>> fire worst forecast on boj decision day. new data disappoints and piling the pressure. u.s. stocks gain as giants lead the way. alphabet and amazon impressed with earnings and forecast. the stamp of approval as uber and didi brace for supremacy. you live from the asia

headquarters in hong kong. happy friday. let's go straight to markets. koreaut .1%, let's go to to the kospi. hours, we sawthe it showed little bit of an upside. up about .1%. and of course, japan, we got a data dump in the last hour. we will talk about that in just a couple moments. stocks heading south here at the start of the open. about .5% toyen 104.8. so let's head back to japan now.

it disappointing data. they broke those figures for us. >> there is speculation about what this really means. they knew what they were going to do this afternoon's o the intensity of scrutiny builds over as you get close to releasing that policy message. it's a mixed bag but there are some bright spots. headline inflation number dropping for a fourth consecutive month really showing how far japanese price pressures have to go before hitting the 2% target that has been set by the bank of japan. consumer prices including fresh food, it fell .5% from a year earlier. decline.oking for a if you strip out energy, it's about .4%.

missing the estimate. told energy been prices are the reason why they are taking hold but even at will prices have continued to take up over the last few months. you can't keep blaming oil prices on japan. a wrapup of that data we shot this morning. having a wild ride ahead of the policy decision. markets nervous about one of the closely watched economic events of the year. hour, and the last traders have told us it was our curriculum act platforms. facing intense pressure to boost stimulus more than ever. let's go to our tokyo bureau chief. what is the boj expected to do now? million-dollar

question. a number of economists forecast that they will need in one form or another with the most likely scenario being further purchase followed by deeper cuts in interest rates as well as increased buying. arsenal is, the limited to what they can do in these policies. and the governor likes the element of surprise. it is still a very high level of uncertainty in the market. following the size of the fiscal stimulus, it is clearly in the court. from achieving the target.

certainly, there is reason for why the boj should ease it. >> throwing this curveball and announcing fiscal stimulus. is he going to go home, go big or go home? tell us the significance of the meeting. >> this meeting is probably the most anticipated meeting in terms of the market expectations, heavily tilted towards some form of easing. it makes it difficult for boj not to do anything because in the case of an action, the yen is likely to rise. certainly not what japan once at this stage. at the same time, even if the boj does leave in one form or

another, there is a high possibility it will still disappoint the market and the market could still go the way the government doesn't want. the rise in the and in the fall of the stock gets. nowe're seeing that already. how likely are markets going to continue to react that way? >> again, it would be difficult but i think my thinking is that the downsize, there is a bigger thanof the downside today to the upside. whatever the doj -- whatever the boj does could see the market all -- the market fall or the stock fall. you so much, our tokyo bureau chief joining us from tokyo. paul? theillary clinton will take

stage later to formally accept the presidential nomination and make her own case to voters. she will need to address a lingering resentment around bernie sanders supporters and public mistrust. trump only to donald 37%. the major shareholders are said revised $102 the billion takeover offer. they are among those prepared to support previously. they asked them to rethink the offer and the pound plunged following the briggs it vote. buy awith shares, it will stake in a joint venture. first quarter profits for less than expected things to an inrease in trading income

the rebound that fell 32%. had expected net income to fall to $135 million. they will buy back to .6% of shares for about $427 million. i'm paul allen, this is bloomberg. deciding to sell part of the stake in alibaba is very true. it went to $2.4 billion. they join us live from tokyo. shares of about 1.6% right now. >> it is typically a tug-of-war and earningsosses from the domestic operation here in japan. this time around, it is

generally positive. expanding the user base and shrinking losses. it includes mobile phones. it keeps the bank afloat. it bumped up that income. so.uding super spending $32 billion to acquire the chipmaker. >> did they say anything more about the future of arms acquisition? >> very little of what he said his new. company remaining

independent, as they look forward to the next five or 10 years, they want to be it the table. which does not answer questions or investors wanting to sit in this core business. we will have more of those details when the company completes that. >> and we learned about the former president, he cost the $3 million in compensation. it's a lot of money. was it worth it? >> date is i did -- they decided to stick around.

it is related to that resignation. and that kind of payback is some of the same ranges as tim cook. they defended the compensation package by pointing to accomplishments in india and china. as well as the company's portfolio. and liquid eyes and some of those assets. but the jury is still out on if the investments will actually pay off. >> some breaking news out of mura,r of now -- no jumping on those first-quarter

results at we still see declines but the profit fell less than estimated at 32% for the first quarter. we are seeing a bump in shares closer to 6%. about,rnings to tell you a giant of the web with both amazon and alphabets that saw analysts forecasts. how did they do it? of at's head over to out bit, the parent company of google. seeing the beat estimates would be an understatement. they were crushing estimates in terms of second-quarter profit as well as revenue. that is because of ad revenue that really went gain dusters. up my bloomberg terminal and i g#btv -- itw you

versusrevenue and profit an estimate of $16.9 billion. about 39 cents higher, $8.42 a share versus $8.03 a share. that made investors happy. by about price rose 5%. >> and we've heard about amazon as well. --profit as well as avenue revenue. was actually a record in addition to revenue itt came from cloud services depends on the range and how it turns out. guidance, thee

estimate definitely beat there. amazon of the highest as seen in after-hours trading by about 2%. yvonne: thank you so much. live from new york. at next, the outlook on hong kong and china's property markets. we will be to ronnie chan. this is bloomberg. ♪

yvonne: a quick check of the latest business flash headlines, apple is selling arms to ask that for shareholder rewards. they rolled out the company to lower yields than it will use for working capital and debt repayment. apple has relied on the bond market to fund a share repurchase program and currently has about $72 billion of bond debt. new advertising rules are hurting china's biggest search

engine. , they fell by a worse curved and under of as that can fromown while costs rose video streaming to on demand services. company rejected a $1.2 billion loss in the first half due to a write-down down on the canadian oil assets. it would be the first loss since 2000 when it began trading. expect total out what and spending to fall this year. posting a 29% increase in underlying profit while revenue rose 37%. there is strong sales in the city. here. great to have you

first five or six minutes, you painted a very grim picture of the global economy. >> we did ok. we took advantage of opportunities. very slow fore rental, for commercial. but we did ok. we basically broke even compared to the year before. given the circumstances, we do fine. what youet me describe said about how the outlook is going to be. >> i have seldom seen a time with the world is that volatile. you have brexit, terrorism on both ides of the atlantic in the middle east. the election coming up in the united states for presidency. china, the economy is still struggling to find its way. is a bound and we

want to make sure the shareholders understand our view that the world ahead is not that rosie. >> we saw prices dropping 10% from the september peak. kong amazingly saw the residential market has been recovered quite a bit for the past month. what is the outlook? do you think this recovery is sustainable? >> i am pretty confident of the hong kong residential market. they are doing the right thing releasing land. the problem of the last many years, there's not enough land supply. and managed to supply land the market will come. it should moderate residential prices.

nobody wants to see it dropped precipitously. neither do i see prices running away. exactly what we want. replenish your land bank in the face of all this? >> i don't know how my competitors think. are a bottom fisher. it is cheap. i think your chance of buying property in the mainland is higher. ask especially if you do see competition from the mainland developers which is eased a little bit overall. can you compete with them? you see them is competition? >> you have a lot of major hong kong players. mainland, the

frankly, competition for the best properties, it is not that key. there's only a few mostly mainland and perhaps a few from hong kong. but some go here, some go somewhere else. and the chance of us buying a mainland is much better. yvonne: stick around, we will talk more about china in our next segment. stick with us. this is bloomberg. ♪

yvonne: welcome back. let's continue our conversation with ronnie chang in the hong kong studio. let's focus on china a little bit. we saw retail sales fly -- slide quite a bit.

how are you coping with the slowdown when it comes to luxury sales and how consumers are changing their behaviors? you think the market still has room to bottom out? ronnie: i don't see the market picking up any time soon. i just don't see the impetus that will cause the luxury sector to go back up. the overall general consumption is ok. part is stillxury rather slow and that is what we specialize in. we still have growth of 2% overall. the only thing china can rely on his china. what do you mean by that? ronnie: europe is not doing that well. the u.k. is uncertain, the eu is uncertain. france is not optimistic. america is good but america is now buying america.

japan is going nowhere so who can china rely on? china. yvonne: you have actually lowered the rest of some of your new tenants in those malls. what else have you done to whether all of this? the yen is weakening and those risks are materializing for you. yvonne: no question -- ronnie: no question, it is dropped from a year before. and whatever gains we have, it will look negative. agoou compare to a year when the market is down, there's a lot to do, for example. cost containing for the and we have a lot of new properties.

those are working the way out. , we're refurbishing our two big properties. taken out.ce we suffered a little bit for rent, but that is a temporary thing. reste: temporary, but the as you mentioned outside of shanghai, a pretty mixed picture. does this show an indication of where the rest of the market is going to go in the second half for china. actually, in terms of what we already have, we're certainly looking everywhere else. we just turned down a very good piece of land recently. ande are other cities properties we deem to be even more attract if.

we are very invigorating, looking everywhere for property. yvonne: i want to get some more forecasts here. you still have about 200 20 units during a challenging first half and you compare that to the .0 x a year ago it do you expect a similar amount? what about china? >> the market i think overall is moving in the right direction. will affordmarket the opportunity to sell, i don't know. we will build out the shopping centers. those in shanghai as well as the , it is really topline and bottom line.

always good to have you here talking about the property market in hong kong and china. operating legally in china, we talk about that race for supremacy a next. ♪

yvonne: it is 830 in singapore, half an hour away from the open of trade. a gloomy day, we will see has the pork airlines trades. at one of these tougher days .fter profits surge quite a jump there. you are watching daybreak asia. happy friday. let's get to paul allen. the top stories this hour, the yen has long wildly ahead of the monetary decision from the

boj. before immediately giving up those gains, it was probably platforms. 80% of economists. alphabet surged in extended trading after it the earnings estimates. it was a dollars $.42 a share while revenue rose 17 15 alien dollars. hours also higher after projecting third-quarter revenues expected to beat estimates. shares surged 7%. down 32% from a year earlier to $446 million and expected profit

to fall to $135 million. global news powered by 2600 and analyst. i'm paul allen. this is bloomberg. breaking news out of taiwan right now. in line with estimates, up about 0.69% for the quarter. doing a little bit better than the prior quarter, we saw a negative picture for growth. little bit better here. hopesay there have been clouded by brexit as well. obviously, a lot of data to digest. let's get a check on how market action has been looking so far.

>> the waiting game continues. we are waiting to see what the central bank will do. spike seeing that big that he was talking about, it opened slightly higher. is as we continue to see investor jitters and the stronger yen weighing on those export companies. it is stronger up by .1% and new zealand has turned positive after pretty much a few sessions of gains. we do see it reach the record high on monday. this is as the company says it achieves the supply contract from the supermarket giant. and all the earnings we've been looking at in japan factoring

into the market as well. 2% in first quarter profit, a good outcome coming through. it offset the weakness from sprint. it is planning that share andack listed in new york saw it rise by the most. and share prices higher ahead of that result. it is expected to break even following the earth wake. the market should be looking beyond this. it looks like investors are treating these results quite well even though we've had some disappointing numbers coming through from japan particularly with it still in deflationary mode and overall household spending looking good as we wait to see what they are going to do.

volatility has weighed on results despite certainty. earnings that beat estimates. >> it has expected to stay week but we have become white tolerant of the harsh conditions so we are confident of staying profitable. i highly value the fact that they are focusing on structural roof forms and i expect this will re-energize the economy. >> i respect whatever the government or the bank of japan decides with the policy to spur growth. the strong yen and low interest rate has worked in favor of our business. let's bring in the

corporate finance reporter. we are in the middle of the earnings season in japan. how are companies reflect in yen strength in their announced the? -- announcement? >> we have seen it hit on some of the core earnings. it is a loss in the first quarter and slashed the forecast for the full year. a lot of these companies have built-in a weaker yen into their earnings. it can keep up in many. you've also got to remember with softbank. is domestic companies doing well.

yvonne: who is benefiting and who is losing from the yen strength? >> for example, companies like softbank, there cash flow, they are like a utility here. they are getting a cheap day but also by using the strong yen here as well. the exporter and those kind of prophets, they have/the -- slashed the profit. so they have already taken it on the chin in a sense.

how is that likely going to affect the companies in japan moving forward? >> the usually built in a cushion, but there is a big disadvantage because the yen is stronger than we anticipated even as recently as june. what we're going to see here with the bank of japan, the economy really needs a weaker yen. oda market is expecting kur to do something. it will affect the larger companies so it is crucial. iq for joining us live from tokyo. let's get a head over to china

now. uber has been given the greenlight to officially operate in china, removing a significant roadblock to their expansion. what does this mean for the operations of both of these companies? >> big news for the ride sharing apps. hundreds of cities around china, millions of users. they have operated in this gray area and these regulations give them some of initial -- some official backing. both companies have spent billions tried carveout market share. uber has a couple percent for growing fast. uber alone says it spends or loses $1 billion every single year on spending trying to carveout market share in china. ofs is a major development both companies and they will try to profit from it, obviously. yvonne: what does it mean in

practice? >> making sure drivers are registered, that they have gps and alarms installed. there is a crucial point on price. they spend money subsidizing the fares. less than thets price that would be entailed in that ride. how that plays out is a key point. local governments are going to have a lot of say. that there is a potential conflict of interest there in how they carve the regulations. we see that when uber tries to ask and but are there signs the industry is getting the backing from the government? wayt certainly looks that with some caveats.

pollution is a major problem, congestion as well. they offer some solutions on that front. another thing, they say we employ over one million workers who were once employed in those state owned enterprises. it's a big win for the chinese government is a tries to absorb those workers. employ 1.7ay they million people that used to be unemployed and a lot of former military veterans. a lot of cash to play with as a continue with this competition. dd has about 10.5 million dollars. and a positive single. >> hoping them shift or drive to this new economy.

mostng us for one of the closely watched economic events of the year, let's talk about the implications for the yen. bank of america merrill lynch. this is bloomberg. ♪

yvonne: singapore airlines is a 100 81%.mped of about it doesn't mean there's no turbulence ahead. more than six years. mostly due to the expansion of , they eastern airlines reported first quarter profit of $190 million. pharmaceutical will resume training -- trading in shanghai. to $1.26ny will pay up

billion and that will be the biggest takeover of an indian company by a chinese firm. of medicines as well as manufacturing facilities. approaches.rmal they have discussed potential ideas including a merger. company,iggest mining people familiar with the matter say there are brief discussions more than three months ago. but there are no current ones. 1.8%,rches is much as erasing those gains. markets as you can imagine, jittery ahead of the decision. many are expecting further stimulus. us now from tokyo as

chief japan strategist at bank of america merrill lynch. let's talk about the yen. the currency is also strengthened after every policy meeting. if theyhappen disappoint or surprise? , it think if you look stands out in the financial market. in order to keep the ability in a sustainable model, i think the expect haitians are quite high. it will be difficult for them to deliver a great surprise. if the boj stays on hold, it will be bullish. i think it's going to open much

quicker. to be a bigifficult surprise this time. and they're so much of this priced in already. given the fiscal package that we saw from shinzo abe, the headline figure, it is really smoke and mirrors. we are not sure how much is going to fresh spending. is kuroda obliged to ease drastically? what would that entail? trillion, the portion should be much smaller, below ¥10 trillion. enables market policy to be more effective. few is one of a

opportunities for the boj to deliver easing which could be effective. for today, we are expecting expansion of etf purchase programs. and possibly an interest rate cut. yvonne: everything short of helicopter money? i think this helicopter money discussion is quite interesting but japan's unemployment rate is 2.1%. it came out this morning, which is a 20 year low. that money does involve significant uncertainty. at this point, i don't think policymakers want to take this risk. they can come up with something else, within the existing policy framework. but it is probably too much of a stretch at this point. yvonne: helicopter money might

be a stretch but there have been different ideas that have been brought to the table as well. perpetual bonds was one that was brought word here when ben bernanke was in town where you are. chances ofink the that are? would that be a signal that the boj needs to send? that they need to start tapering bond purchases? >> i think that is the current problem. they all have to address sustainability problem of the current program. and what might happen when the boj decides to exit from the current policy. at interest rates, quantity, and quality of expansion. they can add another dimension and make it four dimensional easing. like eventual bond or a

50 year jgb bond might add a time dimension. it that is a possibility in the future. view, thingsin my will have to get a lot worse first. yvonne: a lot worse first. the government was quick to deny the reports looking into the 50 year bonds as a solution for japan. seeing as they crush the 40 year bond market. do you agree with that? can it lead to that? i think the japanese government and the boj have then been surprising the market so we can't know in advance what they really mean. i think that is probably one concern. if they do expand on maturity, that will have significant

impact on fixing the market with greater uncertainty. i think i do understand that argument. : shosuke, we will have to leave it there. thank you so much. india is planning to block an arbitration payment of almost $1.2 billion from -- to the japanese partner. they are seeking compensation for the stake in the india conglomerates wireless business. won't underministry the foreign exchange act. it is worried it will set president with 10 other company seeking similar waivers. planning to test interest next week for a hong kong share sale of $1 billion. the chinese brokerages said to have one stock exchange approval for monday with starting of

trading by mid-august. share sales have raised a $.5 billion this year, the slowest pace since 2013. hong kong billionaires are teaming up to build an offshore lng terminal to satisfy the city's energy demand. the aim to have it operating by the end of 2020. they are among the hottest assets in energy because they allow fast access to an oversupplied market. hong kong gets 53% of power from coal and 22% from natural gas. up next, rolling the dice. when the cow's newest casino -- cacao's newest casino will open. we will talk more about that. this is bloomberg. ♪

yvonne: welcome back to daybreak asia. intelligence gaming analyst, we were talking earlier this week about sands china reporting and they were upping the outlook for macau. >> the shares have fallen because of las vegas in that are good and the parent companies perspective. there were labor costs.

they beat consensus i 10%. all of that really is driving profitability and it is to leading the market. the prospects are great when you know that they are moving into the strip. yvonne: they will be competing with a lot of rivals. especially the shift towards the mass-market clientele which, frankly, they are not quite familiar with. how will they fear with them? bethe property will targeting the higher end of the business. they have hotels and amenities that are priced in a range for that particular segment. they do have other attractions that will potentially dip into that mass-market clientele. traffic to that many cluster they have. the biggest challenge for that is whether or not they can competitively priced the cash

clients. this is what they had been exposed to prior. yvonne: what should investors be looking out for? >> obviously, their forte is efficiency when it comes to gambling businesses. when it comes to profit per table, they do really well and it will be interesting to the as it carries over to coat type -- where the mass-market will potentially filter into their casino. , it willthat hold up be an interesting point to see. yvonne: thank you for joining us from bloomberg intelligence. that is it for us on daybreak asia today. was coming up? ,> we have the bank of japan the decision coming from the government that they will be increasing the stimulus plan and monetary the that is already in

they might be doing both or either of those things. when it comes to the japanese economy, household spending falling 2.2%. the pressure is on. it is also pressure on hillary clinton to deliver as she formally accept the nomination of the democratic already for the white house. listening to her speech coming up in just over an hour's time or thereabouts. government restrictions really helping to reduce revenues from advertising. joining business is next. ♪

♪ theaad: it is friday july 29th. i am rishaad salamat. this is "trending business". ♪ rishaad: we will be live in tokyo. the yen swinging alongside asian equities, markets jittery ahead of the boj decision. pressure on governor kuroda to take action. daegis brokerage announcing a buyback after its biggest overseas quarterly profit and seven years. hillary clintoan