♪ >> we are set for a pullback. most asian futures in decline. all trading futures at a three-month low. mercer myers says she is staying at yahoo! to manage its remaining asian assets. it's first gaming revenue rise. and bernie sanders supporters pleas for unity in

philadelphia. welcome to daybreak asia. let's go straight to the markets open now. juliet, i think we are seeing asian follow wall street lower. >> that looks like what we're seeing at very early trade. been aough there has news. from the in k's it could be more than the market has been looking for, but we are seeing weakness coming through. performerwas the best yesterday. signs also pointing to the fact that nintendo is likely to have a tumble when it opens. we actually saw south korea's of 1% in the

second quarter. --t was a little bit of unexpected come up we are seeing weakness coming through after that fall on wall street. australia's market is opening down. in new zealand, looking flat. better than it was about half an hour ago. it had some pretty impressive trade data coming out of new zealand today thanks to good exports. new zealand's market yesterday hit an all-time high. data for investors to get through in the region today. we've also got the philippines reporting trade data in japan. just quickly, i want to show you. this is a three-month chart. trading beneath the average since april.

>> thank you so much. i will take you to some live pictures right now of the breaking solar impulse through -- two. the plane took off from abu dhabi last year. with two pilots taking turns at the controls of the ultralight. there comes now. the 17th leg of the journey. and left cairo to make the trip to abu dhabi. the entire journey was 35,000 kilometers. some more facts. the maximum flight time achieved, 117 hours and 52

minutes. was 28,000 also to feet. an average airspeed of 78 kilometers per hour. what a feat it has achieved as it makes ground there moments away. let's go back to markets now. for yahoosful suitor online apps, verizon. that also includes yahoos one billion users. what now? let's talk first about marissa mayer. a lot of people thought she would logout. didn't thinkeople that, but she is staying signed in, and on a company posting earlier, she said as much. to meid "it is important to see yahoo! into its next

chapter. -- she spoke with emily chang, and had this to say. i got to priorities, seeing it to close, but also watching over the value of our asian assets. , we willg forward ultimately figured out. >> another thing that will try to figure out is her leadership role moving ahead. verizon is saying it is too early to discuss that. let's say that she doesn't get cause, apparently according to a yahoo! regulatory filing, she could get a golden parachute of $65 million. >> wow. she talks about watching the values of the asian assets. vocus through these assets. how important are they? >> sure. to meet assets we speak of, one

happens to be in japan the other is in china. let's start with china. it is a stake in alibaba holdings, about 36% holdings stake. value of $40arket billion. uslife these are important. -- you ask why these are important. let us bring up a chart. this chart i want to show you shows yahoo! market cap, minus alibaba and yahoo! japan. stakeentioned before, the in terms of alibaba group and yahoo! japan is $40 billion. you can see that above this zero line, that is when yahoos market cap is higher than that of

alibaba in japan. but on steaks, it is lower than that. that is why it is so important to take care of these assets. >> thank you so much. we will talk with you later more about yahoo!. we also have breaking news right now. two hasr impulse finally landed in our dobby. they -- landed in abu dhabi. before, they set off in the plane in abu dhabi last year. this is the 17th leg, now finished. the pilots are getting off the solar powered plane right now. 7500 trip to abu dhabi.

they wanted to prove the future is clean. a lot of cheers on the tarmac out there. let us check in on some other movers today. bristol waiting for nintendo to trade. oh no, it is trading now. 4.6% as it begins trading in tokyo. the worst drop in 26 years. they are worried the pokemon go phenomena and will not be profitable enough. stephenson.read what is going on with the stock? the signs do seem to point to a further fall. nintendo is valued at more than 100 times its earnings, net of forehead of its peers. -- that is far ahead of its

peers. that is because of the doubling of share price because of the enthusiasm for pokemon go, which debuted two weeks ago in the u.s. the question from here on out is really, how can nintendo take this enthusiasm and proven hit it has to its other games? how far can ago in the smartphone era? if you think about it, they're not a big player there yet. is really to justify its current valuation right now. >> is that what they need to focus on? what does the company have to do to keep shares propped up? >> if you think about it, for ,xample, super mario and zelda no one has played those characters or games using those characters on smartphones. once nintendo decides to pull

the trigger on that, we make it back to a situation where it is earning enough money to justify its valuation. the last time nintendo did that was in 2009, when it had two hits. ii into the ds handheld. but now people want games on their mobile phones. really they just have to fill in the missing pieces. nintendo has promised five new titles by march or sometime next year. it is also coming out with a new console. it is not impossible, it's just a matter of making sure that the business and ideas catch up to the actual valuation of the company. they were a little more aggressive before releasing the information. thank you so much.

let's check with japan now. we're seeing softbank opening up in tokyo. sprint, the struggling wireless carrier, posted its subscriber gains. you've seen softbank shares of about 3.5%. are at a two-year high on that news. and watch the stocks out of depends morning. we saw earnings come out in the last hour, and they missed estimate. the estimate was 454 billion. let us get to the first four news. >> thanks. let's talk to you -- about the u.s. politics. dnc chair debbie wasserman

schultz deciding not to appear after her resignation. bernie sanders supporters ignored his pleas, interrupted in chance at the first mention of hillary clinton's name. sanders be slater along with michelle obama. -- has promised economic growth, and hopes to hand over an economy much stronger than what he inherited. the stock market has jumped 12% since he was elected in may. china has ordered its major internet company to stop all original news reporting come up giving the government control over information online. they said that companies had searcy violated regulations,

causing negative affect. online users can now only kerry reports by government media. this is bloomberg. just ahead, questioning abenomics. people are increasingly skeptical. we will hear more from state street mobile advisors. ♪

♪ >> a quick check of the latest business flash headlines. the push to renew the international president -- presence of the yen may be getting a boost. securities may be issued as soon as next month and would be the first from the lender.

cbc is also studying the possible -- possibility of bond issuance. owns -- the vote of confidence in its move to privatize. the deal need some effect percent approval from shareholders. singapore's regulatory chief has found a strong action to repair reputational damage done by scandal. the monetary authority director says the city failed to meet its own standards after criticizing banks for not properly controlling money laundering. they will investigate trancelike -- transactions. back to markets now. dollar ledr

commodities lower. my next guest remains cautious on equities. he is joining us now. it is great to have you. at thenteresting to look market now. stocks and are getting into these risky asset third the second half is looking slow for global growth. what you make of this? >> i agree with that statement. we see global growth remaining week. realizing the prediction, and we would agree with that, as well. one thing that we are looking at is how, the low yield, given the high valuation of equity, can move higher from now. we've seen earnings have been on the outside, but the expectations were low. it willce is that remain quite weak, and we can

see growth assets versus defense assets. mostlyeems like you are focused on developing markets, as well. is the u.s. more of a safe haven? it may be the better house in a bad neighborhood, or are we seeing growth there? >> the growth picture is a bit clearer innocence that expectation is around 2% of gdp growth. that is higher than what we see in other developed countries. what we've seen recently and what we are looking at coverlet -- carefully, is emerging markets. is --pectation that china we have an expectation of 6.5% in the next three years. with that in mind, we can see

the impact of brexit on europe and the struggling of a mix in japan, are pushing the market lower. emerging markets might be more stable. >> you mentioned japan. the expectations are so high right now. it seems like everything they do my surprise or be on the downside. first, it was on strengthening the note after the brexit vote. it cnet taper off after that, seeing stronger u.s. data. is that enough? -- yen?weaken the end >> there is certainly a lot of volatility after this event. being more the yen

in a arranged balance. the we would expect more is typical stimulus, were expectations are at 10 trillion, and we are at 20 trillion command given expectations, in my be some of that is ari priced in the yen. a strong yen, given the volatility we are expecting, maybe a win for the japanese market. >> what you focusing on? >> we are focusing on income assets such as rates, high yield , and in gold. this is the position we had the beginning of the year and this is something we continue -- >> do you think gold has further to go? >> there has been a retrenchment over the last few weeks, but we

are seeing a yield, where bonds were right. this is quite a shock. nursing some volatility reverting. >> thank you so much. next, a getting market showing signs of stabilization. we will show you how that is reflected in las vegas earnings. that just ahead. ♪

>> wall street has some key earnings reports to mall over. we'll start with sprint. the stock here in tokyo rate -- reacting. >> we saw sprint store to a two-year high, up a whopping 20%. this is after a report of subscriber gains.

this is a turnaround plan after what has been a struggling wireless company. wells fargo released a report saying that this is solid. we could see some scuffle by analysts to rework the ratings. a different story, a cut its product sales at nextel. trying to retrieve some of those losses. behind thestory report is that -- is concerning investors. texas instruments, rising. orders for chips

used in the auto industry. this is another success story. they're the largest maker of analog chips. they had struggled to produce a profit, they are now back in the game in the first quarter of revenue growth in a year. >> thank you so much. that continue on more earnings now. openings ining the hong kong. us bring in our analysts. sands performing quite well. does that mean that the market has bottomed out? >> to interesting developments that came through on the earnings call today. first all the mass-market segment has stabilized. particularly for june, it was interesting to know that it was growth for the first coming two years.

also have the fact that it has maintain profitability, it is still leading at 32% -- 33%. we are looking at the overall it willmarket in macau, be interesting to see. the vfp market is volatile. vip market is volatile. it could fall more. so some signs that we are seeing the turnaround materialized. resorts, theew paris resort, how will this change the competitive landscape? >> the parisian is beautiful. flagship, one of the beautiful, must-see properties on the strip. it joins a cluster of china casino resort including the

venetian and four seasons. that is all great and it brings traffic, but on the flip side, you have more competition. your already thing hotel rates come down to two pressure. over the next six months, with new resorts, you could potentially see revenue growth, which we are hoping for, but on the flip, you could potentially see a price for begin -- price war began. is right next door to competition, literally. what about other markets. singapore. >> it was a tough quarter for singapore. for the the ip market perspective, it fell 29%. when it comes down to the mass gaining revenue, it was one of the most difficult. it fell 9%. >> thank you so much. earnings at of las vegas sands.

the democratic convention kicks off amid angry protest. we will be live in philadelphia next. this is bloomberg. ♪

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yvonne: it is a: 30 in singapore and half an hour away from opening there. you are watching "daybreak asia ." ♪ yvonne: now let's get to the first "world news" with david. david: let's talk about the markets because this global stock pullback is extending into asia with oil trading near three-month lows. this is ahead of the boj meeting, energy and natural leading the decline.

street cell phone last week's record close with energy shares for obvious reasons. has been everyone waiting for, verizon has confirmed it is buying yahoo! web assets for $4.83 billion and it includes yahoo! real estate in some intellectual property in some states with alibaba and yahoo japan. the carrier will integrate yahoo! web service with its aol division. marissa mayer says she plans to stay on. solar impulse ii has become the first aircraft to fly around the world powered only by the sun. the plane touched down in abu dhabi, 80 and have a 35,000 kilometer journey without burning a single drop of fossil fuel. very, very impressive.

global news, 24 hours of a public -- powered by 2400 journalists in 120 countries. this is bloomberg. yvonne: thank you. the democratic national convention has kicked off as the party grapples with the fallout of the e-mail leak and well today it seems they are united together, the convention opened with protests from bernie sanders supporters. let's go to our bloomberg's politics reporter who joins us live from philadelphia. we were expecting a much more quieter -- much more quiet democratic convention but not the case now. bernie sanders supporters seem to be ignoring his plea for unity. reporter: the theme tonight was supposed to be unity, but we heard loud cries from bernie sanders orders just ahead of the vermont socialist senator's primetime speech where he will address the convention. they were chanting things like "lock her up" and at several

points booed former chairwoman debbie wasserman schultz who was of course ousted and forced to resign earlier because of the leak e-mails that implicated her as well as other top senior aides within the dnc, seemingly suggesting that they were working with the clinton campaign during the primary process. yvonne: interesting to see some of his supporters and how they have responded. bernie sanders himself has been quite muted about the fallout. it is interesting in itself. what of the reaction hazard and on the dnc chair was the resignation? reporter: we are hearing from the clinton campaign's top officials and they say this is only day one and this is still going to be unified party coming out of the convention. the bottom line, bernie sanders has a tough job to do in just under an hour when he will address the convention.

he, a lot of pressure on him to unify the party, to unify his supporters, many of whom are disappointed with him endorsing hillary clinton because he, like donald trump came out against the transpacific partnership and hillary clinton has suggested she is more aligned with it. not only is their disappointment with the dnc but also a key tenet of policy with the tpp issue. a lot of pressure riding on senator sanders to bring this party together. it is going to be a speech to watch. yvonne: for sure. who are the big headline speakers today? i heard boys to men was performing earlier, which was a highlight. [laughter] reporter: there was also demi lovato. she spoke at the dnc. there will also be first lady michelle obama, so she will also have her work cut out for her. her is a little bit of a gaffe with a lining up from seemingly

took lines from michelle obama's 2008 speech. we will have to see if there are any other comparisons there tonight. the political theater on full display in my hometown of philadelphia. much, livenk you so from philadelphia. let's go back to the markets. investors in asia settling down ahead of the day central-bank meeting. julia is an action for us. how is it looking in early trading? juliette: it is pretty much opposite of what we saw yesterday when we have that support, the selling coming through in the tech stocks. we are see selling and most of the outer sectors, particularly in energy spaces in that you are session following to the three-month low. it is pretty flat on the cost be , .71% for a 3.2%

annualized gdp. we are seeing a lot of selling coming through the nikkei. they report that there could actually be a doubling of the stimulus when we finally hear from the boj about what that plan is going to be. the nikkei reporting it could be a ¥6 trillion plan. the concern is pressing the market that we will continue to see selling. softbank shares doing well. you spoke of this earlier with the results coming through. we have seen reaction in japan up by 3.6%. leading the gains there on the nikkei. a lottralia, you can see of the energy players are coming under pressure and also a number of the materials jobs because we did see generally weakening motor prices across the board. in new zealand, a little bit of an uptick holding onto the record highs that were reached

during monday's trade. having a look at some of the other movers in the region, mentioning softbank college a who, japan sold down by 1.1%. larissa meyer saying she will remain in control of the asian businesses equity alibaba and yahoo japan. profit falling after memory chip prices slid with a little bit of pressure in korea. yvonne: thank you so much. yahoo!,with a share of but plenty will be left over after the sale. us in hongn joining kong. in terms of the overall deal itself, you talk about how significant this is when you have a historic institution like verizon teaming up with something that is just as historic like yahoo!. what does this mean? reporter: yahoo! is one of the

pioneers of the internet. yearsave had some rough that we have seen. now you are going to have yahoo! moving on with america online where they will be this interesting combination of two former google executives, armstrongyer and tim at aol. they are going to be teaming up with this transition. they really come from opposite sides of google and you can see this in that transaction where marissa was on the technology side, one of the engineers tried to build technology and tim armstrong was one of the sales guys. now you are going to combined yahoo! with aol. they are going to take on the big guys in advertising, google and facebook. yvonne: she says she will stay

with the company, but do you see room for? reporter: it is hard to see how she could have a significant role. i think she does want to make sure that the congestion does go smoothly. -- transition does go smoothly. yvonne: let's talk about the asian assets, alibaba one thing and yahoo japan. what is next for them? reporter: that is a really good point. this could really get lost in the sale of court yahoo! assets. this is worth much less than the two pieces are left behind. yahoo japan in a stake in alibaba worth five or six times more than the core yahoo! assets. they will be left behind. the bedding as they will be sold at some point but will continue to operate for tax purposes. yvonne: really great to have you. great insight on this yahoo! development with the sale to

verizon. the billionaire chairman robin lee has pulled up to take control of the video streaming service. this after failing to reach an agreement on price and structure. di with a look ha at why it fell through. why did it fall through? haidi: this phase courtesy -- faced criticism. there was criticism of this offer, saying it is a sweetheart deal for robert late, for him to be able to profit and benefit against the interests of shareholders, all of this coming to a head last week ended open letter drafted by a partner with the new york hedge fund saying according to their calculations,

talking about 2% of the total and they say according to their evaluation, they value i.t. up to $5.8 billion rather than the 2.8 billion represented by the author. -- offer. they say the better thing to do was to keep it stable with the merger and build up the value. they could not an agreement on price or structure. it appears this is the end of the chapter. yvonne: it is just about this activism criticism. we have is when it comes to the company itself. it is watchmaking. what were the chances it was even going to go public? haidi: they tried to listed separately on the main level

seeing they were huge -- saying there were huge challenges in china. i.t., china;s netflix had 20 paying subscribers in june, trying to develop this platform but a long way from making a profit. still, this decision to hang onto it is negative for current shareholders and it will continue to weigh on the bottom line. yvonne: this will be much more -- harder for buyers to drive. it has been buried for cash, not just in the streaming business but all in other ways it is been trying to diversify its business getting into driverless cars, artificial intelligence, internet services,

all of this happening at a time when the economy broadly is slowing. remember, in may, the government open an investigation into allowing drugmakers and medically related transactions to take place on the search engine. we did see baidu shares really tank, down 25% over the last couple of years, but we had that precipitous drop. the drug decline is going to take a chunk out of that. yvonne: thank you so much. just ahead, leaders discuss territorial tensions in the china sea. can i come up with a consensus? we have more details coming up.

this is bloomberg.

♪ nationssoutheast asian avoided taking a tough stance on the china dispute. it was the first meeting since china claims that the south china sea were rejected by a international tribunal. let's take a look at our correspondent who is been taking a look at the story for us. >> they said they were pleased with relations with china but they did not, with a top message that the philippines were hoping for. this is the association of fiveeast asian members and members have competing claims over the south china sea area what they came up with their and their final statement, including no reference to the reference to china itself. they said that they are seriously are concerned with the recent developments expressed by some ministers on the land refurbish and an escalation in

the area. we also heard from china's foreign minister who was in laos and this is what he said. >> this award given by the tribunal amounts to describing a dose of the wrong medicine. it seems that certain countries from our the region has got quite worked up with a high fever, but since her situation will only do harm to the lawful rights and interest of the countries in this region and that will only meet with concern and resistance from countries in this region. so, there was nothing new in the segment that they put out. want to asean to come out and basically give their support to the ruling and that did not happen. yvonne: is it surprising? >> i do not think analysts were

surprised. they have to have consensus. that is one of the ways they were. they assumed it will be difficult to get all of the members to have consensus to corral around this issue. yvonne: it is not the first time either. >> not the first time, no. the points the expected from ,hilippines, cambodia,laos giving aid as a gift for cambodia's support. yvonne: thank you so much. as we head over to the philippines, the president has given his first nation address to promise to be his predecessors record. he is about to deliver in monetary and fiscal policy to help boost growth. we are joined live from manila. were there any surprises with this statement and address? >> other than the fact that it

was an hour longer. there was one big surprise and that is when he announced a unilateral cease-fire with communist rebels. the last time he had a cease-fire was in 2011. the president said this was to end decades of fighting, which accorded to him, was getting bloodier by the day. he said what he wanted was not piece of the dead that piece of the living. the national democratic front welcomed the announcement and peace negotiations will resume next month in norway which are expected to include talks on releasing political prisoners. this was a issue that prevented talks from occurring in the previous administration. yvonne: he seemed to focus a lot of his speech on the economy as well how did it go in terms of the business community? veryll, businessmen were happy about his emphasis on it ease of doing business, faster processing of licenses and less

red tape, but one sector that set up in it's he was the mining sector, the president defending his secretary and on the back of a proposal by the newly elected house speaker seeking to ban raw metal ore exports similar to what indonesia did two years ago. also, he wants to force the mining companies, requiring legislative franchising. this means that we need to go to lawmakers to get their permits. yvonne: what about this ruling? he did not really, the president, issue an official statement on what happened in the south china sea since the release. did he talk about that during the speech? waited was very much over the weekend. there was the expectation of the announcement, but the president reiterated what the foreign secretary said on the ruling.

they said they strongly affirm and support the outcome as an important contribution to the ongoing efforts to pursue a peaceful resolution. wasaudience of the time chinese ambassadors. he had a very diplomatic tone. the national security council expected to convene to define the position of the philippines before the former president faces chinese delegations for a philippineswest sees. a. yvonne: thank you so much. indian railways plan to sell $37 million of debt to fund its modernization. the world's fourth largest railroad operator expands. 30% of this will be funded by debt and another 30% by government spending. indian railways carries about 22 million people a day.

japan's biggest banks are making good on their pledges. others brought a combined $2.4 billion of cross shareholdings in the year up to march. it could help earnings being squeezed by negative interest rates. they will report first-quarter results earlier this week. a 32% premium over carmichael stock price in march before the deal was first announced. wills hoping the new offer win over carmichael shareholders. shares of both companies fell in new york trading. up next, recordbreaker, the solar impulse ii finishes and at they 35,000 kilometer around the world journey. we will be live at the finish line in all the godly. this is bloomberg. ♪

yvonne: solar impulse ii has made history, completing the first around the world right using only the power of the sun. joining us live from abu dhabi at the executive airport is our reporter. what is the mood been like?

>> it is very exciting. dhabi.:00 a.m. in abu it is getting a bit windy. after 17 years, it has finally made it a reality. world without using one drop of fossil fuels. he originally finished as around the world balloon trip. he was more than nervous with that trip, because he kept feeling like he was going to run out of fuel so he promised himself that they demanded in asia that he would do it again without using any fossil feels, and today, he has done that. yvonne: you mentioned about the 17 legs across the globe. the last one, a little bit bumpy, right?

>> i cannot really hear you. everyone is getting really excited. yvonne: right. we can hear the cheers behind you. let's talk about what is next than. en. >> they are going to move the aircraft into the tent. the wingspan of the solar impulse ii is the same size as a jumbo 37. the wind is starting to pick up so it is getting a little bit warmer. it is too delicate of an aircraft. yvonne: the celebration behind you. thank you very much. live from abu dhabi. solar impulse ii making history today. that is it for "daybreak asia" today. rishaad: having a look at this massive verizon buy.

what does it get out of it and where can they succeed with investors? about $4.8 billion consideration. it is much bigger than yahoo! core assets. looking also to what we have in terms of the markets. bank of japan, the federal reserve. a little bit more pork dish in the states when it comes out to make their decision on this. a goldman sachs representative joining us. how did they become relevant again. mr. trump"trending business is .

♪ rishaad: this is "trending business" on tuesday the 26th of july. i am rishaad salamat. ♪ rishaad: we are going to be in philadelphia this hour, but here is a look at what we are watching. shares declining for asian stocks of crude a three-month low. a rebound in the end sending japanese equities down for a third day. marissa mayer says she is staying on as yahoo! chief executive after verizon's buyout to manage the company's $40 billion in remaining asian assets