i asked daniel zhang, are the police inside ali baba right now? here is what he had to say. niel: we serve millions of merchants. we work closely with the government to follow the government policy of regulations and we continue to do so. we are in compliance with the laws and regulations. emily: as an investor, hans, are you worried about this? the chinese government is only getting stricter when it comes to the internet in china. hans: i love the answer. emily: translation, yes, if the law says we should have police officers-- [laughter] hans: whatever you call it, there is more monitoring with what is happening on the internet. having said that, it is still a great way for people to express themselves and for the government to address issues and problems around china. it is a big country with 90 million party members. the ability to impact the country is still respected. emily: i want to talk about 10 cent, also purportedly having police officers inside the company. they are reporting earnings, they had a record quarterly profit. marguerite, what do think about how they ar

best place to get the answers is the ceo, daniel zhang. joining us now from hong kong. thank you for joining us. this is your first report card as ceo. what are you doing differently? $90 -- $90s lost million in market cap and have your reverse that trend? quarter wethis continue to deliver a strong result. we will grow 34% year-over-year and our revenue 28% year over year. specifically, we made good progress in mobilization for the first time. our mobile revenue exceeded pc revenue. i think this is a good transition for mobile and we made a big investment in the largest consumer electronic retail chain. signals we will enjoy a healthy growth and we will create more value to our customers. this gets you big into off-line commerce, the biggest deal ali baba has made. how many customers in rural china do you expect to get as a result of this deal? the investment marked our our omni channel strategy. we want to create a unique premium experience withsoon yi to integrate online/off-line experience. they have over 1600 off-line stores. they hav

government is looking at putting police officers inside internet .ompanies like alibaba i asked daniel zhang daniel: we have a huge consumer base and serve millions of merchants, and we work closely followe government to the government policies and regulations. we will continue to do so and to make sure that we are in compliance with the law in china. if thethe translation, government says we have to have a police officer in the company, we will have a police officer. betty: they don't seem to have a choice there. this could in snare more victims. from new ventures movies, and in israel. these movesers view and do they worry about growth? joining me now is jon medved. good to see you. emily just filed this report she did with the ceo of alibaba, and clearly there are concerns about china and the growth. how is that affecting the tech world? we see no signs of maintenance here. this is not a week or month-long phenomena. china is pulling vast sums of capital. in our office alone, we are seeing several chinese delegations week. a billione as much as dollars at work in is really ventures from c

alibaba ceo daniel zhang will be on cnbc in a first on cnbc interview at 3:00 cet. >> very excited for today. i think company went public in september but already facing challenges and this earnings report is very important to understand whether the company is spending, you know, strategically and whether any of those acquisitions they make are actually helping their bottom line. >> those concerns reflected in the share price back at the ipo levels. >> big drop there, wow. moving on, s&p is putting berkshire hathaway on credit watch negative. they want to finance the $32 billion deal. they have a aa rating and the company may have to draw on capital from its insurance units despite it's substantial cash resources. warren buffet said he plans to pay for the deal with $23 billion in cash and borrow the rest. berkshire class b shares down 1.2% in frankfurt. >> moody's is cutting brazil to near junk status. the move comes two weeks after s&p warned brazil would use it's investment grade status if fall out weighs further on the economy but moody's says brazil has the ability to achieve a tu

with alis my interview baba ceo daniel zhang. ♪ >> from our studios in new york, this is "charlie roserlie: we continue with our of the 2016 presidential coverage election. donald trump continues to lead the republican field. meanwhile, hillary clinton proposed a 10 year college tuition plan that has come under criticism from some republican contenders, including marco rubio and jeb bush. the iowa caucus is first. joining me now is mark halperin

earlier on cnbc ceo daniel zhang had this to say about china's impact on the company. >> we closely monitorhinese economy and the impact on our chinese consumers' behavior, but what we observed that consumers still coming to our retail platforms to do the shopping because of the lifestyle change. so we are confident for our long-term growth. >> baba's pain dragging down shares of yahoo! which owns a big stake in the giant. bob peck is suntrust managing director. today without the red phone but still bob peck. so bob -- >> just in red in yaw ah's underlying stock. >> red in yahoo! red in bah baba. let's first deal with the baba question because that's integral to whether or not you want to own yahoo!. how bad was this quarter? because it sounds like you don't think it was that bad. >> we thought it was an okay quarter. slightly missed msgm slightly missed revenues. still talking about a platform that's growing 30% as far as their users, 30% in gmv, 30% as far as revenues. >> the lower take rate wasn't a concern for you? >> actually the great part about that was the mobile take rate was up 50

we spoke to ceo, daniel zhang earlier on the show. he had to say about the chinese economy. >> we closely monitor the chinese economy and the impact on our chinese consumer's behavior, but what we observed that consumers still coming to our retail platforms to do their shopping because of the lifestyle change. so we are confident for our long-term growth. >> continue to say, of course, there was confident there, perhaps less so among the investment company. they put in a buyback. earlier this week they announced the deal with a large retailer in china for -- similar to best buy. mobile as we know from monitoring companies in the u.s. that are focussed on e-commerce is the critical way that people access so much of their buying. no no difference in china. mobile has taken over from desk top in terms of the majority of purchases. >> this quarter we observed an increasing shift to mobile, and we make big progress in the mobile transition, and in this quarter, we reported a 55% of gnv of our china mobile marketplace was from mobile. and 5

cooperation or alleged cooperation with the chinese government has taken a lot of flak for this area daniel zhangommenting. daniel: as a company they have a huge consumer base. serving millions of merchants. wheeler -- work closely with the government to follow the government policies and regulations and we will continue to do so and to make sure we are in compliance with the laws and regulations in china. seven: -- zeb: it is a tough time but there are some bright spots. the mobile business expanding and the numbers that mobile revenues were up on the order of 34% in the latest quarter. angie: an interesting partnership with macy's. what is this about? : they are trying to target the average consumer. it is a midrange department storebrand, very visible. macy's posts visibility. angie: $.10 on the other hand, the work has already been done. they did pretty well. : they are expanding rapidly content that the market in china cannot get enough of. it is delivering. record quarterly profit, the second-largest internet company in china only second to alibaba. the ad dollars are lucrative and certainl

daniel zhang took over the company for the first time monday and is written a memo urging steph evers to shift their focus to customers away from the slumping stock and said this will not be the last time. the shares did rebound on wall street tuesday. just above their debut price. rally of stocks rally evaporated and the final hours of trading. the decline has happened and concerns but which slow down. the company was not doing enough to weed out fake goods on its site. governorsustralia's held a summit in sydney. what is he mean, is this a more subtle prodding from glenn stevens trying to get the tony abbott government moving? let's give that question to the man who knows -- paul allen. paul boy, the central bank governors are notorious for speaking obliquely and cautiously but if glenn stevens is becoming less subtle by the day he has previously said there are limits to what monetary in junean achieve and he was musing that perhaps australia's growth is not the 3.25% we have been a assume in but perhaps it is lower than that. just this morning he was asking a series of rhetorical q

from that was daniel zhang alibaba, which is down as much as 8% today, even after promising a $4 billiony. still ahead, when your boss once to know your heart rate. ♪ matt: the future of the high-performance workplace is signs place full stop shows hormones affects behavior and employers in the u.k. are taking advantage. hedge funds, banks, consultancies are installing tracking systems that use biosensing wearable devices to link human behavior to business performance. erik: ok, it is science. so the initial reaction for most people will be, what on earth does in employer need to know my heart rate for? why should an employer be tracking my health, which is for many people, a very personal thing? the more i thought about it, the more i thought, this makes sense. there's no reason you wouldn't kinds team to know these of things from a performance athlete, particularly professional athletes, and if you believe your employees, more or less, fulfill the same role that a pro athlete does, the maybe this is a -- isn't a crazy thing after all. matt: i could see what you want to hook up heart ra

it will report earnings of 58 cents a share off $3.4 billion in revenue for the quarter and daniel zhangn "squawk on the street" 9:00 a.m. eastern time. let's bring you up to speed what's happening with the markets. the dow jones off by about 237 points, you can see the nasdaq down by 79, the s&p down by 25. the nasdaq the big loser so far today. more on "power lunch" when we come back in just two minutes. seven out of ten power outages in the us are caused by weather. but utilities can now predict where the power will go out, within a few city blocks. working with ibm, they're combining micro weather forecasts with detailed data from local sensors. to predict where outages are likely to occur. and send crews exactly where they're needed, when they're needed. ibm analytics from the internet of things is making energy smarter every day. >>> shares of conformis down today. meg is live with the ceo. >> dr. lang, thank you for joining us. i understand you guys do customizable personalized joint replacement. can you tell us what that technology is? >> so basically off-the-shelf devices implan

alibaba ceo daniel zhang will be live for a first on cnbc interview. you don't want to miss that.ay's sell-off sent a chill through the market as the vix spiked more than 12% and the traders are betting on even more pain to come. brian sullivan has today's "options action." hey, brian. >> hey, melissa how are you doing? the vix was hot and that was a hot topic on the floor. certainly traders stepped in. bought 20,000 august 18/20 call spreads and then paid another 9,000 for 8 to 10 cents here. basically, the trader risking one to make 19. if the vix trades above 20. that's a huge bet that the vix trades to the up side. the 19/1 payout is a huge payout, but obviously so you're risking a little bit to make a lot. and basically i think traders here on the floor are starting to get concerned about where this market is headed. we've been in such a tight range, melissa, between this 2070 level and 2100. a little bit higher than that on the s&p 500. if we get a break below 27, i said this earlier today, the future trades 2068, i think we get some volatility and you get that spike to 20 i

ceo daniel zhang will be on "squawk on the street" 9:00 a.m. eastern time. stocks falling sharply no surprise on china's devaluation of the yuan with major sectors down across the board. a number of luxury names sliding including swatch, lvmh, hermes. and greece and its creditors have agreed on terms of a new bailout. if approved by eurozone governments. officials say the deal woun lock about 86 billion euros in financing for greece over three years. the country of course has to make that 3.2 billion euro debt repayment to the ecb a week from thursday. news of the agreement gave athens a much-needed lift as you can see. up 2% after a rough week or so. when we come back, we've talked a lot about google's restructuring this morning but according to kevin o'leary the company still has not gone far enough. hmm, i wonder what he means. his prescription for growth, dividend included, when "squawk alley" continues. the dow down 218. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information t

daniel zhang, alibaba ceo coming up in the 9:00 hour. morning and currencies and fixed incomes. here are the top headlines. marketshina is rattling again and is rattling markets again and spurring the people's bank of china to intervene. the currency sank for the second day. bloomberg news reports that authorities did intervene to report the yuan. stocks are down around the world and futures indicate that u.s. stocks will be lower at the open. hsbc's senior economic adviser tells bloomberg you could see this as payback. >> china is in a slightly difficult position because the roman be has been a strong -- reminbi has been a strong currency. every other currency has tried to devalue against china. julie: emerging-market stocks have sunk to their lowest level since 2011. they are now in a bear market since hitting their peak last september. the price of oil is bouncing back from its lowest close in six years. west this -- west texas intermediate rising to just under $148 -- just under $48 per barrel. prices are down more than 18% this year

and tomorrow alibaba ceo daniel zhang will join us after the company reports. what's happening on the ground in china. "squawk on the street" will be right back. at ally bank no branches equals great rates. it's a fact. kind of like shopping hungry equals overshopping. >>> oil is in a deep slide today. it's down about 4 % right now. kourtney is with us if w more on the slide. china courtney. >> that's exactly right, sara. china is front and center for a lot of movers in our market but most especially crude prices here as you're seeing them tumble almost 4% getting ever closer to the 42 handle which is a very key support level. and what happens here is sort of a double whammy. when china devalues its currency it makes crude oil more expensive because of course it's dollar denominated and also reignites those fears about a lower demand from china, even lower than what we had previously been worried about. we also got some news out of opec today that again those production levels hitting three-year highs. the opec also forecasting no extra demand this year for cru

. >>> don't miss daniel zhang on "strauk on the street." >>> new data out today confirms that amazon'say was a boost of sales and to the merchants that sell goods on the site. prime day was particularly beneficial for merchants offering prime eligible products that had prime day deals or both. some of them saw 200% year-over-year growth on prime day. that same day the year before was not any special day. in july, there's 3,000 strong customer base with merchants like dell, under armour and kitchen aid that sold on amazon priced 30.1% increase in online sales. and google shopping at 13.2%. now we should note that july sales were up 30% year-over-year for merchant selling through amazon. in july 2014, sales were up 40% year-over-year, which actually would indicate a decline in sales growth according to channel advisers data. all of this data doesn't point directly to a particular level of increase of revenue for amazon except for the way that the fees, amazon charges merchants for selling its on site. what we do know from amazon is worldwide order growth on prime day grew 266% year-over-