what led them to criticize tencent this time around? look at tencent in general, one of their key businesses is gaming. said, itetty harsh, it harms children. it spread negative energy and has led to deaths. and they said it worked traditional social values. honor -- honour of kings is a similar to league of legends. they contribute more than 50% of tencent's revenue, so it is important to them. areas, they are scrutinizing closely social media. areas for the government is watching closely, gaming is to deteriorate traditional values. ,t is being widely reported stories about people who died after gaming sessions in gaming centers. this is something the government is quite critical of. than 5%own more yesterday, and closed yesterday 4% lower. it affected tech stocks in hong kong. another fell, as well. in the long-term, probably not that bad for tencent. but some affects, immediately. it has put some caps on gaming for under 18. we saw the knock on effect in tencent, the second-most heavily weighted stock in the hang seng index. we saw

martin lau, the driving operational force behind tencent.his is a guy when he was going to make a presentation to buy a videogame, played the videogame so much he eventually got the 97th highest score. he is a former banker with a list of credentials as long as your arm. in charge of a company fundamentally free shipping the way people live their lives. carol: and it took two job offers to get in there. megan: exactly. oliver: what i found interesting was the juxtaposition between ubiquity of tencent in another part of the world, and then now there is attempts to expand beyond that world. to find out what they are going to do, we talked to brad stone. brad: if you're unfamiliar with tencent and are interested in business or the internet, you need to learn about this company. it is side-by-side with alibaba one of the technology giants of asia. known most prominently for the messaging service wechat. what is wechat? if you're not familiar with it, i could draw parallels to facebook messenger, but it really is so much more. in the u.s. we tend

we described him as the sheryl sandberg of tencent.efore that he worked at goldman sachs and he helped take tencent public. he guided the international expansion, created a culture at tencent, and help steer we chat to what it is today. carol: i want you to tell me more about this guy because he is obviously important to tencent's next step. he was offered a job and said no thanks. it was the second job offering? brad: we had a lot of fun talking to him. lulu chen, one of our asian tech correspondence and i went to visit martin lau in hong kong. this was a unique opportunity. he rarely talks. we sat in their hong kong office and he reviewed his trajectory and his journey into tencent. when he was first given the opportunity by pony ma back when they were taking tencent, he turned down the job. could it overcome the pessimism in the market? it was a one trick pony, no pun intended. they were doing deals with mobile phone operators in china to get the prescription revenue. that is why there was optimism around the ipo, and why it year la

send. -- 10 -- tencent.y are not really out in the public that much but crucial to this company. >> that is right. one of the five original founders, one of the wealthiest people in china. very quiet. does not do a lot of interviews. we jokingly referred to this photo with the chinese president, with all the world's technology executives lined up, there was a photo shoot. everybody is looking at the isera and smiling, pony ma staring down. there was something very characteristic. he does not do a lot of interviews. no one at this company does. we got this tremendous opportunity to talk to the ony'sd in command, p collaborator martin lau. we described him as the michelle sandberg of tencent. before that he worked at goldman sachs and he helped take tencent public. he guided the international expansion, created a culture at tencent, and help steer we chat to what it is today. carol: tell me more about this guy because he is obviously important to 10 sen -- tencent's next step. it was offered a job and said no

tencent has about one billion active users.is a key to its business and this is a bit of a blow to them arid they have been facing pressure for a while after saying they would set limits on the times that players under 18 could play but that hasn't been seen as enough by the government. tencent yesterday was down more than 5%, closing at a little more than 4%. we will have to see how tencent performs when the markets open today. tencent is the second-most most heavily rated stock on the hang seng index. if you look at this chart, you will see that what tencent especially since 2016. the correlation between them getting closer and closer. the section underneath shows the correlation. if you look at this other chart, you can see why. this shows that tencent has increasingly a larger influence over what the hsi is doing because it is a waiting on the benchmark. 17%.er this year, we saw the second half, it struggled to stay above the 26,000 level and we will have to see what the rest of the year has for the markets in general. gene

tencent public.e really guided the strategy and guided the international expansion, created the culture at tencent and helped steer we chat to what it is today. carol: it's funny you say that, i want to tell me more about this guy, he's very important. this is the guy he was offered a job by tencent after the ipo and said no thanks. it took the second job offering. brett: we have a lot of fun talking to him. one of our asian tech correspondent and i went to visit martin lau in hong kong and this is a unique opportunity. withrely talks and we sat him in their hong kong office and he reviewed his trajectory and his journey into tencent. it's true, when he was first given this opportunity by pony ma and his cofounders back when they were taking tencent public, he turned down the job. everybody was a little worried about this thing. could it overcome all of pessimism in the market? it was a one trick pony, no pun with the founder's name, but they were beginning to do deals with mobile phone operators in

this is not tencent trying to reach the u.s. consumer.e better and more value for the people already on its platform. ,eople do everything on wechat booking movie tickets as well as shopping. by getting at players like stripe and all of their merchants on a platform, it makes it more valuable for tencent users to stay in the wechat platform. wechat and alipay have intense competition going on right now in china, so they are both trying to do everything they can to make their platform more valuable. emily: selina wang, thank you is always for joining us. that does it for this edition of "bloomberg technology." our special coverage of the "focus on tech week" continues tuesday. and "bloomberg tech" is live streaming on twitter. check us out at @bloombergtechtv . that is all for now. check us out weekdays. this is bloomberg. ♪ ♪ anchor: the return us diplomacy. the u.s. secretary of state attempt to resolve the crisis in the gulf. >> turkey maintains its for thatr, telling bloomberg the demands of the saudi led block are unfair. oil and gas

this is not tencent trying to reach the u.s. consumer.ake life and more value for the people already on its platform. people can book movie tickets as well as shopping. by getting at players like stripe and all of their merchants on a platform, it makes it more valuable for tencent users to stay in the wechat platform. we chat and alipay have intense competition now in china so they are both trying to do everything they can to make their platform more valuable. youy: selina wang, thank for joining us. that does it for this edition of "bloomberg technology." our special coverage of the "focus on tech week" continues tuesday. "bloomberg tech" is live streaming on twitter. check us out weekdays. that is all for now. this is bloomberg. ♪ ♪ from our studios in new york city, this is "charlie rose." evening, i am just glory filling in for charlie rose who is traveling. reportingproduct of by journalist nick schifrin and zach bannon. they recently traveled to a dozen russian cities in an attempt to better understand the country. it will explore

he reviewed his trajectory and journey into tencent.n he was first given this they tooky back when 10 sent public, they turned down the job, everybody was worried about this thing, could it overcome all of the pessimism and the market, it was a one trick pony, no pun. they were beginning to do deals with the mobilephone operators to get some subscription revenue. later, also why, a year martin lab accepted. with the covers, putting ever -- to be too specific, rocket lab was mentioned in one of the stories. abstract, it's not too specific but it also immediately get two to the point that this is a tech issue. >> i thought that we read so many of the stories and i had no idea what this is about. a lot of the rockets in this facility were a work in progress. they opened up and the axa got inside. >> it is interesting, it is not a lot of other stories around it. it is very clean. it is global technology. >> we have because of this cover flat. that gives you a limb more of what is inside and then when you open in magazines, you can see the s

tencent above $300 a share.earnings at the end of last week. to the downside, japanese companies,export toshiba under pressure, falling as we hear more detail about the deal with western digital over the chip unit. they have agreed in principle to give each other two weeks notice on the sale of that unit. officialright, this back amiduge dialing a crackdown on financial risks. tom mackenzie is in beijing. give us the details. tom: nothing to shocking. number four july, the pmi manufacturing number missing marginally the estimates we had from economists who had , down from the june number that surprise to the upside, 51.7. if you break down some of the components that make up this index, construction, that sub index up marginally from the june number, but new orders were in the slightly lower than you manufacturing sector. the nonmanufacturing service sector came in slightly below the june number. for july, 54.5ay for the nonmanufacturing pmi number. as you mentioned, we have the caixin index tomorrow mo focusing

>> baidu, alibaba, and tencent a rapidly trying to catch up to google, facebook, and amazon.e help of the government, it will accelerate the closing of the gap. baidu has done significant work in voice-recognition technology, and driverless cars. they have a big research center in silicon valley as well as one in china with the cooperation of beijing. ur ase seeing tencent po well as alibaba. we are seeing them invest in driverless technology. this is going to be fuel to continue to push ahead and be the leader in this field. emily: selina wang, thank you so much for that report. david kirkpatrick, you are sticking with me. coming up, from netflix's international search to google results, we will break down earnings and look ahead to the onslaught. this is bloomberg. ♪ these days families want to be connected 24/7. that's why at comcast we're continuing to make our services more reliable than ever. like technology that can update itself. an advanced fiber-network infrustructure. new, more reliable equipment for your home. and a new culture built around customer service. it al

the same is true in china with alibaba and tencent. they have the ways and people to advance it.sure they will be working closely with the chinese government. it is worrisome. we are still ahead. we cannot assume that will remain the case. emily: what does it mean for those chinese companies that david mentioned, the biggest chinese companies already working on ai? reporter: baidu, alibaba, and tencent a rapidly trying to catch up to google, facebook, and amazon. with the help of the government, this is probably just going to accelerate the closing of the gap. baidu has done significant work in voice-recognition technology, and driverless cars. they have a big research center in silicon valley as well as one in china with the cooperation of beijing. we are seeing tencent pour as well as alibaba. we are seeing them invest in driverless technology. this is going to be fuel to continue to push ahead and be the leader in this field. emily: selina wang, thank you so much for that report. david kirkpatrick, you are sticking with me. coming up, from netflix's international search to goo

tencent, the stock that shoulders the fortunes of the hang seng.sing the days losses, it fell as much as 3.3% today as we see in the circle. it is now adding 1.8% there. stock had fallen to 4.1% on tuesday amid criticism from chinese social media of its biggest gain. analysts say the selloff has been overdone and investors have seen the share pullback is a buying opportunity. morgan stanley sees limited earnings impact for new roles to curb. tencent is on the up in the later session. ♪ we've been talking about what is going on with of the oil price. a big comeback. one country that does not seem to be benefiting in its currency, looking at the russian ruble. if itnister saying today, weren't for the opec cuts, they were not willing to be part. as a result of the sanctions on the country, the ruble having its worst month since 2015. -- halfil prices, $50 what it was a few years ago. that is a problem, isn't it? it is a new environment for oil producers, especially opec. russia wants to keep the line there at the current production cuts. what they ha

tencent is trading above $300 per share.upside in some of the banks and miners in australia yesterday, and if you look at the downside, this came through with a pretty good quarterly number. share price is being sold off by 2.5%. and of course we can't get away raisings wonder story, $516 million for the deal. some analysts say it will not be enough to reduce debt holdings. then quickly having a look at the currencies and asia, won rising against the dollar today. south korea says it sees 3% growth by 2017 and 2018, expecting the economy to continue to recover thanks to exports and an extra budget to the downside. hong kong dollar is weaker against the dollar. hong kong monetary authority says it is not concerned about hong kong weakness. yousef. yousef: thanks. let's move the conversation to what came up in the press agency overnight. the saudi led block will remain in place, but there are some interesting elements to this. they are reporting that nine groups based in yemen and libya have been added to the list of terror gr

now you have all these players in china from tencent, alibaba, samsung trying to jump in.od takes advantage of apple music and siri and homekit and apple's home-based services and other streaming services, where they are trying to make the bulk of their money in the future as hardware sales slow down in some categories. people really want smart speaker's. you see the demand for alexa. if apple does not create their own or these other players don't create their own, people start buying the amazon product. they really like alexa. they say, hey, maybe i should get some more amazon products, prime music, crime video -- prime video. we are starting to see people want to use those devices. if they don't create their own, they risk losing other product lines to other companies. caroline: let's get a vc take now. martin, when you see this rush for ai -- you were saying how driverless cars are the hottest thing over the last 12 months. is ai the hottest investment, too? is there enough talent to go around, -- let alone enough money? martin: we do have a lot of startups going after

tencent wants in. why are we seeing this drive? what do the companies want in their ecosystem?saw amazon and google jump in last year with update to the echo line. lots of new alexa devices. like the tap, dot, and the new echo show has the screen and the echo look as well. it's more of a style guide for your wardrobe. apple, they announced the home pod for $350. you have players in china trying to jump in. why do they want these? let's start with apple. the home pod takes advantage of apple music and siri and home kit and their home-based services and streaming services, where they are trying to make the bulk of the money in the future has hardware sales. it is important because people really want smart speaker's. you see the demand for alexa. you see the demand for amazon and google's home speaker products. if apple does not create their own, or if others don't create their own, people will buy amazon products. they might really like alexa, and say, maybe i should subscribe to prime music or video instead of apple music in itunes and buy an amazon fire tv instead of apple tv.

. >>> tencent shares start the recovering after falling more than 4% in yesterday's session, this after the chinese tech chint sa giant said it was limiting play times for players of "honor of kings. the move is aimed at cushing addiction among children honor of kings has over 50 million daily active users and is tencent's top grossing game. >>> the micro financing sector in china is looking to service 900 million people who have access to mainstream banking for some that means turning to farmers for new growth eunice yoon filed this report. >> reporter: far from his posh beijing office, roger ying is meeting some of his best clients. >> we love coming down here. it's always a treat. >> reporter: the stanford grad from south africa founded a peer to peer lending company. the p to p industry in china has run into financial trouble to survive ying lends almost solely to people on the farms. >> when i look at the china economy, 1.3 billion people. 300 million to 400 million have already been enriched. there's 900 million other farmers who have been left behind by the mainstream financial s

its rival is called mo-bike backed by tencent.s proxy war for alibaba and tencent, for who can get the most users. this is not actually bike sharing, it is more like rental but the user does not even have to take ownership of making sure they return the bike. they can just leave it where ever they want on the street. there are significant risk for this model, but the cash spending is not going to stop anytime soon. caroline: $700 million blows my mind, for a bike. how many countries are they looking on entering? they claim on the website they are already in the united kingdom. i have not seen many. why are they needing quite so much cash? selina: it is not like the uber or didi model. not only do they have to have the back end system in tracking and allowing people to unlock it with smartphones. the also have to produce these bikes. they have inventory risk. it is very expensive. thievesso very prone to and people that just throw it on the sides of the streets. there is actually been lots of clogs with these bikes being strewn eve

shares rebounding after slumping 1.5% tuesday, driven by a drop in tencent, falling by the most in over a overshadowedns chinese telcos stocks on wednesday, helping to keep the hang seng afloat. the rally is losing steam as hang seng is failing to hold about 26,000. the benchmark has been moving sideways over the past month. some movers potentially in hong kong. c motor shares and focus after daimler said it is 655nering to invest solion euros in a factory, shares of 3% there. great wall motor in hong kong, h-shares upgraded to overweight, and morgan stanley, popping 6.9% there. rishaad: thank you for that. some of the first word news headlines. saudi arabia and its allies says qatar's responses negative, showing complacency to do with the problem, but decided not to impose any new measures. qatar denies charges it is destabilizing the middle east. >> we cannot have a country like qatar that is an ally militarily in the gcc and the league and that hosts an airbase from which planes take off to fight isis and al qaeda and turns a blind eye to financiers who operate openly in qatar. >> we

. -- tencent is down over 5%. n that internet giant in asia. let's state of play on the asian markets. andinternet mobile provider advertising e-commerce is technology in asia. let's talk about the politics and the tensions. north korea has fired another ballistic missile, the 11th test this year. the launch comes at a time of renewed tensions between the u.s. and china, about kim jong -un's regime. peter, thank you for joining us. the 11th missile test since he came to power. is this a significant warning shot ahead of g20? how should we interpret this aggravation? >> first of all, the timing was very intriguing, obviously, because it is right on the eve of july 4, independence day in the u.s., and a few days away from the g-20 conference. this comes right after china's delegation in new york at the united nations basically said that things could get out of control, and there were dangerous consequences as a result of these tensions on the korean peninsula. what's more significant is what we are expecting in about an hour. north korea is appar

the long and is dominated by insurance companies and tencent plans.hem, you can see where it makes sense. the at&t deal was pretty well telegraphed. we had it waiting across the entire curve. it's now one of the biggest issues if not the biggest nonfinancial issue and index. it is something that people needed exposure to. its incredible how well the deal went and their tightening the pricing certainly in the short-term. jonathan: looking at the comments from howard marks of oaktree capital earlier this week and his latest memo, he was warning about complacency. you take out a netflix issue. he said it's an equity linked digital content investment totally lacking in upside potential and it's not for us. the fact that deals like this get done easily should tell you something about today's market climate. this point here is that if you take the equity like investment of netflix, he's asking question as to why that should be reflected in the debt. to some extent it is. if you take a look at quarterly debt of netflix and look at how it is trading, it is tr

the chinese internet company tencent says its profits won't be hit by its decision to limit the amountings is now limited to one hour a day for kids under 12, and two hours for those between 12 and 18. the limits were put in place after a state—owned newspaper called the game "poison". let's look at the markets. a varied day across europe. in london, the ftse mac has been seesawing between losses and gains. 0n the upside its been helped by the fall in the value of the pound — after disappointing trade figures. a weak pound tends to push the ftse higher, because it helps companies selling overseas. that is it for me. now, if you've flown long haul over the past a0 years, chances are you've been on a boeing 747, best known as thejumbojet. it revolutionised air travel around the world, making it possible to fly further and for less money. but could the era of big jets be coming to an end? 0ur transport correspondent, richard westcott reports. newsreel: out of the biggest hangar in the world came the world's biggest plane. it's the giant aeroplane that shrank the world — two and a half tim

you can look at tencent games penetration and the potential for domestic consumption and china is stillo be able to maintain a solid growth in the foreseeable future. rishaad: norman, great having you on the program as ever. right, let's tell you what we have on the way. , talks of cuts at china's biggest producer. we look at that stock watch, next. this is bloomberg. ♪ rishaad: here we are in hong kong, 10 minutes to the start of the trading day. this is what it looks like when it comes to the pre-market auction period. futures jumping marginally higher. we are looking at al aluminume looking at chilow.lation china hong there is speculation this company will be deepening output cuts. as a result, alcoa and century aluminum rally. surging as much as 2.9% on the london metal exchange. the biggest intraday gain since october 25. it did pair that back a little bit. at the moment, another reason, citigroup analyst saying the the cuts.t i'm looking at coal, elon musk making comments, saying coal has no future when it comes to u.s. energy. enhua plans three are strained coal mines. .hey are s

hello chinese internet giant tencent and samsung have developed their own ai powered speakers. with mark gurman. growing artificial intelligence landscape for your home. trial, for the first 1000 orders, i'm curious to see how high the price goes, or even if it will be one of 1000 people rushing to buy it. i'm sure there will be given how big alibaba's spread is across asia. this year, 2017, has become the year of the digital speaker. >> and everyone wants in. samsung once in. ants in.w larry seeing this drive? what do the companies want in their ecosystem? >> he saw amazon and google jump in last year with update to the echo line. lots of new elects a devices -- alexa devices. the echo show has the screen and the echo look as well. it's more of a style guide for your wardrobe. apple, they announced the home pot for $350. tryinge players in china to jump in. why do they want these? apple, the home politics advantage of apple music and siri and home kit and their home-based services and streaming services where they are trying to make the bulk of the money in the future as far a

mark: vice president tencent the united states stands with baltic nations against threats from russiaions rise. vice president made estonia his first stop on of his to eastern europe, following last week's russian-chinese exercises in the baltic sea, and comes before claimed dutch plan russian military drills in september that have passed, simulated attack on the region. hill mayns on capitol have to choose between pursuing another health bill and pushing protection from this here. congress must fund the government after the end of this month. different activists seven decade career included to orson welles, and other acclaimed directors -- have died. emmanuel macron celebrated perot for going beyond earlier roles to embrace other genres, calling your quote, always rebellious. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. mark crumpton, this is bloomberg. >> after the collapse of the obamacare repeal, republicans may have to troop -- truce between another health alliance tax record, because i'm certainly not enough time to do

china has a huge home market and given the dominance of alibaba, tencent, baidu, etc, there's a needahead of the curve. from their perspective on technology. right? so, the combination of markets and technology couldn't have been better. and the geopolitical situation is such that the israeli feel very much at home with the chinese culture, and the government to government has a very nice friendship going on. >> why israel, though? why of all the different countries where there are lots of companies? why israel? >> if you look at mere statistics, israel has the largest r&d per capita in the world. if you look at the military on a per capita basis, one of the highest in the world. it has actually innovative technology that are disruptive and change our daily lives. i don't know whether you know if the -- was first invented in israel. instant messaging was invented in israel. and you know, you have seen waves of technology like google maps. and on intel's acquisition of $15.3 billion of -- technology. these are actually very relevant technologies to the way we live. >> you have been th

tencent, nintendo, sony all under pressure.he state of play across asian markets around lunchtime this tuesday. ♪ caroline: this is bloomberg technology. i am caroline hyde. amazon's decision to acquire whole foods took many by surprise. we continue to question which industry the tech giant will disrupt next. amazon can extend far be on delivery and encroach into the territory of restaurants, and in fact the entire prepared food and delivery market, doubling up on the opportunity. back with us are our guests. talk us through your report. it is a fascinating one. you think this is a $1.5 trillion opportunity for amazon. were just talking about antitrust risks, and now talking about $1.5 trillion, so bear with me. there is no way that our with whats in line jeff bezos his thinking. he is probably several steps ahead. where could the opportunities be? thinking about how they could leverage the whole foods infrastructure. here are a couple of things we know. the restaurant business is an $800 billion industry, bigger than the $700

oliver: including tencent's global ambitions. carol: and the future according to elon musk.t and more on "bloomberg businessweek." ♪ carol: we're with the editor in chief

the hang seng rising a third day here as ip stocks like tencent are on the up, along with ac technologiesome back to "bloomberg technology." i'm emily chang. we go to capitol hill, where we are joined by bloomberg chief washington correspondent kevin cirilli, who is standing by with one of the top democrat on the senate intelligence committee, in the midst of the latest email scandal in washington. kevin, take it away. reporter: we are here with senator mark warner. what do you make of all the developments from donald trump junior's emails? >> this is the first time the public has seen clear evidence that there was an attempt to offer information to the trump campaign by clearly an organized effort by the russian government. the fact that this is one more example of senior officials from the trump campaign or trump organization who continued to deny these contacts with russians until evidence comes out, then they have to recant. reporter: senator, what is next? is this collusion -- what are the next steps in the process? >> other members can jump to conclusions. my job is to keep the inve

hailing is aide proxy war for the payments companies owned by tencent and see alibabayou potentiallygrab as well. that is not confirmed yet, but the company said there is an additional $500 million on top of the $2 billion coming in. we don't know who that is, but there is a proxy work for payments still ongoing them a so we could see these companies expanding in those areas as well. could it looks like grab be the clear winner. they are ready take 95% of market share when it comes to ride hailing, so could we say that game is over for the other apps. >> that's what they are telling us. we are still seeing them battling it out. also, the battle with uber is not over yet, so still a lot of money to be poured into this space and cash burning going forward. shery: over a clear winner, at least when it comes to hong kong. thank you for the latest breaking lines out of grab. news, the imf saying the driver for the global economic recovery is ship in with the u.s. -- shifting with the u.s. playing a smaller role. it says president trump's policies are unlikely to provide a boost to the wor

oliver: including tencent's global ambitions. carol: and the future according to elon musk.hat and more on "bloomberg businessweek." ♪ carol: we're with the editor in chief of "bloomberg businessweek" all about global technology.

the chinese tech giant tencent has responded to concerns by limiting the amount of time children can a strong start to the week — helped by energy shares and the price of crude oil touching over $49 per barrel. also, shares in supergroup, the owner of the clothing brand superdry, which is listed in the ftse 250, have risen sharply after it reported a big rise in profits and plans for standalone sports stores. that's all the business news. last night, a movie about the early life of the smiths front man morrissey, had its world premiere at the edinburgh international film festival. and while morrissey does know about the film, he is yet to say what he thinks of it. our entertainment correspondent colin paterson has been to meet the team behind it. the movie was made in manchester and filmed in stratford street. last night, a movie about the early life of the smiths front man morrissey, had its world premiere at the edinburgh international film festival. and while morrissey does know about the film, he is yet to say what he thinks of it. the local music scene is the sole preserve of tr

some other stocks moving in the region, tech stocks under pressure, tencent in hong kong down .7%.tokyo. a wall street journal report that sony shares are of greater value than nintendo, but also downside for sony today. samsung not moving too much, but reports that it will spend 30 trillion won to expand its newly open semiconductor plant. it is also considering expanding a chip plant in china. a lot of focus on this tech stocks today. rishaad: thank you very much indeed. has been xi jinping warning of an "negative turn in relations with the united states." this is according to cctv. it comes ahead of this g-20 get together and hamburg. president trump meeting vladimir putin and xi jinping. what are these negative factors? >> xi jinping was referring to tionsaiwan ac washington took last week, approving a $1.3 billion arms deal to taiwan. that was the first time since trump took office in january. the 1.3 billion dollars for smaller compared to the last one obama approved, $1.8 billion. what theot include government has been seeking come of it because it is a politically sensitive

the chinese tech giant — tencent — has responded to concerns by limiting the amount of time childrenropean shares have made a strong start to the week, helped by energy shares and the price of crude oil. shares in supergroup, in the ftse 250, the owner of the closing —— clothing brand super dry has done pretty well. they are going to launch a new bunch of sports stores on the high street. that is it for the business news. catch up with all the weather now with sarah keith—lucas. some warm sunshine out there as we head through the remainder of the day and that theme continues for much of the week ahead. this is how things are looking out there. this is bath in somerset. there is a bit of cloud around but certainly some good spells of sunshine breaking through. through the week, temperatures on the up. there will be some more sunshine but also some pretty heavy and potentially thundery showers later this week, particularly by the time we get the roundabout thursday. for the rest of today, a bit more cloud in from the west. it will drift into southern scotland, the far north of england

up next, smartphone maker xiaomi expanding into online lending, a sector dominated by tencent and alibabaomi these days families want to be connected 24/7. that's why at comcast we're continuing to make our services more reliable than ever. like technology that can update itself. an advanced fiber-network infrustructure. new, more reliable equipment for your home. and a new culture built around customer service. it all adds up to our most reliable network ever. one that keeps you connected to what matters most. ♪ morning7:30 a.m. monday in hong kong. one of them were quiet and uneventful days. dark clouds still looming, 36 degrees. just minutes away from the major market open. let's go to new york has see how things are faring there. it appears to be a gloomy picture there is well as they start to ramp up their weekend. you are watching daybreak eyes -- asia. let's get to first word news with rosalind chin. rosalind: president trump playing down this weekend's tweet that he had complete power to pardon. they do have the conversational -- constitutional power to do so but the supreme court

another, to tencent. >> how are you going to win? are investors going to keep throwing money?ion and counting. when does it end, or how does it end? win, you are planning to that winning race has already ended. it is going to the tech world we have been talking about. it has gone beyond the throwing money. throwing money was a trick. >> what is your priority right now? >> [indiscernible] >> is profitability a near-term grow? >> [indiscernible] out of the question. >> is there overheating? outcome ofing is an overpaying. when youtube was bought for $3.1 billion, it was overheating. when instagram was bought for $1 billion, it was overheating. those are going today. but there will be a shakeup, right? it is already happening. >> in any business. >> in five years, who will be standing? >> i do not think this is a question -- we are a paranoid bunch at paytm. we already know what they can do, so we are paranoid. [indiscernible] if they do not swing faster, they will be out. >> what else do you need in your portfolio? >> i want the world, and i want it now. [laughter] the world, an

given how these earnings have asia stock rally has been choppy from tech stocks like tencent recently between tech, samsung electronics, and other internet stock are evaluations. samsung is trading at nine times price to earnings ratio. considering their growth potential, that is substantial. i don't think any cutback in samsung will be significant. they will provide a good buying opportunity. betty: thank you so much. i have more context here on these headlines. this is on russian hacking. the power plants in the u.s.. it looks like according to hackerss that there was powerreached a dozen plants, including a nuclear facility in kansas. this is according to u.s. officials. that prompted agencies and also the fbi to warned that this might be the beginning of a possible larger attack on the u.s.'s power supply and that the chief suspect is russia in these hacks. it looks to be a story on the bloomberg that is quoting former and current u.s. officials. thisll continue to monitor story and anymore headlines that come out. plenty more still to, on "daybreak asia." this is bloomberg. ♪ bet

i talked about technology earlier, when we look at technology about the world, alibaba, samsung, tencente more broadly valued here. i don't think it's overvalued here, but even better evaluations abroad, more opportunity in tech and emerging -- markets. betty: speaking about technology, apple said to be working on this 3-d facial recognition system for the new iphone, due out later this year it will replace the friend. -- current fingerprint scan that allows users to unlock their phone. mark gurman heard more about this from l.a. reporter: apple is planning a big splash, upgrading the iphone with a brand-new design and new features. one new features we are expecting is a 3-d-based facial recognition sensor combined with technology, so users will only have to scanned their phase two logging. currently, iphones use a touch id fingerprint scanner that lets you put your farm on the home button to log in, download apps, and make payments. it will not have any bezels around the sides or edges, meaning there's no room for the home button. virtual.ecome they will have to click the bottom of the

great examples are a third-party agreement with tencent for social gifting.s they are learning in terms of delivery, those are things that are important to growth in china, but can also benefit starbucks around the world. yvonne: it is interesting how they are shutting down these teavana stores, accepting defeat in terms of the tea market. when it comes to china, how are they doing this transition to get chinese drinkers to transition away from tea to coffee? what can we look for on that front? we cannotwith teavana overlook the fact that they had $1.6 billion in tea sales. tea business is still growing for starbucks. in china, they have embraced the sense of culture and educational -- education. there are helping people develop coffee. i have been to stores in china. you have pamphlets on what coffee is about and how it is brewed. the educational process resonate strongly with the chinese consumer. yvonne: great to get your expected on all this, joining us with those starbucks earnings. we have pressure on ups. and vanishing brick-and-mortar stores. we hear

stocks leading gains, samsung, tencent, with telcos as the biggest drag.monday has more industry consolidation gets underway. orient overseas popping 19% and cosco up over 7% as they agree a deal. 26% on thes jumping c to of its deals with suna buy hotels and projects from wanda group for $9.3 billion, one of china's biggest property transactions. shares are suspended from trading today as the billionaire owner has been on a mega-buying spree since 2011, and shares have surged 130%. bearingtel shares investor attention today, up now. important week for fed watchers here. we have janet yellen basically testifying, and we will look for guidance. how will they unwind that $4.5 sheet?n balance let's look into our bloomberg right now, btv 7665, this large body of yellow is the mortgage backed securities. is that the fed intends to start off slow with monthly reductions of six oh yeah and dollars of treasury debt, and $4 billion of mortgage act securities. this is supposed to increase billiones that to $30 and $20 billion respectively, so if they are going to st

role for thes the big tech players in china for all of this, alibaba, tencent, baidu?ion. the number of times we see the large players reaching out to some of the emerging technology players in the west is exceptionally frequent, and that is often getting a phone call from our friends saying, what do you know about these guys? how are they going to use our technology? are they a good partner? most the time the answer is yes. you say china as i imagine a lot of these emerging markets if you will, they can skip completely the older current generation of technology and go straight to what ever that cutting edge technology is? >> that's right. we have seen leapfrogging in the we are talking about industrialized automation, this ring the workshop of the world, and for china in particular, there is a massive opportunity and more motivation here to leapfrogged them there has an in the past. what we will see is a rapid adoption of these technologies to the point where a chinese factory will be different from what it was 1-2 years ago. haidi: we spend a lot of time talking abou