Hillary clinton and Warren Buffett are sharing the stage this hour. A new poll shows clinton with a 9point lead over trump. The u. S. Has launched airstrikes against isis in libya. American warplanes and several vehicles are in northern libya. Global news is powered by our journalists and analysts in more than 120 countries. I am mark crumpton. Bloomberg west is next. I am cory johnson. This is bloomberg west. Uber wins by losing in china. They sell the business to a rival. We will hear from a board member. Elon musk is closer to combining his two companies. Does the deal makes sense . We will discuss. Surprising the industry with a new device. We will take a look at what the offer is and why there is no test. First, to the lead. After losing 2 billion in two years, uber is selling chinese operations to a local rival. It is a significant tie off. It includes the founders joining uber. Remember, just two years ago, uber offered to invest in the Chinese Company and the company refused. I asked about how he felt on the deal. I think the company, uber has respect for that Market Opportunity and it will likely be the largest ridesharing market in the world. Because of the lack of ownership in a percentage of the population, you may have something similar with leapfrogging and this is an interesting market that we were excited to be a part of. But, the outcome is something that is a win for both companies. Didi is worth more and i think we are. What will the involvement the in the business Going Forward . Is uber going to participate . Are they going to be an observer . A large percentage of employees will be part of the team and we will Work Together to serve that community better. The companys are going to have a closer relationship. Cory is this active management . Are employees going over . What is the management . We are a minority shoulder that shareholder we are a minority shareholder. All i am insinuating is that the relationship is closer and there will be many opportunities to Work Together, Going Forward. This is interesting and a thing that came out is that uber is actually profitable in developed markets. Why is it so hard to be profitable in china. Is fierce competition over the last few years. We have been impressed with what has been done and they have probably been the toughest competition that we have based from the global perspective. So, that is tied into the capital availability that is out there and it has led to the aggressive competition that is leading to requiring investments, rather than profits. It was said in a blog post that, if you want to serve consumers, profitability has to be a part of it. Cory uber looked at individual markets differently. I always talk to drivers about how many rides they give. It seems like uber takes a local focus in different localities. Is that fair to say . Absolutely. If you want to be successful in the local markets, you have to serve the market in a specific way. Cory do you think the didi competition in the United States market, does that change . Are you going to partner with them outside of china . It has not been a point of focus in the deal. I suspect that you will see them working on integrating chinese employees and trying to better serve the community. This is the single largest ridesharing opportunity in the globe and i think you will see us focus resources on areas that are outside of china and we are hopeful that the chinese opportunity will give us the ability to work harder at investing and making products better for consumers and drivers on the planet. Cory which is a bigger deal, in terms of profitability . I think both are equally important. We survey high and opportunity and the lowend. The higherend opportunity has more profit with each ride. A vast majority of the business is the uber x price point and it is half the price of a taxi. This is a pricea elastic market and the demand will surge up words. Consumers rely on this in their daily lives. With products that are complicated to deliver because of the complex algorithms you need, you reach price points that compete nicely with car ownership and you will see uber continue to invest all it can in algorithms that allow driving the price point down. We want to be a price leader in the market. You told me the numbers that you didnt want me to repeat and i wont. But, when you came into the market, there were more cars on the road. It is about changing Consumer Behavior so that there are more rides than before. Do you see this in all the markets you go into . Is it limited . I will share some numbers with you. I think the market is 10 times what it was five years ago. An order of magnitude. I think that some people mispercieve us as a taxi alternative. I think of us on a miles traveled basis. You look at the fact that you do not have basic car ownership and this will be the way that you solve massive transportation problems. By the way, it creates more efficient cities. When you build a city for car ownership, houston has 3. 5 Parking Spaces per car. You cover most of the geography with cement. Cory that is the view from uber. What about the other side . Lets bring in an early investor. We are joined live with the context on the asian ridesharing market. So, let me start with you. I will let you take a victory lap. It is interesting to me that the notion of this deal changed. Uber offered to invest in didi and now, they are spending 1 billion to get it. We were involved in a deal in 2005, as you know and, by those joining forces, they became over 200 billion in market cap and time and time again over the last 10 years, this is been instrumental in getting some of this to happen sector by sector happen, sector by sector. We have seen this in companies and we think that the structure will make sense. We are promoting a deal over the last 12 months and it is very gratifying to see that has come around. Cory yeah. Let me ask you. Kind of the same question, uber was attractive. Rather than taking the money, they wanted to take the business. Yes. Exactly. What was happening in china was that investors were getting involved in a massive transfer of wealth with investors and drivers and there have been lots of press releases to talk about how many they employed, former soldiers, so one and so forth. Of course, this is part of the spin. There is a reality to that. The feeling was that they were always going to win and it was whether or not uber would have enough to sustain them. It is a winnertakeall business model. If you want a car, you want the one with the most cars and you are not going to mess is rarely open up to you are not going to necessarily open up two apps. Cory did i hear a yes in the middle . Do you agree . One of the founders of uber, and 2013, they were dominant and the deal would have made sense. It was too early for uber to think about Something Like that. A chinese startup deciding to move and expand, they work 24 7 and, if a u. S. Company wants to come in, they have to get in earlier. If it is too late, it makes sense to pull out. Cory i am struck by the similarities of the yahoo and alibaba fight. They finally gave up and they created a wealth of valuable assets. Do you think that is the specific model here . You think it is the kind of model we will see Going Forward . What we are seeing is the internet disrupting industries and they start with retail and you are seeing ridesharing with the automotive ownership and existing services. The efficiency is critical. Car ownership and Traffic Congestion in china, it is terrible. China can go the route of japan, like tokyo or osaka, with lots of subway lines. China has 10 lines each decade in beijing and shanghai. To get to tokyos level, it will take 40 years. Ridesharing is critical to complement the existing public strategy. Ridesharing has officially become legal. How will that be implemented, that is a general question. Thank you both for coming. A really interesting story. Glad we could dig deep there. We will dig into the expansion plans of the alibaba financial arm next. This is bloomberg west. Cory the most bible Chinese Financial Technology company is a mix of many things rolled into one. With me more to focus on this market is cheryl. Talk to me about this. Can you explain what the businesses it is a collection what the is this is . It is a collection of things. But it is hard for investors to wrap their heads around the company. It does not fit neatly into a bucket. A good way to think about this is that it started off as an online payment processor for a commerce giant and it even talked to include Services Like banks and credit scoring companies. One of the nations largest money market funds is also included and it spun out into a financial of elliott of financial affiliate of alibaba. Cory the notion of Payment Systems in china, we talked to bill and we are at a point in the marketplace where the market is superseding it. Mobile is an Investment Technology and we saw that most chinese cannot or do not own personal computers and Many Americans own personal computers for work or home. What followed with that is mobile payments here in the United States. We trailed that and we have things were continuing to use. Cory does this mean it is trying to bring the west east or the east west . They hired douglas, who has been at goldman, and i spoke to him. The International Strategy is twopronged. The first is to follow the Chinese Consumer and go wherever they are going. They have users and they want to make sure that, wherever they go, they can get paid and the second part of the strategy is going local and requiring local brands working with them. They did a deal with a big indian payment platform. It is the conversation you just had with uber. One company is domestic and you need to adapt to whatever is happening. Hiring somebody who is local is important. If they want to come to the United States, they need to hire people who understand the regulation and how consumers transact and how Small Businesses expect them to do the payments. Cory does that mean that they will make partnership deals and that that is more important than other kinds of investment . At that stage, they had visions for world domination. It is not to happen. We do look at vision and if the entrepreneur has the vision. If they add value, how do they bring it to a global market. Normally, when you invest, it was an Israeli Company and we wanted to address the u. S. Market and how to do that. Cory cheryl chang, thank you very much. We are turning to another agreement to buy a startup. 582 million in stock. It was founded by a former facebook cto and he was an early investor. Later this hour, on the forefront of experimental medical research, could a computer chip in the brain restore organ function. Google is partnering to investigate the brain. Cory now, etsy rose, after new this is bloomberg. Has an analyst says he developed a strong brand for his quirky products of taxidermy squirrels and the like and should be considered in a new category. They will report on tuesday. Coming up, elon musk is a step closer to combining two companies. We will break down the tesla merger. If you like bloomberg news, check us out on the radio. You can listen to us on the Bloomberg Radio app and at bloomberg. Com. It is all there, all the time. This is bloomberg. [hip hop beat] olympics 2016, let me get you on my level. So you never miss a moment, miss a minute, miss a medal. Why settle when you can have it all . Soccer to wrestling. Track and field to basketball. Fencing to cycling. Diving to balance beam. All you have to sa is, show me, and boom its on the screen from the bottom of the mat, to the couch where you at . Show me the latest medal count xfinitys where its at. Welcome to it all. Comcast nbcuniversal is proud to bring you coverage of the rio olympic games. Hohey s woiit ghong, estcak . Hoestcak. Th lais p hceotas hkeca hyso wn arett ey llsekeg lica hotkes . Cwithstomcain business tean fid wi, pro cthey bould e. Ju ddst aus a czetomid ey age yltowiour rofi pas splgeh pa an ud yo ll yeastr cusomerer wheie thesr ey a aredylrea ju ddst aus a czetomid ey age on dheiresevic pas splgeh pa. Or upder. its hare tstn jui, wif c itelan howp grr younebusiss. U ydone t se ethat dveryay odintrg ucin pwifiwiro, fi hthatelyorow usur bs. Ines ascomct. Ness t builbufor sssine top stories this hour, accrued selloffnks ahead of thes on albes fiscal stimulus plan. U. S. Oil hovers around 40 a barrel. Early trading in hong kong has been suspended. The yen weakened after japanese finance ministers says rapid generations are not good for the economy. Meanwhile, an mp from a Junior Company says the fiscal stimulus package to be unveiled today includes 132 billion in budget measures and will boost gdp by 1. 3 . The aussie dollar has retreated on bets the rba will cut Interest Rates at todays with chances of easing at 73 . The final piece of data saw australias june trade deficit blowout to 3. 2 billion as exports fell. Global news, 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. This is bloomberg. Lets get the latest from the markets and go to david ingles. Have a look at the aussie dollar. Its a two day chart, physically flat at the moment. That means you can expected to it to move. Ct these yields in australia have a look at the 10 year. Have a look at where the twoyear is as well with the deals on the way down. 1. 4 to 7 . The twoyear is also down. How look at 10 year treasuries just above 1. 5 . These are what the stock markets are doing. We are mostly seeing declines, so if you are waiting for enough data on whether you need to trade in hong kong, it is signaling lower. You are basically off the hook for today. As you can see we are also counting down to the 10 year jgb. Ine a look at this bik spike 10 year yield. To zero level. 3 that comes ahead of the auction. The last auction had a bit of collaboration, 3. 67 . The average high was. 3 . We are looking at declines. Cory this is bloomberg west and i am in for emily chang. Elon musk is one step closer to combining two of his companies. Although tesla still has to approve the deal, there is nearly 3 billion in debt. The news caused smp to warn that they could cut the credit raining. Breaking it down for as is the Senior Scientist at Argonne National laboratories. Thank you for joining the show. It is always awesome to be on with you. Lets start with you, george. You have been working on Battery Technology and you have pointed out that solar is advancing at a faster pace. Will Battery Technology advance as fast . You look at the history of solar and it was at the same place that storage is. It was too expensive and the upfront costs were too high for most customers. China started producing solar cells and it went way down and the new Business Plans emerged. Solar city is one of the pioneers. You can get the upfront cost paid and it is painless for the customers. The deal could be a breaking point that opens up some new horizons. Cory i remember bill gates saying that moores law works with yours and not bulldozers. When you look at this notion of anything adapting with moores law, should we just go on the hope with the expectations of what is possible with a deal like this . I do not know that the deal will depend on the accelerating pace of technological change. George knows more about this than i do. I am skeptical about the ability for batteries to advance quickly. We have been looking at them to advance and they are not advancing at a moores law type of pace. It is elon musk with pixie dust justifying that combining one and one will make 2. 1. He will not get to three. It might he 2. 1. I want to go through the circumstances of this deal. Solar city is losing a lot of money. The company lost over 200 million in the Free Cash Flow and, if you look at what is happening, tesla has a couple of tons with the Free Cash Flow and they blew through 467,000 and a quarter. You are looking at a company that blue through over 600 million in Free Cash Flow for every single day of the second quarter. You look at a deal like this and how can you say that the financials do not matter, if they are burning through so much cash that they have to bring in new cash . Thank you for having me. The expectations matter and elons masterful in setting expectations. It is the end of the year and it will be a vague number. The model will be a big number. It will be three times what we said, initially. To go back to the point of economies of scale, this happens to be celebrating a grand opening and it is finally getting to a point where it is up and running and he is trying to harness this idea of factories coming online and he said this up for the markets to raise capital. The question was, how much capital do you need and how do you get it . You are right to tie that together. Cory this is why i wanted you on the show. You are an analyst who does not work for the investment bank. Every analyst with love the opportunity to sell some of the stock to raise money for tesla. It is an interesting point and i thank you for having me. What i would say is, with the anticipations that the model will be successful, that is better than we thought. They have a lot of investors getting to Free Cash Flows and you add some of the same problems that we know tesla motors to have an it is only a bigger obstacle in the near term. Cory and 30 seconds, can you give me a thing that is the toughest for the battery factory to overcome . The opportunity is bigger than the challenge. I like the optimism. The hope is that this will maybe be 50 and it would go a long way to making the solar panel story and i think the opportunity is there. Cory interesting. David, you are going to stick with me. I appreciate that. Today, in the funding board, microsoft raises over 20 billion and they hope to finance a planned purchase of linkedin. It is clearly one that is greatly in demand. The Company Lands to buy linkedin. Can electrical signals treat parkinsons disease . Cory shares of Caesars Entertainment raised on monday. The Company Makes casinostyle online games. Elliott gotkine has more. Gambling is illegal. Have always insisted that they are immobile gaming company. They make the kinds of ones you would expect to see in a real casino. You cannot gamble on the outcome. There is a price being paid that is a decent chunk for anyone. If you compare this to the 130 million initially paid for five years, there is a return on investment. Many people suggest is that the best deal. They remind you of the yahoo situation. There was the value with the market and it seems to have happened with Caesars Entertainment. Elliott gotkine, bloomberg. Cory diving deeper into experimentals. Gfk will focus on Bio Electronics. They will have more than 700 million of investments and Bio Electronics is almost literally mind blowing. Were joined right now. But start with you. This is a big investment for any company. You think about it over seven years and they have to run trials and the trials are expensive. It does make sense. Are these medical devices, can we make the distinctions . We should think about it this way. People will use medical devices to treat this. If you start thinking beyond the traditional devices and you look at the new technology, the distinctions become more blurred. There are many other fields that can be used with the energy. Cory at gsk, they are looking at organ control. Google, going into this field, is it too far . I do not think it is. It makes sense that google would go in a direction like this. The thing with google and larry page is that they believe that Information Technology expands our knowledge of everything. We do not know much about the human body. We have been treating diseases with a primitive set of tools, pills week that we do not know what they do in the side effects. Electromagnetism is a set of horses that will be shown to have more impacts on the body and substances we have been taking. As time goes on, we will learn more. We have data that we are accumulating and i think that this is probably an area that will become one of them warm were in areas. This is clearly a thing they believe. I think that it is exciting and that electromagnetism prove to be beneficial and achieve life extension. Cory all of us want that. We do not really talk about it. Can say that about me. I can take it. I think it is interesting that they are picking them as a partner. Absolutely. They had to take a decade to bring one of these devices to the market and they are thinking ahead. Drug companies have to have new drugs or devices. Does china versa five and have their finger in multiple parties . Do they have something to continue growth . Cory if you could have access to the data that collects, what would it be . This is a challenging question. Thank you. That is my job. I think that we would be more interested in getting data on the properties of the biological tissues. We would start using that knowledge to design devices in intelligent ways. The tools we are using our like a hammer to pound on a p l and we need to play the keys of the nervous system. Cory when you look at the applications, where do you expect breakthroughs . We will likely see those breakthroughs in areas that relate to the peripheral nervous system and i would think that it is largely Regulatory Approval and it is a little easier to get angst through in the periphery, rather than in the Central Nervous system. I could be entirely wrong. It still exists and they are starting right now and they are looking to implant devices to treat diseases like arthritis. I imagine that this continues and it is in parts of the nervous system. Interesting. Maybe outside the brain. Very interesting. Thank you very much. Caroline, you have a story here. They have been slapped across the race and they found a new device. Today, they were presenting at the annual meeting in front of live experts in this is the first time they were doing a presentation of a Scientific Meeting and everybody expected them to explain the technology. They faked the results and they were not actually using the technology the whole time. They have been sanctioned and they have a lot of problems out here and, what happened today was a new product that took a lot of people by surprise and it showed the innerworkings of this technology and they opened a lot of new questions. Now, investors are like, we would like to see more on this. They are, look at this new thing we are working on. That is what happened today. Fairly amazing. It is. They have published Journal Articles and they are going to open up live experts and there are a lot of problems and it will be interesting to see how they follow through. They have been sanctioned and it includes labs and they have 60 days to appeal. This could be a way they get around that. Someone else got it. Maybe. Thank you for crossing the aisle to talk to us. Tomorrow, the council of former relations of Foreign Relations president here. This is bloomberg. After winning a bidding war, another deal is only getting a fraction of the attention. An irish gps company with 60 a share and a 40 premium. We keep track of where the fuel level stand and how fast it goes. Another big of tech earnings. We will hear from electronic arts. Well get linkedin reports. Reporting on thursday, one thing we have learned about is a change in a reporting structure and there are new guidelines. This is important for new markets. This is predicted to fall from year over year with no major game launches. We will bring in the revenue every day. Now, to a story of pokemon go. This game has not launched in russia yet. There is an estimate that there is a sevenfold increase in moscow in the last week. They trick the phones to think they are in different countries. They want to capture cultural and historical figures like ivan the terrible. Tomorrow, we have roger. That is all for us in san francisco. This is bloomberg west. Oil slides into a bear market. Renewed fears of persistent oversupply. Crude is trading at levels last seen in april. Rishaad japans latest plan to revive the slumbering economy. The new plans for stimulus. Yousef lenders are discounted loans to ease liquidity