china that i'm recommending is allibabalibd i'm not recommending baidu. grubh grubhub's win is bad news for many restaurants, doesn't mean you want to buy grubhub. much more "mad money" and invest in america, and what would that be without sales force, the one and only mark benioff, i'm getting t getting the scoop of the conversation. >>> i'm give you my tech on the newly minted tech play. >>> so stick with cramer. ready or not, here i come.ek.) ♪ anyone can dream. making it a reality is the hard part. northrop grumman command and control systems always let you see the complete picture. and we're looking for a few dreamers to join us. >>> if you're going to come out to san francisco to talk about the impact of technology, you need to talk to a person who founded a technology that affects every single tech trend. i'm talking about mark bennioff, we usually speak with mark right after sales force reports. but right now is the quiet period, which means that mark can't address specific issues about hi company. his vision has become gospel for many. and his vi

next up there's baidu, who is the unchallenged king of chinese search.n retrospect, that was not a great business decision for alphab alphabet, but there are more important things that profit and loss. china is the largest company in the world and it's got the largest population of internet companies. as the china expand their webbed infrastructure, all these companies should be able to keep growing pretty darn rapidly. just like here in the u.s., mobile has been exploding in china. it now makes up over 60% of the company's sales. now they're expanding beyond china. b ark baidu has been the worst performer. even if it would, it would be an uphill battle. because nobody wants to have to compete against those guys. how about jd.com. it's the largest online retailer in the prc, whereas alibaba linked up buyers and sellers and takes a fee. from 2015 to 2016, the gmv increased by 40%. while jd's stock has been a wild trader since the nasdaq debut three years ago, it just reached a new all-time high before the stock pulled back to $40 and change. what about fa

the entertainment business is a cutthroat space. 10 cent has been acquiring content, as has baidu. hot market right now, and hopefully prices will come down over time as this market starts to neutralize, but they're having to spend rapidly for content. emily: what are the macro drivers helping? elina: alibaba is able to benefit from the growing chinese class. chinese consumption has stayed very strong. alibaba has been able to capitalize on the rural population, which is still a very untapped part of the chinese market. in rural areas, there is not get access to off-line retail, so online retail is an important pass way to get a lot of goods and services that were not available before. alibaba has made big investments and off-line retail and that shift to mobile, trying to bridge the difference between online and off-line retail. emily: selina wang, things for that update. i want to focus on the broader investing climate in china. capital, jennygv lee has helped put the firm on the map in china, investing in companies. while climbing the ranks as one of the most recognized investor

chinese technology giants are also falling in today's trading, whether you look at alibaba or baidu -- chinese economic data came investor than -- came in better than estimated. some investors have been pulling chart,at the top of this you've got the price-to-earnings ratio of the s&p 500 technology index. the ratio over the s&p 500 pe -- tech stocks have been getting more and more pricey relative to the broader index. we have flows in and out of the etf.the technology in terms of fund flows, couple of weeks ago, we had the biggest outflow from the xlk we've seen since the beginning of 2016. vonnie: julie hyman, thank you for that update. shares of lenders prompting bank of america and jpmorgan declines in trading revenue for the second quarter. i will tell you that across our markets businesses, we are down 15% year on year. that is pretty normal seasonal declines. that fixed income down more and equities up slightly. vonnie: the euphoria of the first quarter -- how significant is this slowdown in trading revenue? joining us now is dakin campbell . put a figure on it. she said jpmorg

in china, baidu, tencent, and alibaba are doing well. emily: what about apple? apple made their most recent hire to head ai. i think they should have every reason to do well given they and canlosed ecosystem learn so much about the users, but they started behind. emily: where do you think you will be placing your bets? >> financial industry. our most successful investment in ai right now is in a company that underwrote 30 million lines this year -- loans this year. i think insurance, banking, investment. we are long-term optimistic about autonomous vehicles as well as robotics. emily: your private banker is out of a job. always great to have you here. a story we are watching. the founder is stepping down from operations of the online streaming service. he is a chairman of the company. it has grappled with a cash squeeze leading to challenges in fundraising and unpaid bills. coming up, it is a major c.e.o. shakeup at ford. what it means for the self-driving car ambitions, next. we are live streaming on twitter. check us out. this is bloomberg. ♪ emily: a surprise

gaining on that baidu deal, their entry into china.etflix could potentially be bought by apple with that huge apple cash pile of more than $250 billion. microsoft and intel were among the bed -- best stocks for the nasdaq. microsoft released a $999 laptop with an intel chip inside. tech was the best sector on the week come a really helping the nasdaq. emily: abigail doolittle in new york, thank you so much for that update. as she mentioned, a lot of earnings report cards over the past couple weeks from the biggest tech companies, apple alphabet, microsoft amazon. the majority have beat on revenue and earnings. what is the mean for the health of tech stocks, can they keep it up? joining me, tom, great to have you here. can tech stocks keep up with this optimism? tom: the optimism is real, the big changes happening in the ecosystem are these moves to the cloud. anytime you see 50% growth year over year in the u.s., large enterprises starting to move, that drives operating income and growth. emily: so it is worth it? tom: in the private m

on thursday, we will speak with the director of baidu's silicon valley ai lab.s are live streaming on twitter. check us out on weekdays. that's all for now. this is bloomberg. ♪ ♪ announcer: from our studios in new york city, this is "charlie rose." charlie: we begin this evening with a look events surrounding the trump administration. angela merkel this -- express -- at the u.s. as an ally. this, after trump's refusal to recommit to the parents -- the paris climate deal. trump criticized germany via trade surplus. he blamed fake news for critical news about his administration. the washington post reported,

developing being -- company used by companies like baidu in china for mapping.he technology we have developed is enabling a whole new revolution in transportation for processing all of the data from cameras, from radar. that all has to be understood much like a human would understand that information but we are doing that inside a ai supercomputer. caroline: what is amazing is, of course, the spectrum of companies you're working with but also the competition is heating up, mobilized by intel. how does this make it a more crowded space? does it make it a little harder for you? >> this is a brand-new industry, really. the whole self driving space is wide open. we have been focused on taking supercomputing technology, our processors, our hardware and software, like google and amazon and facebook for really high performance computing. now we are taking that. we're bringing that into the car. nobody else really has the technology the hardware or , software from the auto industry to do that. it is coming from outside. and we are partnering with the automakers to bring

we are told the investment will be led by baidu capital, and could be sealed this week.ngs of $115 million and december, pushing his valuation to about $1 billion. is backed by tencent and all-stars investment. yvonne: that's it for us on "daybreak asia." time for a look at what is coming up on " bloomberg markets." the rba is not likely to move, but they have been in a bit of a quandary because you've got these house prices that some are saying have entered bubble territory. any tightening could seriously have some ripple implications. also you north korea and tools there with president trump saying he would be willing to meet. yvonne: it would be an honor, he said. [laughter] betty: how would that even happen? what would that even look like? talk us through what guesses you got. rishaad: james rooney is going to be talking about that i'm a north korea and the tensions there. withll also be talking someone from a&p capital. ♪ kong, and if i am in hong 11 a.m. in sydney and 9 p.m. in new york. i'm haidi lun. rishaad: i rishaad salamat from bloomberg asia headquarters. th

you can see how fares the competition is with the likes of alibaba and baidu.essures here? the margins, it is 3.6% below our expectations. that is because of the exchange. that margin is much lower than the traditional margin. it is the same case for the payment. they are doing well online, off-line, taking market share aggressively from alibaba. going forward, it will be the case. is the margin and protecting that margin the only headwind you see for the shares? jessie: yes. in the near term, the market decline will be the only concern. i am still very positive on the long-term fundamentals. up likee of wechat goes online streaming, in my be possible to merge in the long-term. betty: in terms of the stock for alibaba and tencent, they have outperformed the s&p by miles. it is incredible if you have been in the stock. you have ridden the stock higher for quite some time. is it almost priced to perfection, both of these shares? tencent and, alibaba have been outperforming dramatically. the valuation was quite expansive, which is why we only $.14 laste price by n