it is the best phone that xiaomi has ever made. >> when they announced it, xiaomi makes a habit of glomming onto other brands. [indiscernible] i think there were other announcements giving credit to the component makers, the qualcomm, snapdragon ship, for example. why does xiaomi do that and other phone makers don't? >> beijing wants to project its companies as being very prosperous to its consumers. people tend to associate lower quality with cheap price. >> the price point is interesting as well. still coming with a much lower price point. that matters a lot in china. will that matter outside of china where the phones are subsidized and most people in the bigger markets like the united states and parts of europe, where there are no subsidies, people are not paying the hope rise of the phone? >> you look at the emerging markets, what is china or taiwan hong kong, southeast asia, , india, brazil -- there are a lot of users out there who would love to have the xiaomi phone. xiaomi is demonstrating itself with popularity in china. [indiscernible] xiaomi will be a great item. >> the next bigge

-- does today's announcement mean in china for xiaomi? a xiaomi investor joins me.ans, what did you think? >> i was very impressed. the phone looks nothing like the iphone 6+. it is very slick. the photo taking quality of the phone is amazing. it is the best phone that xiaomi has ever made. >> when they announced it, xiaomi makes a habit of glomming onto other brands. i think there were other announcements giving credit to the component makers, the qualcomm snapdragon ship for example. why does xiaomi do that and other phone makers don't? >> beijing wants to project its companies as being very prosperous to its consumers. [indiscernible] >> the price point is interesting as well. still coming with a much lower price point. is that going to matter outside of china, where the phones are subsidized and most people in the bigger markets like the united states and parts of europe where there are no subsidies, people are not paying the whole price of the phone? >> you look at the emerging markets, whether it is china or taiwan, hong kong, southeast asia, india, brazil --

xiaomi coming out on the snapdragon 8.10. got that horizontal approach that leverages other technology industrious and that could give them an advantage down the road. >> you know, it's funny, because we talk about the smartphone wars as if somebody has to beat apple. it's going to be apple or the iphone killer. when, actually, alex, it just has to take away incremental units in order to sort of change the story a little bit. at the fringes, it could take away some sales. so at what point do you start looking for that and why isn't apple, or do you think maybe apple could be responding with maybe a patent lawsuit of some sort? >> well, at present, i think apple is doing just fine. there's another supplier, like qualcomm, called skyworks, that just put up a blowout quarter after the close here today, growing 56% year over year. and that's with samsung headwinds. so we think for apple, it's really still a good news story, this holiday season. there's room for both xiaomi and apple to win in the short run. there's no evidence he

xiaomi is giving them a run for their money. china xiaomi has overtaken samsung is the largest smartphone vendor there. august, xiaomi focusing on budget conscious markets in the developing world, while in the -- while avoiding western countries such as the u.s. and you ok -- and the u.k.. now the company has released several new products. they are working on a water purifier. an airve released purifier, and it is expanding overseas. this year they say they are going to try to expand to thailand, russia, mexico. analysts are saying while xiaomi could be the big global consumer , we have to keep in mind whether or not xiaomi will be able to break the curse of number three in the smartphone market. held thoseung, they two positions and we have seen htc and elway, they have slipped right back. >> their business model is different here. they don't have bricks and mortar's. they do everything online. it will be interesting how they transform itself from a smartphone to a more consumer products. >> and how they use that on my smart ph

>> hey, guys, xiaomi translates to little rice but the company does have big ambitions. smartphone maker behind apple and how did it do that selling cheap phones but the smartphones are of decent quality. the company says it's going after the premium brands. today the ceo announced its latest phone, this is called the xiaomi note and they said that this phone is going to go directly head to head with apple's iphone 6 plus. now, the phone itself packs a lot of punch, a lot of new features, they say that it's going to have a 13 megapixel camera, 5.7 inch screen, another feature is going to be a high fi audio. another thing is just that generally they were saying this phone is going to be thinner, lighter, and just a bit shorter than the iphone 6 plus. the price is also attractive at $371 for the base model. but for the pro version, which is seen as the higher end model, that's going to go for $532, which is cheaper than what the iphone 6 plus goes for here in china. but at the same time it's much more expensive than the phones that xiaomi is phone for here. it's another wa

we know who's really in trouble from xiaomi is samsung.y've been losing share largely from a surge in xiaomi. apple has been able to maintain a position at the higher end and actually been able to grow its margins in this particular cycle. i think some people might be getting xiaomi wrong too. not really a hardware company. they're giving the hardware away practically, trying to make money on services like an app store, theme store, games, book, bruiser, messaging, things like that. against the likes after facebook and ten cent and alibaba can they coexist in an ecosystem is the future. >> there you go, make me nervous again. >> anything about chinese firms in general that you're leery about, optimistic about? >> no. >> board structure? >> i see china as the next big market in the next 15 years. i want to be part of it. the way i do it try to invest in companies stateside going into the chinese market. but the outcome is going to be a good one on growth. no question about that. >> we turn to david faber i have a feeling on fxcm. >> we figu

. >> yes, xiaomi overtook samsung last august,.. they have sort of been a avoiding of a larger a more developed markets like the u.s. and the u.k., and it probably has to do with property and price . >> -- price. >> they are already grappling with that. >> they are now competing with the boys. they were saying that two years ago, xiaomi started developing this ecosystem and now they are seeing significant progress there, and they are investing more than 20 hardware companies, and analysts are saying that if this ecosystem is similar to that of apple, which includes hardware and software services, that will be key for the company, but as you said, we have to keep an eye on xiaomi. they have so many different companies they're looking at, and they are in the third spot in the market. >> exactly, you can rise up so far, but can you maintain a position? thank you so much, shery ahn. nell is look at the hong kong exchange we have been looking at low trading. it was only at an average of $342,000, now if you compare that to the nasdaq at

i don't think there is a company that has reached $1 billion in revenue as fast as xiaomi.d add that it is probably on profitable growth into the company has made a point of saying we're going to offer a top experience because our pets are so small. is that the future of the company in a little bit more risk than it would be otherwise? >> they are trying to make sure they have the biggest mind share possible. they might offer some digital services. gaming. internet videos. once they have a huge customer base they have established the phone as a delivery device not a profit center. >> so they are profiting from the goods and services that come across the phone? >> i would say so. >> so we should be looking for other investments from xiaomi that might not pay phone-related, but otherwise related. >> yes. they have in the internet tv provider in china. it is possible they might look into gaming. they also have stuff that can be delivered through this particular platform once you have a sizable user is. >> the carriers might have something else to say about that as well. thank

i was discussing this a few weeks ago and they were selling xiaomi equipment. was sold within six or seven seconds. if you were to look at that level of excitement xiaomi, one of the other things does is they limit the supply of whatever they are selling whether it's a phone or an ipad or a tablet. that really makes it a big deal as well. >> i wonder if they have copyright problems that will make it more difficult to come into a market like the u.s.? >> i think that will be a problem in any part of the western world. >> maybe they are limited in places where copyright protection does not extend? >> the laws are not as strict in some other places compared to the u.s. the growth market is this low-end smartphone market. the emerging market is the market. how many people in the u.s. need to buy another smartphone or don't already have one? >> among the investors in the most recent round was the ever optimistic uri gelner. he was also in groupon so listen would he had to say in talking about that investment and how he chose it. he said -- i would add that it is pro

xiaomi is taking aim at apple.y unveiled the latest phone which is going to be a direct competitor to the iphone 6 plus. today the ceo went on the stage in front of hundreds of people and went speck for speck taking on the iphone 6 plus saying there's going to be two models. the base model is going to come in black and white and you can get a proversion in gold but the phones are going to have a 13 megapixel camera and hifi quality sound which is something that the iphone doesn't have and the main selling point is these phones are going to be thinner, lighter, as well as shorter than the iphone 6 plus. it's going to be a bit of a departure from what the company is really known for. they've become the third largest hand set maker in the world because it sells budget smartphones. the base model does come in line with that at $367 a pop but but the one with all the trimmings is going to come in at $540 a piece and though that's still cheaper than where the iphone 6 plus is selling in china now it's still on the high e

>> xiaomi is up new the top. we have samsung and lenovo. they are just introducing the motorola brand back into china. remember, they just closed motorola. you have a very interesting conflagration of things. the other thing to remember is china is enormous. there is an enormous number of people in different parts of the country than act very differently. we can't think of it as one homogenous group. the coastal cities have much more money and act more like u.s. consumers as you move inland to different stories. xiaomi being a domestic brand really resonates with people. >> been with creative strategy. if we find out tomorrow that apple and iphone was number one in china, is that good news? and if it wasn't, is that bad news? >> not necessarily. i don't expect to break them out by region. they haven't historically done that. that's where all of us doing estimating coming to look at it. i think the key is it is increasing. it's going to be close, just from the data we saw in retail as well as network analytics. it was really unprecedented, t

xiaomi lucy.arted making smartphones three years ago, and now it is the third biggest maker in the world. and today it's staked its claim to apple's crown by launching the me note. certainly challenging the iphone 6 plus. there's even rumors it could be making an american launch. >>> pope francis is continuing his tour of asia. he's arrived in the philippines to a procession. his trip to the country will last five days. the country has 80 million roman catholics. a special open air mass will take place on sunday. speaking to journalist, he did comment on last week's attacks in france. he said there were limits to freedom of expression, especially when insults or ridiculed someone's faith. and another controversial issue, he also says that climate change was mostly man-made. adding, it is man who has flat nature in the face. our correspondent, rupert wingfield hayes is in manila for us and he joins the crowds as they waited to welcome the pope. >> that's the first glimpse people here have got of po

wait until xiaomi starts producing in the u.s. >> does apple software need to be fixed?> i don't think so. >> the app store had record-setting profit as well. tim cook said, nearly one billion apple products are out there on the market. it is totally unprecedented. >> tim cook said this volume is hard to comprehend. >> that is correct. it is not about product or fan boy or fan girl. it is economics. the cash generation of this we have never seen. not at exxon, not at standard oil. >>'s apple is serious about research and development this is like a cold war arms race and they cannot compete with apple is dumping this money into r&d. >> this is the discipline they have versus google. they are investing in totally unrelated. >> i'm wondering if apple can afford to buy greece? [laughter] >> what we are struggling with right now is comparisons to describe the scale of this. we have the cold war, standard oil. that is our twitter question of the day. has apple peaked? as it reached standard oil proportions? will it be broken up? ♪ >> good morning, everyone. i'm tom. i use appl

he is going to be unveiling the xiaomi note.s is a phone he says is going to go head to head directly with apple's iphone plus. he went through all the specs. lots of different features including a 13 megapixel camera. he said that overall it's going to be thinner as well as shorter and lighter phone han the iphone 6 plus. the price is what is attractive as well. the base model is $376. the proversion which is the one competing on the high end is going to be $540. it's still cheaper here than the iphone 6 plus in china but at the same time it is showing a bit of a departure from xiaomi into the high end and taking apple on head to head. >> thank you for that report. let's talk about blackberry and samsung this morning because they're denying that they're in deal talks. router's report said samsung offered to buy the company for $7.5 billion. the stocks surged on that report but then dropped in a big way. quite sharply on the company's responses. here with us this morning is amil. he is communications analyst. good morning. >> th

just three years after xiaomi sold its first smartphone a $1 billion round of fund-raising, which was announced in december valued this chinese tech giant, the value to have the company at $45 billion. we're going to have more on gmt coming up on that one. we're also going to be looking at scotland, where the north sea oil industry has been battled by those plunging oil prices. bosses at bp are talking to staff at their headquarters in abidine after a strategic review of their north sea operations and they are expected to announce what could be the first in a wave of pretty big job cuts. around 450,000 people work in the uk oil industry. around half of them in scotland. under the north sea, it is expensive, very expensive to bring up out of the ground to extract anything under 60 bucks a barrel and the industry warns, it's just not profitable to do. we know what brent crude is at the moment. it's trading around $48.50 a barrel. and we keep reiterating this it's down. the value of a barrel of oil has fallen by just over 60% in the past seven months leading one senior industry figure to

as you have seen more competition from xiaomi and yahweh over these past few years, samsung has had aome down in price. a lot of their phones are really expensive to make still. they are not getting the same profit margins apple is when selling $800 plus phones. the high-end iphone 6 plus with 120 gigabytes is almost $1000. you get a much higher margin on the selling prices. >> i have always looked at the way they run their semiconductor process. they have announced a huge capital list expenditure project. i've always thought of that as the canary in the coal mine for them, where they are going in the direction or letting the other cell phone makers what they want so samsung can design their phones around that. is it possible we see a change of focus where the chip will be the main thing, not device themselves? >> they need that ship business -- chip business to be strong in the years ahead because of this decline we are seeing in their smartphone business. they were the exclusive manufacturer of apple's eight series chips. it's only been since 2013 and apple negotiated an agreement a

xiaomi is trying to build an ecosystem. two years ago, they make plans for an ecosystem and have made significant advances in 20 hard were companies -- hardware companies making products. investors say that this kind of ecosystem combining hardware and software will be key in the future but you have to remember that lots of other smartphone vendors of problems when it comes to markets -- have had problems when it comes to markets and they have all slipped back. the curse of the third-place. >> one thing that they have is the chinese consumer base. >> and they are very aware of that. >> trying to capitalize on it. banks. -- thanks. >> we're live in beijing among speculation that the government is lowering the growth target. there is a chance that oil can rebound, who do not bet your house on it -- but do not bet your house on it. ♪ >> welcome back to "asia edge." the next guest says that asian markets will pose mid to high growth this year. norman chan joins us. mood do i change -- mid to high change. the growth is going to

how would apple push past popular chinese makers like xiaomi and lenovo at a higher price? neill mawston joins me now via skype from milton kings, england. he is executive director. let's start in england. how would you do find these results and how surprising is this turnaround? >> the results are really good. they had a really strong quarter. they blew past pretty much everybody's expectations. it is well-known that samsung is going through a tough period at the moment. >> your results were a little different from earlier in the week. there is virtually no distinguishment. i have a hard time figuring out these numbers every quarter. is this just about a new phone release? or is it more view than that? >> it is essentially the public wars. those five inch smartphones that are the cross between a phone and a tablet, those wars between apple and samsung are heating up now. samsung was the clear leader. with those big screens coming out they have taken the fight right back to samsung. there is a real battle in the tablet section now. >> hans tung, do you think this is a one q

inland, it is a different story with xiaomi being a domestic brand.hose things also play an impact. >> if we found out that apple was number one in china, is that good news and if we found out it was not, is that bad news for apple? >> i do not expect them to break out phone sales by region. that is where all of us during the estimating tend to look at. the key is, it is increasing. it will be close. just from the data we saw in retail and network analytics. so the 6 and 6 plus are unprecedented. that goes back to the point of them wanting bigger devices. what this talks to is the upside for china. if you look at the u.s. market we are reaching saturation in the u.s. with penetration and individual ownership going over 70% but it is less than 50% in china. the upside is strong and that is where when you look at what apple is doing there, the market is so large and there is so much market share to be distributed but the upside remains to be the largest in that market. whether or not it was close which we think it was or it was number one it will be an

. >> i think xiaomi recently announced qualcomm is going to be in their new phones but there is talk they could bump you out of higher end models at the same time. do you feel you are shaping up competition wise versus lower priced chip competitors in the market. >> they have within a real area of strength on the business side. >> just getting paid is the difficult. >> the product business can the licensing business is there. the product business is doing quite well really driving the trend of lte into the chinese market. >> let's talk about broad phones. you have certainly wearables out there trying to take center stage. medical. which do you think is going to have the biggest impact soonest now that we've got a few months since the last time we had you on. >> i don't think anyone knows quite frankly. >> not even you. >> ostrategy is to take it easy for people to leverage the power of mobile. so many people are trying to figure how to get their device connected and our job is to make it easy for them do that. that is why you see announcements from us from a very broad range of the c

seven seconds, though if you were to look at that level of excitement, one of the other things that xiaomimit the supply of the phone or the ipad or tablet and that really makes it a big deal, as well. >> i wonder if they have copyright problems that will make it much more difficult to come to the market like the u.s. , if the applelike experience might be owned by apple, and they will get their pants sued off of them if they come to the u.s. >> yes, that will be a problem anywhere in the western world. >> a maybe they will be limited to those places where the copyright protection does not extend? >> i would not say does not extend, but they are not as strict as they are in the u.s. and europe, but the smartphone markets, the emerging markets, if you really want to think about it, i would say how many people in the u.s., you know need to buy another smartphone if they already do not have one? >> so among the investors in the most recent round was the very optimistic yuri milner the russian investor in a lot of big technology the buddies, with facebook, and also there in size in groupon, an

millions. >> look at these prices for snap chat 20 billion, uber xiaomi you can't afford any of thoseally good stuff is expensive. so the question is can she bring something together that is smaller. i think investors probably want her just to give the money back. and that is the more interesting thing is the tax thing that is going to happen which we've been writing about. which is more dull but splitting the yahoo property from the alibaba stuff and creates a very smul yahoo and allowing investors to take advantage o buying or selling the alibaba or the japan stock. ha it is transaction that's important here. >> and arguingly just as important to the is to be. >> and yahoo have very small. the as very small little company and that is interesting in a lot of ways. for a lot of people to buy it to me that is more interesting. >> in the meantime, fred wilson making waves this morning. >> what's new. >> bearish comments on the apple watch. says wearables will not live ups to the hype. and after we covered it. business insider covered it. wilson took issue and went off on twitter. i don'

does this make you want to buy other xiaomi products? >> having played around with it, if i could get this on my carrier in the u.s., this would be my second phone. >> there's one argument if they try to come to the u.s., it would be over because apple would sue for infringement of patents or trademarks because it's so similar. >> i'm not a legal analyst. is it that different from an android phone, i mean, no. it is pretty amazing. they have literally the same speaker on the bottom grill right here. they have that same little white line. from a physical design standpoint -- >> and the structural standpoint, it looks very similar. >> it doesn't have to be a slam dunk for apple to sue. it would happen. it would happen. apple has shown no necessary restraint in going after people it feels are ripping off designs. and they'd have to contend with google too by the way who would no doubt try to block them from getting the key 57s that google owns onto this phone. so i continue to think, yeah, they make pretty stuff, they might have a strong ec

other markets they are getting hammered by really good high quality, super low priced phones like xiaomi and others. >> to have the bigger phone coming out at the same time as apple pay and potentially a revamp streaming service you just wonder if the storm is perfect for apple at this point, or if samsung really can come back and start to change it on its own turf. >> samsung, effective go back a couple years and we've now wiped out the huge open field when they had the phone nobody else had. and now they are back to that level of the profitability. and again they are diversified in the chip side. middle range products that apple is barely touching, even with the cheaper phones. they will continue to sell those and they are trying to build their own eco system. >> were you intrigued when apple does down 6, 7 days in a row? >> intrigued? i'm hanging on. i got in when everybody -- i was, you know, occasionally make a decent call. take a good risk. bought apple and still hanging on. the big concern for me though is it is going to be a colossal quarter or two from the iphone 6 where they ha

which means that in your iphone or even xiaomi in shine the microphones are made by knowles.we've moved from one to three microphones per device recently. so the content is moving up over time also. >> real quick about synchrony financial spin out of general electric. this has had a fantastic performance last year. kudos to pick it up then. how do you certificates of deposit and toings like that going to be something that benefits them going forward in 2015. >> funding costs will low. and credit strong. the company gents roa of three and a half percent. that is exceptional within financials. the stock trades eleven times. with spin, the last part i mention should have mentioned earlier is they are orphaned in some a way where they are just not well known entities even though in synchrony's case it is a big business. we think as the market comes to understand it it finds a home analytically and on the buy side. on the sell side people come to appreciate how good of a business ge spub of last year. >> dan thanks for coming on. >> great to be here. >> synchrony a good name. soli

that will climb even with the success of xiaomi. ipad sales, 21.4 million was sold. 22 million the streetas looking for was already 14% decrease. we're seeing record phone sales of course. it is a record year for ample with both units and does better in developing markets in terms of the 6 plus, that bigger space but going through these numbers they seem to be pretty satisfactory overall. david: stay with us, jo ling. we'll come back to you. we have ivan fineseth from target financial partners. one thing that jumped out at me, ivan, gross margin increased from 38.9% to 39.5% the looks like good number there, no. >> incredible number. selling a bigger it phone and slightly higher priced iphone. i believe they would have higher margin. david: would you buy in? it is 114 1/2 in after-hours trading. would you buy in on that? >> absolutely. we have a strong buy rating on stock. not only do iphone sales drive revenue but sales of iphone drive ongoing revenue between the service, connection service, data service and also content that's consumed from itunes. liz: we're still looking, ivan and joe

torilla's would be -- most notorious, xiaomi or uber. we do not know the terms of those deals. round investors be the first to get their money out. companies are waiting longer to go public. we have company is looking at the ipl as not the purpose of the company but something else. instagram is a fascinating and not so little company. they have over 150 employees and over 1000 contractors. they have adopted this thing. everyone who walks into their office these pitches and powerpoint presentations. they refer to this as the uber of this, be uber of that. these guys are the uber of grocery delivery. using a cell phone to request stuff. they use the same device to fulfill those orders without the person so filling the service ever calling on staff. they have shoppers who go into stores, performed the service as a contractor of the company. in this case, instacart and in the other case uber member has to hire all the people. >> the. two. business. i have used this -- the peer to peer. i have used this myself. occasionally you get too many questions from the instacart shopper. it i

iso on thursday, xiaomi expected to lift the covers on its new flagship product, but mystery surrounds the release with the company refusing to hint at exactly what the product does. is it a new smartphone or device? lectronic all will be revealed by the founder and ceo. 's longfriday, hyundai simmering pay dispute goes to court. unions have carried out partial strikes and have threatened more action. -- district court will let announce its verdict on settlement. let's take a closer look at the week ahead with the head of dynamic asset allocation at amp capital, joining us from cindy. -- from sydney. we talked about how volatile year has started. was,u think about how that using it as a template for the rest of the year, how do you view 2015 to play out? >> you mentioned volatility. volatility is lucky to be a -- likely to be a strong feature for 2015. for equities, volatility is likely to be intense. deflationary forces and worries about the u.s., so this ,ug-of-war between deflation and it's likely to result in intense volatility. but volatility creates opportunity. but market timing

you're going to see more about xiaomi.-- you have makers that are much more popular or cheaper.n, similar to apple as well. >> smart phones cheaper, that is a trend around the nation. thank you. china is calling for foreign talent. its latest move? loosening visa restrictions. christine, what is the plan here? that plan is to make it easier for foreign professionals in targeted sectors to come live and work here. the hardest part about working here is to get here in the first place. they are expanding the scope of the original 1000 talents plan introduced in 2008. mostly research and development, high-tech areas, under innovative industries. they lost a similar plan to attract foreign experts in 2011, and many regional governments have their own plans. no lack of plans. but these plans would make it easier for professionals to enter the country. and then give them incentives, forn generous ones, taxation, wages, medical care, which is expensive. this particular program allows for subsidies, research allowances, anything from $1 million to $5 million. that is extra money in your

xiaomi, who actually manufactures phones, just got valued at $45 billion, is no longer a startup. >>aluation and millions of dollars, and we are five people. we are a genuine startup. based in san francisco, we are eventually capitalists, the whole thing. >> you had a different name, why did you change? >> the thing about startups as they are constantly looking for what is the thing that is going to make them and become a business, become not a start up? that is our goal. >> that's your news resolution. >> exactly. when we started, we called ourselves lift but we weren't sure what was going to turn into. what we found as we built the community with 2 million people is the power of the community was in them helping each other. almost all of the original coaches came from within the community. >> like with nitro? >> we can get into that. >> for those who are member, he was on american gladiators. why does and some buddy bring back -- why doesn't somebody bring back american gladiator? >> he does work first, he's a coach on our platform. as far as we can tell, he's the best coach. one o

also on thursday, xiaomi expected to lift the covers on its new flagship product.ystery surrounds the release with the company refusing to say what this product actually does. is it another new smart phone or an electronic device? all will be revealed. on friday hyundai's long simmering pay dispute goes to court. unions have carried out partial strikes and threatened more action. let's have a look at what 2015 does hold. let's look at the market with jason. he joins us now from singapore. thank you for coming on the program. what do you think is going to be driving things? despite the recent rally, chinese equities still have attractive valuations. >> if you look at the chinese equities -- [indiscernible] i think chinese equities are not trading at excessive valuations. if you look at the hsci you do not have excessive valuations. of course, there is continued monetary easing and loosening of policies in china. that will help the market. potential you could have -- [indiscernible] that could be a positive boost for the equity markets. we always say that we prefer a

we got the competition from a lot of mobile phone makers like xiaomi.most popular in china and they do not even use -- google, android software and the china market as well. >> yvionne mann, thank you. that outlook from hsbc. that is when "on the move" returns. ♪ >> you are back with "on the move." bringing in head of asian strategy. the top stories of what is going on in greece right now. just shy of a majority and could end up with one. what could this mean? >> in terms of eventual outcomes and the european union, we think it is in everybody's best interest on a deal of a new program to be reached. that's the ecb and imf and we think that is the most likely outcome. it is a very low probability of what we do think the outcome brings is volatility back to the ecb's decision in recent times. we think volatility is back to stay. >>won 4%. when it comes to the currency market, does it continue down? you have been talking about parity by the end of the year. some have talked about 95 against the euro. >> we are looking at 109 which is quite conservative. >

. >> when you look at companies like alibaba and xiaomi china is becoming a place renovation. becoming an easier place to grow these types of tech companies? >> innovation is a broad spectrum. right now, china has adaptive innovation. what alibaba is just expert at is being able to take what's going on in the u.s. and jack ma even admits that he brought e-commerce to china. they have been able to innovate within that framework to adopt to the chinese market place. they haven't had come to the paradigm shift in innovation where they are making global innovation. >> i was going to say, that is key. production innovation is increasing efficiency. research and creative design and patient, -- innovation, something the u.s. excels at. >> people who have touched phones, the point is, it's not a knockoff. it's a better phone. >> yeah, it's it a better phone but is not a new phone. it's not a new innovation. >> when japan was innovating, we should talk about televisions from japan being better than televisions elsewhere. that production innovation is really the key to what china has be

i never know how to pronounce this xiaomi in china is the value player, 80% of the value and then your at the high-end, you have samsung who is turning into the jcpenney or seers of the world in the middle, which is an ugly place. i would love to hear your thoughts to geographically. the u.s. is the innovator, the asia, the low cost provider, and you have europe, china trying to find the identity in the middle getting squeezed. i realize that is a databas -- is a bit of a stretch, but samsung is not realize if it is the innovator or low-cost provider. >> its cash, a deployed some in return some to its investors something apple is the mother with. >> sales of samsung down 26% in china. >> it did an amazing job of reinventing itself once. is that possible again? >> oh, sure. product of element and digital -- the best way to get a facelift for your brand is to come up with some kind of cool digital content. samsung -- fantastic management team amazing brand, innovating around product for stub do not count them out. this is a "what have you done for me lately?" business and innovation hav

plus, xiaomi former google executive why are they meeting with mark zuckerberg and kara swisher of re next phase of life if it is life for google glass on "squawk alley." don't miss it. s. so this is a great opportunity for an upgrade. sound good? great. because you're not you you're a whole airline... and it's not a ticket you're upgrading it's your entire operations, from domestic to international... which means you need help from a whole team of advisors. from workforce strategies to tech solutions and a thousand other things. so you call pwc. the right people to get the extraordinary done. ♪ ♪ hi. jon and pete najarian here. the popularity of options trading has skyrocketed. but we still hear from viewers every day who don't know how to profit from them. so we wrote an entire book to show you how we trade options. and if you're one of the first 250 people to call in right now and just cover the shipping and handling we'll send you a copy for free. look at the rates of return we've made on some of our recent options trades versus what we would have made if we'd just bought the stoc

. >>> you've heard a lot about xiaomi. we'll have one of those phones live on set.le bit later. we'll be right back. ] whether it takes 200,000 parts ♪ ♪ 800,000 hours of supercomputing time 3 million lines of code, 40,000 sets of eyes, or a million sleepless nights. whether it's building the world's most advanced satellite, the space station, or the next leap in unmanned systems. at boeing, one thing never changes. our passion to make it real. ♪ ♪ so what's going on today? news alert! message! email! calendar update! most of us admit to being overwhelmed by information at work. that's why ibm created verse. it uses powerful analytics to uncover hidden patterns in your email, calendars and social feeds. it continuously learns how you work. and helps you prioritize the people and projects you need to focus on. there's a new way to work and it's made with ibm. >>> welcome back to "squawk on the street." check out shares of brookdale senior living. the stock has fallen after it cut its 2015 profit view while saying fourth quarter results will fall short of wall street'

you've got xiaomi who became the most valuable tech newbie. it is $46 billion. uber not far behind.nearly twice as many billion-dollar start-ups today than there were in the dotcom boom of '99 and 2000. that's according to "the wall street journal". so the question is will this start-up boom go bust in 2015? here now to talk about it senior tech analyst at mashable christina warren. joining us for the next half hour alan murray. and matt murphy. christina, i'll begin with you. i guess the one thing we can hang our hat on is a billion dollars ain't what it used to be. still when i see -- and i'm not picking on the company, but a grocery delivery service get a $2 billion valuation i'm thinking oh no. is this time different? tell me this time is different. >> i think for groceries it's difficult different. we're kind of ready and the infrastructure is finally there for it to be different with groceries. i do think when we look at things like snapchat and they're raising as much money as they have and $20 billion valuation, that's a little bit -- i'm not sure what to think about that. >