emily: that was daniel zhang, ceo of alibaba.pencer ofe now, bloomberg news and the director of stanford university's annual china 2.0 conference. zhang expressed a lot of conference in the u.s. consumer. should we have that much confidence giving everything that is going on? >> i have spoken to him, met him. he is a true soldier. what is he going to say? he's going to say, focus on the long-term. there is definitely volatility in the market. most volatility occurred in june. having said that, growth is 34%. it is not great, but it is still not bad. it is fine. they still have 80% market share. overall it is ok. emily: it seems that the shine has worn off of ali baba. i wonder how much is perception and how much is reality given the long-term potential. >> for sure the shine is off. ali baba is wishing for the halcyon days when there was a skyhigh stock last november. there are reasons for concern. despite the news of growth and more revenues for mobile, can ,libaba really moved to mobile and what about this in the face of china'

best place to get the answers is the ceo, daniel zhang. joining us now from hong kong. thank you for joining us. this is your first report card as ceo. what are you doing differently? $90 -- $90s lost million in market cap and have your reverse that trend? quarter wethis continue to deliver a strong result. we will grow 34% year-over-year and our revenue 28% year over year. specifically, we made good progress in mobilization for the first time. our mobile revenue exceeded pc revenue. i think this is a good transition for mobile and we made a big investment in the largest consumer electronic retail chain. signals we will enjoy a healthy growth and we will create more value to our customers. this gets you big into off-line commerce, the biggest deal ali baba has made. how many customers in rural china do you expect to get as a result of this deal? the investment marked our our omni channel strategy. we want to create a unique premium experience withsoon yi to integrate online/off-line experience. they have over 1600 off-line stores. they hav

emily chang spoke with the ceo, daniel zhang.us the big take that he gave you about the chinese economy and this recent move with the devaluation. emily: shares are slumping right now, there is a big concern that they missed estimates. 34%.e expected to grow this was a suspension of their online lottery business. they said that otherwise, they would have beat or at least met expectations. i asked how concerned he was about the devaluation, and he expressed confidence. daniel: people come here not only for shopping purpose, what for lifestyle. are confident in long-term growth. we will continue to mostly monitor consumer behavior and the chinese economy as a whole. but we are confident in the growth. just do a bigd china, sothe us by of they're hoping to reach a lot of people who are not online at all . they are reaching out to people in rural china to diversify the business. the experts are pointing out to us that there is still so much room for potential. they are not concerned for alibaba specifically. what was interesting is t

we spoke to ceo, daniel zhang earlier on the show. he had to say about the chinese economy. >> we closely monitor the chinese economy and the impact on our chinese consumer's behavior, but what we observed that consumers still coming to our retail platforms to do their shopping because of the lifestyle change. so we are confident for our long-term growth. >> continue to say, of course, there was confident there, perhaps less so among the investment company. they put in a buyback. earlier this week they announced the deal with a large retailer in china for -- similar to best buy. mobile as we know from monitoring companies in the u.s. that are focussed on e-commerce is the critical way that people access so much of their buying. no no difference in china. mobile has taken over from desk top in terms of the majority of purchases. >> this quarter we observed an increasing shift to mobile, and we make big progress in the mobile transition, and in this quarter, we reported a 55% of gnv of our china mobile marketplace was from mobile. and 5

alibaba ceo daniel zhang will be on cnbc in a first on cnbc interview at 3:00 cet. >> very excited for today. i think company went public in september but already facing challenges and this earnings report is very important to understand whether the company is spending, you know, strategically and whether any of those acquisitions they make are actually helping their bottom line. >> those concerns reflected in the share price back at the ipo levels. >> big drop there, wow. moving on, s&p is putting berkshire hathaway on credit watch negative. they want to finance the $32 billion deal. they have a aa rating and the company may have to draw on capital from its insurance units despite it's substantial cash resources. warren buffet said he plans to pay for the deal with $23 billion in cash and borrow the rest. berkshire class b shares down 1.2% in frankfurt. >> moody's is cutting brazil to near junk status. the move comes two weeks after s&p warned brazil would use it's investment grade status if fall out weighs further on the economy but moody's says brazil has the ability to achieve a tu

with alis my interview baba ceo daniel zhang. ♪ >> from our studios in new york, this is "charlie roserlie: we continue with our of the 2016 presidential coverage election. donald trump continues to lead the republican field. meanwhile, hillary clinton proposed a 10 year college tuition plan that has come under criticism from some republican contenders, including marco rubio and jeb bush. the iowa caucus is first. joining me now is mark halperin

zhang bendou, a chinese tennis writer, says it was a stunning development in chinese sports. >> zhang: after 2008 olympic games, we have four or five chinese players all get more freedom. they can have their own coach, decide their own schedule, but you have to pay your own coach, yeah, and your flight tickets. >> stahl: but it was seen as a big... i don't know. >> bendou: it's a big change. >> stahl: the change put a lot of pressure on li na's husband dennis, who, at times, also served as her coach and punching bag. >> li na ( translated ): if you don't want to watch, you should just get out of here. you don't need to put on such a stinky face. is the way i'm playing embarrassing you? >> dennis ( translated ): i just want to talk to you about... >> li na ( translated ): get lost! >> stahl: and in her post-game interviews, dennis became the butt of her jokes. ( laughter ) >> li na: you know, sometimes i just make the joke. >> stahl: did you take it as a joke? >> dennis ( translated ): i don't want to answer that question. >> stahl: during one very difficult period, dennis left her and

25 on it you're talking a $125 stock. >> that's the fundamental case in baba and you heard daniel zhangabout the chinese economy, how people are still buying on the platform. but there is the perception that china is slowing and that is going to be a proob for all chinese stocks. particularly chinese growth stocks. >> won't that sort of kidnap the trade? >> it could, actually. if the chinese market gets worse or the stock markets get worse there it would be an overriding theme and by the way would also have impacts on the u.s. stocks as well. obviously. considering we can't necessarily call that we'll look at the fundamentals. what we like is they're also diversifying away from china. they're investing in india, 234i69ing in the u.s. growing cloud. you've seen what amazon's done with aws. large opportunities there betting against here which we don't think are being captured in the stock. >> were you saying the other night not to own yahoo!? >> i said 34 1/2 was -- we talked about the level 2014 bottomed out in the middle of the year around this time of year at 34 1/2 and that's basicall

cooperation or alleged cooperation with the chinese government has taken a lot of flak for this area daniel zhangommenting. daniel: as a company they have a huge consumer base. serving millions of merchants. wheeler -- work closely with the government to follow the government policies and regulations and we will continue to do so and to make sure we are in compliance with the laws and regulations in china. seven: -- zeb: it is a tough time but there are some bright spots. the mobile business expanding and the numbers that mobile revenues were up on the order of 34% in the latest quarter. angie: an interesting partnership with macy's. what is this about? : they are trying to target the average consumer. it is a midrange department storebrand, very visible. macy's posts visibility. angie: $.10 on the other hand, the work has already been done. they did pretty well. : they are expanding rapidly content that the market in china cannot get enough of. it is delivering. record quarterly profit, the second-largest internet company in china only second to alibaba. the ad dollars are lucrative and certainl

daniel zhang took over the company for the first time monday and is written a memo urging steph evers to shift their focus to customers away from the slumping stock and said this will not be the last time. the shares did rebound on wall street tuesday. just above their debut price. rally of stocks rally evaporated and the final hours of trading. the decline has happened and concerns but which slow down. the company was not doing enough to weed out fake goods on its site. governorsustralia's held a summit in sydney. what is he mean, is this a more subtle prodding from glenn stevens trying to get the tony abbott government moving? let's give that question to the man who knows -- paul allen. paul boy, the central bank governors are notorious for speaking obliquely and cautiously but if glenn stevens is becoming less subtle by the day he has previously said there are limits to what monetary in junean achieve and he was musing that perhaps australia's growth is not the 3.25% we have been a assume in but perhaps it is lower than that. just this morning he was asking a series of rhetorical q

. >> we'll name them singh and singh zhang. a nice day outside. it will be a hot one for sure, if you're still allowed to wear shorts to school, i think some elementary kids can wear shorts to school. if you can get away with it, it's a shorts day for sure. there's the live view outside of what promises to be another 90 degree day. you had 44 days 90 or higher this summer. i think today is likely to be number 45 on the list. current temperature now at reagan national at 71 degrees. winds out of the south averaging seven miles per hour today. what to expect today, a dry start this morning. it will be warmer and more humid over the weekend. there's a chance for rain and thunderstorms starting after 3:00 to 4:00 this afternoon. temperatures right now are in the mid 60s in the shenandoah valley. 63 martinsburg and winchester, downtown, 74 in annapolis. going for the early morning run, run before 10:00. if you're going out the the pool today, hot and mew mid and keep -- hot and humid, and keep an ear out for the thunderstorm. it will be hit and mislate

from that was daniel zhang alibaba, which is down as much as 8% today, even after promising a $4 billiony. still ahead, when your boss once to know your heart rate. ♪ matt: the future of the high-performance workplace is signs place full stop shows hormones affects behavior and employers in the u.k. are taking advantage. hedge funds, banks, consultancies are installing tracking systems that use biosensing wearable devices to link human behavior to business performance. erik: ok, it is science. so the initial reaction for most people will be, what on earth does in employer need to know my heart rate for? why should an employer be tracking my health, which is for many people, a very personal thing? the more i thought about it, the more i thought, this makes sense. there's no reason you wouldn't kinds team to know these of things from a performance athlete, particularly professional athletes, and if you believe your employees, more or less, fulfill the same role that a pro athlete does, the maybe this is a -- isn't a crazy thing after all. matt: i could see what you want to hook up heart ra

it will report earnings of 58 cents a share off $3.4 billion in revenue for the quarter and daniel zhangn "squawk on the street" 9:00 a.m. eastern time. let's bring you up to speed what's happening with the markets. the dow jones off by about 237 points, you can see the nasdaq down by 79, the s&p down by 25. the nasdaq the big loser so far today. more on "power lunch" when we come back in just two minutes. seven out of ten power outages in the us are caused by weather. but utilities can now predict where the power will go out, within a few city blocks. working with ibm, they're combining micro weather forecasts with detailed data from local sensors. to predict where outages are likely to occur. and send crews exactly where they're needed, when they're needed. ibm analytics from the internet of things is making energy smarter every day. >>> shares of conformis down today. meg is live with the ceo. >> dr. lang, thank you for joining us. i understand you guys do customizable personalized joint replacement. can you tell us what that technology is? >> so basically off-the-shelf devices implan

alibaba ceo daniel zhang will be live for a first on cnbc interview. you don't want to miss that.ay's sell-off sent a chill through the market as the vix spiked more than 12% and the traders are betting on even more pain to come. brian sullivan has today's "options action." hey, brian. >> hey, melissa how are you doing? the vix was hot and that was a hot topic on the floor. certainly traders stepped in. bought 20,000 august 18/20 call spreads and then paid another 9,000 for 8 to 10 cents here. basically, the trader risking one to make 19. if the vix trades above 20. that's a huge bet that the vix trades to the up side. the 19/1 payout is a huge payout, but obviously so you're risking a little bit to make a lot. and basically i think traders here on the floor are starting to get concerned about where this market is headed. we've been in such a tight range, melissa, between this 2070 level and 2100. a little bit higher than that on the s&p 500. if we get a break below 27, i said this earlier today, the future trades 2068, i think we get some volatility and you get that spike to 20 i

ceo daniel zhang will be on "squawk on the street" 9:00 a.m. eastern time. stocks falling sharply no surprise on china's devaluation of the yuan with major sectors down across the board. a number of luxury names sliding including swatch, lvmh, hermes. and greece and its creditors have agreed on terms of a new bailout. if approved by eurozone governments. officials say the deal woun lock about 86 billion euros in financing for greece over three years. the country of course has to make that 3.2 billion euro debt repayment to the ecb a week from thursday. news of the agreement gave athens a much-needed lift as you can see. up 2% after a rough week or so. when we come back, we've talked a lot about google's restructuring this morning but according to kevin o'leary the company still has not gone far enough. hmm, i wonder what he means. his prescription for growth, dividend included, when "squawk alley" continues. the dow down 218. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information t

daniel zhang, alibaba ceo coming up in the 9:00 hour. morning and currencies and fixed incomes. here are the top headlines. marketshina is rattling again and is rattling markets again and spurring the people's bank of china to intervene. the currency sank for the second day. bloomberg news reports that authorities did intervene to report the yuan. stocks are down around the world and futures indicate that u.s. stocks will be lower at the open. hsbc's senior economic adviser tells bloomberg you could see this as payback. >> china is in a slightly difficult position because the roman be has been a strong -- reminbi has been a strong currency. every other currency has tried to devalue against china. julie: emerging-market stocks have sunk to their lowest level since 2011. they are now in a bear market since hitting their peak last september. the price of oil is bouncing back from its lowest close in six years. west this -- west texas intermediate rising to just under $148 -- just under $48 per barrel. prices are down more than 18% this year

and tomorrow alibaba ceo daniel zhang will join us after the company reports. what's happening on the ground in china. "squawk on the street" will be right back. at ally bank no branches equals great rates. it's a fact. kind of like shopping hungry equals overshopping. >>> oil is in a deep slide today. it's down about 4 % right now. kourtney is with us if w more on the slide. china courtney. >> that's exactly right, sara. china is front and center for a lot of movers in our market but most especially crude prices here as you're seeing them tumble almost 4% getting ever closer to the 42 handle which is a very key support level. and what happens here is sort of a double whammy. when china devalues its currency it makes crude oil more expensive because of course it's dollar denominated and also reignites those fears about a lower demand from china, even lower than what we had previously been worried about. we also got some news out of opec today that again those production levels hitting three-year highs. the opec also forecasting no extra demand this year for cru

. >>> don't miss daniel zhang on "strauk on the street." >>> new data out today confirms that amazon'say was a boost of sales and to the merchants that sell goods on the site. prime day was particularly beneficial for merchants offering prime eligible products that had prime day deals or both. some of them saw 200% year-over-year growth on prime day. that same day the year before was not any special day. in july, there's 3,000 strong customer base with merchants like dell, under armour and kitchen aid that sold on amazon priced 30.1% increase in online sales. and google shopping at 13.2%. now we should note that july sales were up 30% year-over-year for merchant selling through amazon. in july 2014, sales were up 40% year-over-year, which actually would indicate a decline in sales growth according to channel advisers data. all of this data doesn't point directly to a particular level of increase of revenue for amazon except for the way that the fees, amazon charges merchants for selling its on site. what we do know from amazon is worldwide order growth on prime day grew 266% year-over-