emily: what makes xiaomi unique from samsung and apple? it is really interesting hybrid of things that you would see at apple, an absolute love for design and the culture of perfectionism. this is coming straight from our ceo. emily: is it a phone company, an electronic company, a software company? hugo: it is none of those. emily: is it an internet of things 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 about 50% of all of the new features and services 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 unique. emily: you sell phones. high quality phones at cost. but you make most of the money by selling services, right? hug

virtual reality is a major theme for big-cap tech players from 2016 from google to netflix and samsung and applejumping on the vr bandwagon in a big way and american professional sports leagues are look nothing get in on the action. to find out more our very own tim seymour picked up a virtual stick with the new york rangers in advance of this weekend's nhl all-star game. >> i'm tim seymour here in the new york rangers locker room, a place that's usually players only but thanks to virtual reality you can see what it's like to lace up like the pros here at msg. check it out. ♪ big game tonight. welcome to the garden. could this be a place where athletics and sports have changed by virtual reality? >> i think the likelihood of this being a training tool for everything in all sports, i definitely see it working in hockey, especially goalie. it's a fixed position. with what i experienced i felt like i was doing it again and that virtual reality feels real, then, yes, that's something that would be transferrable for any athlete. awesome. awesome. could have done a better job on that. >> that looked -

the samsung and apple supplier had rejected a similar offer last year that gave it a 70% premium. sources say a final bill has not been sealed and talks could still fall apart. they are ironing out details of the transaction but it would require u.s. government approval. may beption scandal looming in japan. the economy minister will he provide an explanation today about allegations of financial impropriety by a tabloid magazine. emphasizing he has not personally done anything that would get people pointing their fingers at him. says he and his secretary took money from an unnamed construction company in an alleged violation of a political funding law. the magazine says the payments amounted to $103,000, adding that there are no details in the political funding records. he was the point man in the tpp trade talks. all right website we are looking at this. it is a first, it is the quietest unveiling of an aircraft. ,he release of the new airbus if you blinked, you would have missed it. program, later in the more pain ahead for farmers. we will have an interview with the chief execut

. >>> samsung and apple are long-time rivals. the south korean electronics giant says it will make its latest smart watch, gear s2 compatible with apple's ios. samsung didn't say how the watch would be compatible. apple let's rivals create apps to work with its devices. back over to you. >> landon dowdy and wall street, thank you so much. >>> now we want to check in with meteorologist kari hall and mike, keeping tabs on the roadway. is this the strongest of the storms we're see? >> yes. this is the third one we've had this week and the strongest. more intense, lightning, heavy downpours and gusty winds to go along with that. o a lot of concerns this morning as you head out the door. let's take a live look at palo alto where people are moving slowly, but they are making it. if you do see water covering the road, standing water on the road, try not to drive over it because you just don't know how deep it is. that will be the concern, not the only flooding, but the possibility of trees toppling down and some lightning as this storm

at five years old, xiaomi rivals apple and samsung in the chinese smartphone market and is valued at $45 billion. but worldwide it is not a household name. former google executive hugo barra intends to change that. born and raised in brazil, he left a top job as the public face of android to take xiaomi global. joining me today on "studio 1.0," is xiaomi vice president of global operations, hugo barra. hugo: hi, how are you? emily: so great to have you here. hugo: my pleasure. emily: how is your chinese? hugo: coming along slowly. maybe next time, we can do it. emily: i will hold you to that. that is a big promise. hugo: two years from now, three years. it is a hard language. emily: i understand they call you tiger brother. how did you get that name? hugo: our ceo, a social media rockstar, superstar did a simple post and said hey guys, hugo is joining us from google, we have to give him a name. people went crazy.

that gives them a nearly 10% share of the market putting it in 3rd place behind samsung and apple. they kicked off the new year in las vegas with five new products releases including two smart watches, two phones and a tablet. now jay grey is in las vegas with more from 2016. what's the buzz about? >> good morning, well, always what's new and great in tvs. we expect to see that later with a tv that actually folds up if you can believe that. there's so many gadgets and gismos here it's like a kid in a candy store. 2 million or more square feet of exhibits. more than 170,000 people expected to take it all in. drones still a very big deal. this is from prodrone and it's the next level. it's a foldable, retractable take it where you want drones. they're all armed with the cameras now and they even have a 4k camera for this unit and you can get it all for 1,000 to 1500 bucks. so prices coming down. the gadgets and gismos getting better. i feel like i'm on the price is right. smartphone case, yes. extra power yes. need to charge it up, plug it in. this is called stacked and you can stack

and what's neat about apple, samsung and android is that it's safe and secure. it gives members another option to be able to use their cards but not have to worry about their name, their identity, their -- you know, all that personal information, and their card number being out there. it's a more secure way, uses a token where it's a code that the transaction is processed through but doesn't have any of your personal information. >> what can you pay on that? >> what can you pay? anything out and about. i ran into a situation recently where they said they were out to dinner and that they both realized her husband is like i and he is like do you have it? and she says i have the diaper bag, i don't have anything. so he was able to pay for dinner on his phone. >> how much embarrassment. the beauty is when it does make that -- instead of sending your card number it gives a one time code and it's done. so heaven forbid somebody were to get that code -- >> love it. the wallet is exciting. we're happy to offer that to our members. >> you can download that easily. >> yes

apple, samsung, and others have agreed to pay the tax import. genie: thank you so much for that look at the business news. it's time now for the press review. nicholas rushworth is here for a look at today's papers. storiescus on our top -- story, the tension between saudi arabia and iran. nicholas: this image in "the guardian" is not how you want to start out your year. it is a bleak picture. barack obama and david cameron are looking on forlornly, hands on their ears as the two giants of the middle east confront each other. saudi arabia has broken off ties with tehran over the execution of the shia clerics, a mere doll nimrr -- shia cleric, al-nimr. genie: what have the other papers said about this? khamenei ayatollah ali is urging others to react as what he describes a "crime." he insists that nimmer on liver al-nimr was not part of any crime. the white house and westerns rights groups -- western records are not in a place to give a full reaction. let's take a look at al jazeera, not the tv station. it is a paper which says the protesters who

at five years old, xiaomi rivals apple and samsung in the chinese smartphone market and is valued aton. but worldwide, it is still not a household name. former google executive hugo barra intends to change that. born and raised in brazil, he left a top job as the public face of android to take xiaomi global. joining me, xiaomi vice president of global operations, hugo barra. so great to have you here. hugo:

and lock system. not only are you seeing apple pay and samsung pay where you go your phone you're seeing person-to-person transactions. the younger generation, younger than me, do that almost exclusively. they owe each other money. if you and i went to dinner and you picked up the check i owe you my half of it but i pick up the check. >> why doesn't charlie pick up the check? >> it's on me. >> 40% of the transactions are still made in cash. do you see the day we won't do any transactions in cash? >> i feel it's coming. if you go to a store and you don't get a cash register. you have ipad and square reader and nobody uses cash. when i went into my local coffee shop and tried to pay something with a 10 dollar bill and the young people didn't know what to make of it. is this real money? yeah, it is. >> millennials are into this but is there a single downside? >> you don't have the ability to whip out your wallet and pay somebody in cash in a nontraceable way. you're leaving a record everywhere. there are a lot of young people, especially who don't have bank accounts still. they don't have access, maybe they

at switching between them, but if you have a family and somebody -- one person has a samsung and one person has an applewill recognize either and the correct thing comes up on the screen. to me it's just like a no brainer, john. >> all right. well, i guess that's better than what we've got today. even in the new car only really one phone connects well vila blue tooth, and one has to do the old-fashioned plug it in. >> up next, stocks once again giving away early gains. dow down 51 points. dow and s&p down more than 5% for the month of january. squawk alley will be right back. >> coming up, here's a question for you. why can't stocks bounce? they're trying to get in today with little success. we'll dig into that question. plus, gm raises its guidance. its dividend and the buyback. we'll ask activist investor harry wilson who once squared off with that company what he thinks now. jim levanthal lays out his portfolio for the trader of the year competition. john will have that and more in about 15. >> looking forward to it, scott. >> now let's take a look at some tech stoxz on the move. >> in a departure fr

the company says in the future, atm's will also let you use service like apple pay and samsung pay. they expect to start installing these new atm's later on this yyar. >>> and if you have eaten at wendys lately, check your bank statement. they are investigating reports of unusual activity on cards used at some of the restaurants. -`they just have not said yet which stores were affected. according to the -- the company launched an investigation. >>> gearing up to start growing pot, voters approved an ordnance during a special election yesterday to allow marijuana growing operations within town limits. according to the steamboat pilot, the measure passed with 52.4% of the vote. despite the ability to grow pot, retail and recreation and medical marijuana sales are still not allowed in the hayden. >>> before we get to mike and the weather, head over to my denver7 facebook page now and participate in this special olympics colorado polar plunge, the last two weeks of february. several denver7 reporters and producers will be joining me. along with lisa hidalgo and her morning show team. yo

. >>> and major tech companies are weighing in on the patent fight between apple and samsung. up next, the reason they are backing samsung. >>> good morning. the morning commute will be wet as you know. and as we look at the macarthur maze, a lot of standing water coming to the bay bridge. >>> urban and small stream flood advisories out. so watch out for popping on the roads and off ramps. we have heavy rain coming through, especially san francisco south. ♪ ♪ bend me shape me, any way you want me ♪ ♪ as long as you love me, it's alright ♪ ♪ bend me shape me, any way you want me ♪ shape the best sleep of your life. sleep number beds with sleepia technology adjust any way you want it the bed that moves you. only at a sleep number store. >>> welcome back to mornings on 2. it's 5:13 and get ready for what could be a pretty rough commute. it returned to the bay area a couple of hours ago. here's a look at the radar. on the left side of the screen, quite a bit of yellow and orange and the rest is green. the right side, traffic is slow and wet. and steve will have the full forecast c

it will be the same system that allows apple pay and samsung pay to operate. the bank says that doesn't mean customers should get rid of their cards. it will simply be an added convenience. >> i would be concerned about the security of the cell phone. i'm more confident about putting a card in and pulling it out. >> yeah. >> take a little while to get used to it. it is handy. you always have your phone with you. >> i have apple pay and it uses my finger print. >> do you use apple pay? there is only one store that i go to. [ inaudible ] . >> it is convenient. now, we were talking about fitness. if you want it find our fitness and do it outside, take a look at this. it all depends on whether you can do this. traffic slowed to a crawl on oahu for what forecasters are calling the biggest swell of the season. almost two dozen surfers paddled out to brave the 25- foot waves. waves up to 45 feet are expected through the day today. can you imagine? this is one of the most famous big wave surfing spots in the world. so pretty. . >> i am not that brave. fun to watch. le

has been good to them in average selling prices but i'm saying the popular wisdom, with samsung and big phones, applee pricing and margin or look how they are cheaply selling phones and in trouble now. you make the blackberry comparison, but the corps thesis has been sustained. assuming that continues because that seems the safer assumption since the goliaths supposed to slay them up to this point haven't. if they do continue to grow slowly and add this service and software and accessories revenue, then what's the value of that company? >> but this is what i'm telling you, i agree with that assumption because you can't have unit growth and these asps because the market is slowing down. you can say this is great because they kept the asps up but the unit growth is coming in low. you have to pick. the other thing which you're for getting on margins, right now component prices for dram, disk drive, chips, you name it, have been absolutely plummeting. they've been continue to keep t margins high as the components underneath it have been dropping rapidly. that's probably running out of a lot of room comin

city leaders tell us it will be used for research and development, and this could be the site of the new apple products ideas. samsung has opened a new campus in north san jose, and google moved into the area, and this new apple project remains, and this will increase the tax revenues.>>> the militia member is dead, and another was wounded in the gunfight between the government protesters and fbi. >> a month-long standoff that is still happening at the wildlife refuge in eastern oregon.>> we are covering the story, and the conference station -- confrontation started over a dispute on land.>> reporter: a lot happening on social media about what has happened. one person killed, one injured, and eight people arrested, all part of the group that is occupying this wildlife refuge in oregon for a month. this 55-year-old lavoy finicum was the unofficial spokesperson for the "citizens for constitutional freedom." there is conflicting information on how been a come -- lavoy finicum was killed. they were on their way to meet some members of the community in a nearby town, and they were stopped by law enforcement, and they were

we heard this from apple and now samsung. >> i don't think anyone is surprised. it is particularly optimistic. fourth-quarter net profit down 40%. $2.9 billion. expectations were about $4.5 billion. --s is nonsense presently unsurprisingly driven by the smartphone division. just an incredible decline. 31% decline in operating profit across the division. not only other not selling of their high-end models, those new galaxy models, but all of this is trickling down. --has the benefit of the it's also below in china manufacturer stories. have criticized samsung for having a true product. range focus on the high end. -- focus on the high end. ♪ ♪ you are watching "bloomberg best." aig unveiled a new strategic plan this week. it will sell its broker-dealer network, conduct an initial public offering of its insurance unit, can aggressively cut costs while returning $25 billion to shareholders in the next two years. will this approach stave off interference from activist investor carl icahn? i asked the ceo about that plan. morningwe made up this is what we are going to

apple and samsung, two biggest in the world, things are slowing down. companies in china that are selling cell phones are actually going outside of china to sell them. we know that's slowing down. airlines, traffic may be slowing down. but look where the growth has come. it's come from the emerging markets, from boeing and companies like that. that as we know the emerging markets will have a tough year. that will likely slow. the last one which i think a lot of people are not paying attention to is the auto peak. we saw ford today. they're selling trucks like they're going out of style. the other part of the business isn't so great. i listened today to mike jackson on the auto nation call and he said the next six months to a year are going to be pretty tough. the auto companies have potentially too much inventory coming out, and his thoughts are, maybe not a peak in auto sales, but a plateau at these levels. >> what's the extrapolation of peak peak? >> peak peak means things are turning over. the reason -- >> in the economy. >> the reason why i say auto

apple weakness once again and samsung weakness. the bg group is up once again by 1.9%. vw is up.omeere is they can return. anna: i am not worried about jon's spending power. let's get an update on what has been happening in the asian markets. nejra: the asian markets have quite the turnaround. shanghai changed directions a number of times in the sessions. at the close of the day, it was up by 2%. still, a nice recovery rally after the difficult week. shares are up as well. investors are trying to find their feet when it comes to how confident they are about the rebalancing in the economy. of 1%.0 is up 4/10 we also saw significant losses for a fifth straight session with the s&p. sydney stocks are dragged it down on the back of that oil story. energy majors are decline. the focus was on china, really. this is how we ended up. shanghai is sitting under the level. we had a dip earlier on in the session, but that continued decline prompts these reports. also, intervention when it comes to the fx market. down by 10%. next week, we're looking ahead to the chinese gdp. we should be bra

and as john segregated, even stationary ecommerce payments are very important to charities. i don't use apple pay or samsung and the reason is because i don't have a new enough phone to make an apple pay. and i don't happen to be carrying samsung. so the committee asked us to look at four questions. and in the interest of time, the first was whether mobile payments were disrupting other forms of payments. and i personally believe the answer is not yet. and i'm not certain when that moment will come when that will happen. but i think that it is a question of a level of adoption. and i'm not positive give mobile payments will rely on credit, debit and other traditional sources of the funds for clearing settlements, the degree to which mobile payments will disrupt in the way that we typically use the term. i would prefer to say that mobile payments can augment. the second question that the committee asked me to discuss was the security and what the technologies are. and while i agree that there have been some significant upturns in security, i like multi-factor authorization, which we do not yet have with plas

atms will also let you use apple pay and samsung pay. another change is how the money comes out. $20 bills which is frustrating. the new atms will allow you to get new bills like fives and tens. bmo bank has also been trying it out since last year. let's be honest, it's only a matter of time that banks new this technology. as for chase, they expect to install the new atms later this year. >> ann, thank you. >>> what does this mean to the end of bank tellers? well, the company says no. but their role is changing. they will now be there to help mostly with specialized issues and help you try to figure out the new machines. >>> well, right now your chance to win tickets to the daytona international prize pack, and yes that includes to tickets to four different rates, including the daytona 500, this is how it works. listen carefully. you have to do it on a computer, not from your cell phone. go to our facebook page. once you go there, you will click on that. it will show you the actual way to enter. you put all of your information into there

a mobile app.the company says in the future a-t-m's will also let you use services like "apple pay" and "samsung pay." another big change is how your money comes out.most a-t-ms will only give you 20-dollar bills which can be frustrating. chase says these new a-t-m different amounts like 5's and 10's.chase isn't the first bank to try this... but definitely the biggest."b-m-o harris bank" has also been testing out card-less banking at some of its a-t-ms since last year.and let's be honest...it's only a matter of time before banks nationwide try this technology.anne on cam as for chase...they expect to start installing the new a-t-ms later this year.for the now... i'm anne mcnamara. so does this mean the end of bank tellers?the company says no... but their role is changing.they'll now be there to help mostly with specialized issues you have... and help you figure out the new machines. here's something that should make you smile, cincinnati ... 'groupon' says the queen city is the eighth friendliest city in the country ... based on how great our customer service is. is.the money saving site says it

samsung blamed chip prices as profits came up shy. zeb, tell us about that? >> the company facing intense competition from rivals in the smartphone space, but also in the chip space. it supplies apple. as apple and others face a bit of dribble. samsung's chip division under pressure as well. this fourth quarter earnings guidance, preliminary operating profit came in at $5.1 billion versus a $5.5 billion estimate, weaker than expected and capping a difficult year for the world's largest smartphone maker. on the year, the stock down about 5%, third annual decline, and $8 billion of market value lost over the cost of the last year. they replaced the smartphone chief. the new leader is the former head of the mobile and payment platform division, the security and payment platform, samsung pay. that tells you where they are headed. they said yesterday in a speech that it needs for focus more on software and the platforms that will deliver the customers and the customer experience. very interested to see how this company is navigating a difficult environment. >> as you have alluded to, it is mucher than that. >> absolutely. the smartphone the biggest piece of the company, but it also is very active in

samsung will be damaged by a nuclear war. as out landish and tragic as i think that would be, if we were to imagine our worst fears, you news for samsung competitor apple yet apple won't stop going lower despite the fact that their customers spent $1.1 billion on apps and app purchases ending january 3rd. i'm sure that many people watch jessica jones on netflixs and how about the fact that that was the biggest day in history? shattered the record for single day sales. when was that? how about last christmas. the only thing that made sense to me was that it's a tiny rally in craft heinz because they make velveeta cheese which i am sure will be just as fresh as the day it was manufactured even if you're stuck in your fall out shelter for decades in the wake of an actual detonation of a hydrogen bomb. if you want more evidence that we're too negative, macy's preannounced a not so hot earnings number per share after the bell. what did the stock do? it went down $2 because that's what people do and then it yeah. it's above where it went out. i know that none of these positives matter because we're in crazy town. i know that no one believes anything good can

and effective strategy. >>> fitbit may have changed the game for apple and samsung.what's new in the line of fitness trackers. >>> we are checking wall street. markets are down across the board. you see here the dow jones losing almost one full percent this morning. also just checked apple stocks. down three-quarters of one% right now. it had been down as much as 2.5% after reports that apple could cut production of the latest iphone models by 30% over the next three months. the reports are based on information from some of apple's asian suppliers. say they inventories of the iphone 6s and 6s plus have piled up since september. >>> fitbit has a first smartwatch. they call it fitbit blaze. the company says besides the fact it looks great, the smartwatch has a deep focus on tracking fitness activities with all the same features of other fitbit devices. the blaze also integrates with an app and gives users instructions on how to finish up various workouts. it will be released in march. it will cost about 200 bucks. they are taking preorders right now. >>> kia says it's

can samsung really face down the increasing competition coming from the likes of apple and those chinese smartphone makers? we will have a look at that next. later on in the program, more ability.arket ♪ >> samsung missed estimates in its fourth quarter. demand is down for smart phones, and chip prices under pressure. mark, great to see you. we have got this miss. burr on the other hand, it is not a huge surprise, is it? >> not a huge surprise. the company guided pretty strongly over the last month or so that earnings were going to be a miss. i think this number was roughly in line with recent expectations. we don't really have a real detailed break down by the company yet, but we think semiconductorors, hand set and display a little bit weaker than we had previously expected partly due to demand being a little bit weaker, and commodity prices being weaker as well. >> to what extent is this down to the global picture rather than being company specific? >> for the semis and display, hat is not company specific. in fact, for semiconductorors, the company has done well this year. they have

companies show off the new product, and you will see it with the carmakers as a way to show off the stuff, but the other company, the samsungs of the world, and appleher to show off the next big generation tech, because why compete with the thousands of companies there when you can have an event, and show it off in your own the terms and share it with the audience directly. so it is different, and inis ste of one big event every year, it is now that we have dozens and dozens of small events that the companies do on their own terms >> and technology is so good that we as consumers have experience of the trade show, because the technology is so good. we get virtual experience, and socio, and all of this stuff. >> and it is obsoleted itself. >> thank you, christine warren, and senior correspondent at "mashable" and my producers will cut me off, because i could talk to you all day, which they are doing. >> and now, el chapo is being extradited to the united states, but why didn't mexico send him here before he managed to escape the first time? ah... (boy) i'm here! i'm here! (cop) too late. i was gone for five minutes! ugh! move it. you're killing me.

is what i saw, i am going to read the name of the company and apple, stalled growth, caterpillar stuck? mud, bow i think, weak forecast. samsungng slow. i found two companies that were positive, facebook, of course, we talked about and bionjen had positive earnings, maybe amazon will swing the bell. but right now, i'm just seeing -- i don't even see -- we had bad earnings but the rest of the year looks great. that's my concern. >> lauren: gary we are in an earning's recession. what did the fed do with all of this? do you think they pressed the pause button, do you think they back off from the central bank? >> i don't see one more hike. they pretty much in my opinion, i thought it was pretty clear that they were saying, wait a second the economy is slowing, we didn't expect that, any kind of thought of a march increase is off the table. i don't think -- if things dramatically improves, of course, then everything changes. i don't see that. i don't think the fed sees that. i think we go the whole year with that one increase we had. >> nicole: that was it? >> gary: that will be for 2016. >> nicole: fox news contributor. people wil

. >> we heard it from apple, and now we are hearing it from samsung. think anyone is surprised. profit downer net 40%. billion gas undershot that expectation. -- undershoton that expectation. an incredible decline -- 31% across that division. at only are they not selling -- all of this is trickling down. it is also the low and china manufacturing story. samsung have criticized for having to brought a product range. there is too much going on. as a result, it is not winning on either end across the spectrum. ♪ ♪ betty: you are watching "bloomberg best." i am betty liu. aig and building a strategic planned. it will sell its broker dealer network. and more aggressively cut costs while returning $25 billion to shareholders in the next two years. will this approach stave off interference from carl icahn? i asked peter hancock about the plan. >> what we laid out this morning -- over the next two years to make this company more focused, more profitable and return $25 billion to shareholders. that is speaking to all of our shareholders, policyholders, regulato

apple users are in a prove-it-to-me mode. we have seen so many improvements and upgrades. samsung has already done wireless charging so we will have to wait and see what they come up with. >> it is highlighting the issue of android users saying we had that. what is special apple is getting it but they have great market marketing. have they hit a ceiling where they cannot do better? >> you are asking a good question. and this is a question apple is asking which is why the share prices are struggling. people are wondering what else can you get? can you get a new product to market that will have the kinds of excitement around it that we have seen in the past. lots of people are critical of the company right now. >> this product isn't scheduled to come out until september? >> yeah, we are talking about the rumors of a product not on the market yet. it is a lot of rumor. people watch this company very closely. >> we will have to wait and see. thank you, geri, appreciate it. securi >>> it is what people feared but didn't want to believe. marion county investigators believe remains they