yvonne: 7 a.m. here in hong kong. i'm yvonne man and welcome to "daybreak: asia" amazon asia's some of the -- amazon eases some of the faang. facebook took a eating. month of scandal. one of $20 billion wiped away. ramy: from bloomberg's global headquarters, i'm ramy inocencio. the u.s. and china clash at the wto and washington threatens sanctions on nato ally turkey. the ecb is ticking to bond

buying and rate have strategy. broad-based eurozone growth ahead. ramy: good friday morning to you in the asia-pacific. still thursday here. are ona look to where we the markets. it was a messy day today as you mentioned earlier. earnings on the negative side as ellis the positive side from facebook as well as amazon. there was also a little bit of an interconnect of ecb. unexpected pause and rate hikes. we did see the euro all. it will be an interesting hand over to you guys based on happened here in the u.s. it is interesting, we see asia-pacific poised to get a three-week winning treat.

we haven't seen this since the correction we saw in early january. we will see if this relief rally, from earnings as well can propel forward. amazon eased those concerns. certainly, tech stocks could in focus. ramy: amazon in after-hours up 3% or 4% depending when you looked at it. show the u.s. market close. the word in my mind was messy. the dow up for 10th of 1%. the s&p 500 down one third of 1%. text was the leg or as you can see with the nasdaq. we can see what is happening in terms of currencies. the bloomberg dollar spot unchanged but it was up 6/10 of 1%. that was the biggest gain in one week. heading toward second quarter.

theeuro also falling across dollar. mostly, unchanged. take a look at the bottom. --kish lira catching a bit 4.86 rising higher to a weakness because donald trump is threatening as he says, the largest sanctions if a pastor at the center of this brouhaha is not freed. yvonne: take a look at how asia is that appeared we look more positive here when it comes to equity futures in japan as well as sydney. we are seeing sydney futures up for 10th of 1%. currencies,k at $its biggest gain in a week. we are seeing a mixed picture when it comes to currencies. , when they ease a bit yen is a strengthening.

resuming its drop at 682 -- at 6.82 and we heard from robert lighthizer, playing down hopes for a china deal. that will be in focus here today. he did seat yields ticking higher when it comes to european at the 10 year german bund up. and kiwisury at 2.98 watching the nine basis points. -- no stepping and from the boj when it comes to extract operations. fueling more speculation that they may tweak policy. going back to tech, two of the faang stocks. better than expected results for amazon in the second quarter well i've booked deliver the biggest dock market plunge in u.s. history. where joint right bloomberg intelligence senior analyst.

thank you for joining us. first ofk about amazon this is a company that usually focuses on the top line growth. so, basically the revenue site they missed. the big story, the margins expanded across the board. thing a lot of efficiencies in the ecosystem with the scale developing. aws work its. helpn program continues to the retail business from margin standpoint. the revenue though came up a bit short. we also saw when it came to north america, international ales were slightly below estimates are 23 on the? >> if you actually look by segment, aws was strong. third-party salary growth was strong as well.

that is one dynamic that is changing. when amazon revenue, the only book the commissions they connect. -- they collect. it becomes a bigger portion of revenues and it has a muting effect on revenue. what it doesn't the interim is used the margins. a sickly, that is one piece of the equation -- they sickly that is one piece of the equation. seems amazon is favored to win this pentagon deal. to what degree could that help the bottom line? look at the aws quote, there were a lot of questions about competition in general like google entering the space and microsoft ramping up efforts. what does it do to pricing? two margins? growth rates? thing coming out

of the walls call -- google's call, they see an inflection point happening in clout in general and it is nowhere a zero-sum game at the moment are the market is big enough for the three or four players in the market to grow double digits. that is the segment we are in with the pentagon deal on it supports the growth story or amazon. ramy: switching to facebook, we have to talk about that down some 18 or 19% officially here. is this the new normal here? in terms of growth or people are saying instagram, but instagram is facebook. >> you're right. core facebook is slowing of the weight is on instagram's shoulders to bridge the gap between where they are right now and when they start to monetize other big properties like messenger and whatsapp. we feel the monetization is probably like a 2019 tory.

the next couple of quarters am instagram life story monetization is where it hinges on. we are not there yet in terms of monetization. there is room to grow. that is holding to growth back a little. core facebook is slowing. billion,ing off $120 the most ever in terms of market cap. bloomberg intelligence senior analyst. thank you. more after the bell earnings. we are seeing intel and our books on the move. su keenan is across all of this for us. let's start with intel. su: forecast was bullish. they beat on most mnuchin death most measures. it. actually came in under did the math and thought there might be some slowing growth in the fourth quarter. let's take a look at the big

picture story. intel has been a story of strength here at 80% of the pc market. datacenter is is center surged in the second quarter. they beat on most measures and took revenue in the court order -- in the current quarter. they've increased revenue target to a record 69.5 and they are up 12% year to date. it is interesting to see how this plays out in the friday session on wall street. let's go into starbucks. what we have is an after-hours trade that was one point up and one point down. a bit of a gain there. mixed results was the story of this tough first half. the company taking bigger steps to correct its course. nationwide, they plan to have delivery in china are the end of the year to correct soft china same-store sales. key sales in the u.s. grew only modest they as the store chain

struggles to find something more interesting to attract customers. again, they are planning to boost u.s. sales with a new advertising campaign. they also beat on the number, 62% per share adjusted. that beat by a penny. yvonne: just talking about the regular session, it up third traders are bracing themselves for another fine hit -- faang hit. su: there were some other strong performers. the big drop in facebook, let's take a look at this cap shut. we also had a stronger dollar which caused gold lower. the biggest was the nasdaq. the strength was a lot of data gainers such as young china, shares were 28% at one point. you don't really get the full gauge of the game.

inlcrest capital reportedly takeover talks. let's take a look at the movers. by the end of the day, they still managed to lock in a better than 10% gain, the biggest move since they went public in 2016. buyers taking a hit. you're seeing advanced micro group higher. then, which is a data service for consumers and tv, getting a bevy of that news. quickly into the bloomberg, dtv is where you can i'm the library of stocks. now, a 20% year-over-year increase expected for earnings. in 2019, it will drop to 10%. he analysts say that will be strong sales is right now it is the tax savings is think the

earnings thanks in part to president trump. thank you. su keenan, joining us from new york or the get to first word news. china clashedd with the wto with washington amending reforms to make the chinese economy workers at the two market forces. the ambassador accusing the u.s. of distortion and extortion. saying beijing will not respond to heavy-handed tactics. the u.s. repairing duties on to billion dollars of chinese goods. president trump has threatened onds -- threatened tariffs 500 billion. >> a lot of which is not the result of real economics but is the result of state capitalism. >> the house of representatives has noted to widen review the foreign investment industries and to maintain president trump's deal to revive chinese

telecom giant zte. that now goes to the senate. the legislation is as making andese more difficult time-consuming. with an increased risk of being blocked. the lira extended losses after president trump threatened tensions on turkey. demanded the release of an ink evangelical minister. president trump tweeted the united states will impose large sanctions on turkey. this innocent man of faith should be released immediately chiefhe european union brexit negotiator has rejected the central art of the trade basel arid dealing a major low to reaching an agreement by october. ,heresa may offered a model sterling weekend after dismissing id -- dismissing the

idea saying it was a nonstarter. global news, 24 hours a day, on air and at tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. thank you very much. still ahead, amazon's second quarter success. we will discuss that and the company's prospects in asia. yvonne: plus, the ecb remains on track or tightening while the boj keeps markets guessing. signing --dvisors talking healthy next. this is bloomberg. ♪

ramy: welcome back. this is "daybreak: asia" yvonne: the european central bank to its plan to end on purchases as eu in u.s. the back of a trade were.

but skied kathleen hays in new york with more on this. mario draghi upbeat on eurozone growth. he wrapped up the meeting 20 minutes earlier than usual. he considered back and relax because they are not going to move for a wild. that is one thing we can say for sure. we see rate hikes but they are way out in the distance. let's listen to something he said during the press conference earlier today. >> domestic pressures are strengthening and running. capacity andels of tightening labor markets. >> he also said he sees the euro area economies table lysing at the june meeting, he's dead -- he mentioned pockets. every onee, he says is on track to end bond purchases and october and hiking rates in september 2019.

they are in no rush. as for trade, the report notes the possibility that trade tensions continue to cause uncertainty. very interesting though. mario draghi was constructive. he sees hope from that meeting yesterday. this meetingte of and one can say something general, it is a good sign. it's a good sign because in a sense, it shows that there is a willingness to discuss trade issues and a multilateral dream work again. >> two more big central-bank meetings to go. everyone will be keenly awaiting the policy statement might wish to see if they've gotten concerned about trade. that's the winner. the one that has everyone on the

name -- on the edge of their seats. ramy: let's pick right up on that and bring in the sth founder and ceo. interestingthe most or concerning central-bank out there, would you agree it is japan? >> in the near term it is. they have the biggest footprint in their markets by far of the big three central banks. if you look at the amount of want purchases. people look at the magnitude of the change and it is like watching paint dry. i they going to come in at nine or 10. but the size is so massive. that is the last of the three mohicans to so to speak. moving toward normalization. is a bigest signal

deal not just for the japanese bond markets for but for global. ramy: yvonne: what about the ecb? quite frankly, everything about them is a technical right now. what are they buying come are they going to reinvest in proceeds. once a get past the obvious. what are we watching right now? >> it is all to be talking about the ecb when amazon and facebook are moving 20% and it moved one basis point today. that is exactly what they wanted. they wanted nothing to happen at this meeting. when it comes to the ecb itself, there are two question marks. on the short end, people are looking at this commitment through keeping rates as they are through the summer and perhaps beyond. i don't ink we are going to get clarity on that anytime soon. and mario draghi pushed back on that. on the qe side, that is on

autopilot as well. they will go to zero and then normalized. there is a question mark about the reinvestment. it doesn't move the needle a lot. i think the interesting thing is it reinforces the commitment to keep both rates and the qe process on autopilot for -- through 2019 give or take a couple months at the end. this is interesting for the currency markets to me. it sets up a real sick carry trade. they say we don't target currencies, but this is very interesting if you are looking up currencies. you look up relative rates, the markets are still underpricing the fed. certainly from where the dots are. interesting for the euro. it is setting up for a sustained move downward in the euro.

he was pretty upbeat about the. what will be driving the euro lower? >> i think so. we have to put in context of what that means. you have a little bit of bullishness on the economy. that doesn't change the rate pass. and it is coming off a strong 2017. not slowing down as much as we expected, so it looks more normal. in the u.s., we're looking at gdp tomorrow. there is a chance these numbers will continue to beat. it really comes down to a differential. even though he was a bit more positive on the economy and real economy, if you look at it

compared to where you could go on u.s. rates in the short and long run, i think it is bearish for the euro. you kind of put that uncertainty aside and you can focus on the u.s. i. yvonne: 4% gdp. the impact from tax cuts is about $300 billion on u.s. economy and even a bed tariffs scenario only take out about 70 billion from the economy. what does that mean when they see that 4% rent? i know you have been a fed watcher for many years. what they will to pick a say about gdp print is they really look through them to some extent are there is a good deal of a facility. aroundarter, it will be three it. so, it is whether it confirms their base case scenario or if there is any big outliers. from a market perspective, if

there are big moves based on this number, i would look in the general direction the fundamentals are driving it. i don't think that will be a big eel at all for the fed. >> to hikes this year? >> yet. looks likely. ramy: walking in from before. there we go. thanks very much. you can get a roundup of the stories that you need to know to get your day going in today's edition of daybreak. is also available on mobile in the bloomberg anywhere app. customize your settings so you only get the news on industries and assets you care about. this is bloomberg. ♪

yvonne: a quick check of the latest business flash headlines.

nissan adding to the global loom. first-quarter operating profit plunged 29% about 1.5% below the average estimate here it nissan says worse may be to come. cost right raise $6,000 with locally made vehicles also rising because of higher components cost. ramy: net income tumbling 91% last quarter $247 million. the brokerage losing 70 million outside of japan. that is less than two years since returning to international profit. the main culprit was europe where revenue fell across the board. sufferedat home also trade for hitters. shares are now down 16% this year. yvonne: singapore airlines first quarter profits fell 59% as surging it feel prices trimmed earnings at the biggest carrier

in southeast asia. well below the $157 million average we are seeing -- foreseen by analysts.

yvonne: happy friday. it is 7:30 a.m. in hong kong this morning. 30 minutes away from the major market open. 7:30 p.m. thursday here in new york where markets close down a third of a percent. a lot of that had to do with one stock in particular, that was facebook. the s&p infotech sector with the biggest laggard on that index. we will see what happens tomorrow. but the nasdaq was down the most, down by more than 1% to cousin of his book and tech laggards. i'm ramy inocencio. yvonne: you're watching "daybreak: asia" and let's get

to first word news. end on purchase, the economic expansion remains solid. will buyghi says he the equivalent of any $5 billion of assets a month until the end of september, reduce it by half of october and stop purchases at the end of the year. he has pledged to keep interest rates unchanged through the middle of 2019. notably related to the global trade environment. it will remain permanent. the information available aims -- indicates the economy is proceeding along a solid and read based growth path. 19% onbook plunged thursday after months of scandals finally hit growth. chairs had previously seemed

immune to fears criticism of the content policies. since the changing roles on ads. tank i spoke missed sales and wiped away more than $120 billion of target cap. saudi aramco considering tapping the international bond market or the first time. intoe told such a move anble capital could offer alternative to aramco's delayed ipo if it goes ahead, it would force the world's largest oil producer two to close accounts to investors for the first time. former cricket superstar imran isn has declared victory and declaring a new pakistan. final results are expected on writing and it is not clear if khan will have an outright majority. stocks reacted positively.

investors want a new governor -- a new government to take power quickly. global news, 24 hours a day, on air and at tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. i'm jenna dagenhart, this is bloomberg. yvonne: jenna, thank you. on what we should be watching as trading gets underway in asia. global market editor joining us from knee. it was a most interesting stories this week, the move in jgb yield. bond yields rising the highest in more than a year. what is going on here ahead of the boj meeting? to the last few months and years of a sleepy japanese bond market. suddenly this week for bonds to be back at the forefront is very interesting indeed. it is all about a bank of japan meeting suddenly in play because

of pressure ports out in the last week or so of a potential for the bank of japan to start the discussions that will pave the way for the changing of this extraordinarily loose monetary policy in japan. it has been very pronounced and a lot of pressure on the bond markets there. can see that move on this chart here. nowmarket is very divided as to whether the bank of japan will indeed give us some language and context around whether they are indeed thinking about changing this policy or whether they will stick to their guns and key policy as it has in over the last few months. one of the big pressures banks have been faced over the last few years because of this yield policy that came in 2016 has been a tough place for bank

profits, putting a damper on their earnings expectations. we havehe big moves seen this week is in uptick in bank stock prices that have rerate it given how much japan bond yields have moved. we will again be watching the open of japanese want markets today ahead of that meeting. ramy: looking ahead to that. the other big the medic in asia has been signs of authorities in china loosening policy there. banks have been one big beneficiary of this. what is changing people's assessment of the outlook and has this rally got legs? remember of course the chinese equity market has been under significant pressure of the last few months. it has gone into a bear market and banks in particular have been and incredibly hard hit and become a volatile place to be. what has changed in the last few days is banks have had a diesel rally is more signs of policy

easing in china, specifically making some tweaks to the requirement that banks must adhere to which obvious the in route potentially their outlook. in tanks.decent rally remember some of the valuation discounts are incredibly extreme. this chart shows it clearly. it shows the valuation discount on banks relative to equity lun nations across the rest of the market across the world. these kind of discounts have allowed some longer-term investors to come back in and by some of these heavily beaten up stocks. given the capital requirements and changes there have come on the back of a number of reports over the last couple of weeks that have shown the pboc and authorities in china really doing their up most to stabilize things there how hard hit markets have been. yvonne: certainly we will see

how things go here in china. out the gtb to head library. it is on gtb go more earnings to tell you about. intel tumbled in late trade despite reading excellence -- beating estimates. market giants continue to upgrade their markets. let's cross over to technology reporter ian king. he joins us from san francisco. a lot of uncertainty around the rest of the year. >> what that tells you is not telling you, it is telling you about not putting to rest some of the concerns about the longer to medium-term futures. there was a focus on the manufacturing for the have always ruled the world in

semiconductors. now, they are saying it is delayed and that is causing concerns that other companies are going to catch them. yvonne: is it more about the operational side of things and intel may not be able to keep up with demand or is it focused on the leadership vacuum now? the departure has lifted the lid on the underlying concern that investors and analysts had about intel's future. short-term, they said we are struggling to keep up with demand. we have so many orders. we will have to work hard to make sure we meet those. people aren't as much concerned about that as a are with the new manufacturing technology which they should have moved into and they haven't. what can the new or interim ceo robert swan do?

there will be tough shoes to fill? , he people like bob swan was bullish on the call. he was like him i don't understand what the problem is here at we like the macro environment, we think piecing market will grow for the first time since 2011. he was giving out the numbers on the body language that you would toect to see a ceo or cfo give you are underlying issue is a more structural thing, a lever that intel has been pulling for 20 or 30 years that has weakened because we have factories. ramy: we believe that there. technology reporter ian king in san francisco. the earnings train for tech, amazon shares gained in extended trading after third-quarter operating income topped estimates. also optimistic about cloud

computing, advertising and other businesses. more profitable than main online retail operation. joining us now is stephen rector. his clients in the alibaba as well as tencent. i don't want to be a two later, to not bea tough eight your leader for amazon's earnings here. the only thing they sort of missed is revenue. is that a concern? stephen: not necessarily. but there was not the growth in international that we were expecting. they saw plus 27. that is not what you were expecting from revenue share. think that is the first word challenge i've heard all day. in terms of asia, what are the challenges you see first and foremost? stephen: the china market. amazon has a 1% share in the e-commerce world. % of theand jb own 70

market share. a lot of brands, particularly luxury brands don't want to do business with amazon. but to get in the china market they have to do business with t-mobile and jd. is, living ing china, when i was working with colleagues, the user experience with amazon is not compared to the othersn get with paired it is not the great experience you would like to get that you get from the other platforms. ramy: that begs the question why. the amazon experienced in the united states is pretty seamless. stephen: it is. but when you go to china and use their app it is even more seamless. they're still opportunity for amazon in china, but it has to be from the cross-border this, coming in from outside of china.

jd own the business. that's something they could capitalize on. the other thing amazon could do it-- they are kings when comes to logistics are they can get goods to the consumer as quickly -- faster than anyone else in the world. that could in opportunity and china because chinese consumer right now does not have the expectation the expectation -- they united states does. yvonne: we heard a lot on the earnings call about efficiencies within the earnings season or amazon. when it comes to subscription services, how well are they monetizing this right now through the likes of prime? is there more opportunity in asia to expand? stephen: they had 100 million

users on prime globally, the first time they had that number. prime day, this is the biggest prime did they have had in terms of all your. what happened in australia was they went past price on prime mothership. -- membership. this is the first time that prime day was available to the consumer in australia as well as singapore. there is the opportunity to build the subscription-based model in asia as well. yvonne: what about in terms of doing so -- they do a lot of different devices. the potential will be on these voice assistants, and the phone as well. how much of a potential do you see? as jeff bezos said come i feel like he wants and alexa in every house around the world. do, they willll do anything to get alexa in every household. to switch gears.

a great first day on the listing or 40% pop on the debut. what is the story behind the company? stephen: this platform has came out of nowhere in the past few years in mainland china. what they have done differently is they have an focused on the chinese population. when you think about the amount of people to live in the rural parts of china, it surpasses the amount of people live in care one cities. there is a big opportunity. the other think they are doing is gamma vocation of shopping. consumers can work together and partner together to get better deals on the platform and save a lot of money. this is something that is different than what is happening on the other platforms. it gives them a big opportunity. they rank number three. there is opportunity to grow even asked her.

it makes it more expensive than the likes of snapchat and alibaba at the time of there's. what is the potential to grow into that valuation? interestingwill be to see what happens. when you hear -- when you live in nature one city, it's not on the radar screen. how did they start to monetize and introduce themselves into the bigger cities is where you will a potential growth. yvonne: stephen, a little bit more let's talk about the competition. alibaba and jd.com are heading into the lower tier cities as well. canou think that pinduoduo pull the lead they still have? stephen: it will be interesting to see. the whole social e-commerce type of ring going on in china right now with the -- with people wanting to be together on what

they are shopping is an interesting phenomenon that is happening. i think that is going to be an advantage for pinduoduo that you don't get as much from the others. it will be interesting to see what happens when it comes to roast. there is plenty of opportunity for all the platforms. we will see what happens. yvonne: thank you. joining us in new york. coming up, u.s. china trade tensions continue to heat up with china threatening retaliation on any further tariffs. all the latest next. this is bloomberg. ♪

ramy: this is "daybreak: asia" and i'm ramy inocencio in the ark. retaliateina set to against any additional u.s. tariffs regardless of the amount. retaliation's continue to pray with two sides clashing.

let's get to stephen engle who has the story for us. you come back from vacation and things are kind of the same? stephen: nothing has changed as far as moving the goalposts. whatever sports analogy you want to use. the rhetoric is ramping up. there are no official talks or negotiations scheduled. neither side is saying they're going to initiate talks. yvonne: and you think after the the meeting we have a little more leverage president trump. stephen: perhaps, but chinese officials we have been talking to remain anonymous are saying we will double down as well. we will be in this for the long haul. geneva is the latest platform, the wto where they clash. that is the headline word. but he wto official says a work white diplomatic and constructive talks, but the -- the room was

filled out. commentssome of the coming from the two sides. , thehinese officials ambassador saying extortion, distortion, or demonization does no good to resolve issues holding our feet to the fire has never worked. that's been the thing for the chinese. they are not going to flinch. but, the ustr is preparing levies on $200 billion in chinese goods. this as trump says he is ready to go with tariffs on as much as $500 billion which would roughly be the entire amount of chinese -- of u.s. goods exported to all of china's to the u.s.. representatives saying china is the most protectionist mercantilist economy in the

world. this heart is growing every day and can no longer be tell the rated. that is the war of words. ramy: what is the latest on how china could retaliate? stephen: they are saying they will retaliate in kind. same kind of rhetoric coming from beijing. we are seeing beijing officials telling the birth off the record that the chinese government plans to retaliate against increases in any u.s. tariffs regardless of the volume of goods targeted. again, there are no scheduled talks. the beijing official saying no contact has been made as far as restarting these talks and the robertade representative lighthizer think this is a chronic problem with china. alluding to the fact this could take years to resolve. ramy: that is where we stand. a look at some of the stories trending across the bloomberg universe. bloomberg terminal users are reading about the i told you so moments of jessica mauch after

facebook shares tumbled. he incised investors to short race book. plenty of hits for story on economic impact of japan's heatwave which has led to greater consumer spending for things from cold beer and electricity fees. on tictoc, a short feature tells you why you should leave your work desk, pack your bags, and traveled the world. stories trending on bloomberg online or on the terminal. this is bloomberg. ♪ inal. this is bloomberg. ♪

yvonne: one stock we been watching here later today is bhp, planning to sell onshore assets with the p stepping up as a major purchaser. let's cross over to houston. how does this purchase is it? >> it gets them access to the permian basin, which is the

world's fastest growing major oilfield. heart of thet the u.s. shale revolution. so, buy into that gives them some key acreage in what is a region that is completely upending global markets. it is definitely seen as a marquee acquisition into the space. yvonne: walk us through what exactly bhp is selling here right now. bhp is a substantial position here in the permian basin. what is quite unique about the permian is that it is a series sounds.s -- for one acre, you can drill into as many as six or seven oil

zones. it is much more productive than other shale regions. --s is a basin which has which produces around 3.4 million barrels of oil each day and if it were in opec member would be the fourth largest. production since 2014. the place to be if you are an oil major. ramy: this also seems to be a win for activist and investor elliott management. >> they been putting the hp under huge pressure because their primary business is oil. aliott thought oil was fairly poor part of the business and one that could be sold off

to raise a lot of money. it seems they want a quite significant victory. this is quite a purchase price higher than a lot of people were expecting. also, the deal has come a lot sooner than some people were expecting as well. for should be seen as a win the activist investors in the hp. ramy: yvonne: we will see how they trade in just a couple minutes time. thank you, kevin crawley there. joining us from houston pair we are counting down to the market open in japan, south korea, and australia. you just pointing positive here. we have been watching, poised for a three-week winning streak. the best winning streak we have seen since january. certainly, we will see if the gains extent here through the session. a lot of the earnings front is what we have been focusing on. fundamentals, amazon that he on earnings.

they will be welcoming for a lot of investors here after that facebook face plant that we saw yesterday. in the next hour, betting on japan. lawrence ho joins us to discuss the casino industry reggie. this is bloomberg. ♪

yvonne: live from bloomberg's asia headquarters. i'm if on man. -- yvonne man. since june.ek longest winning streak since january. watching. problems are building at home and abroad. -- ramy: theaad: u.s. and china clash and washington threatens sanctions

on nato ally turkey. and a dramatic debut makes its founder the 12th richest person. also in the top 100 worldwide. yvonne: we've been talking about earnings, but we got lines coming from china. when it came to qualcomm dropping that deal with an xp, they are speaking out after that deadline expired yesterday. they are saying they are going to review feedback to qualcomm. investment byming qualcomm, hoping to continue medication with qualcomm, as well. i guess this brings up hope for this deal could be revived. after the wto, tempers flaring between u.s. and china, it seems

difficult. ramy: this makes me smile because qualcomm's ceo said this is clearly political. it's interesting to the timing of this because we know the yesterday and1:59 china is only right now saying it's a pity that this didn't happen, that qualcomm hold of this bid, saying it's regretting it. we saw qualcomm did pop after that deal was pulled. it will be interesting to see if investors are interested in making this happen, that is if beijing has the will. yvonne: and qualcomm said before, given how tensions are, he doesn't see the deal going through. china also says that deadline for the current qualcomm review is august 15. perhaps there is breathing room for it to revive. we will be watching this because

what we saw in the wto was certainly tempers flaring, the was trade representative harsh on his words when it came to china trade practices and beijing saying they will retaliate. ramy: looking at this through the greater lens of what is happening in what many are saying is tit-for-tat in this being pawns. zte on the other side of the equation. both beijing and washington are trying to con each other off of each other to see who might blank. something to be said they are playing around. it meansor markets, trade tensions are in a background. we've been focusing on earnings fundamentals. we saw that trickle through overnight. let's bring it to sophie kamaruddin.

we talk about the market open, set for a pretty good three weeks. asiae: good three weeks, stocks set for the strongest week since june. we're looking at a mixed the session, a game of chicken with the trade fund but earnings in focus. andon delivered overnight we had a few reports to consider. we are cutting down to the gdp data friday and the headline get a point will be china's industrial profits. today for the central bank focus, we will be digesting the remainsing and the boj the central bank of the moment. checking into aussie bonds, others flipping ahead produced flight and figures. , the one to watch after a

reported a 91% plunge in profit that sent u.s. traded chairs -- shares.han they are joining the growing list of down the reports and we have gop on what they agreed to pay for most of the assets in the u.s.. it has boosted prices. upy: we are seeing that nearly 2.7%. facebook's rout has some investors looking east for shelter though they may find that just as stormy. let's bring in garfield resonance -- garfield reynolds. should thank investors totally

-- saying investors -- saying ang investors -- want to be careful about putting your eggs in one basket. mostly alibaba and tencent, they are quite a few asian investors ready to shorten those or already are shorting those. and i think between trade fears and some of the concern that tech has become a little bit overheated, if you're looking for a refuge from faang, you might want to consider an alternative like the cyclicals or old economy shares that have been rallying in asia recently

thanks to china's stimulus measures, which are good not just for chinese economy stories, but economy stories in south korea and japan. for that matter, australia. australian shares in general thanbeen doing much better a lot of areas in asia and elsewhere apart from the broad s&p in the u.s., which has been fantastic over the past few weeks. ramy: what is the argument for growth stocks overvalued names right now? >> it all depends on where you think we are in the cycle. if you think we're not yet at the peak, that we've got growth to come, we go to growth stocks. so far that's been the main

play. on one or too tied up two particulars, but to try to go to a broader picture if you think growth is what's doing it. yvonne: don't focus on just the acronyms. we saw the amazon earnings, certainly a welcoming sign after the facebook carnage on mliv. you're saying these reports are confusing investors when it comes to amazon. why? >> the thing was, amazon has usually stressed the top line is what matters and revenue was in great. but it did great on profit. marketely it looks like said it was a good thing. think amazon is becoming mature and starting to have a profile that means you look at the eps, not so much at the

revenue and save this is the deliverable. yvonne: fairpoint. you can follow more on this story and of course what garfield is thinking throughout the day, trading on our market live blog. you can get a market run down in just one click. on ourthe debates experts as you can find out what is infecting your investing -- investments now. >> the international monetary fund says the near-term outlook for china is robust but external threats are rising and overall risks are tilted to the downside. a new report says much will depend on how the government reacts. reforms could bring stable creditbut an aversion to driven stimulus could increase vulnerability and trigger an abrupt adjustment. the ecb is sticking to its plan

to end bond purchases as the eu and u.s. step back from a trade war. mario draghi says the equivalent of $35 billion of assets a month until the end of september, reduced half by october, and stock purchases by the end of the year. he pledged to keep interest rates unchanged until the middle of 2019. >> why uncertainties notably related to the global trade environment remain prominent, the information available since the last monetary policy reading indicates the euro economy is proceeding along a solid and broad-based growth path. >> and run con has declared victory and is promising a new pakistan after allegations of fraud. final results are expected friday and it's not clear if khan will have an outright

majority. analysts say investors want a new government to assume power quickly and tackle all these. authorities in greece say they have found an indication of deadly wildfire outside athens was set deliberately. the government says satellite analysis suggests the fire broke out in multiple places within a short period. at least 82 people were killed and many more injured, thousands left homeless. global news 24 hours a day on air and at tic-toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jenna dagenhart. this is bloomberg. just checking tokyo, we are seeing shares fall 1.6%, the biggest fall since february 6 after the first quarter numbers.

tumbling. they lost money. what we heard was pretty dire. -- investors have a strong sense of crisis and they are driven by what we've been seeing and what has haunted them, which is these foreign woes. they are once again losing money and that's what the earnings showed thursday. the main culprit remains to be europe. lower revenue across the board last quarter when it came to fixed income, equities, and investment banking. shares down. plenty more to come. we look at how trade forces and earnings shift of the markets. casino gambling in japan. entertainment chair and ceo lawrence po joins us in a few minutes. crackdown on china's

in pboc moves with ning tang. this is bloomberg. ♪

yvonne: i'm yvonne man in hong kong. ramy: i'm ramy inocencio in new york. let's get a check of the this flash headlines. nomura is falling the most since november 2016 after net income tumbled 91% last quarter to $47 million. the brokerage lost $70 million outside japan and less than two years after turning profit. the main culprit was europe. revenue fell across the board. business at home suffered from trade war jitters. they lost money for the first time in two years. u.s. cannot say how the china trade war will turn out,

however the renegotiation of nafta and the auto tariffs remain central themes, and they will cause significant turbulence in the markets for years to come. yvonne: the hp rose in sydney to sell on short oil and gas assets in the u.s. to bp for $10.5 billion. it will add to operation in the permian basin. unitwill share -- sell its for about $300 million to complete its exit from the shell sector. the deal is expected to be completed by the end of october. ramy: nissan is end a -- adding to the global gloom. first-quarter operating profit 1.5%ed to $98 million, below the average estimate. nissan says the worst may be to come. tariffs and will raise the price of an imported car by $6,000 with locally made vehicles

rising because of higher component costs. yvonne: plenty of earnings in the next couple of days, headwinds blow through. joining us to talk more about this is adrian zierker. always good to see you. amazon was welcoming news for a lot of investors, faang isn't dead. but facebook seems to be the story after the 19% plunge. does that raise concerns about the skyhigh valuations? good that manifest itself and materialize in asia? >> some of the tech has showed up this year and got punished when the earnings not coming through. that's a sign valuations are stretched. they have to deliver and we can see in the u.s., what some are doing like amazon. others can't.

that's what is rewarded. in asia, we think the market looks a bit more interesting. some of these things have corrected. we will look into names benefiting from the consumption story, the china consumer story is still very strong. numbers,rter gdp second-quarter gdp numbers. we will be more cautious on the semiconductor names, which could be affected by the trade discussions. yvonne: is there still time to stay in tech? there is always debate about growth versus value. if you look at the chinese easing, that should help the cyclicals. you don't think it's time? >> the u.s. will cut back tech earlier this year because we saw violations is high -- valuations is high for the last six years. in asia, we like the tech names and consumer story, but

financials is one of our key favorite sectors. the pboc helps and the market reacted nicely on these names. ramy: one thing that struck me is that you think looking at the bank of japan, they are going to adjust their policy when they meet next week. why is that? >> there is a good chance it will be next week or at least the next couple of months that we will see a bit more tightening or at least an announcement that they will stop quantitative easing or adjust to the downside. the purchases they do make are lower than the $80 trillion they announced, and the economy is starting to do well. we expect inflation is moving up. for us, it's a fantastic short. the trade is working nicely and we can see the 10 year treasury

yields are slowly creeping up. trade very interesting . actually very easy to implement and not a lot of cost attached, but the reward can be extremely high. ramy: very quickly, let's talk currencies. the dollar is central to what is happening with the emerging markets. what are your thoughts the rest of the year? and talk about what you think the u.n. is going. >> the currency is valuable at this stage, victim of the trade war and the deleveraging we've seen in china, particularly asian currency has been weka. so region's export dependent exports are coming off of growth. the currency tends to be weak. we have an interesting situation where mr. trump has his own and possible trinity. he wants to have trade tariffs,

which are inflationary. and he has an independent interbank which doesn't matt -- independent central bank, which doesn't match. the u.s. dollar is stronger but if terrorists are implemented, this will weigh on growth. we cut back gdp growth expectations because of the trade discussion. we still think the u.s. dollar is relatively a weak currency looking at the 20th is it. -- the twin deficit. we will probably see see and why around 6.7, 6.8. the potential we trade weaker. looking ahead, we are optimistic it will find strength and the european economy is picking up again after the soft patch. the euro should strengthen and

the cn why is still traded and we see some upside. yvonne: chinese equities. you mentioned an opportunity. despite these easy measures or steady decline, why do think that is? are we plagued by this weakness we are seeing that resumes its drop? >> we adjusted our equity waves in japan. we trimmed our global equity. we're still overweight. asian markets have corrected. they have priced in a lot of trade concerns. we see some pockets of value. particularly in china, we don't like too much. looking in the onshore markets, the small caps look cheap. there are fantastic names to play and they have fantastic potential, particularly the easing part. yvonne: thank you.

head of assets in asia. melco resort's is rolling the dice on japanese casino after lawmakers greenlighted a landmark gambling bill. our conversation just ahead. this is bloomberg. ♪

ramy: this is daybreak asia. i'm ramy inocencio in new york. yvonne: yvonne man in hong kong. casino gambling may be on its way to japan. lawmakers approved three casinos for a market worth up to $25 billion, potential benefits across many industries. joining us from tokyo is lawrence ho. entertainment chairman and ceo joining us this morning. always great to have you on the program. i know this is one of your babies. with only three

licenses up for grabs, i'm guessing competition will be fierce. what is melco doing differently to win? >> it's the holy grail and melco has been working our entire lives to come to this stage so we are incredibly excited with the passing of the ir implementation bill last week and now a gets it started. has beenng formula that we build better resorts. we have the best customer base. we focus on premium and we are always looking to the future. these are traits that the japanese government and japanese culture is looking at. had you pay respect to history but at the same time, how do you look into the future? if you look at the results that

we've built, our track record space for itself. we recently opened morpheus in macau. that took years to build. we're always trying to build something that's better and that's cooler. those are traits the government will be looking for. yvonne: i know you said you've been to tokyo maybe every other week now. can you give us more detail about the meetings happening now? which companies are you speaking to? are you interested in partnerships? we're definitely looking at a partnership for japanese, because even without the need. ultimately and japan, a lot of consensusbuilding and you need stakeholders. given the sheer magnitude of these projects, it's important

to get the buy-in from chamber of commerce is, association, small medium businesses, the local community. in macau and manila and even cyprus, where we have up presence, we always work well with local partners. we started as a company that started between myself and crown from australia. in terms of working with partners, we're in the best position because traditionally and the gaming world, partnerships have never worked. m elko, we've had some of the best partnerships that have lasted over 10 years. of discussion in japan right now. most of the japanese corporate's are more engaged. thosehe next few months, discussions will be a lot more active. in terms of people we are talking to, ultimately we want

to be a part of a winning veryrtium and we are open-minded. if you look at the partnerships we've had, they are all different formats. we are very open-minded. ramy: localization is going to be key, japan centric culture centric. i understand you are proposing a city of the future, a play on the city of dreams that melco is known for. if this was built, how would this play out? lawrence: well, our idea is again, japan is a country that has some of the richest culture and the longest history. and there's so many aspects. i was here at the tengion festival in osaka and i saw and that how amazing,

festival has been going on for over 1000 years, from the oldest shrine in japan. so how can we take that history and culture and really turn it more into entertainment, education? and at the same time, make it fun for international travelers and visitors. wefor us, at the same time, want to build the most sustainable, the smartest city. making use of the latest technology, the latest in stability practices. how can we build something like that? i can't reveal too much because i'm sure some of our competitors, given how competitive it's going to be watching this program, but i can promise you everywhere we build, people have always said we overbuilt at melco. we didn't have to build morpheus or all these things. but to me, everything we've ever built has been a lead up to

japan. so i think i would literally go wild. ramy: looking to macau, there have definitely been enhancements to what has been there. bloomberg intelligence had a headline today, and i would like your reaction to this. melco resorts lags the competition despite a lineup of enhancement. what do you say to that? lawrence: i think morpheus just opened a month ago. and everybody is announcing results right now. our q2 was hampered by the fact that we had considered -- significant construction not just at the property, but at they gaming engine. and so, it takes time. when you open a new property, we've seen it firsthand, there is a wrapup period.

unlike some of our competitors, we are focused on quality. we have the most four or five start awards in a all of asia. so we've opened up morpheus very gradually on the earnings call that i had on tuesday night. we talked about over 700 rooms of morpheus. the room count at city of dreams is over 2000 finally. but it's going to take a little bit of time. we're a young company, we're energetic, and we build for the future. we want to make sure our customer always has the best experience. yvonne: we've seen recent signs of slowdown in macau, whether it's trade war related, whether it's equity markets in china, a bear market. how worried are you these factors reversed the recovery we've seen in macau? lawrence: i think we always

predicted the year-to-date growth in macau is 19%, which is well beyond anybody's expectations. having most of the southside --ustry and our own internal anticipated a tenure increase. we're way ahead of that. we always knew the second half growth rate would be slower than the first have based on year and year columns. of course the trade war benefits nobody. i think a lot of the chinese businesses, that they are subjected to the tariffs, will suffer. having said that, our business is principally driven by the chinese economy. what is more important than chinese economy is chinese policy. anticipation for the potential of further escalation in the trade war, china is

making their various policies more accommodating and similar. i think trade war is not good for the world but ultimately, i think china will be prepared for it from a strategy standpoint. ramy: in terms of melco's own strategy for growth, i'm just looking for the mass-market tables you had versus the ip. mass markets are going up and vips are going down. what is the balance you are trying to reach? melco, even 10 years ago when we first started, we've always been focused on the mass-market. we are the creator and inventor of premium maps. that has always been our core business. 85% of our groups come from that, and that is a more sustainable future for the

industry. and also in markets that japan is looking at. that's why we are focused on the premium customer base. el that our customer base stay longer at the property. they're more sophisticated, more educated. that's the right customer mix for japan, as well. we will focus on developing how we communicate with our customer base better. and also, what are the things we can do to continue to grow this market? yvonne: lawrence, before we let you go, i know you're in japan. you have offices in tokyo and osaka. what is the swing factor for you in choosing an ir in japan? nce: again, as i said

earlier on, i want to build the most awesome thing ever. i want to go wild in terms of building this. the city, or the protector that we can achieve that, has to be one that has great infrastructure access, close access to international airport, and also the tourism appeal is the highest. we spent over $10 billion in macau to build something amazing and awesome and technologically advanced and environmentally sustainable is going to cost at least that in japan. when he to have a city that is the bigger city. a bigger city close to tokyo like yokohama oracle zika. -- or go suck a. -- or osaka. those are our prime candidates. ramy: we'll check in with you as this moves ahead.

we've got some breaking news right now coming across from telecom across the bloomberg terminal. second-quarter operating profits is 2.6% below estimates. 4.26rofit came in at billion one. sales lessquarter than expected. the estimate was for 4.26. it did beat 91.6 billion one won.s the 744.7 5 billion all right, let's get the first word news now with jenna dagenhart. jenna: the u.s. and china clashed at the wto with washington demanding reforms to make the economy more

responsive. they said beijing would not respond to heavy-handed tactics. the u.s. is preparing duties on $200 billion of chinese goods and present trump threaten tariffs on $500 billion. facebook plunged 19% after months of scandal finally hit growth. it seemed immune to fierce criticism, the failure to protect private data, and it's changing rules on ads. it wiped away billions of dollars and market cap. seti aramco is tapping the international bond market to finance a move for petrol chemical giant. such a move into global capital could offer an alternative to the ipo. it would force the largest oil producer to disclose its account

to new investors for the first time. global news 24 hours a day on air and at tic-toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jenna dagenhart, this is bloomberg. how thetend to see asian markets are shaping up this morning. let's get an update with sophie kamaruddin. sophie: finally could be running off the strongest week for the asian stocks since june. earnings and china's stimulus policy, the cost be edging slightly higher. japanese stocks rising for a fourth day. the 10 year yield climbing once , more thaning doubled on friday. on speculation the bank will fine-tune its policy to mitigate

fx on japanese lenders. we will see if they move to contain yields. lgcking on stocks in focus, electronics sliding after weakr -- sliding after weaker profits. rising and is spending to spend trillions of won to build a plant. on the other end of the spectrum, you have numeral falling the most in six -- no mura falling the most in six months, less than two years after the ceo returned the firm to profit outside of japan. this is down nearly 5%. year. yvonne: let's go to gerald allen

with the latest from tokyo. it seemed like there was many negative prizes -- surprises. what are the main woes? interesting that it's a real negative supply -- surprises. i had to look twice at the profit numbers. it should be $50 billion, not $5 billion. everything was there. you tend to find that wholesale business is dead, it will be offset. this time, wholesale business made its first loss in two years and retail was down, too. japanese investors have been spooked by the trade war. they said they are sitting on the sidelines and watching, not trading at the moment. nomura has really been hit and all areas. if there are a couple of positives, they succeeded in cutting into it.

decent banking business advising on big deals. overall impression very negative, and they are going to need to take action to do something about this. yvonne: they're also losing money abroad. what's the situation when it comes to foreign operation? gareth: i think they lost money in all regions this time around. managed their achilles heel. it's not that they haven't been trying. nomura cut a lot of jobs in london and in america just in the last couple of months. they been trying to control things. when nomura was asked about job cuts, he basically refused to answer the question and said they are constantly hiring and firing and trying to make adjustments to turn around.

particularly, europe was bad again and they are going to have to do something about that. they said all the executives are looking at the sense of crisis and the exact words were, they are aware of the issues but it doesn't seem like they are looking likely to turn things around. ramy: that doesn't instill confidence when your executives talk like that. gareth allen in tokyo. shifting to the mining world. the bulletin says it plans to sell its onshore energy assets with bp stepping up as a major purchaser. let's bring in david stringer in melbourne. how does this purchase benefit bp? what both companies have talked about this morning is a template $5 billion deal that they acquire the majority of the hp's u.s. onshore and gas

assets. the ceo bob dudley says it's a transformational acquisition. he's probably not wrong. it's the biggest acquisition since 1999. the key thing is that it gives them anchorage in the permian basin. that's the hot property for u.s. oil and gas, shall production, one of the most productive centers for oil and gas production in the u.s. this marks bps first entry into the region. it also gets across louisiana and texas. could skew bpsy portfolio toward oil production. guess has been the more dominant source of energy for bp in the last year or two. potentially an important deal for bp, also a good deal for bhp. they're trying to offload the

shell unit. with these two deals, they exit from that sector. ramy: what does it mean for bhp and its battle for --? after all this, what are they going to do with the money? atid: they pushed bp to look underperforming assets that was a spinoff of oil and gas, but came around to selling shell was a good idea. they will be happy to see this deal done. plenty of other investors. bhp donated $20 billion and shell assets. it has never really panned out. it hasn't worked for them. they are getting out with close to $11 billion of deals. most of that money will be returned to shareholders. that's what the company said today. it's expected to close in october. we're looking at the start of next year to see impressive

rewards going back to investors. what is the strategy going forward? is is the market point where they could shuffle its management team? still questions to resolve. ramy: david stringer coming to us from melbourne. up next, china's peer-to-peer lending sector is under scrutiny with hundreds of platforms failing. we look at the impact of the wider financial system. yvonne: chinese e-commerce startup falls on his debut, making its founder among the world's wealthiest people. more on that. this is bloomberg. ♪

yvonne: this is daybreak asia. i'm yvonne man in hong kong. ramy: i'm ramy inocencio in new york. check out in china's it appear lending industry is getting faster. at least 118 platforms failed

this month alone according to shanghai-based you tom group, the highest number in two years. let's go to beijing were tom mackenzie is joined by the ceo chinesetease, this is a wealth management firm. tom? yes, thank you. one of the biggest semtech companies in china. and it listed in the u.s. thank you for your time. i want to kick up with a credit environment. in the first half of the year, we're in an an environment where we saw tightening. now we are seeing a switch, a looser credit environment. what impact -- are you starting to feel the impact? guest: we are seeing positive changes, and changes mainly for the small business sector, which

is very helpful to innovation and to employment. and also, chinese companies are becoming more technology driven, more innovation driven, looking for higher quality, not just volume. so recent changes are rather positive. tom: do you expect to see additional steps and policymakers? do you have regular conversations with regulators? you are close to the people making decisions. do you expect for the measures? guest: i think as chinese economy is booming, there will be more changes in policy to help new economy companies like education training, like health care, like customer services, like technology sectors. yeah. tom: in terms of the pgp sign of the business, we've seen in the month of june, 120 businesses effectively having to shut up

shop as a result of regulatory pressures and crackdown on shadow banking. concerns about the viability of the business. how can people trust this sector in china given what we've seen in the last few months? guest: actually, we're going through a clean up hospice, -- process, a regulatory registration assess. -- process. after that, it will become more clean and regulated, which is good for market leaders like us and also for investor community who will become more knowledgeable. so i'm hopeful in 18 months, we'l have a much better semtech marketplace. tom: what will the impact be on your revenues? guest: we haven't been negatively affected much because we have diversified our is this -- our business from inclusive

finance to wealth management and alternative asset management. and also our lending business is not just for urban consumers. is for rural people and also small people -- small businesses. i suspect the market lending industry will be beneficial to the small business sector in the coming decade. tom: how are the trade tensions between beijing and washington affecting asset allocations for your clients? guest: our clients have a better understanding for the need of further diversification, to have a balanced portfolio. many of them have made their wealth from traditional industries, including importing and exporting. now what their needs are, investing into the new economy, digitally transforming their businesses and thinking about how to do success of planning

because these people are in their 50th, 60th, or even 70 years old. it's time for them to think about this key issue, how to pass on their wealth to the next generation. tom: wealth management is a big focus for you, $30 billion of assets. what are your ambitions in that space? guest: i think we see tremendous opportunity in china. chinese entrepreneurs have created tremendous wealth in the past several decades. but now the investment framework is changing from fixed income, bank of guaranteed investment opportunities, to equity, to long-term investing from a short-term speculation. from china only to global asset allocation. from traditional industry to new economy, like a venture capital, private equity. so we see tremendous opportunity

in china wealth management. and also, technology can play a key role to make wealth management solutions possible to china's emerging middle class. 300 million middle-class chinese. tom: riso on track by 2020? guest: we are looking at it. there are many possibilities. i'll leave that to our trusted advisors talking to us all the time. tom: the regulatory environment doesn't change? guest: we'll see because there's still time. tom: thank you very much indeed. one of the largest semtech companies in china talking about the wealth management opportunities and it changing credit environment. yvonne: great interview. tom mackenzie with creditease.

there was a debut in new york on a high, surging 44% after raising $1.6 billion. pdd is backed by tencent. that catapulted its founder into the race of the world's wealthiest. let's get to david bramley, the story out of beijing. investors are really buying this growth story. david: that's right. it's seen such extra very growth in terms of the amount of traffic and urgency on its form. -- platform. this is a three-year-old company. the market cap is over half of jd.com, which started earlier. one interesting thing here is the model. how do they manage to keep prices so low and still intend to be profitable? well, you've got to be

careful here because it's such a early days. their main driver is to get as many customers onto the platform as possible. that's why they are not really collecting that much revenue, other from the commissions or from the advertisers. that's still to come. that translates into much cheaper products. also, a lot of these merchants are the ones who moved away from alibaba because they couldn't get enough attention. we're talking very cheap products commoditized. that's how you get lower prices for customers. yvonne: certainly willing when it comes to rules. how key is this backing from tencent? david: absolutely vital. huge amount of their traffic comes from wechat because obviously, the way their business model works is friends and people buying products will share it with their friends and family members to get a discount. without we chat to spread their message virally, they wouldn't

be getting nearly as much traffic and not nearly as much emergence. ramy: bloomberg is a technology david bramley in asia. before we handed over to bloomberg markets asia, let's take a quick look at how markets are trading. in the u.s., we are seeing mixed markets, the kospi on most negative, nikkei up about .33. we've got more earnings coming through, kia motors missing estimates quite big. we'll see if there's reaction from the stock later on on bloomberg markets. ♪ this isn't just any moving day.

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near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. rishaad: asia-pacific markets muted at best, in their longest winning streak since january. shares down since the u.s. election, down 90%, with problems building at home. geopolitics back in the headlines. the united states and china clashing at the world trade organization, while russia threatening sanctions on nato ally turkey. hp is on the rise after announcing the sale of its on short oil and gas assets to