howard schultz is here along with his family. l sorts of chinese business luminaries have been with us all morning. one of whom is jack ma of alibaba. we sat down with him and hourld schultz, the other now, i began the conversation by asking him and howard why so many american companies who come here it fails all too often, but at least for starbucks right now, they've made it work. >> we've been here 18 years, and many people don't realize the first nine years we were not very successful. there was a lot of pressure on us early on to kind of close the tend e tent and say it's not going to work. i think we had to have patience, and we had to have a deep commitment to being locally relevant and understanding the consumer i don't want to embarrass jack, but you also have to have friends here who can help you kind of navigate through some of the issues that are difficult to understand, and, you know, jack and i have known each other. i said this the other day. i knew jack before he was jack i i think the understanding that there are

we'll talk with howard schultz from starbucks, but also jack ma of alibaba a big conversation about thesumer and the relationship between u.s. companies and china. then we will also try to introduce you to the most influential investor in china. the warren buffett of china from sequoia capital. we'll talk with joshua cooper a putting into perspective what's happening on the ground. and we'll introduce you to the ceo of starbucks china, melinda wong we have a lot coming up today. we will be seeing you guys in just a bit when "squawk box" begins for now, i will send it back to you. >> thank you very much, andrew it will be a great show with a lot of focus in china. >>> amazon has officially launched in australia. retail stocks rose in australian trading as analysts took note of uncompetitive prices for the prices on the amazon platform. this is the business being done from amazon in australia with its distributions that are located in the country business was done there belie previously >> it's interesting this has resulted in a relatively poor launch for amazon, but bear in mind retail s

andrew ross sorkin was there to catch up with starbucks' executive chairman howard schultz about thehallenges of doing business in china. >>> also a little bit later shares of home builder toll brothers plummeting today on the back of an earnings miss and the tax bill, perhaps, could also present even more concerns for the whole housing sector we'll dig into the tax reform's impact on real estate still ahead. what is the power of pacific? it's life insurance and retirement solutions to help you reach your goals. it's having the confidence to create the future that's most meaningful to you. it's protection for generations of families, and 150 years of strength and stability. and when you're able to harness all of that, that's the power of pacific. ask a financial advisor about pacific life. hey. pass please. i'm here to fix the elevator. nothing's wrong with the elevator. right. but you want to fix it. right. so who sent you? new guy. what new guy? watson. my analysis of sensor and maintenance data indicates elevator 3 will malfunction in 2 days. there you go. you still need a pass. l

we had an opportunity to tour this place with howard schultz they have also partnered with alibaba andere, and we had a conversation with both of them one of the conversations and perhaps most interesting comments came from jack mao when i asked him about amazon right here doing business in china. here's what he had to say. >> they have been here for almost 15, 20 years. but you did not see them here anywhere >> because >> because i don't think they do properly here. it's the markets you need. maybe ten years, amazon becomes big again. good people, good services and i think we're working together online. >> jack ma there, clearly taking a shot at jeff bezos's amazon. i also asked him specifically about the battle, and it's remarkable when you're on the ground to see it here between alipay, and tencent's wechat wechat had about 8% of the financial payment market here, just about a year ago. it's now up to 37% meanwhile, alipay has come down. i asked what he's going to do about that >> why should i stop them? i mean, first, if there is only one alipay, they could not grow that fast. when

>> that was starbucks chairman howard schultz david davis is inside the british parliament and said there is no overall impact assessment, just sectoral analysis leading into brexit negotiations he says major contingency planning operation is under way for a no deal brexit that follows the latest breakdown in talks between theresa may and jean-claude juncker. that's it for our show i'm willem marx. "worldwide exchange" is up next in the u.s can make all the difference. e it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock. your bbut as you get older,ing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to

starbucks teaming up with alibaba to ramp up its presence in china here's what executive chairman howard schultz to say all the way from shanghai on "squawk. >> we've been here 18 years. and many people don't realize for the first nine years we were not very successful. so there was a lot of pressure on us early on to kind of close the tent and say it's not benefit to work. but i think we had to have patience and we had to have a deep commitment to being locally relevant and understanding i don't want to embarrasses j j, but you also have to have friend here >> starbucks' china ceo says they're adding one store in china approximately every 15 hours, how staggering is that? although it hasn't helped the stock price. >> it's fine, starbucks is up 10% off the lows the u.s. has grown 3%, china is growing 8% the message here is that starbucks may in fact be one of the most successful u.s. multinationals that really are inculcating themselves into the chinese culture with their partners and their customers they've got alibaba, location and mobility software allowing them to know their customer when th

. >> you're asking the question -- >> i know some of them like howard schultz will like this tax plan>> howard schultz did not attend >> he wants to be president of venezuela probably let me read you one other thing here >> oh, no. i'm looking at what you're looking at horoscope? >> i need to know what to do here my horoscope says it is a great day for me as a capricorn i should make plans. and on drudge it says this is the worst day of the year. make sure you don't make any plans long-term. >> right >> all this stuff you told me i need to do for this tax thing, set up a crown trust, second to die, a reverse -- some way of setting up the llc, but put it in my wife's name. >> keep your head down today >> i don't want to make those plans now. prepay -- >> it's the shortest day of the year, also my brother's birthday happy birthday, rob. >> this is not a good day for me to start the tax planning. >> you're taking the advice very well >> we have to move on. oh, no >> yes >> we finished this, didn't we you have more? >> i wanted to add one thing we got an e-mail, which i will just say from

. >> or shultz >> howard schultz.he entitlements under howard schultz would be ten times gdp >> he's got to be the most noble, nice, moral -- >> let me ask you a separate question can i ask you a separate question a lot of virtue. i wish i could be him. but i can't. >> he has a lot of virtue. >> enough for all of us. >> we're all hopped up on the coffee let me ask you separately, if you are iger, does any calculus in your mind about this transaction go to 2020 if in the back of your mind, even just -- even if you marginally wanted to run for president, there's been enough marginal conversations about maybe -- >> does it enter his mind? do you say, look, he kind of want to do this deal if i do this deal, i can't do the other thing. >> why confine it to iger? if kanye -- le cutwill he cut a album there 2020 does the rock put off another movie? >> i'm saying this locks you down rupert will lock you down. >> all these viable candidates >> crazier, i had somebody else -- >> not just anybody can become president. >> somebod

howard schultz says he is good friends with jack ma, so there might be something brewing between starbucksd: pun intended. [laughter] that's almost it for us on "bloomberg daybreak: asia." let's check on what's coming up with the markets. rishaad: indonesian president will be talking to us in the indonesian capital and jakarta. we will see what he says about the economy, projects, and the infrastructure. mb will also be talking to ci group. current climate, where are we with the equity cycle? mark franklin will be joining us in about an hour to talk about that, brexit, and more. that is on the way. ♪ >> a declines for the asia-pacific and samsung heavy as shares fall by a record news of the share sale. traders weighing on taxes and trump. congress gets to work on a compromise deal while the russia inquiry want to bank detail. and is america losing it's a lower? it is becoming less welcoming. we have an exclusive interview. this is bloomberg markets. ♪

starbucks' chairman howard schultz, pearl jam's eddie vedder, major league outfielder ichiro suzuki broughtim their dogs. >> you know one of his phrases was, "we trained everybody in seattle from nordstrom to nirvana," but he was much more than a dog trainer to the stars. >> reporter: a longtime employee. >> come on, sampson. he trained everyone, you know? it didn't matter to him who they were. it was about the person and the dog and the relationship between the person and the dog, not who they were. stormy, come. >> reporter: this woman liked him so much as a client, she went to work for him. >> he would connect with you. he'd find something that he could talk to you about, and then he'd help you train your dog. >> reporter: and the setting for mark's dog whispering business? incomparable. >> oh, it's beautiful. it's a wonderful place. >> reporter: kiket island is what it's called. an 84-acre teardrop of primeval forest and meadows and beaches plunked a few feet offshore, a 90-minute commute north of seattle. >> the dogs could go swimming in the water there. there's plenty of trail walks.

he'll be sitting down with ceo kevin johnson and executive chairman howard schultz to talk about thelans in china and elsewhere don't miss it. >>> investing in china also rose in popularity last month alibaba and ten cents were big buys in november for td ameritrade customers two vulnerable american brands also generated some investor buying we will reveal those companies next. >>> crossover vehicles have become the hottest automotive sales property now everyone is getting into the act including one of the biggest s me the in luxury cars. n those details are coming up. you always pay your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance. when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionabl

how do you navigate that >> it's a tough one, as howard schultz has had fitful exits before, like michael who came back in, and we're lucky to he did, did a great job coming back in, or ralph lauren, who left and not two years later, he came back in and howard himself, 17 years ago, stepped out and then what happened howard then pulled the rug out from somebody, came back in, and then five years later he did the same thing now he seems ready he realizes that with the jim donald succession before --? now he seems ready what does that mean? >> he's interested in the roasteries and other projects and he is serious, you remember at andrew ross sorkin's "new york times" event, his interview there seemed genuinely interested in running for office especially since he's not running against bob iger right now. so what you look at with the exception of ford, all these guys, i realize i'm talking to a group of distinguished gen xers and i'm representing the tail end of the baby boom, this is a tailwind of leadership every one of these others with the except of jim hackett who is very good, best thin

is 30,000 square feet store championed by the founder and chairman howard schultz. global news 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries around the world. i'm sebastian salek and this is bloomberg. mark: brexit negotiations have hit another stumbling block and talks an unraveled following a talk with foster. negotiations took an apparent turn after a phone call. for more, nejra cehic joins us from brussels, as well as peter flanagan, our reporter in dublin. nejra, just explain how this all went down yesterday. well this lunch with theresa may and jean-claude ju ncker, there was a lot of anticipation ahead of it. some said that michel barnier had told them a breakthrough was imminent. the pound rose on that. at the meeting got underway, there was a point that theresa may actually called a positive the lunch and stepped out to call the d.u.p.'s arlene foster. the du.u.p. props up her government. they did not take any questions. they said, we could not reach a complete agreement today. basically, no breakthrough. they did not g

the country interesting, especially when you look at backers big names jeff bezos megawhitman howard schultzlaces like silicon valley, and new york city, boston right now the vast majority venture capital guess to those cities 75% went to three states, california, new york and massachusetts, so the other 47 states, fight over 25%, yet there is great entrepreneurs all over current building great companies not a lot of venture capital attention rise of the -- launch about 4 years oak now accelerating we launched last week new fund we got 3 dozen americas more iconic respected entrepreneurs investors, executives families joining us saying they believe in the idea of -- greet entrepreneurs everywhere great investment opportunities i hope will capitalize focus on mil of country start you understand result in great breakout sections in communities, also in the process create jobs, and more hope in those communities, a lot of people wake up in the morning, feeling like anxious about the future not sure what role of technology is going to be in their family and community want to make sure, by backin

want iger to be president so he's tying him up opening the way, rupert's opening the way for howard schultz virtue. i'd rather have kanye. >> where did you manage to take this to politics unbelievable. >> we talked about it earlier. that rupert wouldn't want iger. >> can we go back to a question you were asking, andrew. >> believe it or not, that was not joe making the jump. >> someone else made it earlier. >> whether tech companies should jump in. i'll ask david faber what is the complex relationship between apple and disney given both the ownerships -- >> well, look to there was speculation one day maybe they would come together. >> what is the ownership complexity now. >> you probably have a good idea. >> there isn't much. >> a couple pieces, largest individual shareholder in disney is laurene jobs for whatever that is worth but beyond sort of those tangential connections you have tim cook obviously on the board of disney so there are things -- but i don't know is that something you -- >> no, you're right. but the big issue here is that bob iger, as good as he is as a manager, has been t

what you're seeing is disruption in the political process and probably the god of starbucks, howard schultzpaper things look so good for democrats, but again only one in three young people believe the democratic party cares about them. >> were you able to pick up in all of these surveys, the combined surveys that you've done, are there one or two nagging fears that millenials live with? they might be different from the fears that we older people live with. >> i think the overall fear is tied, mike, to kind of the feeling that there's just not equal chance for everyone to work hard. essentially getting back to the american dream. i don't want to use the term political rigging because that's a little political almost partisan term now, but the idea of fairness is all young people are looking for. if they do well in school, they want to have an opportunity to get a job in the city or town they care about and work through that process. inequality is something that connects democrats as well as republicans. >> your point about millenials being more independent, i think would extend -- i'm not a