To let transgender students use bathrooms and locker rooms consistent with their chosen gender identity. The ruling applies nationwide through the judge said federal officials failed to follow rules requiring an opportunity for comment before such directives are issued. German chancellor angela merkel, france holland and matteo renzi promised to increase joint European Security efforts in the wake of terror attacks. Supreme leaders spoke aboard a aircraft carrier. I am mark crumpton, this is bloomberg. Bloomberg west is next. This is bloomberg west. Coming up to my tech takes charge. Why the sector is exerting more control in u. S. Markets than at any other time since the. Com bubble. This is going ecommerce start up behind the great wall. They cut a deal with alibaba to give amazon a run for their money. And chinas big plans for the advertising aid. Media. That is the latest to be snapped up by chinese investors. The ceo joins us later this hour. First, to the lead. Tech stocks exerting more control over u. S. Markets than in any other time since the internet bubble. The largest tech stocks, were talking microsoft, alphabet, this split, amazon, seeing massive multiyear rallies. That is closest to its widest ever. We have more. Break it down with me. Exit is getting to be about 21 . When you look at the magnitude in terms of how much the percentage changes, it is relative to the rest of the market. It is picking up a bigger slice so you are looking at 21 . You can see that in the white line with the infotech. Obviously the biggest one right now. Compare that to Something Like financials, it has been flat for that group throughout this recovery. The tech stocks have led the way. It has been a bit of a turnaround in the earnings reports, where tech has been leading so you are looking at 20 , 14 or 15 for the financials. Those are typically the biggest groups. You can see how this compares. This level we are at four tech is a bit higher than it has been. Nothing quite compared to where we were in 2000. I want to bring up another chart here that is interesting. Looking at the sale story. There is this is a function of market cap. Market cap is shares in price. At the same time you have to think about what is going on with them of its big leaders. Amazon, facebook, google, microsoft. Some of the companies that have been leading the charge in terms of that market cap expansion. This shows the diversions that has shown. Valuations are high but part of the sobriety of this rally has been the fact that there are still pretty low valuations and some of these big companies. The you look at microsoft, google, they are getting back to ratios down to it as closer to zero. You have an s p average of about three. There is not quite the same exuberance. Maybe that is why investors are that he this rally and not too concerned. Remy a lot of people got caught in the. Com bubble. This is basically the story in one simple chart. You can see what was going back in 2000, 1999. The top panel here is the tech sector in the white. The price to earnings in the past 12 months versus the s p and blue. This is pretty amazing. The spread is at the bottom. Look at how high tech stocks were valued. Not even come to what we had today. You have 20 to 21 pe in the tech as well as the s p. Things are blown out of proportion. It accurate to thousand, you have tech stocks trading 80 times 12 month earnings and it was building, hard to know when you hit that top that we will youve see that flat line, basically the same and i have one must chart that is showing the same principle. This is looking at those earnings so boiling it down a little more acutely when you look at profits. This speaks to the idea that rings are pretty highly valued in some areas of tech market but nothing incredible especially when you think about whether or not earnings can provide a backstop. The blue line assuring you that tech Earnings Growth eps this is what we have been following the last year. We have not gone anywhere but tech is still up, up 25 since the start of the bull market. That earnings backdrop gives people encouragement and whether things are blown out of proportion. Reny the nasdaq and the s p tech sector have been up 23 . Some amazing numbers there. Turning out to asia. Alibaba has been adding social features to its mobile app to attract younger customers and get them to stand the app longer and entice them to spend more money. That strategy may be paying off. Active numbers jumped and mobile revenue is up to two and 6 billion in the june quarter. People are visiting the app more than seven times a day spending over 25 minutes in total. Compare that to nine minutes on amazons mobile app or 16 minutes on twitter. Some interesting stuff here. How were they able to do this . Celine they started with a simple app but it has evolved into something much different from what we think of as typical as ecommerce. Amazons stats are much lower. They have this very young base of users and to hook them and they need to add all the social features. A conjoint one of over 1000 special Interest Groups, you can watch live feed from your favorite blog or testing out your favorite makeup or read your favorite news feed. That is what keeps them coming back for more. Reny it seems like the numbers are not playing out on that just yet. Definitely an envy. What is the disconnect in terms of the companies . Celine facebook has tried to get people to shop and insight, they have added the buy button. Same thing with twitter and interest and amazon has not made any major inroads into social network. There is a host of reasons why there are these differences but the main one is china has his enormous base that is growing and they are used to the extremely cramped interfaces. To a typical western Smartphone User it would be overwhelming. So because of that the chinese ecosystem these companies have an able to put everything altogether, you can look at reach out, social message, book a taxi, get a haircut. That is why it has been hard to change the habits of the u. S. Consumer . If they want to put everything up against the wall to see what sticks it is helping there. I do want to bring up a quote that you had from the cofounder of alibaba talking about his comparison with facebook. He said on facebook you are friending your friends but they start with strangers and use data to find a commonality of interest and create a community. Do you think in the west that that could make traction . Celine he is saying the ecommerce site has all these data points. They are able to group people into what you buy, what you like, creepy. That is why there are these forcing special Interest Groups from fishing or Wedding Planning or baby planning. In the u. S. Amazon, they have not really try to do this. They said they would have to change habits. I am used to going to facebook to talking to my friends and going to amazon to why things and going to twitter to look at news and tweets. It is hard to change habits and it will take more years to be comfortable social networking and on other types of apps. We do know that they have invested in snapchat. He does not want folks to know that. There is another road here. He says we do want to learn and understand how snapchat is engaging with young users. We are intrigued by the product and impressed with evan steele, the founder and we want to be partners was with him. Why does he not want people to know . They do not want to comment. They know the u. S. Media, we are all over this. Alibaba and septet, tell us everything. They do not want people speculating. Alibaba is a super longterm oriented strategy. Most of what he said was off the record but what i can say is they really are looking to see what septet is doing, how they are able to hook in all of these young users in the u. S. And maybe five, 1015, even 20 years down the line all of this knowledge they are gaining from the u. S. Investments are going to pay off when it comes full force in the u. S. Thank you. Now to todays revolving door in tech. Tableau has a new ceo. Succeeding the cofounder. He comes from the Cloud Computing division of amazon. Shares sparked spiked 5 but it is a small recovery for the embattled stock. It had 42 through mondays close. Tableau is trying to transition its Software Tools to a cloudbased substitution model and is grappling with slowing sales growth. Coming up, asias internet giants may be scrabbling to diversify but j. D. Coms laser focused on retail. We will talk strategy with the cto of chinas secondbiggest Ecommerce Company next. Indias biggest ecommerce startup is heating up not in a good way. We will focus on the internal turmoil at flip cart later this hour. This is bloomberg. One story we are watching. Regulars say there is a huge difference in the value it places on its intellectual property depending on whether it is in europe or the United States. In europe amazon claims the i. T. Behind its went shopping platform is immensely valuable. It does this to justify the billions of dollars in taxfree revenue it has collected since moving its affect assets to luxembourg. Authorities on both sides of the atlantic are asking questions with the virus telling amazon it owes 1. 5 billion in back taxes. Amazon maintains it is following the law and has sued in response. We are expecting a decision this fall. China is one of the hottest markets in the world for ecommerce. Annual Online Shopping volume made double to more than 1 trillion by 2018. One company poised to capitalize on that is j. D. Com. This is chinas economic is ecommerce operator behind alibaba. The company struck a major deal with walmart agreeing to buy its walls are its website. Joining us now from San Francisco to discuss how the finches company is positioning itself is the chief technology officer. Jd. Com is stating on its core retail, we were talking about alibaba moving into the cloud and social and entertainment. Do you see any change similar to alibaba in the near or midterm future . First, thank you for having me. We have [indiscernible] the largest social Media Company in china. Over 800 million chinese users use it every day. 50 of their time are spent and the ecommerce platform will integrate right in. You do not need a jd account. You can purchase a product and that will pay. 50 of new users were [indiscernible] lets talk about strategy in terms of jd. Com relative to alibaba and other competitors. What makes your strategy better question mark if i were an investor why would i want to invest in your Company VersusSomething Else when other companies are expanding into other areas . Guest we have the Largest Online [indiscernible] in china. We have 234 warehouses across china and over 6700 delivery stations. We provide the same day deliveries to all major cities in china including second day deliveries. 85 of orders last year or delivered within the same day or the second day deliveries. This is a tremendous speed and service is tremendous asset for us and also we are [indiscernible] that is an area of concern. What we see is a shift in chinese consumers is moving away from price being the primary consideration when going Online Shopping. And authenticity and service became more important today. In june we talked about jd. Com what does jd. Com see in terms of that deal . We are collaborating and continuing to build the brand in the business. We were launching a [indiscernible] on jd. Com. We are pursuing online to offline initiatives and we will [indiscernible] to improve our product selections for our users from china. Is the company considering any other kinds of partnerships or similar deals there . Chen we are always looking at how to service our customers better. Leveraging each other supply chains will be important to improve product selections. Next walmart gets a 5 stake because that deal. What is the benefit for walmart here . Chen walmart is participating in ecommerce in china. As this we are always looking at innovating and adapting to everchanging user needs. This is the strength of a local company. And walmart can participate in that fastgrowing sector. Just earlier today for its cannot with an article with the headline, saying that i wanted to get your thoughts on that. Tencent had bought shares and today it is more than 21 . Do you think jd. Com would be open to a take over there . Tencent always see the value of jd, has confidence in jd. To execute and deliver the height Quality Customer service. We have always had a Strong Partnership with consent and we believe it is a winwin for both companies. Lets talk about the future of ecommerce. We are talking about amazon with their drones buying up their own planes to get their products across the country and around the world. What is your forecast for jd. Com, any the in the drone region to . Yes. We have today most of the participation is not participating in ecommerce and china. The cost is five to six more times times more expensive than cities. What were doing is using our drones to deliver the product and packages to the villagers and lives we have we have over 100,000 chinese villages and from there the customer can pick up the goods or their representatives candidate or the goods from there. We are not going to deliver the package to individual customers. We had a Pilot Program in place to deliver packages to will customers. In the median term we intend to rely this program to more areas in china. We will leave it there. Thank you for your time. Still to come, we will continue with asias fastchanging ecommerce landscape and dig into the serious going pains growing pains at flipcart. The city is gearing up to be the testing ground for a fleet of self driving ubers. This is bloomberg. The rally in chip stock is taking on historic dimensions. Up 20 following the eighth straight weekly game. If that rally continues it would be the longest such streak since 1995 create all this is the Broader Market remains flat area at this rally is a sign of economic strength somewhere to the growth of Railroad Stocks about a century ago. That has boded well for future stock market performance. And shares climbing to the highest us year after japans run asus electronics the talks may not end in a deal. It is looking overseas for r d acquisitions. Coming up. Selling itself to a group of chinese investors were 900 million. We will hear from the ceo and founder of media. Net. You can now listen on the Bloomberg Radio app and on sirius xm. This is bloomberg. [ clock ticking ] time. You only have so much. Thats why we want to make sure you wont have to wait on hold. And you wont have to guess when well turn up. Because after all we should fit into your life. Not the other way around. Everything is cool when youre watching a screen everything is awesome, when youre sharing a meme a voice remote, show me angry kings you know whats awesome . Everything apps that please, more selfies, endless hours of the best tvs brand new apps, shows to go, awesome internet thats super whoa. Everything is awesome xfinity. The future of awesome. Energy stocks are taking a hit across the region with the hang seng falling the most in a week. Petro china is leading the retreat in hong kong, with oil extending its biggest losses early august. Won is rebounding and emergingmarket currencies on further hawkish comments from the fed. Energy prices taking on earnings as well, oil posted an 89 fall in firsthalf profit. Oil prices dropped 27 on the year, while lng tumbled 40 . Petrobras crashed in the second quarter, with revenue down 21 . To exchanges are likely allow Voting Rights for certain companies. Applicants will need to meet artain requirements on similar proposal in october after a position for regulators. Global news, 24 hours a day, powered by over 2600 journalists in more than 120 countries. This is bloomberg. Lets get back to the latest on the market with david ingles, checking things out. How are we looking . Point, what is very interesting is that we are still budgeting and we are trading have a look at the big movers across the region, Online Gaming stocks hammered again. Is leaningagency toward Standing Firm against the offer of one of its bigger shareholders on donating its shares. Exchange. We will see. Shipping, a lot of optimism on the restructuring rent that it is planning to submit. The hanjin Umbrella Company as well. Ono, drug cancer treatments. Asian equities looking mixed. This is across japan, malaysia. We are seeing a fallback, 45 of talks on the way down. Im not going to say it is very interesting there is nothing happening, but we might get something in 15 minutes. Have a look at the yields. They almost fell below zero. The last bid to cover, 98. 2. Ramy this is bloomberg west. A group of chinese investors says it will pay 900 million for startup media. Net. The deal to acquire the company, which provides technology to power ads, may not be as cut and dry as it first seemed. The consortium has plans to sell the company to beijings miteno communications in a move that closely resembles a reverse merger, where a private Company Takes over a public one then bypasses the formalities of an initial public offering. Joining us to talk about the deal is founder, div turakhia. First question of all the companies in the world, why did you decide to sell it to a chinese one . Firstly, thank you for having me. What an exciting journey it has been for us. This process got started around the end of 2015. We got interest from a u. S. Listed company. We had been building this company several years. We started in 2010. We decided to hire bankers. In the process, we got incredible amounts of interest, seven bidders in the final round of the process. We decided this one made the most sense for us. They had the right combination that we were looking for. Ramy what was that right combination . What were you specifically looking for . We were not looking in the first place, right . We wanted to continue building this business. With this particular opportunity, we got the opportunity to keep growing the business, the ability to get upside in various different structures that we can work out with the consortium. We get access to additional markets that we would never hav