emily: so, p.j., where does nintendo go from here?hat do you see in terms of future partnerships in terms of products? who is next to lead? pj: i think that's a great question. a lot of his legacy is not only did he find the secret sauce for the wii and create something that was a great legacy of hardware, but he also helped transition the company into the digital age and set them up for new revenue streams that they had never seen before, and the partnership with theda and on -- a dna on the mobile front is huge. they talked about amusement parks coming forward. they are now into the toy business with miibos, and eu have the next likely logical expansion which would be what do you do with the ip with tv and movies, so all of these things that are coming have been set up with iwata and his leadership, and these are things we are going to see for years. and you mentioned reggie. reggie is a great gentleman who is running north america quite successfully. i am not sure if they bring some of the over from the u.s., or do they stay locall

nintendo is using the old and the new at e3 this week.haven't seen this franchise on a console since 2005 when it was on the gamecube. nintendo striking a rare deal with activision. the gaming giant is bringing its amiibo figures in. users can play as that character in the game. reggie, thanks for being here. you guys historically have been really protective of nintendo characters. why this partnership with activision, and why now? reggie: when activision first came up with these kyle anderson idea, they had conversations with nintendo first. -- with the skylanders idea. the conversation was on how amiibo figures could integrate with what's happening in the skylanders' world. we partnered to make sure the balser and donkey kong characters move the way they needed to in this universe, but the gameplay -- is all about these figures. it was a great collaboration. just the kind of thing nintendo likes to do. emily: the star fox game is a fan favorite. why bring this back now? are you hoping it will spark sales of the console? reggie: it lever

this is a good sign for minute -- good sign for nintendo, showing engagement. maybe that will continue going forward. hats off to nintendo in a way you can carry it around the house. doesn't have to be on the tv. can play it in bed, in the bathroom, on the balcony, wherever, you know. it fits people's lifestyles. hats off to nintendo for that. heidi: hats off indeed. i had my own doubts with that decision. switch is a hit. what's next? there's two big themes going forward. one, can they make enough? about 2 million this quarter, where demand was double that, probably 4 million. the holiday season, guess what, demand will be high. analysts say they could sell 8 million, 10 million that quarter alone, but nintendo can't make them fast enough. solving their supply issue is a big theme. theme, something you wrote about last week, because you can do both with the switch, on the tv, play it with your hands, it kind of does both functions. keep in mind, nintendo, since 1989, when they introduced the gameboy, they've always had two different products. switch does both.

nintendo is trying to create a new way to play.nt to mix handhold controllers with the device you can play on the couch or on the go. we're going to try a little bit of mario kart. let's go for it. there is also the much loved zelda game coming out. a new version. they are also working with over 80 developers, but they will not be ready at launch. what is the difference between this and the wii u? >> we are never seen this in a console. you've always been tethered to the tv. >> you hop off the couch, and if you want to keep playing, you can start where you left off. you can continue to play alone or i can play with my friends. it will be important to see what sales will be like in the first two weeks, that is very critical to show consumer demand for the device. caroline: some get all the fun. coming up, amazon goes on a hiring spree while yahoo! announces more changes. we have the biggest stories in technology. this is bloomberg. ♪ >> you are watching bloomberg technology. the u.s. justice department has issued a scathing report o

tell me how big a deal this is for nintendo. this is a huge deal for nintendo.fantastically huge game, bigger than any nintendo has created. we brought it here to e3. boothe lines around the with people waiting to get their hands on this experience because thes so phenomenal, pushing edge of our system and we have committed to launch it sometime next year. we are excited and the fan reaction has been fantastic. of fans were hoping you would really some details on the new console you have coming. what details can you share? is for thiswe said year, e3 is all about zelda. it's all about this brand-new experience where you can go through this environment, anything you see, you can get to and explore. that is what we brought to e3. we've got plenty of time between now and march to shared details, so here is all about selden. so news is the entire him or zelda environment and the attendees at the show are loving it. emily: your competitors talk about the xbox and a new playstation. how do you think the new console will stack up against them? about for us, it's not sp

, but nintendo three dead -- nintendo three ds as well.s interesting, our competitors believe it is all about processing power. nintendo believes in fun. our content bring smiles. our content focuses on a fun and enjoyable experience. for us the technology is a small part of what we deliver. we deliver smiles and fun. >> mobile gaming continues to be a big growth driver. what are the lessons you have learned? >> super mario on the iphone and android, we are selling this application and games that have never been able to enjoy nintendo content before. all of these markets are enjoying this application. mario is reaching new types of consumers. we launched the game doing exceptionally well, how to bring our content to smart devices effectively, that bodes well for our future efforts including our next application. emily: pull ceo tim cook visited japan last year. how did that go? >> it went incredibly well. as we were doing the planning for super mario run, we had our key game developer there. what we have been able to foster is a strong rel

the top three of all time all caps and nintendo name. carry nintendo name.r three was mariokart w ii. it helps them and nintendo's dominance as the choice for casual gamers. in second, yes, nintendo's iconic super mario brothers. millions of copies since its release in 1985. it was hugely influential in the best selling game of all time for about three decades. 4 cameas until wii along. a came with the wii and help define their success of the original wii console. one!le in number one. >> and i thought it would be super mario. slightly disappointing. sayinge of our guest was companies like disney n-- >> it looks like they might license the characters. they should be pushing. this is what investors want to see happen. the stock was down. >> up next, the super bowl is right around the corner. h&m is gunning for a touchdown. we show you how i knew david beckham ad campaign. sodastream's super bowl scandal. ♪ >> time for today's company news. ian w has introduced introducedbmw has limited models. --is one of one model costs $458,000. and starbucks. promoted in t

--t nintendo only competed completed two nintendos, that consul is ready -- console is ready to changebusinesses, as well. overall, growth not impressive. business withone horrible position and losing almost $1 billion. they are not willing to exit that. with the announcement that people are adjusted, i think this will put more pressure, global scrutiny, that will drive management to do the right thing. that will drive upside. i don't expect large upside, unlike nintendo. if it goes through with the mobile success, as well, i expect 75%, 80% upside. sony, 15%, 20% upside. shery: what about their movies to your unit? -- movie studio unit? atul: i don't think sony is going to do that. they didn't do it last time, rightly so. we argued they should not and we still argue they should not. they are on track to generally turnaround this business. this was only dependent on spiderman. but you might recall jumanji, venom, a few others. the movie studio is on track to turn around. this is not the time to exit that at all, unless you get very rich valuations from bidders. shery: let's zoom out an

nintendo, pokemon go continuing on. days weending saw yesterday through as much as thiswriting a .3% in tokyo point. a rising fourth day and the up with pokemon go reported again tomorrow. talking about this, the nintendo affect her go because mcdonald's in japan started offering those pokemon toys in those happy meals, so that is certainly lifting sentiment for the stocks once again. mcdonald's japan close to 8% up in tokyo. back to the markets. brexit has definitely chill the imf forecast. the next forecast says the brexit crisis may offer good news as much you performances are met. we have a chief economist joining us now. great to have you in hong kong studio. i am curious why you say brexit to be a good thing. >> first of all, the lesson is clear. in 1992, we saw a dramatic drop in sterling and never sensed in 1992 drop, employment went up, gdp went up and everything was imprisoned. what i am really saying is that is is not that there are negative fallout in consequences from brexit, but the fact that we need to ch

nintendo just opening in japan. as we heard, some very disappointing news from nintendo.so badly crushed by the playstation and xbox that nintendo is forecasting a surprise, down more than 15% at the start of the japanese session. markets training here in the asia-pacific. let us see how the nikkei is doing. nintendo is not part of the nikkei 225, but we are seeing the nikkei 225 under pressure this morning ahead of the chinese fourth-quarter gdp. everybody is really waiting for these figures that are projected to be the slowest it 20 years. the cost is down. the asx 200 is down. china is one of its biggest trading partners. up next, we are going to look and sri lanka's plan to boost investment from abroad. ♪ >> a live, sunny look outside this monday morning. today, hong kong is going to be reporting december unemployment. we will see if it fell or rose from the previous month. we are an hour from the open of trading here. you are watching "first up." asian stocks fall at the open on expectations that growth will continue to slow in china. the biggest tumble in years. nin

nintendo loves to surprise people.n we approach an event like e3, we show content from the next six or nine months. no more. we always have more surprises. there is always more in store. so why the analysts reacted the way they did, who knows, but we know from a company perspectiv there's a lot more up our sleeves and a lot more we have to shoover the weeks and months ahead. emily: tell us the surprises. >> right here, right now. for us, we believe there's a lot alue for the consumer to te tabt content and a -- launch it, just like we did for fortnite. fortnite already has 2 million downloads, specifically on the nintendo switch. by driving excitement, we are able to drive the business forward. that is what is most important to us. emily: super smash brothers, fortnite, new pokemon game. which will move the needle the most? >> we have an opportunity to continue driving momentum. fortnite, mario party watching in october. pokemon launching in november before black friday, and super smash brothers ultimate in december, i

and losing a pioneer, looking at the legacy of the nintendo head.nd cyber security, leading at investment. i will be joined by the company's ceo. and a founder and ceo is here to unveil the newest company from innovation, and all of that is ahead. and first to our lead, a debate is simmering at reddit as pao announced her resignation after 200,000 people called for her to step down. she said she is stepping down because they asked to have greater user growth than she thought she could deliver, and the cofounder steve huffman, is taking the reins. he already says he plans to improve the company relationship with reddit users and to define their content policy. huffman says he is not going to stop some of her policies. what does this mean for the future of reddit? we are joined from seattle, a man credited with making the idea of an internet meme mainstream, and with me is a paypal cofounder as a special guest toes, also the chairman of yelp. so thank you very much. i am so curious what your take is. max: it is like a silicon valley soap opera playing

and though -- nintendo shares falling toy percent.er they released a statement saying the financial impact from hit game pokemon go will not be significant. they're trying to manage expectations ahead of their earningsrter release. 's operating margin of 212%. the company used networking care premium phones, helping it to beat apple and samsung last year. this is bloomberg. of let's get to the latest in the markets. for that, we go to juliet sally. juliet: we are seeing risk on in the region, particularly in japan with new zealand looking quite strong. there has been a switch out in stocks also in taiwan. that has taken a little bit of the shine off the overall index. japan has come back after the lunch break and given a few of its earlier gains. fromurse, the big fall nintendo weighing on the broader index, even though we have the yen weakening. in australia, there has been a pickup in retail sales. and new zealand's market is at a record high today. looking at south asia, a mixed bag. market goingasia up by a quarter of 1%. there ha

the launch of nintendo switch. the ongoing engagement of consumers in between big releases. what we call recurrent consumer spending. consumers are not only buying big video games now. they are staying engaged in the products they love. and we and our editors are able to monetize that engagement. emily: some of the biggest announcement at this year's e3 -- microsoft's new powerful console, the playstation 4, how are you positioning yourself for these announcement? strauss: well, these machines are backward compatible. so, they are effective for titles that are tailored for them, and they are also playable for titles that are already in the market. i think every time there is more technical room for our creative folks to express themselves, they are excited by that opportunity, and we pride ourselves on making the most qualitye and highest experiences in the business. so, having a sort of, more exciting and deeper canvas on which to paint is always good news for us. emily: big news from take two recently was the del

so i believe nintendo's -- china is not -- you know, for nintendo. look at results from bandai namco as well. what are some of your best bets when it comes to the gaming sector across asia? minami: yeah. so for december quarter earnings, we show -- we couldn't expect the software sales, especially in the states because of inflation. but for march quarter, so far, i don't see that we -- weaker-than-expected software sales so much. so today, capcom, reports, i don't have much concern about it for the result. and also japanese companies have a tendency that they guide -- their guidance so close at initial like may. but i think it's a great timing for the japanese game company names. because we can expect conservative guidance is kind of all the bad news is out. and i like bandai namco's diversified or entertainment portfolio. they have a toy business, game business and amusement business and if they can, you know, promote i.p. -- diversified portfolio. so bandai namco is one of my favorite stocks. haidi: great to have you with us. minami munakata. japan

nintendo loves to surprise people. when we approach e3, we show content from the next six or nine months. we'll is have more surprises. there is always more in store. reacted thenalysts way they did, who knows, but we know from a company perspective, there's a lot more up our sleeves and a lot more we have to show over the weeks and months ahead. for us, we believe there's a lot more value for the consumer to tell them abo content and a launch its we did for fortnight. fortnight -- fortnite. fortnight already has -- fortnite already has 2 million downloads. that is what is most important to us. >> super smash brothers, new pokemon game. which will move the needle the most? >> we have an opportunity to drive mome. the eon for splits into, mario party watching in october. pokemon launching in november before black friday, and super smash brothers ultimate in december, it is the pacing o news. the pacing of launches that will drive the business forward. >> let's talk about the online service coming in september. based ins

nintendo believes in fun. their grandkids, and are content focuses on a fun and enjoyable experience. for us, the technology is a small part of what we deliver. we deliver smiles and we deliver fun. mobile gaming continues to be a big growth driver for you. what are the lessons you learned from mario on the iphone? >> is interesting. super mario run on the iphone and android, we are selling this application and games that have never been able to enjoy nintendo content before. countries like india, china, korea. all of these markets are enjoying this application. mario is reaching new types of consumers. we also launched a game called fire emblem heroes. this is a game doing exceptionally well, continues to be in the top of the charts for android and ios. what we learned is how to bring our content to smart devices effectively, how to monetize it, and that bodes well for our future efforts including our next application, which will be in the animal crossing franchise. emily: apple ceo tim cook visited japan las

nintendo has its own new console in the works. nintendo of america president joins us from e3.d with the big unveiling of "legend of zelda." how big is this for nintendo? is a huge a deal for nintendo. this is a fantastically huge game. a game that is bigger than any that nintendo has created. we brought it here to e3. we have lines around our booth. people are waiting up to four hours to get your hands on this experience. it is so phenomenal, pushing the edges of our system. it is a game we have committed to launch along with the nx version sometime next year. we are very excited. the fan reaction has been fantastic. emily: a lot of fans were hoping that maybe you would unveil or at least release some details on the nintendo nx new console you have coming. what details can you share? reggie: what we said is that for this year e3 is all about zelda, this brand-new experience or you -- where you can go through the entire environment. anything you can see, you can get to and explore. that's what we brought here. nx is going to launch next year in march of 2017. we have plenty of

i think this was an attempt to deflate the hyper by nintendo.y have been an attempt to fromhe potential upside pokemon go in the back pocket to some pointiny day at later. and number of analysts have said today that the time was very curious. as of the company would normally make this announcement is part of the normal earnings which the company will report on wednesday. mark: now that the exuberance has somewhat deflated, here turning our attention to other matters within the nintendo empire. when with a launch in china, and also consoles and other mobile games. what will we do about these issues? jeremy: intend of has a lot of things potentially up its sleeve. we may hear more about that on wednesday. china is on the people are looking at very carefully. you to bill requires locate you geographically. china somewhat limits the services on smart phones. it may not be possible for the game to take off their the way it has in other geographies. mark: thank you for joining us today. telling us about the slight diminishment at the pokemon go craze.

i think the market is down on nintendo in part because while the nintendo switch continues to do exceptionallyl, they have already announced that stocks will be down and hinting that there will be challenges in the next fiscal. i think that is why investors reacted to that stock in terms of where they see it going in the next 12 to 18 months. in terms of other companies doing interesting things, you know, as i said with you on stage, there are a number of tightly held smaller companies doing interesting in the space that will come to light in the next couple of months. emily: any advice for nintendo leadership today? reggie: i'm still in very good terms with all my peers and my friends over at nintendo. whenever they call me for advice, which isn't too often, i've been away for three years now, i give them a lot of my opinion. look, the nintendo switch is on the verge of becoming the best-selling system of all time. that speaks a lot to all of the momentum they have and the wonderful content they are creating. emily: since we last talked, we saw netflix lose subscribers for the first time in a

nintendo is figuring that out.e software that is the pokÉmon go game, their hardware has not provided in many years. david: cory johnson, thank you. i admire tom's restraint behind you. johnson with bloomberg news we appreciate it. more "bloomberg markets," coming up. this is bloomberg. ♪ vonnie: staples has opened up a surprising new revenue stream, is one of the suppliers for the rio olympics. williams joins us now. what is stable supplying? -- staples supplying? evan: it's one of the two the livingor partners. anything you see in advertising that has the limbic rings on it, that is something that was made by staples. areoes beyond apparel, they doing hard goods, six foot surfboard's for employees. they are doing this whole incredible behind-the-scenes things for the big items they are putting together just for the civic cycle alone. david: this is a company best known for office supplies. of this manyistory million-dollar industry. evan: the business-to-business part of staples has been growing significantly and

was a bet for run nintendo.icant foray into the smartphone area after the success of pokÉmon go, but this was 100% nintendo and featured one of their best and most beloved characters, super mario. that itle nintendo took is charging $10 to unlock the entire game. this is a departure from the model where you let people play for free, then pay for little gadgets and trinkets along the way. unlock, people a $10 to the game, but the way nintendo a's it like a traditional console game. what seems to be happening is people don't want to pay this price. they are used to hang smaller increments on smart phones. once you issue is that unlock all the levels, all 24 levels of the game, it is relatively easy to get through them all in a matter of a few hours, so this game has not been the same kind of explosive hit that we saw with pokÉmon go over the summer. well, exactly, so, the point being here, why would this disappoint investors? to remember that nintendo had stayed out of the mobile game market for a very long time.

move for nintendo. david told you the reasons why. recommending they get out of the hardware business given the disappointing sales numbers for the wii. its suppliers also been impacted here. down 6%, theden biggest intraday move for that stock since august 2012. mitsumi electric, down almost 4%. these are japan-based companies. nintendo hits across the asia- pacific. you will want to keep a close watch on these tech shares. the nikkei 225 is down 6/10 of in part.e of nintendo, we will keep watching that stuff. coming up next, china's leaders have dodged a slowdown in their first year in office. we will take a closer look at the latest growth numbers when "on the move" returns. ♪ tallest skyscraper goes up in shanghai, forecast for the pace of economic growth are for the most part coming down, as authorities launch reforms and tight liquidity to reduce financial risks and a system feeling the weight of --reased that and regulation increased debt and regulation. some economists expect the growth rate to be lowered to 7.5% as central au

in addition, nintendo's pipeline for this holiday season -- nintendo's launching some of the mario games should also boost software sales. in the short run, i think the movie contribution is revitalizing the switch ecosystem. and game shipments have been increasing. in the long-term, the movie will attract more people coming into the nintendo ecosystem. >> how is nintendo faring in comparison to its rivals? what are its results telling us about the broader gaming industry? >> yeah, i think since nintendo's console rivals, playstation and xbox, have just started their cycle, meanwhile the nintendo switch is getting closer to the end of the cycle, so i think it is somewhat different. the impressive thing is that the nintendo switch ecosystem is still maintaining the high user engagement. we estimate that the number of users is still gradually increasing. so that's why switch is trying to achieve the longest lifecycle -- the longest lifetime among nintendo's platforms. since we see more of the gaming users coming in, because of the new xbox and also the playstation5, also the switch ecosyst

we spoke with nintendo of america president and ceo reggie fils from the event. ,reggie: nintendo lovesrprise people. what that means when we approach an event like e3, we show content that is one a lot over the next six to nine months, and no more. so we always had more surprises. there was always more in store. so, why the analysts reacted the way they did? who knows, but we know from a company-perspective, there is a lot more up our sleeves and a lot more we have to show over the weeks and months ahead. emily: tell us the surprises. reggie: right here, right now. emily: [laughter] reggie: for us we believe there is a lot more value for the consumer to tell them about content, and then launch it, just like we did for fortnite. and fortnite already has 2 million downloads, specifically on the nintendo switch. emily: wow. reggie: so for us, by surprising the fans and driving this type of excitement, we are able to drive the business forward. and that is what is most important to us. emily: so super smash brothers, fortnite, new pokemon games, which will move the needle the most for nint

nintendo hit that daily limit in tokyo on the pokemon go launch. nintendo added 4.4%.ina under pressure after a positive morning session. it's kicking things off and earnings season. wyn macau leading in hong kong on the broker upgrade. that's the state of play across asian markets as we head into lunchtime on tuesday. ♪ emily: this is "bloomberg west." japanese messaging app line raised 1.3 billion dollars after pricing their ipo at the top of the targeted range. at that price, the company is valued at $6.9 billion and will be the biggest tech ipo this year. what are investors looking for with line? are reporters with us, as well as contribute in editor david kirkpatrick in new york, and from tokyo our news editor. what are the top things investors you have been speaking to want to see when it comes to line? >> they want to see more than just what is happening this week. what happens after the ipo? we have seen them, you know, stickers. line's platform was really popular two years ago, and now a of other messaging services have caught up, and they need expand out of t

indeed for those who love their nintendo games. we have nintendo direct.are releasing the new games and updates streaming online from nintendo directly. the first since their president passed away in june. it was a big launch. there have been updates to the popular zelda game, a new female character. red, blue, and yellow pokÉmon's. let's look at the reaction on social media. ethan overly excited -- not overly excited. on twitter, some mixed reactions, but generally positive. people saying they hate nintendo now because they want everything now on nintendo direct. , whenr person tweeting the translator says -- who knows what is real anymore? ending relatedd to an incident shown here. this was taken by one of the six students involved here, an apple store in melbourne where students were asked to leave by staff and there was a big outcry , allegations of racism, and apple has apologized for this. one of the students took this video and posted it on his facebook page. it has been shared many more times on other platforms. -- apple u.s. , underlined did say t

emily: that was nintendo of america president.are watching, fake news on social media continues to be in the spotlight. in the most recent voice to weigh in, hillary clinton. take a look at what she had to say on capitol hill. epidemic of the fake news and propaganda that flooded social media over the past year, it is now clear that so-called fake news can have real-world consequences. bipartisan legislation is making its way through congress to boost the government's response to foreign propaganda, and silicon valley is starting to grapple with the challenge and threat of fake news. emily: coming up, we speak to the founder of the design firm behind some of the biggest tech products. why he thinks design should be at the heart of any business, next. and some sad news to work, former u.s. astronaut and senator john glenn has died. he had been hospitalized for more than a week. he was the third u.s. astronaut in space and the first to orbit the earth. he spent 24 years in the senate representing ohio. he returned to space in 1998 a

nintendo performing well.h of those categories, better by 1.5% now despite cutting its sales outlook for the switch console again, this time due to the persistent chip shortage. let's bring in our tech editor. >> both reported operating profits significantly above market expectations. both of them revised forecasts for fourth-year operating profit up. sony dropped after its earnings. it is down to the nuance. nintendo cut its forecast by only one million units. it also foreshadowed this in his earlier earnings report, so the market kind of had that in its mind. it has a strong software lineup both this year and a pokemon title helped it through the holiday period. the company has said it is part of the challenges. it is worth mentioning it launched the switch oled model in a covert. it sold -- model in october. it sold 4 million units -- million units of that. it is raising what i can charge going forward. shery: we are seeing a lot of activity in the sector. microsoft kicking off that talent acquisition campa

the japanese mobile gaming firm nintendo in 2015,d nintendo taking a 10% stake in this company.amat, sophie, they're getting more on nintendo, the company quarter profit.cour it was about the sales forecast large extent. reed stevenson is in tokyo, looks like a great quarter for nintendo, but the outlook, i guess, that's why shares are under pressure, but it has been a declining market as well. >> exactly. movingere a lot of moonin parts. the numbers were pretty good, keeping the forecast for sales intact. pretty much on the market, but what investors are focusing on this morning as the operating profit number, cutting that by a third. the view that was emerging as that basically switch, the new console that will come out in march, is not going to be enough to offset weakening demand for ,he three ds handheld device also an underwhelming performance of nintendo's new project, which is to get its games into mobile phones. came know, super mario run out, but not a lot of people came out and paid the $10 for the full version of the game. in fact, only 5% of people did, where as nin

nintendo post a worse than expected loss.isasterl mine expected to book a charge of more than $1 billion. welcome to "daybreak asia" coming live in hong kong and streaming on bloomberg.com. investors in asia reacting to investors inver the region. >> we are looking at the nikkei in particular abe's marker of stimulus money. we are seeing some downward pressure on the nikkei 225 down one third of 1%. korea looking a little bit better. it is the best in the region up 2/10 of 1%. australia still opening up pretty flat, i.t. markets with a 4/10 of 1% gain on the nikkei 225. we will keep an eye on that throughout the course of the day. the oil market still weakening down 1/10 of 1%. having a look at the yen because we did see the japanese yen of course having a very big fall on the surprise $265 billion announcement. it is higher today, of half of 1%, the u.s. dollar weakening. that 105 handle, says hasthe imf brought it closer to fair value and that is very much contrasted from what we are syrian -- hearing from boj officials. lo

a bit like nintendo yesterday.king. -- what are they to become, -- trying ? >> pc maker, the biggest in the world, they want to cement that. a division in japan and germany. and again, the plan is to double share in the next three years. and watch the space. it would help them toward that buy ibm server business. >> thank you. sports and news. the australian open. .traight sets win 6-2, 6-2. a third appearance. li na. victoria.o we have to head into a break. we have seen the most miners take a hit. one company more than doubled. and tell you who he is where he is from next. -- we will tell you who he is and where he is from an next. ♪ >> a look at stories making headlines. is already a big year for drink makers. brewer will try to regain south korean brewery. is closing with its steepest share price since august after a surprise a loss of $1.5 billion. another challenging year with andl callss -- costs trading revenues. most in seven years. they said they might miss their production targets. it is after mating it w

will nintendo have to take another look at it?his situation, nintendo's highly conservative forecasts play in its favor, analysts would expect something to 20 -- analysts expected something closer to 28 million for the year. in reality, nintendo might've been able to do more. the president did say that nintendo will not have enough components to satisfy demand for this year. so if you want a switch, they're still going to be an issue with supply, especially with the latest model. the company did -- the supply chain changed. paul: vlad saviv there. we are getting news out of qantas at the moment. we are waiting on some headlines for that at the moment. i will get back to you with more information on that. qantas, off by half of your percent in the early going here in australia -- a percent in the early going here in australia. shery: there are demand for seats. in short, travel demand and confidence levels remain high. he is providing trading updates to the market in december. he is also sort of breaking down how covert is likely t

nintendo is a funny company.ey should be reporting in their earnings, it is a talking about them at these analyst meetings later. when markets are already moving. it is a little funny. you have to keep a lookout for that. we will find out a lot more, especially on the smartphone side. betty: no wonder you want to be in that room. thank you so much. delusions added today. household spending numbers coming in worse than expected. more data coming up. through and get reaction. this is bloomberg. ♪ betty: this is daybreak asia, i am betty liu in new york. yvonne: i am yvonne man in hong kong. profits rose 11%. premium income expanded. at that income for china's second-biggest insurer was $3.4 billion or $.19 a share. earnings from the mims a jumped 34% in the period. banking -- bank increased. betty: united airlines settled out of court with the passenger dragged on -- off airplane. widespread condemnation of the air carrier. his lawyers say he suffered a concussion, broken nose, and lost two teeth. they are raising

what's going on with nintendo's stock? is still up since pokemon go was first released early in july. the issue here is that nintendo go wasaid that pokemon going to be a huge boost to earnings. all the stakes that it has in the company that developed pokemon go were out there for investors, but sentiment got ahead of things, and you can't really blame people, given the social phenomenon that pokemon go has the,. -- has become. been tendo doused some water on the fire by reminding people that there wasn't going to be a material impact from pokemon go, forecastsurrent already reflect some of what we have seen so far. nevertheless, given the almost doubling of nintendo's shares over the past week, it has given up their games by the worst drop in 26 years yesterday and a little bit more today,, and as we know, they will report tomorrow, and that will give us a sense of what else they might have in the pipeline that could help field more profits on top of the marginal benefits they will get from pokemon go. angie: it's interes

the big story want to get to is nintendo. we have seen a dramatic drop for nintendo shares. take a look. that dropped as much as 9%. this comes as nintendo has reported results yesterday. it planned to release its first smartphone game this year. it has delayed that release to march the shares falling after that. the president of the company has promised details of the mobile plan. it looks like the smartphone game release will be delayed. that raises questions about sony's execution, about the pipeline for these products given the fact mobile is so strategic. important for companies because that is where consumers are using these games, these applications. we want it on mobile devices. nintendo needs to deliver on that. shares coming off on that. as we look at leisure goods in japan, 15 stocks falling. nintendo leads that list with a 9% drop. we will continue to follow that among other consumer electronics companies in the region. rishaad: absolutely. we have a that, five-month share on samsung shares. the company is worth $8 billion more than yesterday. it did come out wit

now, nintendo has done that as well.om in. , bluerple line is netflix line sony, and the white line is nintendo. they have all crossed. nintendo has gone north of what is happening with netflix. maybe the story of last year which made so many investors so much money may need a new end and that could be nintendo. let us bring in stephen king to talk about innovation. we talked about stagnation and the economic story going forward from here using incredibly low rates. what are you we this reading --misreading? no one saw this coming. what could change this stagnation, this economic demographic problem we now face? >> we found one of those little pokemon rings in my garden the in my-- pokemon things garden the other day. slightly disturbing. the winner take all process in the global economy. people have become rich at this. in they are relatively few number. in the u.s., new technologies are driving out white-collar clerical workers who are going into occupations which are lower skilled, probably below their own level, and

nintendo, 90%. up a 5%nintendo makes part of that etf's. let me wrap things up with australia. today. whitehaven coal, which morgan is the new metal, so looking at higher commodity prices. toces have the potential coal'sdue to fortunes. the price target raised 41% to a $2.25 a pop. risingnew home prices and fewer cities in china last month. seeing a deliberate attempt to cool house prices? >> very definitely. a big pillar of the chinese recovery has been in housing markets. makers wanted to see more houses built and more homes sold. in may, the value of homes sold increased by 70%. curbs,ve stepped in with slowing down and cooling down. it is deliberate. angie: trying to get that out, but still tier three and four cities are having a tough time, and isn't that more reflective of the wider chinese economy? >> there is significant overhang there. that is a problem. that is acting as a drag on growth. it was working well in second and first tier cities, but outlying cities still a problem, and that's why having the balance right between curbing and stimulating those cities where t