Its start with you, emily, because you will imitate you will interview jack ma later this morning . I cant wait. Do when he do we know any more about him . He certainly showed his personality. He has a lot of charisma and is a funny guy. We saw that come out of the roadshow. He reiterated customers first and employees second and investors third which has investors saying why should i give you my money. His answer to that is what that when alibaba went through hard times and this is their second time going public but it did not work out, this is their second chance. Time and left at that customers stuck around and thats what customers come first to him. I want to know what happens next. He stepped down as ceo a few years ago and has other interests like a private equity brand withtqai chi jet li. I am curious as to know how involved he will be. Like it underscores a little bit of this gathering comfort among u. S. Global investors. And a big Chinese Company certainly, there have been many questions about the Corporate Governance structure. Over the last couple of weeks, people have gotten more comparable with that structure especially as they have gotten to hear from him. On the other hand, some of them think they have no choice. They just want appease of alibaba which is so big and has a much potential. They believe they have to get him. They all want a piece of the china growth story and this is a way to play it. China is the worlds secondlargest economy after the United States. Its a managed economy which means the Chinese Government sets the growth targets and they usually meet those growth targets. Ands well managed choreographed. It is that middle, it currently consists of 40 of chinas 1. 30 6 billion population. They are really growing. In the terrified city has a lot more power than those in the tier one and tier two because they are spending more online. Coming up on . Why are they doing that . They never had access to some of the branded goods that they can afford. The more west you go from beijing and shanghai, they dont have the retail infrastructure and some of these more rural communities. The online marketplace created a place for people to buy that never really existed before. We have both lived in china so we know how ingrained elliott, how ingrained alibaba is. 80 of all transactions in china go through alibaba and that is growing. If you think that alibaba is n indication of chinese growth. The internet population is growing so currently, half of chinese users are on internet. That is expected to grow to 85 625 by the end of next year according to government figures. China is trying to shift from the manufacturing economy to a consumption driven economy. Guess what . As it is, china compared to the United States as a percentage of consumption to gdp is very low so there is so much upside. 80 of the more than ecommerce transactions go through alibaba. More than ebay and amazon combined. So what is left . Thate of the challenges is more people in china have money and more of them are on the internet and on funds and ken alibaba dominate mobile . . 10 is another huge conglomerate in china is arguably a mobile first company. Ken alibaba continue to grow as fast as it has . Jack ma is going where . He is going to a big lunch with a lot of highprofile people. Jamie dimon the jpmorgan and larry think of blackrock will be there. He is going on quite the world tour and will be going to the Clinton Global InitiativeEvent Next Week where he will hang with the clintons, presumably. Everyone is hobnobbing. The bestoadshow was type of marketing event for them. Sign that he wants to expand in the United States and he needs to build these relationships. People want to build relationships with him. He is the new it company. Thank you, guys. Dont miss emily changs big interview with jack ma, the chairman of alibaba coming up at 9 00 a. M. Eastern time on Bloomberg Television. Are you getting your iphone today . I am. I carry a few devices but the feeling of a new iphone is exciting. I have not gotten to touch it yet but i am excited to see what the big screen is like. What color did you get . I went with gold. I have a black one now. I will wait until christmas. It is the end of an era at oracle. Ceo Larry Ellison said he is stepping down from the helm of the company he founded almost 50 years ago. He has been replaced by two company loyalists. sey will take over as coceo and they were praise yesterday on the conference call. They deserve the recognition and they deserve the ceo title and im happy that her Management Team continues to look forward as a team. Bloomberg west editoratlarge cory johnson followed the story since it wrote yesterday. Larry ellison will stay on as the chairman and chief Technology Officer. Is this kind of window dressing at oracle . I think the transition has been underway for quite a long time. That katz will have is the role she has had and the Job Functions will remain the same. Larry is still the largest chair shareholder and chairman. The chief Technology Officer thing is important. He has always been very deeply involved in the trenches of the technology the company has developed and in later years, the technology they acquired. Executives of companies hes acquired and he said one of the things that happens is he talks about product and identifies unique technologies in some of the companies hes acquired. To focus onants this technology and price it for the customers and talk about how it will work. This is a guy who has always been focused on the technology that the Technology Behind this is what has driven this company. There was the true powerhouses in global business. This new structure, the ss, it makes me question why you need two people to do the job of one. That know and peer clear the performance of two ceos is sometimes better than one ceo and these are tough people. Atz is known for her sharp elbows and mark hurd always seems to come out on top. After a scandal of hewlettpackard and he showed up as oracle as the president and survived and did quite well. The company is also going into this structure into a very difficult environment where they ,re losing sales to competitors new competitors like workday, much Smaller Company and salesforce is much smaller. These are companies that are having success with Product Offerings that oracle cannot match. Oracle likes to talk about Cloud Business but the fundamentals of the company is swinging iron and selling hardware and selling software inside of that in the long term packaged software deals. This change in the way that software is purchased has created opportunities for their competitors and its something that has stunted oracles growth in recent years. Thank you so much. It was the vote heard around the world and scotland rejected the independence. 55 voted no while only 45 voted yes to break away from the u. K. Anna edwards has more. The vote was not as close as some expected. Yes, the poles were suggesting we would see something very close just a week or two ago. In the days running up to the vote, things have gotten calmer in the polls and we were seeing some coalescing around the number 52 for now. It turned out to be a stronger no turnout. The later poll suggested the final number was 55 no and 45 yes. It was a strong turnout, a british recordbreaking turnout which is why many people are talking about this being a victory for democracy. The u. K. Will not be the same place again after this. David cameron had to reaffirm divulgeitment to further powers to scotland but he had to go further and talk to the rest of the united kingdom. He called the english the silent voices in all of this. The english and the rest of the u. K. And wales and Northern Ireland had no say in what was going on in scotland. That left the feeling of instability. In some parts of the u. K. Can we saw expressions of discontent. Perhaps we needed to have more deevolution of power. It was not really a complete loss for the proindependent side, right . By mr. David cameron will be promising more power. Absolutely, more power in terms of being able to tax the way they want to and spend the way they want to. They are a have some devolved powers from westminster but westminster still maintains the right to overrule some of the decisions made here in edinburgh. That might be addressed. They can talk about justice and but there are sets of issues they can run from here. Thank you so much. Coming up, it is the hack attack that was bigger than people thought home depot talks about the big data breach. Alibaba maybe the exception and not the role and american investors are not 100 comfortable with china. We will talk about this with pulitzer prizewinning author who is a china expert. Interviewiss the big in the next hour with alibaba executive chairman jack ma from the floor of the New York Stock Exchange. Just ahead of his companys public debut today. Nearly 22sed billion in its ipo yesterday and priced at the top end of the does that warm reception in american investors are comfortable putting their investors in Chinese Companies even after a spate of accounting fiascoes including short seller carson locke and his discovery of the huge irregularities at sino forest. He told a group of students in new york last week that we have a pulitzer prizewinning author with us to talk about this. She has also worked in finance at Goldman Sachs and i was a senior managing director at vinmar securities. Her new book will be published next week. Rate to have you join us. Good morning. What do you make of the comments of carson block that if alibaba because its so big, if it wanted to defraud investors, it absolutely could. First of all, i have no idea whether or not there is that suspicion that it would become true. It is such a Large Company that its very hard to understand the entirety of it. There is a lot of vagueness in the numbers and the description of the ipo. We really dont know. Lets give it the benefit of the doubt and assume there is not that much opportunity for fraud. Absolutely, investors going give the senior Management Team there fulltime that the company is running efficiently and going to grow. Which is the issue issue of other Chinese Companies do u. S. Ler investors know what they are buying into when they buy into a Chinese Company like this . Well, no. There is not any way to know for sure what you are really buying. Hasink alibaba certainly distinguished itself in many ways from the other companies that have been listing in new york but also delisting over the past few years. When you look at alibaba, it has 86 of the Online Ecommerce mitered in china market in china. Thats an amazing feat no matter who you are. It clearly has a solid business. It has been able to expand and away none of the other Chinese Companies have listed before have gotten to that largesize in the ecommerce market. The fact that this ipo did so swimmingly for alibaba and the fact that they raised their price range, does this tell you and Global Investors particular in america that people are more comfortable investing in Chinese Companies . I dont think that alibaba really is representative of all Chinese Companies. Its an unusual case. Its one of the probably the only brent, the first brand in china is becoming global. Name, its a very magical name and not very chinese. In some ways, it is has been able to lul investors to thinking theres a pot of gold side but we really dont know. Are a lot of reasons for caution. What is your number one reason for caution . If you look at, what it is right now, its got 86 of the market in china. Haveit goes ipo, it will 170 odeon dollars in market capitalization. At the rategrow that a lot of investors expect in order to get a really good return . Compute a 10 annual return over the next 10 years, it will have to have a share price of 188. That is reasonable. Look at netflix and how it has quadrupled in the space of 1. 5 years. If you have to look at the earnings they will have to gain, and then the market cap it would have to game and get to that size, that will be pretty gargantuan. The Growth Prospects will be extremely formidable for alibaba. Price, if it issues more shares to expand, it will probably issue more shares, if they issued 25 more shares, that will give it a market cap of Something Like 500 billion dollars. How Many Companies have that kind of market cap on the stages in new york . You are looking at Companies Like exxon or Something Like that. Same, exactly. E can it really grow that much . 86 in the market in china is what has. China will grow in the ecommerce market will grow but it will have to expand globally. Alibaba has been extremely agile in china. Thank you so much for joining us. Coming up, new numbers out an obama giving both parties something to argue about over medicare. We are waiting for alibaba and its public a beauty day. 22 billion was raised. You are watching in the loop, i am betty liu. Telefonicas buying their broadband unit in brazil and will pay about 9 billion. Telefonica hopes to challenge competitors. The deal will boost telefonica shares market share in brazil to about 30 . Isman software at giant sap buying concurrent technology. Share topay 129 per help employees manage their expense accounts. Its the biggest deal for sap which is looking to expand its Cloud Business. Flight was forced to make an Emergency Landing yesterday when the cabin filled with smoke. The plane carrying 140 seven people from long beach, california to austin, texas experienced engine trouble minutes into the flight and was forced to turn around. Three people were treated for injuries and the one was taken to the hospital. Ceo will bethe retiring from jetblue. Hour 26 minutes past the which means Bloomberg Television is on the markets. Equity futures are slightly higher. We are waiting for the debut of alibaba. We seem to be sort of floating onto this rally that has started midweek after the fed came out and said they would keep rates low for the considerable future. We are on the markets again 30 minutes. Republicans continue to speak out against the president S Health Care law. Nook Government Data is likely to give them more reasons to complain. Seven point 3 Million People who bought health plans under the Affordable Care act have paid their premiums and are still enrolled on october 15 but that is nine percent last than the governments previous estimate which did not reflect how many people had paid their premium and were actually being covered. Joining us now for more his former New Hampshire senator judd gregg and bloomberg columnist peter or his, the former director of the cbo and also the omb and is now the chairman of the Investment Banking at citigroup. Thank you both for joining us. Senator, i know you will be at this event this weekend and the both of you will be at the event in dartmouth. We are talking about how to bring two sides together to continue to promote Health Care Reform in the United States. There are continuing questions still. The republicans feel they are still not adding enough transparency on healthcare reform. Probably true but thats not what we are meeting at dartmouth about. What we hope to do it dartmouth is bring together leaders in Public Policy and Health Care Policy with staff of the senate and the house, senior staff, on both sides of the aisle and try to come up with a few targeted ideas with both sides can agree on. Hopefully, it will bend the cost care in the out years particularly with medicare. Medicare is driving our fiscal problems as a nation and health care is but medicare is the key component of that. But hope to come up with some areas where we can agree. Those to, we can use move to legislative activity which will put in place better Health Care Policy that is more affordable. I think its the right approach. There will always be a fight over obamacare and its a major struggle of philosophy and execution but we are trying to find common ground. Peter, i know you have done research on medicare yourself and wrote a column recently for Bloomberg View about it. You notice this trend that medicare spending is actually slowing down, is that correct . Yes, its a pretty big deal. In the first 11 months of this fiscal year, medicare spending was up only 1. 9 nominal. View take inflation and beneficiary growth, real per beneficiary spending in medicare is lower this year than it was last year. That is a massive thing. If it were to continue, it would have really big implications for the federal budget and for lots of other parts of the economy. The key thing is we need to double down on moving away from feeforservice payment in order for it to continue. There are lots of good things happening in health care. But a lot of this slowdown in my opinion is based on the expectation that we will move away from feeforservice payment and we have to for the lead expectation. Do you expect that slow