibaba had it fifth intact.to lending. the head of lending said syntax is big enough for more players. >> over the past few years, we noticed problems in this industry, this industry needs reparations in place to enforce activities and the measures and to make the industry, to do better. >> is it important to innovate before those regulations stifle? difficult because in a way sometimes we need more space to innovate. if a lot oftime, players in the markets are not self-contained -- regulated, the government and revelation rules. they need the rules in place to make sure everything is fine. >> what is the biggest risk to you heard or -- risk to you? >> management. many people have trouble to pay back, and the other side is the financing side. the cost increase so huge and squeezed our profits, so those are the risks i have seen. >> the chairman has talked about the troubles xiaomi has had losing market share, sales coming down. maybe the market grew too fast, but in financial services, are you late? >> i would n

on the flip side, we are taking a look at money gram today, as well as alibaba.libaba on the list because remember, they are said to buy money gram. the u.s. is examining a number of china-related bids and backlogs. the committee on foreign investment is concerned about the prospect of giving chinese companies access to u.s. consumer's information. money gram shares down by more than 3%. on the earnings' front, causing earningsways is an morning. warning. analysts were looking for decline of 1.5%. it says its loss in the second quarter was as much as $.22. analysts had been estimating a profit of $.15, pulling down the other sporting goods chains. if we have time to take a look at a quick chart that compares the earnings outlook in the u.s. versus europe, this is an interesting one given that it is earnings season for both areas. the s&p 500 are earnings-per-share forecast here in white. we got the stoxx 600 in blue. the s&p, and there he, is looking a lot better. it is also looking more expensive, of course. it's price to earnings ratio is on top -- on the botto

at alibaba headquarters in china, 11:00 a.m. on wall street.ey" is live ♪ >>> good wednesday morning welcome to "squawk

we may see a repeat of the efforts for american companies to compete with alibaba where alibaba endedp winning and taking the market. it will be a case-by-case basis. in new york elstrom today, thanks so much for that update. china, they out of struck a deal to allow online merchants that use the payment processing technology to receive money from users of these two massive chinese apps. each post about half a billion the spacedominate in china. we will have more details later in the show. software, a bitcoin battle is brewing that could send shockwaves through the market. we will bring you the details next. "bloomberg technology" is live streaming on twitter. check us out weekdays at 5:00 in new york, 2:00 in san francisco. this is bloomberg. ♪ trump saidident twitter on fire over the weekend when he proposed a partnership with russia on cybersecurity. after considerable backlash, including from his own party, trump went on to tweet he did not think such a thing could happen. the tweets come after his meeting with vladimir putin in germany after months of controversy over russian med

in china, we have the alibaba group. we also have a major shareholder in -- shanghai. >> of course. add and the difference between having investors from china versus elsewhere? >> china is a huge market for us. ours is a search engine for e-commerce. some of the biggest e-commerce companies are in china. they are going to go global soon, as well. so, the chinese market itself as well as chinese companies tailoring 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., for instance, has gotten harder to invest, or to except foreign investment? is that why some of this money from china is looking at other markets? >> i can't comment on the sort of geopolitical situation between those two big nations, but i think between china and israel, there is no such thing as foreign ownership 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 similar -- you

we may see a repeat of the efforts for american companies to compete with alibaba where alibaba endednning and taking the market. you have many strong players, so it will be a case-by-case basis. emily: peter elstrom in new york today, thanks so much for that update. in deal news out of china, they pe struck a deal to allow online merchants that use the payment processing technology to receive money from users of these two massive chinese apps. chat each post about half a billion users and dominate the space in china. we will have more details later in the show. coming up, a bitcoin software battle is brewing that could send shockwaves through the $41 billion market. we will bring you the details next. "bloomberg technology" is live streaming on twitter. check us out at @bloombergtechtv at 5:00 in new york, 2:00 in san francisco. this is bloomberg. ♪ ♪ emily: president trump set twitter on fire over the weekend when he proposed a partnership with russia on cybersecurity. the president tweeted, "putin and i discussed forming an impenetrable cybersecurity unit so hacking and many other

alibaba not going through as much for money gram.more scrutiny for some of these chinese companies. finally, you and i talked a lot about the retail sector. it looks like it might be filtering into be sorting goods -- in the sporting goods sector. almost 32% today. down the most in over 18 years. the company said it is facing very challenging trends and it could see a 10% drop in comparable sales in the second quarter. like in the sporting goods athletic wear, it is driving down and having some effects on the other big companies like dick's sporting goods and foot locker. perhaps some concerns from the retail start to make their way into this wording goods sector. david: taylor riggs with that update this afternoon. let us get back to politics now. the house hopes to approve a package of four spending bills for the fiscal year 2018. they cover defense, energy, and water. joining us now is bloomberg congressional reporter eric watson. great to have you with us here. a few names off here. i did not include homeland security. what accou

current —— the company's first for a into this region, and it is going head—to—head with china's alibaba of a consumer technology website and asked them why these well—known companies had a difficult learning season. companies had a difficult learning season. you companies had a difficult learning season. you never companies had a difficult learning season. you never know what happens in the financial world. it is quite interesting in terms of the innovation. for example, amazon prime, promising to our delivery times in singapore, that is quite exciting for the south—east asian market. we have never had anything like this before. let's look at twitter. twitter is failing to grow meaningfully beyond its 328 million monthly active users, at a time when its rival, facebook, has reached 2 billion users. so what is the trend? well, it is still a growth market, i think. 0ut well, it is still a growth market, i think. out of the top ten twitter users in the world, the asia pacific has about four or five of them. if you include turkey in that equation, or even russia, that is a lot of growth pot

and the investment alibaba has in syntax, pushing into online lending and other p2p services.anghai is big enough or more players. >> over the past few years, we noticed problems in the industry. they need some regulation in place to enforce the activities and behaviors and to make the industry do better in a good way. >> is it important to regulate the for those regulations stifle innovation? because difficult sometimes we sometimes take more space to innovate. if enoughe time players in the market are not self-contained, self regulated, the government needs to be in place to make sure everything is fine. >> what is the biggest risk to you? >> mismanagement. many people, the debt income ratio is so high, they can't, some of them have trouble to act, and the other side is over the past few months, we have increase so huge and squeezed our profits. so that risk we are seeing. >> your chairman talked about the troubles xiaomi has had of late, losing market share and sales coming down. maybe the company grew too fast. but are you late to the game? >> i would not say late. tois ju

>> we were talking about alibaba earlier and i looked and suddenly i see huge call for al b ly bab ba. i think it's going higher. >> i do own facebook stock and calls. i'm going to sell my calls. >> scott >> i like to stay with amgen. >> thanks for being here >> thank you >>> that does it for us. "power lunch" starts right now. >> i'm michelle caruso-cabrera we count down to the fed decision in just one hour from now. still, it's all about earnings, earnings, did i mention earnings is this the ultimate goldilocks for investors? and jim cramer goes one-on-one with corbat and talks about the market moves straight ahead. >>> and being taken on a roller coaster ride this year, it wouldn't be cable withou

they are almost raising this proxy war for alibaba and tencent, for who can get the most users.haring, it is more like rental but the user does not even have to take ownership of making sure they return the bike. they can just leave it where ever they want on the street. there are significant risk for this model, but the cash spending is not going to stop anytime soon. caroline: $700 million blows my mind, for a bike. how many countries are they looking on entering? they claim on the website they are already in the united kingdom. i have not seen many. why are they needing quite so much cash? selina: it is not like the uber or didi model. not only do they have to have the back end system in tracking and allowing people to unlock it with smartphones. the also have to produce these bikes. they have inventory risk. it is very expensive. thievesso very prone to and people that just throw it on the sides of the streets. there is actually been lots of clogs with these bikes being strewn everywhere. it is quite expensive. over the targeting expansion, 20 countries with 20 million bikes

i am an alibaba guy. but jd is very good. baba is best in show bob in california, please, bob >> caller: you sure can. oil dutch shell, is the dividend safe should i buy more or get rid of it >> i think they report tomorrow, the 27th you know what? i think royal dutch cess a hold. i have learned from the price of oil, you should never say a dividend in the oil group is safe, but they have enough money to cover for a while but i would like to see them either cut back their spending or indeed see oil go up a little bit. ruben in california, please, ruben. >> caller: hey, mr. cramer i'm curious about your view on sid bit, their stock plummeted $35, but they just cut an nba partnership. >> it's a $5 call option but that's all it is i don't even regard it as a stock anymore. it's just the hope of a possibility of an optimist view. i don't think much has changed in fang or alphabet. when oil gets $50, sell fang much more "mad money" ahead, including a look at the auto sector with one of the largest suppliers in north america, first

. >> i love alibaba and if i'm looking for relative growth that's it. i don't think amazon's issue is the dollar price in the stock. >> no, right now one is up 39% one is up 75% and if you think india is going to be a great story for amazon, china is the growth story for alibaba and amazon isn't going to have an easy time in china. >> the two things that dan is pointing out, he's not necessarily in love with the stock valuation. think about what happened in transports and about what happened in retail we have a markets conversation coming up but don't think that a lot of great news, the transportation sector, ups and fed ex are sweating over amazon as being the next essentially predator we saw that retail stocks are up 7% off of the lows that were hit on prime day how much good news can you bake into one stock. >> from a valuation standpoint that you bring up, in our lifetimes, is amazon going to have a valuation that makes everyone comfortable probably not when is the valuation going to get to a point where everybody bias the stock and doesn't mention

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i highlighted the alibaba. this has been the predominant driving force of the stock for a few weeks and it's front and center in terms of trying to get ahead of that, possibly being early in terms of timing because of incremental supply the market starts to focus on the headline, the 959 million shares that hit the market and doesn't focus on the likelihood that it's a much smaller share number that does hit to the extent that the fundamentals offset that as the reporting is on august sot10th,h question in our call in terms of where we're wrong i think it expands beyond the lockup expiration and in terms of the depth of the report in terms of whether we are right on the fundamentals or not. >> you have people taking a second look at the stock today and thinking about it perhaps in a different way. stock is up 4.25%. >> you used dcf valuation, which i find kind of strange you can have them say whatever you want them to say because of the input that you put there isn't that unusual to have dcf, discounted cash fl