tv Bloomberg Markets Bloomberg November 11, 2015 10:00am-11:31am EST
with jack ma for the latest. emily: thank you so much. i also want to welcome our listeners on bloomberg radio. jack ma, great to see you again, thanks for doing this. you blew through last year singles record in half the time but i'm curious, how does this compare to a typical day at alibaba? jack: compared to the typical day? are looking at 13.6 billion right now, what does it look like on an average wednesday? jack: nominally, we have close to one billion something. maybe a little more. this thing we have been preparing for more than three months, preparing for the supply, the buyers, promotions. a lot of things. we think this is a unique day,
the day that we want all the manufacturers and shop owners to be thankful. we want consumers to have a wonderful day. --iness and life businesswise, it may not be a big difference, but the event itself, the meaning of the is getting such great excitement in china. emily: you want this to be a global holiday. you want 50% of revenue to come from international. what is the timeline for that, when did that happen? we do we have a 10-year plan, from the first day. 2003, wetarted in said, we will judge what we should do to realize our dream in 10 years. years, wen is, in 10 will reach 50% of the revenues and the money and the sales from
outside china. emily: you and i last spoke on ipo day. it has been a bit of a roller coaster ride for the stock. now just above its ipo price. how can you explain this love-hate relationship that investors have with alibaba? jack: they love me, they hate me, but we love them. you cannot stop people from hating you. we know we cannot take care of the stock price. we have to take care of the results, the customers, the performance. because people do not like the chinese economy, they hate us. if they do not like this, they hate us. we hope people will understand. we are a company going for a couple of years. we have 86 years to go to prove ourselves. you said today the
chinese economy faces a bumpy ride. many internet companies will fail. what are you most concerned about? jack: the chinese economy is good and that does not mean that your economy is good. if the chinese economy is bad, it does not mean that your company is doing that. to our standard, nobody believed the internet would start to grow. we think it is an opportunity , when everybody warned about the chinese and global economy. we think it is an opportunity. worrying does not solve a problem. we have been doing that for years. emily: you said many internet companies will fail. jack: many internet companies have failed and will fail in the future because if they do not change to make the future needs
of internet users. the consumers change so quickly. is difficult, impossible to keep yesterday's wonderful life. what we say is, 10 years ago, who was the most successful internet company in the world? yahoo! i don't know whether it will be tencent or alibaba in 10 years. emily: do you think we are in a bubble? jack: no, i don't think so. a billionmakes dollars in profit every year and everyone calls it a bubble. there are investors out there that say they are skeptical about alibaba, they are concerned about the accounting at alibaba. how do you respond to that? jack: that is their right to do
it. if they want to go short, they can go short. if they believe it, they should continue to do it. we cannot comment on their strategy. people like you, people hate you. i cannot make people like us. we do the things that we believe is right for the customer. ipo'ed, i when we said, we can never promised to make everyone happy. but we will do what we can do to make our customers happy, and then the shareholder will be happy. this is our philosophy. this is keeping us safe for the past 10 years. people like it, people don't like it, that is their right. emily: the united states is the biggest potential international market, you are opening up an office in new york, you visited several times over the last year. what does alibaba in the united states look like in five years? jack: i would say we are very
thankful for the united states. seattle, my dream there in 1995, understanding the internet, there would be no alibaba. without american tourists coming to my city, i would never have learned to speak english. such a wonderful innovation in silicon valley. people say, when is alibaba coming to america? they want to know who his computing with amazon or ebay. we say, we are not going there to compete. if we go there, we want to help the small business. help them do business in china and asia. we have such a huge demand of chinese consumers online. today, we have more than 150 million people even on mobile phones shopping our site. we need good, unique products, which the usa has a huge
potential. but i think in five years, i want our team to be thankful to invest in high technology, investing in startups in the states that are helping them to grow, and helping them to grow not only with money, but helping them to one day come to china. this is a huge market. emily: amazon is also going india. focusing on you are focusing on russia. when do the world's biggest e-commerce companies collide? jack: amazon and alibaba have different models. they buy and they sell. we are a platform. we had 10 million small businesses, 10 million big branded businesses. we believe every company can be amazon. if amazon is a great apple, we are a apple treat. there are a lot of companies .ike amazon on our platform
they are using cloud computing, , ourtical systems payment system. we want to enable every company to be e-commerce. we are not an e-commerce company. i do not think amazon and us would compete. we want a lot of companies to have success like amazon. emily: should amazon be worried? jack: i don't know. if they want to be worried, they can be. bought basically the youtube/netflix of china. daniele on stage with craig, you invested in the "mission impossible" film. what are your hollywood ambitions? jack: it is my ambition in the future -- i asked the people -- now we are good at e-commerce, we are good at payment, logistics. we have cloud computing. i do not worry about the
business, the money we will make in the next 5, 10 years. we are going to survive another 87 years. so what is the business we should do 10 years later? we have to worry about 10 years later. emily: what is the business? strategy -- two h strategy. health and happiness. because of the pollution, we will have some health problems. that is why we have to invest money today. 10 years later, china will have problems and we can use our technology to solve the problems. we invested a lot of money. the other is happiness. look at the world today. are not happy, poor people are not happy, government is not happy. emily: is jack ma happy? jack: i am happy with what i'm
doing but i am not happy with the pressures i have. people should say you should do this, you should do that. i do not have time for myself. i get used to it. but what we are saying is, i want people in china to enjoy happiness on digital products. programs,eaters, tv all the digital content that makes young people enjoy life, to be optimistic about the future. i discuss hollywood movies and the hero, but in china, all the heroes in the movies died. in american movies, they survive. i say, if everyone dies, who wants to be the hero? emily: what are your favorite american tv shows or movies? jack: i like "house of cards." emily: i like that one, too.
roest i liked "forest godfather." i often by the tapes. will you see more content delivered to a chinese audience, are you going to buy a u.s. studio? jack: i don't think they want to sell, and i think it is better to partner. you can never buy everything in the world. emily: have you ever tried to buy a studio? jack: no. with great respect, if they need us, we can work together. emily: what does that mean, how? jack: we can joint make movies, tv series. i could bring them to china and meanwhile bring them technology, open up the markets. we helped the mission impossible
movie. we made them successful in china, enjoying that partnership. to me, i think it is not only h strategy. digital products is the greatest e-commerce, non-logistic e-commerce. ,he thing we are doing today most of the products sold today, you need logistics systems. digital problems, you don't need logistics. we have the payment, the audience. we have the largest entertainment company in china. reach more than 150 million people. a lot of people are spending five hours without not buying anything, so they are having fun.
we can improve on that. emily: some would say jd has more advantage in the countryside because they have an advantage on the last mile. jack: the question is if they can win the countryside. will create more than half a billion packages on our site. than day in china, more -- million -- sorry emily: it is ok, the exact number does not matter. jack: we create 80% of them. in 10 years, we believe every day china will have 300 million packages every day. that means china will need 10 million people delivering. even if you hire one million people to deliver, that is only 10%.
i don't think we can manage a company with 10 million delivery guys on the street. a lot of car accidents. to manage 10 million people delivering things, managing and e-commerce platform, a totally different business. to hire our job is not people to deliver things for us, but to enable all the delivery companies, making sure they are powerful. jd is not competing with us. 10 ande competing with 20 and 30 fast-growing delivery companies in china. it will the scene. we want to have the best delivery guys and the businesses. -- be seen. in three months, we have
delivered more than 70% of packages within 24 hours without even hiring one extra person. today, we have 35 million packages to be delivered all over china every day. think about that. emily: what about media companies. "theve seen jeff bezos buy washington post." there are reports that you could be interested in buying "the south china post." jack: i have to care for my shareholders and my strategy. when something like that make sense? jack: we have in in vestedlot of online media. but we also invest in taditional business, like in hai, invest in the sunni.
we say, if we can work together, we can do better. we want to make an example. if the entire retail store can be better working with us, why not? we think internet and media could be interesting for us to help us understand them, and for them to understand us. we want to set an example. the media toe need help our medium and small sized companies to promote. by the way, our advertisement dollars are huge. that can help the media. media can definitely, using our data, can tell the economy in an accurate way. emily: so are you going to buy the "south china morning post?" jack: i am watching a lot of companies. emily: i want to ask you about counterfeit.
the government has come out to say that 40% of products in china are fake and a lot of them are coming from alibaba. cheap person who was in charge of that -- he was in our office last week. he was shocked by how much we have done for china. emily: how do you measure progress, when it comes to counterfeit products? vendors will say you will take something off and three days later it is back on. china -- weybody in are giving you seven days return if you have counterfeit products. ask all the vendors, if they work with us, if they call us, do not sell lawyers. these lawyers do not understand the business. they do not understand e-commerce. they come here just to say, what
are you going to do? they say, i represent my client. i don't want to hear what you are doing. i just want this done. i think we are entering a new era. china, working with the police station, we arrested close to 500 people last year. we destroyed millions of fake products. years, i may cancel or postpone all the meetings. i have never canceled or postponed any meeting for counterfeits. consumer, if they buy one counterfeit from our site, we lose five customers. that. also victims of we have been fighting for years, but we are fighting human nature, human instinct.
this war has been in china for 30 years off-line, but we are fighting it online. we are also hoping to fight it. we have two solid people working on that full-time. we have 7000 volunteers working on that. with the technology we have, we are making progress. the opportunity is whether we should work together and fight against these thieves. we are running a platform for more than 10 million businesses. we are managing the businesses. they are tiny and everywhere. emily: we know you got your start as a poor english teacher, that you were rejected from harvard 10 times. you are now one of the most successful people in the world. what is the untold story of jack ma, what don't we know about how you got here? i am used to being
rejected. when people say, we will short your stocks, i get used to that. when people say i don't like you, i get used to that. in the past 30 years, my life is like that. if you like me, i am shocked. if you say, i don't like this guy, he is crazy, he does things in a different way. this is who we are. we believe in the things we are doing. people, try to please but we please the people that believe in us, that work with us. one of the things that are not told? i don't know. if you have any questions, just ask me. i promise, i will answer it. how much longer will we see you involved in the day today at alibaba? do you envision a day where you can focus on your philanthropy and karaoke? jack: i do like to sing when i
get tight. been ceo for 15 years. i should be the opportunity for younger people. retiredyears ago, i from the ceo position and became the chairman. but being a good chairman, i am much busier. i was much busier last year. so many responsibilities. but the good thing is, i am not working on the day-to-day operations. i work on strategy, culture, government relationship, and one of the most important things of this company is about the social responsibility. companyverybody in the to have a strong and good heart. we are affecting half a billion people in this nation. every tiny policy we make we affect these guys. we influence them.
i want those 40,000 people, they have a good heart. that is why i'm doing that. philanthropy, i am a good guy, and we need to do that. i do not want to have a group of terrible guys that just want to make money and do not think about society or the community or the environment. this is not the company we want to build. i am preparing for my retirement. maybe 10 years, five years, 15 years. i will get old, i will get sick, and i will die. i am still strong, i want to spend time on the culture and people. i want to pay a good system -- for theood system company, environment, education, everything we should do. i am an ideal person.
shareholders say, i don't want you doing that, i want you to make money. by the way, we make a lot of money. on making focus only money, a lot of company will not invest. we want money and integrity to be together. emily: hopefully we will see you in 86 years, 87 years. we invested in the health industry, we may have a chance. emily: jack ma, great to have you. betty, back to you. betty: emily, thank you for that interview with jack ma, in beijing. jack ma aboutfrom single day and his breakout performance, $13 billion in sales and products sold. now for some reaction to this interview, i want to bring in paul sweeney, who is following alibaba today. the ceo of ad is
computer intelligence company aimed at chinese women interested in buying luxury goods online. paul, -- all three of us were watching the interview. they have had this stellar day but the stock price is down. sounds a say, jack ma little defensive about the growth because there are questions about their future and stock price. paul: this has been a bumpy ride for alibaba since the ipo. that contributed to the decline in the stock. definitely some issues, some regulatory issues with the government, counterfeit issues that emily addressed. a number of significant issues facing the company, some of which is their own doing. the last quarter, they put up some good numbers, the stock
reacted well. looks like they are having a good singles day today. investors are looking for just a theme stability, getting back on board to what is presumably a very good long-term growth story. betty: he says they are in it for the long haul. do not look at the next year but in the next 10 years. brian, interesting stock price is lower today. i don't know how much to read into that, but there are concerns about how much the sales today will pull from future growth. national singles day was kind of a foregone conclusion that it would far eclipse last year. lots of reasons for that. one of the reasons is the rising tide of e-commerce in china. alibaba is a primary player in that. the big question is what happens the next 364 days. a lot of consumers were holding back and waiting to spend in this window. will they continue to spend into
spring season in february, and then through 2016? that is the big question. i am bullish on alibaba. i think they are doing an amazing job moving out of otheral products into areas. but they do have a long way to go in that evolution. betty: certainly an extravaganza. can we play the video? we had daniel craig showing up, kevin spacey, and others, so they made it this big event. there was some illusion there from jack ma, that they could bring this to london, new york. is that something that other retailers they have to watch for? they might. what you have heard from jack ma is they want to take the platform of alibaba from china to a global business. they are thinking -- they are,
in fact, going into emerging markets. they really want to take alibaba globally. that is one of the reasons they listed on the new york stock exchange. they want to bring their brands and services to a global marketplace. this,y really want to do they did it in beijing this year , the first time out of their hometown -- so if they really want to go global, other markets like london or new york make sense. of thatet's play part conversation where he talks about how much they want to grow revenue in the next 10 is. jack: everything we do we have a 10 years plan. 2003, for thed in ali pay, we always say we will judge what we should do to realize our dream in 10 years. so in 10 years, we will reach
50% of the revenues and moneys and sales from outside china. betty: if you look at the numbers now, brian, 77% of their first half sales in china were online, which means they are practically near saturation in the chinese market. brian: i heard three big things in the interview. first, the move away from physical goods into virtual goods. the concept that if i don't have to do with logistics, physical cost, i have better margins. big point for him. second, being a platform and not a retailer. when he talks about amazon or jd , he is saying good luck. we are here to provide the systems or the platform for which everyone can grow. we don't care who the winner is. competee says let jd with the shipping companies. brian: the third thing is the
role of international. he was not necessarily talking about american consumers buying american goods through the alibaba platform. he is also talking about american companies selling into china through alibaba, talking about sub-saharan africa selling into india. he has a broad view of what that means. a big part of that is selling back into china, which, while it is relatively saturated, still is a great market. betty: his interest is helping small businesses develop and sell in china. he wants to be that platform. paul, we all wrong here, when we focus on jack ma and its content? we have seen such a success story at amazon, as a way to drive their prime membership. the question for alibaba is what is the content drive for their core business?
have the because they capital, they are just trying to place their bets. on the content side, is there a way to be a better service to their consumers in china initially, and then on a global basis? we are seeing a lot of the technology companies take a hard looking at programming and hollywood assets in general. alibaba is no different. betty: emily chang, who just sat down with the jack ma, is back with us. i know you have said goodbye. what was the biggest takeaway for you? emily: thanks so much. it is really refreshing to speak to an executive who is straight up, who does not mince words and --questions,on's at least to me, authentically. i said you have investors who believe you are shorting a
stock. he said, they love me, they hate the, i cannot change their opinion. he talked a lot about the future atthe company, and thinks some point, 50% of revenue will come from international. the big question is whether alibaba can stand the test of time. he is playing the long game. he is absolutely playing the long game. curious, being that you have been there for the last few days, how has singles date hand out, and how is jack ma received locally among the chinese? ma is a star, he is a celebrity, the richest man in china. that is how people know him. but he is also an inspiration. we are looking at the numbers rolling in live now. almost $14 billion in
transactions happening on their platform today. ma funny thing is, when jack sat down, he looked at the numbers and said, wow, it is fun to watch. but he actually wrote a number on a piece of paper that was higher than this, so they hope that they can reach that number tonight. referencingave been how the stock price is down today, down about 23% so far this year. when you are asking him that question, it seemed like he was a little defensive. like you said, he said people will love him or hate him, but he will love them back. any sense that they are worried about the stock price, that they need to do something to turn that around? emily: they already have done something, they picked a new ceo in the last year. iny couldn't daniel jong that seat, so they have major
medicaid is. they have put a lot of promotion into singles day. one of the interesting things you said, they love him or hate him, but he says he cannot change their opinion. take a listen to his reaction about my question on the stock price. jack: they love me, they hate me, but we love them. so you cannot stop people from hating you. we cannot take care of the stock price in that way. we have to take care of the results, take care of the customers and performance. because people do not like the chinese economy, they hate us. if they do not like this, they don't like us. we understand. that does notny last for a few years, but 100 years. we have 86 years to go. what is interesting, i asked him at the end of the
interview, what do we not know about how you got here? issue. back to this hate he says i have gotten used to getting rejected, i cannot pay attention to the stock price. i have to focus on my company. time will tell if we are still standing in what he hopes is at least 86 years. he was specific about that number. thank you so much coveted emily, great interview with jack ma. also thank you to brian buchwald and paul sweeney. thank you guys for joining me. let's continue with the bloomberg first word news. we start with the republican presidential debate, someone who .as not president last night vladimir putin, a major talking
point among the top rated candidates. he supports says the russians military campaign against the islamic state in syria. his rivals weekly counterattack. >> i do not know vladimir putin but i know enough about him to know he's a gangster. >> he is the head of an organized crime that is building up his military despite the fact that his economy is a disaster. the democratic presidential hopefuls will debate on saturday. the minimum wage for all state workers in new york will be raised to $15 an hour. governor andrew cuomo ordered the change. new york is the first date to change the minimum wage that high. european authorities say asylum-seekers are turning increasingly desperate as the cold weather approaches. in a boats drowned trying to reach greece. divers are searching the aegean
sea for more victims. 4000 refugees are waiting to enter macedonia. 200 or so are being admitted every hour. dozens of buses are lined up. slovenia has put up a barbed wire fence along the croatian border today. denmark officials say immigration rules will be tightened. the take-up of a jet in japan today could be the start of more than just a routine trip. japan hopes to revive its aviation industry when mitsubishi makes its debut flight. that is a look at our first word news. you can get more of these 24 hours a day on bloomberg.com. betty: thank you. much more ahead on the bloomberg markets. former ceo ofby playboy markets christie hefner. what is the agenda for women in
betty: welcome back, this is the bloomberg markets. it is time for a look at some of the biggest stories in the news right now. an airline strike is grounding 100,000 would-be travelers today. than 900 cancel more flights because of the walkout by its flight attendants. union leaders are fighting efforts to cut costs. according to people familiar, if
pfizer completes the takeover of ceo isn, the allergan likely to run the new company. a combined company would likely split up eventually. run the would then faster growing business of brand-name drugs. lenscrafters has signed a deal to 500cy's to open up optical retail centers inside company stores. aprilrst one will open by with 100 slated to open by the end of 2016. macy's and lenscrafters company luxottica has a deal to place 670 sunglass huts inside macy's as well. you can get more news at bloomberg.com. what is on the agenda of board rooms today, what our top women business leaders making about in terms of challenges and opportunities, particularly in this election year? one woman who knows is the
chairman of hachette beauty and the chairman of playboy enterprises. hefner is here. last time we were together was at the aspen institute. let's start with politics. i know you are involved in your hometown of chicago. , someoneness leader who sits on the boards, what did you think of last night's debate? not happy that there was not a clearer explanation of immigration reform. years ago, mike bloomberg and bill daley will traveling the country speaking to business leaders about how important it was that we solve this. at the time there was a bipartisan bill being developed by marco rubio, chuck schumer, a large group, that seems very promising. now, almost across the board, the republican candidates have not only backed away from that, but taken positions that i think are not only not particularly
, or humanely, motivated, but they are not good business. betty: you mean donald trump shipping 11 million immigrants out of the country? christie: that alone would cost $100 billion, let alone who would pave or the wall. i thought that was disappointing. also the conversation around minimum-wage miss the boat. first of all, we have at a minimum wage for several years. do you not think it should move with the rate of inflation the way that other policies do? if most people were asked that question, they would be hard-pressed to say no. the bigger question is our whole economy is predicated on having a robust middle class. if we have workers, whether they are at a retailer or fast food company, who are on food stamps, then we the taxpayers are subsidizing a broken system anyway. wouldn't we rather pay more for
our hamburger or t-shirt to have people have a living wage? betty: of course, you heard the candidates, like ben carson, who said they are against raising the minimum wage. that is a common refrain in the republican party. christie: i think it is predicated on faulty assumptions. he also said the majority of black youth are unemployed because of the minimum wage. there is no evidence that is the case. the problem is where the jobs are and a misallocation of job training and education, with the job needs. i would have liked to hear more conversation about that. we live in a country where the average job is held for people for about four years. education now has to be a lifelong learning. rethinking the education system to meet that need seems to me to be a pretty big imperative talking about the economy. the last election,
there was a lot of talk about how mitt romney can get the women's vote. the binders full of women. time, christy, it is not inevitable that everyone will vote for hillary clinton either. a woman: we have running for republican, so of course that is not true. betty: how can republicans win the woman vote? christie: first of all, it is a misnomer to think that women are monolithic in their views about politics, the economy, or even reproductive rights. there aree time, issues that disproportionately affect women, paid family medical leave, equal pay, and historically, democratic elected officials -- especially in the last few years, as the republican party has been less willing to embrace its moderates -- have been more upfront on those issues. that is why you tend to see a gender get that favors the democrats. all other things being equal, you would have to predict that
there would be a gender gap that would favor democrats. i would like to see both parties aggressively compete for the women's vote and talk about what they will do to unleash the economic power of women, to protect women's health, to provide the right policies that ,llow for real family stability real family values. do you think, were hillary clinton to be elected that will be a game changer in the view of women in positions of power? christie: you have to say it is breaking a big glass ceiling. we will not be the first country to elect as our head of state a female, so maybe shame on us. if you look at other countries we have maybe fallen behind in the percentage of women in the legislature compared to others. you would have to say it is a big step. betty: before we go, i hate to bring up your last employment --
not your last 1 -- but "playboy" --we had the ceo on yesterday. they made a big change where they said no more naked pictures of women. do you applaud the decision? christie: i have a philosophy that former ceos should not comment on strategy after leaving a company. i don't know enough to have an informed opinion. i would say, when will i was leaving the company and we were able to transform it from an american magazine to a global media company and a global brand, we understood that with the brand represented was the good life, personal freedom, stylish fun, and the challenge today for the company is to figure out what makes that brand relevant to the next generation of consumers. if this is a part of that, fine. but that is the answer they need to come to, and then what is the business model? hefner, thanke
betty: now it's time to get you caught up on all the action around the world. we start in asia where chinese retail sales -- remember singles day. purchases smashing the previous year's record. one big story out of the region was the weak industrial output data. shery ahn has the details. >> industrial output last month match the weakest gains in the global financial crisis. it rose only 5.6% year on year, missing estimates and slowing
for a second month. goldman sachs analyst are among's that predict the central bank will takes further action to further growth. to grow 11% managed in october, beating estimates and seeing the quickest games this year. -- gains this year. at the u.s. look markets, i want to bring in abigail doolittle, who is live at the nasdaq. we are taking a look at two poorly performing stocks here at the nasdaq. one of them is curing greenmount. rig green mountain. otr capital account their rating from negative to mixed amid a sales slump. the firm says promotion for sales2.0 elite machine increased. it has been a tough year for the stock. shares are up 64% year to date, but it is worth noting, shares
also trading at a significant discount to cops on a next 12 month basis, suggesting value investors could be watching the upcoming quarterly report on november 18. turning to another stock deeply , the cyber fireeye security company, shares are down 25% this month after the company reported a disappointing quarter last week. with acommunicated bloomberg analyst about why shares are off significantly today, trading near a record low. he says the company presented any wills con -- wells fargo conference yesterday and reiterated the idea that security is being challenged by u.s. and chinese security relations, but nobody is buying it. nonetheless, shares are near a record low and close to the company's ipo price of $20, set back in 20 13 of september -- september of 2013. betty: abigail doolittle, thank
you. the world of daily fantasy sports is under fire even more. the new york attorney general has ordered fan duel and draft kings to stop taking customers -- accepting customers and people in new york state, .lacing wagers on actual games major league baseball has hired a firm to monitor global sports betting and identify suspicious activity. joining me now is caps off who has written about sports betting , who hassoshnick written about sports betting. there is a lot of confusion about what is sports betting, what is illegal and what is not, and daily fantasy sports. clarify what is the difference? scott: we know that sports betting is a legal in 46 states. daily fantasies, where you assume a roster of players and
how they are statistically performing is whether you can win or lose, and whether there is money involved. daily fantasy had an exemption of being illegal. now that is under scrutiny. that is the difference. hired mark, you have been by major league baseball to monitor sports betting. we analyze trends and we report those back to them to let them minute the integrity of their events. betty: why is baseball doing this, are they one of the first big franchises to do this? mark: baseball has taken a proactive step to understand the markets. they are working with us to understand the markets, understand the movements in the markets, so they can better protect with better information, the integrity of those events. betty: what is the betting right now in baseball, scott? legally betting in the
u.s., $700 million plus. legally, nobody wants to put a precise figure on it, but imagine this. betting is only about 1% of all the betting happening worldwide. betty: so outside of nevada, where is it legal? four states. new york is not one of them. you operate in the u.k., were sports betting is legal. mark: the u.k. has strict regulation, allowing operators to pay proper taxes, to make sure the players are protected. also, other territories worldwide, like australia, has strong regulation. that allows export to monitor those events and make sure they are protected. betty: what happens if you find there is cheating going on, what happens? mark: we are not the police force or the cops of sport.
what we do is monitor, we track, we provide factual information of what is happening in worldwide betting markets. it is the sports jobs to make sure their events are secure. we just held by providing information. scott: what is important, let render what adam silver said a couple years ago. in his view, regulated betting is inevitable in the u.s. if that is the case, whether it is 3, 5, 7 years, how do you stay ahead of it, what do you need to know, what kind of infrastructure can you build up, should it happen? that is why they are reaching out to a company like sportim. betty: is there a sense that other sports may -- states may start to allow this? what they are calling for is federally regulated betting in the u.s., one consistent guideline. that is what this is all about.
we have owners investing in data company that provides betting to -- data to companies in the u.k. whether it is one year or a decade, we don't know, but everyone is in preparation mode. to thatetting back point, illegal betting is worst in which sport? legalsports betting is going by country or territory basis. worldwide, all sports are bet on. it is our job to help them understand the events and what betting is happening. this may surprise you. tennis triggers the most alerts. betty: we have to go, thank you so much. ♪ . .
from bloomberg world headquarters in new york, good morning. here's what we are watching at this hour. $12 billion and counting -- alibaba rewriting the record books on single day sales -- jack ma breaking down the big day and china's biggest e-commerce emporium. round four of the republican debates -- who won and who lost? we've got your bloomberg politics report card. it's miller time for budweiser. gmail --he deed -- the the deal would make them the largest beverage maker. the ted to the markets desk where julie hyman has the latest on the markets. julie: once again, we don't have much direction in this session.
the bond market is closed for veterans day, so that is one motivating factor you are taking out of the equation. all the major averages in the red, but they have been fluctuating in a range due to the lack of a macro catalyst. take a look at my bloomberg terminal and we see energy shares are the biggest drag on the major averages. consumer discretionary shares falling, utilities continuing a three-day winning streak. two-year yields have pulled back until today, when the bond market was closed. anadarko andng anadarko says it did offer to buy rival apache but with through its offer. both stocks fell yesterday when it was revealed anadarko was the .ompany pursuing apache
oil prices, we are seeing oil trading at its lowest since late august. there's speculation that weekly inventories report will show a build in inventories. because of the holiday, that will be tomorrow at 11:00. a drop in oil prices and retailers are still suffering. catalystcy's is the for that. sales trailed analysts estimates. the questions i've seen a lot of retail analysts asking is this macy's specific or is it broader retail? we will get u.s. retail sales later in the week. a huge tumble, down by 13% and concerns spreading throughout the department store and retail industry more rightly. .ohl's is also declining jeffries cut its estimates
related to the warmer than seasonal weather not driving as much demand for cold weather clothing. urban outfitters and nordstrom caught up in this as well. a lot of retail weakness today. betty: julie hyman at the markets desk. let's go to arlington national cemetery where you see the president about to lay a wreath at the tomb of the unknown soldier, honoring our veterans past and present. this is the sick set -- the 62nd annual event. ♪
and business -- alibaba breaking a shopping record with single day sales eclipsing last year's record, raking in $14.3 billion. alibaba enjoying shoppers from all around the world. emily chang sat down with the company's founder on those record numbers. jack: this is a unique day. we want all the manufacturers and shop owners to be thankful and consumers to have a wonderful day. biger wise maybe not a isference, but the meaning getting such great excitement in china. you say you want this to be a global holiday and you want 50% of revenue to come from international. what's the timeline for that? prepared for 10 years. everything we do, we have a 10
years plan. 2003, wetarted in judge how much we should do and what we should do to realize our dream in 10 years. our plan is in 10 years, we will money50% of revenues and and sales from outside china. you and i last spoke on ipo day and it has been a bit of a roller coaster ride for the stock. now it is barely above its ipo price. how do you explain this love-hate relationship investors have with alibaba? jack: a love me, they hate me, but we love them, right? you cannot stop people hating. but we care. stocknot take care of the price in our way, we have to take care of the results, the customers and the performance.
this is what we care about. he goes people don't like china's economy, they hate us. we find people will understand because we are a company. go to proveears to ourselves. today the said chinese economy faces a bumpy ride. many internet companies will fail. what are you most concerned about? china has m josh economy good doesn't mean your company will be good. if china's economy is that, it doesn't mean your company will be bad. believe thedy internet is starting to grow. when everybody is worried about china's economy or the global economy, we think it is the opportunity.
we've been worried for so many years. when you say many internet companies will fail -- jack: many internet companies have failed and will fail in the future. if they don't changehemseles to make for future needs of the changed, the consumers so fast. -- 10 yearspossible ago, who had the most successful internet company in the world? yahoo! whether they will still be like this in 10 years, so we have to worry every day. emily: do you think we are in a bubble? jack: no. if it company like us makes
billions of dollars every year, you call that a bubble? it's a good bubble to have. there are investors who are shorting alibaba and concerned about accounting at alibaba. how do you respond? jack: that is their right. do,hey believe what they they should continue to do it. we cannot comment on their strategy. people hateike you, you, i cannot make everybody like us. we do things we believe right. to, we canhen we ipo never promise everyone is happy. we want to do everything to make our customers happy, our employees happy, then our shareholders will be happy. this is our philosophy.
people like it, people don't like it, that is their right. founderhat was alibaba and executive chairman, jack ma. much more in the next half hour of bloomberg markets. we will look at the winners and losers in last night's republican presidential debate. who did you like? anheuser-busch has finalized its bid for miller. the company is looking to appease the regulators. and we will look at contradictions in u.k. labor data, although stories ahead on bloomberg markets. ♪
completes its takeover of allergen, the ceo is likely to combine the company. a combined company would probably split up eventually. he would then run the faster growing business of new trend name drugs. anadarko will not be making a second run at apache. they say they are no longer pursuing the company after the company rejected it's all stock offer. shares of macy's getting hammered today. the largest department store chain reporting sales that missed estimates. macy's says avenue dropped 5%. one reason was the unseasonably warm weather and mall traffic hurting the sales of fall merchandise. you can get more business news at bloomberg.com. julie hyman has a check on some of the company movers. julie: this time, i'm going to
health care. let's start with horizon pharma, seeing an enormous slant today, down 19% after said it's going to stop using a mail-order pharmacy. says horizon did not fulfill its contractual agreement. overss scripts is suing these contractual agreements and removing the pharmacy from it network. it called linden a captive pharmacy and the notion -- they say the notion it is a captive pharmacy is not true. why horizon is dropping sharply. mankind continuing its losing streak after a -- after an israeli websites in the israeli regulator is trying to block a
share sale. this is after the regulator urged etf's not to buy shares of this company. and finally, boston scientific, thevice used to close off heart -- it looks like it's failing to get broad coverage from medicare, so those shares are down 4%. scathing personal attacks or mud slinging in the fourth republican debate. they talk policy and clashed over everything from how to handle immigration to financial reform. >> would you bail the big banks again? nobody gave you an answer. i will give you an answer. absolutely not. have higher concentration of risk and assets and the capital requirements are not high enough.
if we were serious, we would raise the capital requirements and lessen the load on community banks. for more onng us this is steven yaccino. bushwas a moment for jeb to prove he deserves to be on that stage. do you think he did it? steve: his campaign is out this morning that he did what he had to do. he was more assertive and was in his policy will and able to talk about the issues. he did not back away from immigration, which is something he has come under fire for. about banks and he came right at that. he was more assertive and a little more confident. people are using is that he stopped the bleeding. is that enough to propel him into the caucuses with the momentum he needs? we will see.
his campaign made a call saying they did with a needed to do. the one thing jeb did yesterday was he focused a lot on hillary clinton and barack obama. he focused on the general election and that allows his campaign to come out and say he was the only one focused on winning in november. that seems to be the strategy. he took the long-term, big picture approach. you mentioned immigration. that offered the most fireworks. let's run some of what happened yesterday. have a wall, will the wall will be built, the model be successful and if you think walls don't work, all you have to do is ask israel. mr. bush: they are doing high fives in the clinton campaign when they hear this. that's the problem. we have to win the presidency and the way you win the presidency is allow people to
earn legal status to pay a fine, where they work, where they pay the fines and learn english. mr. cruz: i would say the halle be very different as a bunch of bankers work crossing the rio grande or people with journalism degrees were coming over and driving down the wages in the press. marco rubio will be the most pressured on immigration. steve: right before that line, he said we don't want this party to follow the democrats and be a party of amnesty. that was a subtle but direct shot at marco rubio who has taken some fire for being in the gang of eight and pushing for immigration reform in the senate. did not get asked directly about that last night. rubios a sign of things is going to have to answer. performance, they
he is strong debater, but going to have to answer these questions and he will get a lot more questions about them. hillary clinton had a tweet, her reaction -- can we show that before we go to break? basically she was bored. her communications people on the campaign tweeted right after jeb bush had the line about the clinton campaign high-fiving, they said we actually are high-fiving. betty: thank you. much more ahead on bloomberg television. will ab inbev and that miller day forw more and the rivals? we will discuss, coming up. ♪
from: we are moments away the european close and mark barton is joining me from london. what is on tap? mark: are you a glass half-full or glass half-empty person? betty: half full. mark: my second question today -- what is in the glass and how many of ab inbev and as a beat miller combine 400 beer brands have you tried? betty: probably too many to count. mark: ditto. it is the deal of the day, the deal of the year, $107 billion. we are going to really dig into cio and ourth the chief business correspondent. what is fascinating about this deal is that it's below the 44
pound share price. does that tell us there is doubt this deal will go ahead? betty: it is going to create the largest year maker. who is after them when they combine? and numbernumber one two. you got heineken and carlsberg run i these closed families. we could be here all night talking about this. markets are rising for a second consecutive day. don't forget battle of the charts. i'm ready for you, joe. the european closes next. stay with us. ♪ we live in a pick and choose world.
so your sleep goes from good to great to wow! gift the best sleep only at a sleep number store. save $500 on the veteran's day special edition mattress with sleepiq technology, plus 36- month special financing. hurry, ends wednesday! know better sleep with sleep number. betty: welcome back to bloomberg markets. its 11:30 in new york and in london, the markets are finishing the day. i want to bring in mark arden as
we wrap up the trading day. m&a activity propelling shares here for a second day. the european close starts right now. betty: we are going to take you from new york to london and beyond in the next half hour. mark, kick things off for us. mark: we said earlier that you are a glass half full kind of person and so are european investors. they are choosing to overlook that china adjusted output data and affixed assets investment data and choosing to focus on the best retail sales. i could go on forever. carlsberg shares leading today, vivendi shares slumping after a profit miss. henkel