no one is using facebook messenger in lieu of whatsapp. matt: i used whatsapp all the time before zuckerberg bought it and then he made messenger a second app on the phone and now i use messenger with all my european friends and so does everyone house and we do not use whatsapp anymore. >> over eight hudgins million users and what they are saying is listen, we need to build these environments that are one billion plus users, not the 300 million that twitter has, but one billion plus. that is when advertisers really start to pay attention. that is where perhaps you could try some e-commerce. there is a whole host of revenue opportunities they see. it seems to mark zuckerberg the billion users number is a big number. if you look just at the core facebook business, 39% revenue growth, he is probably onto something. stephanie: isn't volume in terms of users sort of his secret sauce question mark whatever facebook or twitter does, even if i do not like it, i stay with it. our member when i was forced into using messenger, i denied it until i wo

whatsapp is growing. a great product that's fast, that's useful and that's fun. and we think we're really doing that with both messenger and whatsapp. we think there's a great opportunity. but the focus today is continuing to drive a great user experience. >> can you give us an update on when you expect to start monetizing that opportunity for messenger and whatsapp? >> well, we're already experimenting o inging on the messenger side with looking at things. that's going to take time. the focus really there is again, let's continue to make that a great experience for users. let's continue to drive that. and then let's build the business over time. we're going to be patient with that. we've seen great success with building the business around facebook. we hope to replicate that. we're focused today on driving that user experience and also experimenting on the business front. >> you know, david, there are people already saying that 2016 may not just be kind of the uber candidacy when everybody's jockeying fo

will whatsapp be part of the internet.org suite as well? it is going to be different on a country-by-country basis. right? so just like the u.s. has 911 that has certain things in it, in different countries, most of them have an equivalent of 911 that has different things. so for some, it is mostly just about health and crime. some have more things in it than the u.s. does. internet.org is kind of going to be like that, too. in each country, the governments and local operators are going to need to figure out what services they want to include. emily: google has android. mark: mm-hmm. emily: how do you overcome not having the hardware? not having android? mark: our strategy is just to build things that people really want to use. right? and, facebook is the most-used app. whatsapp and messenger and instagram are some of the next most-used apps that are out and -- that are out there. so, at some level i think that as long as we are building services that people really want to use and that help people's lives, then it is not as big of a deal. i

instagram,whatsapp, he wants to do it correctly. give him time, he says.e's going to focus first on expanding the business. 800 million already on whatsapp. 300 million on instagram. twitter has 300 million for its entire platform. we are going to have to say, look, don't just focus on the u.s. and europe anymore. most of your users are internationally speaking. manus: well done, caroline. francine: let's talk again to the eni chief executive, claudio descalzi. we had a technical problem. we talked a little bit about your earnings. you were telling us you started the process of becoming leaner six months ago. maybe that is something a lot of oil companies need to go through. i want to ask you about one of the biggest concerns. saipan. how do you plan to turn that around? mr. descalzi: i think the new management at saipan is doing very well. they started with the right steps, with a very strong cost efficiency. impressive very presentation. then we wait on september when they are asked to present the business plan. i think they started in the right way. to

whatsapp. -- whatsapp -- what's up, doc? scarlet things he won an oscar as well. brenda: this bugs bunny was not the original. in 1940, starting around 1938. it was voiced by mel blanc. warped over the years. he has gotten longer. he has battled elmer flooded, he has a love-hate relationship with daffy duck. sometimes they are friends, sometimes they are enemies. brenda: my favorite one was opera.. what's opera doc? scoping the next person may be lebron james. he teamed up with one of brothers to work on television, film, and original digital content. -- on james did filek warner bros. trademarks for space jam and there is reports that the studio is working on a new spring -- on a new screenplay. space jam is the biggest basketball movie of all time. 232 -- $230carlet: million globally. -- what to what this second-place? white men can't jump. space jam. michael jordan's acting chops are cemented in space jam. brenda: always a pleasure. lots more coming up on the bloomberg market day. what is going down with gold. the price of gold at a five year low. mom has alway

you mention whatsapp, instagram. people curious about their plans for oculus.d mention vr on the call. >> there's always a richer way that people want to share and consume thoughts and ideas and i think that immersive, 3-d content is the obviously next thing after video. >> are people appreciating the possibilities here? or overestimating them? >> i've spent a lot of time recently testing out these new vr headsets and they're kind of amazing. i think people are starting to realize it's not just about video games and zuckerberg contexturalizes vr, it's about education and entertainment. there could be an app store, just like itunes sells all kinds of entertainment. the facebook or oculus app store is selling all different kinds of virtual reality games. they would be video games, movies, different kinds of sports experiences, this could be a huge new business of an entirely new variety. >> over the near-term, people are overestimating it. it's going to take a long time. they're incredibly expensive. you need huge bandwidth and processing power to run them. there

john: he is using market cap to buy whatsapp.e is using market capitalization to find what is next. david: complacency snuck in. chamath just said he thinks the facebook killer is going to be built in two or three years. john: i do not think that is right. you need a new platform to emerge. it is not obvious to me with a platform is. we are early on mobile. what is possible is that we are starting to internalize what it means to have a supercomputer in our pockets all the time. strapped to your wrist or whatever. it will not disrupt the market. but i do not think the next two or three years will be when that happens. been knownavid:has to exaggerate. emily: ken snapchat disrupt facebook? john: it is not the same thing. emily: you said twitter is a big mistake, that he did not invest. what do you think about their future now? there is a lot of question as to what their place in history will be. david: any time you carry a high public valuation, you have a target on your back. you will be criticized. they have time to figure out ho

he used 10% of his market cap to buy whatsapp.e is aggressively using the asset that he has, market capitalization, to find the next wave and make sure he is there. david: and in most of those examples, complacency snuck in. mark is the least complacent guy you're going to meet. emily: chamath palihapitiya, early facebook employee, just said he thinks the facebook killer is going to be built in two or three years. john: i do not think that is right. you really need a new platform to emerge. it is not obvious to me what the platform is. we are early on mobile. what is possible is that we are starting to internalize what it means to have a tiny supercomputer connected to the global internet in our pockets all the time. strapped to your wrist or whatever. it is not vr, ar, that will suddenly disrupt the market. something that looks like a toy for a little while. but i do not think the next two or three years will be when that happens. david: i am a big chamath fan, but he has been known to exaggerate at times. emily: can snapchat dis

i mean to get whatsapp and to get instagram out from google.really showed google was asleep at the wheel in terms of acquisitions for a little while there. and all of this mobile advertising, people were really questioning if it would actually come to fruition. what facebook did extremely well and it got sheryl sandberg's fingerprints all over it. is built an add network that one-ups google's. what you have on facebook is the ability to not only define people by their demographics, females in florida this age, with kids, without kids. can you make secular audiences. similar audiences is a revolution in advertising that most people don't know b. you can give them 100,000 email addresses and they will give you 100,000 people that are most similar to the people with those email addresses. if you've discovered a market for your product, you give that data to facebook and -- >> jason -- i would disagree that facebook and google are all that different, we were looking at a chart of the two stocks, they're basically neck and neck with each other and f

they've got these communications networks like whatsapp.on't want to ramp up margins and have to figure out investments later. thatter doing it appropriately. >> the same time you look at twitter and linkedin and yelp, they're all down significantly over the past three months. last quarter we heard a lot about the impact of program mattma attic advertising, twitter had issues with advertising, yelp, a whole different story. what about that tier of companies? not necessarily the very biggest, your amazons or facebooks that have been struggling, what's going to turn things around for them in these reports if anything? >> i'm not sure anything will for two of those names. twitter, i think is we think is a long turn-around process. i hope it works. but you know we're not recommending the stock and hope is not a good reason to do that. they need to improve products for users and products for advertisers. there's a separate issue here. i know you've talked a lot about tech bubbles in the private market we call it the unicorn bubble. the problem i

so, he used 10% of his market cap to buy whatsapp. think he's really aggressively using the asset that he has, which is his market capitalization, to find the next wave and make sure he's there. david: i also think that in most of those examples, eventually complacency snuck in, and mark is the least complacent guy you're going to meet. emily: chamath palihapitiya, social-capital partnership, early facebook employee, he just came out saying he thinks the facebook killer is going to be built in the next two to three years. it's going to happen. john: i do not think that's right. i think you really need a new platform to emerge, and it's not obvious to me what that platform is. we're still relatively early on mobile. now, i think what's possible is that we're all starting to internalize what it means to have a tiny supercomputer connected to the global internet in our pockets all the time. all the time. or strapped to your wrist or whatever. emily: exactly. john: it's not vr, ar, that's suddenly going to go disrupt the markets. it's goi

messenger,t instagram, whatsapp, may not be at full monetization until they hit one billion users, butn the call, we did not get an update on user numbers. we heard zuckerberg say he has confidence in these things. they are steadily growing. one day, they will make something out of them, but it will take time. yvonne: they talk about this robust ad business and growing mobile users. how did they portray their opportunities moving forward? >> a lot of talk about video advertising. they want to make sure that everything on facebook is immersive. they have been moving into e-commerce in thinking about advertising in a more actionable way. they have products that make it easier for marketers to advertise across the internet. are and knows who you can target you on various mobile applications, no matter where you are or what device you are using. they hope that gives them a leg up in mobile advertising. yvonne: sarah frier, joining us from san francisco on facebook earnings. thank you. nn resorts reported a 72% drop in profit less quarter as bettin g fell in las vegas and macau. net income

and whatsapp and messenger and oculus. when will we see that monetize?ot still to gain from facebook. a long way to go. nowhere near where apple is. the number one on the stop -- on the s&p 500. manus: a long long way to go. caroline hyde, thank you. some of the top headlines. [indiscernible] it makes britain the first country outside the united states to get what apple said will be accepted and more than 250000 locations. rapper 50 cent filed bankruptcy after a court said he must pay $5 million to a woman over a sex tape. she accused him of posting sexually explicit video of her online. and wes and within the next few hours, nasa's new horizons will fly past pluto. it took nine years and it will be the fastest spacecraft ever built. currently traveling at 34,000 miles per hour and will come with an 8000 miles of the planets. time for a little bit more analysis on "the pulse." mark barton. mark: bart chart what is next for oil? limitation on the agreement -- implementation of the deal will take months. the lifting of sanctions will enable the oil-rich na

the other things analysts were asking about was whatsapp, instagram, messenger.t are the apps going to do? how are they going to make money on their own? zuckerberg didn't give much detail on that. he said until they reach a billion users, we needn't worry about them as a business. a little job at twitter, which has far users -- far fewer users then facebook. they said, we have a lot of work to do, but don't expect great progress anytime soon. the underlying problem is it is much smaller than the competition. jonathan: thank you very much. let's talk earnings. iag, parent of british airways and iberia's revenue rose 11% to 5.6 billion euros. then pats joins us now. the airline's first half results, talk to me about them. it is a little mixed. : it is a mixed picture, but leaning towards the positive. we saw operating profit rise about 40%, which beat consensus. we are saying next because passenger unit revenue was down, which suggests stiff competition related in part to oil prices. at the same time, ba and welding have suffered on their own yields. good sign and

asked when they might rake in money from instagram or whatsapp, zuckerberg said we would ask for some patience on this to do it correctly. scarlet: if this sounds familiar, perhaps it should. just a this has also asked for time to be for profit margins and they have obliged. will facebook investors be as generous? our guest joins us this morning. we compare facebook with amazon -- certainly jeff bezos knows how to manage investor expectation, but 1 -- to what extent has the condition them so that people who invest in social media companies can take that and that that expectation into how they are pricing of the ?tock market yesterday -- or member of the management has repeatedly said this would be a year of heavy investment. in the long term, these investments are bound to pay off. just given facebook's track record. amazon had a similar investment infile, investing heavily infrastructure, in prime and in the cloud. this quarter was a real surprise for investors. they delivered a huge profit which was a complete surprise for investors and their cloud unit is really taking off. great%

why do they need to monetize things like instagram, whatsapp? can understand they put in a payment system and so forth, but is there an argument to be made that they do not need to get revenue from the other apps? paul: you are right, they grew their revenue organically 39% this quarter anyway, but the issue for investors is listen, you just bent $21 billion of my money buying what's up a couple years ago. i need to see a return on investment. the company is aware of that. they are saying we know what we are doing and we know the monetization can be through advertising or perhaps through e-commerce but let us build size, engagement, and then we will take it to market. brendan: i want to review summing from brian weser a pivotal research. they said this investment year they have so many initiatives that can contribute to growth. that is like a coach saying this is a building year. does he have the trust to wonder into oculus and say it will make money eventually? paul: i think he does. the company has actually done what they said they will do, an

i am interest to about what you said about instagram and whatsapp.am something like 3 million users. it is huge. how do they monetize the? >> instagram, they really turn it on. --how do they monetize it? out how to get you to go over here. they have experimented with it. as in line with images to says they are doing on facebook. feed.in your you are not 100% sure it is an advertised. sponsored -- is they don't say this is answered. they really are nailing it on modernization. instagram is very similar to facebook as it is a unit, it is unit, it is, they will do very well with ads. i will have to see it to really judge. what about twitter? >> twitter is a tough one. social networks are a good place to advertise, because whatever surrounding you is stuff you really want. at twitter following people we do not necessarily know. ,t is a new broadcast medium and they have work to do. this quarter they have been a touch distracted. adam baines a solid guide. running from ca -- ceo and the new guy that will maybe be ceo. tougher to recruit, tougher to retain

some analysts asked ceo mark zuckerberg about how the company is making money from instagram and whatsappzuckerberg urged patience and said the focus was still on expanding users. shares dropped more than 3% in after-hours trading. siemens reported third-quarter profit that beat analyst estimates. the dollar's gains across the euro helped. siemens shares are up more than 3% in early trading. lufthansa says first half trading more than doubled. fuel cost fell during the six months. lufthansa also saw its passenger airlines improve. those are some of the earnings so far. another corporate story this morning, diageo reporting numbers. forecasting a return to sales growth next year. for more, i'm pleased to say the ceo of diageo ivan menezes joins us from their offices. a return to sales growth next year. you tell me, what do you think underpins that? ivan: through the course of this year diageo has gotten stronger. as we close out this fiscal year, our business in north america has improved in underlying momentum. western europe is back into growth. it grew 1%. africa in the year grew 6%. as

when you see companies like facebook page 21 billion dollars for whatsapp and uber valued at $50 billion, there is arguably a bubble all over the place. on the public markets these earnings prevent -- it suggests we will have a step back that i would suggest as well that it is probably short-term. jon: let's wrap it up but -- on that point. pouncey that just in tech. -- i don't see that just in tech. they said we will have trouble getting financing but guess what the private sector stepped in and help them out. what is going on? >> one of the planks of global. equities. if you said how what i rationalize the valuation, i would say the premium of participating equities is well over five. therefore, if you said that interest rates will stay low and bond yields will stay low, i would say that we need to go up 15%. actually bull markets typically and in a speculative frenzy. that means we could send a 40% upside. jon: we are not there yet. thank you very much for joining us. coming up. iphone sales disappoint investors. after the break we speak with the chief of one of the biggest chip provi

now whatsapp is used to send 30 billion messages a day and snapchat says 2 billion videos are watchedeople were connecting as though they were texting but receiving the expressiveness of the person they were communicating with. >> reporter: imagine the app being used in public places, trains, planes, meetings maybe even a boring class. >> we definitely find that our early adopters are closer to the millennials and some of the teens in the sense that those tend to be the folks who are the early communicators and frequent communicators. >> reporter: it does take some getting used to, but i can imagine occasions where livetexts could be a lot of fun. for "good morning america," becky worley, abc news, oakland, california. >> all right, how about this nonmillennial try to have fun with livetext. we have the president and ceo of yahoo! marissa mayer in san francisco connected via livetext. she's already sent me a message. hi amy. how is times square? i'll type back, it's great. how are you? >> she heard it's hot. yes, it is hot, marisa. normally you don't have to talk to the phone. i'm jus

true, but when a company is having trouble, nobody asks what facebook really is, when it's buying whatsappnstagram. you don't care what facebook is it's near 52-week highs. nobody asked what snapchat was when it stepped away from the initial business. but the twitter thing doesn't seem right about it it was less than a month ago that dick costolo announced he was stepping down. there's no way you can do a thorough ceo search in this amount of time. either they're not doing the search these said they were going to do or they aren't as settled on adam bain as the headline suggests. you've got to bring people in get a sense of how comfortable they are with the company and where it is. and they've got to make presentations to the board about their strategy. that's something that companies tend to do. something about this doesn't sound quite right. >> my speculation is if jack steps down from the ceo as square he'll get the twitter ceo job. in silicon valley, the founder has divine right there was such a history of founders being pushed out. such a bad thing they did. zuckerberg, such a success

if you start to look at what mark zuckerberg has done, he's got whatsapp, approaching a billion userstagram, a billion-user company. he's diversifying across all of these different products as the world is diversifying itself. and so twitter i think should do the same thing. if they want to focus on twitter, great. but also focus on periscope as a business and vine as a business and maybe start monetizing those things. >> nick, good to see you as always, see you next time. nick bilton joining us from "the new york times." >>> in less than 30 minutes, yahoo is expected to reveal a brand new product at an event here in new york city, we're going to go there live but first rick santelli, what are you watching today? >> will know on this fed day, everybody is talking about the global economy as well as the domestic economy. and nothing epitomizes this topic better than china. and they have an army of technocrats running the country. should we be thankful for that? should we be envious? i'll have something to say about it after the break. think this one you're going to want to hear. ♪ ever

there would be no google, no facebook, no amazon, no ebay, no snap chat, no whatsapp without this policy. the technology was deployed faster than any technology in the history of the world under that commitment. secondly, we as leaders wandered around the world and demanded other governments do the same. we demanded governments with much more evil intentions over the internet -- russia, china, the arabian peninsula -- no, we will not stand for regulating the internet like the telephone system so you can censor, so you can extract a necessary value. and on the decision on net neutrality, the government changed -- switch to that long-standing policy presumption. we have gone from a structure that is principally directed by markets and innovators and people to one that has lawyers and bureaucrats with an adversarial process and i do not know why anybody believes that that is a virtuous moment in time, and i do not know how we will have the moral authority to sit at the international telecommunications union a year from now and tell the russians you should not regulate the internet like a te

this is a company that's on fire, the monetization that they'll be able to do, with whatsapp, with facebook messenger, you're talking about a billion users for those two products combined. over the in ex-couple of years. they haven't made a dime from that yet and instagram in the second half of this year, i won't get into the video opportunity. i don't think the good news is priced in. because i don't even think we've gotten to that point yet. so if the stock has to take a pause after a 20% run from january? bfd. >> that's the word, pause. jon was right, kudos to him. great call. it's about instagram and it's about video. that's where the profits are in the future. that's only going to grow and accelerate. >>> take your position -- only a few hours now to trade tomorrow's big oil earnings. exxon chevron on tap. are they a bargain? or will the oil slide continue to hit those stocks. >>> plus look at this chart, an under-the-radar shoe stock has blown away the competition, outperforming nike, under armour and adidas. send us your guesses on who the company is but what if you could see more of

facebook did it successfully when they diversify their business with whatsapp and instagram.we saw the great value alibaba served for yahoo!. what doesn't alibaba-less yahoo! look like? >> we will have to see. marissa had one of the best gifts on her platter. several years to figure out what to do with life after alibaba. erik: and the stock is down 22% this year. >> the jury is out all of that. stephanie: what do you think? >> i would like to see more there there at yahoo! i hope they have plans under the hood. alibaba has come down. the shiny is off that piece as well. erik: thank you. stephanie: is there a pun intended in there? michael, what a pleasure to have you here. the man who wrote the book on donald trump's finances is still to come. whether trump can handle being an outcast from the gop. would you call that book a mystery? a comedy? i'm not sure what genre it would fall into. erik: nonfiction. stephanie: you are watching "market makers." ♪ stephanie: welcome back to "market makers." i'm stephanie ruhle with erik schatzker. let's check in on the morning headlines.

is good, but analysts have been questioning, when are you really going to start making money from whatsappagram messenger? that is what analysts were asking on the conference call. one of the things they said was, until these apps reach a billion users, it isn't worth making them into a business yet. manus: you don't get any value unless you've got a billion. nejra: this is a bit of a dig at twitter. this was its biggest challenge. it is much smaller than the competition. what the ceo and cfo said is that their efforts to improve user growth have minimal impact so far. minimal success. they said, their message was we've got a lot of work to do. don't expect any great progress anytime soon. basically, they squashed that initial optimism from the numbers on the conference call and said, it is much smaller than the competition and that is the issue. francine: nejra cehic there with a roundup of the tech news. manus: that takes us to our twitter question of the day. francine: to brighten your mood today, check out manus cranny's tweet. the real question, facebook twitter, linkedin -- which has

with the purchase of instagram and whatsapp and oculus, they have been looking forward.ve managed to broaden both the mass market, but also what celebs want to do. manus: zuckerberg did some blockbuster deals but he's got to monetize them. wendy: he has. manus: he probably will, and that's what he is saying. on the twitter story, the most sexy it has gotten is periscope. wendy: it has to keep reinventing itself. it was good on mobile. its viral growth came from a very short amount of text. but it has to bring in more. the reason facebook growth happened is because of the mass market. you have to bring more mass-market people in. manus: twitter is getting easier to use. i can use it on the mobile, on the ipad. the next are which i can interact with photo and video is ramping up. what should be top of his tree to do? wendy: there's got to be more value. if you are a celebrity brand or brand such as yourself are mine, that's ok, but how do you create your own brand within that? it is hard to create your own following. in facebook you can bring in people you know. there need

if the banks do not open and it looks as though there will be an indefinite banking holiday, whatsapp's to the support he enjoyed last night with a 61% vote against debtor what happens to the support he enjoyed last night with a 61% vote against the referendum? manus: that is the reality. let's turn to paul. the question is the hazard can they provide liquidity, should they continue to provide? a tough position for them, isn't it? paul: very tough indeed. is there only solvent the cause liquidity at the moment. they may struggle to do that. the ecb holds the fate and its hands. if the banks do not open tomorrow, they probably need more money. the question for the governing council members is shared as they do that? if they do likely to give politicians a little bit more time to come up with some kind of deal. it is always pocked with the ecb will put a deadline on that as they have. -- possible that the ecb will put a deadline on that as they half. therefore, we have to pull the plug. it would cause of the collapse of the banking system and put greece on the path toward a exit. but time

you may trade out instagram for messenger or whatsapp or pictures but there is really one dog in townand that is linkedin. linkedin's revenue base is more robust than other guys because they get revenue from three distinct resources -- the user, recruiters, and advertisers. i think linkedin is the most under hyped development platform. matt: scott galloway, thank you. we're going to take a quick break. stay with us. ♪ matt: check out the view from our roof here. as we enter in other heat wave in new york, you can see the buildings shimmering and about to give up so much heat that he can barely walk to the city and greet at the same time. it is probably the worst place in the country to be in a day. we are few minutes away from the opening bell. tracy alloway is here with the three things moving market affected also joining us is the ceo of morgan creek capital he is just off the boat back from greece. tracy, kick us off. tracy: i have an esoteric one for you. it is chinese port prices. -- port prices. k prices. they have shown prices increasing. you can see it on the chart either. why

there would be no facebook and there would be no amazon and ebay and no snapchat and no whatsapp without this policy. this policy attracted $230 billion over one industry over a decade and the technology would deploy faster than any technology in the history of the world under that commitment and secondly, we as leaders wandered around the world and demanded other governments do the same. we demanded governments who had much more evil intentions toward the internet russia china, arabian countries. no we will not stand for regulating the internet like the telephone system so you can censor. on this decision of net neutrality this government switched that long-standing policy perception. we've gone from an infrastructure principally directed by markets and innovators and entrepreneurs and people to one that has lawyers, regulators and lobbyists through an adversarial process determining every business evolution of the network and i don't know why anybody believes that that's a virtuous moment in time, and i don't know how we will have the moral authority to sit at the international telecom

there would be no google, no facebook, no amazon, no ebay, no snap chat, no whatsapp without this policy. the technology was deployed faster than any technology in the history of the world under that commitment. secondly, we as leaders wandered around the world and demanded other governments do the same. we demanded governments with much more evil intentions over the internet -- russia, china, the arabian peninsula -- no, we will not stand for regulating the internet like the telephone system so you can censor, so you can extract a necessary value. and on the decision on net neutrality, the government switched that long-standing policy presumption. we have gone from a structure that is principally directed by markets and innovators and people to one that has lawyers and bureaucrats with an adversarial process and i do not know why anybody believes that that is a virtuous moment in time, and i do not know how we will have the moral authority to sit at the international telecommunications union a year from now and tell the russians you should not regulate the internet like a telephone infr