price of alibaba is the third thing.ative to the internal growth of alibaba, the price in my opinion is very reasonable and i would just cite an alternative mechanism to buy it on the cheap with a discount in the neighborhood of 25%. so i think the market has it right here this is really a very, very good report, especially for those who have some understanding of the rules of the playing field in china. china is not kansas. you have to understand the rules. >> yes, and we all miss carl when he is off mike, when you look at alibaba's performance up against some of the other chinese internet names that have been performing poorly, are investors getting it wrong if they have been making assumptions about the impact on china's economy? any signs this is turning it around or are they factoring in other things. >> seems like stocks are driven by entirely other things it is not really about sensitivity to exactly what the cadence of the chinese economy is if i look at the chart of alibaba, it is trading like emerging markets w

alibaba must wait.ectives is even though generally money -- they are losing money, the second is free classroom -- clash -- cash flow deposit. it will be a fit -- flow, youet free cash are not dying, and you can compete. i think alibaba will probably focus on promotions and couponing. ma's free clash -- free cash flow. yvonne: we have been talking about how chinese tech has been held hostage to a lot of these u.s. trade tensions. we talked about it during the earnings call. >> we believe that china's government policy will continue to support imports into china to satisfy the rising demand of chinese consumers. this coming november china will largest world's exhibition in shanghai that will showcase products all over the world. if u.s. goods become too expensive due to tariffs, chinese consumers can ship to domestic producers or imports from other parts of the world. yvonne: you could argue that alibaba is a little more insulated from the likes of tencent but in terms of the macro picture do you think t

alibaba boosted its stake there.quired a food delivery platform so we expect margin pressure over the next few quarters as alibaba continues to invest. i want to take you over to the way the shares performed over the past few months. it hit a record high in june that's really because people were very excited about the growth the u.s./china trade war then kicked off and alibaba has been caught up in that selling. it will be interesting to see how the shares react after alibaba reports those earnings before the bell today in the u.s. back to you. >> i want to pick up on a bunch of those points. joining us on the line to discuss this is neil campling. arjun is still with us also. arjun mentioned many of the points we should be watching out for. but the first thing that catches my attention is alibaba is much more of a domestic-focused company than some of its peers given that the chinese economy is slowing down a bit, are you expecting that to show up in earnings today >> good morning. i think it certainly has an impact

alibaba's sales and growth outpaces amazon. but first, to the top story, trade talks between the u.s. and china have resumed. that has not stopped the nation from hitting each other with fresh tariffs. both countries are taxing $16 billion worth of imports from the other. china says it will issue a complaint with the wto against the second round of action from the united states. all of this at a time where low-level talks between beijing d.c. are underway. lynn fisher told bloomberg the worst is yet to come. >> i think we are headed full steam ahead for tariffs on the $200 billion worth of goods currently being considered. it could escalate more, but i think we have reached a pretty heightened level of trade tension at this stage. emily: i want to get to sarah mcgregor standing by in d.c. and leads our economic policy coverage. sara, is it correct that the worst is yet to come? >> i think that is the general agreement right now. we saw the $16 billion worth of tariffs and retaliations from china today. overall total in trade is

alibaba has once again beat a nalysts' alibaba has once again beat analysts‘ expectations, revenue risingan 60% in its latest earnings report but its delivery business continues to weigh in on profits. most folks associate alibaba with e—commerce, and its recent acquisition, but did you know it is involved in other areas as well? for example, its cloud service is rapidly growing but still lags behind the competition from amazon and microsoft in market share. it‘s all so into digital media through its real—time online bidding marketing exchange, and it is even in entertainment, producing and distributing movies through various content platforms. earlier i asked a nalyst content platforms. earlier i asked analyst ray wong from conservation research in silicon valley how much longer they can suffer losses. research in silicon valley how much longer they can suffer lossesm could be a bit longer because they are still trying to expand into africa with cloud technology, europe, the middle east as well. they are trying to expand into parts of asia so there‘s still build out. in the same way peop

the difference in terms of alibaba versus some of the other e-commerce models is, traditionally, alibaba'scapital light. a concern i watch going forward is alibaba has been shifting slightly more toward the amazon or jd.com type of model where they are spending money incrementally in terms of the ability and infrastructure, logistics distribution, breaking mortar, etc. david: how much of it is ricks and mortar retailing as -- how much of it is brick and mortar as opposed to the cloud? >> we definitely like the cloud. david: so investment there, good. infrastructure, maybe not so good. of china andtext alibaba, it is a better story. one of the reasons why alibaba is able to gross of estes china is they are not necessarily competing against brick-and-mortar retail. even as they going to brick-and-mortar, it is still a theer story than say in developed market because brick-and-mortar is not that efficient. julie: brian bandsma is going to stick around. thank you. coming up, the u.s. and china hit each other with new tariffs. what does that mean for companies exposed to them? this is bloomberg

it was not a good analog to alibaba. do believe people think at some point the chinese consumer has to slow down and that's the worry for president xi everyone thinks president xi's invincible, not unlike chairman mao. you know chairman mao was not invincible. remember the capitalist rotors came in right after. >> communism hasn't really worked out worldwide >> he killed a lot of people >> he is a mass murderer >> oh, yeah. >> he was a mass murderer. >> him and stalin. >> stalin was a mass murderer. obviously hitler was a mass murderer mass murder and communism, we have to be against those things. we don't want to be complicit. sorry. it's not a democracy it wants to steal our jobs it is not a trading partner. now you can say that the president is a little bit too the left of me on this i would tell you, he's been since 2000 >> asfor digital media and entertainment revenue of alibaba, it was up 46%, i'll have you know. they were also talking about sports programming, interesti interestingly, on the call as well i don't k

alibaba reports earnings.s suffered from tariffs and trade work concerns. -- war concerns. good morning, and welcome to bloomberg surveill

baba dropped within just an hour and the traders any investors out there looked to alibaba. it's the blue chip of chinese internet names and a bellwether. so perhaps no surprise that baba struggled today and it rippledthrough the rest of the whole industry taken down ten cents and j.d.dom and it's been a painful month overall for the chinese internet stocks. cnet plummeting 23% in just the past three months and j.d.com falling 15% and alibaba down a respective 13 and 11%. so melissa, what looked like what could have been positive data to help the value case for the chinese internet stocks turned into questions over whether things could get worse from here. back over to you guys. >> thanks, our next guest says don't worry, there are three internet stocks to buy, and let's go to todd gordon. >> hi, melissa the earnings have not been very good in the chinese internet names and technically from the long-term point of view, they've taken a big beating ahead of these earnings and i feel it was baked into the cake here and first, let's start off and last time i was on fast about a

yvonne: later on after $.10 disappointing quarter with alibaba -- would alibaba fare better?sector woes ahead. this is bloomberg. ♪ ramy: this is "daybreak asia." i am remy innocence you in new -- i am ramy in new york. yvonne: the july meeting will be released this wednesday as central bankers gather in wyoming. -- will this be a game changer for the fed? >> it will be a key talking point. it is the official end of december for bankers. typically what we have big announcements in the past. certainly on fed policy. what jay around it is powell is thinking about the em terminal. is he concerned that our effects for fed policy. does he think the trade disputes will have affect on policy. fed broadly projected in november. much less certain will they go ahead in december. a lot of question marks and interest on jay powell's speech. ramy: the ecb is particularly worried about global growth. is there a chance we measure anything at all that changes the very clear policy path we have. the drug is already laid out the next -- that he has laid out over the next year and a half? mike

some alibaba-linked stocks.best gainers so far on the csi 300, a pick up their after alibaba's first quarter results. rishaad: thank you for that. with more coming through a statean politics in of flux. malcolm turnbull saying the petition has 43 signatures, enough to be a leadership challenge. he said he would stand down if he got those 43 signatures. this is what we have from peter douglas, demanding a leadership meeting. there we have it. we are keeping tabs on that. malcolm turnbull hanging on by the tips of his fingernails now. markets a mixed bag. mark matthews is here. what are we doing? we are in the dog days of summer, but there is a lot of news flow, and we seem to be saying emerging markets also having dog days. >> that's right, but not for the u.s.. the market was up april and may. so the u.s. is strong. clearly we have gone down because the u.s. economy is doing well, interest rates up, the dollar up, which puts pressure on emerging markets, and the trade war. it is times like this you want to be a

when will we see a big tech giant like an alibaba come out of europe?lor: to see these companies in europe before they get the to become big enough to compete in the u.s. and china. jason: we go on a tour of the contenders. had a company reach escape velocity to get north of $50 billion in market evaluation and until a company does that, there will be doubters who think europe can't produce a tech company of that size. i think you still have some venture capitalists in europe who when they get a decent buyout offer from a company, may be a billion or even a few billion, they put some pressure on company founders to take that money because it looks like a good offer. really, if europe is going to produce a company with a market value north of $50 billion, it is going to have to say no to a lot of those officers -- offers to keep growing independently. people are hopeful of what has happened with recent ipos like spotify, which is worth about $30 billion. people are saying maybe that is the company that is the breakout success out of europe. jason: from a

he likes alibaba but thinks the tensions between u.s. and china could weigh in here. they're the most sensitive on that tariff talk because they're in the import, export business no surprise the president's comments today could be pressuring shares. he did say his company is focused on chinese domestic consumption less so on chinese exports. alibaba q and e revenue did surge 6.8% the other chinese internet stocks also struggling today jd, ten cent, baidu, all in market territory >> it has been a brutal period deservedly so or not after 61% revenue growth, they don't appear to be showing any sign of weakening chinese consumer >> that whole group doesn't seem to be trading domestically on those expectations who knows what's going to happen with the technology picture there, and it's an amazing divergence >> on the charts trading nation just said they're attractive, there's some tradeable bottoms >> see how that goes >>> all right, with about 35 minutes before the bell dow is still down about 60 points you have the s&p down less than three points right now, basically fin

starbucks is teaming up with alibaba to strengthen its position in china.y are working to improve food and coffee delivery and starbucks hopes it will help the sales declined in the last quarter and its -- in its second largest. the ceo told bloomberg how the partnership came about. from a day stemmed daniel and i spent together a year ago, where he outlined for me the vision of where they were going. i outlined for him what i thought were the two transformative elements in modern-day retail, and there was a shared vision. thisred vision has led to partnership, which i believe is a transformative partnership that will take the two companies forward in a way no one else in the world is doing. >> how would you describe the competitive landscape in china with the likes of -- coffee expanding quite quickly? our companies like them considered a serious threat to starbucks? kevin: starbucks has been in business for 47 years and we have always had competitors. we operate in 77 countries, there are many competitors in each country. in china, the opportunity is sign

this hour kevin johnson spoke to jim cramer about the company's new partnership with alibaba in chinats away >>> futures set for a drop as the white house confirms it has asked the u.s. trade rep to consider 25% tariffs on chinese goods. germany down 1.5%. hong kong and shanghai down 2% overnight. 10-year hangs in overnight as the bank of england hikes. >>> futures falling off the president threatens china with bigger tariffs >>> plus tesla's on a tear the automaker set to rally after the open this after promises of a profitable second half >>> rocket fuel for growth in china. starbucks kevin johnson's bullish outlook for their new partnership. jim's first on cnbc interview in a few moments. >>> this morning, futures down sharply as tradeworries work their way again into the markets. the white house confirms the president's looking to raise proposed tariffs on $200 billion worth of chinese goods from 10 to 25. it's sort of been out there in the ether. we know the market tends to absorb these headlines then sort of discount them later in the day. >> look, i think that that headline --

>> i think there will always be competitors to alibaba.at job of building and promoting its platform. it is very strong. certainly there are other platforms that could focus on certain verticals. but i think at this point i do not see a significant threat other than jb. yvonne: alibaba is also focusing on so many other segments of the business. when it comes to food delivery two --s, it is going to net connect --it is going neck to neck. the food delivery business could be possible as long as you do not subsidize significantly. as you have seen other food delivery businesses globally, those that have made money, more than just profit, i think you're also looking to grab big data. there is a lot of transactional data which is very important for you to -- were analytics. -- for analytics. that is the other benefit. yvonne: these are the must have stocks and every portfolio. the sentiment now seems very different. how should we approach the stocks now? i think they are actually better valued now than perhaps five or six months ago. -- i downg

those effects can impact companies like alibaba.ues around concern and sentiment could play out. saying 90% of retail sales will come from the internet. let's talk with patrick armstrong, i want to get some your thoughts on investment strategies. let's start with the technology stocks.nd the chinese you see some wobbles that you think may foreshadow something similar. they were bulletproof, high-growth stories that just cap beating expectations. we've seen the bad stocks on 20% from where they were a month ago. we just talked about how margins in earnings may be starting to matter for the chinese stocks, companies like netflix and amazon that are growing revenues very quickly. though stocks and been seen as a secular way to get away from cyclical worries. big issue worries about trade are not impacting the bank stopped -- bank stocks. the russell 1000 and the s&p value index are growing revenues and growing ebitda faster than the gross -- growth industries of the last years. i saw a chart that illustrates what you are talking about.

on what to expect. >> market pressures ahead of alibaba's first quarter result.mmerce probably sustained revenue growth in the latest quarter . the consensus calls for an increase of 60%. alibaba is investing into new services, including its off-line new retail initiatives. withtory cost have surged retail stores and supermarkets. that will likely pressure gross margins, which are the lowest since its ipo. the consolidation of the logistics business with this southeast asian unit could hold further pressure. margins may have plunged more than 10% than a year ago. intense competition at the food delivering business that may force alibaba to step up marketing costs on a couple of its platforms. forill be listening payments down the line on ant financial, which tonight setting a timetable for a public listing. oh, and one more thing. that brewing trade war with the united states? we're going to hopefully hear the impact it is having over e-commerce and what alibaba had to say. lots to digest with quarterly earnings. emily: coming back snapping back, or trying to. ho

shaun: alibaba is a lot stronger. they have been able to adjust.ch we have found is the rise televisionaming shows. i interviewed a 40-year-old woman in beijing who has been shopping every day on alibaba because she finds the shows are quite interesting. you have individuals opening up shops, kind of like a home shopping network, and they are selling their own products. alibaba is quite strong. jd is weaker. there is a big consumer market, with the u.s.-china trade war affecting consumer confidence. will not buymers because they are more expensive and target the upper middle class. how are you seeing this trade standoff impact consumer confidence? are there particular companies getting hurt the most? shau president trumpn is: correct to criticize china. there are a lot of unfair trading practices in the country. good luck if you are an internet company trying to expand in china. facebook and twitter are banned here. the trade war is not the way to go. china is offsetting some of the tariffs from the united states, by sourcing from india or s oril,

alibaba is quite strong. jd is weaker.ther thing to think about is there is a big consumer market, with the u.s.-china trade war starting to affect consumer confidence. consumers are starting to look for cheaper items. not'll start looking and buying items on jd, because they are more expensive and target the upper middle class. selina: how are you seeing this trade standoff impact consumer confidence? are there particular companies that are getting hurt the most? shaun: let me be very clear, i think president trump is correct to criticize china. there are a lot of unfair trading practices in the country. good luck if you are an internet company trying to expand in china. facebook and twitter are banned here. the trade war is not the way to go. china is offsetting some of the tariffs from the united states, by sourcing from india or brazil, soybeans or pecans or other types of products. you're not yet seeing the hit on the numbers in china. if i were a starbucks or apple, i would be concerned because it is likely the chine

and alibaba, had serious applications for new companies in the tech space in china.a tech reporter joins us. you went through two dozen -- companies backed by tencent and alibaba over the last two years. what are the stories that you have found? >> your earlier point in how all these other chinese tech company stocks are down, even though they have nothing to do with gaming. and part of that reason is because a lot of these newly ipo chinese companies have a big tie to tencent and alibaba and particularly on tencent. it goes to show what kind of power that, these companies wield over the zone companies. wrongd: what could go for these tech startups, being invested in by the likes of tencent or alibaba is usually important. >> so, what we found in all of these ipo perspectives is really interesting. it was this very cautionary language. and t thish factor saying, just soe you know, it might not be super the way things work in china, china's tech ecosystem, are the future of our company highly depends on the future of what happens with tencent oe alibab. rishaad: at th

alibaba reports earnings. the tech giant has suffered from tariffs and trade work concerns. -- war concerns. good morning, and welcome to bloomberg surveillance. good afternoon to those of you watching in asia. these are your markets in asia -- in the stoxx 600. we're seeing some boosts despite the trade concerns. we are also seeing data out of the euro area. they are in line with forecasts. to give you an idea of the strength, we are also looking at the euro-dollar. the markets will get their cue from what happens, a lot of them expecting more clues on what effect will do next -- the fed will do next. we are speaking to esther george, we will get to her later. the dollar is rallying for the first time in six days. also looking at the rand in south africa. this is after a president trump tweet makes people nervous after sanctions he may or may not impose. the budget airline has reached a agreement with pilots for strikes. here, we bring you our interview with the kansas city fed president esther george at 12:3

this could be the largest since alibaba, but nobody has really heard of them.to be the largest ipo since alibaba, but rumoured to be the largest ipo since aliba ba, but priced rumoured to be the largest ipo since alibaba, but priced at the low end of the market range. so it is actually only the largest ipo since china postal gap saving bank. they have slumped since the beginning of the year. china tower generate most of their income in chinese yuan, making them subject to the cnh — us exchange rate. then there are the tangled loyalties when it comes to china tower. one would expect them to have pricing power, but their three largest shareholders generate 99.4% of the revenue. so there is a question about what their future pricing power will be. and let us that the big brands like ikea opening up in india, samsung with their first opening up in india, samsung with theirfirst mobile opening up in india, samsung with their first mobile phone, opening up in india, samsung with theirfirst mobile phone, a chance for investors to look at that. you expecting? ikea sett

and we will look at alibaba's impact on those trade tensions.t is on the way next. ♪ haidi: this is "bloomberg markets: asia." rishaad: we have concerns about china amid escalating trade tensions. this seems to be weighing on alibaba, the company with first-quarter earnings premarket in new york. what are we looking at? >> when it comes to revenue, sentiment is good -- sentiment is good. the fastest growth since 2014. a lot of this is bought through acquisition. alibaba is heavily investing into retail, entertainment come and even food delivery business, eatnalysts expect this will into its margins. haidi: what are the key areas we should be watching? isu: for this time alibaba investing heavily into its food delivery business. it is in the process of a fund-raising led by softbank. we expect the company to raise 3 billion to 5 billion u.s. dollars. there is a march toward an ipo right now, so it will be interesting to see the investors and if theyround, get the much-needed cash, what they will do with that ammunition and complete. haidi: how do

we talk about this obsession with beating alibaba. like right now, competition is heating up. do think competition is getting too overwhelming? mark: i think the competition is very scarce. tencent is number two in global payments and they are number two to alibaba in some of their other initiatives. they are a competitor, have shown themselves to be a worthwhile adversary and i think they are worth having a decent sized bet on. as you say, cloud is another area they are competing in and we are in the phase where the fast growth has happened and now we are investing for the future and we will see who comes out of the investments with the best products. ramy: speaking of the competition, we are going to get alibaba results next week. i think the investment community is pretty down on pending results, but you like jd. jd held 35 for sometime in the past weeks, maybe to a month. it was off quite a bit as i am guessing from 30% or so. past couple days come other has been shortselling going into the numbers. i think it closed at 32.8 today

. >> i think it is good for alibaba. economy is strong. they're growing year over year gdp at 6%. alibaba continues to grow their business and continues to partner with companies globally. >> if the economy weakened, would it be a problem? >> if the economy anywhere weakens, it will be a problem for a company that focuses on retail and ultimately connects with the consumer. >> describe how big alibaba is we say it's a mirror image of amazon, but it's quite a bit bigger when you dig through what they have. are they the only player in town when it comes to china >> the leading ones are tencent and alibaba. the amount of yuan equates to 11 billion u.s. dollars so they're doing 11 billion a quarter, close to a run rate of $50 billion a year still sizable. they still have a lot of growth ahead. i think their plan is to continue to expand outside of china. >> you have a buy rating what would make you change your mind >> a significant deline in return on capital. my mow cuss is on companies that earn above the cost of capital t

first up, nico tweets when is the time to buy alibaba? after any trade deal is announced?ght i missed it when it went to 200. clearly i didn't miss it look, the trade deal is an issue but the chinese markets haven't been doing well, even though it's a cayman business that trades here. and you've also got some issues with the company in terms that it continues to be opaque. but the bottom line is, no, it's not going to trade higher until the economy starts stabilizing there and you get rid of the trade issues all those stocks are down. >> joey, george asks you is red hat ready to buy the stock is down 14% in three months. >> no, it is not you need to first hear what they're going to say on the september 19th conference call and what type of earnings they're going to release that was the problem back in june when it fell from 177 to 140. >> ron in florida wants to know about a semi stock he writes i've held sky works for several years with a good return is it still a long-term hold or good time to sell, jim >> it is a long-term hold. i own one of their competitors but it's i

and alibaba reports. how do they get on? this is bloomberg. ♪

alibaba did fall with the expense due to shares to its workers and financial.kswagen has mapped out its digital makeover. the company wants to transform itself from being just a carmaker to a provider of transportation. the first step, a car sharing service. folks like and will deploy 2000 all electric cars in berlin. that is your business flash. are shruggings off drama involving the president. englander gives us his analysis coming up next. this is bloomberg. ♪ vonnie: that is some of our reporting. i am vonnie quinn. romaine: this is bloomberg markets. vonnie: a quick look at some other movements around the world. -- is weakening today as political pressure in australia. this, i hate -- i hesitate to call it bizarre, but another tweet from president trump. is amazing how much power he has over currency. vonnie: we have the spread coming in further. it is not as narrow as it was earlier. let's flesh out some of these stories and check in on first word news with kailey leinz. >> the u.s. and china have impose new tariffs on each other's goods as the sides resu

. >>> they struck a deal with alibaba. outperformance in the region slowy recentl and it expects this new collaboration to give the business anxt jolt. >>> most of the growth of transactions in china's coming from our new store growth. ive, yes, we did have a neg 2% same-store sales comp last iarter, but you know, if what look at what we're doing here with alibaba and the digital flywel and enabling delivery, this is like rocket fuel for the digital flywheel in china and this will be an accelerator for our business, no doubt. >>ha starbuckss fell a fraction today to $51.68 shares of alibaba were down 1% tond$182.60. >> wireless speaker company sonos made its market debut on the nasdaq today the big one, the company priced its ipo at $15 a share andel th was its earlier target range of 17 to 19. competition is intense in that business, but sonos said it partners with its competitors and executives say it is the strategy that i working. ? now what we're doing is riding the wave of streaming and pan door and apple music has b

thank you very much for coming in and i can thank you starbucks is teaming up with online retailer alibaba to keep pace with china's growing coffee market it's the companies will focus on delivering cups of coffee via remote up every judge deliveries are set to begin in beijing and shanghai next month starbucks hopes to fend off a challenge by beijing stuff left in coffee which is expected rapidly on the back of them based livery starbucks remains the dominant force in china it says it opens a new cafe there every fifteen hours. for china's foreign ministry says it won't be blackmailed the u.s. is ratcheting up the pressure in the tariff dispute it comes as the ozzy in conference gets underway in singapore asian nations already searching for alternative trade that's. a free trade agreement signed by sixteen asian countries by the end of the year this is the ambitious plan for destroying the albion missing in singapore. the move comes after the united states withdrew from

alibaba which is the biggest one in new york and the call volume is two times of that put it was onethe few that appeared to be directional in alibaba when the stock was trading at 172.70 an a trader rolled some calls down and sold to close 1500 of the september 185 calls and about to open 1500 of the september 175 calls paying $7.72 for those and the net spread for that was 3.72 and it breaks each a bit higher here we have a couple of charts alibaba is down 17.5% from the all-time highs made a couple of months ago and it's approaching the key support level going back about a year to about 165. that might be one reason why you may want to define your rick playing for a bounce we have a chart from 2014 from the ipo. it just broke the uptrend from the 2016 lows and my guess, pete or these guys were saying earlier when volatility is actually cheap it makes sense to define the risk if you're looking to make a somewhat contrarian bet and those technical levels is troubling and what's important to remember that alibaba has bounced off this level numerous times this year >> for more options

. >> starbucks is teaming up with alibaba to strengthen its position in china.rking to improve food and coffee delivery, and starbucks is hoping the tie up will help stem a red sales declined last quarter in its second-largest market. >> we are in a phase of growth in china where it is about store builds. as we build 600 new stores per year and expand the portfolio, that is where we are growing our reach. this enabling of delivery and weaving this digital experience, this virtual starbucks store, in every alibaba property, not -- that really opens the aperture to reach 500 million active, every alibaba property, not -- that really opens the aperture to reach 500 million active, registered users of alibaba and bring the starbucks experience to them. ♪ this enabling of delivery and guy: this is "bloomberg best." i'm guy johnson. >> faa issued a new regulation earlier this year that lithium-ion batteries can't be in check bags. our carry-ons all come with a lithium-ion battery in them. luckily, we made a design change that our batteries popped out, but the earliest

alibaba, now down over 20% from its record high in june. important, because many consider it to be the bluest of blue chip names in the chinese internet. the amazon or the alphabet of the chinese internet xiaomi closing down 22% its high from last month. baidu is down 23% from may so that's a big move lower as well. 10 ce tencent, we told you about those problems, 27%, and huya, a gaming streaming platform has lost half of its values since its highs earlier this year. so a lot of red. a lot of blood on the street when it comes to chinewhich chi internets. >> is china feeling the ripple effects from turkey's economic crisis >> turkey has been at the forefront of this currency crisis, but that's made investors more discerning of other emerging markets like china. now, china's $14 trillion economy matters much more to global markets it's 15 times the size of turkey we've already seen signs of a slowdown the chinese yuan declining 9% against the dollar since mid-april. the last time we saw such a pronounced move in the yuan was in 2015 when bei

alibaba do tomorrow. will either turn the tide for emerging-market stocks? matt: less than half an hour from the start of european trading. downat where futures are, across the board right now. ftse futures off .5% partially due to the strength of the pound. dax futures down one third of 1%. if you look at the 10-year yield, after it came back yesterday, investors are now buying the debt, pushing the .ield down to 2.8261 investors seeking a little safety in treasuries, though you don't see any safety seeking elsewhere. no one is buying began against the dollar. people aren't stocking up on gold. guy: nobody seems overly freaked out why the political news out of the united states overnight. maybe it is the holiday. note it is because there is much action in asia that we are drawing the conclusion. for the need to wait european session and definitely the u.s. session, because the u.s. front page this morning make amazing readingl the nikkei trading up .6%. yesterday, some emerging markets were under pressure. the australian market, the aussie down by 3%. you a

now, with this deep partnership with the alibaba group, well-known world class tech company based herechina, we will continue to play the long game and focus on what we do and what we do well, premium coffee, a premium experience in the third place and now extending it to the digital world in a way no one else will. the geopolitical stuff that's going on, it will continue to go on we will stay focused on the long game for starbucks in china. >> i presume you have some context in washington. if you get to speak to president trump, what would you tell him about your relationship with china and how companies in china that are american can win? it's not just zero sum >> we've had a wonderful experience in china, certainly over that period i think the approach that we've taken has been one of approaching the market with humility and respect for the chinese culture and the chinese consumer we've done the r&d we do here in china. we'll tune some of the beverage and flavor profiles and food for the chinese consumer we hire local store -- contractors to build our stores. the store design team s

and alibaba.om the chart and stat, at the end of the day, chinese consumers are really willing to try something new and different. that is potentially very bad news for both jd.com and alibaba, and other established e-commerce providers. haidi: very strong. let's get to the sydney contender. dollar-turkisha lira chart going back to the start of when -- the posturing around the currency and to the right, we can see the spike that occurred, the record spike that the currency fell 30%. i would drop to the viewer's attention the pullback of that whole move. the 50% pullback was 5.69, where it was when the u.s. deployed sanctions against turkey, so since then, they have traded up to 6.3. -- dollar a long trip trader against the euro and are trying to figure out where to hold the long position, if it was to close below the 50% level, we are in for a short-term or medium-term high against the lira and hard to catch up. i like the caption on the turkish delight, but that is misleading and makes the whole

the stock is moving, it is up 4% on alibaba right now.f this, robert, is that i don't know if tariffs are going to actually change behavior of china in terms of their theft of america's i.p. is tariffs going to be the thing that gets china to say okay, let's stop stealing. they won't even admit they're doing it. >> you put a lot of confidence into that one sentence. dagen: she's event. >> we have to look at each of the pieces. first of all, this is recognized as an issue. tariffs get everyone's attention, although tear they're terribly suboptimized. economists think they're bad. we're talking about it here. we're talking about the issues. china when they were admitted to the w.t.o. was truly a developing country. some of the same ways of thinking and rules, china has maintained for almost 20 years. what that means is that china has to have a new way of thinking about itself and this attention is forcing that. so in each of these categories of concern, we talked about intellectual property, great progress. has a long way to go. it's uneven

it almost looks like it doesn't matter alibaba is great >> their spending is high. >> like an amazon. >> right, getting results but at the same time, it seems like that's what people started to focus on and margins i think that's the story with alibaba. yes, the market is up, it looked good at the beginning of the day and suddenly we started to crash. you do have to wonder about alibaba, from allocations, love it look at the capital, love it you look at the growth, love it. but sometimes, investors get antsy about that and start to wonder are these margins really going to start to come in on some of these companies. on the other hand, when you look at target and the results they put up yesterday, it's a completely different story this is what folks are focusing on with baba and with china right now the concerns are outweighing what people see as upsides. >> it's not just that problem margins were an all-time low for baba but it's wrapped up in these worries? >> yes >> it's the sentiment of it, when you look at it, baba doesn't get a free pass. they're investing in the food delivery bu

some concerns about spending as alibaba posted a record low profit margin.is hovering near the flat line and a number of other chinese tech names moving lower as well, jd.com, tencent, billy billy down more than 2%. take a look at the chinese internet etf, ticker kwbb, on pace for the first negative day in more than a week. to sue herera for a news update. >> here is the news update at this hour, everyone. in just minutes from now, vice president mike pence is due to deliver a speech at nasnasa's sc center in houston. he's expected to give an update on the trump administration's plans for human space flight and possible return to the moon. former national security agency contractor reality winner who pleaded guilty to leaking a classified report on russian hacking has been sentenced to 63 months in prison, the longest sentence ever given for a leak of national defense information to the media >>> a juror in the paul manafort trial says a lone holdout kept the former trump campaign chairman from being convicted on all 18 tax and bank fraud counts a juror said

coverage withore xiaomi's results along with alibaba later this week. this is bloomberg. ♪ retail.like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. announcer: the following is a paid presentation for the power airfyer open brought to you by tri-star products. announcer:

but, you know, if i look at what we're doing with alibaba and the digital flywheel, this is like rocket fuel for the digital flywheel in china. this will be an accelerator for our business no doubt >> you can hear more from jim's interview with kevin johnson later today on "squawk on the street." >> this will be interesting. it's the same-store sales number that has so bedevilled them. this will be something that you can't count on same-store sales. this will be a different way to track and see how it happens we are also trying to see if there's signals of chinese nationalism, trying to find out if american brands are on the decline. hard to say that >> the starbucks story, it's one of the few companies that seems to have almost a special license, if you will, inside china. i have always -- >> like inthe -- it's near the great wall, near some places you would not anticipate >> but also the -- truly only american branded company, at least the first one, that actually did business in china without a partner. they spent so much money and energy working with employees. the relationship that

. >>> kroger is teaming up with internet giant alibaba.er will start to sell some products to chinese shoppers on a website owned by alibaba. it recently launched an online service and increased its investment in a british online grocer. the chain is working the catch up with walmart and amazon which are investing heavily in online grocery sales. kroger plans to sell store brands on the site, but didn't say which products. >>> and the girl scouts are introducing a new flavor next year. caramel chocolate chip. it will be gluten-free. it will be available in 2019. >>> the most popular cookie remains thin mints. the girl scout cookie business is big business, grossing $800 million annually. kenneth? >> okay. diane king hall at the new york stock exchange. diane, thank you. >> thank you. >>> still ahead, a baseball super fan will meet a little boy who's batting a thousand when it comes to cheering his favorite team. favorite team. n my way? watch me. ( ♪ ) mike: i've tried lots of things for my joint pain. now? watch me. ( ♪ ) joni: think i'd

as for alibaba, it could be on the weak china retail data.ed to this, let's take a look at it -- at a intraday chart of kroger. up 1.7%. this is the dow jones reports that kroger will start a china grocery the alibaba. whether or not that has to do with that bearish action for alibaba, time will tell. lisa: thanks so much come abigail doolittle. let's get to first word news with mark crumpton. mark: closing arguments scheduled to begin tomorrow morning in the trial of former trump campaign chairman, paul manafort. attorneys for manafort rested case without calling witnesses or presenting evidence. asked by the judge whether he wished to testify in his own defense, manafort responded "no, sir." manafort is accused of frothing bakes to secure loans and -- bankoverseas banks accounts and income from federal tax authorities. defense secretary james mattis made a pitch today to brazil for building a closer defense partnership with the united states. secretary mattis addressed students at brazil's senior war college in rio de janeiro. thinkingited

is alibaba more insulated from that? alibaba is not 100% insulated from a trade war or economic slowdown. but they will be relatively resilient, like a lot of retail companies in china, including other online retailer companies. that's why we still think the line is very strong. ramy: revenue growth, consensus is 60% growth in sales year-over-year, but gross margins are being squeezed. all the investment in businesses , including off-line retail. elinor: also, all business margins are going to go down. alibaba, the main negative is margins decline, earnings growth much slower, mainly because of china.solidation in also, they have to pay expensive world cup exclusive broadcasting rights in the quarter. a lot of this is temporary costs. declinese margin likely to moderate in the second half as they start consolidating. ramy: the logistics company and food company. but they have direct competition from tencent. how much will that hammer margins? elinor: in retail they have a very strong lead compared to tencent, working dir