economist karl, we had been talking about chinese tech companies. what about global technologies that have exposure in china? guest: the question is how far is the currency going to be moving? you need to evaluate whether it is their cost basis or predominant sales market. producers who are domiciled in mainland china are going to be much more competitive. that could be good news for them. that is a key reason why china is allowing the currency to fall to stimulate the export sector. both tech companies and other mainline companies doing business in china are going to face smaller corporate profits. emily: it is interesting, companies like facebook, google, twitter are not even in china because the government has locked them out but what about these other companies we are talking about here? guest: it is enormously important for apple and qualcomm. china is 12% of their revenue. the devaluation is going to reduce apple's revenue in dollar terms by $30. how does apple compensate? it has to raise the price, which is difficult to do because they were a

between working at a chinese tech company in google?ugo: there is a lot in between the lines in the culture. you have to be sensitive with what you say and who you say it in front of. xiaomi is a interesting mix of silicon valley work as hard as possible coulter with traditional chinese culture. it is a really interesting hybrid of things that you would see at apple, and absolute love for design and the culture of perfectionism. emily: is it a phone company, an electronic company, a software company? hugo: it is an internet company. that is the best way to describe xiaomi. we interact with our customers and users, or as we prefer to call them, our fans through the internet, through social media. we sell our products direct. we are the third largest e-commerce site in china. and the largest pure play by miles. we design products, taking a lot of input from the community. probably 50% of all of the new features we end up building as part of our software came from the community. you can pinpoint it down to one user's idea. this is very uni

the chinese tech company which became the biggest single source of shareholder losses worldwide.ine to break it down. careline? -- caroline? caroline: over the course of 12 months since the i.p.o. it was the darling of the stock market. it rocketed after it initially sold shares. come november, we start to see an eradication of market value. suddenly you start to see $90 million wiped out of its market cap. that is similar to goldman sachs' entire deevaluation. this is the biggest destruction of market value in the world. why? why have we seen an eradication in terms of their share price and what are they doing about it? what do we expect in this third quarter? that fiscal third quarter? we're expecting the weakest growth in three years. usually we see about 56% every quarter. why 33%? notably the china slump. you were just talking about it why china is of course slowing down. we're expecting the worst year for china growth since 1990. of course that is going to hit the dominant e-commerce giant in china. they are being sued over the fact that they are claiming they were allowing

. >>> chinese tech stocks that trade here in the u.s. down across the board. that can't be surprising, alibaba included u.s. tech companies, you're looking at an apple chart. swiss america trading chairman craig smith is with me now. craig, if china falters what does this mean for u.s. tech? >> i think the market showed what it is, deirdre, it's going to be tough, and i think when you are looking at a company like apple worth 27% of global sales come from china and for the first time this year that we sold more phones in china than they did in the americas, i think they have to figure out how they take the currency difference and take it off the bottom line or increase prices. one way or another, it's going to slow sales. deirdre: we know fox con, is obviously based in china. manufactures most of the iphones and this is a big question for apple. hey, will the chinese middle class pay that much for an iphone? there were a lot of doubters, the chinese middle class was interested and did buy iphones, maybe that changes as people lose money there? >> well, it may,

of course within these economies, just within china, two years ago you had a fantastic run in chinese techoader market was doing horribly. the nuances within these markets are more and more important, and corporate's are increasingly better managed as well. for all the macro issues, you know, you have to put in context. brendan: joe biden use the term "third world country," we prefer "emerging markets." as that term irrelevant? nohael: semantics, but comment is not relevant here to many are having higher growth in developed markets .it will probably stay on for some time . ultimately, the world will be pretty flat, and basically a lot of these emerging markets have emerged. look at korea, for example, spain was an emerging market 12 years ago. standards, most would say today it is not. so the terminology will evolve over time, but i do not think it is tomorrow. tom: can i rip up the script here? we have the advantage of brendan greeley's perspective on brazil. emerging-market debt on brazil, we are moving away from petrobras, rio olympics analysis to just plain debt. what if the character

chinese yen. stuns thele tech world with a new name.uture of the company now known as alphabet. scarlet: is there really a war on women? betty: we will hear from claire miscast goal -- claire mccaskill on donald trump's latest comment on women and whether she will support the iranian nuclear deal. ♪ welcome to "bloomberg markets a." i am pimm fox. betty: i'm betty liu. what a day so far. pimm: we have china news and indictments thatar

after ac, if chinese consumers stop buys tech products, we feel it. bay area tech companies tumbled, and then just as quickly they came back. how is this for a whipsaw? let's start with apple. shares felt to $92 each, and as word gout on the that tim cook assured investors that apple products are still selling well, it jumped up, that's billion in trading. netflix zooming up to 109, faster that you can stream a tv show. that's a huge move based on confidence in the american economy, even as china struggles. as sue herrera said, hard to predict the future, obviously, but one good thing will likely by lower gas prices. we have seen oil fall to levels we haven't seen in almost seven year. as i speak, apple, netflix, intel, go pro all very near positive right now. still pretty early in the day. there is likely more volatility to come, but tech showing some resilient. laura and sam, back to you. >> thank you very much, scott. >>> all right. now we are going to move on to a different subject. we'll be checking the markets throughout the morning. to a tough

chinese yen. stuns thele tech world with a new name. and look at the future of the company now known as alphabet. scarlet: is there really a war on women? betty: we will hear from claire miscast goal -- claire mccaskill on donald trump's latest comment on women and whether she will support the iranian nuclear deal. ♪ welcome to "bloomberg markets a." i am pimm fox. betty: i'm betty liu. what a day so far. pimm: we have china news and indictments that we are looking at. let us look at the top stories crossing bloomberg terminal at this moment china just made history in july 2005 when it joined the economic system and decreased its currency though you want. the country's central bank has devalued the yen by the most in two decades. they call it a one time adjustment. morgan stanley has also watched china adapt its currency. >> to have a lot of balls in the air and they are trying to do a large number of things all at once here. they want to rebound, restructured, lead globally. they want to reshape international institutions and reform th

but thus far, the government hasn't accepted the tech company's offer and using chinese equipment like these routers visible on the street. another sign of change, more and more small businesses. three years ago, the government gave permission for cubaens to leave their government jobs and instead work for themselves but only in 200 very low skilled occupations. ruen left his engineering job at the government agency starting a business making gift bags for parties and events. used to make $30 a month and now he says he pays himself $150 a month and has money left over for savings. his wife more than quinn tup tupled her income. cuba is still an unfriendly place to do business. cannot choose employees, cannot decide how much to pay them and in fact, foreign companies don't pay their companies directly. instead, they have to pay the cuban government which keeps most of the money, according to richard fineberg of the bookings institute. >> that in effect pockets the 95% of the payment in hard currency and then pays the poor cuban worker in local cuban pesos the equivalent of only about 5%

tech-company's offer. instead, is using chinese equipment, like these routers visible on the street. another sign of change, more and more small businesses. three years ago, the government gave permission for cubans to leave their government jobs and, instead, work for themselves. only in about 200 very low-skilled occupations. ruben left his job with a government agency and started a business making gift bags for parties and events. he used to make $30 a month. now, he pays himself $150 a month and has money leftover for savings. his wife more than quintupled her income. when it comes to meaningful levels of investment, there is almost none. cuba is an unfriendly place to do business. foreign businesses can't choose employees and can't decide how much to pay them. they have to pay the cuban government, which keeps most of the money, according to the brookings institute. >> then the entity pockets about 95% of that payment in hard currency, and then pays the poor cuban worker in local cuban pesos only the equivalent of about 5% of what was actually paid by the corporation. >> that is

tech to chinese internet stocks check out these names today on fire even as the shanghai and u.s. stocks continue their decline. but despite today's gains look at the performance of the stocks year to date. not a pretty picture. baidu down 40%. alibaba 34%. the only one in the green is ren ren, the facebook of china. so should you trust the bounce today? >> i'd be careful about the bounce today. these names trade very much in line with a london close. london and german stocks closed on the highs, closing the highs before we pulled back. these names are going to pull back tomorrow. i think they're oversold on the china implax i still think baidu is the best value in the growth in the group. i think around 130 you have a little more support. but again this is a stock i'm buying on weakness. >> you're saying you watch the london close as an indicator as opposed to the u.s. markets or what china's doing? >> the guys that tend to hold this and the hedge funds that tend to trade these things more aggressively are london-based or global-based funds. they trade with the london close for t

the hang seng and chinese enterprises index moving. tech stocks, linobo moving lower. banks are what we are focusing on today. some striking numbers. the fact that many of the big 'd oute banks have not eeke any kind of profit this year. brokerages will boost the markets and buy back shares. what to give you a sense of some of these brokerages in china in steep declines today. everbright security down about 5%. sidic is the big -- citic is the big surprise are today, downprise about 9%. quickly checking in on the banks today. bank of china, bank of communications -- i correct myself. the fact that bank of china, its latest results not coming in as expected. the chinese construction bank earning zero-- profits in the latest quarter. it is driving the wider markets lower. economic data, you hinted on the lead in -- i can tell you japan, south korea and the industrial production numbers are not suiting investors. worse than expected. we will continue to follow all of these numbers and the impact that china will have on this market. tomorrow we get manufacturing numbers fr

and several well known bay area companies of course took a hit yesterday as tech companies rely heavily on the chinese economy for business. apple slipped below $100 a share. it will open today at $103. right now it's set to open higher this morning. san jose closed down more than 6%. >>> time is 5:04. cardinal william lava da has been arrested for suspicion of dui. according to the hawaii tribune hearld, he was pulled over in hawaii last thursday about midnight after a patrol car saw him swerve. >>> the man accused of killing kate steinle is due in court today. the hearing will determine if there is enough evidence to charge him with murder. he has already pled not guilty. steinle was shot and killed on july 1st. her death sparked a national debate on immigration because lopez sanchez is an undocumented immigrant who had been deported five times. >>> a person was killed after being hit by a car in fremont. that happened just before 9:00 last night on fremont boulevard. police say the driver stopped and is cooperating with the investigation. the name of the victim has not been released. all lanes in t

the other chinese indices not doing quite as well. the tech index down closer to 5%. shenzhen down about 2.5%. well, thistion as pmi data out of china, we had two readings. put those things together and you do have a better picture of how bad the situation is getting. running the risk of exaggerating , things aren actually looking a bit worse. official pmi came out saturday at 50. you look beneath the hood. new export orders, in put prices, inventory, all falling from june levels. you look at the other measure of pmi, the privates are they -- , 47.8.vate survey it wasn't only in contraction, it was well in contraction. below 48 for the first time in several years area -- years. all this risk aversion playing into equity markets. china, we talked about that. taiwan, australia, japan, south korea, all ending lower. jonathan: david ingles with a drawing of the average that does look like it has had a couple pints of heineken. thank you for joining us this morning. in beijing, nick wadhams is standing by to break down the latest numbers out of china for us. one pmi says t

chinese economy. alibaba joins twitter as the second highest tech company to sink below it's ipo price in less than aeek. >> amazon is extending it's prime now service to seattle. it will start to deliver alcohol. the first for that in the u.s. >> there you go. >> it's a 1 to 2 hour service available to current amazon prime members in select cities. it was launched in manhattan last year. it's in miami, chicago, dallas, austin, a whole bunch of cities and when you're looking at the share price out there we're lower in german trade over the last three months down by 7%. >> this as futures indicate a higher open. coming up on worldwide exchange, one u.s. company is celebrating today as it wins a major contract to move u.s. military personnel from point a to point b. we'll give you that full story after this break. can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive? >>> excuse me, sit down. you weren't called. sit down. sit down. no, you don't. you ha

tech companies expanding into china. a week ago, airbnb announced a partnership with two chinese venture capital firms to hire a china ceoand uber's china arm has closed its fund-raising round early. what challenges will they face, expanding into these local chinese markets? still with us, who lives in china, and can give us the exact picture of what these services look like. let's start with airbnb. what you think about the strategy? the first thing they say is right now they want to look for a ceo in china to manage the business. companies that have managed to do this successfully like linkedin, they were looking for people with a range of experience operating on the ground in china, but also having the communication abilities to communicate with managers in the u.s. so they have enough support and backing of the headquarters, and also an understanding of how the regulatory environment works. when youly important are trying to compete with local competitors on the ground to navigate the economy. emily: how would you compare the way that airbnb is doing it versus the way over is doing it -- uber is doing it? lulu: [indi

heavy in tech stocks, chinese -- >> speaking of, while there -- >> i watch people on fox business. >> say yesterday he saw it as buying opportunity. face book was plunging. he stepped in and bought shares. he considered it a sale. technology is hot this morning. nasdaq represents mostly technology companies. the nasdaq is up more than anything this morning. they're buying them this morning. >> because china did something, europe did something? >> brian, good point. china did cut interest rates. china saw a huge over 7% selloff overnight. that's not translating to losses at home at least for now. all 30 dow stocks now in the green. apple is a big one by the way. >> steve, it's okay to do nothing when market is cratering. if you know what you own and comfortable with it, amen. >> money is in pork bellies. >> sandra, do you have a favorite panelist and why? >> she hates me today. >> you have to tune in. there is disagreement between us on set is. it's friendly disagreement. >> it's called a cat fight. >> >> charlie is trying to be the mediator. he's the good guy in the middle trying to m

chinese government wants him back. >> a rare perk for parents. what one bay area tech company is offering to keep its workers and kids happy. >> and her tweet to break down barriers also broke the internet. the message she sent ♪ hush my darling... ♪ don't fear my darling... ♪ the lion sleeps tonight. [snoring.] ♪ hush my darling... [snoring.] ♪ don't fear my darling... ♪ the lion sleeps tonight. [snoring.] take the roar out of snore. the buttery jack was a huge success. people went crazy for a burger with melted garlic herb butter. now, here's the sequel... ...with portobello mushrooms. boom. hang on, i don't want anyone to trip... ok. oh yeah. that's jack's new portobello mushroom buttery jack, the sequel to the classic and bacon & swiss, topped with the same melted garlic herb butter, plus portobello mushrooms and grilled onions. spoiler alert: it's awesome. when account lead craig wilson books at laquinta.com. he gets a ready for you alert the second his room is ready. so he knows exactly when he can settle in and practice his big pitch. and when craig gets his pit

chinese government wants him back. >> a rare perk for parents. what one bay area tech company is offering to keep its workers and kids happy. >> and her tweet to break down barriers also broke the internet. the message she sent that ,,,,,, ♪ we invented low fares. then everyone else pretty much tried to follow. we call it the southwest effect, but other airlines probably use more colorful language. low fares. we don't just have them. we invented them. and here we go again! book for as low as 73 dollars one-way now at southwest.com ♪ >> the northern california community of lumos finds its at an international dispute between the u.s. and china. at the heart of it is a chinese national who may have some highly secretive information. >> reporter: the chinese media is seeking out this home. the new york times report says the man who lives here is a rich and powerful chinese national who is possibly defecting to avoid a chinese government corruption organization. >> the first you heard of this name is in the new york times? >> yes it is. >> reporter: she says she has never s

chinese consumer. >> it's amazing. google doesn't care and facebook doesn't care. they don't operate there. all i know is technd media stocks. i can't talk about anything else. for years and years and years not being in china was a bummer for facebook, such a bummer for google. now the companies that have exposure, it's cutting the other way. apple is the one people are concerned about. pull up a chart of linkedin. they were talking withabout how can be in china. it's down. facebook and google are the ones that throughout this entire thing are a little bit down but they don't have china exposure. >> there's a school of thought out there that china is in the process of bottoming. i think it's -- hspc, housing there, bottoming out. infrastructure investment set to accelerate. obviously the markets have paid a price for some. people are not throwing the towel complete ly in on long-tem growth. >> they think there might be a floor around 3,200. this idea the government is going to stop its state-sponsored buying of shares spooks people a little bit. we don't know exactly what to make of it. >> and we don't know e

chinese technology companies aside, what does it mean for u.s. techpanies like apple and google? apple is pretty good case study of what could happen, what the impact of the yuan devaluation could be for the broader economy. fact not to mention the that these tech companies in china had problems aside from the selloff. there is concern of slowing growth in china. right, it is a, google does not operate in mainland china, basically. it is not as big a deal for a company like google or facebook and twitter, which are blocked in china at the moment. you have to think to us an extent with the broader slowdown could mean for the broader economy. some analysts think that software is not going to feel the brunt of this, but hardware companies will. it instantly makes the iphone a lot more expensive for a chinese consumer. this is in a market where there is saturation. more and more people already have smartphones, so they don't necessarily need a new one. the iphone is about $300 more in china. it is already quite expensive. the other thing is apple has alre

tech stocks could have more effects. >>> and according to statistics, chinese buyers have spend more than 16 billion- dollars in the last two years in real estate. >>> state lawmakers are wrestling with the crumbling roadways and bridges. california facing a 16 billion- dollar repair backlog in the next decade. it is so bad that governor brown has a special session to address the issue. among the proposals, they are bouncing around over the past week, hiking the gas tax and vehicle registration fees and redirecting money to pay for roads or adding a toll for carpool lanes. >> could we be seeing tgit or thank goodness it is thursday. companies like clothing store euna glow are testing out four day week. working four day weeks for ten hour days but working weekends and holidays, the goal is to give the employees better work life balance. >>> the biggest and most extreme bike park in the bay area and it opens at 10:00 in novato. we got a look. it features all kinds of terrain and trail for mountain bikers of all ages. and skill levels. >>> a new class of golden bears will be welcome to the cal campus. more than 7000uc berk

tech companies have failed? in china, you are seeing with the success of the iphone, a growing block of chinese consumers want toave a more westernized lifestyle. emily: is the government going to allow this? guest: the government is pretty can --f choosing who it you can succeed in china. to improve relations with companies and relations outside of china. twitterith facebook and being blocked and companies saying we're not going to try china at all, what makes me -- what makes airbnb different? guest: media is a lot more regulated and there's a lot more cross-borderereas commerce is being promoted by the chinese government. emily: i recently sat down with the cto of airbnb. take a look at what he had to say about airbnb's expansion in china. a country is growing faster than any other country in the entire world as a source for travelers. incredible growth. it's an amazing thing. there's a growing middle class and the first thing they want to do is experience the world. many of them have not left the country ever before. china is number one in terms of international tourism expenditure. it was $100 billion in 20

so big hit to tech company stocks could have a much more dramatic effect. in menlo park, christian hartnett, kpix5. >> chinese buyers have spent $600 million on bay area real estate in the last two years. >>> i am going to be the greatest jobs president that god ever created. i will tell you that. >> donald trump speaking to a crowd of 35,000 in mobile, alabama tonight. so many people wanted to go, it was moved twice to larger locations. trump reiterated his disapproval of illegal immigration and made another promise. >> you know, if it rains,ly take off my hat and i will prove ... i will prove once and for all that it is mine. >> and check this out. donald trump is leading the republican pack with 32%. up eight points from a week ago. while trump continues to gain momentum, he is at the center of another immigration fire storm t. one focusing onto words. >> i will use the word anchor baby. excuse me. i will use the word anchor baby. >> that single phrase from donald trump that many consider offensive is setting the agenda for the whole field. ted cruz who hopes to siphon some of his antiestablishment momentu

chinese economy as well. alibaba joining twitter as the second high profile tech company to sink below the price in less than week. >> but alibaba higher in yesterday's trade which is interesting to see one of the bright spots out there. but there are two tech companies that are are weathering the storm louisa. should we get the report? >> we should. >> julia is breaking it down. >> two stocks bucking the markets negative close on tuesday, netflix and facebook, both hanging on to some gains during the day's rally. netflix shares closing up 5%. facebook shares closing up nearly 1%. they issued a note monday calling out netflix and facebook as two of the best pull back opportunities while they reiterated a buy rating on netflix giving it a $143 billion price target. mark cuban also explaining on cnbc's fast money on monday why he's holding on to his position and doubling down on facebook. >> it's driving the whole content industry so i have no problems of holding this for the long-term. i don't know what level it takes for me to buy more, but there is a point and i added to facebook. it's in a similar situatio

chinese firms spent more than 6 billion u.s. dollars on semi conductor accu initions -- acquisitions 2013. has struggled as taiwan's tech wings ordered chips in china. we will see about all pans out. tesla fell in extended trade after cutting its own forecast. it had aimed deliver 55,000 vehicles this year but is lower that target between 50000 and 55,000. some analysts are saying they're not surprised by this news as tesla had earlier plan to increase deliveries by some 74% this year, some saying that was perhaps a bit of an over exaggerated target. target was relying on orders coming in late in the year. that depended much on the introduction of the long anticipated model x suv. elon musk now says the suv will be worth the wait. supposed to go on 72013, the 2014, he said it is a particularly challenging car to build. the company said it still expects to begin delivering a small number of the suvs in late september. but, that can reduce the output by some 800 vehicles. elon musk any tesla ceo say that it is a choice been a great product or hitting quarterly numbers, and they take the former. doubled,rders nearly and th

. >> reporter: tech companies here in silicon valley do a whole lot of business over in china, and with the slow down of the chinese economy, investors are worried about our bottom line. which led to a black friday for your money.l5 for the second day in a row, stocks were clobberede. the dow down 531 points. the market suffering its worst week since the teeth of the 2008 financial crisis. concerns about the chinese economy, coupled with swooning oil prices, led to wall street worries. >> we have all these things converging that are creating a lot of uncertainty right now. and the stock market does not like uncertainty. >> that is mcdonald's. >> reporter: as bay area investors check to the numbers, they saw red. apple, down 6%. netflix, down 7.5%. facebook down 5%.!Ñ but most say they'll hang in there. >> not really worried, honestly. tend to do base investments. >> not panicked. this is just a blip. >> reporter: blip or not, stock watchers say what goes up always comes down, at least temporarily. >> you can't just have a market that keeps going straight up. we had that before, and we all know what happened. >> rep

chinese a competitive edge over foreign ones. for instance, one of the most salient case of china mobile phone factor -- [inaudible] even the fact china is one of the most biggest markets. high-tech firms still remain, but the general situation is changing now. taiwan's equipment manufacturing model is now facing a dire threat in the form of shrinking private margins and the rise of chinese domestic manufacturers. their own brand manufacturing model of i.t. production is constrained by the lack of marketing in the global logistics capacity. so the up and down like htc reflects the painstaking losses of the taiwanese odm model of factors. extension of the case like fox, empire provide under the model that goes beyond medium-sized enterprise model of the open. a lot of problems or issues on the fox com model. so the rise of china's domestic manufacturers also threatens the position of the taiwanese lenders being, for instance, apples iphone supply chain. the potential rise to replace taiwanese firms position is a reflection of the strong support of indigenous firms from the chinese government. so in addition to chinese government is promoting the merger and acquisition of state own

china is one of the tech giant's biggest markets. a weaker chineserency hurts its revenue, apple's, when it converts to u.s. dollars that stock is down more than 5% today, kelly. >> quite a hit. it's astonishing, really. i'm on the floor with gordon charles of rosenblatt securities. >> we're watching to see whether they hold them or start to continue the trend or reverse them. right now it looks like they may hold or reverse a little bit. we've been to the downside to the opening of the session. the way we're looking at it here, it retraced off of yesterday's gain, a little bit past that. when you start to get to the technical lines like that, there's a little bit of wiggle room on that. the question is what's the trend going to be for the whole week? certainly the news was discouraging but right now we're seeing buyers coming in here. we're being patient. >> we see apple down sharply, commodities in freeport, that whole complex getting hit again. where are people bidding. >> there are a couple sectors. all the sectors have been rotational. we've see

tech stocks that move higher in yesterday's trade. before we go to break, here's your headlines. chinese authorities step in to pump more liquidity in the markets. oil swings between gains and losses after jumping 10% in yesterday's trade and the cleveland fed president says the u.s. economy can handle a rate hike despite the market volatile. you're watching cnbc. we're first in business worldwide. ♪ no student's ever been the king of the campus on day one. but you're armed with a roomy new jansport backpack, a powerful new dell 2-in-1 laptop, and durable new stellar notebooks, so you're walking the halls with varsity level swagger. that's what we call that new gear feeling. you left this on the bus... get it at the place with the experts to get you the right gear. office depot officemax. gear up for school. gear up for great. >> the chinese central bank announced plans to inject 60 billion yuan. this is to stem further equity declines. let's get the full story from sri live in asia. just for our audience to understand what these are, they were introduced by the central bank in 2013 to r