it was a lot on daniel zhang. he will stick around and oversee the cloud division and perhaps some of the big ai initiatives. they lost ground to baidu. baidu has been able to roll out early -- for me chatbot. -- early chatbot. the big challenge will land on eddie wu, who also founded the company. is that a good thing that they are going to the past to recapture the spirit or is that not the right mix? wall street kind of weighed that choice and that is why the stock was down 4.5%, questioning whether joseph tsai, very well-liked and connected on wall street. he owns the brooklyn nets. he has a sports empire. he invested in blockchain technology. he is an accomplished businessman. taiwan born and u.s. educated cofounder of alibaba. does he have the ability to take on this restructuring in a very different china given the regulatory crackdown? it will be interesting to see joseph tsai and eddie wu, who was much more quiet, but it took will part of the e-commerce giant. vonnie: you mentioned it looks different than

alex: this is actually a sideways promotion for daniel zhang.here is a sense that maybe they did not think he was up to the job or he is better at a fast growth business driving that and he needs someone here who is really going to be facing up to that competitive threat. a lot of people are trying to parse out right now. the reaction from investors have been mixed. something it is great and some think it is negative for the stock. in a few hours we will have a clearer sense. francine: who is calling the shots? alex: it is very hard to tell. these are people who are quite close to jack ma, the founder but he does not really have a formal role at the company. he is a big shareholder of yours. he has gently been eased out with a certain amount -- and part of the broader crackdown on tech companies. in the process of cracking down on domestic tech companies we saw jack ma gently leave from a formal role. they are all sort of -- the perception is they are similar but don't have the prominence that he does. francine: thank you for coming on. bloomber

stephen: it looks like this is a demotion for daniel zhang. ree with bloomberg intelligence, it is simply shifting daniel's emphasis to the cloud division, the second-biggest division after e-commerce, taobao and t mall, and one of the divisions with the greatest potential. they need to become profitable. daniel zhang, instead of being the overarching chairman and ceo of the newly structured six unit alibaba, he is not going to focus specifically on cloud -- now going to focus specifically on cloud. we're bringing in joe tsai and eddie wu, 67% of revenue comes from taobao. that tells me the emphasis is going to be on two of those six new divisions. i have a list of the six divisions that alibaba is going to be restructured into, announced in february or march. the emphasis, as we have had three consecutive quarters of single digit revenue growth at a once behemoth e-commerce and technology. we only have five lines. we had to combine local services. digital media is probably the biggest laggard. digital media will probably go ipo. the emphasis i

that is what we can read into that back to daniel zhang this is the critical alibaba business businesst is key to the business. i spoke to daniel in 2018 as i was moving to china. at that time, i spoke about the cloud business listen in to what he had to say. >> cloud computing is a long-term strategy we believe every business in the future will be powered by cloud. we are happy to build this infrastructure in the new digital era and support the business to go digital >> nearly five years ago, daniel said cloud is the main business in the future. it has come full circle. he is all-in on cloud and sees this as the key to the company going forward. >> what is the significant to the fact that zhang is head of the cloud computing unit it feels the growth in alibaba has started to slowdown. what is the biggest challenge at this point and why would he make the decision to stay on top of that unit? >> since that interview in 2018, i'll give you the sense of the cloud business the $825 million business. fast forward to the march quarter this year, $2.75 billion. it was growing each quarter. at

is more than the $7 billion initially reported >>> in the surprise move, alibaba is replacing daniel zhang with eddie wu. zhang will leave role as chairman of the board and s succeeded by jack ma and joe si. this comes after the restructuring to boost growth at the individual divisions >>> adobe's $20 billion deal for figma is under the microscope in europe the tie-up is set to face an investigation into the deal that could threaten competition in the digital design market. you can hear more about this probe and more tomorrow when we speak with the head of the eu task force at 5:15conversation a lot of people think the eu is ahead of the u.s silvana, thank you. >>> more to come here on "worldwide exchange," including the one word investors have to know today >>> first, despite the down day on friday, stocks are doing something on friday for the first time since 1997. it's a good thing. >>> and the exclusive. the one-on-one with the coo of lockheed martin. >>> and we have one even tremendous -- even tr - entrepreneur paving the way for others more still ahead on "worldwide exchange." ♪♪ at

daniel zhang will now lead the new cloud computing division, one of the six units announced in march,i, head of market analysis at rbc brewin dolphin. and asked how much of a surprise this move was? this is a surprise announcement, but actually not too surprising in the grand scheme of things, because alibaba has been facing a number of challenges. it has now split up into six units because of antitrust concerns. and also china, economic growth is slowing. alibaba is very hard to see that kind of double digit year on year growth going forward. so actually, in the last three quarters there is just single digit, and five of this division is loss making. so i think a new leadership is likely to generate new ideas, to give newer perspective. and also these two leaders actually bring back from the veteran when they were actually working very closely with the founder, jack ma. so we'll see if there is going to be a turnaround from this leadership. you mentioned the six different units, how likely do you think it is we may see job losses and possibly even separate stock market listings? so,

this is something that daniel zhang unveiled back in march. six individual units that will be able to raise their own capital and potentially list. that is where joseph tsai may be able to come into play. the regulatory environment in china domestically has changed dramatically since joseph tsai was involved. joseph tsai might be the wall street face and eddie wu -- the pressure of that restructuring might lie on his shoulders. he is deep into the knowledge of alibaba and the payment systems and e-commerce, the bread-and-butter. he could perhaps take alibaba back to its core business which is e-commerce. they have not been able to unlock the value of pre-regulatory crackdown and they have had three consecutive quarters of single digit revenue growth. investors want better performance. vonnie: it will be interesting to see how much of a proxy china will be moving forward. >> absolutely. that antimonopoly crackdown on alibaba open the door for other competitors. they have definitely lost share in a number of areas. they are not that dominant of

because they announced a new chairman, a chief executive unveiling a surprise plan to replace daniel zhangthe helm of a company that has been bleeding market share and they have been struggling to revive growth in the post-covid era. for more we are joined by head of bloomberg intelligence asia-pacific. what is behind the shake up here? >> i think the ceo reshuffle we have seen it reflects the change in the new structure of alibaba is a holding company. bear in mind, that e-commerce which is essentially the top group, that the new ceo will be coming from is going to see and contribute more to the holding company after we see the imminent ipos as well as the fundraising exercise for clout, for the other businesses. i don't think there are any strategic changes from this reshuffle but it is a realignment of what is to come ahead. >> in terms of what you are seeing on alibaba's balance sheets, you and your team spend a lot of time going through it page by page. are you seeing and impact of weaker chinese growth or would you say that alibaba has proven critics wrong and in terms of the bottom

for a look at the key stocks she's watching >> shares of alibaba down on a leadership shuffle daniel zhanging down as chairman and ceo and replaced by joe tsai tsai seen as the more international facing executive and eddie wu can help drive ali pay. they are considered insiders and close to jack ma zhang isn't going far. the company did announce it would be spun off. >>> exxon and chevron, both about 2% leer or more right now on slower oil growth choin china is the second largest consumer that's why these two big names are down over 2% >>> last chance to weigh in on our twitter question will the s&p get above 500 this summer every shot is an opportunity. and success requires drive, resilience, - wow. - get it there. and sometimes luck. but what if luck had less to do with it? what if we had the tools to help us practice smarter, the insights to gain an edge, and the data to inform our strategy? taking our games from that... to this. yes sir. kpmg performance insights are transforming the game for the entire lpga tour. (sirens) [due at target in 5!] copy that. make a hard left down the alle

pressure after the internet giant announced its ceo and chairman, daniel zhang, will be stepping downthat's the focus of today's "techcheck" segment with deirdre bosa deirdre, what's behind this move >> this is more of a leadership shuffle than a major change or upheaval that does matter because it could signal that jack ma, founder of the company, is still calling the shots and a crackdown that essentially saw him go into hiding two veterans of the company and jack ma insiders, joe tsai and eddie wu tsai is the owner of the brooklyn nets so he's the more international-facing executive and eddie wu is more of a technologist, helping develop taobao and ali and the monetization behind them they will replace zhang. this comes after years of turmoil that has wiped out hundreds of billions of dollars of market value. it saw e-commerce competitor make inroads internationally and split alibaba into six units that process is ongoing now. jack ma was the face of alibaba for years who grew alibaba into the e-commerce delivery giant as he was about to bring another company public beijing authori

losses and it will rule the world in the end >>> alibaba says it is replacing the long-time ceo daniel zhangman of the company's ecommerce divisions. zhang will leave the chairman of the board. the unexpected departure comes after alibaba announced the six-way restructuring to boost growth at the individual divisions and people who watch closely say this signals that jack ma is the spiritual leader since joe tsai is being brought in. >>> and carlos ghosn is suing the former employer, nissan, over the alleged miss conduct a arrest in 2018 ghosn fled to lebanon in 2019 after being arrested in japan for financial crimes he continues to deny the charges. >> where does he sue them? in a japanese court? he is not allowed to go back into the country he cannot leave lebanon bought being extradited. >> he would sue. >> slander is stuff you say. libel is thing you print >> i would do both to cover. he did both. it was written and spoken. >> so he says. >> remember how he got out >> in a music case >> a bass. >> right snuck out. >> we talked about claustrophobia already >>> when we come back, secretary

connor ronan's penalty kick in the 69th minute daniel stopped 12 colorado shots and pitching a shutout for san jose. let's talk golf. 20 year old rose zhangaking her lpga debut this weekend. she is turning a lot of heads. she birdied the par five eighth hole after this approach shot leaves it two feet from the hole. par 314. now her tee shot would end up three feet from the hole she is cruising with birdie to go ten under. zhang has a two shot lead after three rounds at 11 under par. third round of the memorial golf tournament in dublin, ohio. this is jack nicklaus tournament. rory mcilroy and a three way tie at the top of the leaderboard. six under shots like this. rory chips in for birdie on the par three 12th five players are one stroke back that includes viktor hovland who birdied three of the last four holes here chipping in from the bunker on the par four 16th. cal's collin morikawa is three shots back at four under. all right, little check this out. on a saturday evening market like this fa cup has been played since 1871. today's match set a record for the quickest goal scored. i don't even know if we have enough time to show you t