Going to be up at the open. It would appear at least judging from the futures. European markets have had more or less reasonably decent day. Good, love to see it again. Thanks everybody. Thats going to be a constant now. You see the one outlier is the ftse 100 in the uk. 10year note yield and crude oil, crude was a story yesterday going down, 10year note yield around 1. 5 and now crude up a bit but did seem to take the market down a bit yesterday. As it weakened in the session. Alibaba reporting its earnings this morning and they did top estimates. Overall revenues were up 59 year over year. Gross merchandise volume jumped 24 . Joe tsai is the executive vice chairman of alibaba and he joins us now from hong kong. Its always nice to have you, joe. Theres a long delay, i should let our viewers know. I will talk and then you talk. Not sure were going to be able to talk back and forth as much as we might want to. Let me start with this, joe. Of course a very strong quarter. You did report gmv, but thats going away as something youre going to tell us about. You will be focusing people on that top line growth. Which reaccelerated. To what do you attribute the reacceleration in Revenue Growth . Well, thanks, david for having me on the show. The acceleration of Revenue Growth is attributed to the fact that we are generating a lot of Value Proposition for our customers. The brands and merchants that are trading on our platform. And with the quarter that we just had, we generated 4. 8 billion of revenue thats 59 growth. Its the highest growth rate weve ever had since our time of the ipo. And were very, very pleased with that. And, obviously, a lot of work has gone into that. We specifically a couple places, number one is the platform is now transforming from simply a Distribution Platform where we help sellers sell to a place where brand and merchants are coming to the platform to engage directly with our consumers. We have 434 Million Consumers that are buying things on our platform. And that Value Proposition is very, very attractive to the Large Companies and as well as Small Businesses doing business on the platform. And the second reason is were just killing it on mobile. 75 of our gnv as well as 75 of the china retail marketplace revenues come from mobile. And this is weve come a long way since two years ago when people were concerned about that issue, but today, we have just reported that our monetization of mobile users has exceeded the monetization of the users on pc. Overall we had a really great quarter. We also have broken out the core Commerce Business where we are generating 2. 5 billion in operating income and that itself is growing at 38 . Yep. This is not counting the exciting stuff like Cloud Computing and Digital Media. So were very pleased with this quarter. As you said. You hit all the highlights. I dont need to come back to them again. Mobile monetization if i might as you pointed out there was some question, its a more robust experience people say when doing it on a pc conceivably. To what do you attribute the ability to get mobile monetization rates higher on mobile or monetization rates higher on mobile than on the pc . Sure. Just think about a user on a pc, they will have to get on the computer either at work or at home. But on a mobile device, theyre engaged with the internet 24 7. They could be riding a bus talking to friends, sitting at a restaurant, any time they can whip out a mobile phone and engage with the app and you know, you know, im talking about our tabo app which has weve reported in the last quarter 427 million monthly active users and the average user is opening up the app, seven times a day. So that kind of High Frequency engagement is helping us to monetize this user base. Yeah. You know you say seven times a day which gets me to another subject that i want to get on now, even though well come back to the broader numbers, which is, youre developing yourself as well as a Media Company in part because of that kind of engagemee engageme engagement. You guys are reporting segments so we can see how much youre investing and losing, why is that an area that you believe will become one that can be profitable for alibaba. Well, we see Digital Media and entertainment as a natural continuum to our core eCommerce Business. In the past, we have being able to satisfy consumer demand for material goods that are transacted on our platform. But today, when you look at the Chinese Consumer, beyond material goods they need to have spiritual nourishment if you will. And this is where entertainment comes in. And we feel that its very, very important for us to continue to satisfy our customers, our users, and provide good Entertainment Offerings and good media offerings to them and thats why we have invested in uc web, which is a mobile browser thats the number one mobile browser in china, and also has leadership in some parts of the emerging markets. We also acquired yoko to form the core part of the Digital Media and entertainment asset. We do media pretty well in this country to. A never ending stream of rumors that alibaba is interested, perhaps, in more of our media assets as well, as you grow that platform. Is that something that is true . Are you looking at or will you at some point look at u. S. Media assets to make that a more robust offering . Well, today, media is a global marketplace. What were focused on right now is the Chinese Consumer and what they want to watch. So in terms of the shows, the movies they want to watch, not only domestically produced shows, but also shows that are produced in the United States, so, of course, were interested always in acquiring good content and licensing good content from people that make great movies, great tv shows. But thats not the only part of the strategy. Really the focus that we want to put on is to invest in original ip, invest in professionally and User Generated Content on the you could platform. As i said media is a global marketplace. Joe, cramer, you got 434 million active users, 17,000, you are about the best were going to get on china. I have to come to you. We believe many of us here who are not bearish on china and believe in the government and what its trying to do to make the individual more empowered to spend, this to me, this number looks like not only are you executing well but the Chinese Government is successful or succeeding in trying to get the consumer to spend more. Can i read through that this may be the beginning of a turn where the consumer really is accelerating in china . Hey, jim. Great question. I think you really need to take a step back and not think about the chinese economy in a cyclical quarter to quarter way. In any given quarter there could be ups and downs. What were looking at is the long term trend, what is the long term trend. The chinese economy is shifting from a manufacturing economy to a consumption driven economy. And that is very, very good for alibaba as it plays to our strengths. So in that context, the Chinese Consumer the average household in china in aggregate there is 4. 6 trillion u. S. Dollars of net cash savings on the Balance Sheet. That means when you go to an average household they dont have a lot of mortgage debt. They have a lot of savings saved up because of real wage increases if the past few years and theyre ready to spend. Thats what weve seen on our platform. Joe, as you well know, we have a president ial election entering its last lets call it 90 days or so here in the United States. Im sure its a focus in china. Youre one of the leaders in the Business Community there. I would like you to listen to a sound bite from donald trump, the republican nominee, who joined us earlier on cnbc this morning, talking specifically about china and then get your take if youre willing to offer it in terms of your thoughts about his comments, and what the overall tone is that youre hearing from the other Business Leaders in china . P. You know, if china goes down to 7 its like a national catastrophe. Were going down now were 1. 2 , were going to be lower than that its looking like in the coming quarters. Think of it, china goes down to 7 and then what they do is they devalue their currency and take more of our business and they start going up again. Sure. But were like the whipping post the United States. People that dont understand the system, we have people that dont get it, and we are being ripped by many countries. China being the number one abuser. They do it better than anybody else. Joe . Okay. Sure. Number one abuser. Please respond. Give us sure. Ive tons of respect for mr. Trump but, you know, sitting here, i feel like china is the whipping post for the United States, and whats important to see is the overall context of u. S. China relations. What alibaba is doing is were the gateway to china so right now if youre an american manufacturer, american brand, and you want to access the china market you should come and talk to alibaba. Because we have a platform that can bring over 400 million Chinese Consumers to american businesses and thats very, very impressive. Thats very, very meaningful platform. And i just wanted to say that right now, we are working with many, Many American brands, procter gamble, apple, starbucks, theyre all want to come to our platform to engage with Chinese Consumers because china is a very, very big market. So i think the overall sentiment here is we want to reach out to american businesses, we want to make sure that theres no animosity and theres a lot of synergies and the two countries are symbiotic and we really need to look to the positive aspects of the future. And joe, finally, of course, shares of yahoo are going to be up today. People actually asking on twitter why is yahoo up. Clearly because they own 15 of alibaba, as you and we well know. Eventually, that 15 will be all of yahoo or whatever they choose to call the company. It will be a 40 ad company comprised solely of potentially ta stake. Many who believe that alibaba will eventually buy that stake back, those 384 million shares. Is that something that alibaba will be focused on . Sure. I think they call it remainco. So lets get this right. If yahoo sells the stake in alibaba, they would have to attract a very large tax liability. Its a taxable sale. But heres the problem. If we go and try to acquire the shares of remainco we will not be able to cancel our shares. They still remain outstanding shares. We would inherit that big tax liability. So, i have to ask myself, why would anybody in the world want to do that. Okay. That means i guess you dont want to do that, although i thought there was a way to do it in a taxfree manner, perhaps im incorrect in terms of buying the entire actual Investment Company itself. I think thats up to the yahoo board to figure out, tax efficient manner for us to engage. And so you know, we cant we have a business to run and we cant sit here try to think about all the strange tax contraptions. Joe. You are running the business well. Look forward as well to speaking at our delivering alpha conference not long from now. Joe tsai, executive vice chairman of alibaba joining us and there he is, keynote speaker on september 13th which will be very interesting. Joining us from hong kong after jim, of course, those very strong numbers from the company. Lot of times i have to do this, when you get the tremendous bookings a lot of news broken just now. I want you to just the bullets, yahoo given from what i thought, could happen here. If they can figure out a tax efficient structure they could engage but he said thats for them to figure out. Right. But its not i regard it as a situation i think the question for yahoo which is going to be what will be the discount be that those shares trade to, to the overall value. Im saying people are looking at yahoo makes sense. A correct read through. Could be more there. Also i felt that i know that he didnt necessarily want to point blank say, that china is doing better. You dont want to read through. But Chinese Consumer ready to spend and the shift is happening. 400 million people. He has a better read than walmart. A lot of people. Lot of people. Speaking of retail, jim and i will get to macys. You saw the stock is up rather sharply on better than expected even though the numbers themselves are not that great. But first we will get to carl from the olympics and, of course, another big night for team usa. And lets give you another look at futures which we typically like to do right now. See theres macys and alibaba. More squawk on the street right after this. Mapping the oceans. Where we explore. Protecting biodiversity. Everywhere we work. Defeating malaria. Improving energy efficiency. Developing more clean burning natural gas. My job . My job at exxonmobil . Turning algae into biofuels. Reducing Energy Poverty in the developing world. Making cars go further with less. Fueling the Global Economy. And you thought we just made the gas. Energy lives here. Guyhey nicole, happening here . This is my new alert system for whenever anything happens in the market. Kids a natural. But thinkorswim already lets you create custom alerts for all the things that are important to you. Shhh. Alerts on anything at all . Not only that, you can act on that opportunity with just one tap right from the alert. Wow, i guess we dont need the kid anymore. Custom alerts on thinkorswim. Only at Td Ameritrade. Usa swimming continues to dominate in rio. Carl joins us live with the latest results. Carl . David, we try to answer your craving for swimming news. Katie ledecky, last night, anchors the 4 by 200 freestyle relay. U. S. Wins gold for the fifth time in the past six Olympic Games and ledecky now has more total medals than anyone else here competing in rio. She goes into preliminaries for the 800 meter freestyle later today. The showdown, Lochte Phelps against each other for the final time. This is kind of like when agassi and sampras faced each other for the final time. Phelps, of course, holds the world record in this event, gotten it eight times. Lochte two times. And lochte talked about what tonight means given all their history. You know, going up there and just racing him, its amazing. So definitely got to be a lot faster for tomorrow. I dont know about the bromance part, but you know, me and him, weve been racing since 2004, so we definitely created a good friendship and everything from that. So tomorrow its going to be fun. Finally, guys, tonight judo Kayla Harrison won gold in london, the first u. S. Olympian ever to win gold in judo. She looks to defend that today. But she could face her main rival mira agular of brazil. Later this hour we will talk about the business of Michael Phelps as we said yesterday, so dominant here in rio, and yet so close to retirement essentially. What does that mean for endorsers like under armor, like omega, when theyre thinking about how much to pay phelps. Thats coming up in 20 minutes. All right. Thank you, carl. Lochte has a new turn, on his back from the push off from the wall. Really cool. No Conference Calls to speak of. Im going to watch. You watch that. Up next, ready for your mad dash because thats whats coming up. Whats the value of capital . But whats it cost to modernize a School District . Whats Critical Thinking worth . A basketball costs about fourteen dollars. What does it cost to build a new sports arena . Whats team spirit worth . A Telecommunications System isnt cheap. Whats it worth to talk to your mom . Whats the value of one more tree . A forest . A walk in the woods . Whats the value of art . Art open to the public. The value of capital is to create, not just wealth, but things that matter. Morgan stanley. Capital creates change. Across new york state, from long island to buffalo, from rochester to the hudson valley, from albany to utica, Creative Business incentives, infrastructure investment, university partnerships, and the lowest taxes in decades are creating a stronger economy and the right environment in new york state for business to thrive. Let us help grow your companys tomorrow today at business. Ny. Gov agar. We are ready here on thursday, of course, to get the opening bell under way in about seven minutes. First the mad dash. Talk macys. Okay. This is really important, david. There have been a series of what i regard as guide down, guide down, guide down, until you get the guide down too far. Thats what happened to macys. They guided down and guided down. Finally beat. In other words, im not saying things have gotten dramatically better but doing selfhelp. Closing 100 stores. 15 . 100 stores. 728 stores out. Whats interesting, these stores are making money. So what theyre saying is were going for profitability. And were going for profitability in a world where we know that amazon is gunning for us, walmart is gunning, doesnt matter. Theyre getting their act together a little better with 2. 0 of omni channel which is good. Terry lundgren trying to leave on the highest note possible, taking out a lot of costs. I have to tell you the progression, we always want to hear how the progression of sales are within the quarter, theyre like this, okay. Right. And the magic duck came down. Apparel is