innovation creates fintech, and fintech is more flexible in supporting innovation, as compared to conventional. perhaps in japan, the imminent threat is in the banking industry. their business model is now becoming quickly obsolete. they have a huge presence in the economy, and their relevance is losing, and they have to reshuffle and restructure. but this is quite a regulated industry. so it's forcing -- it would be a difficult time, hard time for banking industry and regulators how to adjust fintech. stephen: well we are talking about banking and the potential for a banking crisis, if you go to new york, you might hear a lot more talk about the risks in china's banking system, and what we don't know is off book or off-balance-sheet, and in the wealth management products from your perch, as a formal pboc official now with the imf, how would you see the risk to the chinese banking system right now? >> one of the main risks is the financial risk. certainly that is related to some of the risks within the financial sectors everywhere. this does include, for example, the battleship problems of the

that is what made london the fintech capital of the world. comparison. if you go to new york, it is full of americans. harris is full of french people. london is full of people from all over the world. that is what made this industry so robust and exciting. that is the recipe. you can't make the cake without all the ingredients! thanks very much. good luck with the summit. thank you. as you've been hearing, leaders of the g20 group of the world's top economies are gathering in hamburg today. concerns about free trade are high on the agenda. but for europe, equally pressing is the migration crisis. professor christian dustmann from university college london says its proving a tough issue to crack. what we are seeing at the moment is a continuation of what started in 2015, the emphasis has shifted a little bit to africa from the middle east. but we see that people are fleeing war, persecution and increasingly so poverty, and making their way over the mediterranean into europe. the borders of libya, which have been avoiding that during the gadda

coming up, electronics giant xiaomi gearing up plans in the competitive fintech sector.omberg. ♪ emily: adobe will stop its flash service at the end of 2020. flash is the separate plug-in tool bit improves video online. they've been criticized for cumbersome user experience and vulnerability to hacking. adobe made the change in collaboration with apple facebook and other companies, , and is encouraging developers that use the service to seek other options. despite increasing regulation of china's financial sector, chinese mobile phone makers xiaomi is pushing into online lender and other financial services. xiaomi's head of consumer lending told stephen engle that china's fintech pie is big enough. >> over the past few years, we noticed a lot of problems in the industry. this industry needs regulations in place to enforce the activities and behaviors and to make the industry develop in a good way. reporter: is it important to in a fate -- innovate before those innovations stifle? >> it is difficult. innovation sometimes needs more space to innovate. at the same time, if

caroline: this week is fintech week in london.ive and well as a new funding round was announced today for resolute. it has $66 million to fund international expansion and a move to crypto currency. there is one man who knows what it is like to scale a london-based fin tech company successfully. samir desai, ceo of funding circle, the number one online there is one man wholender to sd businesses, and one of the u.k.'s so-called unicorns. samir is joining us live from san francisco. you are asia man. i want to start with -- you are a jetset man. i want to start with the fact you have scaled. you have headquarters in berlin and san francisco. how is the u.s. business going? samir: it's going really well. if you look at our business, we started in the u.k. in 2010 and we launched in the u.s. in 2013. we've been really pleased with the progress. around 30% of our business globally now is actually from overseas markets, not from the u.k., and those are growing at a much faster rate than the u.k. we have been really pleased with the prog

eileen: we are very bullish on fintech. the company here in london called cardless. it is not too dissimilar to strike. all of these companies have a lot of growth potential. they are the companies that power all of these transactions. the threat to them comes not from banks or existing institution, but from alibaba, and the fact that facebook and apple have their own payments, so you are seeing it come from the tech sector, but that is why i see an opportunity for new companies to merge in the payment space. caroline: two essentially be bought by those? will we see the likes of upebook and amazon eyeing the companies? eileen: i think it is less likely they will buy payment platforms, more likely they will buy regulated activities from some of these companies that have achieved that. that has been difficult for big companies to do. i do think buying up internet platforms makes a lot of sense for companies that might not already have that. may be an ip or platform or delivery service that does not have its own and wants to r

fintech as transformational. there is a lot of hype into specific things, but there are number of things we can transform the efficiency of the capital raising process. i was in kenya last year and saw the transformational change that came across with their mobile payment system. kenya now has a higher rate of financial inclusion of the united states, because we are still talking about the bank and unbanked. kenya, they were not bound by that. they said, let's get people involved and then we will start talking about offering financial services. they can buy sovereign debt and $30 increments. a higher rate of return than putting their money into bank. we are seeing a number of instances of that moving forward that are transformational for investors and consumers, and we need to make sure we are not behind the curve. willof the things i continue to focus on is to make sure our regulatory framework is not -- on that innovation. part of our mandate is capital formation. we protecting investors, but we have to have to

rivals inlows larger grabbing a piece of the fintech pie. that is next.ics maker xiaomi shrugging off rising regulation of the financial sector and the head start alibaba and tencent have come pushing into online lending. the head of consumer lending says the fintech pie is large enough for larger players. >> over the past few years, we notice a lot of problems in this industry. this industry needs regulation in place to enforce the activities and behaviors and to make the industry developed in a good way. it important to innovate before this regulations stifle the innovation? difficult because it leaves more space to innovate. at the same time, if a lot of players in the market not self-contained, self regulated, regulations and rules need to be in place to make sure everything is fine. >> what is the biggest risk to you? >> first is risk management. many people, the debt to income ratio is so high that some of them may have trouble to pay back. the other side is the financing side. over the past few months, we have seen an increase that squeeze how prof

xiaomilate than never pushes into the fintech market. this is "daybreak asia"

xiaomi's head of consumer lending told stephen engle that china's fintech high is == pie is big enoughe past few years, we noticed a lot of problems in the industry. this industry needs regulations in place to enforce the activities and behaviors and to make the industry develop in a good way. reporter: is it important to innovate -- before the innovations stifle? >> it is difficult. innovation sometimes needs more space to innovate. , if enough time players in the market are not self-contained -- reporter: self regulated? >> regulated. the government and regulation force needs to be in place to make sure everything is fine. reporter: what is the biggest risk to you? >> first, it is risk management. many people have a high debt to income ratio. some of them have trouble to pay back. the other side is financial ties over the past few months. increase,en the cost and squeeze profits. your chairman has talked about the troubles that xiaomi has had of late, losing a little bit of market share and sales coming down. he said maybe the company grew a little too fast. but in financial services

maha: fintech is still very hot for us. we have money in real estate and insurance.end a lot of time in cloud. of we have a few gaming deals. it's very disciplined, our approach to taking index funds. emily: canaan is celebrating 30 years as a vc. you have three female general partners. i'm curious how that changes the environment inside the firm. maha: it has been such an incredible, i am incredibly fortunate to be at the table. the conversations we feel are a lot more inclusive. we feel we are reflective of what the true entrepreneurial pool looks like. if a woman or immigrant comes in the door, they are surrounded by people with similar experiences. they are much more comfortable. emily: i know you've been following the sexual harassment story. there is an investigation at uber. are you surprised by this? maha: i'm not surprised. i'm surprised at the horrific nature of it, but i'm not surprised it's happening. if there is a positive spin on this, the sexual harassment has happened. i'm sure there are more cards to fall. it has woken people up to the need of divers

xiaomilate than never pushes into the fintech market.oming "daybreak asia" to you live from bloomberg headquarters. happy monday to you. york, a. sunday in new beautiful evening outside. there is a live shot on lexington avenue. a big week for u.s. markets. on pretty much all indices, s&p 500 flat. week, noeets this press conference, but looking for clues on the balance sheet unwind and inflation and where , all leadinghere to the u.s. gdp report on friday, forecast at 2.6%. but techsdaq, flat, earnings this week, google, facebook, samsung as well in asia. plenty of headlines, the outlook of the health care bill, donald trump jr. and paul manafort testified before a senate judiciary committee. advances,ack to back the longest winning streak in four years comes some consolidation on the index, down .2% at the moment, the kiwi unchanged. australia, equities futures headed lower. the rba deputy governor played down that neutral rate talk from the rba. meeting in st. petersburg key for the oil price $45.74, brent of losing steam after hittin

be over. , there is also a lot of speculation that there will be further regulation in areas like fintecho growth. retail sales was a beat. because as the economy transitions to a consumer led economy, people spending is critical, but property curbs from that takes money out of most people's pockets. what are you seeing on the ground there in shanghai? off aperty has come little bit in the first tier and second-tier cities. that's not necessarily a bad thing. you have seen sales come down, but that has not affected many property developers because they have those contracts in the early part of the year and last year, so they are sitting on some cash and you are seeing consolidation there. the retail front is better than andcted, never below 10%, services as well, a strong part of the economy since 2015. the services sector has provided more than half of the gdp growth , so there is a transition going on in the chinese economy. david: absolutely. good reporting there. that's the rooftop of the ritz-carlton. up, more analysis on china with mcquarrie investment management. angie: we will do