it opened up individual travel to hong kong and allowed the custom-free export of hong kong goods. the year after the massive protest, hong kong's real gdp rate grew to 8.7%. 15 years after hong kong's return to china, the chi stabilized, and unemployment rates recovered to 3%. in line with beijing policy, the hong kong government had been preparing to implement patriotic education into primary and secondary school. teenagers who grew in in post colonial hong kong raised a protest movement. they forced the hong kong government to withdraw from the mandatory patriotic joshua wong, then just 15 years old, formed an organization for secondary school students. travel from mainland china continued to increase yearly. at its peak, over 47 million chinese visitors flooded into hong kong, six times its population. this naturally caused many problems. one of the most serious issues is that many mainlanders gave birth in hong kong in order to gain permanent residency. smugglers hoarded powdered milk and diapers. chinese real estate investment drove land prices up. economic prosperity landed

it is an interesting dilemma that hong kong is facing. funds association, asian corporate governance association, also david webb in hong kong, all have come out against this plan by charles lee and company at the hong kong exchange, saying it will weaken corporate governance and encourage exchanges to lower their standards. berles lee said we might able to rethink this plan if there is not broad support. haidi: just to play devil's advocate, that dual class a share structure is not necessarily a bad thing for investors. >> right. thing proven to be a good for founders of companies like a maintain control of companies even though they are publicly listed. new study says investors are benefiting from these dual class share structures if the founding families are in control. a new study at temple university texas tech and the university of singapore found 89% of talks with will clash shares were controlled by founding families. on average, they outperformed. that being said, dual class firms not family controlled are more likely to basically

in hong kong.e are live for bloomberg's asian headquarters. lower political tensions sparked an appetite risk. the hong kong markets may not be among all the markets working today. businesses closing. >> welcome to daybreak asia. i'm betty liu. it is just after 7:00 p.m.. washington steps up sanctions on north korea despite welcoming the recent restraint. appealing to his core support in arizona. >> bracing for a big one. raised,ber eight being it was not too bad. we were laughing about it. but we are seeing things escalate. we are seeing dark clouds, wind and rain that could strengthen persistently. here is why. this storm heading straight to the city. on thed to make landfall western part of hong kong. there is a chance this could be bigger than a ta. already as you mentioned, reaction to this storm. we hope you stay safe. the stock exchange canceling premarket trade. limited transport services. ordered toe been shut down. the last time the markets were closed due to a storm was october 2016. thi

juliana liu is in hong kong.t is correct. hong kong is still reeling from the news that the three leaders of the umbrella movement have beenjailed. this is after being tried, convicted, and sentenced last year. they have served out their sentences. but the government of hong kong decided the sentences were too lenient. they took their appeal too lenient. they took their appeal to the high court where a panel of threejudges agreed with to the high court where a panel of three judges agreed with them. the hong kong government has been saying all along this is not politically motivated, but certainly human rights groups say it is meant to be a message of deterrence to other young protesters. let me share with young protesters. let me share with you how the story is being reported in newspapers. this is the south china morning post. a quick look at the front page. let me review how it is being covered. here is a large splash photo of justin is being covered. here is a large splash photo ofjustin wong, one of the thre

this is bloomberg. ♪ ♪ not: 29 in hong kong -- 9:29 in hong kong.waiting for the opening of markets. markets joining in on the overall selloff being extended to the asian session. a downside when it comes to the u.s. wall street session. the second worst decline from the s&p this year. concerns about policy coming from the trump administration and the tragic terrorist attack in spain. yen, a second game for the yen. safe haven assets holding onto gains. the latest property numbers, taking a look if we are seeing a disdain soft landing -- a sustained soft landing. they want a goldilocks situation. take a look at this chart, gives you a snapshot of the slowdown we have been seeing. they had seen extraordinary of a year.the period 60% year on year. downis come back -- come rather severely after we see measures.g chart some from this of these smaller cities, they slowdowng less severe when it comes to property prices. marketch and uneven when you talk about chinese property prices. into that more. >> in the last hour we get a of data and we have the fir

in hong kong. i am shery ahn.njured aftermore a van hit pedestrians in one of barcelona's most popular streets. two have been arrested in los angeles -- las ramblas. spain has a history of terrorism. passengers were killed by bombers in madrid in 2004. there are rumors gary cohn would be resigning as president trump's top advisor and not to mention the political scandal going on. that is leading the markets. they took a big hit overnight. betty: they absolutely did, as you point out. it was interesting to see the terror attack rattled investors. but it was gary cohn and his possible departure that hit the markets. i want to pull up a chart g #btv 360. it really tells the story. we saw the second worst day in terms of the drop of the s&p, down 1.5% today. the second time it has dropped more than 1% since last thursday. we thought north korea would continue to dominate the headlines. little did we know charlottesville would become the big news of the week. and now we end with a terrorist attack. vix indexe fix -- th

we have a regression alice's looking at hong kong's daily return -- an analysis looking at hong kong's basically for every percentage increase in the s&p 500, you would see china going up 50 percentage points. rishaad: thank you. coming up, how will the philippines address the slumping pace? we asked the country's budget secretary. ♪ ♪ announcer: from our studios in new york city, this is "charlie rose." charlie: the news in washington this week is dominated by missiles, mcconnell, and manafort. despite the crisis over north korea, president trump found time to call out mitch mcconnell over the failure to pass health care. the president's lawyer reportedly accused robert mueller of "gross abuse of the judicial process" after the f.b.i. searched the home of the former campaign chairman. joining me for perspective is the host of "face the nation," john dickerson of cbs news. welcome to thgr

our tech reporter in hong kong.portswear company touched an all-time high on tuesday after posting record first half earnings. correspondent had exclusive access to the chairman to find out how he plans to take on global rivals. they are on a roll thinks to endorsements like with klay golden state the warriors. thompson's signature shoes have as much as tripled since they were released. it is part of a strategy to nike. -- two challenge >> our target is to grow retail sales from 30 billion now to 100 billion by 2025. which means if revenue grows 50% over the next eight years, we can achieve that gold. >> a decade after listing in hong kong, the shares are at or near a record high. they sort of more than fivefold. it has been a steady climb compared to the precipitous drop losts main competitor, who two thirds of its -- two thirds over the same. . not repeatey will past mistakes of its rivals up to the beijing winter games. >> the u.s. and chinese markets have sales of about 300 million sports shoes. but there is so

why are those names weeding here in hong kong? -- leading here in hong kong? are going to be talking to the chief economist. this is bloomberg. ♪ ♪ david: this is "bloomberg markets: asia pickup let's get you caught up on the next business flash headlines. let's start off with mitsubishi ufg financial group. the bank is looking to hire in saudi arabia. that is over the next five years. the bank is set to become the first japanese hundred to start full operations after obtaining approval from the kingdom central bank. the bank of japan looking to open a japan in riyadh. one of the world's largest food traders second-quarter profit jumped. revenue rising 31% to a -- due to a strong performance in all of its units. .ales were good upm trading in singapore, .1%. a company is accused of illegally promoting gambling. was last of the crown employees to be freed after serving a jail sentence. inenue remains on the rise macau. growth, look at increasing for it 12 straight month. in an exclusive interview, the ceo says it is all about the mass market now. on mass.d is m

shanghai and hong kong opening up. hong kong playing catch-up after being shut from yesterday's trade. let's get it over to sophie. sophie: the hang seng opening in , i.t.een, higher by .8% gaining over 2%, energy gaining 1.7%, so playing catch-up, and looking at gains this morning. a second day higher. to point out that although this index is headed for its eighth monthly gain, skeptics coming out of the woodwork, the cost of hedging the index is above the annual average. of bearish options has jumped. some cloudss, forming when it comes to the hang seng's performance this year. stocks,you chinese little changed. red,ikkei 225 in the easing some of the days losses. i want to show you some movers we are watching in hong kong. sinopec gaining this morning, jumping the most since december 2016. wanda hotels falling after first-half results. we may have earnings the driver when it comes to the hang seng today, on the up for a second day. rishaad: thank you. right, let's get you up to speed when it comes to first word news

juliana liu is in hong kong.rella movement have been jailed, this after they had already been tried, convicted, and sentenced last year. they have served out their sentences. but the government of hong kong decided the sentences were too lenient. they took their appeal to the high court, where a panel of three judges agreed with them. now, the hong kong government has been saying all along this is not politically motivated, but certainly human rights groups say that it's meant to send out a message of deterrence to other young protesters. let me just share with you how the story is being reported in newspapers here. this is the south china morning post. i think you had a quick look at the front page earlier on, but let me review how it is being covered. here is a large splash photo ofjustin wong, one of the three activists. he is being taken from a police car to start his life in prison for the next three years. he was very defiant until the very end. he was still punching the air and asking hong kong to not give

check out the flows into hong kong.rom the mainland, seven straight months we have seen stocks gaining. other shares reaching the 11,000 mainly coming from themark somen two years. hong kong continues to be a refuge for chinese investors. that is amid the crackdown we see in beijing. betty: if i can connect the dot to one of our big stories today, which is apple, it is interesting. hong kong stocks seem to be on fire. but it is not so much for apple. it was interesting to hear tim cook talk about how hong kong is one of the low spots for the company. they saw declining sales. you might see all that money flowing in from china, but that is not flowing out into purchases of iphones. plenty more still to come with asia's first major market open. sophie kamaruddin is watching the opens. >> it looks like earnings will be a key driver today. we're looking at a mixed open. we may see an effect from that tech giants outlook. sharp, japan display, will move. perhaps an upside when it comes to earnings. we also have honda beating

capital fundsure popping up in hong kong. a lot of the big private equity are based in hong kong.mpanies it is making the right pitch, having a global vision that does not limit the vision prospects to 7.5 million people. the government is doing a lot. i do think there will be more companies popping up soon. betty: who is your biggest competitor? why do hotels need to have a product like yours? terence: we are arguing that number one, travel is a very infrequent activity. it is convenient to have something. it is proven we are able to help hotel owners generate additional revenue by pushing messages to guests. because the spot is empty, we give you 30% off. message thean concierge/. seeugh this engagement we incremental spending from guests. if you look at review sites like trip advisor and online travel agents, we get positive feedback from guests. thank you so much. ceo in kwok, tink labs new york. yvonne: japan, industrial production month on month, missing estimates, falling 8/10 of 1% for the month of july. the estimate was for a 3/10 of 1% drop. this coming off of a more tha

the task in front of us in hong kong is to help hong kong meet its climate change objectives.nt has a climate action-2030 plan. it puts a lot of the energy owners in the sector on notice to contribute to that. we are well set up and we are confident to be making that investment and we have a very clear pathway. the challenge in hong kong is not a lack of capital or lack of investment. we have the clarity, we have to plan, we need to get on with it. betty: there is a plan and you are getting on with it. i am curious with this scheme of control that is set to take place in hong kong. are you going to make up with some of the hit you will tak eei n hong kong with further investment or expansion in asia for clp? that has always been our approach, to diversified outside diversifyng -- to our investment out of hong kong. we are focused on the clean energy sector in both of those markets. in mainland china, we are looking to close our investment in the nuclear power station, we are continuing to grow our renewables portfolio in china and also in india, we will be sure the commissioni

for more let's go over to hong kong and we are joined for more let's go over to hong kong and we arejoined to hong kong and we are joined by the bbc‘s juliana liu. what is the latest in the aftermath of typhoon hato? good morning, rico. what we understand from the official news agency is that the storm is centred around quang arshid province in western china at the moment, so lots of rain, lots of rain buffeting that region but it does seem to have weakened considerably since making landfall. businesses are shut, construction has stopped in that area but we aren't hearing of any fatalities so far in guangxi province. we have heard ten people have died, five in macau, juan imhoff, and four in china itself. through the day yesterday we certainly saw a lot of pictures of how people are responding to the storm, which is the most serious this region has seen in five years. i can't overestimate or over explain to you, rico, what it feels like to be in the middle of a storm like this. certainly five years ago i remember being lifted up from the streets by a strong gust of wind and really having t

rishaad: i'm rishaad salamat in hong kong.s been two weeks since anthony scaramucci was hired as communications director, and has now been fired. this is the latest in shakeups. joe subject has the latest from washington dc. white house communications director anthony scaramucci was ousted hours after retired marine corps general john kelly took over as the chief of staff. calley was given the job to on disarrayorder the white house. scaramucci's arrival in the white house wanted the departure of sean spicer as secretary and reince priebus as chief of staff. that followed the resignation of the -- former communications chief. it is a sign that trump is empowering kelly, at least for now. he was given a job as chief of staff to put order into what has been a chaotic organization in the west wing, and was promised full authority over the staff. the practical effect is he will be filtering who gets trumps year and when. some senior officials who are used to walking into the oval office may lose a direct line to the president they

five people died in macau, and one in hong kong.en following the typhoon for us. the typhoon battered hong kong, but now it is in china? that's right. the latest according to a news agency there is that the storm is centred in south—west china, bringing lots of wind and rain to that region. every day life has been disrupted, certainly in terms of transport and business. we understand about the storm on a whole has weakened since making la ndfall whole has weakened since making landfall in china. it counted hong kong, macau and the city in mainland china before sweeping west. this was the most powerful storm to hit his entire region in five years. there have been a number of fatalities, at least five people died as a result of the storm in macau and four ian guangdong prominence. there was a question as to whether there was a fatality in guangdong province. a man fell into the sea, however they said it was a suicide case and it was intentional and not directly related to the storm —— in. at least nine people have died and numbers may

several beaches are closed in hong kong as congealed palm oil continues to wash ashore.nd the american country music star glen campbell has died at the age of eighty—one. we look back at his life & career. it's 8am in singapore, 1am in london and 8:30 in the morning in pyongyang where north korea's official news agency said it was considering missile strikes near guam, where us strategic bombers are based. it follows news from us intelligence officials who say north korea has produced a nuclear warhead small enough to fit onto its ballistic missiles. earlier donald trump warned north korea that any further threats would be met, as he put it, with fire, fury and power. north korea best not make any more threats to the united states. they will be met with fire and fury like the world has never seen. he has been very threatening beyond a normal state, and as i said they will be met with the fire and fury and, frankly, power, the likes of which this world has never seen before. our correspondent nick bryant has the analysis from washington. american presidents have often sen

angie: is in hong kong part of that equation? >> hong kong has three problems. interest rates are always there interest rates. the hong kong dollar has been ak, meaning what? it is about to hit 85. the bell rings and interest rates go up. the stock market is doing extremely well because we have had real negative interest rates in the last six years and it looks as if we will continue to have them because the americans are not going to increase. when you count the hung saying index in hong kong, it is the same problems and the rest of the asian and he markets, the rally is very narrow. >> correct. driven by china primarily. shery: and also the tech stocks, a few stocks. if you look at the kospi, also exports. we are seeing a electronics exports surging as opposed to everything else. how problematic can this be? 58you are giving me questions to which i'm trying to get you one answer. shery: two. >> let's forget about exports. --ort economies are not asian economies are not export driven. they are driven by a lot of things. i am including everybody. when we look at

our energy reported there in hong kong. to payg news, kia compensation to workers, the ruling we were expecting when it comes to base pay. this is almost close to a best even then, impact seen as limited considering the chief i relations on kia. to includers ordered regular bonuses and some incentives as part of that base wage according to a ruling that has come down from the central district court on the back of 27,000 workers who filed that lawsuit in 2011. we just have that judgment coming through now. coming up, safe haven flows and uncertainty. we will look at where the dollar goes from here. this is bloomberg. ♪ ♪ haidi: this is "bloomberg markets: asia." i am haidi lun in sydney. inhaad: i am rishaad salamat hong kong as we check in with the business flash headlines. uber's incoming cheek executives -- chief executive saying an ipo should happen in the next 18-36 months. the new ceo was introduced to employees by travis kalanick. he is seen as a man of principle with little ego. one of his first tasks will be to rewr

this is bloomberg. ♪ ♪ nine d: km in hong kong, 9:00 thursday night in new york city. kong, 9:00. tens his grip on power. profits soaring 1600% in the first half. haidi: i am haidi lun in sydney. deadlock in brussels, brexit talks wrap up with the u.k. being accused of failing to accept financial obligations. this is "bloomberg markets: asia." ♪

in hong kong and singapore. a look at our top stories. tackett leading the asia-pacific up.pple assuaging fears with a confident prediction for its new iphone in autumn. of united states, gm and ford hitting the brakes. i am haidi lun in sydney. back, up, the brics are inward fund flows the highest in two years. this is "bloomberg markets: asia." rishaad: right, records for the dow and onwards and upwards. the dow jones industrials up so far this year, 10% up, adding to the gains in the session on tuesday, we do have a move to gains toe, taking what? something in the region of 10.5%. 11%, in fact. that sounds good, but let me pull up this chart. btv 175 is telling you what is going on with the dow, u.s. equities, and how they are doing compared to the rest of the world. you could argue they have a huge waiting when it comes to global indices, perhaps reflecting the the blue line is showing u.s. stocks are ever so slightly lagging globally has we keep on striving towards global high records. haidi: that is almost unbelievable, really putting things in perspective. you do have

in hong kong. thursday,ory this wall street fell as the president's threat to shut down government reverberates. from bloomberg's global headquarters, i and betty liu. the big corporate stories we are following today, m song launching the galaxy note eight -- samsung launching the galaxy note 8. and uber may be on the right road with losses. it is now a mere $645 million. a reminder to our viewers on what happened today in the u.s., you have to remember what happened last night. you guys were still trading in donald trumpsident said this. president trump: we have to close down our government, we are building that wall. let me be clear to democrats in congress who oppose the border wall and stand in the way of border security. you are putting all of america's safety at risk. betty: republican leaders sweating bullets after the comments. that hit the markets,. today, risk off. right after trade, you had mitch mcconnell, the senate majority leader who had been rumored to not have spoken to trump for w

bbc news, hong kong.er you think they should be restricted. moving to technology. uber or lyft. they have been on a massive spending spree. this comes as softbank rose 50% to 4.2 this comes as softbank rose 50% to 11.2 billion us dollars in the three months untiljune. that is mostly because of gains in us chip designer nvidia. the owner of softbank became popular in america because of his meeting with donald trump. he is very rich. will he invest in uber, lyft, or both? he is considering both. we don't know which one yet, but he wants to crack that ride market because he has not presence in the us. he has already done so in asian ride agencies. he even has a big stake in brazil's 99. the importance of that industry has to do with growth. they are predicted to overtake taxis and be worth nearly $200 billion by 2030, the entire industry. it comes down to this man, the son of masayoshi. he isa this man, the son of masayoshi. he is a technology entrepreneur who started from small beginnings. he started from s

anna: live shots of hong kong.ing landfall in the last few minutes. ♪ mass: government trump's friend they government shutdown over his border wall. the president said he might terminate nafta. >> we have been so highly taken advantage of, they have made both of theeals, countries but in particular mexico's that i do not think we can make a deal. accept thesa may eula will influence the u.k. after brexit as she seeks to accelerate divorce talks. manus: draghi's warm-up. addressing nobel economists. will he give anything away ahead of the jackson hole? anna: the hang seng, hong kong trading is suspended as a severe typhoon hits the financial hub. tonus: you're welcome bloomberg daybreak: europe. i am manus cranny. anna: i am an edwards. we're getting numbers from world'se, wpp, the largest advertising business giving us their numbers, they are thinking about buying an agency called design bridge. giving us their numbers. it ordered revenue up by .3%. pretax profit up by 124.7%. at headline eps up by 16% 45.4 pence a

hong kong time.lobal news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am ramy inocencio. this is bloomberg. betty: the big story in the u.s. that hit the markets earlier was this story about special counsel robert mueller using a washington grand jury as he investigates alleged russian interference in the presidential election last year. they can issue subpoenas for documents and witnesses until prosecutors determine whether to bring criminal charges. nathan hager has been tracking these developments in washington. for those who do not know about the process, how significant is it that he wants to put this grand jury in place? nathan: if nothing else, it shows the investigation the special counsel has been conducting for weeks is potentially growing in intensity. as you say, the special counsel grand jury does have the power to issue subpoenas, the call witnesses under oath, and potentially bring indictments if there is evidence of a crime that can

rishaad: i am rishaad salamat in hong kong.est business flash headlines. a private equity company holding 12.5% of spring, calling for an extraordinary meeting to vote out spring asset management. it is pointing the finger at performance and corporate governance and questions around that. has fallen since reporting results last week. a hong kong-based logistics set up says it is set to rival fedex and ups. it uses minivan drivers to move goods around and has expanded into mainland china, taiwan, south korea, singapore, and india. local media speculating it could become a tech unicorn. rishaad: the hong kong market regulators says the management of energy and others should be barred because of misconduct at the solar company. wantsd the court that it energy band. been suspended since may 2015 since it stock lost 47%. it's unexpected rise had made the company more viable at one stage then twitter. haidi: markets higher, traders shrugging off the most recent north korean missile launch. jonathan, great to have you. this kind of cy

at the moment it has moved west from hong kong.e south—western province of wong chau. according to chinese news agencies it has brought a lot of wind and rain. trust bought and businesses have been disrupted. —— transport. the storm has lost a lot of its strength after making landfall. that is because of the science of typhoons. they get a lot of their energy from warm, tropical waters, and when they hit land they become less powerful. but of course they can wreak havoc across southern china. at the moment the death toll stands at 12 people. at least eight are confirmed to have died in macau, and four in guangdong province. are confirmed to have died in macau, and four in guangdong provincelj understand and four in guangdong province.” understand 27,000 people on the mainland were evacuated, and they are not out of the woods yet. there are not out of the woods yet. there are alerts for landslides and more flooding and other geological disasters. are people still bracing themselves for that? people are still dealing with the afterma

yvonne: i am yvonne man here in hong kong. watching "daybreak asia ." >> north korea says its latest missile test was a meaningful prelude to containing the u.s. territory, guam, and more launches will follow. the statement came after president trump said all options stay open after the missile passed over japan. he said pyongyang had signaled contempt for the you when an international community, posing a direct threat to the region. to have littled progress and the brexit talks. they want to move on to potential trade links after the divorce. the u.k. will have to pay to quit that you -- to quit tehe e.u. lot --s main bank a lobby said they should curb. they said the e.u. should drop new rules on trading. and said that it ought to be reconsidered. there were questions about washington support for global banking standards. china eastern bowing to improve profitability after years of expanding capacity and dragged on earnings. delta's partner says it will step up direct ticket sales and manage prices better. risearrier reported

a tough open up for hong kong.nd, they had fans on the edge of their seats towards the end of their match. just a 2—point margin of victory ireland gave their fans in dublin. 19 points against 17. they eventually beat australia. much to the relief of the home crowd. she mentioned it was a tough opening for hong kong. we will look at those results, including that one. in pool a, there were big win for new zealand and canada. fullback, selica winiata, scored a hat—trick as the black ferns beat wales 44—12, and canada, runners—up in 2014, thrashed hong kong 98—0. in pool b, england began the defence of their title with a comfortable win over spain. kay wilson ran in four of england's ten tries as the champions won 56—5 and usa beat italy. while in pool c hosts ireland scored a tight win over australia and france were very comfortable beating japan but how did the holders view their win? the second round of games takes place on the weekend. the final is in belfast on the 26th of august. the score does not reflect how p

in hong kong on a monday evening -- 9:00 a.m. in hong kong on a monday evening. this is bloomberg markets, asia. rishaad: a dramatic escalation in the north korean missile standoff in hokkaido. shinzo abe and president trump are speaking on the phone. haidi: the rising tensions offense gold to its highest level of the year. the yen strengthening as investors seek safety. rishaad: the u.s. oil industry facing more chaos as harvey gathers strength. they are facing a renewed threat. russell spencer of frustration at the u.k., saying brexit negotiations are not serious. michelle barnier wants more details. let us get to today's events right away. looking at this north korean missile test flying over the island of hokkaido, really unprecedented that we have seen a north korean missile flying over the japanese mainland. let us look at what is going on at the moment at this chart, 8092. it is telling us there is not much to be worried about. no one worries, according to this. this is a signal index, below average risks for the korean currency at the end of july. that bi

the hong kong government says that just 50 of those have been cleared so far.s informed of the collision two days after it happened. this could have been prevented before it got to the beach. the government could have or should have had policies and procedures in place. once it has hit the beach it is too late, it is already a disaster. officials say the oil is non—toxic and harmless and that the beaches are closed as a precaution. but the spill, at the height of summer, has lefta stench over the area and it could be months or even years before the real damage is known. nicola carroll, bbc news. police in london have failed so far to trace a jogger seen on cctv, apparently pushing a woman into the path of a bus. they've now appealed to the public to help. the footage shows the man running on putney bridge in the south—west of the city. thanks to a bus driver's rapid reactions, the woman is ok. daniella relph reports. 7.41 in the morning, the manjogging on putney bridge and then this. the quick thinking of the bus driver saved the woman's life. the police believ

i am rishaad salamat in hong kong.dge fund us he sees the mainland economy growing at a decent pace in the second half, even as tailwinds flow. >> looking ahead, we think the strong tailwinds for the economy will likely weakened somewhat in we are nothalf, but over bearish on the economic outlook. we find some self feeding momentum in the economy and are sure the growth will remain good in the second half. >> how much pressure do you expect to see going ahead on the real estate sector in china? >> we believe policy measures are effective because they are heavy-handed and regulate the supply side and demand side, which make the price to be stable. there is already a dry up of liquidity in the first tier and , and fully cities intends to be quite low. makes weaker developers in the sector finding it difficult to survive. de-stockings is taking place in tier three and tier four cities is going well, but we should not count on the sector is the main driver for growth. onyou expect the curbs property prices at least in term

hundreds of flights cancelled and the stock market suspended, typhoon hato causes havoc in hong kong.elcome to world business report. i'm rachel horne. also in the programme, we'll be looking at the gender pay gap in the movie industry. wpp, the world's largest advertising group, is due to report its latest numbers in the next couple of hours. the advertiser is seen as a bellwetherfor an industry that's changes dramatically in recent years. while the total spent by brands globally on advertising in 2016 was up at $493 billion, where it's being spent is shifting significantly. while traditional advertising sales were effectively flat, global digital ad sales grew by 17% to 178 billion. that number will, of course, keep growing, and by 2021, it's estimated it will account for 50% of all adverts. with me is theo izzard brown, head of strategy at the advertising firm mccann london. let's talk about this digital side of advertising, a growing side. what challenges that ring to the industry? there is a couple of ways to answer that question. the first one is the transparency in question. we

plus formula milk is big business in hong kong. we assess the obstacles there to breast—feeding.me to world business report. i'm sally bundock. also in the programme: china's appetite for stout beer is soaring. rico is back with the reasons why. but first: president zuma of south africa faces another vote of no confidence in parliament. this time it will be a secret ballot. mr zuma has been under constant pressure over everything from corruption allegations to a controversial cabinet reshuffle that saw his widely respected finance minister, pravin gordhan, fired earlier this year. that prompted two credit rating agencies, standard & poor‘s and fitch, to downgrade south africa's credit worthiness to junk, hugely increasing borrowing costs. and injune, the economy, once the continent's largest, fell into a second recession in a decade. figures out yesterday show the country's unemployment rate remained unchanged at close to 28% in the second quarter. that's about five million more than in 2009. with me is william attwell, senior analyst, sub—saharan africa at frontier strategy grou

hong kong closes 13 beaches as more and more congealed palm oil washes ashore. and the american country music legend glen campbell has died at the age of 81. north korea's official news agency says the country is considering launching missile strikes near guam, in what is a sharp rise in rhetoric between the two countries. the report says pyongyang is looking at a plan to fire medium—to—long—range rockets towards the american territory in the western pacific where us strategic bombers are based. it follows news from us intelligence officials who say north korea has produced a nuclear warhead small enough to fit onto its ballistic missiles. donald trump warned north korea that any further threats would be met, as he put it, "with fire, fury and power." this was donald trump's warning. north korea best not make any more threats to the united states. they will be met with fire and fury like the world has never seen. he has been very threatening beyond a normal state, and as i said they will be met with the fire and fury and, frankly, power, the likes of which this

rishaad: i'm rishaad salamat in hong kong.we check in with business headlines, alibaba beating up its fledgling travel service by teaming up with marriott. they created a joint venture featuring mary has entire -- marriott's entire lineup. they will link their loyalty program. china is the largest source of tourists in the world. regal has sold the this tribute or "spotlight". it bought confirmed open road films without naming is some. they say it's part of a larger half $1 billion expansion project underlying china's continued interest in hollywood, despite crackdowns on outbound investment. rishaad: tesla making its debut at the corporate bond market, as elon musk bolsters his bets on more affordable electric cars. it is planning over $1.5 billion in unsecured notes, and he proceeds will help test lateral out that model three, the cheapest -- the model three, the cheapest car yet. haidi: china plans to cut steel production during the winter, and this is driving a rally in metals. i'm next guest says these curbs should not be

the hand looking good in hong kong.igh, alsotwo-year chinese stocks in hong kong trading at the highest level as well. bloomberg data showing 60% of companies on the hensing have reported estimates. australia, commodity prices, particularly iron or in singapore. technologies the strongest performer in the region. thanks to a number of broker upgrades. the defenseke in company for 6.5%. jpmorgan has downgraded after earnings last week saying the for competition in the domestic market in australia. one of the worst performers in the region today. we are waiting for chinese banks to come through with earnings later this week. they all report wednesday. earnings have been pretty good. a lot of expectation for what the banks will deliver and whether they will for shareholders. underperforming the overall enterprises index and they are also trading under price-to-book value. >> thank you very much. floodwaters have been rising across houston as harvey continues to inundate southeast texas, pounding the fourth largest city wit

in hong kong in 1:00 p.m. in sydney.sumeom set trading after announcing its privatization plan, all the details and a premarket check coming next. this is bloomberg. ♪ ♪ we are counting down to the open of markets in china and hong kong. the premarket session in hong kong, a pretty mixed the session at the start of this week. premarket up .2%, futures flat at the moment. some stocks we are watching, unac, a chineses developer, caught up in the deleveraging campaign. china unicom, the of $11.7 billion share sale there, announcing and a statement to the hong kong stock exchange a list of strategic investors when it comes to china unicom as lack lastand told ,eek, a messy announcement investors including tencent, china life insurance, as that company goes under restructuring. c, they 15k at suna fold job after a flurry of acquisitions and a positive profit alert issued this morning, gross profit up 80%, revenue up 25% on the counter deals and gross profit margins as well. its chairman had to come out and say he did pledge t

rishaad: i'm rishaad salamat in hong kong.e counting you down to the start of the trading day here, just minutes away. free market, a 1.6% fall back. 443.4 for thes a hang seng, and just a couple of days ago, this benchmark was showing a 25% or 26% gain your today. -- year to date. one stock we are watching,, this companies soaring in the entered a session. its biggesthad intraday gain in two years, a 5.9% moved to the upside for china mobile, and what's it going to do? it will pay its first special dividend since 2008, and it is marking the anniversary, raising its payoff to shareholders. this is after the chinese government canceling long-distance roaming tariffs. been building up of 4g networks, intensifying competition for those who did to spend more on data services. they say they hope to reach 100 million subscribers to their 4g service. they said they added 58 million, maybe 59 million, in this period as well. people are looking for more of the same, haidi. yeah, a difficult market to be trying to buck the trend, if you

i am rishaad salamat in hong kong.ig shares had a good session, especially the extended one, the estimates on second-quarter operating profits. net earnings at $1.52 a share. driven by again said its consumer division. this is a win for the new chief executive who shook up aig's management team. aig still under pressure in its commercial insurance operations as margins get eroded. trade,jumped an extended and estimate be there as well. its much anticipated watch will debut in time for the christmas period. sales dropped 40%, but that of than forecast. fit it facing increasing rivalry from china's xiao mei and the apple watch. dalian won an da the expects a net loss in the second quarter compared with a $24 million profited year ago. north american box office sales of $11.2 billion this year, down 1.5% from 2016. we should be getting these pmi numbers out of china. it is the china composite pmi figure from caixin. july nonmanufacturing as opposed to 51 .6 in june, so slightly weaker than that june figure. there we have

tuesday morning in hong kong.ot and humid. 30 minutes away from asia's first major market open. betty. betty: it does look a little soupy in hong kong, yvonne. 7:30 p.m., monday. i am betty liu in new york. yvonne: i am yvonne man in hong kong. you are watching "daybreak asia." a: tensions finally being felt. foreign investors sold them at $450 million worth of korean outflow second weekly since november. investors need to retreat on president trump threat of fire and fury and kim jong-un's warning of an attack on gu am. new fines of stability and chinese markets and revised plans to allow individuals to invest abroad. forces say the foreign-exchange wants approval for people to invest in securities traded overseas. if approved, it would signal a departure from strict controls on outflows, including last week's announcements curbing investments chinese companies can make abroad. oil supplies set to plunge if opec renews supplies. this one after surprise hit their highest level this year. rising in has been latin a

here in hong kong. i am yvonne man.e are looking pretty mixed leading up to the market opens in the region. we did rally to 10 year highs on asian stocks. perhaps a bit of a breather to look ahead to u.s. jobs report and the earnings that have just come through in the last couple hours. especially with tesla. the conference call with the elon musk a just ending. quite a few headlines coming out, including him talking about the compact suv, the model y. how many more letters in the alphabet before he runs out of cars to produce? .e saw apples lifting shares tesla is up over 7% in the aftermarket. be the same for u.s. markets tomorrow. in the meantime, the tech shares in focus in asia, your markets are about to open. yvonne: the dollar on the defensive after fed speak. it could be a good indicator of how asia will play out today. could be more confident than expected. in new zealand, down in the nzx 50 1/10 of 1%. the kiwi reeling from software and employment numbers at .7419. doldrums, fedthe speakers urging caution over

it's left at least six people dead in macau and hong kong.here's growing concern that an online auction of rhino horns in south africa will trigger an increase in poaching. in syria, the caliphate declared by the extremist group that calls itself islamic state is crumbling. on the battlefield, it is losing ground, but the battle is being waged one town at a time. in an exclusive report, our chief international correspondent, lyse doucet, is on the front line of that bitter struggle. she's been travelling with president assad's forces, backed by russia and iran, as they re—take more territory, ruled for years by is. this is the man leading the syrian army against islamic state in eastern syria. general mohammed hadour wants to take us to the front line to see their latest successes, vowing, with a soldier's swagger, to ta ke vowing, with a soldier's swagger, to take back all of syria. tens of thousands of men under his command. translation: i am hellbent on victory. we are not scared of death. i'm a commander on the ground and i've been wounde

first of all, the clear up is beginning in hong kong. the typhoon was measured asa hong kong.n storm, the highest possible level. at least three people have been killed and the re m na nts of people have been killed and the remnants of this are sweeping across southern china. egypt has criticised the us for withholding almost $200 million in military aid. it has not yet been officially announced, the move, but is reported to be related to human rights concerns. this includes the president's son—in—law visited cairo. lots of you are looking at these astonishing pictures from chile. the normally arid atacama desert has been carpeted in flowers. this comes after intense and unexpected rain. this happens about once every five to seven years. the reins caused buried seeds to germinate to flowers. we must turn back to the conflict in yemen. at least 35 people are believed to have died outside the capital. we have died outside the capital. we have this image and rebels are saying that inside that hotel, those people died. they claim it was struck by the saudi led coalition. the coali

here in hong kong. i am yvonne man.here is something about the month of august where crazy things just happen. two years ago it was china, the devaluation. the jury is still out to see whether geopolitics will be the trigger this year in triggering the volatility. betty: who knew a year ago we would be talking about north korea and the possibility of military conflict between the u.s. and north korea? but here we are in august. volume is still relatively thin. any movement will be exaggerated by the thin volume. that is exactly what we saw. despite all these headlines, the markets remains relatively resilient. which is confusing to some investors who say, we should be moving more on these headlines. right now it looks like the markets are focused on earnings and the fed. yvonne: those are still some likely catalysts. from -- a comments little movement from yen. not much in gold. pretty muted with the safe haven plays. in new zealand, no change in policy after the rbnz. inflation slow. perhaps a little less dovish than e

too lenient a sentence according to the hong kong department of justice.ore.kopczynski has >> the local justice department says there is no political bias in it and they have maintained that freedom of speech is protected in hong kong and the only thing that is not protected here is the disorderly and intimidating behavior of the activists. on the other hand many rights groups and others are suggesting this is being used to not only punish them but to politically cow the opposition. in addition to the six to eight months of jail sentences they will actually barred from running for legislative office for the next five years. it does seem that regardless of what their intention is a certainly want -- they certainly will be kept out of politics for the near future. the government was not satisfied with their initial sentence of just community service which they had served out to as with an earlier trial this week they said these were not enough of a deterrent and wanted to make sure that all the young people in the territory got the message. it remains to be

in hong kong. i am shery ahn. we are seeing geopolitical tensions being great for global markets and volatility retreating as well, but i guess the key question is whether president trump's new actions on china will in fact stoke more trade tensions. betty: we have not seen that affect the markets before, but who knows? the markets are even more jittery these days. it seems like you cannot make sense of what headlines will move what index. you may as well follow buffett. i'm pretty confident you will make money if you follow him. our sources talk more about that story. shery: with the rally here, we are setting up for a bullish trend in asia. betty: that is always good advice, isn't it? always follow buffett. out onseeing korea independence day and usually around this time, we could have further escalation of tensions. so far, as he mentioned, the market seems to be weathering all of that. new zealand is up .5% as well. story for same australia, which was up yesterday by .7%. we are seeing futures gaining .4%. but

shanghai and hong kong opening up.ng catch-up after being shut from yesterday's trade. let's get it over to sophie. sophie: the hang seng opening in , i.t.een, higher by .8% gaining over 2%, energy gaining 1.7%, so playing catch-up, and looking at gains this morning. a second day higher. to point out that although this index is headed for its eighth

in hong kong.-m rishaad sponsored rishaad salon beauty -- earnings are over shower by earning scandal. and north korea is threatening a preemptive strike on guam as president trump warns of unprecedented fire and fury. this is "bloomberg markets." ♪ rishaad: looking forward to -- well, inflation numbers out of china and a half hour good they're looking at factory gain numbers good -- numbers. they were negative for so long until september, when they turned positive. looking at 5.6% growth when it comes to prices from leaving the factory gate. consumer prices. 7721, it is the china national bureau of statistics, updated with the latest read at consumer inflation. we are looking at what is happening with that. we have 1.5% increase expected on the cpi, that is the consensus. what we're witnessing is negativity when it comes to food. -- were notesenting just by the national bureau of statistics, that's the turquoise line, but the food tracker on the white line. 1.5% level of deflation when it comes to