now, the goal is shenzhen. lu xuanlin lives in hong kong and works in shenzhen.u opened a members only beauty salon two years ago focused on wealthy clients. business hours are 10:00 a.m. to 10:00 p.m., but it caters to customers any time of the day upon request. the membership fee is $5500. more than 100 people have already signed up. this year, lu plans to start a new business. a restaurant. shenzhen is expected to become china's third largest city in a few years. it is known by countless names, including the town of entrepreneurs and china's silicon valley. a new day dawns over shenzhen. in the past, shenzhen was merely a small fishing village on the shore across from hong kong. after china's open door policy, it was designated as a special economic zone and transformed into a base for electronics related factories. now, in the center of town stands a massive electronics market called huagianbai. more than 30,000 stores fill the land. it's known as the place to find any electronics in the world. shenzhen's total population is roughly 14 million with an average

so much of the world's electronic products are made in shenzhen.enzhen. side, it'sware happening. then we talk about adding content, software, tencent the perfect example, more and more of that is happening. so what ma huateng is talking about is something that exists, but he's adding to it. china graduate enough skill -- i know there are lot of engineers, but whether there would be a skill mismatch at some point? in china.re skills they are turning out some good engineers at all sorts of levels. we know they are not up to the western standards in terms of semiconductor technology. on the flipside, the chinese ofd to be a great example building apps, social networking, the technology there, and also cloud computing, so what ma huateng is talking about is taking that further not just connecting southern china, but hong kong and macau, making a trying -- triangle. david: looks formidable. on $.10 you can check it out on the website. it is also on the bloomberg. look at markets across the region, generally ok, a decent been -- bid. , shanghai composit

aong overdue -- it is shenzhen requirement to meet its suspension and hong kong.ecame the first and only chinese developer to default. we have been live at the forum inhainan with guest talking about challenges facing china. policymakers in beijing must look at the global picture. china has to be very careful. we live in such an interconnect the world. the u.s. affects policies and interest rates in europe. but it does have an impact on china. not everyone is astounding such a cautious note. primaverae founder of capital. stabilizedomy has and is on track. from is been a shift investment-related growth to more consumer and service-based growth. it defines very positive. and investorsers are more reassured. ceod: we also spoke to the of china's third-largest search engine and asked about plans to go public. [indiscernible] i think maybe it is in the future. >> within a year, you think? >> i do not have a schedule. david: that was the ceo of sogou . they're warning against the rise we have seen in global protectionism. andpoke with a former ceo group chairman and as

the shenzhen-based company has invested massively in electric vehicle startups including a direct competitor of tesla. time to bring in our financial correspondent following this story. china is ready to invest in tesla. what does it mean for the brand of elon musk? >> it is all about cash. tesla has plans that cost a lot of money and therefore, tesla needs a lot of cash and it is welcoming news they received the $1.8 billion out of china. and when we look into the future, it will give tesla better position when it comes to the chinese car market. as the stock almost gained 3%. >> previous president obama was looking in the future when he was focusing on his environmental agenda and donald has signed an executive order rollback on that. what does that mean for the markets? other than go down, i'm sure some businesses will be happy. >> we saw a little boost in coal stocks in the tuesday session but overall, those matters probably won't save the industry. the coal industry is wailing and will probably mark a change in the last couple of years. it more than 50 operations had to be shut down in

this following the decision to set up in beijing and shenzhen. next, france is one of europe's top producers of down feathers, used to make a number of things from winter coats two comforters and even pillows. but a rise in bird flu is threatening supply with some producer saying they have lost one third of feathers. >> this is where your good night sleep starts. stuffing soft feathers down to pillows. producers cans process up to 120 tons of feathers per day, but only a small percentage are the coveted soft precious flakes called down. and the material used to stuff pillows, codes, and blankets is becoming increasingly work -- increasingly rare. production has been hit by the presence of bird flu in france which is responsible for hundreds of millions of euros. >> the volumes of feathers is steadily decreasing because it is avian flu in europe. >> 60% of the company's revenue comes from a block that comes from abroad. revenue comes from abroad. it has for the past 150 years. >> feathers are alive. i'm proud of myself when i work on a beautiful p

. ♪ >>> shenzhen located in guangdong province.ity that beat out hong kong in china's 2015 top comprehensive ecoc

instead of building larger highways to accommodate more cars, boyson found seoul, south korea, and shenzhen, china, have replaced old highways with public thoroughfares that have bike paths and greenways. in singapore, where 80% of the population lives in subsidized high-rise housing, the government charges citizens higher taxes for the social costs of car ownership, caps car leases to ten years and also plans to build carless city. >> obviously, so much of 20th century, mega-cities were built around the car, to service the car, which we're learning is not necessarily the best thing for people, whether that's air pollution or people getting hit by cars or running large highways through neighborhoods. >> reporter: boyson wasn't able to include all of the innovative projects into his initial mini- documentary, like one of his favorite submissions from medellin, colombia, which built a greenbelt that surrounds the city to benefit residents who have been pushed to the outskirts of the city by gentrification. >> and it's giving the people the furthest away from the center of the city this place

down to theing you session notches for hong kong, but shenzhen and shanghai as welker it we are comingerg's asian headquarters. -- and shanghai as well. we are coming to you from bloomberg's asian headquarters. janet yellen, talking later today in washington as a. this is all ahead of that house of representatives look at what is going on the health care measures they are, hugely important for them, and important focus for u.s. investors as well. haidi: that's right. a lot of focus on what yellen has to say, the seemingly disconnect when it comes to not changing the growth and inflation forecast, but changing faster when it comes to the rates. pboc,an stronger from the sex straight session of declines when it comes to that bloomberg dollar index of play as well. injecting funds for the seven day reverse repo rate. the big story has been in the money market rate. we had some job and difficulty for smaller lenders missing debt repayments on the interbank markets, that essentially forcing the pboc to step in and inject funds here it is interesting to see this dynamic of trying to manage t

trades down in shenzhen.e, ivory and allegations that the shares are falling in hong kong and the things they lower -- hang seng lower. performance in up 2.5%, ande, television broadcast dropping after lg losing in entertainment. the takeovermed of proposal. shipping rising -- cosco shipping rising. absolutely. let's find out what else is going on, get to paul allen with the first word news headlines. expandedan's economy more than a fourth at the end of last year due to an upward revision of business spending, gdp rose 2% for december. the for the very figure was 1%. the economy has expanded for four consecutive quarters, the longest in three years. growth was modest and mostly driven by exports while private consumption remains soft. the economy may not be strong enough to withstand a threat posed by increased trade barriers over the stock markets or currency volatility. the organization sees expansion of 3.3% this year, which is below the two decade averaged before the financial crisis. the economist says

there 30 minutes away from open in hong kong, shenzhen, and saying of -- saying -- shanghai.ket, despite that lackluster handover from the u.s. let's get over to david. 148 on the regional benchmark, equities at the moment, the fixed income space, now seeing a lot of these yields on the way up, so there is money out of next income into the equity space. forex markets basically flat after 24 hours of a deadlock when it comes to the health care reform in the whole conversation of where we go with this reflation trade. nothing happening across majors. dollar-yen around the 111 handle. commoditiesk at markets in china, steel up 1%, copper of .3%, crude following. the big movers are what you see here on the top. the other story is what is happening in seoul. stock open higher, erasing gains, down 25,000 won. talking about this restructuring process of whether or not they will be splitting into a holding company and operating company. .umber 12, negative impacts we talk about competition, i believe the head of the mobile phone business is speaking at the moment. there is going to b

we do have stuff in shanghai and shenzhen falling this week.e down by .2% .over in hong kong we have shares falling 6/10 of a percent, extending tuesday's drop here. today, it is expected to be the worst earnings report in eight years. take a look at what is moving in shanghai. we have consumer stocks on the decline here. down about .3% as awas seen disappointment of sorts. traders are shrugging that off. the growth is looking to continue over the coming months. we have energy shares falling in shanghai. oil producers have been waiting the drop in japanese shares. crude is down to a three-month low. japan's policy meeting is on thursday. we do have retailers outperforming in tokyo today. 1.7%.re rising about zahara is holding. looking at toshiba, shares falling almost 7%. looking at the tokyo stock exchange, the stock is at risk for delisting. i want to talk about what is happening with sharp. shares are rising. won't and tv production in japan. this was reported by the paper that they would be. the sharp president is set to resume if the stock

the biggest among those, bright beijing prices, rose 24%, shenzhen 14%. prices rose 12.4% on a yearly basis, but on a monthly basis, flatter,. this suggests the property not having the bite as expected. you can see from the chart, 3881, that price will taper somewhat into this year. the power of policy has weakened somewhat. ramy: that is a great chart. to what extent does this renew fears of a property bubble? havee: policy figures shown they are more interested in clearing infantry from third and fourth tier cities and controlling bubbles. there is a more relaxed approach to real estate as the central bank sees more -- mortgage lending slowing. , ande that home on support entire supply chain of developers constructing a firm in other places of the economy. as you can see on this chart, 4099, china home prices are climbing, but bad loans have tapered. the pboc did signal more property curves were forthcoming, and in the final draft of the work report, the excessiveontinue pricing in hot cities. and they also said the country would move to contain excessi

releasing long overdue result is shenzhen condition the -based developer needs to meet before liftingr suspension in hong kong. over faulted on debt. shery: setting the terms of for a fail that could raise three quarters of $1 billion. shares are up to weigh 4% discount from vote last close. in bank is seeking a offering and could seek more through a green shoe option. bank of america and others are working on the deal. betty: persuading goldman sachs and other companies to take proactive steps to address and disparity in men and women's compensation. they were asked to disclose data. the five agreed to address the inequality. non-committed to closing that gap. talks ofr li keqiang free trade in australia, one of president trump's policy plans is being called a gift to china. former treasury secretary larry summers says they are giving china a gift, nafta will hurt the u.s. >> i am just back from china. there is no bigger strategic and economic gift we could give china than for the united states to move away from nafta. it would mean less effective production and less efficient produc

shenzhen lower by 10th of a percent. over in hong kong, stocks are rising for a fourth day.ing higher tour 24,000 point mark. telcos leading the market along with financials. we have the five owners of hong kong life insurance agreeing to sell to investment firm first million.r $914 one of the owners says the sale is to allow for one shareholder to take charge and grow hong kong life insurance's business. speaking we have property shares back to october levels in hong kong, after they were dented by the imposition of a hefty stamp duty. take a look at stocks ahead of earnings. set to announce today. tencent, the heavyweight to report fourth-quarter earnings on march 22. it has become the world's largest emerging stock by value. when it releases results, analysts are forecasting online ad revenue 44% on year out facing its internet peers. investors want to gauge how it transitions to performance-based advertising. wynn down 7/10 of a percent. bernstein is raising the price .arget on monday, the stock was the highest since august 2015. shares rising 4.5%. it will report its ea

shanghai and shenzhen exchanges have tighten controls for exchange traded bonds.m china helped to drive japan's february exports to a two-year high. should and's jumped 11.3% from the year earlier in a while , leavingncreased 1.2% a trade surplus of $7.3 billion. ,xports to china jumped 28% shipments to the u.s. crude less than 1.5%. the trump administration places a lot of emphasis on trade deficit from the perspective of washington. a bit japan, it is challenging because that trade deficit with united states continues to be large and problematic, and so the japanese have to decide do they want to push on tpp. if they do, what that continue to antagonize washington? it is impossible for them to flip a $60 billion deficit overnight, so for me, the best outcome i think is to continue to lead on tpp. the european union is to make britain wait for brexit talks while scheduling a summit of remaining bloc members four weeks after the process starts. president donald tusk a says the party is to protect citizens, companies, and states from negative effects. theresa may s

they want an economy that does what they are doing in shenzhen.ve to get through the politics of getting there. david: it is the road from here to there, that will be tricky. thank you very much for your time, michael spence. that is it for this edition. >> it is 12:00 in hong kong. let's try that again. global stocks are on course for the best week since the start of the year. when you look at tokyo, markets declining. hong kong trading fairly flat. utilities on the hang seng knew the lowest level in two years. cathay pacific has released details of its turnaround plan after reporting a loss. costsntend to cut staff by

shenzhen is down. ♪ caroline: this is "bloomberg technology." coming up, the wikileaks data trove.he organization releases thousands of documents from the us tonight -- -- espionage playbook of the cia. are on a short ipo honeymoon. spaceff bezos's colonization trinkets the first paying customer. first to our lead. wikileaks has published thousands of documents taken from the cia. massive toolkit cia spying techniques. they have the ability to access information from messaging apps. you can also report malware on microsoft windows and cap into samsung smart tvs for surveillance. we do not know how wikileaks got its hands on the material. the cia says the agency does not comment on the authenticity of the documents. we are discussing the impact of this massive data dump. security advisor who has worked with homeland security, and also the former facebook head of product security. gentlemen, thank you for coming today. i would like to get your take. how sophisticated is this? there are reports that day are getting behind the encryption? >> i think we are uncertain about what they hav

the shenzhen-based company -- tencent is adding more space to brands on its wechat messaging service.oining me is selina wang. it seems to be investment is where they are really scratching the cash. selina: they just barely missed on earnings and revenue. the cost of revenue jumped 64% from the year before. investors are ok to take a hit on the profit margins at this point because they are seeing a lot of growth in other revenue streams. they are not just relying on mobile gaming. they have been expanding into cloud computing and mobile payments, into a lot of new content and the video business as well. caroline: when you look at a profit up 44 -- 47%, most would dive at that sort of number, not be too upset by it. give us a sense of video and cloud. call,: on the earnings management reiterated over and over again why video is just so important. there are pretty significant losses in that business, but tencent, like baidu and alibaba, are funneling billions of dollars not only to acquire content, but to make content. video is such an important way to get -- make advertising dollars, g

getting underway in hong kong and china. .25 of 1%.ng is up the shanghai is up into is -- so is shenzhen. the nikkei bucking the trend data about one third. -- down about one third. >> this is bloomberg technology. coming up another blow for uber as its president heads to the exit. apple makes a bet on the next big thing. could augmented reality per replace the iphone? note snap's public debut, one analyst had a buy rating on the firm until now. we will ask the analyst why he is bullish on the company. but first, to the lead. uber has confirmed that jeff jones is leaving. thereing reports that were controversies. this follows reports of allegations from sexual harassment to the c.e.o. travis kalanick. the company is embroiled in a lawsuit with waymo. waymo claiming uber is using stolen secrets attained by one of uber's former executives. joining us to discuss is brad stone and eric newcomer who is all over things uber. it is interesting because on one side of the equation, is it the amount of controversies and scandals? on the other side, is it about that they are about to hire a c.o.o.?

meanwhile, the shenzhen-based company is revving up its battle with alibaba in advertising.attempting to lure more app.n its wechat messaging we spoke with our bloomberg technology reporter. >> this cost of revenue jumped 60% from a year before. i think investors are ok to take a hit on profit margins at this point because we are seeing a lot of growth in other revenue streams. they have been expanding into cloud computing, mobile payments come into a lot of new content, and the video business as well. caroline: when you look at profit of 47%, most would die for that number and not be too upset by it. give us your sense of video and cloud. is this where we are seeing it come in? >> it is interesting because on the earnings call, management reiterated over and over again why video is so important. there are significant losses in that business, but they are putting in billions of dollars to acquire and make content because they realize that taking a loss in the short term is worth it. because video is such a way to make advertising dollars, get subscription dollars, and hone p

we do need to put in place, during the ago shenzhen, the right mechanisms so we can find the right pricerms over the next two yea rs. divorce terms over the next two years. what goes on from that point forward is very much up to the uk parliament and it may be, and most people here will hope, that the uk will make a success of it, so it is inevitable that people will look to the example of brexit. inevitable that people will look to the example of brexitlj inevitable that people will look to the example of brexit. i am sorry, i am afraidi the example of brexit. i am sorry, i am afraid i have not understood the question fully, i could not hear you very well. what i am saying is you can put things in place which may be obstructive and may even punish the uk but you can only negotiate the terms of the divorce. from that point onwards, if the uk makes success of it, it may well encourage others in europe to take a pattern. of course, if the uk becomes a brilliant success story by virtue of leaving in itself, yes, it might well encourage others to leave but what we are trying to do here and i

shenzhen down .1%. ♪ caroline: i am caroline hyde.his is the "best of bloomberg technology," where we bring you all of our top interviews from this week in tech. coming up, elon musk is looking for money. he is out to raise $1 billion to bring his model three to the market. plus, intel hit the ignition switch on its dream for the driverless car with its $15 billion acquisition. how mobileye went down. another twist in a massive 2014 yahoo! hack. u.s. officials blame russian intelligence. first, to our lead. elon musk needs to raise $1.15 billion more to bring his model three to market. his believers, along with investors, could hardly be happier. tesla shares rose on the news. ceo elon musk is personally participating by purchasing $25 million of common stock. the teslas model three is set to begin production in july and will start at $35,000. we caught up with a bullish analyst and bloomberg's david welsh. >> analysts are skeptical. yesterday, after this, some we were still hearing that he would have to go back and get the money. one

is based in shenzhen.un you through some up 63%, the revenue was in 2016, net losses narrowed in the past two years, sales tripled to a record high in 2016. rose profit margin rebounded to 13% from 3% in 2015, average themng prices jumped 78% up but on the negative side, it's total borrowings grew 22% in 2016 to 88 billion yuan. rishaad: in fact, we have a note that says they are just above par here. that tells us a lot about confidence. >> analysts are very positive actually. rishaad: let's bring up this chart, #7134. it has beenn see, hitting record highs. this is not the most updated par, sout it has passed analysts are relatively positive about kaisa on the equity side. saying long-term institutional investors might come back after some time because shares were suspended for two years. side, people were very positive as you can see from the bond prices. some of them are saying it is because after rounds of investigations, the company might be the most clean property developer among the real estate spac

the center of a real estate scandal, telling parliament he received a donation from prime minister shenzhenobbied by his wife. speaking under oath, he said handed an envelope containing $9,000 during a visit to a kindergarten operated by the nationalist group. a spokesman has denied the allegation. china's permit has told a story out -- australian lawmakers his country wants peace and stability to boost economic growth. he says pieces china's tradition and it does not seek to dominate. he said was countries should stand together against protectionism. let's check in on the markets across the asia region. seen a close out on the nikkei around .2 of 1%. it was a bit of a choppy session coming through in that region but also the hang seng index flat in late trade giving up some of its earlier gains. the a sx 200 and will come up i .4 of 1% as a result of rebound coming through in commodity prices which gave us solid boost and generally the risk aversion sentiment did fade away after that weakness that we saw across the region yesterday. you also had safe haven assets being dumped. the yen and

shenzhen and shanghai both down slightly. ♪ caroline: i'm caroline hyde.s is "bloomberg technology." coming up, google's advertising crisis goes global. big brands in the u.s. join the u.k. in the backlash over terrorism. fitbit turns 10, the ceo reflects on the early hypergrowth and the recent troubles facing the company in its turnaround efforts. the senate votes to nullify fcc broadband privacy rules. what that means for internet giants and your data. google's advertising crisis goes global. it began with an investigation by the london times newspaper, which found that some ads ran with youtube videos promoting terrorism and anti-semitism. the guardian newspaper -- even the u.k. government pulled display ads from google's display network and youtube. then wednesday, the boycott spread across the atlantic, with at&t, verizon, johnson & johnson, halting spending on ads, and youtube as well. google tried to head off the backlash this week with updated policies, but eric schmidt told people that google cannot guarantee that this will not appear that are con

greenland, ocean wide, shenzhen, cg. so we believe the capital will continue to come. interesting. we did see transactions, quite a few, that were canceled in 2016 as well. why do you think there is such a political scrutiny on chinese investment in the u.s.? whyhere a common thread by some of these deals have been solved by regulators? marc: i think the larger, higher profile transactions that have not gone through, i think, are to your earlier point, a result of the restrictions being placed , deals overutflows $1 billion, as we know, are subject to much higher scrutiny. so, that will continue. don't forward. >> i was looking through also at some of the data that came along the the report and it shows top five cities are new york, san francisco, l.a., chicago, seattle. no surprise. almost half of that some of the money was poured right here in new york city. are they looking maybe perhaps this year at second-tier cities? is that on the radar for the chinese? marc: interesting enough, the chinese are invested in 35 to yourn the u.s., but comments, 46% of capital to ne