endy: tencent is our top pick in the internet's basic we only have tencent above that.southbound ownership in the stock. it was the heaviest for trading. these are tencent exchanges. their trading has been increasing very steadily. the hong kong exchange was more even driven. the hong kong exchange proposed lifting rule changes. we saw a huge surge in southbound ownership. peaked in november around the time they held -- david: it had pulled back down. check -- they are at 150. 600, is that realistic? wendy: we have not published a forecast. [laughter] think, internet is very consolidated in terms of market share. one of the things we did in january was looking at the ecosystem of network devices and platforms of internet systems. as well as the carriers. and theat the u.s. china example. when the network is about to be built for under way. the winners from a perspective other companies. application takes off, it is the platform and the devices. from a smart perspective, i think we are reaching saturation did some of the markets are reacting to that. comparing the s&p in

itsaba put tencent and crosshairs. -- in its crosshairs.irst, to our lead, the battle of the smartphone. samsung has come up with its response. the company unveiled the newest off the heels of this announcement. apple is preparing to release a trio of smartphones. handset comes the same size of the iphone x. apple is already running production tests with suppliers. an official announcement is expected in the fall. mark, what do we know? mark: we know a lot. we know that apple is working on three new phones this year. the big story is it is a bigger phone. it will be the largest mainstream smartphone on the market, topping the note eight from samsung. there will be a not the -- an update and a cheaper model with many of the features that people like in the iphone x. emily: how will this compare? mark: if you look at the strategy, they have the seat of your low-end phones. the problem with the eight and a plus, thoset designs of the same that came out in 2014. this will alleviate that. a lot of the new outward facing, flashy features. it real

it is really breakneck competition between alibaba and tencent.ging to become this supervision is. is set to be valued around $30 billion already. already right now, they are occupying about 40% of the market share even though in , alibaba haster the upper hand. but they need to put in a great deal amount of money. now, that position would really help them consolidate that business. and what do you see the broader chinese e-commerce market playing out? lulu: remember, baidu wanted to join. but right now, as you can see, it is just alibaba and tencent ultimately. they will be focusing on artificial intelligence and their search business which is just their core business. it seems alibaba and tencent has the long-term cash to play out that. in hong kong, talking about last mile delivery. thank you so much. and that does it for this edition of bloomberg technology. a reminder we are live streaming on twitter. check is at weekdays at 5 p.m. in new york and 2 p.m. in san francisco. that is all for now. this is bloomberg. ♪ ♪ >> 7 a.m. in hong kong and

it shows tencent valuations. walk us through this. you have 43 p/e ratios for tencent.ba. this is limited opportunity to search. there you go. guest: as you rightly mentioned, baidu surge growth is mature. ai initiatives investments have come to fruition. it's not trading at levels that are much higher than what it used to trade at. , they areencent trading at historic highs. in many ways, this is a reflection of their profile. the growth of tencent and alibaba has been accelerating in the past few years beyond the traditional call of online games and businesses. it's been driving revenue growths. the revenues in the fundamentals for these companies. a lot of what we have been seeing is double selloff do not affect these companies because a lot of it is domestically. haidi: how is this shift in strategy? you see them making off-line acquisitions, online to off-line rather than off-line to online. is that positive? guest: the last couple of months, these off-line acquisitions have been accelerating. we have seen that with commercial properties. i think there are several

. >> so much for the f.a.n.g.s, what about the b.a.t.s., badu, tencent, and of course alibaba, how do you approach them the sense i get out in singapore is that they are leaps ahead of their counterparts in north north america. >> if you look at some of the innovations coming from tencent and baidu, they are invested heavily in technology. they have a key foot hold in china. this is a market that many u.s. companies can't touch now. the world's biggest smartphone market and mobile is key to tencent, alibaba and baidu that is starting to pop into other territories. >> arjun kharpal, thank you very much for that. >>> live pictures of the vote under way in the house of representatives. the u.s. senate has approved the budget deal, but it's too late to avert the slotdow doshutdown >>> as we go to break, here's a look at the u.s. open and how it is shaping up this morning following yesterday's selloff. the dow is looking to open up about 220 points higher after wild moves in yesterday's session. >>> welcome back to "street signs. i'm sri jegarajah. >> i'm joumanna bercetche. these are your

at alibaba and tencent, even though the valuations are rich, it is justified.fore. revenue growth of alibaba and tencent at 65% is the fastest in the past couple years. trading at three-year highs is justified. yvonne: just a bit of a shake. e-commerce companies, you mentioned alibaba. they have been spending quite a bit and making off-line acquisitions. this fit into the omni channel, offline online trend. we will's -- >> we will see more of this. there were a large number of acquisitions. one, is tove, address the bull market and address customers off-line. paymento raise online systems like alipay, and collected their customer data. the integration of off-line and online services will provide value to customers because it improves their experience. at the same time, it gives internet companies a much better picture of the user, because they cannot see on lined -- online and off-line consumption. it is used for advertising. yvonne: what does it mean for online advertising now that they have this treasure trove of data? >> the recent results from companies lik

yvonne: tencent probably? stephen: yes.her sector, the chinese economy, these tech titans are going face-to-face, dominating. >> i feel sorry for anybody in that 6.7% slice of pie. just go home at this point. the strategy as well, isn't it, stephen, that jack ma borders the line between the online and offline worlds. stephen: he has the new retail model he has been pushing. they will be logistics hubs. they will have these in every neighborhood across china, so they can get good to people's home within 30 minutes of ordering it on the various alibaba platforms. to do that, you need an army of delivery people, and that is why ele.me will get this distribution within 30 minutes. >> how big is this market, stephen? how fast growing, how big, is this? stephen: pretty big. the latest survey we saw was billionwas worth 10.7 dollars. the market as a whole. that was a 16% increase from the previous three months in the fourth quarter, so it is growing quite fast in double-digit growth, and this company is a ele.me., it started finan

backed by softbank and tencent — it's used by millions of indians. internet users with a new system to message, make payments and get sports scores without a data connection. but it's an ambitious plan for a firm that's burning more cash than it makes — that's something i put to the firm's chief executive. hike is different in the sense that it is we have a team and most of our cost goes into our services and people so that is not a concern with respect to hike. 0thers people so that is not a concern with respect to hike. others say it is a concern. very unlikely. at the end of the day, if you have an internet business, at such an early stage, when you look at all the other businesses in india, we are all in an investment phase. do you think you will have to raise money soon? it is likely we will go through two more rounds of funding. it is so early in the journey that we still believe a lot of work has to be done. have you had any approaches, people interested in buying your company? i cannot comment on that. facebook have had difficulties penetrati

you can see tencent is leading the gains.ng on the lunch break sent tencent shares up by 2.5%. a steel company in focus in india after its third-quarter innings -- earnings were up. tire is under for -- is underperforming. the overall kospi was up over 1%. , falling thehange most in nine years. investors reacting to the national stock exchange of india's move to end its impact. a rush of downgrades coming through, as well. when you look at the moves section, these tech players moving higher, a switch out coming through from energy players in the wake of the big drop in crude last week and weakness in the australian banking sector. a better day for asian stocks to wake up to on this shortened trading week. china and hong kong closing early for lunar new year. it is with conviction. another story, keeping a close infamous ritz carlton in the saudi capital real punch to the public after acting as a detention center for some of saudi arabia's richest men. billionaires were booked into the hotel for three months during the governm

have relationship with a big chinese player. >> tencent is enormous, and the reason for that is that internationally at global social media companies, they tend to be more monopolistic. if you look at russia, you look at china, you look at japan, there are individual social companies that dominate the market and are facebook on steroids. that is a very powerful position to be in. if you can partner with a company like that, you can get access to data large consumer , a base. -- the ceo recently left. how optimistic are you about twitter? the numbers are looking better, but we are talking about an industry that is saturated. >> it is. people are going to be looking rates, how many people are using the platform, what is happening around the world, bringing people to twitter who were purposely using it. but it is in a different place and there are questions for twitter that doesn't apply to other companies like cost control and profit margins, and that is going to be a challenge for twitter going forward. it is almost as if people have given up on user growth for them. it is going to be

tencent rising. the biggest boosts to the regional index.m. data showsartner's samsung coming out on top. a quick check on commodities. the oilfield little changed. a surprise drop in u.s. supplied. gold, set for a third weekly loss. yields arereasury set for an eighth weekly rise. we are counting down to the open in hong kong and china at the top of the hour. ♪ emily: this is bloomberg technology i am emily chang. ,citigroup as a financial powerhouse is the fourth-largest bank in the u.s. arm, can itir vc compete with silicon valley vc stalwarts that have been around for decades and find the new tech startup? the chief innovation officer joins us, along with selina wang. thank you so much for stopping by. let's talk about the purpose of citi's vc arm? are you looking to buy, build, partnered with these companies? >> thank you so much for having me. we think it is really important that citi that we focus on bringing the outside in. how do we make sure we stay involved in cutting-edge development? so much of that is present where entrepreneur

we see party committees being at alibaba and tencent. we see them billing at companies.ical centralization. it is increasingly difficult to even say china and market. rishaad: is centralizing these different assets of the economy on the basis of there being a lot of problems we are not seeing or is it a grab for power? christopher: i think both. rishaad: i was hoping you would go one way or the other. [laughter] christopher: that is a question. probably both. if we look at the china unicom joint venture they are doing with baidu, hourly baba, and tencent, it as a private partnership. bailing outy are china unicom going forward because they don't have the capital. at the same time, it is clear there is a degree of political centralization in the sense they are going to be censoring and baiduing the data that and alibaba and tencent have, much more than they have in the past. with anbang, is this the worst of it or just beginning? there is a good chance, and it is very difficult to say, but i think there is a good chance this is actually much more about the beginning than

two's, tencent 30's, yields at the front end, aggressively lower by 11 basis points.start to think about the potential for rate hikes in the near future and what it means for the front-end of the yield curve. further down, 30 year yields grinding up by two basis points. 3.11%. still ahead, the final spread. a read on retail and inflation. that is next. this is "bloomberg real yield." ♪ ♪ jonathan: i'm jonathan ferro. this is "bloomberg real yield." it is time now for the final spread. coming up over the next week, president donald trump expected to release his version of an infrastructure plan. we have global economic data coming up all week, including u.s. cpi and retail sales and global gdp reports, plus a reminder there will be chinese new year celebrations later in the week that will affect the asian market schedule as well. still with me, bonnie wongtrakool of western asset management, greg peters of pgim and rob waldner of invesco. robert, some big data points on the reflation front, but i am thinking of the asymmetric risk. friday wasn't primed for an inflation

tencent was the worst performer when you look at the next moves on the regional benchmark index.espread.ally no rate decision from the rba. the commonwealth bank is the largest listed stock in australia. there were very few stocks on the regional index to close in the green today. anna: thank you very much, juliette saly, with another update on those markets. stocks have plunged for a second day. u.s. futures continue to plunge. we are joined by bloomberg mliv strategist marc cranfield from singapore. help us put perspective on this. how much further will equity indexes need to fall for investors to believe the bull market is dead. is it still alive? will it limp back to life? or is it dead now? mark: good morning. it probably needs a few more people to say that this is not a healthy correction. we are hearing a lot of people say "don't worry, this is the natural pullback you need." this is the natural thing that happens and everything is fine. it probably needs a few more significant voices to say "actually, this is quite a serious correction and maybe you should be a bit more u

headlines not reflecting that this morning, saying things like the long goodbye and south africa's long, tencentob zuma to stand down. yes, he could address the nation today, oi’ he could address the nation today, or he could kick it into the long grass, we don't know. why is he being so intransigent? why is he insisting on not going when that is clearly what the party wants? he says he has done nothing wrong. in fairness, he has not been found guilty of anything. this is something the anc was keen to stress yesterday. you are right, there are these ongoing allegations of corruption from the past and also which came up during his presidency. i think with the anc going into election mode, there is a general election mode, there is a general election here next year, they would rather cut their losses. lebo diseko, for now, thank you. the netherlands‘ foreign minister halbe zijlstra has resigned after admitting lying about a meeting with russia's president putin. that triggered a vote of no—confidence in the country's prime minister mark rutte that rutte survived. anna holligan has more. holding ba

tencent getting whacked silly.000 on the shanghai composite+ -- composite? minutes when india opens up, that will take it straight on the chin. 00 onng on the open, 10,3 your nifty futures. haslinda: more than $600 billion wiped out in the chinese markets alone. ain thing, the large caps in banks. let's return to the winter olympics. alibaba, providing cloud computing services to move the event. our chief in north asia correspondent stephen engle is standing by. steve? steve: i get to pop indoors and get some warmth after all day outside the olympic stadium freezing. right now we have our own olympic gold medalist. a bigpens to run e-commerce company out of china, the president of alibaba. your first time partner with the olympics. sense of partnering with the olympics for such a large company as yourself? [no audio] from what it is today to a much more digital experience for the fans, for the companies and countries that participate, for all of the people that want to see this event the don't get to see it taking

you have tencent very much the backbone of the rally we are seeing in asian stocks.stocks fearing the worst across the region over 2%. tore are some bright spots be had. let's take a look at some of those players. in the investment, pointing to this as a rotation out of tech. will not be significant rebound in korean auto sales this year. in japan, some are escaping the sellout. both companies have enlisted profit outlooks. do not forget about earnings. that is what they are stressing. they have been very strong and should not be tanking. they have appointed quarterly profit that beat estimates this earnings season. japanese stock correction might be short-lived. the economy is good. we are seeing some of these little bright shoots of optimism because we still have those pillars that we have been discussing that drive the rally. today, it is pain across the board. david: i will call a correction. thank you so much for the markets update. now to your first word news. debra: north korea says it is sending a high level delegation to south korea this week for the opening

this as tencent recovers from the biggest loss in 2011.n earnings. after yesterday's drop, that has made some nervous. the kospi lower, extending losses for the for the day. the euro thatnshore yuan eyeing 6.25 handle, and the kiwi losing ground against the dollar despite the robust jobs data out of new zealand. the key we might need the central bank to turn hawkish at its policy meeting thursday. we are waiting for trade data from malaysia at noon and taiwan later today. david: the r.b.i. in the mix. thank you so much. the indian market just under 1% in the opening minutes. let's get more from our next guest. he joins us live on the line from mumbai. it is a busy day for you. you are at your trading desk. you guys are shifting out of risk mitigation. what are you looking to buy today? >> good morning. yes, indeed, a busy day. india got stuck in the global isatility, but the situation more fundamental in the sense that earnings growth is looking to recover, inflation is picking up, and the latest budget will increase inflation because of h

it and tencent are neck and neck.most always at the top. >> you were in an interesting position. maybe you do not care if it goes up and down. these confusing transactions, can you explain what is happening, giving up cash payments from financials, handing over a third of the equity? >> i have not had the chance to dig into the details of it. the original relationship has been complicated. that is part of the chinese regulatory environment about ownership of certain financial related entities. either way it is still a big deal to them. online payments is part of the entire story. cory: currently, what is more important? advertising or e-commerce? >> e-commerce is the business, the most profitable piece and contribute to $7 billion of this quarter. that is the bread and butter and it will continue to be so, and help fund other initiative you are seeing. cory: isn't it just advertising on the site? it is not actually shipping of goods. >> it is a meaningful part. one of the stories we saw, advertising spending now excee

tencent falling below $400 in hong kong. it has recovered a little bit of that, now down by 3.3%.r pressure. nissan rising after demand for a dungeon and fire game. this is bloomberg. ♪ emily: this is "bloomberg technology." i am emily chang. twitter has legitimately good financial news for the first time in a year. does this mean the social media giant is still ripe for a takeover? rumors have been aplenty. infamous tweet's had people talking a twitter takeover was imminent. we would like to answer that question. alex barinka is with us. still with us, david kirkpatrick. alex, where do we stand? who are the suitors and what is the likelihood of something happening? alex: you are right, twitter is the perennial name brought up in terms of targets out here on the west coast. this earnings report today potentially increases that probability for a few reasons. if you ask folks on bloomberg intelligence, they say that the parchment -- the departure of the coo and the fact jack dorsey is managing two companies boosts the potential of them becoming a target. talking to other sources on

the likes of samsung and tencent a continuing to gain.ial players, overall volumes are looking pretty loe wi in hong kong and china, but stronger in japan as markets like catch up following the public holiday. it is also worth noting today that we have india out of action. yousef: thought investors in the gulf mind find themselves in a tug-of-war as oil prices rise and central banks tighten liquidity. reiterating the bullishness with short-term -- by playing the, the thinking is spreading between the region. let's get more on the strategy and bring it out to qatar with the head of fixed income asset management. welcome back to the program. as you look at the region and the opportunities here, how are you positioning? what is the positioning looking like. >> i think right now when you have a period of turmoil and then a period of positioning, you have to look where the value is. if you look at the region versus theal e.m. last year, region significantly underperformed global e.m. that means the friendship .n.ween them and global e narrowed

. >> tencent is enormous, and the reason for that is that if you look internationally at global socialpanies, they tend to be more monopolistic. andlook at russia and china japan, it is the individual social companies that dominate facebook onnd are steroids. that is a power for position to be in and if you can part of the company like that, you can get access to data in a large consumer base. emily: are also reporting this week -- the cfo left. how optimistic are you about twitter? we are about an industry that is saturated. >> it is. be lookinggoing to at engagement rates and what is happening around the world. bringing people to twitter who were purposely using it. but it is in a different place and make a second or third player in the market and there's a question for twitter that doesn't apply to other companies like cost control and profit margins, and that is going to be a challenge for twitter going forward. it is going to be more traditional metrics that people focus on. uply: moore simply picked with private equity -- what are ed up.aring -- it pick up, butan bet on it or may

in hong kong we are seeing shares falling as much as 2.7% as tencent leads across the region. global funds are heading for the exit when it comes to stocks in hong kong, mainland investors are buying in common net purchases topping $1 billion in the first part of this session today. that could indicate that hong kong shares market could perhaps be better buffered from the global than in the past. we are seeing philippine bonds under pressure as well. trial --e bank is in central's rateco decisions on deck. the rba policy decision is due out on tuesday ahead of all the bonds on pressure -- policy -- aussie bonds under pressure. pressure,ude under extending losses after the u.s. count rose to a high. crude oil could be the next asset class due for a correction given this uptick. yousef: thank you very much for that. lifted some breaking lines hitting the bloomberg from the bank of japan. came under theoj spotlight after commentary made of hostile terms changes for reaching their inflation target. they are making it clear again the governor has no plans to make quantitative easin

news it is jumped on raising $2.5 billion by selling a stake to investors, including tencent. 81%, valuingain business at more than $10 billion. the new funds will help j.d. logistics expand delivery and warehouse networks around the world. the indian online shopping site paytm mall is opening a store in , using physical retail space to boost business. paytm mall parent -- the store will allow customers to browse before making purchases by an app. the store allows same-day delivery and will handle returns. board will meet to plan the company's next depth in dealing with the $121 billion bid. besides held hours of talks, but no indication whether they are closer to agreeing to the largest tech deal in history. last week, qualcomm rejected the final proposal of $82 a share, saying it it still -- saying it still undervalued the company. we are getting lines in the japanese finance minister, commenting on the yen, saying this strength is not yet strong enough to require intervention. very interesting. awaiting comments from governor kuroda as well. the yen has been trading at 15 months highs larg

santitarn: the next battleground for all of the key tech dragons for tencent and alibaba coming to wakeden tiger up. there is going to be a lot of competition. eventually, consolidation over the next year or so, a lot of entries from up just china, but maybe japan, maybe the u.s. guys as well, going to come in. that is going to change the scene a lot because it will unlock the payment constrained to more each game is. it will reduce the logistic barriers. those are the two ones that have been held back for asean and e-commerce. haslinda: the digital divide. , head of sathirathal emerging asia economics research at credit suisse. david: lots more to talk about. hope to have him back to talk more about that. in the meantime, let me get you the update about what is happening across markets. two things. are coming up. the market open in india and the collapsing we are seeing across the chinese mainland market, right? shares are listed in hong kong. that will enter a technical correction. a slight bid when you look at futures over on the indian markets. we are also on the lunch breaksg kong.

quarter of growth hang seng, shanghai composite and kospi seeing gains of 1.2% the hang seng helped by tencent shares a lot of these tech names in asia that sold off last week did rebound overnight. eurozone gdp hitting the tape, up 0.6% quarter over quarter up 2.7 % year over year. basically in line with forecasts. markets like what they can see you can see green across the screen with the dax up 0.7%. the french equity index up 0.6%. >>> checking in on commodities, we've been focusing on the oil trade, given the iea data as of late if you look at wti crude, $58.69 a barrel that's off by three quarters of a percent. ice brent crude, $62.35. off by a half percent. turning to gold prices, we had been talking about the idea that gold had not been seeing a real bid during the current market situation, up now a quarter of a percent. 1 1,332 is the last trade for goal let's look at how the dollar is trading against a basket of currencies yesterday it was weaker. that story continues weaker against the yen by 0.3% and gavagainst the euro, pretty much flat. a look at bitcoin, that's at about 8,000. 8

inon a team that plays league of legends, owned by riot games, and write games is owned by tencent, abehemoth from china. this is not a fad or something like pokemon, this is a really important phenomenon. young people get exposed to these video games. and league of legends is huge. it is growing quickly, and the videogame business at connecting people -- you have these communities, advertisers want to reach these people, and i told someone the other day that team liquid group, as a house. $4.5ld naming rights for million. house?or the ted: for the house. cory: how much did it cost? ted: as the players learn the new moves and the metta, the software changes, they will go in and share that information with their fans on twitch or youtube, and they will get hundreds of thousands of life people watching and go, that doesn't sound day, but that is bigger than cnn in primetime. so, what we are seeing is the birth of a new sports league. i believe that because of its global nature and the players, my son started playing his video and multiuser games when he was 12 years old, and now he is 2

the hang seng coming off of the session lows, getting a boost from the likes of tencent and hsbc.est results from hsbc, and we do have the stock on the rise, but paring earlier gains. you can see on the board as well, mgm china is rising ahead of its earnings, due out later today. we will get a pulse check before it launched its code thai resorts. -- cotai resorts. it is a fifth day lower for the bank after they reported a loan fraud.llion rishaad: a big story. -- yousef: a big story. they signed a $15 billion agreement to export supplies to egypt. will supply for a 10 year period. hailedn oil ministers this as good news. we put it up on the bloomberg. if you want to get the additional perspective in btv 684. more color, g # a record pop in the is really oil and gas benchmark, composed of 15 members. let's get more on this with monica, the chief economist at a bank. each of shouldn't reaction has been fundamentally changed the way you look at egypt's economy? monica: far more important for egypt's economy is the developments in its own gas market, where we are already seeing incre

a tencent rise, 0.2% to the upside crude oil prices up generally so far in early trading >> warren buffett'song-time business partner charlie munger says it is time for regulators to ease up on wells fargo. he says the bank will end up better off as it corrects a series of mistakes in treating customers. speaking yesterday at the daily journal newspaper meeting, munger also blasted bitcoin calling it a noxious poison. >> i detested it the moment it was raised the more popular it got the more i hated it on the other hand i expect the world to do insane things from time to time everybody wants easy money of course the people who are peddling things, taking money off the top for promoting the investment, they like it, too. these crazes keep coming and coming but who would want their children to grow up buying things like bitcoin? >> i guess we can add charlie munger to a growing list of individuals on wall street in finance that are again not really supportive of the cryptocurrency nonetheless, bitcoin down on the year, but it is higher by 20% over the past one week we are seeing this rebound i

revenue jumped 30% the company signed a strategic partnership with tencent during the quarter. >>> molinaealthcare posting a wider fourth quarter loss. they also posted their first annual loss in more than 15 years. molina attributes the loss to restrict sur restructuring costs. >>> fmc's fourth quarter results beat forecasts the profit from the lit yurm him business doubled thanks to expansion in china. >>> still ahead, crude realities. oil has tumbled nearly 8% in the course of the past month it's holding at $60 a barrel what's next for the energy market ke we'll get an analyst's take straight ahead. >>> and the dow is off 170 points in premarket trade. "worldwide exchange" will be right back >>> welcome back to "worldwide exchange." if you're just waking up, let's get you up to speed on the market action. we're lower now in premarket trade. dow off triple digits, 156 points to the down side is the implied open nasdaq lower by 18 s&p lower by 14. oil has been an interesting story for markets. a mixed trade here wti crude basically flat on the day. ice brent crude higher by 0.11%. $62.66

michael: there is so much publicity about er -- wechat and tencent, are those transferable to the westing? is there something that can appeal to the entire world? , thenceptually, yes problem with the companies is they want to become global but are also facing a letter resistance, political and awareness of the cultural adaptation, which a foreign company going to china met this kind of china -- challenge. conceptually, as we heard, it is brilliant. christian, we talk so much about this impact. do we see it in data from these companies? or is that swallowed up in general advertising? hugeat is a good question, question whether we do not manage to measure this entire revolution that happened in digital economy. we do not measure consumers. the average consumer in the u.s. a huge surplus on an annual basis by using facebook and other platforms, which we do not measure in gdp. there is a theory that the productivity decline we see in the data partly is related to not properly measuring gdp anymore because the market price no longer exist as it would for a tangible manufacturing good. fran

look at the hang seng here off 5% this is still positive on the year tencent, the tech hch heavyweigt dropping 7% on the session still plenty of selling pressure here back to you for now. >> thank you very much for that. early action in europe steve sedgwick is live in london for us steve? >> what is interesting about the european session, we're in the best position, ie where were where asia was, which was absorbing full declines before the turnaround the two-day decline on european indices at the moment is modest compared to elsewhere. the ftse 100 yesterday lost around 1.5%. we lost 1.9% so far today. so a cumulative 3.4%, which is mild by comparison to markets we're seeing stateside and in asia we must take a step back and say at one point the ftse was down to 6950 in today's premarket session. but rallied aggressively, a full 250 points as well so as we see the turnaround in the u.s., waiting for the u.s. market open, the market decline net-net has been relatively modest the dax, it was down around 4% at its peak losses today but rallied aggressively we were talking with nancy abo

i think it was tencent a few weeks back. they have a lot of money to spend on their future because they are diversifying revenue. he said he almost had no choice but to bet with all forces, because you never know which will be the big winner. as it made it more difficult or easier for you guys to do what you do now that you have that money coming from the big tech space, being thrown in all directions? >> the investing activities of nies isa compa undeniable, but there are tremendous capital flows from around the world, as well as china itself, into venture investing. interestingly, in 2009 -- let's go back to a time when markets risis,eemed to be in c there were 150 venture capital deals done in china. 5000years later there were deal done in china. today china represents about 65 billion of venture financing. not all of that is coming from tencent and baba. a lot of that is coming from multiple sources around the world. david: in terms of the talent we are seeing, we have seen an exodus out of silicon valley into china. has

come from needs to somewhere, especially when you are competing against alibaba and tencent.looking like? that is a positive move given that they need the money to finance other ventures. >> that's right. robin lee tried to buy the company and a deal that would have valued it at $2.8 billion. the board did not agree with that. analysts from cicc, jeffries, and numeral all value the business between $15 billion or more, and that is at a discount to netflix. haidi: what are the risks for operating in the content space in china? every once in a while you see the regulatory side of things cause problems. >> the two biggest risks at the moment, commercial and regulatory, the main one is you in up against real giants the space, alibaba and tencent believe video is crucial for their business going forward, so they are all pouring huge amounts of money in. by do does not have the cash reserve of its rivals, but needs to compete. the second unseen threat is regulatory, the chinese government could decide that people with tattoos will be stand or women who sit on beds are no longer all

one of the players that has been lifting the hang seng has been tencent. 3%.losed up but 3% -- up byeally well. it has been upgraded by morgan stanley. well.brewery is doing this is the largest from a japanese consumer company. it seems that people like that by back from the beer company -- buybackback -- that from the beer company. manus: u.s. inflation rose the most since 2005. yields topped out at 2.9% overnight. the dollar dropped, it continued that against its major peers. joins me now. last week we had this almost terrorizing moment in the bond and equity market. cpi, the market likes it, as an it was not -- as in it was not spooked by it. what is going on? some of the commentaries last week were breathtaking. you would have thought the world was ending. you, i met some of the other people that i meant some of the -- i did not mean you, i meant some of the other people. when we get the corrective behavior, i would argue because large investment in january, pop. we pop -- off we off ever soe fall slightly, normal behavior as one might call it, out they come. it is extremely expe

another important thing to keep scale, on a global emerging markets tech, alibaba, tencent contributingportant to note that should earnings disappoint and something happened to these companies, the wider global equity picture will get someone ugly because it is so reliant on the gains from these socks. anna: -- stocks. anna: you are not too worried about current performers as well as -- what is the risk? i think the risk is not on the fundamental side, but a pure market risk. when you look at these factoring indices, a lot is dominated by factor investing -- factors like quality, growth, momentum. the heaviest weight is always in tech. when you have a genuine 6% setback in tech and these indices need to adjust their waiting lower, they have to sell more tech and the tech goes even lower than some investors will -- de anna: the dominance of tech. max: if we have a setback, these strategies have to adjust their waiting lower and it could get a little downward spiral. any: do you see similarities between what we are seeing now and what we had going on in 1998, 1999 with the internet bubble

our editor covering the story, tencent. by thejoined in london energy funds manager. see you. two big things for the world to deal with. i want to bring you the front of "daybreak," a beautiful picture. mario draghi with the hawk on his shoulder. this is about 2018 in the changing dynamics of central banks. is that overacting the tightening talk? >> morning. i don't think it is. i think this is a legitimate question in the context of europe and i think to fully understand what's happening in the rates market you have to go back to 2016 where there was the apotheosis of all the negative interest rate speculation which caused a huge rally in the government bond market when you had brexit and when people capitulated about their long-term beliefs. i think the entire backdrop is starting to unravel stop we are starting to reinterpret the global economy, it is now one of stability and persistent growth. the better story of china, europe is surprising positively, so it is absolutely legitimate to talk about monetary timing. anna: what is the risk, then, about the monetary ti

it is no different to what we've done with tencent in asia. got the big distribution platform, our technical expertise, our algorithms, and you combine them and you can disrupt the market. francine: are we fully aware of the space some of these disruptors can take place? you were one of the first ones to tell me that twitter is like the third-largest country in the world. maurice: and everything is going to be disrupted. since uberization, as i call it, happen, you can expect that most businesses will be disrupted. it is up to the ceo's, the boards, and executive committees to take the right steps early on , and sometimes be too early, but it is better to be early than to be late. as you mentioned, everything has changed. the behavior of consumers has changed. the way they are dealing with --ir banks, with their everything is changing very fast. you need to adapt. francine: do you worry about facebook or amazon just launching an insurance company? what would that do to your market share? mark: there were plays by google in singapore. a lot of

tencent dragging the most in asia and sending the hang seng to a third day of losses. while global funds are headed to the exit in hong kong, they have topped $1 billion today. are losing ground, we are seeing shares in shanghai swing. let higher by financials and resource stocks. it is providing the biggest boost in shanghai. that stock is planning to a record on the shanghai comp. in tokyo, honda escaping that stock route thanks to its profit outlook. honda is one of 10 stocks rising on the nikkei 225. in hong kong, that is extending gains. resuming the advance. allure toding some the stock. anna. manus. anna: thank you very much. let's go back to our big story this morning. witharted with u.s. bonds asian equities within the red. futures pointing downward. futures pointing downward. the cio of global equities, good morning to you. correction?althy does this make you feel more comfortable or less? >> more comfortable. at this stage, quite concerning just the way markets keep going up. the length of the bull market without any correction at all was really quite unusua

rails other investors include johnson and johnson and tencent.nd that is her business flash update. julia: investors are willing to accept lower returns according to carlos chairman david rubenstein and he spoke with matt miller at the conference in berlin and discussed changes facing the private equity industry. there is no doubt prices are high and investors want to get the money invested. if you invest in high prices you get lower rates of return but investors are willing to accept lower rates returned to get the money invested, so if you have the money, which rather have so percent or get a 14% rate of return, being lower than 20% but much higher than zero, some to investdo want money and we can invest money and we can invested and get a good rates return. >> it seems that a lot of private equity firms are having trouble figuring out where to put the money because they have to invest money and we can invest money and we can invested and get a goodraised 3 trillion in the lat five years and are sitting on one $.7 trillion in cash, what did the

and in china, alibaba is ramping up competition with tencent over food delivery.e matter, alibaba has agreed to buy the shares that they don't own from investors like baidu. the giant has had a 23% stake. it was guided $6 billion last year. and that is your bloomberg business flash. taylor.: thank you, let's get back european politics. tilly heads to the polls on sunday. -- italy heads to the polls on sunday. they said contracts will be added to all parties. over in germany, chancellor angela merkel has nominated an outspoken critic to hurt cabinet. -- two her cabinet. let's get back to carsten chief economist and steve wieting. italy is too complicated for the markets to worry about it. should we also ignore germany? but could the convictions of angela merkel significantly change depending on what she agrees on? carsten: we should worry about germany because there is a high probability that the members will say no to another grand coalition, which will lead to new elections in germany. that is something that has not been priced in by markets. in the longer run, g

largest slice of online food delivery in china and puts it directly against another company backed by tencent across the country. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm paul allen. this is bloomberg. david: all right. when you look at the bank korea when of the top stories today, leaving us craving for more. they did leave rates unchanged 1.5%. they hiked then back in november. they said there is no urgency to follow up on that at the moment. bond markets signaling their next move will be on the way up, but there is no way of telling when that move will actually happen. that being said, he is not expecting outflows if and when the fed hikes rates and takes -- roughly at the same level as their policy rates, above were south korea is. governor lee says maybe not yet. made it: the be ok clear its response will depend on whether it is good or bad for the current economy. jay powell heads to congress to give his first semiannual report as fed chair. he may find it tricky to rein in economic optimism. the fed already said the

tech shares leading the regional advance, tencent in hong kong, the chinextps in rising the most. in the face of the rising u.s. rig count. haslinda: some relief in the asian markets. what stocks are you watching? sophie: let's pull up the board. some of the big movers in the region here. soaring after returning to the black in january. with otherlimbing airlines on anticipation of a lunar new year holiday boost. jb hi-fi leading to decline. the singapore exchange dropping the most on doubts that it will be able to offer india derivative projects. in focus afteria reporting a surprise quarterly loss friday. years hasfirst in 17 bad loan provisions surged, putting a spotlight on distress in the indian financial sector given underreporting. david: that is a hot topic when you look at india. it's not just the bad loans. we did not know they were there. we are getting some names sophie was pointing out getting underway. when you look across sector groups, that one is lagging behind. in the meantime, india's exchanges, regulators, have unheard -- on earth $3.6 billion in bad loans. sta

the company signed a strategic partnership with tencent during the quarter. >>> barnes and noble is laying off staff after a weak holiday shopping season. the company is not specifying the number of cuts exactly last month barnes and noble said holiday sales fell 6%. online sales dropped 4.5%. this is a small company. barnes and noble's market cap is below 400 million. who said that at the "new york times" yesterday you got ten years, you got some terminal disease or something? ten years before print is gone >> thompson said that. >> you didn't see his? it was like the lead story for drudge >> drudge is where i get my news from >> it was your ceo that said it on cnbc. drudge or no drudge -- >> ten-year -- what was this >> i don't know. look it up >> it may not be profitable to print the newspaper. >> what were you doing >> i was writing a column, working. i had stuff going on. >> you're lucky that you're working here as well as at the "new york times," this is an insurance policy it will be gone in ten years >> he didn't say the "new york times" will be gone. >> the print >> unfortunately