my personal impression is that with the completion of the major bridge network involving hong kong macau and with more and more completion of other major infrastructure projects in other major cities, the pearl harbor delta region bay area is truly becoming one of the most important economic delta areas in the whole world. whether it will match that they carry are other major bay areas i do not know, but i am sure that the integration in the closer met of all the major cities in that part of the pearl river delta region will create more economic opportunities and will bring in greater efficiency, and will make manufacturing and industrialization much more efficient way. and hong kong should not lose out from this megatrend. and if hong kong really tracks integrate tightly to this major transformation of the river delta region, hong kong will benefit and hong kong will also help other major cities over there to benefit from this great transformation. >> if you look at hong kong now, some of the major issues including, for instance, the asian society, the rising housing prices come the gap

that contributed to lower business in macau.. what are the main risks and concerns when it comes to gaming? it has been in recovery now for almost a year. i guess some of these numbers deceived because they gave some pretty poor comparables. >> right. that's right. the recovery is in process. there are positives about the sector, but one of the big risks that remain is the government is serious about clamping down on money laundering and capital outflows through gambling. they have put in facial recognition technology at all the atm's in macau. in june, they arrested 17 people in macau suspected of proxy betting. the authorities on the policy side are very serious about enforcing regulations in macau, and that will continue to be watched by people. watching whenou it comes to the streets estimates for the year? >> the estimates are still positive for the year. gamingian is 12% for revenue growth, and that will be the first positive number the street expects since 2013, so in macau, the recovery is still underway. angie: rachel c

that had to do with a profit shortfall in the macau resort.gain, the strong recovery underway in macau. but the industry revenue has rebounded. this was clouded a little but the china's -- chinese -- theents attempts to profit rose to 118 a share but missed the average we were looking for. we will see how that plays out. and how will play out in hong kong, as well. we will have more macau earnings. first word news now with nina melendez. >> u.s. commerce secretary wilbur ross st saideel is among is among histeel priorities. he also said nafta was out of date and needed an urgent revamp. on china, ross said the two sides were the early stages of trade talks. was proof that came to pass, and that was good. there was a more difficult phase, because there are trickier, bigger issues, more deep-seated issues. it is a work in progress. >> president trump tweeted of a new chapter for u.s. ties as british trade a secretary continued talks in washington. after brexit, the u.k. will be free to negotiate deals around the world. he said 700,000 american j

. -- wynn, macau, this is because of macau gambling revenue. #btv 7382.the right-hand side, the green bar chart is 29.9% in terms of a rise in gaming revenue. that is the highest since 2014, but the estimate was found 30% rise. a lot of people are optimistic this will keep going especially after the last few years. asia,en it is monday in wrapping up the weekend. got to look at the box office. three, -- using the first or second? betty: i have not. ramy: it is the number one right now. $75.4 million in north america. sounds good but misses estimates. it is doing very well, especially internationally. something that will be a kick internationally as pirates of the caribbean. we have been talking about this for a few weeks, cross $700 million. i have lost track. maybe five or six? was $230ction budget million. i hear this is actually better. they have been getting international milestones, $9 million in japan for the first few days. haidi: sounds like you need a movie night. it is a shortened week because of july 4, but fair amount of data. ramy: let me wal

macau is the only place in that country where gambling is legal. >>> you may have noticed a change to your credit score, as of july 1st, all civil judgments and some tax liens will be removed from credit reports. this is a result of changes in policy. this is expected to affect 10 to 20 million people, with their credit score rising 20 points. >>> according to the tax foundation, indiana has the only corporate income tax change with the rate decreasing to 6%. individuals in kansas will see their income tax rates rise. tennessee reducing its sales tax rate on groceries, and six states indiana, montana, new jersey, south carolina, tennessee and west virginia have increased their gas tax rates. >> the illinois house of representatives passed a final budget bill which approves $6 billion of bonds to pay prior bills. it approved a $5 billion income tax increase and a spending bill over the weekend. the budget implementation bill goes to the senate. the cash strapped state began an unprecedented third straight fiscal year on saturday, without a complete budget. as we reported the inability

the casinos, las vegas sands, its new property in macau.ose 19%, beating analysts estimates. it came a day after rival wynn resorts disappointed investors. let's bring in the gaming and list. -- gaming analyst. ,he vip segment supported wynn but given sands' reputation, how did a fair? >> let's take a step back and look at macau holistically. all operators are pursuing all ends of the market. you want to capture every segment of the business. there is growth all around. sands is making progress to capture the premium end of the business, gambling revenue was of35%, impressive because the new property that opened up as well as an overall lucky quarter, so the house won better in overall bets. they are making progress as well, offering premium rooms which they are renovated -- renovating, introducing bigger suites. that is going to attract more of the high-end market and compete better with wynn. at the end of the day, they are at an advantage when it comes to the mass market segment, which will continue to be its core profit driver. yvonne:

macau miss estimates last month as concerns grow about regulations. straight month of 26% to $2.5lmost billion. economists' median estimate was for a second rise. the stocks rallied 30% this year through friday. has lifted the u.s. band of laptops flying to america from abu dhabi. themessage comes from department of homeland security making ground measures. people must pass through immigration and customs at a special preclearance section in terminal three. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. ♪ we are counting down to the major market open in the asia-pacific. let's go to the market editor adam haigh joining us from sydney. multiple lose we have seen, the euro and yen, the dollar yen. what does this mean for investors and the overall japanese growth story? good morning. clearly in tokyo the result is from -- if puts shinzo abe in more of a bind. there was already talk of him needing to make a cabinet onhuffle, which some people teams have said will be coming in a

uber is facing more trouble, they are halting business in macau as of saturday because of local regulationsier in the year, it suspended operations but resumed after setting up a partnership with after setting up a partnership with a local company. another recap of the markets. japan and australia are in negative territory because chinese markets are depressed. we will watch how that welfare when it opens in about 45 minutes. black monday yesterday, nearly 500 shares suffered steep falls. the plunge came after regulators flagged an extended crackdown on the financial system. investors were rattled even though china had better than expected growth numbers, 6.9% in the april— june quarter. the rest of asia is currently in negative territory. having a look now at wall street. the nasdaq continues to break record highs for an eight consecutive session. thank you for investing your time with us. the top stories this hour. senior russian and us officials have been locked in talks, over whether to hand back two diplomatic compounds seized by the 0bama administration last year. just two weeks after

gambling in macau has helped to lift revenue at resorts, however the us‘s company ‘s reve nu es we rever the us‘s company ‘s revenues were down slightly. one company rose at 7% to —— compared to last year. they are the largest casino hub in the world. we also have quarterly earnings being released later from have quarterly earnings being released laterfrom nintendo. the question is what the moneyspinner will be for nintendo. they launched a new day in in march, and they have sold 2.7 million units worldwide. in comparison, xbox sold over 3 million, that was in the first month of their launch. nintendo says they hope to sell 10 million more switchers in march. they are having some issues with production. earlier i spoke to an analyst in taipei and i asked whether that will impact earnings. they are in a great place, revenue and earnings will be up. they had big losses in 2013. why? they had big losses in 2013. why? they had big losses in 2013. why? they had a product that was a big failure. in contrast, the switch is doing quite well. we heard earlier that demand and supply for the swi

huge new infrastructure projects like this new bridge and tunnel to macau might be good for the economy but environmentalists claim it is playing havoc with the dolphins' natural environment. the hong kong government has announced it will create a new 2500 hectare marine conservation park in northern waters to help counter the effects of building another runway at the airport. the conservationists say that the marine park is in the wrong place and won't help the situation. so, when we go out to sea we use a long lens to take high—quality photos, as you see, because there is the information we use to identify the dolphin, just like the fingerprints in our hands. like this one, there is a round tip and a big notch. so from this one we can know exactly this individual has been seen when and where. we need at least 2,000 dolphins to sustain the long—term survival. but in the current situation, no matter how many times we run the simulations, the population is doomed to extinction. so that's a very worrying scenario. what needs to be done? what we are proposing is, protect what is important

have curtailed visitors from hong kong to macau. tay supplies nike, rising on nike strong sales outlook and broker upgrades. chart, is an interesting an exciting day, the opening of the china hong kong bond connect program, opening up that 9.4 trillion yuan bond market to foreign investors. nomura estimates the only account for 2% of bondholders in china. this chart shows you the yield on china's generic ten-year bond outpacing the -- u.s., germany, and japan. it is open to foreign investors as of today and strong yields to be made. manus: thank you very much. great roundup. japanese prime minister abe faces one of the biggest tests after the ruling party lost tokyo's elections. seats,he ldp secure 23 the lowest number. the vote could be seen as an indication of outcomes next national elections. joining us now is isabel reynolds. ay was this result such disaster for the lbp then? >> right, two main reasons. one, the tokyo governor has developed star power in the capital, making great use of social media, a clear agenda of cost-cutti

a top official in macau jailed for 21 years, it's a corruption case.make a lot of money from wealthy chinese folks. >>> netflix you should fire because of -- under fire because of a new movie. promotes anorexia? >> yeah, it's called "to the bone." the director -- it starts today on netflix. the director says, look, it sevens as a conversation starter about an issue they say is too clouded by secrecy, but it is getting some criticism. some just the way it's presented, saying it's trite, shallow, cautiously middle brow, that the movie actually doesn't really address the condition. in fact, it even inspires copycats. other people said, no, anything can spark as a copycat when it comes to an eating disorder. the star is lily collins, the daughter of phil collins, the singer. but there's concerns about her. she lost a lot of weight to play this role. she said she was under the guise of a nutritionist, but it's quite compelling when you see some of the pictures of her. stuart: i'll bet. >> quite disturbing. stuart: two bills in michigan aimed to protect free

for example kim jong-un's half brother was living in macau under political protection.ind of power over the north koreans, i think that kim jong-un's half brother would still be a live. >> very interesting, a little bit chilling and we look forward to talking to you again about it. >>> repeal and replace, that could sink the gop? award winning interface. award winning design. award winning engine. the volvo xc90. the most awarded luxury suv of the century. this july visit your local volvo dealer to receive sommar savings of up to $4,500. tha...oh, burnt-on gravy?ie. local volvo dealer ...gotta rinse that. nope. no way. nada. really? dish issues? throw it all in. new cascade platinum powers through... even burnt-on gravy. nice. cascade. >>> i wonder why the secret service, if this was nefarious, why did the secret service allow these people? the president had secret service protection at that point. number two, we can't act like this is in a vacuum. we know for a fact, as reported extensively in a piece by politico, that the ukrainians were in direct contact with doc off

macau casino operators have been dealt a better hand, morgan stanley raising its forecast for the yearue to rise from 2012.up wynn gaining market share from mass-market for dissipation. in march, a morgan stanley analyst said wynn's stock could double. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. bloomberg. >> i am a sophie kamaruddin with a check on the markets. that global selloff looking unabated in asia. asian stocks looking at the biggest loss in four months. bonds of falling in the region. the last time a and stocks fell together was back in the 2013 taper tantrum. some are warning the party is over and central banks are set to take a punch. a few bright spots in asia 0.1%. the won gaining but set for a six week of losses. the qatar at a benchmark. the nikkei 225 down one third of 1%. this, despite the yen falling despite its major peers. deepening on the back of the boj's move with a deal. aussie shares of the biggest in the region. look how it climbed in aussie bond yields, in particular, the 10 year, which could be

the pearl river delta in china, hong kong , macau, shins and. 60 million people.his is essentially an urban area. it's the size of what most major countries in europe were 20 years ago. >> i think here, we are entering a period where some of the fault lines are going to be unexpected. and we're going to have to figure out how to recognize silos so i think it could be, i'm saying it could be pretty rough. having said that,, look at europe recently. they saw where we went and they are now reacting to that in a way that has to be seen as fairly positive. so as i say, medium-term, long-term on optimistic. but i'm really cautious about the near term. >>. >> thanks for coming also, a big fan of the magazine and podcast. you touched on i guess you call it the political economy of automation and ai. and you talk about the great benefits of being able to write poetry and be with family instead of working but you mentioned that might mean that income is accrued to those who own the capital, the machines. and when i think about these issues, i think we ought to be cracking u

president bush had good success when he found a single bank in macau that kim jong-un's father kept hisortune in. that was the money used to pay off all of the generals around him and others for their loyalty. when they stopped that bank, it caused a lot of screaming. the north koreans learned a lot from that and spread their money more. you are right. we are in this bad spot. you have to wonder right now, whether, awful as that is, when president trump looks at this issue, you know, i -- a north korean crisis has certain advantages for him. it focuses attention on something other than the russian scandal. i don't mean for a moment to suggest that he wants us to get into a war, i don't think he does. but he has a real crisis in front of him at a moment -- charlie: obama said the toughest thing i am leaving you is north korea. david: that is right. him int thing he left the one possible offramp is the combination of fiber and electronic warfare and other steps to sabotage the system. cyberattacks,th is that what works on thursday may not work next monday. they are quite temporary. they b

i was looking to see the estimate was that the macau revenues would be $1.88 billion, and they spellth an o. that's another story we'll go down through it similar results from, and. >> yeah, seems in line both stocks have come back off the bottom as macau stabilized both are well below the 2013, '14 stocks >> do you gamble >> no, not gambling, staying mostly in the hotel stocks, but i'll make a quick comment on buffalo wild wings this. we wish they'd do better for huntington, so we wish they would do better. >> wait, where exactly are you guys >> so we're throughout from chicago over to pittsburgh, down to cincinnati and up to northern michigan. >> i didn't if you were in buffalo itself but anyway, so you're saying that you're not -- would you guys, as an investment, be interested in buffalo wild wings at all, is that purely a comment on the dining experience >> that was a comment. that was a comment on the dining experience they're a little bit small market cap for us to be moving into. >> i see and getting a little smaller ten minutes until that stock does reopen. yeah dennis, mean

gaming revenues are up in macau so there is an optimistic view when property prices are going up andndia, a market that has been very optimistic. have a look at a chart, standard deviation closer to two. they are not known to have german like efficiency. this is expensive for you? >> i would say 1.5 is expensive, and now it is two. it is more expensive. of the rupeezation notes, i guess you move from a great economy to digital economy with the banking system. , loants went up advancements, and mutual funds have had a lot of liquidity and they are buying lots of stocks as well. has india gone up on fundamentals or a liquidity event? angie: always good to see you. this is bloomberg. ♪ >> 11:29 p.m. in hong kong. i am poll: with the latest first word news. economy maintain momentum has global trade and demand spurred a pickup in factories. , matching the6.9% pace of expansion in the first quarter. industrial output in june was up 7.6%, beating expectations. fixed asset investment and retail sales edged forecast. china on track to produce the least oil this year since 2009 with a bear ma

all the way to macau are being evaluated. to david's point with enormous impact, it is the shaming dimension but also the market effects. case point about derisking, the private sector very much looks at these evaluations and asse assessments to under the level of integrity. how good are they at dealing with money laundering and terrorist financing? do they have institutions in place to handle these tugrisks. it is a process enormously effective and it gets the attention of government, that's why it has been a tool of choice for the u.s. government to be able to push governments to improve. it's also why fatf look i haded countries like north korea and iran and put them on a black list for deficiencies in their terrorist financing systems and money laundering, and it is why those countries and iran in particular is so dead set in getting off the list and dealing with what are the market base and jurisdiction counter measures against the country and against their reinterest graduation into the financial system until they take

the big topic on the conference is expansion into macau, the world's top casino market and the growth numbers there now, market share is up, but ceo steve wynn pointing to some smaller challenges related to construction and one of its competitors. >> mgm in these final stages has enormous neighborhood implications streets have been blocked, barricades are up. and our conversations with our neighbors at mgm indicate that maybe this november, part of the building, at least >> these obstacles are expected to be removed, come fall now, another head wind, according to bernstein, made prior to this earnings report is chane's anti-corruption efforts. analysts say a wider pickup in anti-corruption activity, as we approach the 19th party congress in october that's in china, could have negative implications for premium consumer spend again, we're lacking at the stock, down by around 4% here in after-hours trade. melissa, let's make the point this is also a stock that's up over 40% year-to-date. >> absolutely. seema, thank you seema mody, from headquarters. and just yesterday, the whole group go

macau down 5% and we heard a junket operators saying there could be concerned about leverage in termsf those casino players and we have korea air, one of the worst performances, at about 11%. we have seen the china gdp better as -- better than accepted. the aussie dollar had been higher than six consecutive sessions. here, we have not seen the aussie above anyone since made 2015. but technicals suggesting it could push about that level holding at 78.2 cents today. one of our journalists said the ball could be concerned about that considering the last few times it tried to get to that level, it fell significantly lower. quite interesting in terms of the chinese database. we are seeing a significantly high aussie dollar. anna: juliette saly joining us from hong kong. she was mentioning china maintained momentum last quarter. demandtrade and domestic started to pick up. second quarter gdp expanded at 6.9% year on year. retail sales, investments, and industry output all estimates. is douglasto discuss morton, head of asia research based in london but a frequent visitor to china. , we wake

beat estimates, eps missed, and partly because the new macau resort came up short.thscripts coming its outlook in which it boosted its full-year adjusted earnings per share view. the midpoint topped analysts estimates, but the numbers for second-quarter revenue miss consistence, although profit did beat. both of those falling in extended trading. took on a risk tone as positive earnings and economic data bolstered confidence in the global economy as the fed sees robust growth against people inflation. with us now is the principal investment strategist at principal investors. great to have you on the show. give us a sense of how you see the world in terms of those by -- those evaluations and concerns about where risk appetite is an the relative a between the united states and europe. >> we have a global synchronized recovery in place. it is a great environment for equities because you have solid, stable growth. we have low information pressures, which is really good for markets. on a relative value basis, i prefer equity versus credit. i preferegions, europe on a rel

and youre activities, have seen that in the growth of places like macau, in retail, but is this entertainmenthing for the chinese consumer? >> yes obviously because they are definitely hungry for , becausefor more gigs the gigs are normally concentrating more on beijing, shanghai, but we are looking into other cities that create the potential. last month, we brought city.ainers to a smaller they are hungry for shows and concerts. definitely the audiences are there, demand is there. we are definitely looking at that. we are also looking into expanding into venue management because we have been in venue management for the last 10 years come expanding to more venues to bring more shows. at this point, you don't have in-house ticketing capabilities, so how important is that when it comes to your growth ambitions? ticketing --nd venue and ticketing will go together. is what weicketing are looking at, and expanding to overseas. momentin talks at the and it is part of our plan, yes. an optimismso much for this since the ipo. as you continue expansion, you will face some big players, so how will you

all the way to macau are being evaluated and to david's points -- it is the shaming dimension, but alsothe market effects. you look at the integrity of these jurisdictions. how serious are they dealing with terrorist financing? do they have institutions to handle these risks? it is a process that has been the norm asleep effective and it gets the attention of david'snts which, to point, that is why they have been able to push governments to improve. it's also why they have looked at countries like north korea and iran and put them on, in essence, the blacklist, for deficiencies in their anti-money and terrorist financing systems. that is why it one in particular is so dead set on getting off that list in dealing with those market-based and jurisdictional thetermeasures against country and their reintegration into the financial system until the take these steps -- until they take the steps. a final note on this -- i think it will be more important, not less. systemve started the new of evaluations around effectiveness. the assessments of the fast have largely been around -- can you tell

ambitious, 14ite stores in hong kong and macau for the next 10 years or so. we see the u.s.saturated when it comes to burgers and fast food chains. i have to question if they are not too late in the game? the burger craze has waned. folks for shake shack they do not think so. it has not been slowing down in the u.s.. they have struggled a little with same-store sales. i have had their burgers, they are great. as you mentioned, there is a lot of competition. what is interesting, is the competition coming from mcdonald's. i want to show you a chart comparing mcdonald's stocks to shake shack. for so long, people were writing off mcdonald's, saying their , everyone is going gourmet, going to shake shack. but look at this chart for mcdonald's. it has been incredible, the comeback for mcdonald's so far. they came back and said we will take market share away from these gourmet burger joints like shake shack. they are able to do that, drive prices down, increase their margins. had one of those craft to burgers from mcdonald's and i got to say, my kids and i ate them and, not bad. i

macau casino operators have been dealt a better hand with morgan stanley raising its forecast for theo rise expects revenue 15% in 2017, up from an earlier figure of 12%. continued to get market shares. in march, morgan stanley analysts said wynn stock a double. speculation that large investors may be building stakes. the stock closed more than 36% higher, rebounding from an intraday low on june 6 of 28.5 cents. noble is searching for a strategic investor to restore confidence. last month, managed to extend a credit facility for 120 days. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am courtney collins. this is bloomberg. yvonne: we will find out what we should be watching as trading gets underway in asia this friday morning. adam haigh joining us live from sydney. have charts looking ominous when it comes to equity investors. talk us through them. it looks like a pretty tricky end to the week for market. that spill over from what we have seen in the u.s. session, going to impact us here in asia. the first chart was inter

the paper says investors appear to be ignoring the lucrative market >> and casino operators in macauas wynn resorts could see a boost today after gaining revenue rose 25% in june compared to a year ago that marked the 11th straight monthly increase >> all right now to politics this is pretty interesting i think this is mike allen's scoop from axios steve bannon, steve ban be reportedly pushing a tax -- hard for me -- a tax hike, a tax hike on the wealthiest americans to pay for some steep work -- tax cuts on the middle and the working class. and this is classic bannon, populist, axios is reporting the president's adviser has told colleagues that he wants the top income tax bracket to, in his words, have a four, a four handle in front of it the current top tax bracket is 39.6. for americans who earn more than $418,000 annually. bannon is -- >> presumably also to fund a steep corporate tax cut. >> maybe -- >> in i think that is part of the deal >> that's all in the article from axios mnuchin and cohn are both, they don't want to do anything small. because cohn is gone it's not going to

it looked like the macau gaming numbers were strong, but they were below expectations.so weaker nasdaq sitting it out, down half a percent. everyone else is higher. dow touching some record intraday highs >> we told you friday about illinois's state budget problems new jersey now is having some problems of its own. i'm confused this morning ton instagram, i sa a photo of kate rogers drinking wine in napa valley. but now she's suddenly at liberty state park in new jersey with this story for us i don't know how you do it, kate >> reporter: bill, thanks for outing me on the air that was this weekend and there's no wine here but, listen, if you guys are looking the to hit a state beach or state park this weekend in new jersey, you are out of luck. that's because more than 50 state beaches, state parks, historical sites and recreational areas including liberty state park where we are right here in new jersey, they're all currently closed to the public this is because the new jersey state government shut down at midnight on friday after republican governor chris christie and