He spoke from the salt conference in las vegas. If the economy has the underlying strength to maintain a basic momentum of growth at a 2 real rate, plus a 2 inflation rate, the increasing awareness of that in markets is going to act as a restraint that keeps medium and longterm yields low. Emily summers also spoke about china, saying he sees growing frost in chinese stocks. This shanghai composite index had its worst threeday performance 2013. Blackstone has raised 17 billion in initial funding for its latest buyout from according to people with knowledge of the process who say fundraising will continue. It is already one of the largest funds raised since the 2008 financial crisis. The forprofit College Industry continues to implode. Last night, Career Education said it will close or sell all of its colleges to focus on its two universities. Is closing its 15 our campuses. The feds have been cracking down on the industry, leading to the collapse of Corinthians College last week, amid all allegations that it falsified grades and job placement. Lumbar suspended sales of laminate flooring from china. This is so a special committee can study the supplier certification and processing. They allege they sold floors with excessive levels of formaldehyde, a known carcinogen. Now i want to get to some breaking news out of yelp. Lets get to cory johnson who is standing by. Dow jones is reporting that yelp is seeking a potential acquirer. Pretty dramatic as the company was ipo to a couple of months ago. Seeking a potential sale. That is a huge deal for the company. The stock has been halted in trading right now because it went bonkers the second after the deal was announced. They took a big haircut from valuation standpoint recently after a disappointing quarter showing slowing growth across a depth a bunch of different business units. Evaluation of the company, which was once as high as 6 million, is now down to about 3 billion. That valuation number went up quite a bit couple of seconds after the story hit the tape and the stock jumped from 39 to one dollars. We will see where that comes out once they can sort out the sell and buy orders. An interesting time as yelp has had a lot of success selling ads in local markets. It is one of the holy grails of internet. How can we get our andd dollars going to local businesses . Growth is down on a yearoveryear basis. The information they have gathered the encyclopedia local information, might be valuable for any number of acquirers. Emily not to mention a number of companies have been trying to eat their lunch for a long time, no pun intended. When you search any restaurant online with google sometimes the google reserves results come up first. Cory we can only speculate and certainly google has offered a Similar Service but local information is valuable to a lot of companies out there whether it is the yellow pages facebook , who is also trying to have a presence in local advertising. Even microsoft is trying to do something similar. Indeed, microsoft has had a competitive product before there was even a yelp. It is also worth noting that this company is profitable. They are hitting the point where they are turning profit, about 8 million in profit. The stock just opened up again and i use the word bonkers. It is now up 14 in trading. They added 200 million in the last couple seconds here. An Interesting Company and could be an interesting asset or any number of acquirers. Emily 3 billion market cap give or take. We will bring you any updates on yelp as we get them. I do want to get to our lead for the day. Alibaba makes a surprise announcement. Daniel zhang has been named the new ceo, replacing jonathan lu. The chinese ecommerce giant announced it earlier where revenue was up 45 and the company turned a 464 million profit. While shares are up today, alibaba has seen about 90 billion wiped off from its market cap from november. There are concerns about the companys ability to drum up International Revenue as the chinese economy slows down. Chairman jack ma Just Announced a hiring freeze and there are worries about their relationship with the Chinese Government, who says alibaba is not doing enough to crack down on fraud. I spoke with a new ceo, daniel zhang who went from cfo to coo and now ceo. I asked him what he plans to do differently and whether the Management Team will begin to stabilize. We changed some leadership. We believe today is the right time for us to bring Younger Generation to the leadership. Alibaba wishes to live beyond 100 years. This is a long journey. We need Young Leaders in the company. Emily how will you bring more young talent into management roles . If you look at our key business units, all the leaders are after 1970. We also try to bring more 19 80s, 1990s generation to the middle class level, finally to the leadership level. We believe the foundation will be the foundation for our future growth. Emily jack ma says he wants 50 of revenue to come from outside of china. Currently that is more like 9 . What is your target for that number this year . Improvisation is one of our Core Strategies in the future. We start with our crossborder strategies and we sell to chinese consumers. On the other hand, through our express retail platform, we help chinese suppliers sell to the overseas customers all over the world. At the end of the day, we want to create a global buy and sell platform to serve all merchants and consumers around the world. Emily so if it is 9 now coming from international, what do you want the never to be . The business from international will continue to grow. Now is just the starting point. Emily what kind of countries can we expect to see alibaba popping up, where can we expect to see a greater presence from alibaba abroad specifically . Today with our retail platform, alibaba express, we sell a lot of goods to developing countries like brazil, russia. In those countries, Consumer Products are very expensive. We are helping chinese suppliers sell to them but we will be hoping more in the future. On the other hand, we will participate in the growth of certain countries through investment and emanate. We will try to help the young generations and on figures in young countries to do their own business. Emily how do you plan to do that . We have a very Clear Strategy of localization. Today, we start with crossborder. Then we will go further to build a global network. To date, it is just beginning. It is a long journey for globalization. Emily we have heard about the hiring freeze, capping employees at 30,000 today. How likely would layoffs be, if they are a potential next up . The headcount freezing news is largely missing for interpreted misinterpreted by the market. We have a new policy but we will definitely continue to hire new people and replace those underperforming employees. The purpose of this is to improve our efficiency. We did the same thing two years ago and gave us very productive results. In five years, we have a dream that we will have one trillion u. S. Dollars gdp. Jack said to us, that date, the headcount should be 50,000 people. So today in good times we adopt the policy to encourage efficiency. We are prepared for future growth. Emily the Chinese Government has made some pretty harsh accusations against alibaba about knockoffs. What is your relationship with the Chinese Government right now . Like all Global Companies alibaba as transparent relations with the Chinese Government. We share our plans of Business Development and we also address their concerns. We do everything we can to make sure all of the businesses on our platform are in compliance with the laws and regulations. Emily i mentioned since its peak, alibaba has lost 90 billion in market value. I wonder, from your perspective how has life changed since the ipo . We do what we have been doing for the last 15 years. We manage our business by creating value for our longterm customers. We do not want to manage the business by Revenue Growth and longterm margins. We believe if we can create value to the ecosystem, we can enjoy rapid growth and will be recognized by the market. Emily daniel zhang the incoming alibaba ceo effective may 10. Coming up, trouble at the nsa. A federal Appeals Court finds phone surveillance illegal, month before lawmakers decide whether to amend or extend the program. Emily lets get a check on your Bloomberg Top headlines. The clock is ticking or greece. Ecb officials want to see progress at mondays meeting or they will consider curbing their access to emergency cash according to officials. Another official says next weeks meeting could hinge on whether greece makes an 843 million payment to the imf. Cyberattacks are now costing the u. S. Healthcare system 6 billion a year according to a new study from security firm. It found attacks have more than doubled in the last years. The average breach costs the hospital 2. 1 million. A win today for critics of government surveillance programs. The federal Appeals Court in new york ruled the nsa s ball collection of americans phone data illegal. Peter cook is with us from washington. Peter, a lot of courts have been looking at the issues, some finding illegal. This court finding it illegal. How significant is this . This is arguably the most Important Court decision reviewing the government surveillance programs and this will have an impact on the debate in congress over whether these programs need to be reformed Going Forward or extended. Specifically, what the court found is the governments use of the ball collection of this phone data which has been authorized by the patriot act, section 215 said that it was illegal, that the law did not allow for this overarching sweep of americans phone data. It did not rule on the constitutionality of that issue. It specifically limited itself to whether the lower a lot or it to move forward and it said no. That is something that critics have argued for some time. Certainly since the revelations from edward snowden. It is a big blow to those who want to extend the law. The court saying you cannot do that. If you want the program Going Forward, you need to spell out the law much more clearly, and even then, they may find it violates americans privacy. Emily without the metadata program, i wonder what alternatives there are or the nsa to collect information. I was speaking to general Keith Alexander who was running the nsa and he expressed his concerns as well. When you see big data and crowdsourcing, is there a way that we could actually take some of these techniques with courts, congress, and the administration involved and with a better Legal Foundation for doing that, and a better Technical Foundation . Nobody has put a Better Process forward. Emily is there a better way, peter . Peter the argument among reformers in washington is there is at least one solution on the table, and that is to require the companies or at least ask the companies to retain this information and then the government can search for that information under court order only. The companies have reticence about that playing any role in the process whatsoever. The question is, is that enough to satisfy privacy advocates is that good enough for the nsa in terms of clearing this information to track down suspected terrorists . Emily we certainly know that Security Officials have been here talking to companies trying to improve that relationship. Peter cook in washington, thank you for bringing us that update. Up next, twitters latest Earnings Report only amplify the question about whether dick costolo should keep his job. In the latest episode of studio 1. 0 he tells me how he deals with skeptics. Emily this is bloomberg west, im emily chang. Today is the premiere of season two of studio 1. 0 and dick costolo is my guest. We talked about how his improv training prepared him for wall street and the skeptics who say he should be fired. How do you and your team deal with that, how do you as a person do with that, when people say you should be fired . I was invited to something a couple years ago and my daughter said you should go. I said i dont think i will go up because i got invited to it because of what i am, not who i am. I got invited because i was the twitter ceo. I have never paid too much attention to the ceo of the year stuff because the worst ceo of the year stuff is right around the corner. So i do not really care too much when people say those things. In fact, i have had to make myself kerala but about them only after i started realizing it could affect recruiting if people started thinking, i want to go to twitter, but what if i got here tomorrow and that changes . So i have to Pay Attention to that and say that is not the case. Emily how does not being a founder affect your ability to lead . Jack dorsey could be here and ask him what he was thinking about when he invented twitter. I cannot answer that. You can be a nonfounder ceo and have real, thoughtful opinions and even certainty about where something needs to be taken that is helpful to the company. I can tell you when jack saw vine, he knew it was right and we both realize we have to do it. I felt the same way when someone on my team came to talk to me about periscope. It was right away. My daughter at the end of 2014 texted me and said i have bad news and good news. The bad news is an article said that you were one of the five worst ceos of 2014. Ok, what is the good news . You are number five. I see that as a lesson to not gett too carried away one way or the other on the sorts of things. Emily as candid as i have ever seen him. Dont miss the premiere of studio 1. 0 tonight. Former jc penny ceo ron johnson has a new gig did the man who built the Apple Retail Stores is taking the shopping out of the shopping experience. Emily i want to go straight to our editor at large and following the latest on yelp. According to the dow jones, they are exploring a business sale. Cory they have approached a number of potential acquirers. We dont know what initially started this. Bloomberg is working to confirm this. Yelp is in an interesting point in its history. Their growth rate is slowing down, once in the mid60s, now predicted to be about 50 . They reported a disappointing quarter with that slowing growth rate a few weeks ago which caused the stock to collapse. What was once trading at 80 a share was down to about 40, and now back up to about 43. The stock went crazy thanks to the news that broke at the dow jones. Yelp has always had so many competitors, whether it was microsoft, google. Indeed, google hasyelp has been a chief complainer of google putting their results ahead of yelp results on mobile and desktop. Maybe yelp is offering themselves to someone who would like to get all of that information and all of those connections to local advertisers. Emily my feed has filled up with suggestions on who could or would buy them. Google yahoo , facebook. Someone suggested foursquare, but i dont think they have the capital to do it. Cory jayz . Emily we know that you will stay on top of it. Thank you. He pioneered apples iconic retail strategy, led jcpenney, and now is bringing the Tech Experience to your home. Ron johnson has launched enjoy, a personal Commerce Platform that allows you to order goods and have them delivered to your home for no cost. Can he successfully reinvent the Retail Experience . Ron johnson is here with me in the studio. Are you bringing the genius bar to the home, is that with this is . In some ways it is. Enjoy is great way to start enjoying a product. Take a product, a time that you like, and we will get you up and running for the same price that you would pay for at the store. Emily something that i could really use. This is just for electronics, right . Tell us about some of your partners. We have a lot of partners. In two weeks, you will be able to buy your next smartphone whether it is an iphone, Windows Phone from at t, go to the website, pick enjoy, and able handdeliver your phone. We also have products like to go pro cameras, hp, lenovo computers, even skateboards. A variety of things that will improve your life. Emily sprint will bring you a phone on demand, you say you can do it within one hour. On average, how long will it take to get a product . You can go on the at t website, and within four hours that you order, we will handdeliver it to you. It is anywhere you want. Emily i can think of a few things i would like. A big tv, for example. You obviously have such a deep knowledge of the retail industry. I wonder how you came up with this idea, why you see this as an opportunity . I have been in retail for a lot of years and i love to rethink how we experience products. The world is going mobile. Young people want to work mobley mobiley. Everything is moving to the home, so somebody has to take on the complexity. This helped to put it all together. We think it is time for someone to come to your home to navigate this new world we are entering. Emily how big of a threat is amazon to retail in general . It seems like they are eating everyones lunch and trying to do everything, including sameday delivery. Amazon is a Great Company, they are in their 20th year, and they are really the inventor of ecommerce as we know it, but their hallmark is convenience. They are a great place to buy but that is their strength. Emily what is their weakness . When you really need help. For a lot of products, you want personal service. That is what stores do well. We are trying to pair your digital purpose purchase with service in a way that has never been done before. We are learning that when you change the loc