Joining me, and our guests as well. And good to see you. And jeff bezos with another alltime high up 40 in the last three months bringing the stake from up to 48 billion. And amazon and macys going in different direction, and what is your take on the Department Store drama . Well, clearly the market is saying something is secular and something faster is going on than we were considering before, and clearly not the weather or the fashion cycle or the apparel, because that is one of the concerns, too, and for the markets, one of the biggest problem is that there is no good way for the investors to express this shift or the play it through the single name of amazon. Amazon is one quarter of the s p Retail Sector and not 25 of the sales, but maybe it will be soon, but to me, it is this distortion is going farther. And where you are in seattle today, amazon has thought to be changing retails for some time, and at least from the sentiment, but why are the inflection points in retail is happening right now . Well, look it, it is not just the Retail Business or the fact that people prefer to buy online. Amazon is crushing it in so many areas. I mean, look, they are doing amaze things on the cloud where pr pretty much every business in the future is going to be a Software Business in some shape or form, and they will build in the backend on the cloud, and most of the businesses are going to be building on the cloud, and that is a big part of the business, and they are innovating in the different areas, and why did amazon buy twitch . What are they doing with the amazon prime and media and competing against netflix . They are way ahead of the game when it comes to the thinking of the future, the future of entertainment, and retail, and it is not just about online shopping. They have a Virtuous Cycle going, and not only the advantage in the cloud where they have practically invented the modern movement with the internet web services, and also with the mobile where the app is up to speed, and the analytics is good enough for intelligence of what people want, but i wonner won er wonner wonder, raoul, if you think that google starts a price war in the cloud, and it is particularly profitable for them, and they are leading the price drops for the cloud services, but google has been known with the gmail storage to break into the market, and attacking on the price, and could that happen here . Well, look, i dont think so, because the fact is that, look, amazon is competitive on the cloud in terms of pricing, and even if you bring down the prices down, the services they offer make it easier for the Small Businesses the to build on, and so they have great service, and the reliability is awesome, and it is difficult to make the transition once you have established the cloud and made all of the investments, it is difficult to make the transition to another cloud and it does not make sense to do so unless there is massive incentive, and amazon has been aggressive on the cloud, and so if they did, it would be surprisi surprising. This is a text coming in, do they have the boot on retail to slowly raise the price over time, and on the week that we got this call of the 1,000 price margin, that is fatter than now. Yes, it is the fear of all of retail, and the storyline that is quietly emerging now, which is that it is not always the best price, but a massive convenience, and basically habit, and so it is not walmart in that case. But can we agree that jeff bezos is very invested in this story, and the wealth is down 7 billion. And maybe he sold some stock and not the ideal time. And he is the single biggest benefactor if his Company Fails or succeeds, and he is a wealthy man and invested in the company. I expect it. Yes. And for disney missing estimates for the first time in five years, and comes from a drop in revenue over at espn, and rahul, what are the subtrends at espn may have been better, and so add the revenue declines, but the bulls and the bears here, and what is your take . Well, disney as a business, 50 of the business is on the lets quote a dying industry being cable. And the fact that many people are cutting cable, and getting on the netflix, and getting the content online, i think that disney has to think differently like do they embrace netflix. Again, we go back to the idea of innovation, and look at amazon buying twitch, and why didnt disney or buy oculus for example, and even the assets like espn, and amazing asset, and espn is thinking of the sports like e sports and that, and that is awesome, but integrate Virtual Reality into the viewing of sports for example and get out of the idea that they have to save the cable busines business. And rahul, you are hitting on something indirectly that i have a question about, because it seems to me that if you like the disney multiple it is because you believe in the ability to turn the Box Office Gold into gold in other places, whether it is merchandise or whether it is in the cable and being able to sell these characters through other types of experiences, and at the same time, they are backing away from Disney Infinity from getting the hands dirty when it comes to the dujle tall world. Is that a mistake, and do they need to actually invest more in creating the digital experiences, and lest they risk not being able to translate their box office, the stable of characters into the digital gold in the future. I think so. Look, i think that they need people to sort of think way outside of the box on how can they take the different franchises and businesses, and adopt new technology the grow the market, and with the age group of 18 to even 12 to 32yearold people. They have to engage them in a completely different way, and by having the people who are trying to save the businesses that are sort of, you know, fully deteriorating and rather than thinking of innovating on a different scale, i think that is a problem for them. So they need to have, and they need to let the people go and do experimental things like that. And even with some of the strongest franchises, frozen for example, they could not lift the Consumer Products with softness there, and we saw in the period with steve jobs, whoever will follow bob iger. Well, frozen came out of nowhere and then more than anybody expected, and then a headwind to top it the following year. But if you are disney, how much of a premium the play over the others . Because it is too fat, and people thought that it was too reliable, and now back to the market multiple, because people dont want to put a premium on the box office and the hit driven and they should not be the ones hastening the decline of the cable bundle, because that is the way that most people want the buy the stuff right now, and be there and figure it out when the time comes. And is there an argument for or against the guidance disneys case . Well, it is for their approach which is not giving the guidance, and i give them credit for missing by four cents, put it that way, because they should not have passaged the numbers down and all of the rest of it, but disney, you cannot say they have suffered from not giving the guidance. And now, the chairman of commerce is explaining how disney trends after the report that staffers at google buried stories. And most users consider the platform to be a news service, so rahul, how is this playing out where you are, and whether it is an algorithm or the human to give them balanced news . Well, the whole debate is ridiculous, to be honest with, you and it is no different than cnn editorializing the news or fox editorializing the news or cnbc and there is a human element, and computer algorithm, and facebook is saying they dont do it, but there are individuals and people who work there, and they may do something based on their own bias, but the idea of it is ridiculous, because they are a media company, company, and they have people working there from all sorts of backgrounds with their own buys ya, and i dont see it as a problem. Well, no news outlet likes for themselves to be a story, and themodo is saying that facebook is not to be having themselves trending, and yet they are trending for the second day in a row. And there might be a story here of how facebook does, if you call it journalism, but gizmodo has not reported it, and now that horse is out of the barn, and now some are wondering if the m a is at risk because of the facebook story. And they say they talked to the people cur rating the stuff, and they dont say u how many people, and so maybe we will actually get some detail of how many people are working on the c c curation and maybe we will get some facts. If they are built on to premise of creating their own affinities, and now people are demanding it to be a neutral arbiter of somewhere in the world. Where does it end . Do we need twitter or snap chat to tell us how they prioritize their stories . Where does it end . Well, it is purely democratic, and see what the uptake is, it is going to be amazing distorted and trivial view of the world, and so you have to have a finger on it. It would be all kardashian. Without a doubt. Absolutely. And thank you both for joining us today. Good stuff. Meanwhile, the markets are seeing a drag today after a rally yesterday. The dow of course weigh ed down by disney down 115 points, and then retail on behalf of macys is dragging down the likes of nordstrom, and whole host of retailers bringing down the s p Retail Sector, and you can see that it is down about half of 1 on the Retail Sector. And a judge is iding with the blocking of staples and office depot merger. Staples is down 17 , and office depot down 24 . When we come back, when not to buy apple shares, according to a top analyst, the new piece with Mick Billiton with what he has a piece called uber versus mankind. And a test happening in vegas, and what is that happening there, phil lebeau . The Hyperloop Technology is getting the first major test in nevada from a company now called hyperloop one. Phil lebeau is there with a special guest. Phil . Thank you, jon. We are inside of the hyperloop two with 11 feet diameter, and i im joined by the ceo of hyperloop one, and this is the perspective of what people may be riding in in the future. Yes, this is the test scale that we are building here in las vegas, and you are inside of the loop that is made of steel and inside, it is a motor running alongside here, and a track to elevate a pod, and pod in the surface to move people and cargo really quickly. And we are talking about up to 700 miles an hour . Yes, and depends upon the route. This route that we are building in the Development Site here in las vegas is straight, and it is the first fullscale system, and in the future, spins and turns, and real time switching and h e hyperloop is going to be on demand and so we dont stop along the way, and just stop at the eventual destination, and that is the beauty of it. And this is not very long, and you believe it is a demonstration that this technology on the small scale with work. This is a demonstration of the production scale of the linear electric motor that we have develop ed here h at hyperloop. The motor gets energy, and we put electricity into it, and you will see the sled moving quickly down the track, and then the same motor is going to go inside of the tube right here, and in a couple of weeks, we will start the construction of these tee s teeps these tubes and almost a pile and a half of material to the site, and a straight shot to down to where we will see the motor here this morning, and this is the first production full scale test. And talk about the time frame when we will see the hyperloop to become a reality . Full scale test in the First Quarter, and then over to the next four years, how is this going to be in terms of people riding it . This is a milestone and then later in the year we will have a k kitty hawk moment, and full demonstration, and the world is watching. And the world is cynical. The world is cynical, but it is cheering for us at the same time, and so many supporters want to see different in transportation, and the improvement to the i dae, and they believe that hyperloop is one of the methods. So let me tell you that we demonstrate it, and our objective is to find the routes in the world where the governments, citizens, and regulators come together quickly, and build the first prototype, and we believe that we will find the prototypes in 2017 2017, and the first system running by 2019. Inside or outside of the u. S. . Wherever the regulator and the people want it. It could be outside of the united states, because we have a couple of projects outside of the united states, and some within. And traffic on the freeways is is one of the problems to sofl, and doing work on the Fast Movement of cargo. And thank you, the ceo of hyperloop inside one of the hyperloop, and we are going to be watching the test in about an hour, and we will bring it to you live in power lunch. It is going to be exciting to see how it going. Phil lebeau, thank you very much. We talk about the bubble ine increasing outside of the country as well, and what does that mean for this country . We will have that in a moment. Medicare only covers about eighty percent of part b medical costs. The rest is up to you. Thats where aarp Medicare Supplement insurance plans insured by Unitedhealthcare Insurance Company come in. Like all standardized Medicare Supplement insurance plans, they could help pay some of what medicare doesnt, saving you in outofpocket medical costs. Youve learned that taking informed steps along the way really makes a difference later. Thats what it means to go long™. Call now and request this free decision guide. 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China is taking steps today to contain a Technology Bubble according to the financial time tim times. They are saying that some funders are borrowing against b businesses that are attractive to other financiers like internet and other technology classes. And now, we will have more from ha hans, and what are you seeing about this bubble . There are manufacturing and technology and some of them are in the sunset industry, and some of them are in the growing markets of gaming and so forth, but i view it as less than the containable bubble, but preventable bubble from happening. As you know, the china stock index was at a high last summer, and come down since and so a bubble does not exist for the chinese stocks, but a fear that a new bubble could be coming. And so you are thinking that the resets that we saw in the Chinese Markets last year in january and february of this year, and they were basically responses to sentiment and weakness, but largely averted . I think that as the china shifts from the slow growing economy to something that is feed ing feeding to be more consumptiondriven, some volatility, so you will see the volatility on the way, but most of the bubble that was there last year has gone away. You mean, when you are looking at a chart long of growth, you are nervous they have bought a lot of goodwill a lot of credit over the last few months . Well, over the longer run, as you know, the chinese debt is on the corporate side and not the Consumer Debt. The Consumer Debt is 40 versus 80 of the gdpp in the u. S. , and so it is mostly at the provincial government level, and so china can shift it to the local level, and so there is room to contain it. And so you also have 3. 6 trillion in the Foreign Exchange reserve. So it is containable, but the shift is going to be volatile. And hans, what is seeing with the pedia that is affecting the mobile markets in those ways . China has 600 million smartphone users today in a population of 1. 3 billion, and so the next crop of users coming up are buying the lowend phone, and most likely in the rural areas, and so there is a phone that is produced at cost of 100 in u. S. , and that is the future of the chinese phone. Not as easy as the iphone. And where china slipped 1. 3 billion in the recent quarter, is that a normal run of the mill consumer pullback, or Something Else is feeding into the market share . Structural, because the next 300 million smartphones is is coming up in the rural area, and they have less money to spend, and for them, to get online, they need something more affordable, and beolow the 1,100 bump. And when you see the apple content taken offline, and then the next day facebook wins the intellectual property dispute, and do you believe that is going to be contingent on how the executives approach the market . Without question. The market in particular has shown that the Chinese Government how facebook would behave if it is allowed in china, and he is winning a lot of points in lecturing and taking the morning run. That is amazing. And not a lot of the executives can say that for sure. Hans, i know you raced the new fund to invest in china, and as it is going to be moving, come back to