is it the right move for tencent?ings are moving quite well. >> tencent's business model is transforming. now they are adding more cloud computing, more payment. they are doing well with online streaming. if you look at the percentage based -- breakdown in terms of revenue, it is the rising proportion. a strongs holding foothold in the gaming business. that is why we are really positive. yvonne: you mentioned the top one was robust. the bottom line is not as exciting? of take a look at the cost video, it is up from 80%. you can see how fares the competition is with the likes of alibaba and baidu. reducing pressures here? the margins, it is 3.6% below our expectations. that is because of the exchange. that margin is much lower than the traditional margin. it is the same case for the payment. they are doing well online, off-line, taking market share aggressively from alibaba. going forward, it will be the case. is the margin and protecting that margin the only headwind you see for the shares? jessie: yes. in the near te

will we see similar numbers for tencent? —— tencent?. good morning, asia.you could join us for this midweek edition of asia business report. chinese social media giant weibo has reported reve nu es of media giant weibo has reported revenues of just media giant weibo has reported revenues ofjust under $200 million, an increase of 67% compared the year ago levels. profits are coming in at about $47 million us. the company claims 347 million monthly active users, an increase of 30% over the past year. another tech giant in china, tencent, is tipped to report encouraging numbers today. but with a saturated market, what are the other avenues for growth? certainly they need to start looking outside of the chinese market. there's still a lot of growth in chinese market, for example tencent are actively looking outside, looking at notjust china but around hong kong and singapore. the chinese communities in europe and america. and also exploring other opportunities. we are exploring advertising channels, getting companies to put their brands on wii chat, for tencent

shares rising .5% for tencent. you for that. let's get first word news with stephen engle and hong kong. >> the stakes are rising for president trump. the department of justice has appointed a special counsel to oversee the fbi investigation of russia's alleged attempt to influence last year's election. a former fbi director robert mueller has been named. the independent inquiry is in the public's interest. the bond market seems to be saying that the upheaval in washington could throw the fed off rate hike path this year. the chance the fed raises rates next month are now 60% taste on the current fed funds rate. that is down from 80% a week ago. the chances of a boost in september are also falling. the market is not pricing in a full hike until november. apple shares fell the most in six months as the controversy surrounding the trump prompted concerns about the likelihood of being passed. apple has $240 billion in cash abroad. trump has proposed a tax cut to repatriate offshore holdings. most sinceell the november, while the s&

a good deal or not is whether or not tencent can continue to wea n whether or not tencent can continuee off free music. there are basically three types of people who listen to music in china. those listening to pirated muse uk, those who are paying and then crucially this big group in the middle who are using tencent‘s music for example on their phone and perfectly legally listening to free music. tencent has been trying to get people to pay by saying 0k, get people to pay by saying ok, you listen to that band's song, but here is another song by them, and if you wa nt is another song by them, and if you want that song, you've got to pay or do you want a better quality version of that song? this is like there are only # #15 million, who are paying for this service and around 600 million chinese people every month listening for free. so the crucial thing is, can they continue to get people to pay? and if so, well, eventually, it probably will be a good dealfor eventually, it probably will be a good deal for universal music. all right, we will keep an eye. steve, thank you very much indee

daivd: hong kong stock fortunes are tied to tencent like never before. right, when you look across markets, this tuesday's session, a cloud over events in london. gmm ,ook at my have a look at all markets, flat. japanese yen, flat and has given up most earlier strength. the bid we aret getting as far as the bond markets are concerned, green there, two point 24% on the u.s. 10 year bond. not to trivialize what happen in the u.k., but again, it seems that investors are just looking past events there. comes yeah, but when it to the pound, the sterling is giving up that strength, slipping in early asian trading. , thea look at my bloomberg function. moves follow that drop we saw yesterday after the u.k. threatened to walk away talks on it's the parts are from the eu, so being exacerbated. let's talk about this developing story that happened overnight in europe. officersterrorism holding an emergency meeting after 19 people were killed in an explosion at a music concert in manchester. we have stephen engle monitoring the story and the latest headlines. >>

we will also be looking at tencent earnings and alibaba. bloomberg. ♪ so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. so new touch screens... and biometrics. in 574 branches. all done by... yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformation. a data fueled, security driven shift in applications and customer experience. which is why comcast business delivers consistent network performance and speed across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver. rishad: that is the scene at the moment at victoria harbor. mark is looking at positivity according to the premarket futures. we are coming from bloomberg's asia headquarters. in sydney. h

universal signed this deal with tencent knowing that it has 15 million subscribers.hat tencent has hundreds of millions of active users each month waiting to become paying customers. dance into the music there. thank you for investing your time with us. you are watching bbc news. our top stories sour, a special has been appointed to investigate alleged russian interference in the us election. and an islamic court has ordered two men to be given strokes of the cane in public for having gay sex. in the run—up to the uk general election we have been asking you about the subjects that matter to you. the impact of brexit on agriculture is a big talking point amongst farming communities. we have been to a farm near cardiff to find out more. my my heart and soul is in the sheds and these cows. it is part of who we am. my name is abby and i am a dairy farmerfrom am. my name is abby and i am a dairy farmer from south wales. what are the big issues for you in the run—up to this election? trade, labour and investment within agriculture. brexit will have a huge impact. the singl

for alibaba, online goods, for tencent, virtual goods in gaming.nies are soaring past $300 billion in market cap. expectation for chinese consumption power in that space. >> it is interesting, given what you are telling me, that for tencent at least, bearish bets have been piling up before this week's earnings. why? lulu: probably a move to hedge the gains traders have made so far. as you said, more than 30 million put warrants have piled up, also a record high in 18 months. that trend is probably going to continue all the way until their earnings are reported. seen, their share prices are also at a record high right now. ipohat is the status of an at its financial affiliate? what is going on there? lulu: our sources have told us that the ipo that was expected probably won't be happening this year. the company has done a lot of expansion overseas. they are also trying to fend off competition from tension -- from tencent answer domestically in china. the company has a lot to actually consolidate and grow out their business, so in terms of the ipo, t

they are competing with tencent to get the most eyeballs on their platform.otly contested sector in china. yvonne: in terms of expansion efforts, what does management say about international expansion? selina: it is still a talk priority, but they wanted to remind listeners that it is still very early stages. the goal is to get to billion users on its platform. they are starting out in southeast asia. they are investing heavily through ant financial and alibaba. from there they will redevelop the market. we have seen interesting international news. moneygram acquisition and companies like first data. we will see more investments abroad and competition there. we will continue to see growth in southeast asia as well as domestically. you,e: selina wang, thank joining us live from new york. oneteran bear still short banking stocks, but not as much as he once was. speaking at the salt conference says he still sees china as a disaster. his firm has been doing well closer to home. >> we mentioned the areas we fromshort, valeant -- early 2014 on. we have notr areas t

the deal with tencent is a joint venture. the hong kong business as a base and they have huge distribution platforms. they have the biggest payment platform in the world. they did 46 billion payments in one week. figures, the figures are extraordinary. want to redefine insurance in asia with a partner like that. insurance is expensive, it is old this tradition mechanisms, commissions are huge, margins are huge. marketls to me like a that is right for disruption. anna: thank you very much. steaming -- mark wilson is staying with us on the program. manus: we are building up to the elections in iran. one day to go before the iranians go to the pulse. this is president trump going with a few more sanctions overnight but stands by the current iranian deal. more to come. this is bloomberg. ♪ anna: welcome back. this is bloomberg daybreak: europe. in new study suggests the u.k. exit bill may be as little as 5 billion pounds or no more than 30 billion pounds. the study is good news for prime minister theresa may as she releases her c

we are awaiting tencent and alibaba the day after. china tech perhaps overtaking san francisco.and and manage. story,now to our top james comey asked to drop an investigation into the former security adviser, michael flynn, according to a person who was given a copy of the memo that comey wrote following his conversation with trump. anna: this introduces the possibility that the president may have obstructed justice, which is an impeachable offense. the white house denied the offense. joining us now is jodie snyder with the latest on the twists and turns in the white house. jodie, good to have you on the program. what has been the reaction in washington and congress, given this break late in the day in u.s. time? jodie: first of all, the white house has denied this. there was not a news conference or really anything but a statement been eyeing it. on capitol hill, we started to hear from with and democrats. the democrats are using the words you just used as a possibility, "obstruction of justice," and saying they want to see a full investigation, and they want to see a special l

and tencent is up about the same amount as alibaba. done very well on the current environment. they will be out the 17th, a day before alibaba, and this is the focus on tech where it is right now. these technical analysts, let's go to the bloomberg 8527. you have apple on target for $800 billion market value. they say there is a giant market value tech. when you look at the five, it creates something to look at, the combined capitalization of the most valued companies, apple , google, alphabet, microsoft. they are $3 trillion. that is according to data compiled by bloomberg more than the total value of stocks in a single equity market except for the five largest, china, japan, the u.k.. there is concern, what if that valuation is overdone? betty: interesting to see how much of it is in tech companies. we will have more economic numbers. how is housing? su: big focus, because weak rebound or start to the economy, is it real, an outlier? we will find out the numbers. home construction has been nearing a decade high. rise,duction will als

it allows tencent to license its music in china. already has 600 million users of its streaming services. 's latest design has backfired. >> they are selling a boomerang for 1260 euros. representatives of the community and australia have called it cultural appropriation. chanel says it regrets any offense caused. >> that is still expensive for a boomerang. 70th cans film festival it -- 70th can film festival is taking off. stars will gather for the biggest film celebration in the world. for more from the famous cannes to our reporters. a big birthday for cannes this year. edition, we special will have prepared a hot lineup. there will be stars, like .anessa redgrave, emma stewart there will be tv shows for this anniversary. someone else celebrating, lisa. here is me, prognosticating. he had to save up to get this talks -- tuxedo made. tell us which ones are on your to see list. >> i love this time of year when everything is still on paper. i am looking forward to a new film by roman polanski. it is always a special occasion. he has

honor of kings drove one billion plus users on wechat. >> we are seeing tencent become this hybrid ofarvel, and netflix. they beat all estimates for revenue and profit this quarter. most of the growth was bolstered by their mobile game, specifically honor of kings. that game was the top download and top revenue grossing game in the ios store in march. analysts are expecting it to make as much as 3 billion yuan in april alone and will contribute more than half of revenue for 2017. >> shares of alibaba falling in thursday's trade despite strong quarterly revenue growth and plans for a $6 billion share buyback. investors focused on the chinese e-commerce giant's quarterly profit, which missed estimates due to a tax bill and investments and cloud computing and digital entertainment. >> we saw a huge drop in share price because of this earnings per share miss you mentioned. a big reason was because of the tax hit, investments they had made and that a tax break had expired. another area of concern is pressure on the margins. alibaba's core business is still growing quickly, but they are rap

tencent has been acquiring content, as has baidu.ot market right now, and hopefully prices will come down over time as this market starts to neutralize, but they're having to spend rapidly for content. emily: what are the macro drivers helping? selina: alibaba is able to benefit from the growing chinese middle class. even though we did see industrial numbers come in on the weaker side in april, the chinese consumption has stayed very strong. alibaba has been able to capitalize on the rural population, which is still a very untapped part of the chinese market. in rural areas, there is not get -- not very good access to off-line retail. therefore online retail is an , important pathway to get a lot of goods and services that were not available before. alibaba has made big investments in off-line retail and that shift to mobile, trying to bridge the difference between online and off-line retail. emily: selina wang, thank you for that update. i want to focus on the broader investing climate in china. since joining ggv capital, jenny lee

tencent reported a 55% surge in quarterly revenue.ckbusters and gaming content drove one billion -- coming up, flight officials have banned laptops on flights from the middle east and africa. now they are worried about laptops from europe. we will explain why, next. emily: in today's funding board, crowd strike has raised $100 million in its latest funding round. the company is led by xl and values the company at more than $1 billion. it is a timely investment, given a global ransomware hack attack that affected computers and more than 150 companies. crowd strike's security services helped the democratic committee respond to a breach linked to russia during the 2016 campaign. u.s. anti-terrorism officials met in brussels with their european counterparts to discuss the exposed expansion of a laptop and an airline passenger cabins. caroline hyde joins us live from london. caroline? caroline: great to be joining you, as ever. and we are joined by mark weatherford. weatherford was previously appointed by president obama to serve as the de

tencent a loan has accounted for a third of that advance. 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. the latestollowing out of greater manchester after the u.k. terrorism office according to the bbc are meeting in london this hour following concert by ariana were leaving,ds reports that fatalities may be in double figures could we get the latest from our london bureau chief on the phone. please considering this incident now possibly terrorism. what more do not aground? >> that's right. the dpc is reporting that police are considering it possibly a terrorist incident. of a bomben footage disposal van going towards the site. the police themselves have not commented officially get, but what the bbc is reporting his that the death toll could be in the double digits. the picture is still not entirely clear. obviously this is a rapidly developing situation. i wanted to take a moment, is there anything significant about this area? i know this explosion came inside the arena, the

i'd like to remember that, it's been a very frustrating tencent been.t makes me believe that if we keep on, we can be effective a second time, and third, and eventually bring about nance to the nuclear arms race. >> the commitment demonstrated by the 1961 test ban movement is even more critical today. >> what is needed at this rate is for the electorate to get mad, to understand that it bears the ultimate responsibility for our national policies. >> test ban is a good idea, it should be part of any sort of end to the nuclear arms race. >> i remember the war broke out -- the second floor, somebody stops beyond the speech. they said, i suppose you are going to set up shop. i said, you ever say to a doctor, when an epidemic breaks out are you going to set up shop? no, you add to it and work harder. that's where we are. i am not discouraged, i am frightened. >> when enough is enough -- no american would suggest that it would eat patriotic to remain in a position of weakness. but no patriotic american can consider that the wisest policy for this country is t

tencent posted record quarterly sales and profit topping all estimates.s titles such as honor of king's trophy users to spend on naming. strategy is transforming tencent into a hybrid marvel studios-netflix company. that is your bloomberg business flash. matt: thanks ray a much. i am standing outside the shareholders meeting. the focus is going to be on two things. can the bank continue its strategy after the 180 degree flip-flop we had from them a couple of months ago, that strategy to reintegrate postbank there asset management units in order to raise more capital. that is going to be the second focus, the raising of capital. they raised it billion euros, it was the fourth capital raise since 2010 and a half another request and to shareholders for 2 billion more in capital increases today. have they done enough is my charlie.to do you think that european banks , deutsche bank and why have they done enough as far as raising capital because they were a to the party. charlie cole and they were late and bigger than that has been there and ability to recover

. ♪ week for earnings, cisco, alibaba, tencent. first to the earnings.te a few to keep our eye on. vodafone,lmart and but the focus will be on tech and online retailers. 18th,a will be out on the the stock is up more than a third year to date. investors are anxious to see if they can keep the momentum going, particularly with competition from jd.com. that is presenting some competition. then you have tencent, another online retailer, up by the same amount come out on the 17th with their numbers. ,he focus has been on tech valuations when it comes to apple. #8527, market capitalization passing $800 billion, and the nasdaq's five most viable -- and thigh you bull companies are nearing $3 trillion in valuation after rising 24% this year. that is more than the total by you of stocks in any market except for the u.s., japan, and the u.k.. , construction, the biggest number, because that can indicate if the economy is on a rebound. construction nearing a decade high. a economists say housing starts likely rose. industrial production also likely to rise. we hav

tencent, those are all young, innovative companies.ditionalmore mindset companies will be hard to translate globally. >> we have to leave it there. coming to live from the milliken institute mobile conference in los angeles. back to you. yvonne: a great interview, that was our chief correspondent chairman.ith melco steve mnuchin says altra low bonds can make sense. we look at how his comments have affected the treasuries curve. this is bloomberg. ♪ betty: this is daybreak asia, i am betty liu in new york. yvonne: and i am yvonne man in hong kong. altra long-term bonds can make sense for the u.s. economy. he told bloomberg a group is looking at structuring and pricing issuance eons of the 30 year limit. longer-term yield treasuries jumped, reaching its widest since february. --we are studying cultural ultra long bonds. it could absolutely makes sense for us at the treasury. what was thought of as batting around ideas, with these comments, steve mnuchin has the markets thinking seriously about this. we did see the treasury yield curves s

it is great to have that company .acking you up -- tencent that is great to have a company like that: you know yvonne, to put a human aspect to this, not to be such a downer here but i thought one of the most fascinating part of the story of this company had fact,with the bit morbid where a few employees actually died -- not related directly to symbol or a but a signifying to some people to get that next game released, work overnight, 20 47. 24-7. that is a statement on that south korean culture. betty: as about -- yvonne: yvonne: i was about to say -- i was about to say when it comes to be mobile game industry as well, this is a very saturated market. one interesting thing is the remarkable success story behind it. the founder grew up in a slum. he did not come from money, and this ipo is a signal that south korea is moving oil from that, new chapter here after the election. betty: indeed. we will certainly keep watching this stock and how it trades, but let's get to our first world news. >> first up, president trump has described former fbi director james comey as "a grandstand or,

alibaba is in competition with tencent as both companies are trying to drive growth in the space, andibaba has no choice but to continue to invest dollars in order for future growth. evergreent about that and vision, international expansion? >> management did say they continue to see southeast asia as a strategic part of their business. they will continue to integrate and drive growth. of thesethat big companies are, they are trying #7236, theto amazon goliath and the last little brother. there we go. thank you so much. all right, over the next hour, the drama in washington continues to play to packed houses. we will ask what lies ahead for president trump as he called impeachment talk totally ridiculous. this is bloomberg. ♪ ♪ >> from our studios in new york city, this is "charlie rose." >> good evening, i am filling in for charlie rose. there is uncertainty hanging over the trump presidency. less than a week after the firing of james comey, the white house careened into further damage control today following reporting that president trump asked comey to end an investigation into mic

betty: tencent's investment in gaming is paying off. there are risks in

driven by msci china outperforming this year, driven a lot by the tech share rally like alibaba and tencent, we have seen jitters on the mainland as authorities stepped up or cramped down on financial leverage, which has impacted h sears. rishaad: let's have a look at this. rishaad:we are having a look at the premium that the msci shares shares,r h sears -- h the most since 2002. sharesr: it does show h are relatively cheap, but the question is whether it will remain cheap. many say the gap is permanent, unless something dramatically changes. we are also having a shift from the old economy into the new economy in china. investors say it's only natural for this gap to remain going forward. this calls into question the relevance of the h share index, doesn't it? reporter: the index compilerreporter: off of the gauge has said that the index is becoming less representative of china, and they would consider expanding the universe to include other chinese companies kong.re traded in hong as one manager points out, it still wouldn't include u.s. alibaba,mpanies like which has become significant. i

with all the names quoted about alibaba and tencent wherever i go. come on.alot of businesses in china, chicken , real manufacturing estate, all kinds of businesses waiting for private capital to invest in. a lot of internet related businesses are invested in by funds.he see funds -- vc i don't consider those as private equity. they are vc-related. we look at growth in china. we have private capital. we put money into small and medium-size companies in china and help them grow. cows,n farms, milk mining, manufacturing, there are so many things. business is waiting for private capital to invest. people are too focused into internet-related stuff, which is something we need to cure. let's latch onto valuations. if we can bring up a chart, # 7569. it shows how valuation and china is below average right now. what do you make of the valuations? company,e look at a the file you wish and is calculating in the traditional way you learn from that this is school. -- from the business school. they comes down to negotiating skill, your personal relationship with the foun

daivd: hong kong stock fortunes are tied to tencent like never before. look across markets, this tuesday's session, a cloud over events in london. gmm ,ook at my have a look at all markets, flat. japanese yen, flat and has given up most earlier strength. the bid we aret getting as far as the bond markets are

in china, baidu, tencent, and alibaba are doing well. emily: what about apple? apple made their most recent hire to head ai. i think they should have every reason to do well given they and canlosed ecosystem learn so much about the users, but they started behind. emily: where do you think you will be placing your bets? >> financial industry. our most successful investment in ai right now is in a company that underwrote 30 million lines this year -- loans this year. i think insurance, banking, investment. we are long-term optimistic about autonomous vehicles as well as robotics. emily: your private banker is out of a job. always great to have you here. a story we are watching. the founder is stepping down from operations of the online streaming service. he is a chairman of the company. it has grappled with a cash squeeze leading to challenges in fundraising and unpaid bills. coming up, it is a major c.e.o. shakeup at ford. what it means for the self-driving car ambitions, next. we are live streaming on twitter. check us out. this is bloomberg. ♪ emily: a surprise

lma atancial will value $6 billion and compete with tencent. top $1 trillion this year.uld be china's second-largest start up fundraising effort so far in a17 waymo hoping to find smoking gun as it tries to tackle uber in a trade secrets case. a former engineer of colluding with its rival to steal driverless technology and says the evidence can be found in report that uber commission in anticipation of the lawsuit. sued uber in february and is fighting to be given a copy of that alleged document. to groceryopened pick up kiosks in seattle to into the $800 billion grocery market. amazon fresh pickup allows shoppers to buy online and pick up groceries within 15 minutes. amazon wants to compete with click and collect shopping by rivals like walmart. it is now almost a $1000 stock. let's get back to our top story. oil has extended declines in the asian session. overnight only news of the opec deal. flaggednsion had been been priced into markets and traders left underwhelmed that there were not more cuts announced. there are concerns that the exit strategy from export curbs d

is now gains among regional benchmarks, and we also have a hong kong hang seng rising higher with tencentthe most points to that benchmark. elsewhere, australian stocks paring losses ahead of the federal budget. $.74,ssie dollar below further drops from that march retail sales number weaker than anticipated. theing at some movers in region, harvey norman dropping in sydney falling that retail sales number, and one of the biggest climbers in the region, speculation that china is looking to merge power players. a last look at sony shares coming back from the break, the stock has risen over 2%. sony has been going through a sincerestructuring effort the ceo took over in 2012, an analyst from goldman said jeffrey state the company will pull through with a record profit for this fiscal year, so shares on the up. ♪ caroline: welcome back to this special edition of "bloomberg technology." i'm caroline hyde. we are live from boston all this week, showcasing the innovation , diversity, and power of this cities tech economy. the boston pops opened its 117th , it's thed the theme music of former con

that is in 10 years, a tencent increase.t keep on raising debt ad infinitum at that sort of freight. at some point it needs to slow down and when it slows down the economy will -- growth will slow down. for sometimeon further. i do not think it is leading to a slowdown but at some point we have to be worried that debt is giving that's getting to a level where it has to stop growing. the market, that seeing prices in negative territory and that puts the debt story much more central in our thinking in terms of the challenge. ofss: there are a couple challenges. that is the issues of companies that are insolvent that are still going and how does that work its way through the system. that is one aspect. the aspect of the total magnitude of debt i do not think is something you need to worry about because it can carry on going up for some time. 300% in termsat of debt to gdp. guest: a developed economy can go to 350% easily. i suspect in an economy where china carries on growing they can manage it that to could go up to 400. these

. -- and tencent. we will have emerging markets groups.♪ >> you are watching "bloomberg technology." a check of your first word news. securityserver -- adviser h.r. mcmaster says the information shared by president trump with russian officials , andweek was appropriate the safety of a key intelligence source was never compromised. mcmaster initially dismissed the story as false. the new york times, citing a current and former american official, says the class of fight intelligence was divided by israel -- the classified intelligence was divided by israel. president trump is scheduled to travel to israel next week. mitch mcconnell recommends merrick garland as fbi director after mcconnell played a part in blocking president obama's attempt to confirm garland to the supreme court. mcconnell says the gop could use less drama at the white house. president trump welcomed the turkish president to the white house. countries, hetwo says, must battle the islamic state together.

up forfor a brisker open tencent 1% on london. at 4% higher this morning -- market open team -- take the conversation forward. this is bloomberg. ♪ so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. so new touch screens... and biometrics. in 574 branches. all done by... yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformation. a data fueled, security driven shift in applications and customer experience. which is why comcast business delivers consistent network performance and speed across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver. crocs welcome to bloomberg markets: european open.

having a look at another stock, tencent has been on a tear, coming out with earnings tomorrow. look at this chart, we are seeing quite a few bearish positions coming through. from ubs saying it is typical short-term trading ahead of the release of earnings. we are expecting 10 sent to post a 44% increase in quarterly revenue. this is a stock that has hit record highs and lifted the overall hang seng index. manus: thank you very much. breaking news coming through from hsbc. they are going to issue some perpetual contingent convertible securities,, security is used by a lot of the banks. billion, assue $3 six pe 6% contingent convertible. so you've got this capital relief, the others are doing right, looks like hsbc has gone for $3 million. anna: the conversation around the earnings of story was about the pace at which they will invest in the business. this was a slightly different tack. let's return to the u.s. political story. in the u.s., president donald trump's top foreign-policy advisers are trying to contain political damage from a report saying he revealed sensitive, clas

. >> you have some big name in investors, such as tencent. what is the current value?eady to give an estimate, a rough value of mobike right now? >> [indiscernible] >> are you looking for further funding? >> we are always open to new investors. [indiscernible] terms of the expansion plans, they have been rapid. you have a target by the end of in 90 cities. where you expect to be by the end of the year now? 150 to 250. we have more than 10 people in -- and in europe, japan, the u.s. >> as you said, you have all these different investors and partners, notably foxconn and calgon. are you looking for further partnerships? is, we are using new technology. the field is so tentative. if we want to make a sustainable business, the only way is to use technology as much as possible. we want to expand to singapore, japan. the ed outreach to supply iot. we are the first player to use solitaire. that is why we want to use new so we can improve the user experience and lower cost. we need global partners. -- we usein china u.s. google maps and they can work for candidates worldwide.

tencent. >> what is the object of the game? do we happen to know? >> to win up. >> thank you.it. >> but anyway, logitech has been up 44%. take two has got i think that their franchise could be worth billions. >> well, we promised to talk e sports and we delivered. >> read how the scholarships -- david, your kid, john -- >> recruiting. >> but your kid has to bear down. >> i have two, which one? are you being sexist? >> i was. that was bad. because the woman's league is just as good as the men's, i think. >> all right. >> did you see the espn channel? >> no. >> but they were on the big ten channel. e sports on big ten and twitter. >> this world is just changing too fast for me. all right. we have an opening bell though coming up for this thursday. more "squawk on the street" right after this. a used car, some build walls to keep people out. but these are walls that welcome you in. within these walls, california's educators create safe places for every student to learn and grow. where teachers open minds to history... unleash creativity... and show our kids the future. some build

china and tencent corporation is the front runner to buy european logistics business logicor.ld fetch about $13.4 billion. logicor is owned by blackstone group. two other firms are still in the running. sentiment fell in may for the first time this year. of consumer sentiment remains close to the highest level in a decade. the decline was led by weaker readings in the services and retail sectors. in germany, commerce bank sent out early retirement to about 3000 employees. people familiar with the matter say the offer includes a $34,000 -- they want to cut 9600 jobs over four years. david: thank you so much. jonathan: i have sympathy for emma chandra because sometimes they put in those reads across the newsroom and she has to get into position. david: very impressive. jonathan: fantastic job. if you were trying to fly british airways over the weekend, the airliner left thousands of passengers stranded after a computer outage on a busy holiday weekend resulted in 600 canceled flights and many asking how this could happen. the airline issued a statement saying "our i.t. systems a