if you're rotating, baidu is the stock to look at.'s follow on that point, the smaller ones. it is interesting and exciting to talk to people like you and your team, who are names that might not be on the radar screen yet that we should be watching? i think of the mid-cap netease is a stock that has been under-owned as they worry about the pipeline stocks at a valuation of 13 times mixed earnings, generates cash flow. it is grating a lot of value. of new gains is strong. they just launched minecraft in the last number of weeks. mobile minecraft's top five in terms of consistent daily downloads. there is a number of very strong gains in the pipeline for minecraft. it seems very attractive here. thank you so much. up next, is bitcoin a bubble? it has been labeled a fraud and a fake. but, they say to change the world. this is bloomberg. ♪ >> i really feel that bitcoin is very nascent right now. you indicated we started an index that crated transparency from a pricing perspective. however, we are shifting our focus toward digitization and

mellody: we think baidu is the better volume. -- value.ing weather we get more spending into the next six or 12 months? mellody: that is one of the reasons we have been underweight . we are more concerned about the embedded risks based on political risk and the liquidity risk that need to be like in other emerging markets. china comes down to those two names. haidi: everyone feels like we are trying to get more until the party in congress. mellody: we try to force ourselves on those issues. we are looking at a light them up perspective in terms of the name. we hope that these stocks are exploited from these changes. that does not concern us now. betty: getting back to the active and passive, active versus passive topic, here is another chart, 6132. you see the amount of investment flows in active, which has gone nowhere over the last several years. i want to ask you, what is it active investors are not telling or managers are not telling investors? it is a great time to be opportunistic. why are these flows still stalling? mellody: i think

billion dollars stephen: well, baidu, all investing heavily. they call this the netflix of china.er. it is having revenue, but it is not profitable by any stretch, because they are investing heavily in content. there is a race for content in china by the big companies. it is losing money hand over fist. until it can turn that around, it is going to be a long struggle. emily: stephen engle with us from hong kong. always great to have you. that does it for this edition of "bloomberg technology." from new york, a reminder that we are live-streaming on twitter, 5:00 p.m. in new york, 2:00 p.m. in san francisco. this is bloomberg. ♪ announcer: the following is a paid program. the opinions and views expressed in for those of bloomberg lp, employees.tes or its announcer: the following is a paid presentation for volaire. kristin: people ask me all the time, what is my secret for beautiful hair? hair that just moves with natural, gorgeous, weightless volume. my secret? one word, volaire. >> look how much hair i have. it feels like i have so much more hair than i really do. >> i love it. >>

this is a larger plan by baidu to compete with american firms in these sectors. hewlett-packard enterprise plans to cut at least five thousand jobs. bloomberg reporting the company will reduce its global workforce of 50,000 by 10% as it seeks to cut costs amid rising competition. lay-ups are expected to start before year's end. the chief financial officer said the company is looking to save $1.5 billion over the next four years. now finally for business, a story of sports and gambling, not necessarily together. madrid star cristiano rinaldo said he has partnered with a thatspace online brokerage focuses on small retells investors -- retail investors. they can bet with as much as 500 times the money they actually have. while that means gains can be higher, so can losses. studies report small investors lose money over 80% of the time on such bets. regulators are thinking about eu wide regulations to rail them in. plenty of other stars also have promotional arraignments -- arrangements with these investment systems. however, some say using sports to advertise these

why turkey is burning this is very simple turkey had experienced several military embargoed baidu nicest of america. at the. top for. turkey which turkey needs a lot in order for five. to be found the borders turkey and ankara have to decide which side they're on and i think over the past three years the united states has been along with nato allies big supporter of the turkish government as long as you know supporting their security and stability but i think the recent government and you know erdogan. behavior has become a little bit volatile and unstable for the region and i think his idea of defying the west reaching agreement to buy weapons from the from russia does generate concerns and even though he is right he has the right to decide from what country he will buy weapons he also has to understand he's part of an alliance and that he has to respect certain rules and also regulations that go beyond the fact that he has the right to buy weapons from any country that he chooses russia is not the alternative to nato fairest of all what turkey is doing search for biographic ational for

how do you plan to compete with amazon and baidu and other companies who have made moves in cloud computingwing revenues from the cloud? >> huawei is monetizing using technology using user data. this is the biggest difference between huawei and other over-the-top telecom companies. our customers with by our equipment in the past. now they buy our services and we just support them. >> across the business, margins have been squeezed. i know cost-cutting is a big focus now for huawei. when do expect to see margins pick up again? after-tax net profit margin was nearly unchanged from the previous year. we need to consistently improve operations, especially call structure and expenses to make huawei products more competitive. has happenedn 4g come and now we are looking at 5g, but still a long ways off, so where do sit tween the 4g and the 5g? how do you find revenue streams and equipment sales, and how much of that investment in 5g and waiting for 5g to come online is pressuring revenues in that part of the business? not only about communication among people. it is also about communication betwe

they gave baidu similar find after users posted ethnic hatred and other content.he fines. the troubles for chat services in china do not end there. facebook's messaging service has largely been blocked. for is a huge setback facebook which has been trying to reenter the chinese market .or some time that was the last remaining facebook service that was working in china. for more, i want to get to hong kong where stephen engle is standing by. what do you make of this? inevitable iost would have to say having lived in china for so many years, including the entire time facebook has been blocked the re. you got to realize the chinese government is serious about blocking these services. now it seems as though facebook is no longer available. i was there in july when the first crackdown started happening. i tried testing it by uploading photos or videos and it did not work. i tested it late yesterday when we started getting word it had been blocked. the actual messaging service. i sent numerous messages to my wife in beijing. she always replies wetter -- right away. she

alibaba sold their food delivery business to baidu. amazon should learn from that? >> it did not work for them in that case. maybe they did not want to play this long game amazon is willing to play. i think we can see amazon is committed to making something really work in food. we are seeing it with whole foods, we are seeing it with the amazon go concept where you don't have a checkout counter. you walk in, you take something off the shelf and can walk right out of the store. they are putting an enormous amount of resources into this. i don't see them selling any business is off to a competitor anytime soon. emily: now we are a few weeks and the whole foods acquisition, give us an update. >> it is going well. foot traffic increased in whole foods locations as well as online. i think what we can learn is by purchasing whole foods which has done a good job of building trust with consumers, amazon is now able to take that natural trust people have when they go into a whole foods and feel like they are buying an organic banana, and feel t

baidu, allll, investing heavily. they call this the netflix of china. a bit of a misnomer.revenue, but it is not profitable by any stretch, because they are investing heavily in content. there is a race for content in china by the big companies. it is losing money hand over fist. until it can turn that around, it is going to be a long struggle. emily: stephen engle with us from hong kong. always great to have you. that does it for this edition of "bloomberg technology." from new york, a reminder that twitterive-streaming on , have :00 p.m. in new york, 2:00 p.m. in san francisco. this is bloomberg. ♪ so new touch screens... and biometrics. in 574 branches. all done by... yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformation. a data fueled, security driven shift in applications and customer experience. which is why comcast business delivers consistent network performance and speed across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver. >> qamar studios in new york city, this is "c

baidu hasarch giant appointed a new cfo.xperience having served as cfo of u.s. internet company for 10 years. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. sophie: i check of the markets. , shares leading in advance. in singapore, stocks higher after exports surged 17%, beating estimates. monthspi the highest in a ahead of data. the hang seng climbing the most in a week as developers rally for a third day. real estate companies rising. levelauto at the highest since october 1993. h-shares, brokers leading an advanced after china relax rules on futures trading. you have the aussie dollar iron ore belowaul average. the yen falling to a seven-week low against the greenback. it is pushing towards a at 111.61.level avon yen losing ground with gold itn though south korea says is preparing for a nuclear test from pyongyang. dollar-yen 111 .22. we talk about central banks in a moment. that is other one big story. the other is when indian markets open up,

baidu wants to continue offering a controlling stake in ichi in the ipo. nestle has said a cuss ability target for one to 20, saying the underlying trading operating 5argin should be 17.5 to 18. cents. mark schneider is set to meet with investors this morning. he has said it should sell its stake. jpmorgan is thtoo hire 3000 people for a pub in warsaw over the next three years. the company will do fine team roles over the next three month. is looking for competition. the luxury unit has been holding internal discussions on buying other brands to diversify the range of vehicles itself. representatives for tata group declined to comment. mark: macron will outline his proposals to refine the european union today. the french president plans to announce all areas, ranging from defense, to the immigration, to the economy. angela merkel has other things on her mind. still with us, daniel morris. and still with us, charlie diebel. daniel, if i could start with you. i was going to outline his grand vision for forming the eu. he has one arm tied behind his back afte

stanford, we input $50 million into just uber trying to when it was created with a joint venture with baiduged the ownership that uber has in didi is going to be extremely valuable it already is. it reminds me of what happened at yahoo! >> let's hope that doesn't happen with uber. >> it won't because i'll explain why. but very smart jerry yang and dan rosenzweig and jeff weiner did that investment in alibaba and it became worth more than yahoo! itself. >> we've got to go to break. the likelihood of softbank's investment in uber is high or low at this stage? >> i can't predict the likelihood but i would hope and pray that that investment is -- would happen because of the reasons that are outlined andi think it would be very smart for softbank vision fund and uber to do that invest. >> great stuff stick around we have time for another chat to come >>> we have to talk about masa's comments on the singularity. he's worried about it. this is going to allow us to meld with -- >> no. >> yes, it is. because i'm living forever, damn it. >> i'm not. >> yeah, let's talk about it i'm not afraid of it i