Singapore airlines has won approval to take its subsidiary private. It wants to do list after losses and five of the past six quarters. It is not even a third of its value it listed in 2010. Hong kong and china closed for their lunch break. The shanghai market almost flat. Mumbai. E, tokyo, and slightlyet was dissident. It is bloomberg west now. Emily im emily chang. This is bloomberg west. A very happy birthday for jack dorsey. I spoke with jack about the ipo. Investors with a date with much group. For Marissa Mayer. A shot fired, telling the company not to spin off its stake in alibaba. Square surging in its first day of trading. Shares closed pricing at just nine dollars a share. The company had been marketing shares at an 1113 dollar range. Prices would have given a valuation below the 6 billion that in its last private financing round. Was it a day to celebrate or breathe a sigh of relief . Here is jack dorsey with me. I am really excited. It is something that has been a long road. It is what will accelerate business and help us build the tools that serve customers in the right way. Im excited to get back to work. Emily i caught up with the square cfo. She described the disparity in the valuation. Ultimately i dont know if we can get into the disparity. We do what we can do best. Try to focus a think about what square is here to do, got to build the company. We can build a big impact. That is what we are going to stay focused on. Today is one point on that road. Emily revenue is growing fast that it is going down. Over the long term they are looking at 2025 growth. We are a company that will stay in the hypergrowth module. We are so excited. Great products like Square Capital. That is fueling the growth you see today. We are building a platform that is disruptive. When i look 510 years i look at Technology Companies that sustain 20 plus percent growth. Emily we have been talking to experts who say that i am not convinced this is more than a low margin payment process. How would you respond . Completely disagree. We are building a technology program. Software, hardware, analytics. We add on Services Like score capital and payroll because of the cohesion we see of our platform. Emily you think it is a technology company. Absolutely. We get paid the a Business Model. When they grow, we grow. Unlike if i had a Software Model where i was paid a fixed fee, will they get with a payments model is it scales with their growth. That outlines everyones incentive. Reporter lets talk about your own role and how have you stepped up . Absolutely, being part of a company like square, it is an amazing opportunity. What jack is great at driving, we are owners of this company. It is not just about being pigeonholed into one role. I have an ability to drive one of our products. I think going for this process in the next couple of months i have empathy for that because that is what we have been doing. It keeps us honest and true north of why we show up. Emily lets talk about the noncore businesses. Which of these do you see the potential to become a real significant revenue stream . There are two i feel most excited about. Square capital, and are customer management product. They build on the assets of square. We have the data. We know how to underwrite sellers in a responsible and well done way. We have this huge base of sellers. We dont have to go out to give them capital, we have grown it to 300 million originated with zero marketing dollars. That is an amazing product. We have the links between the buyer and the seller. In the online world people expect to do that. It is read to be able to link a loyalty offer like have a free copy, and know the customer came back and show the seller that campaign worked. At one point does this become 5 of your business . If you look, Square Capital is at significant scale. Emily closest of five . We have not broken into parts. It is at significant scale at this time. When i look into it there is somewhat opportunity. It is going to be a big business. Emily your job is to mine the bottom line. When do you see paring down losses . I think about as margin. If you look at the discipline of square, versus the first three of last year, we saw 18 point improvement. If you look at how it is trending, it broke even. We showed we have discipline even though we are growing at 60 plus percent. It is a very grateful are right now. If you look at what the street is saying, look for next year. We are going to be [inaudible] we see a time opportunity. Emily i was talking to jack about the executive theme. He is time constraint. How do you decide when to go to jack . Jack is always there. He is engaged. I think what jack does well is he is good at empowering people and letting you run with things. I gave the example of a product, which is unique, and only jack would do that because he tends to lean into the skill set. There is no way it should be done. There is the way we should see it in the world. Generally he is part of the staff. I dont see a difference right now. Emily the square cfo speaking with me in the new york stock exchange. Another stock we are watching, intel shares climbing after an investor event. Sales will grow in the middigit percentage range. They address concerns they are suffering from a slowing pc market. Intel is cutting losses in mobile. As we go into 2016 we are forecasting and 800 million improvement for these products. The majority will come from product margins. Emily intel boasted quarterly shares. Coming up, the investors view. His firm is the largest shareholder in square after dorsey. He is the former square coo. Emily a stock we are watching, best buy. Shares falling to the lowest level in three months. They told investors the u. S. Market Tech Products worsened in the Third Quarter and Holiday Season will not be much better. The drag was tablets. One bright spot, ultrahigh definition televisions. It turned out to be a banner day for jack dorsey. His birthday and squares public debut. The stock surged, 45 today giving a market cap of 4. 2 billion. Jack dorsey gave a oneday paper gain. Here is my interview with jack dorsey. I asked about the notion square did not live up to its private notion. This is a fundraising event for us. Money to continue to build the business and make sure we are serving ourselves better. Emily where you going to focus . On our new reader. We want to see that on the other side of every transaction. To enable anyone to not even have to think about it. My mom open the market today. It was amazing. Emily weve been talking about your executive bench. Do you think you are going to need to hire a president or coo . Emily we have a significant bench. I am proud of our team. We have one of the best coordinators in the world. Our focus is on what we need to go forward. We are it is a great team. Emily is there a c eo that inspires you . Emily bob iger. I learned from him every single day. He is not just a great coo. He is a great leader. He runs a business that has multiple parts to it. They feel empowered. It is diversified and consistent. They have stuck to the purpose of how the company was founded. Everything that walt disney started with is still in the company today. It is something we can all learn for learn from. Walt disney was the First Technology company, the first ecosystem company. It focused on experiences. It is fantastic. Emily what do you think your biggest challenge is going to be as coo . Building the strength of the game, recruiting and making sure were building the right experiences people love. If they love using the tools we are good. Emily what markets are you focused on for growth . We are in japan and canada, the United States. In the United States there are 20 million Small Businesses that dont accept credit cards. Their 85 million Small Businesses around the world that dont. Emily any countries in particular . We have a pilot in australia and then we will look for the right market at the right time. Emily joining me from San Francisco, the former coo of square. One of the biggest shareholders. He politely punted on that one. What is your reaction to the debut today ending up at 13 a share, pricing two dollars below the marketed range . It is a major milestone for the company and Small Businesses. I think the ipo is going to boost awareness. It makes it easier for sellers and Small Businesses to thrive as a business. More of them will be aware of square as an option. That will help boost growth. It gives the company more resources which they can use to convert into more traction in the market. It has been great for everybody. Emily what you make of the disparity between the 6 billion valuation and 4. 2 billion today . Does the alarm you . I think it is distracting. Evaluation at any one point in time doesnt matter. I treated yesterday that paypal went it is now worth 31 million. When i moved out to Silicon Valley, netflix went public, amazon went public. None of these initial prices really matter. Emily what do you make of the notion that square is the first of the unicorns to go public and it didnt live up to its private market expectation, is that a fair comparison . Like snow. I think again, the history of square will be written years in the future. The question is, it is only in the second and third inning of its arc of history and it has a lot to do, and initial product that will expand to Small Businesses, converging on square as the operating system. There was a host of competitors that wanted to offer attractive products but all of the have failed from amazon to groupon to paypal. Square is dominating the most important segment of growth. You will see that. Then what is square worth . Emily it has this bright future. Of all the unicorns out there, what is the future for the rest of them . There is a mixed bag. Some of them are going to be the most Important Companies in the world and some are probably going to fail. It is hard to discriminate from afar. It would be hard to opine on companies i dont have visibility into. All of your metrics become fair game and everyone has access to them and can make an informed judgment but it would be difficult and precarious to opine businesses that all you know about is through reading in the media. Emily we have talked about house where is dominating Small Businesses. We got a quote from an analyst said paypal has a big lead with small merchants which will make it difficult for square to expand beyond payments. Square doesnt have the user base on the customer side to generate the Network Effects paypal has more on the merchant site for that matter. What is your response . I havent met a single business in the world that runs paypal products and services in the real world. Online they have been successful and will continue to be for a while. I look around every day trying to find somebody who uses paypal to run their business and have yet to find one. There is some truth to the Online Transactions that paypal processes that have a network of fact. If you study the metrics, it is starting to erode. More and more people are processing paypal transactions through credit cards rather than using their paypal account. Theyll pose a problem in the long run. Emily after the break i will ask about what you think about jack dorsey doing both of these jobs at square and twitter. More with him next, and still ahead Marissa Mayer future at yahoo is being question. That story later this hour. Emily shares ended four dollars above its listing price but questions remain about whether jack dorsey can be the ceo for the long haul. You probably know better than anyone outside of the company. What do you think, do you think for the longer term that he can remain the ceo of square and twitter . I believe so. It gets easier and not more difficult. The company is still in the drafting phases of what it will become over time. As you create more network affect, as you have more traction in the market, the incremental decisions get easier and then you are mostly doing strategy and editing. It can be done across multiple companies easier than doing the hard work. Over time this will be very scalable. Emily square is not a Public Company. Two public companies, every quarter, to earnings calls, he doesnt recommend it. Steve jobs said it was horrible. There is a difference between recommending and can it be successful. Spacex is going to be a Public Company, worth 20 billion plus. It is going to succeed at this horrible job. Steve was extremely successful at both companies. Even if most would not want to do it, it doesnt mean that the people who want to do it, who embrace the stress dont thrive at it. Emily do you think jack needs to hire a coo . No but the team you build is the company you build. To both companies have the right town or leadership, or the right energy. It is better to have significant leaders in each functional unit. A coo and a president or you dont have that cohesive team, historically in Silicon Valley you wouldnt want to have a president and coo. That is a crutch to emily is it a crutch for him at twitter or facebook. It is an alternative structure but the preferable model, most of the advice is to have significant leaders in each functional unit. Where it well is when the ceo wants to play both at the same time. Mark is driving the product. That is true at yelp. In that structure i see it can be a logical solution. Emily we will talk more about yahoo coming up. More bloomberg west is next. Buddy nice place, nice car what happened . Well, it all start with my free credit score from credit sesame. Com. They gave me so much more than a free credit score. Credit sesames Money Management tools and personalized offers saved me tons of money and helped me reach my goals. I just signed up with their free app. Whats my credit score . Your credit score is 650. Thats magic no, thats credit sesame. Com you get so much more than a free credit score so do more with your score at credit sesame. Com top stories. Of our china authorities cracking down on the biggest Money Laundering operation on record. This was joining forces officials joining forces. Intoferring public funds private accounts. Japan is considering sending ships to join u. S. Patrols in the south china sea. Japan and American Forces have staged exercises in the south china sea, but never close to islands claimed by beijing. Japan is not planning to join the current u. S. Operations. Trade anders Transpacific Partnership on the agenda. China is not part of tpp. Our relationship with china is important. We are the two largest economies in the world. It is important we focus on the opportunities we have to Work Together as well as the challenges we face. Tpp is not standing in the way of a bilateral investment treaty. Tpp is really about the relationship among the 12 countries. A mixed bag of trading activity at the moment across the asiapacific. Yvonne a comeback coming in the regional index. I want to talk about malaysia inflation. 2. 5 for the month of october, that is in line with estimates. Slowest pace in four months. The ringgit surging 1. 4 . We are counting down to the reopen in hong kong and china. Change your alibaba strategy or face a proxy fight. Star board asked yahoo not to spin off its stake in alibaba. They are asking yahoo to sell its search and display advertising businesses. The enterprise value is 31. 2 billion but excluding alibaba and partial ownership, the core business is actually worth 2 million. Joining us to discuss, my guess to has been covering the story. Star board is saying that yahoo , the core of yahoo is worth 2 billion. How realistic is a proxy fight now . The 2 billion valuation sounds low considering these assets they have. Revenue for billion dollars a year. Some people say zero. Depending on what happens with the spin out. It is still very supportive of management. They want to execute on this spin out they say is going to happen in january. They will sell the shares along with japan. Emily the concern is if they spin off they could oh billions of dollars in taxes and shareholders would be on the hook for them. What do you think . Great question. It has been a long time, the market has price that into the market cap. They have some discount associated already. It should basically be a fair market transaction. Emily at the same time analysts are saying Marissa Mayers time is up. This year alone we count 13 executives who have left which disrupt continuity. We believe the board must assess if the Management Team has support and if not a transition to new leadership could be in the best interest of the shareholders. On the other side i have heard people say she has not had enough time. Do you think she has . Quite she inherited a significant challenge. Yahoo s best days were behind it. After all the people i know and technology i cant think of a person better suited for the job. You could replace her but you are going to get someone worse. Emily analyst say yahoo should go private. I wonder how realistic that is. A good point that you could get rid of the current Management Team but who is going to take it on after them . Analysts are saying when you have a spinoff and yahoo gets separated from this stake then it will be a manageable target for private equity and they can go in and say we are going to change management away from the public eye. If it is not this team, what team could do it . Emily we rarely see major comebacks. Apple is the only company that has pulled this off. At this point, how much hope is there . What do you think of what is left . The 2 billion valuation is probably close to accurate of what yahoo is really worth. With a vision and execution and some real risk you might be able to rebuild fundamental val