francine: let's get the latest with stephen engle in tokyo. do we know about what this missile was and what it means for the advancement technologically of where north korea is? is most likely not intercontinental ballistic missile back to reach the united states or guam as has been threatened by kim jong un. it was most likely an intermediate missile that flew over the japanese northern island before falling apart into the pacific ocean. it's an unprecedented act. there's not ame, lot of panic that i've seen in the few hours that i've been here in tokyo flying up from hong kong. the national security council has already convened a second meeting of the top ministers and shinzo abe's cabinet. they are discussing their options. not much panic. the markets were down a little bit early on and a noted economist was saying that in past years if there was this kind of missile incident, there would be a three or 4% selloff in the nikkei. not so much, with only half a percent down on the nikkei. tom: stephen engle, good morning. what is the distance f

stephen engle files this report from tokyo. ephen: shinzo abe twice converging meetings of his security council following what he called the unprecedented, grade, and serious threat from north korea come which fired what is believed to be an intermediate range ballistic missile over the northern island. speakingister abe with president trump for about 40 minutes and also calling on china and russia to take action. alsoouth korean president ordering a show of force against north korea with four f-15 fighter jets conducting drills. china saying it does oppose north korea's missile and nuclear programs. however, it also went on to say that it called on the relevant countries taking part here to stop provoking each other. threats and sanctions, beijing says, won't solve the issue . it has to be resolved through dialogue says china. u.k. premise or theresa may is on her way to japan on a previously scheduled trip. she says the missile test on north korea was a reckless provocation. stephen engle, bloomberg news, tokyo. vonnie: the fi

i want to bring in stephen engle from hong kong. good morning to you. would you pull out in terms of highlights from this report? stephen: when you look at the wechat numbers, 963 million. if you add another social media platform, it is more than one billion users. they are doing better at monetizing that user base in to drive mobile gaming and making an ecosystem for that. we saw mobile gaming revenue for the first time surpassed that of desktop gaming. that is always been there juggernaut mobile gaming. ,the internet added value services makes up about 71% of tencent's revenue. it is moving in the mobile honour ofause of kings has been growing. 51% of users are female, so they tapped into that efficiently. it is a really interesting story. -- can accompany this large the most heavily weighted stock in hong kong. how can a company that has grown so large still post such incredible numbers? the net income surpassed estimates by 35%. revenue, the fastest in seven years. kings rollingof out in europe in the u.s. later this year. how would you describe ten

let's go to stephen engle who has been monitoring this speech for us. it?ou make of it is in some ways quite a turnaround in terms of his position on this war. this is pretty much the first major speech he has given following the exit of steve bannon, who was, of course, in opposition of added troops and afghanistan. defense as though his secretary, rex tillerson, and h.r. mcmaster all support a greater influence are greater troop numbers in afghanistan. they seem to have won out. it is interesting. donald trump did not necessarily go off script from what i could tell. he stuck to the script and made pointed remarks about how he sees america's role in south asia and afghanistan. speechted the interestingly with comments referring to the division at home. he was quoted as saying "we cannot be a force for peace in the world unless we are at peace at home." he made a number of different points about the war in committing not specifically to a number of troops to go into afghanistan in addition, somewhere between 3000 and 5000 rumor. he says they will not give

from the northeastern chinese city of dalien, i'm stephen engle. watching. ♪ ♪ is this a phone? or a little internet machine? [ phone ringing ] hi mom. it makes you wonder... shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. [ laughing ] so all you pay for is data. see how much you can save. choose by the gig or unlimited. call or go to xfinitymobile.com introducing xfinity mobile. a new kind of network designed to save you money. announcer: "brilliant ideas," powered by hyundai motors. ♪ ♪ ♪ >> he has famously said that announcer: "brilliant ideas," >> damian ortega has said that the sculpture is action, not object. that, i think undepi

from the northeastern chinese city of dalien, i'm stephen engle.ing. ♪ ♪ ♪ francine: joe kaeser is a rare breed of chief executive who has dedicated his entire professional life to a single company. he was a young business graduate when he joined siemens in 1980, moving up the ranks and around the world for a company described by angela merkel as a flagship of the german economy. siemens truly powers modern life, making everything from turbines and health scanners and factory equipment. joining me, chief executive officer of siemens joe kaeser. thank you so much for speaking to bloomberg. joe: sure. francine: can you tell us a little bit about that first day you started

let's bring in stephen engle and hong kong. at are the key takeaways for you from this set of housing data? stephen: the key takeaway is that authorities want to cool the bolt before it comes a bubble. tier one seen the cities, beijing and shanghai, impose strict borrowing curves and other proper he related curves and we have seen those of white. month over month gains turned into declines for prices in shanghai and beijing. months, butple of what has been underpinning the property markets of late has .een the third tier cities the data suggest 56 out of the 77 cities have seen home prices range, 60 the previous months. a lot of those reversals are coming from the third tier cities which are starting to impose the property curves of their own. terms of the impact on development, this is about rebalancing china and not allowing an entire implosion in some of these countries. what about these developers? what are we seeing? ephen: that is the dilemma of any regulator in any industry. ofy want to keep the support elements in the pr

stephen engle is in tokyo. post-brexit trade deal is going to be a hard sell. hard sell right now. the japanese are very -- notoriously very polite. plan foray peaches her a proposed post-brexit fta with japan, she wants to model it after the soon to be completed in you-japan trade deal, and the observers we have talked to say maybe the japanese are not too impressed because they cannot necessarily figure out why they would leave the common union there. if are talking about japanese saying the nail that sticks up gets hammered down, they're wondering why are you sticking out and standing up from the e.u.? david cameron himself said the add-japan trade deal would trillions to the u.k. economy. she has an uphill battle. yvonne: and also dealing with cultural side of things in passive aggressiveness. stephen engle join us live from tokyo there. can see previous interviews andwatch live at top also become part of the conversation by sending us instant messages during our shows. this is for bloomberg subscribers only. check it out at tv . this is bloomberg.

stephen engle is in tokyo.ow is this thing interpreted north korea remaining defiant and saying it is a step to containing qualm -- guam? here inhere is a calm tokyo. thatorth koreans fired missile around 5:06 a.m. local time. there were alerts but people did not know what they were for -- was it an earthquake coming? act with unprecedented a missile flying over a major island of japan. i believe other tests have flown over in the past, but this struck a nerve because it flew over the northern island of hokkaido, breaking into the pacific ocean. those lines coming from north korea, their news agency saying, it was prelude for further tests. really aiming to the south and guam. apan is rattled, but there is quiet calm in what the next steps will be. prime minister shinzo abe did convene two emergency sessions of his counsel to discuss options. hase minister of a -- abe been a proponent of increased defense spending, he has done that every year since taking office in 2012. he wants to change japan's pacifist cons

stephen engle joining us with a preview. are the property curves fighting? o bite. insaw a month over month june, at least, in shanghai and beijing. we bigger question, which will get into a little bit, it is what is happening in the second and third tier cities. chart.bring up this we got a massive data dump today. not only did we get the 70 cities to by the government, but individual cities, assisting x-subsidized new e homes. i want to boil it down to the month over month. that is where we can really see the changes, and whether those curves are indeed biting, because the year-over-year numbers, first of all, all 70 cities in june for price increases in new homes -- that is because of the base effect from last year. if you look at the month over from may, 60e, up cities. and that is where we are seeing and of the gains in second third tier cities. as i said, beijing and shanghai sought prices fall -- saw prices fall. existing home prices in beijing , so 1.1% month over month those curves are definitely biting, and those buyers, who are friendly, are moving

i want to bring in stephen engle from hong kong. good morning to you.t would you pull out in terms of the highlights from this report? numbers,ok at those 963 million. social mediaother platform, it is more than one billion users. they are monetizing that user and to drive mobile gaming making an ecosystem for that. foraw mobile gaming revenue the first time surpassing the cap from the desktop gaming. that has always been their bank, mobile gaming. tencent up about 71% of revenue. honor of king has a lot of revenue. 51% of users are female, so they cap into that client. it is a really interesting story. everybody here is talking about how can accompany this large -- you mentioned this is the most hobbit -- most heavily weighted stock in hong kong. how can a company that is growing so large still post incredible numbers. numb -- numbers? the fastest in seven years. it is rolling out in europe this year, how would you describe its input outside of china? stephen: it is still pretty much a chinese leader. they do want to roll it out to other markets. they

territory.let's bring in stephen engle . where do we stand right now? u.s. asked if there was an attack on guam, was that part of the u.s., and he said absolutely. reporter: absolutely glom is part of the u.s. 1980's.there in the is about 170,000 citizens in addition to 7000 u.s. military. a lot of people think of long as a floating air carrier, but no, it is an island full of people. the only difference is they cannot vote for president. it's a u.s. territory. they have u.s. passports. this is what jim mattis had to say when asked by reporters about his assessment of the situation. i don't need to be trite, but there has been a war of words so far. says it could escalate into were very quickly. that's called war. if they shoot at the united states, i'm assuming they hit the united states. i'm assuming they had that and then it is game on. this follows what we heard from cia director mike pompeo and what we heard from h.r. mcmaster kind of ratcheting down the rhetoric we have had from last week with donald trump talking about fire and theory -- fury and bein

stephen engle has more from tokyo. >> japanese prime minister shinzo abe has been in business -- busy that north korean test missile launch over hokkaido. he has been having meetings with several world leaders as well as welcoming theresa may on her visit to japan. all leaders agreed with abe that more pressure needs to be applied to north korea to end these threats. any see china as having a key role in pressuring north korea. the un security council also seeing it is strongly -- also saying that it strongly condemns the missile launch and they are calling on pyongyang again to end their nuclear ballistic missile program. kim jong-un is not backing down. instead, he said the latest test was a meaningful prelude to containing the u.s. territory of guam. the chinese foreign minister did say that beijing is working with the u.s. -- the u.n. security council to contain the threat, but they do not favor unilateral sanctions on north korea. have the sanctions could an impact on china. with more on china, we have alexander wolfe. think you for joining us. how do you solve the problem called

usa: stephen engle bring in the latest. a guest is here with the market view of all of this.ood morning to you. the we look at the commentary in the last one in four hours, are you surprised to see the market having rebounded in the u.s. session and relaxed in the european session? kim talking about how this could be a prelude to containing the american territory of guam, and yet the markets are higher. i think there is a sense at the moment that where the world of rhetoric rather than action. >> is that we didn't get more fire and fury from president trump and a slightly more measured response. it's a perfectly reasonable supposition, yes. manus: the one thing everyone has been banging on about is dollar-yen, swiss franc, and gold. as an asset manager, do you sit back and reflect, i do want some protection, but i want protection in a liquid form. there is more liquidity and gold. is there any consciousness about what is being protected? stephen: i think it depends on your attitude toward risk and also how you see events developing over the next 12-24 months. i think the inst

. >> that was the chairman speaking with stephen engle.eck of the latest business headlines. a government order in the philippines. they say they will operate in manila, despite the told to temporarily stop. the says they will appeal decision. the philippines says they have violated order for applications. uber says that it expires this month and is under review. they have exclusive talks for new backers of a deal that hangs on a benchmark. the money would come from softbank and equity firms. contribute to the resolve of the benchmarks. >> we could be looking at the end of an era. is over,that this following dick's sporting goods. we cut on profit forecast has sent shares tumbling. sales include nike, under armour , and lululemon. >> indeed. >> here are the stories you need to know on daybreak. terminals,able on mobile, and on the avenue. get the news on industries that you care about. this is bloomberg. >> there is a clear line they are going to be looking at and will the cost way what we would and they will move to something easier. >> t

thank you so much, stephen engle.o come with asia's first major market open just moments away. yvonne? -- we: hong kong trades are many know that premarket trading has been canceled. flights from hong kong have been canceled. the grim view outside, asian futures are starting firmer. u.s. markets are catching the optimistic buzz in the post bannon-trump era. watch out for japan's preliminary reading of august. in sydney, we are keeping an eye on earnings. kobe to show you some of the stocks in focus. hoping to show you some of the stocks in focus. this doesn't seem to have a trend continuing. casino operators are looking toward domestic demand to drive growth particularly in sydney as well as the gulf coast. they see less high rollers on the international scale. watch for japan, tobacco in tokyo. -- japan tobacco in tokyo. they are looking to buy the second-biggest tobacco company. this is after the acquisition of an indonesian cigarette company .ack in early august macro viewve a big of the optimism, we have some micr

stephen engle joining us. this big giant. what stood out?nd posted these numbers is what everybody is chatting about. revenue, some 35% higher than the median forecast. doing, theye really have been a juggernaut with online gaming. they are moving more into mobile of king'sh this honor game which has more than 200 million users. platform, ong this top of which they have more than one billion users. helps create kind of an ecosystem on the mobile. and gaming. that helped drive a 54% surge. in the quarter, for the first time ever, mobile gaming death top forssed the first time. number.way sales rose 59%. this is quite an impressive set of results. shery: especially honor of kings. i still haven't tried it. have to try it. from earnings, we are also hearing tencent will be hugeting in this privatization. >> this is part of what the chinese leadership has always talked about. the telecoms sector is going to be the next testbed for carrying out further privatization. infusing private capital and expertise into these state owned sectors. willhangh

we are joined by stephen engle. he has the complete story on this. there are some effect it's.asing of the rhetoric. reporter: we have a lot of rhetoric coming from the white house late last week, talking about fire and fury against -- north korea. also he talked about the north korea -- the u.s. military being locked and loaded to strike the north. these are worrisome words coming from the white house. that, according to a chief advisor to the south korean president saying we are not used to getting these kinds of comments from the president of the united states. china has echoed similar sentiment. i will talk about that in a second. also, to members of the white on sundayf appearing morning talk shows in the u.s. are camping down that rhetoric. sayingthe cia director he is seeing no intelligence that would indicate we are on because of a nuclear war. i paraphrase. also, h.r. mcmaster says we are not closer to war than a week ago, but we are closer to war than we were a decade ago. the evidence does not suggest we are any closer. the united states has not advised u.s. citizens

we are joined by stephen engle from tokyo and on the phone is .aniel tenenbaum he provides regulatory crisis management support to global financial institutions. you're on the ground. i want to hear what's happening with you first. what has happened in the last few hours? has convened his second emergency national security council gathering with his ministers of defense. to discuss their options. this after shinzo abe had a 40 minute conversation over the tone with president trump calling this a grave threat coming from the north koreans. shooting intermediate range ballistic missile. around area north or pyongyang that flew over japanese soil across the northern island of hokkaido early this morning before breaking apart and falling into the north pacific ocean about 750 miles east of japan. in general and has conducted more than 80 missile or nuclear tests since becoming the supreme leader. that is more than twice as many as his father and grandfather did. he is ratcheting up the tension. here on the streets of tokyo a bit calm her. alix: just highlight what you are talking about th

engle witho stephen the latest first word news headlines. >> currency traders may experience some chopped yellen and mario draghi speak at jackson hole, bets on a weaker dollarand combined with a thin liquidity on friday afternoon in august could cfx markets and portable to frenetic moves as policymakers gather. policy chairman told us week inflation will dominate the rate decision. >> we have this small puzzle of why was in inflation rising. puzzle, whya bigger is inflation falling? if inflation keeps falling, it would be nutty for them to raise interest rates. >> the struggle for emphasis sees founders regaining control, forcing the chairman and three other directors to leave the board, installing someone in his place. the ceo was one of the directors to resign. shares rose 2% on the news, inosys has been struggling the tech industry it helped to create. google is policing you to more tightly, targeting videos it determines crosses the threshold for offensive content. buts not removing them, adding warnings and disabling advertising. google outlined the move in june amid the debate on f