it doesn't take into account apple, for example, or hewlett-packard.ditional about retailers, walmart is the second-largest. cory: to that, what do we know about their traditional business? is that going the way of the other retailers that had a tough fourth-quarter? shelly: one thing going for them is this confluence of physical and online, the online grocery. that is when someone orders online and they pick the groceries up in-store. you are starting to see walmart start to benefit from brick-and-mortar, which is something they have always said is an asset compared to amazon. no matter how you cutt, they are still much smaller than amazon. they are taking e-commerce much more seriously. cory: i'm sure it is the responsible thing to help investors understand the business. they need to tell us what happened with jet.com is that of the showing the revenues. shelly: we still don't know what jet.com was doing. there were only a year or so out of the gate. we don't really know the exact numbers but we know they weren't that big. what is more important than

retailer is kind of up for discussion because that does not take into account apple, for example, or hewlett-packard you think about traditional retailers, walmart is the second-largest. corey: and to that, what do we know about their traditional is this and is that going the way of other retailers that had a tough quarter? shelly: one thing that is going for them is the online grocery. that is included in the u.s. sales. online, they and a picking up in-store and walmart does include that in their online sales. your strength is -- you are starting to see walmart benefit from >> and mortar which they always said was an asset to them compared to amazon. they are still much smaller than amazon. it looks like they are starting to take e-commerce much more seriously. corey: i am sure they did the responsible thing and broke out separately organic sales of walmart.com and told us what jet.com is is a post to buying those jet revenues. shelly: we do not know what jet was doing. corey: shocker. the't really know exact numbers but we know they were not that big. what is more important for them than jet sale

or god for bid hewlett-packard. all of these companies, go back to their old competitors.owhere near as successful. we were on a different world of we were on a different world of technology. every company doesn't have to build their own service in the back room. they don't have to have the computing infrastructure. that was the great stuff of ibm and dell. those businesses, in a world where google is starting to big a big business providing computer power in the cloud, which would have hurt them more have a not been better prepared for this. i think that is why you don't see them freaking out on these results. >> that reason acquisition of at dynamics. >> we were pleased to provide customers with deep analytics across the data center, the network and applications. customers are seeing access through intelligent networks. caroline: talk to us about the third quarter. we still think shares are up two percentage points. when do we see the real dividend stops payout? >> dividends increase for this company. we think it is the stewardship, pretty good. the is you a lot of stock

tax reform specifically border tax adjustment and whether or not that is going to be something that becomes a reality. where does hewlett-packardnterprises stand on that? would that be good or bad for your company? >> we're very concerned about the border adjustment tax or what people call b.a.t. the border adjustment tax is not good for companies that have a relatively low margin with a supply chain that is outside the united states. so we could certainly assemble in the united states. we do in chippewa falls for sgi, we do in houston to some degree for our enterprise group. but the entire supply chain, everything from memory, from mother boards, everything that is in our products comes from overseas. by the way, that supply chain has taken 30 years to set up. so when all those components come in and are taxed, it's not going to be good for companies that have a relatively low margin and a big offshore supply chain. and you mentioned the retailers. so there's a number of us that are pretty concerned about this. we're working closely with, you know, the congress and their staffs to make sure that our point of view here is well

surges gaps up for grabs -- or gaps down -- we could see a big move with our glaze reporting on the 23rd. hewlett-packard enterprises reporting as well. back to you. beijingtill ahead, increasing the question on the north korean regime, but what does it really mean for kim jong un? betty: it is a global selloff about to begin again? this is bloomberg. ♪ betty: i'm betty liu in new york. heidi: and i'm haidi lun in sydney. you are watching daybreak australia. let's get check of the business flash headlines. the drew doughty national oil companies have been awarded a stake in return for a $1.8 billion planning bonus. koreanin japanese and companies. betty: civic resources rebounded with income coming in at 46 million u.s. dollars. thecommodities firm warned outlook for 2017 contained an element of uncertainty and a lackluster commodities market continues to weigh on the unit. spacex has launched its month,rocket in as many delivering 500,000 pounds of supplies to the international space station. was a successoff and the falcon nine rocket landed without any problems after launching the dragon spacecraft ou

or out of the pc and was totally confused. steve said, wait a minute. he stopped the person making fun of the troubles at hewlett-packard. bill hewlett and me my first job. those bozos screwed it up for hewlett and packard. i don't want that to happen at apple. and he tried deeply to fight off the bozo is motion so there was only a great team of a-players. a simple, simple thing that thee stands for, which is intersection of great activity -- creativity and engineering and technology. he said, that's what disney did. that's what a lot of people have done. there are companies that last. is almost 101 years old. i think apple has imbued its genetic code this desire to d rive great design and artistic creativity with great engineering and technology. and it will be at that intersection, and the people there now are capable of keeping it at the intersection. 10 years from now, 25 years from now -- disney, of sundown. but you still know what disney stands for and it doing fine right now after a couple of rough patches since walt disney died. i would to wager -- wager that a generation from now, even a century from now, apple

or potentially the rest of the european banks being underestimated. >> we'll have to wait and see on that. >>> more stocks to watch, hewlett-packard saying revenues rosefrom a year earlier. shares up 2.5%. shares of l brands taking a hit after first quarter and 2017 guidance that fell short of expectations. the parent company of victoria secret saying comparative sales are likely to fall 20% this month. down 13%. >>> jack in the box reporting a first quarter profit and revenue miss. the results due in part to lower than expected sales and margins of the qudoba franchise. did i say that right? >> qudoba. you got it. a chipotle competitor. >>> square posting better than expected fourth quarter results. the company's strong results thanks to strong sales growth in all of its products and efforts to offer new services. here is square's cfo, susan fryar on the call last night. >> we always had muscle in how to deal with regulated ors in ay that's good, and i feel it's a competitive advantage for us. >> not on the call, but in our studio. square shares are surging, up about 9.5% in the premarket. >>> boston beer projecting disappointing results for 2017. th