OF YOUR FIRST WORD NEWS.

FORMER PRESIDENT BILL CLINTON

SAYS THE WORK AT THE CLINTON

FOUNDATION SHOULD CONTINUE IF

HILLARY CLINTON WINS IN

NOVEMBER.

AND HIS STATEMENT -- HE SAID HE

WILL STEP DOWN FROM THE BOARD OF

THE CLINTON HEALTH AXIS

INITIATIVE.

DONALD TRUMP SAID THE CLINTON

SHOULD SHUT DOWN THERE TERRIBLE

FOUNDATION "IMMEDIATELY." MR.

TRUMP -- PROMISED TO BE FAIR BUT

FIRM TOWARD THE ESTIMATED 11

MILLION ILLEGAL GOVERNMENT --

IMMIGRANTS.

HE SAID HE IS NOT PUFFING ON HIS

EARLIER HARDLINE POSITION WHICH

INCLUDED CALLS FOR CONSTRUCTION

OF A WALL ALONG THE U.S.-MEXICAN

BORDER.

A FEDERAL JUDGE IN TEXAS HAS

WALKED THE OBAMA ADMINISTRATION

ORDER REQUIRING PUBLIC SCHOOLS

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.

APREME LEADERS SPOKE ABOARD

AIRCRAFT CARRIER.

CRUMPTON, THIS IS

BLOOMBERG.

BLOOMBERG WEST DOES NEXT.

-- 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 E-COMMERCE START

UP BEHIND THE GREAT WALL.

TOY CUT A DEAL WITH ALIBABA

GIVE AMAZON A RUN FOR THEIR

MONEY.

AND CHINA'S BIG PLANS FOR THE

ADVERTISING AID.

LATEST TO BES THE

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, WE'RE

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.

ABOUT 21%.TING TO BE

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.

CAP IS SHARES IN PRICE.

AT THE SAME TIME YOU HAVE TO

THINK ABOUT WHAT IS GOING ON

WITH THEM OF ITS BIG LEADERS.

,MAZON, 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

ANDL PRETTY LOW VALUATIONS

SOME OF THESE BIG COMPANIES.

THE YOU LOOK AT MICROSOFT,

GOOGLE, THEY ARE GETTING BACK TO

TOIOS DOWN TO IT AS CLOSER

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.

A LOT OF PEOPLE GOT CAUGHT

IN THE.COM BUBBLE.

>> THIS IS BASICALLY THE STORY

IN ONE SIMPLE CHART.

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.

--K AT HOW HIGH TECH STOCKS

WERE VALUED.

NOT EVEN COME TO WHAT WE HAD

TODAY.

IN THE TECHTO 21 PE

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 --

YOU'VE 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

EPS THIS ISS GROWTH

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.

OP GIVESNINGS BACKDR

PEOPLE ENCOURAGEMENT AND WHETHER

THINGS ARE BLOWN OUT OF

PROPORTION.

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.

AND MOBILEERS JUMPED

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

AMAZON'S 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 E-COMMERCE.

AMAZON'S STATS ARE MUCH LOWER.

YOUNG BASEHIS VERY

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.

AND THING WITH TWITTER

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.

HARD TOWHY IT HAS BEEN

CHANGE THE HABITS OF THE U.S.

CONSUMER?

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

COFOUNDERAD FROM THE

OF ALIBABA TALKING ABOUT HIS

COMPARISON WITH FACEBOOK.

HE SAID ON FACEBOOK YOU ARE

THEYDING YOUR FRIENDS BUT

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?

THENE: HE IS SAYING

E-COMMERCE 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