baidu has been going through a transition, trying to diversify.aming,, but other businesses. driverless cars, internet services, as they tried to get away from the main search business. they also had a setback when it comes to internet advertising revenue. in may, the government in china opened up a fairly controversial investigation after the university student who died. his family said we were seeking treatment based on the ads they found on baidu. dent, which means they couldn't accept advertising from certain drugmakers. throughue not coming from these pharmaceutical brands was a big part of it, so certainly not being able to spin off, getting that injection, they will have to work out some other way of making -- angie: a a lot of layers to this. haidi lun. checking in on some other stories. a man armed with a knife has killed at least 15 people and injured 45 others in a home for disabled people i near tokyo. a 26-year-old man is under arrest after turning himself in. the motive has not been established, but police told nhk he used to work at

we had a student die from cancer which looked up services on baidu that turned out dodgy.vestigations. impose: government regulations here, but also self-imposed things going on, to0. >> in some ways they have fallen on their sword. behind the scenes discussion takes place between the government and the company, and so the company recognizes which way the wind is blowing and imposes restrictions on itself. rishaad: what are people saying about this company. what are they saying about it getting out of this slump? before this set of results, a lot of people were bullish on baidu, thinking that while there would be short-term impact, it would bounce back strongly. the company itself has come out, the cfo saying the next two-three quarters will see a continuing impact from these negative changes to the way that they do business in search. how long it last after that has yet to be seen. you to: right, let's get another company making headlines with a stock price on the move. a continued decline in betting activity in that gambling hub of fortescue macau. -- hub of macau. perha

meanwhile china's biggest internet search form baidu reported worst fall in profit,s. shares are on the nasdaq fell 1% in after hours. >> google parent company alphabet beat the street in the second quarter after a boost from mobile and video ad revenues. youtube continued to shine grabbing more advertising dollars. shares briefly traded above record high after hours before

actuallyhow did baidu come up with this?gestaidu is china's search engine since google got booted out. what they have done is, they have tracked down what everybody puts into baidu mavs. when you want to go somewhere in china and you have a smart phone, you do what everyone does, you type in "apple store beijing congo and you use that to find your way along. it tracked all searches going shopping areas and 2000 industrial parks in the country. they use that to build the indicators. rishaad: what is the upside? david: a lot of money. this is trying to become big data house. they want to be seen as having the leading edge when it comes to insight. second, they will sell this. if you are a hedge fund manager or an apple shareholder, from next month on, you can pay by do, presumably -- why do -- baidu to build inside yourself. rishaad: thank you. ksc becoming the target of anger over territorial tensions in the south china sea. rishaad: we are back. four major u.s. airlines are on provisional approval to tokyo. delta, american,

in china they refer to bat, or baidu, alibaba, and tencent.encent are about four times bigger. baidu has to make up some ground here and they are facing challenges on the advertising front, particularly because of these new regulations that restrict what kind of ads they can run. emily: bloomberg's peter elstrom. that does it for this edition of "best of bloomberg west." we will bring you the latest in tech throughout the week. this is bloomberg. ♪ ♪ erik: coming up on "bloomberg best," the business stories that shaped business around the world. yahoo! sale finally goes forward while european banks reverse a downward trend. >> the sentiment is really bad, valuation is really bad. and the results are really bad. >> we have been very consistent in saying we do not need to risk capital. erik: the fed continues running in place while japan takes more steps down the stimulus path. >> they had to do something. they did the bare minimum. erik: from tech to pharma to autos to oil, earning reports come fast and furious. >>

in china they refer to bat, or baidu, alibaba, and tencent.p is $50 billion, a little more than that. alibaba and tencent are about four times bigger. baidu has to make up some ground here, and they are facing challenges on the advertising front, particularly because of these new regulations that restrict exactly what kind of ads they can run. emily: bloomberg's peter elstrom from tokyo. that does it for this edition of the "best of bloomberg west." we will bring you all the latest in tech throughout the week. tune in on tuesday when we hear from roger. this is bloomberg. ♪ ♪ >> it is 8:00 a.m. in tokyo. first major markets open after investors disappointed by japan's stimulus. this is "daybreak asia". ♪ dealing with debt, preparing to sell assets to lift its credit rating above junk. >> chinese investors buying caesars online gaming unit in a $4 billion gamble on mobile. >>

the google of china, baidu, will be reporting any minute.lysts will be looking for sales and profit to show a recovery. this is bloomberg. [hip hop beat] ♪olympics 2016, let me get you on my level. ♪ so you never miss a moment, ♪ ♪miss a minute, miss a medal. ♪ ♪ why settle when you can have it all? ♪ ♪soccer to wrestling. track and field to basketball. ♪ fencing to cycling. diving to balance beam. ♪ ♪all you have to sa♪ ♪ is, "show me," and boom it's on the screen♪ ♪ from the bottom of the mat, ♪ ♪ to the couch where you at? ♪ ♪ show me the latest medal count♪ ♪xfinity's where it's at. ♪ welcome to it all. comcast nbcuniversal is proud to bring you coverage of the rio olympic games. to first wordt news. hillary clinton is ready to make history tonight, the fourth and final night of the 20 16th of a craddick national convention in philadelphia. the former secretary of state will become the first woman in u.s. history to accept the presidential nomination of a major political party. she will be introduced by her daughter chelsea before closin

in china they refer to bat, or baidu, alibaba, and tencent.encent are about four times bigger. the market cap is $50 billion, a little more than that. baidu has to make up some ground here, and they are facing challenges on the advertising front, particularly because of these new regulations that restrict exactly what kind of ads they can run. emily: bloomberg's peter elstrom. from tokyo. that does it for this edition of the "best of bloomberg west." we will bring you all the latest in tech throughout the week. tune in on tuesday when we hear from roger next to me. this is bloomberg. ♪ ♪ narrator: the challenges facing our world are growing all the time. how do we build stronger economies with equal opportunities for all? how do we build a sustainable world for generations to come? how do we protect our cities and harness the power of technology for our common benefit? humanity has always been good at forward thinking. in this series, using the latest bloomberg research and analysis, we will make sense of the problems of tomorrow,

orchina they refer to bat, baidu, alibaba, and tensen. tensen are about four times bigger.make up some ground here and they are facing challenges, particularly because of these new regulations. emily: bloomberg's peter l stremme from tokyo -- peter elstromm. oft does it for this edition "best of bloomberg west." this is bloomberg. >> welcome to "bloomberg businessweek." thehis week's issue, why dnc did not listen to security consultants. >> will oculus swallow facebook? >> and more. >> all ahead on "bloomberg businessweek." >> i'm here with alan pollack, the editor of bloomberg businessweek. let's talk about the story in the global e-commerce session. germany has opened its doors allowing refugees into the country. you look at the economic implications. >>e

he looked up the providers on baidu and unfortunately, the advertisers he went with were unable to curecancer. at least one health care regulatory investigation could hit on its earnings. angie: what impact does this have on the bottom line? >> they reckon it will cut profit in fiscal 2017 by 10% their forecast. it is going to be below what analysts are currently expecting. angie: definitely a lot of pressure on the companies. thank you, david. coming up next, territorial tensions may ramp up later today over the south china sea. we are going to be live in beijing. next, this is bloomberg. ♪ get ready for the rio olympic games by switching to xfinity x1. show me gymnastics. x1 lets you search by sport, watch nbc's highlights and catch every live event on your tv with nbc sports live extra. i'm getting ready. are you? x1 will change the way you experience nbcuniversal's coverage of the rio olympic games. call or go online today to switch to x1. angie: top stories trending this hour -- asian stocks are searching for a second day after the s&p 500 posted a record high. investors like the p

when people talked about baidu, they said it was the google of china. cory: that is what i do.hter] david: the last five years, largely because of the mobile market, innovation is starting to truly be cutting edge in china as well. and so, there has been a shift. we would look at what succeeded around the world, whether it is japan or the u.s., and maybe there is a copycat company in china that does well. i think the last five years we were fundamentally looking for innovative companies just the way silicon valley firms find a great deal in silicon valley. cory: you talked about some of these big gains early. do you look for the earliest stage of a company to invest in? is it different than taking early-stage company in silicon valley? hans: it is a different similarity. we all look for companies that are growing and have huge potential. on the team with a lot of experience, some of them are serial entrepreneurs. you see that happening in china more and more, as is the case in the valley. you see a team that can build a product to solve a real world problem. that is very big. m

right now, baidu is falling behind alibaba. the market cap is now $50 billion.ke up some ground here and they are facing challenges on the advertising particularly because of these new regulations that restrict what kind of ads they can run. editor in asia tech tokyo, thanks so much for joining us. in tech, more than 70 tech startups and vc firms say they will give u.s. employees time off to vote in the presidential election. among the companies, spotify and survey monkey. the initiative is being driven by tech executives who are outspoken critics of donald trump. that does it for this edition of "bloomberg west." this is bloomberg. ♪ they didn't like showoffs. they didn't admire braggarts or bullies. they didn't respect mean-spiritedness or folks who were always looking for shortcuts in life. valued moret they traits like honesty and hard work. humility,courtesy, responsibility, helping each other out. that is what they believed in.

china's regular has ordered an investigation into baidu.ouncing the inquiry after reports of other sites advertising [inaudible] the ads were replaced without its permission. telecom among those selling despite being rated junk by one -- at least one reading company. they bought $11 billion worth of corporate bonds. they are trying to revive growth in europe. and considering a buyout of the biggest subway operator. weighing out and asered to buy the rest shares remain in a trading home. they faced criticism that a buyout would make managing the operator easier and provide funds to recruit more staff and improve maintenance. detour of a bit of a what is going on. from singapore. what is the overall story right now, we have all these event risks up to this year including the vote in britain to leave the european union. and there are a variety of others, the fed gaining center stage. what for you is front and center? me and the house view is pricing aggressively and that is mildly negative for the dollar against major currencies. negative orla

there was criticism over drug makers or pseudo-drugmakers soowed to advertise on baidu that took a completek of their advertising revenue and they are also looking for cash, not spending so much on the streaming service but everything from driverless cars, artificial intelligence, internet services. they have been trying to diversify. without this, they are without the $2.3 billion cash injection. rishaad: thank you. taking a look at some of the other stories we are following. shares,e are talking down over 3%, pulling back up. it was not the best quarter for chipmakers, prices falling, a sluggish demand in the second quarter. having a look at the numbers which they reported. of these three metrics, we are talking about top line all the way to the bottom, net income standing out as the biggest variation from the mean. the company does expect for that to pick up in somewhat surge this quarter with new phones and smart phones coming to the market. a little bit more upbeat, i guess. take note that all of these recommendations were made before this current set of assaults, so watch for changes

we did see baidu shares really tank, down 25% over the last couple of years, but we had that precipitousug decline is going to take a chunk out of that. yvonne: thank you so much. just ahead, leaders discuss territorial tensions in the china sea. can i come up with a consensus? we have more details coming up. this is bloomberg. ♪ nationssoutheast asian avoided taking a tough stance on the china dispute. it was the first meeting since china claims that the south china sea were rejected by a international tribunal. let's take a look at our correspondent who is been taking a look at the story for us. >> they said they were pleased with relations with china but they did not, with a top message that the philippines were hoping for. this is the association of fiveeast asian members and members have competing claims over the south china sea area what they came up with their and their final statement, including no reference to the reference to china itself. they said that they are seriously are concerned with the recent developments expressed by some ministers on the land refurbish and an escala

baidu is being put on post. -- on pause. 6.7% growth in the second quarter, on the other hand.ch is a healthy number. angie: tom mackenzie, thank you. coming up, the race to the white house. we are going to discuss the political risk scenarios with michael every. this is bloomberg. ♪ angie: a quick check of the latest business headlines. deutsche version has accepted the company's takeover bid for london stock exchange group, with investors saying yes to $13.5 billion deal. investors owning over 60% of shares back, taking it beyond the threshold. the deal still needs approval from the european commission and regulators. the u.s. judge has given the initial go-ahead for vw's plan to get nearly half a million admissions cheating diesel cars off the road. settlement include buybacks, and will cost the company about $15 billion. if given approval come the plan would clear the obstacles to vw's recovery from the scandal. elon musk is capable of producing half a million cars by 2018, despite the production targets so far this year. speaking at the site of the company's factory, he sa

baidu. practices led to stricter regulations hurting business. it's off 1%. >>> few other stocks to watch this morning. samsung rose 2% beating forecast. the results were the company's best in two years. consumers snapped up galaxy smartphones. c cbs. on a conference call, the media company will benefit from this fall from the u.s. presidential election. listen. >> we are still in the early stages of what we are very confident will be a record presidential election year. second quarter political sales came with in higher than expected. thanks in part to primary spending in california and right now we're seeing big activity in many of our major market o-0. as always spending will peak in the fourth quarter. >> ab inbev fell sharply. toward it's more than $100 billion merger. still working to close that deal by the end of the year. >>> jeff immelt put his money where his mouth it. 1.6 million in shares of his company this week. bought 2 million back in may. >>> still to come, european banks in focus today. we'll bring you the names to watch. plus h

meanwhile china's biggest internet search form baidu reported worst fall in profit,s. shares are on the nasdaq fell 1% in after hours. >> google parent company alphabet beat the street in the second quarter after a boost from mobile and video ad revenues. youtube continued to shine grabbing more advertising dollars. shares briefly traded above record high after hours before reporting over 4% higher. it's another big beat for amazon too as earnings topped estimates for the second quarter coming in at a record 857 million dollars. in the companies fifth straight quarter of profit it was once again boosted by revenue from aws cloud business. amazon also said it would double the spending on video content in the second half of 2016. sharing rose sharply in after hours trade. tech london advocate joins us now. relaying some of the concerns we saw from alphabet about the advertising business seeing incredibly strong growth. >> i think they posted quite impressive results. especially after last quarter they had an earnings miss. you're seeing the growth of mobile continue. you

liz: leaders, percentages, priceline, google, tesla, amazon, baidu, the chinese internet name, thesers right now on the nasdaq as far as percentages are concerned. these are all businesses that have millions of customers. >> right. amazon, you could say one thing about that, google was the other one? liz: the day before amazon prime day which is their big self-credited holiday. >> how about tesla. liz: survived the dot-com implosion. >> how about tesla? liz: tesla moving higher. >> moving higher today. liz: elon musk coming out with his manifesto. >> that is problematic. that is something you have to really worry about. this is company by company thing. liz: but they're churning out cars and churning out more cars. >> you want to know something else? it is not across the board. this is not 2000 for people listening to donald. we may get a correction. you know, 5000 -- last time we hit 5000 went down again. now it is back up. this is not where every company has got some real problems. one other point on scott brown. you were talking about the vp? liz: yes. >> i hear he is a dark horse

by baidu, tencent, and jd.com, shares losing 50% and 12 months. ,t is also burning through cash revenue from 63% last year. diplomatic rapprochement between israel and turkey has allowed aid for gaza. a ship caring food, clothing, and toys will be distributed this week. the split between israel and turkey was triggered right an israeli commando raid on a turkish aid ship. dayal news 24 hours a powered by over 2600 journalists and analysts in 120 countries around the world. this is bloomberg news. yvonne: thank you. i look at the prospects for the markets -- a look at the prospects for of the global markets. great to have you. brexit has not faded. we have a raised losses since last friday, but we continue to see bond and stocks painting a different picture. >> this is puzzling with the strong rebound of the equity market and bond markets with yields depressed. is a stronge conviction and a strong conviction in the market that further easing measures taken by central banks, the bank of .ngland it also raises a strong expectation of an easing stance from the ecb and the fed, so it is prob

experimenting with welfare programs and in that same sense of exploration -- experimentation today baidu understand it is a risk for poor families, but the federal government needs to take no role to hold states accountable with rigorous evaluation to make them accountable because of there is no results then it goes away. what last points the final statement about the federal government fiscal house to get in order to shrink government. while that is true it doesn't have to mean cutting safety net programs or no new spending in my opinion it should be -- mean better targeting to spend money on things that will achieve the goals we want to achieve. we have heard that those are working and family and experimentation in that if you can have less spending nab paid leave for these low income families that will support work and family al looked at the report i see a lot of possibilities in the apartment planned. we all won't agree are everything that is in the plan but i do believe there is a lot of agreement on all sides of experimentation and i hope that people will take up plan a little mor

back with a vengeance among the big leaders here on the nasdaq despite some negative headlines on baidu and some of its advertising. nvidia one of the big movers today, nvidia, amazon, comcast among the stocks that have helped lead this movement up so far this year on the nasdaq. big stocks hitting all-time highs. back to you guys. >> thank you, bertha coombs. kimberly clark shutting down operations in venezuela due to a slumping economy which has created significant consumer inflation as well as good shortages in the country. shares higher by just 2%. mizuho with a buy rating, analyst citing valuation and dominant market share is the reason. comcast universal pictures scoring a number one hit at the bok office this weekend with the release of "the secret life of pets." shares of comcast higher by 0.4%, comcast is the parent of nbc universal as well as cnbc. >>> okay. so in just about 48 hours from now the uk will have a new prime minister. wilfred frost taking a look at who exactly this person is. wilfred, we heard from theresa may. >> she's confirming she will be. the current uk prime