the benchmark, let's get back to beijing where stephen engle this any by with jb morgan ceo and chairamie dimon. stephen: we are back at the china global summit. we welcome in our listeners on bloomberg radio. jamie dimon, thank you so much. we were talking when we went into a break about the sustainability about the u.s. recovery. the possible inverting of the yield curve or the 10 year treasury going above 3%, do you still think this is a long-term sustainable recovery? jamie: somebody asked me once the odds of a recession, i said 100%. the question is when. right now the american economy is strong. more people are going back to work. houses in short supply which is a plus for the economy. the capital markets are wide open. much less leverage in the financial system than the past. it looks like 2007. consumer balance sheets are in very good shape. the way to look at the recovery, looking at the yield. 20% growth over nine years. the nine years is very good. the 20% is very that. it should have been 40% over a short time period. -- thisthe reason why may have a ways to go. maybe a ye

ramy: the future in question, stephen engle, thank you very much. let's switch to financials. to leading banks are in the news today. and the other expect to face charges in australia over a share placement from three years ago. we have the very latest in sydney. details.y out the >> it is a fast-moving story. details are still stand. what we do know is that nz bank said these allegations on the proceedings that expects -- innospec's -- it inspects -- it in 2018.o face deutsche bank said they expect to face charges over displacement and we know the other two join managers on this sale where citigroup and jpmorgan. it is not clear what the allegations will be detailing.

earlier, stephen engle spoke to jpmorgan's head of asia-pacific -- to thes some big risk u.s.na as this continues. ware do not expect a trade to actually happen. we do expect trade friction to continue, and this is going to be one of the most important issues facing the global economy. >> she also said that the trade measures u.s. might take against china could slow exports from china to the u.s., slow down their gross domestic product, so it seems like there is definitely some incentive for both sides and china to avert the worst that could happen which is no deal at all and a full-blown trade war. does beijing actually want? is it possible? >> what they would really like is to just back off. they want the u.s. to just drop this big terror threat. the head of the pboc had an interview recently said this be dealte plus must with russia. it is a long-term structural issue. own specificir demands. they want the u.s. to stop its investigations in china's acquisitions of sensitive u.s. technology. they want them to address this on one of china's biggest telecommunications companie

let's head to the summit in hasing where stephen engle a guest you can provide some unique insight. away. stephen: good morning from beijing and the jpmorgan global all china summit. our guest this morning ahead of -- we are going to be speaking to jamie diamond. general raymond. you are the senior adviser to jpmorgan, retired four-star general. the 38th army chief of staff. last year at that time, you said it was probably one of the most sensitive geopolitical environment the had ever seen. would you agree today or has the tension decreased a bit on the korean peninsula? >> tensions decreased in whenever you have a discussion about having talks, people may be now are taking a little bit of a deep breath. we are not out of the woods yet. this is just the beginning. it is certainly much better than we were last year, rattling sabers at each other. this is a positive step. we have to wait and see. there is a long way to go. stephen: what do you think caused the about-face from kim jong-un? >> the north koreans have always been very strategic in thinking through these issues, and he bel

emily: stephen engle, thanks so much for joining us.es it for this edition of "bloomberg technology." friday we will be covering earnings from another chinese text giant, that would be alibaba. we are livestreaming on twitter. in news out 5:00 p.m. york, 2:00 p.m. in san francisco. that is all for now. this is bloomberg. ♪ an afternoon rally sputters for a second day. >> the white house has seen a positive start as the u.s. details its demands. trump changes his story on stormy daniels, admitting he did repay #any. >> and not cool. tesla tumbling after you unmask had

we want to head to hong kong and bloomberg's correspondent stephen engle. xiaomi was once hailed as the next steve jobs, then things went south. what is driving this turnaround? stephen: xiaomi was in equitable -- an incredible success story when it was founded in 2010. i remember interviewing the cofounder, one of the first foreign journalists to get a look in this booming company. we had no idea it would become this large. they were a victim of their own success. in late june, something of a rockstar, being compared to steve jobs. he said he did not like to be compared to steve jobs, he said he was more like jeff bezos. either way, they have an overaggressive expansion plan. by hat -- they hired hugh go viral away from google. they really expanded very fast. cheaper competitors came along, and they lost their way in little bit. growth went down into the single digits. late june has has turned things around of this ipo, which could be listed in hong kong this year. they went upper end as well, recapturing some of the blistering growth they saw in the early

we went live in hong kong on thursday where we were joined by bloomberg's stephen engle. incredible success story when it was founded in 2010. i remember interviewing the cofounder in 2012, one of the first foreign journalists to get an inside look at this booming company. we had no idea it was going to become this large. they were a victim of their own success. one became a rockstar compared to steve jobs in china. actually, he said he did not like to be compared to steve jobs but rather jeff bezos, but anyway, they had an overaggressive expansion plan. fromhired hugo barra away google. they expanded very fast. some cheaper competitors came along and stealing their business model of online distributing of handsets. and they lost their way a little bit. the growth went down into the single digits. they have really turned things around ahead of the ipo, which could be listed in hong kong by june. he spread into india. number two in india. they went upper end as well, recapturing some of the blistering growth they saw in the early days. emily: how does this set up the hong

emily: that was benjamin fuchs speaking with stephen engle.ds a shareholder meeting, new questions are raised about the power held by its board. we will discuss, next. later, we sit down with john and patrick and what they have to say about the possibility of going public. this is bloomberg. ♪ emily: this is "bloomberg technology." chang.ily let's return to our top story. amazon holding its annual shareholder meeting in yet of -- seattle. -- some wish to separate jeff bezos ceo and chairman roles. there are protesting that should be more minorities on the board. amazon initially rejected the shareholder proposal that they interview more diverse candidates, and there was an amount of protest, and the ok,any came back inside, we will do it. is it going to have an impact? >> i applaud any company that takes steps in the right direction. moving toward having a more diverse board will be positive for the company. i think it sends a great signal to other companies. the hope is that others follow, but let's be honest, there is still a long way to go.

yvonne: let's get to stephen engle, following developments of this back and forth. hard to track what is going on. is there more clarity or more confusion? stephen: a little bit of both. this is what i predicted on friday, that the chance for a summit was the same as thursday, even though between those days, trump had canceled it. this is maybe modus operandi for trump, throw confusion to get clarity and to get a consensus on what they are going to deliver from the summit. if you don't have deliverables, why have a summit? right now in advance team is in north korea for talks to find those deliverables. the white house said on saturday another team is going -- perhaps the same team -- going to singapore as well in case it does happen. let's parse the words of the tweet from donald trump over this weekend. you talked about clarity. it is not clear what he actually means. he talks about the advance team, but he also talks about north korea has a brilliant potential and will be a great economic and financial nation one-day. kim agrees with me on this. it will happen. a

emily: that was bloomberg stephen engle from hong kong.a's chairman promised that his chinese e-commerce giant would create one million u.s. jobs. we spoke to alibaba's vice chair to find out what a trade war would do to that pledge from the milken institute -- milken global conference institute. tit-for-tat trade tactics will cause a retaliation. china, they have ariffs ont soybeans which will hurt american farmers. we arein a context where seeing a huge market in china. it is ironic that the was administration is doing this because there are a lot of consumers in china, 300 million. the president in china -- the chinese president in dollars last year said that china would import goods. because of the trade war, they put down the gauge because of retaliation. this is going to hurt everybody. it is going to close off a lot of opportunities for producers in the united states. emily: jack ma said they plan to create a million jobs in the u.s. but warned that it may not happen if a trade war moves ahead. are you pulling back on that -- will t

emily: that was benjamin fuchs speaking with stephen engle.ing up as amazon holds a , shareholder meeting, new questions are being raised about the power held by its board. we will discuss, next. and later, we sit down with john and patrick and what they have to say about the possibility of going public and when. this is bloomberg. ♪ emily: this is "bloomberg technology." i am emily chang. let's return out to our top story amazon holding its annual , shareholder meeting in seattle. the event has raised some concerns. separatepushing to jeff bezos' ceo and chairman roles. others are protesting that there should be more minorities on the -- should be considered for board seats. on publicmen to serve and private boards, and amazon initially rejected the shareholder proposal that they interview more diverse candidates, and there was an amount of protest, and the company came back inside, ok, we are going to do it. is it actually going to have an impact? >> well, i mean i applaud any , company that takes steps in the right direction on this topic.

we begin with stephen engle's exclusive conversation with nicolas from j.p. >> without a doubt, there will be additional volatility as a result of this. one thing's for sure, we will probably have lots of our u.s. allies in negotiating what the next move is at this point. it is going to generate a lot of speculation about what will happen to the supply of oil. i do not think it should be dramatic. it depends on what kind of sanctions, how it plays out. it is not like it has been telegraphed either. this is something the market has been looking at and assessing and trying to play it forward. while there will be some short-term volatility, it all determines on how it plays out. >> do you see in the asia-pacific, a geopolitical risk rising now? >> i do not think it is rising. if you look at what is happening in north korea, south korea, i think that is quite significant. i was in south korea last week and i had a chance to understand firsthand, what is going on and what is the feeling from the south korean side. they have quite a bit of insight. one of the thing

stephen engle is standing by with the man who oversees the bank's asian operations.rlwind day on day one, is nicholas are losing, the chairman of asia-pacific for jpmorgan. thank you for having us here at your summit. what is your gauge of investor sentiment given the 2000 plus delegates and participants you have? we have financial normalization going on, but geopolitical risks and trade tension between china and the u.s. what is it you're reading -- your reading? >> people are willing to understand and learn more about what's happening. people attending today are more focused on what's happening around china and trade tensions play a key role in everything that happens from a geopolitical point of view affecting china. is an important thing investors are trying to gauge. they seem to be optimistic from an economic point of view, whether it is global, domestic, asia-pacific everybody is looking at what's coming. is there anything that may affect investment opportunities and gauging what may happened? >> the shop today is trump pulling out of the iran nuclear accord.

stephen engle with the very latest machinations on geopolitics.oining me as my guest host is las olsen, chief economist at danske bank. when you listen to that kind of reporting, when you read the tweets from last thursday, it's , these levels of political machinations, you as a chief economist, how do you talk about these to your clients and to the team? las: you just kind of go with the flow. you cannot choose economic models to predict what donald trump is going to tweet tomorrow. you can only say, now this happened and we have to respond to that, and maybe try to look at what happened in the past and what will be in the interest of the parties concerned. clear now that we've seen this twitter politics going , your more than a year that there will be harsh statements and retractions and new harsh statements. it is sort of a cycle. then try to see what is the end game. compared to where we were maybe half a year ago, political risk from the situation with north korea and everything else, it is at a better place now. that with theike trade war fe

david: thank you so much, stephen engle with the latest on trade.ly in a natural, tennessee -- nashville, tennessee. he said mexico will be paying for the wall, because they do nothing to help us. we are talking about nafta next. justin trudeau says canada would rather see nafta die, then accept certain hartline u.s. -- hardline u.s. decisions. he will only sign a deal good for canada and also is looking to comprise. >> we continue to believe there win-win-win opportunity for canada, mexico, and the u.s. on improving and modernizing nafta. we're continuing to work constructively with the u.s. and mexico. powerful lever to create opportunities and jobs, and growth in our economies. we understand there is anxiety about trade out there in large segments of the population that don't feel it is work -- it has worked very well. that is what we have been pushing hard to make a case and demonstrate that we can find that weive trade deals demonstrate issues like protection of the environment, gender equality, workers rights, they are integral in creating the

fori: stephen engle there us with the latest. let's get more on the market reaction. pretty measured, particularly in asia. mark cudmore is in singapore. our mliv strategist. i am sure you are watching south korean assets, but how else are you seeing this play out? a fairly measured reaction by the end of u.s. trading and in asia. mark: absolutely. there was a knee-jerk reaction upon the headline carried we saw that in korean and df, korean equities and the yen. overall, this is not much of an out -- market story. most investors were suspicious of june 12 and now it is canceled, many are suspicious it won't go ahead in the future. not much has changed in the game at all. it is not the big market story. other bigtoo many market teams dominating and this north korea thing is tithing us over until we get back to europe , which is at the forefront of markets this way -- week. for turkey and italy. rishaad: with that in mind, this singapore dollar being a spanish -- and the italian populist government roiling markets there. mark: absolutely. singapore is proving itself a h

stephen engle's with me having a look at this. is this clarity? is this more confusion? is this more confusion with clarity? stephen: both, yes, all of the above. that will be the pattern for the next 15 days until june 12 comes around. we don't know if it will be in singapore. it seems it is back on. let's see the tweet from donald trump. you have to read between the lines and parse through his verbiage. sometimes challenging. he says there is an advanced team in north korea, making arrangements for the summit. rishaad: does he referenced the previous cancellation? stephen: no reference to last week that he did cancel it, but what is interesting is this line. seems like a throw away. but it is not necessarily. he believes north korea has brilliant potential and will one day be a financial and economic reaction. the last line is the interesting one. he says it will happen. is it the summit or is it the economic boom that he's alluding to? a lot of people are referring to it will happen as the summit will happen. there are 15 days to go. i think we will gyrate back and fo

i am stephen engle in beijing with continuing exclusive coverage of the jpmorgan china summit.bout the ongoing u.s.-china trade spat and the ramifications on the global market and the economy from trump's pulling out from the iranian nuclear deal. david: lots of stories coming out. the oil story. you also have live pictures. we will be getting those about this trilateral meeting, shinzo abe, moon jae-in and the chinese talks., li keqiang, for is could make the argument ahead of a big summit with donald trump and kim jong-un. just looking at live pictures in japan where the leaders are. 43.lar-yen at 109. the philippine trade story should be out at any time. we will get an idea later on when it does come out. this: just watching dialogue going on with li keqiang and prime minister shinzo abe and president moon, you are also wondering how much of the decision of the u.s. withdrawing from the iran deal affects the upcoming summit with north korea. futures pretty messy. we got that sentiment of uncertainty overnight. hong kong about to open later. futures flat at the moment. we are

bloombergs stephen engle caught up with the lenovo cfo and asked in thets presence smartphone market.we are aware we did not do as well as we expect. nevertheless, when you look at the business, i think generally, the numbers show a decline, but ,f you look at the core market we see a top line with profitability. north america, we see significant growth. emily: twitter has advertising inon a bid for transparency. advertisersire running political canteens to identify themselves and certify they are located in the united states. candidatespolitical to identify themselves and certify they are located in the united states. later, we hear from bloomberg's head of europe about the company's operations in paris. will discuss plans for fatalg tests after a accident in arizona last march. >> for us, it brought home the idea that safety has to come first. we haveat tragedy, grounded our autonomous fleet. that was a decision we made. >> any sense of when you will start driving again? brexit will be in the next few months. -- >> it will be in the next few months. ♪ retail. under pressure like nev

jamie dimon spoke exclusively with bloomberg's stephen engle after j.p.possible china summit in beijing. his outlook for the u.s. economy remains up. >> more people coming back to work. houses in short supply. that is a pleasant the economy. the capital markets are wide open. there is much less leverage in the financial system than in the past. banks have twice the capital, twice liquidity. consumer balance sheets are in good shape. the way to look at the recovery is look beyond the year. we had 20% growth over nine years, and the nine years is really good, the 20% is bad. it should have been 40% over a shorter time, and that's why wages did not go up and all these things. it looks like this may have legs to go, one year, two years, maybe more. remember, the rest of the world is doing better. japan 1.5%, europe 1.5% approximately. i don't know. it is 1.5%. the last 10 years it was 0%, so that is a positive. i hope it will continue. the fact is, america is in pretty good shape. you have some benefit of regulatory reform, tax reform. i think those things wi

was a former pboc advisor speaking to stephen engle in beijing.g up next, we will speak to the australian finance minister about tax cuts. this is bloomberg. ♪ betty: good morning, i am betty liu in new york. haidi: i'm haidi lun in sydney. budgetia's laid out its with a deficit forecast of $10.8 billion. the government is willing voters with the promise of tax cuts and a path to its first surplus since the global financial crisis. here is what the australian treasurer scott morrison had to say. room forson: there is our labor market to expand and grow in that is what is boosting revenue over the shorter term. priceitial commodity improvements we have seen, we have had cautious forecasting. upliftger-term revenue is the sheer fact of the growing in strength and economy. haidi: paul allen is standing by for us. paul? paul: a very warm and sunny here. budget the svevnthenth and this is the warmest received i have remembered. the budgeted forecast for 2019. the return to surplus a year later of $2.2 billion in tax cuts coming as well. mediumr year fo

let's begin with stephen engle's exclusive conversation with the jpmorgan asia-pacific ceo. >> thereal volatility. one thing is for sure, we will probably have lots of u.s. allies negotiating at this point, what's the next move, what can we do? it is going to generate a lot of speculation about what's going to happen the the supply of oil. i don't think it should be dramatic, it depends on what type of sanctions and how it plays out. it is not like it hasn't been telegraphed. this is something the market has been looking at and assessing and trying to see how to play forward. so while there will be some short-term volatility, it depends on how it plays out over the next few weeks or months. >> in asia-pacific, do you see geopolitical risk rising now? >> overall, i don't think it is necessarily rising. when you look at north korea, south korea, it is quite significant. i was in south korea last week, i had a chance to understand firsthand what's going on and what is the feeling from the south korean side. one of the things that surprised support thatunt of the south korea population h

betty: that was lenovo's cfo wong wai ming speaking to stephen engle. recap some of the headlines we have been getting the last several minutes or so from kc na on north korea. really sounding very contrite here, saying they are willing to meet with the u.s. at any time and some of the latest lines coming out saying the current situation reflects a desperate need for a summit. clearly it looks like the north koreans were taken by surprise from this letter from president trump. haidi: it's very interesting because it almost seems a little contrite saying he regrets his cancellation saying, very interesting and somewhat puzzlingly, that they really hope that the trump model could resolve these models. i don't know what the trump model really refers to or with the details are, but saying there is no change in north korea's will to do the best and willingness to give it a chance. this is from the korean central news agency citing the foreign minister. betty: that's right. talking about the trump model, it's unclear what the trump model is to resolve the iss

bloomberg's stephen engle caught up with the lenovo cfo and asked about its presence in the smartphonearket. >> we are aware we did not do as well as we expect. nevertheless, i think we saw a solid q4 this year. when you look at the business, i think generally, the numbers show a decline, but if you look at the core markets, latin america, we see top line with profitability. north america, we see significant growth in units. emily: twitter has rolled out stricter rules on advertising in a bid for transparency. this ahead of the midterm elections in november. the company will require advertisers running political ad campaigns to identify themselves and certify they are located in the united states. coming up, avoiding the valley. where to look for stable tech investments outside of the obvious. int is next, and later paris, we hear from bloomberg's head of europe about the company's operations in paris. and we will hear about discussing the plans for driving tests after a fatal accident in arizona last march. >> for us, it brought home the idea that safety has to come first. as it relat

an exclusive interview with stephen engle who joins us from the jpmorgan summit. stephen?ithen: we are in beijing the former prime minister of the u.k., tony blair. you were the former special envoy to the court on the missile -- met ash quartet on the middle east. what is your first read on the withdraw of the united states from the iran nuclear accord? tony: my preference would have been the same as the u.k. and french governments, that we kept in the deal and tried to improve it. i think we have to understand what has really happened here. there have always been to concerns about iran in the region. one is their attempt to develop nuclear weapons capability, the other is what they do through their proxies like has the law and steve -- destabilize the region, causing turmoil through the middle east. in a sense, what the obama administration did in 2015 was dealing with those issues. the idea is you managed to create a nuclear deal, the money that was freed from the relief from sanctions was going to be used for the iranian economy, the iranian people and essentially, wha

and thank you to stephen engle. let's get to the first word news with mark. the u.s. planays to slap tariffs on auto imports would violate wto rules. -- world trade organization rules. washington will decide by the start of next month whether to impose duties on steel and aluminum and the eu says they still hope to find a solution. would obviously be against the wto and it is difficult to imagine, to create any sort of threat to the national security, so it is very difficult to understand. there is a long journey. his often carney says criticize policy guidance is more important than ever as brexit enters its final phase. spoke in london to explain why his message worked. his deputies told bloomberg the bank does not have a communicable -- communication problem although forecasting has become more difficult since the brexit vote. is saidice department to have opened a criminal investigation into whether traders are manipulating the price of the coin. we are told the inquirer is looking at illegal actions that could move prices such as flooding the market with fake ord

bloomberg's stephen engle spoke exclusively to some of the region's leading and emerging tech playersincluding tujia's cfo warren wang. tujia is known as china's airbnb and is rapidly chasing the growing number of chinese travelers in southeast asia, japan, and south korea -- outside its home market of china. we asked him about the difference between the two home-sharing companies. warren: airbnb is a well-respected competitor in china as well, but we think we are the number one player in this industry in china. that's one thing. the other thing is we are not just a pure online company. we have off-line operations as well. we have a local team in most cities in china to help these local house owners to run their business. that's, i think, the big difference between us and airbnb in china. emily: on tuesday, facebook ceo mark zuckerberg testified before the european parliament, and he left eu lawmakers fuming over unanswered questions at the end of a hearing that began with a mea culpa over the company's recent privacy mistakes. zuckerberg repeated what he has been telling every audien

let's get to the first word news with stephen engle. orld economy showing signs of stabilizing after a recent moderation with manufacturing activities strengthening for the first time this year. markets three pmi across 40 countries rose to 53.5 in april from march's six month low of 53.3. on advice from goldman sachs and j.p. morgan chase not to bet against the world economy just yet. president trump's fiscal stimulus plans are forcing the government to drive up bond issuance as the fed shrinks its balance sheet. the treasury is boosting the amount of long-term debt it sells to $73 billion. it is adding another five-year sale to his regular calendar, and planning to issue a new two-month bill late in 2018. the political consulting firm at the heart of the facebook data manipulation scandal is shutting down. cambridge analytical says it is filing insolvency proceedings in the u.k., citin what it callsg -- citing what it calls numerous unfounded accusations. they say they are being vilified for policies not only legal, but widely accepted

joining us, bloomberg's stephen engle's. tell us more about the valuation of good doctor.iced at the low to high given the macro situation and the volatility in global markets and maybe the trade friction coming out of china with the u.s. delegation there, perhaps because hong kong is always -- also raising rates with the fed. this is the worst for -- for port -- performance for a tech ipo in three years. traders we spoke to said this is a disappointment and probably a big reason is it -- it is a drag on the hang seng as it goes down toward the 30,000 strike -- 30,000 threshold. it is the number two biggest volume over in the hong kong market today. performer, upod about .3%. the gray market yesterday showed a big pop upwards, but maybe those outside concerns are weighing on it and perhaps they priced it too high at the top-end of the indicative range going in. anna: it raises questions about what this means for the sector. in hong kong for the world's biggest ipo since 2014, how does good doctor set the stage? this could be just a temporary [bleep], because charles lee is

♪ julia: the rest is at the service level of 2018 and what it means for more, we are joined by stephen englealls, and that is end of the second quarter, what is your take on short-term dollar bullishness we are seeing? steven: there is nothing to stop the dollar from going up and i think what we are seeing is the fed constantly reiterating its bullishness on the economy and bullishness on rate hikes. the data of europe is soft and they think the market -- i think the underlying european economy is a soft as they think it is. for now what we are seeing is the market beginning to set aside the geopolitical issues constantly haunted the dollar last year the first couple of months of this year. for once we are focusing on what the fed is doing and what the economy is doing. joe: as he said, there's nothing to indicate the fed is going to slow down or reduce its estimates of the economy. we keep getting disappointed on the datation front, last week was fine but nothing special. what do you make of the data we see lately and does there come a point or inflation doesn't really gather steam that we

our chief correspondent stephen engle, here to break down these numbers.ere the numbers off? >> they were off by 1/3. they beat the estimate by almost 1/3. tencent had been telegraphing they would except pressure on the margins in favor of longer-term growth in new areas like cloud computing as well as entertainment, video and the like, and physical retail to keep pace with the efforts made by alibaba. the quarter did blowout analyst expectations. we are seeing a 61% rise in net income to 23.3 yuan. that beat estimates by almost 1/3. investors had been selling off on this stock since a record high was hit january 23. they sold more than $90 billion of u.s. stocks. they were bracing for that pressure on the margins coming in this march quarter. it did not get that. gain froma one-time its return on investment in the area, like news and video. even with that, the results were strong. let me highlight a few points. growth, profit margin, was more than 50%. we are expecting pressure on the margin. most analysts expected to come in a 47. they are better monetiz

stephen engle is with us. he was with us at the china summit a few days ago. there?oping jamie dimon would give us the scoop but he talked about a coming sooner than later. at least that is what the chairman had said. sooner rather than later. the china summit was a couple of days ago wrapping up. we had the interview with jamie dimon anyone's 100% control of a chinese venture eventually. tiny --china has just reformed its -- rishaad: the american banks is having a tougher time. stephen: i will get to that in a minute. jpmorgan, according to this chinese regulator has put in the application. has said they would review the application efficiently. they will get 51% control of this venture, that would be, if it is approved. ultimate goal, this is what jamie dimon told me on tuesday. >> we want 100% in all the licenses of what we do in the united states. i think that is better for the chinese. stephen: about a year and a half or so, jpmorgan got out of its joint mention -- join venture with first capital security. jamie dimon told me a year ago, he does not like them in

stephen engle be speaking to some of the big players. former hsbc chairman flight.do not want to miss any of this. this is bloomberg. anyou do not want to miss of this. this is bloomberg. ♪ this is bloomberg. ♪ betty: a quick check of the flash headlines at the point. cash profit of $3.2 billion will .ay an interim dividend cash return on equity was 14% with a net interest margin of 2.17%. australia has been under pressure as the world commission examines claims of misconduct. yvonne: a group representing storeowners is opposing walmart's deal with the cart cart.he deal will -- flip considering legal action. the $50e improved billion sale of 75% of the company to a group led by walmart. reports its lowest unemployment rate this century, but will that trigger a change in the fed rate hike strategy? more on that ahead. this is bloomberg. ♪ yvonne: 7:30 monday in hong kong. first major market open soon. betty: 7:30 sunday in new york. closed as were saw, riproaring lehi, the s&p up 1.7 -- 1%. yvonne: you are watching daybreak asia. let's get to first word news with has

stephen engle is live from the hong kong stock exchange for more. steve? it is loud here.our questions, you won a lie. basically, a lot of demand for the stock. stock could 1833. it is now trading at $58, up from the 5480 -- 54.80. it was oversubscribed. as you a company rightfully said, provides online medical consultation. not only that, it provides sales of health care checkup plans, and they also have what is called a medical or health care model where you can buy painkillers or other prescriptions and also health care products. bloomberg intelligence says that could be the bulk of their business going forward by 2020. this is a company that has 193 million registered users. is 30nthly active users million or so. they would like to see that up for -- upwards of 100 million to quadruple sales by 2020. a lot of optimism right now for this. the largest until shall may comes. haidi: steve, that is part of it. wavetart of the next big of ipos. particularly as we have these reforms to the shares. steve: that's right. because shall meet yesterday was the first company taking

yvonne: great interview, that was warren wang speaking with stephen engle.h more of the technique conference. talking about a rally inspired electric supercar, that's at 9:30 a.m. hong kong time this morning. this is bloomberg. ♪ ♪ this is "daybreak asia," i'm yvonne man in hong kong. betty: i'm betty liu in a new york. apple supplier holding high position, aiming to raise at least $4 billion in the largest mainland china ipo since the market crashed. foxconn industrial internet will offer almost 2 billion shares in shanghai, valuing the company at about $43 billion. that will place the hon hai boss closer to check that he moves away from assembling phones. betty: the hong kong economic times says an ideal is being considered and could see a valuation of $70 billion. the started -- they started consultations in april and worked with the investment banks on shareholder structure. a good subscription result could be the date brought forward. betty: singapore water treatment company suspended shares and started a court supervised reorganization. it is battling

he spoke to stephen engle exclusively in asian -- beijing. >> we want 100%.r for the chinese. joint ventures, a lot of these are hard to govern, not very successful, do not set the highest standards, and do not bring the best of all of jpmorgan. where does the research get done? you sell here but cannot sell -- once weu have to 100%, jpmorgan will have recruiting, credit, products, services. .e represent we are optimistic we will get there. that is part of the process to making sure -- stephen: do you see this as a step-by-step process, and after three years, allow 100% ownership? jamie: yes. stephen: where are you in that process? jamie: we are in the process. stephen: what is the timeframe? jamie: as soon as possible. when it comes to jpmorgan, we will make sure we got all of our ducks in a row. stephen: what is a key priority? last year, you said joint venture is our sloppy corporate governance. jamie: but at 51% control, where you know the other owners and have a path to control, that actually works. stephen: how involved have you been in the consultation

. -- stephen engle is digging into the latest data for us.ou trying to balance the need to crack down but not overregulated or stifle growth? is the job of regulators. it is often a tricky balancing act. authorities have shown some success over this basically year-long crackdown on some of the riskiest areas in shadow banking, estimated to be about $10 trillion. i have seen it upwards of $16 trillion. it also backs the question at a time when the prospects of the chinese economy are in question with trade tensions, and also the continuing crackdown on the property sector, will regulators slacken their campaign when risks in the economy are starting to bubble up? let's go to the terminal. we can see, first off, the successes authorities have had and reigning in some of these off-balance-sheet risks like wealth management. the first chart here basically shows over a five-year period, shadow banking assets as a proportion of china's gdp doubled to reach 87% of gdp. the successes are in the last year. the ratio last year slipped back to 79%, that