>> the amazing thing about tencent, every time you think tencent products is reaching the aging stageg else. the surprise we got in the past six months is this embedded feature in the chat system. it opened a new door for tencent to connect their online merchants and users with off-line services. the traffic has more than doubled in the past three months. i think with this program, that will probably revised the chat wichat, and offer more in e-commerce and off-line services. was a great chart in the diverging fortunes, looking at tencent valuations versus facebook, and you continually see that. more and more analysts are talking about paying more attention to tencent, alibaba, and baidu. do you think the problems we are seeing with facebook and other tech companies, being an opportunity for these tech giants? >> in terms of divergence, it is level,at in terms of the tencent is trading at 40 times this year versus facebook, only in the mid-20's. however, i think this valuation is consistent with earnings growth the companies can deliver. if you look at topline growth this quarter, it

as facebook foals, tencent is seen as more valuable? that's right.'s facebook. it seems very appropriate at the moment. the two social media giants have been neck and neck in value for quite some time. but now the gap has widened after the crisis. billions, tens of billions of dollars in fact have been wiped off the value of facebook. and of course as facebook is dealing with this crisis, china's largest corporation is riding on a huge wave of success. it has got some new hip games, a growing ad business, and the momentum is still growing for a wee chat, the all in one messaging service that drives it. tencent is just about to release its earnings. this is a very important timing. investors expecting some strong results. tencent is projected to report a 56% growth for the last quarter of last year. this is bound to be a positive impact on the tencent stocks tomorrow. as a result, we could even be seeing a bigger gap between tencent and facebook. yes, we will watch this space closely. let's look at marketing general. we had a day of no action at all i

but tencent is holding back.er areas, are the areas of company gains which a very solid but there could be a swing factor any time. gains could be seasonal. you can have a half game or cold game. operatingt of not highs. they are an investor in spotify and they are about to do a listing. there are a lot of other areas where they are invested and that could flow through the bottom line and may not show up on the revenue levels. through the line, we could see things top up and investors should be careful. tim, thank you so much. we have a look ahead at the tech but he missed tencent earnings. up next, focusing on the income, this week's media and how the governor plans to steer the biggest change in decades. this is bloomberg. ♪ haidi: tom haidi lun in sydney. betty: tom betty liu in new york. gathering of jay powell is over. with moreays is here on what to expect on the conclusion of this two-day meeting. they are saying dot plots don't matter, -- >> i would say dan is in the minority because everyone is so focuse

she is an analyst looking at tencent.e will be looking at why some analysts are seeing tencent's superhero status slipping away. why operating margins actually slid in the fourth quarter. this is bloomberg. ♪ haidi: i am haidi lun in sydney. a quick check. anbang insurance seeing policy redemptions stabilize after a surge in the days following its seizure by the government. we are told policyholders rushed to redeem after the announcement on february 23, but the balance or pace of redemption has fallen back to normal levels. confidence is key for the government as it tries to stabilize the $316 billion in sure. hopes of cementing its position in the united states has been hit on security grounds. best buy will not order any more smartphones until current inventory runs out. other companies are viewed with suspicion by washington. the trump administration and others say the products pose a threat to national security. a full-year operating profit falling to present short of the average analyst estimate, however, net profit

tencent is about to release it annex and, the many it is seen as the darling of china?emember it was only last november when tencent, nine as china's facebook surpassed facebook and in the beginning of march they were neck to neck, but, as you have been reporting, shares in facebook have well and sharply over the last two days, wiping out some $50 billion in market and as a result tencent is now worth a lot more than facebook. acra free will be reporting its results later tonight and we are acting some very strong figures. —— tencent. i shot that is going to have a positive impact potentially seeing a wider gap between the two. german prosecutors have raided the headquarters of bmw as part of an investigation into the suspected use of emissions cheating software. prosecutors said about 100 police and law enforcement officials searched the luxury carmaker‘s munich headquarters and a site in austria. the us federal reserve ends it two—day meeting about interest rates today. investors are focused on how many rate increases it may roll out in 2018. the central bank is expec

we will also be looking at tencent. a real mixed bag the tencent.s, a bit of a mess. us.way, she will be joining she is an alice -- and analysts. a little bit of what is on his way. here is how we are trading right now in asia with some of the markets that are open. the nikkei coming back of and rebounding really after the holiday. futures also showing gains across the board. ahead,as we look hopefully what we are seeing right now will bode well. up.res are on their way it for "bloomberg daybreak: asia". ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. oh hi sweetie, i just want to show you something. xfinity mobile: find my phone. [ phone rings ] look at you. this tech

tencent is listed in hong kong. data breaches, the executives, were asked about the potential of a data breach at wechat, with those billions of users. way that canaid no happen at tencent. haidi: thank you so much for that. will have more analysis on tencent earnings later on daybreak asia. research isasia joining us with her views on the risks to growth in the asian tech behemoth. and a exclusive interview that that the has coming up. betty: on how the trump aluminum tariffs can hit the beverage industry. this is bloomberg. ♪ betty: good morning, i am betty liu in new york. anheuser-busch says they are on tap the announced the 2025 sustainability goals. bloomberg tv executive editor spoke excessively with the ab inbev ceo, asking about his plans to utilize renewable energy and global growth in mexico. amazing,exico has been we have been there for four years and we have had high single digits growth. and today we cap mexico -- not only do domestic markets do well but the export side of the market is also doing well

tencent is listed in hong kong. tencent is spreading its investment, even in europe.cent put money into a syntax startup taste in germany called and 26. this is country leading to profits. you say about listing at home, what about the general focus of the business going forward? are people worried about investments they make in these areas? this is a heated competition with the likes of alibaba, which creates its a ecosystem in china had globally. tencent has acquired more than 600 companies, acquired or invested in more than 600 companies. they are definitely going beyond their bread and butter in gaming and social media, into payment and financial services and other developing parts of the world, including europe. caroline: fascinating stuff. stephen engle, thank you for getting up so early to join us. that does it for this edition of "bloomberg technology." check thursday's show. we have a chief technology officer joining us. let's take a look at one last chart. ag. the stockasht has fallen the tech is trading at -- at a premium. this is bloomberg. ♪ ♪ haidi: mark

>> for tencent? rishaad: yeah.perating margins and the basic business with its games. china has cracked down on its games and say it is addictive for children. these are the kind of issues they will have to find a way out of, but in terms of usability and buying assets overseas, they are wrapping up those kinds of things. there are issues, but given the market share is so big , they might be able to ride it out. rishaad: and a huge market internally. you don't even have to be a broad. thank you very much. just a quick feature i want to take about on the bloomberg, our interactive tv function, tv go. you can watch us live and have a look at the interviews we contacted earlier. you can have a look at some of of thections and be part conversation by sending us instant messages during our programming. this is for bloomberg subscribers only. check it out at tv . ♪ coming forhits keep facebook. mark zuckerberg has been summoned by congress to explain the data scandal, saying the latest comments leave many questions.

of course, tencent is listed in hong kong.es, stephen, it is fascinating actually how much tencent is spreading its investment. even over here in europe, just earlier this week, we had tencent put money into a thin tech startup based in germany called n26. and some of these are listing and managing to contribute to overall profits, but you say about listing at home, what about the general focus of the business going forward? are people worried about investments that they do make in these areas? stephen: well this is a huge competition with the likes of alibaba, of course, that create this ecosystem, not only in china but globally. alibaba maybe has a head start on global. but tencent, they have acquired more than 600 companies or acquired or invested in more than 600 companies, so they are definitely going beyond their bread and butter in gaming and social media, in payment and financial services in other developing parts of the world, including of course europe. caroline: bloomberg's chief north asia correspondent stephen eng

of course tencent is listed in hong kong.ne: stephen, it is fascinating how much tencent is spreading us its investment. even in europe, tencent put money into a startup based in germany called end 26. overalll contribute to profits. use a listing at home, what about the business going forward? are people worried about investments made in these areas? stephen: this is a heated competition with the likes of alibaba, who created the ecosystem, not even in china but globally. alibaba has a head start globally. they are invested in more than 600 companies, so they are definitely going beyond their bread and butter in gaming and social media in developing parts of the world, including of course in europe. bloomberg's chief asia correspondent stephen engle. coming up, back to the fallout of the facebook data story. what is the political response in the u.s. and europe? that is next. this is bloomberg. ♪ mom, dad, can we talk? sure. what's up, son? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's

obviously they have tencent music. investment from tencent could catalyze more global growth for spotify? spotify made an investment or share swap with tencent in the fourth quarter. so spotify does own a piece of tencent music. that is their angle to getting in the china market. spotify is already operating in 61 countries today. they do have a global audience and footprint. they have more than one billion smartphones operating in the markets today and over 3 billion folks that listen to the radio. it is a global business already. as it relates to china, their angle is the exposure to the tencent music aspect. emily: we have also been talking about the vision fund, they made a $500 million plus investment into doordash, a company that had struggled to raise money. do you think softbank is good or bad for the tech startup ecosystem? nimay: in general -- we thought about this a lot and had debates internally -- the idea of a investorwell oriented is well-received by entrepreneurs and investors combined. softbank has dem

about we've spoken tencent's relationship to spotify.ink their investment could catalyze more global growth for spotify? >> they made a share swap with tencent in the fourth quarter. so spotify does own a piece of tencent music. that is their angle to getting in the china market. spotify operates in 61 countries today. they have more than one billion smartphones operating in the markets today and over 3 billion people who listen to the radio. it is a global business already. but with china, their angle is the exposure to the tencent using aspect. -- music aspect. emily: they just made a over $500 million investment into doordash, a company that was struggling to make money. isn't softbank good or bad for -- istartup ecosystems softbank good or bad for these tech startup ecosystems? in general, this is well received by entre nous ours and investors combined. softbank has demonstrated their ability to be long-term. they were investors in alibaba for more than 15 years now. ismany ways, softbank offering an alternative to some of these busi

tencent edging for a new record.kdown showing you energy, energy gaining over 1% on the index. this as we see energy stocks grain -- again grounds. opec bringing expectations from market rebalancing. coal players on the rise. whitehavenney, leading gains after morgan stanley increased an increase in prices through 2019. environmental protection among the key themes. let's check in on chinese stocks. snapping of two day drop, the wind player at a high. a company that makes electric automation devices -- keep in mind, the big boost of industrial robots, by 2020. up since 2016. recall what they spoke of yesterday in terms of themes in china. chinese utilities have been going bananas. they will be anticipating the release of the battle plan from beijing. alas look at currencies. the mexican peso and canadian loonie gaining on our poor the u.s. is stopping demand on autos from those countries. take a look at the korean won. uncertainties surrounding the korean economy are high. moon says a summit between the north and the

of alibaba, baidu and tencent.oost the valuations these companies, and retail investors are very excited to get in on this and yet. emily: peter, some folks want a pleased about this. who are they? peter: there is competition for these listings certainly area right now, hong kong is competing to draw more attention. historically, they have not -shares, sohave dual they are competing aggressively for this business. you cannot have do well listings in places like hong kong and mainland china, or the u.s. and mainland china. emily: selena, there are big tech companies in the pipeline, tencent music, xiaomi, how do we expect those companies in particular to proceed? selina: the changing regulations both in hong kong and mainland going to play a big role in what they ultimately does ride. tencent music entertainment, is considering a dual-list thing. tencent as we know, is already listed in hong kong. stock exchanges will do everything they can to attract: companies, to become the global leaders. hong kong has fallen be

we have to look back to the company that sold back to tencent a couple of years ago.hat was $10 billion. last year, one of the biggest ones in europe was about valuation of $5 billion. hero.as deliver a we think of the recent ones that have come to the market and some of them don't live up to the heavy hype that spotify is going to hit. russia, germany's rocket internet, all about 5 billion. this is crucial, and more companies want to come to the market. funding circle in london also wants to tap the public market. funnel money to back into the ecosystem for smaller startups as well because some big european vcs are going to cash in on the deal. the local ones, ones that were founded in sweden. companiesgoing to be that are also local to london. these companies will make money if they sell shares and will funnel it back in two european tech. dropboxe saw a few days going the traditional ipo route. that is one people are excited about this year, but do you think other companies will take this nontraditional listing route or is this an anomaly? they are looking at it an

we are watching this tencent story develop. matt: absolutely.e i have pulled up this graphic dashboard. they ended discussions about buying part of kaiser's consumer health business. i think that the volume is fascinating. you see the blue square here on my graphic dashboard. the volume right now is seven times the 28 day average. there is a lot of activity in reckitt. guy: a lot of activity over the last 24 hours in tencent as well as. one of the biggest investors actually comes out of south africa. ers announcing that it is going to reduce its holding in the business. and is going to sell up to 190 million shares. we will watch that story and see how the tech sector takes that one. interesting to see how they will redistribute that money. london looks lovely. up next is "surveillance." this is bloomberg. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent networ

tencent is about $72 billion more valuable than facebook.ally coming to us from singapore. president trump's tariffs have put america at loggerheads with china and the eu, its two biggest trading partners. former treasury secretary jack lew is the latest to warn about a trade war. tom mckenzie spoke exclusively with lew in beijing. >> putting a global tariff on steel and aluminum, we are the exemptions now build up. to put a tariff on canadian steel did not make sense. our european allies are asking the same thing. there is the question about the u.s. place in the world. anna: united states federal reserve policy decision, a hike is seen as all but certain. will they stick with three hikes in 2018 or shift to four? what will jay powell say today? what kind of message will he communicate? wanted -- he will want to communicate more of the same. will not want to change policy too much. he will want to be seen as serious about controlling inflation. the message he will give will be slightly hawkish. where we are on financial decisions in the uni

we have to look back to supercell, who sold out to china's tencent.t was bought a couple of years ago and that was just $10 billion. last year, one of the biggest ones we got excited about in europe was a valuation of $5 billion. that was delivery hero in germany. we think about the recent ones that have come to the market, some of them do not live up to the heady heights that spotify is going to hit. inhink names like yamdex russia, a rocket internet in germany as well, r billion dollars or $5 billion. -- our $4 billion or $5 billion. this is crucial. also, more companies want to come to market. funding circle wants to tap the public markets. this is going to funnel money back into the ecosystem for smaller startups as well. because some big european vc's will cash in on this deal. the local ones, lungs that were vc-funded inwere sweden other companies, locally , in london, wellington, axel, these companies will make money as they sell their shares on listing day and they will funnel it back into european tech. it is crucial. emily: alex, we saw drop

tencent numbers are about to drop.how you the bloomberg and show you what it is telling us about the open. decentlyill have a strong start and london, not. up about .2% in europe. let's get into the numbers and show you what is happening in europe. .61 is where the london market will open up, i think it will be .1% to .2%. powell's first meeting coming up for the fed. the cac qaurante, the smi. the ibex, there we go, up by 0.2%. thisfinancials are big morning. francine lacqua talking to jes staley from barclays, a 5.2% stake being taken there. metals are starting to break down a little bit at the moment. impertial softer this morning. divergence happening in the commodity space. industrials looking little bit softer. let's go back and show you some of the numbers that you can find on your bloomberg. we are just waiting for the system to get up and running. as predicted with the fed looming large over us, you can use the tliv function, and you can get it on the tv . at the moment, matt,use the eurn markets, marking

we have to look back to super cell, who sold out to china's tencent.t was bought a couple of years ago and that was just $10 billion. last year, one of the big ones. it was a valuation of $5 billion. that was delivery hero in germany. we think about the recent ones that have come to the market some do not live up to heights , that spotify is going to hit. russia, germany, $4 billion, $5 billion. this is crucial. also more companies want to come , to market. funding circle wants to tap the public markets. this is going to funnel money back into the ecosystem for smaller startups as well. vc's willig european cash in on this deal. local deals, vc funded, other companies, locally to london, wellington, axel, these companies will make money as they sell their shares on listing day and they will funnel it back into european tech. it is crucial. emily: alex, we saw dropback, to route.he traditional ipo do you think other tech companies will take this nontraditional listing route or this is an anomaly? alex: i think tech companies are looking at it and it wil

tencent music is also considering a dual listing, and is already listed in hong kong.tock exchanges are going to do everything that they can to attract these companies and to become the global leader here. know, has as we really fallen far behind new york in terms of attracting these companies, and they want to get ahead of the game again. emily: peter, do you have any thoughts or inklings as to how those potential listings could play out this year? it is interesting, certainly, the big prize will be xiaomi this year. as selena mentioned, if they are leaning towards hong kong as their primary listing but they missed in mainland china as well, it gives them a chance to tap into that consumer demand to give customers of xiaomi an opportunity to buy into the shares, and that could help their valuation quite a bit. it will be interesting to see how that one plays out in particular. thank you to peter elstrom and selina wang there. still ahead, we sit down with google cloud the ceo. how she is doubling down on innovation. and a reminder that all episodes of bloomberg techno

at the same time, companies like tencent, now the most valuable company in china, is able to serviceservices in the u.s. that is an issue that ambassador to china has raised in the past and it may get more attention because of these tensions. emily: is there any likelihood that would change in the future? now we know the chinese government has removed this two term limit for the chinese president, which means president jinping could be in power for many years. the communist party in the last two years has not budged on their position of censorship and how that impacts some of the u.s. technology companies. if anything, they have gotten more strict. peter: it certainly doesn't look that way. for a long time there was the expectation china could not maintain censorship and controls over the internet. but that has changed in the past few years. xi has imposed stricter controls and you will see at the end of this month, new controls going into effect on the internet companies that operate there that have to do about data sharing and government access to data. they are moving in the opposi

we have to look back to super cell, who sold out to china's tencent.hat was $10 billion last year, one of the big ones. the valuation of $5 billion. in germany, recent ones have come to market, some do not live up to heights that spotify is going to hit. germany, 4 billion, $5 billion. more companies want to come to market. funding circle wants to tap the markets. this is going to funnel money back into the ecosystem first dollar -- for smaller companies as well. local deals, the see founded in funded, other companies, locally to london, wellington, axel, these companies will make money at they sell their shares on listing day and they will funnel it back into european tech. it is crucial. dropback, towe saw the traditional ipo route. do you think other tech companies will take this nontraditional listing route or this is an anomaly? >> tech companies are looking at it and it will come down to the evaluation process. the risk is the stock ends up being volatile. the valuation will be set on listing day, depending on how many shareholders want to sell,

tencent music is also considering a dual listing, and is already listed in hong kong. stock exchanges are going to do everything that they can to attract these companies and to become the global leader here. hong kong, as we know, has really fallen far behind new york in terms of attracting these companies, and they want to get ahead of the game again. emily: peter, do you have any thoughts or inklings as to how those potential listings could play out this year? peter: it is interesting, certainly, the big prize will be xiaomi this year. as selena mentioned, if they are leaning towards hong kong as their primary listing but they list in mainland china as well, it gives them a chance to tap into that consumer demand to give customers of xiaomi an opportunity to buy into the shares, and that could help their valuation quite a bit. it will be interesting to see how that one plays out in particular. emily: thank you to peter elstrom and selina wang there. still ahead, we sit down with diane greene, the google cloud ceo. how she is fending off the threat of amazon and doubl

. >> there are some big tech ipos in the pipeline, tencent music, how do we expect those companies inr to proceed. >> changing regulations in both hong kong and mainland china are going to play a big role. .0 set music -- tencent music [inaudible] fall hikehas fallen new york in terms of attracting these companies. thoughts as to how the potential listings could affect it? prize isnly the big going to be xiaomi this year. if they do list in mainland , it gives them an opportunity to buy into the shares that could help the valuation quite a bit. it will be interesting to see how that one plays out in particular. >> thanks to bloomberg's peter and selena. still ahead, we sit down with diane greene. aunt, a reminder that all episodes of bloomberg technology are now live streaming on tweeter -- twitter. this is bloomberg. ♪ mom you called? oh hi sweetie, i just want to show you something. xfinity mobile: find my phone. [ phone rings ] look at you. this tech stuff is easy. [ whirring sound ] you want a cookie? it's a drone! i know. find your phone easily with the xfinity voice remote. one

profits rolling in for china's tencent, but costs are piling up. >> they are paying for a lot of contenthallenge alibaba. mark: this is bloomberg. ♪ ♪ mark: this is bloomberg. global tour to the of the business stories. ♪ >> china has named its first new central bank governor in 15 years. .he deputy will take over this is a continuity choice. >> it is. he is been a deputy governor for a decade. guess worked for that. he's been there since 1997. an interesting time to take over because the pboc is in a stronger position as an institution. it has powers now to change and right regulations. in many ways, it has lost some of its clout because it will now have to report to the chief economic advisor who speaks directly to the president. less autonomy than the central bank had previously. ♪ >> telecom titans, taking washington. ceos from at&t and time warner in a court defending their $109 billion deal. the doj has sued to block this merger. each side gave opening statements. tell us what we need to know. started, what they claim is that as a result of this merger, the 90 million allcribers to

tag from 538.ice this after tencent indicated it spending plans could impact its profit margins. china mark -- china mobile -- we are awaiting noble group to resume trading in singapore, currently in a hold. company that is trying to take over, goldilocks has in approached and the board said it is satisfied it can continue as a going concern. did say winding up the company will be difficult. thank you for that breaking news. juliette saly in singapore. fomc raised the benchmark rate a quarter point. it forecast a steeper path of hikes for 2019 and 2020. policymakers are divided on the outlook for this year with the dot plot one-month away from forecasting a median of four hikes. policysignaled continuity by saying the decision taken marked another step toward the scaling back of monetary accommodation. >> as you know we decided to raise the target rate for the federal funds rate by one quarter of a percentage point. several factors are supporting the outlook. ongoing job gains are boosting incomes and confidence. foreign growth is on a firm trajectory and financial condition jerm

the likes of tencent winging on hong kong. nintendo on the nikkei in japan.own by 2% even though we have started to see some yen weakness. ufc in the uyou have seen the australian close. we are awaiting a decision from thailand. there has been some uptick in the asian currencies, including the korean yuan, as we have gotten these geopolitical tensions. stocks are being sold off and the regional index back to where it was on friday. in terms of stocks we are watching to the upside, a lot of the stocks are rising on the likelihood that if there is reduced tension between north and south korea, perhaps the north would invest on some ballistic missile technology. you have seen the green energy fall,ies like byd predicting a 92% drop in first-quarter profit. china cut some of these subsidies for green energy producers. on the upside, this is another hong kong ipo, media company soaring by 533% at the moment. showing you just how much there is for this ipo market in hong kong. manus: thank you very much for the roundup. the latest on the markets. coveringe been say

emily: selena, there are big tech companies in the pipeline, tencent, how do it expect those companiesd? the changing regulations in hong kong and mainland china are going to play a big role. they are considering a dual listing in hong kong as well as china, and tencent music and entertainment, we heard is considering a dual listing. already listed in hong kong, and the stock exchanges are going to do everything they can to attract these companies and gain -- become global leaders. hong kong has fallen behind in terms of attracting companies and they want to get ahead of the game again. emily: peter, any thoughts or inkling about potential listings that could play out this year? interesting, the big prize -- we have reported that they are leaning towards hong kong as a primary listing, and if they do list in mainland china, they will cap into that consumer demand that gives customers an opportunity to buy into the shares and i could help their valuation quite a bit. it will be interesting to see how that one place in particular. peter and selena, thank you. from netflix to amazon, how

talk about the new investors coming in to europe as just today, have a company in germany joining tencente softbank vision fund putting phenomenal amounts of money into companies in the u.k.. is there a lack of capital in europe or is everyone getting into the party? davor: we think there is a funding gap in markets, and this is where i think you see some of the new players coming into the market because they see that increasingly europe is building global champions. spotify, some of the global leading companies are homegrown in europe. we are seeing a lot more international capital interested in investing in these companies. will we also see is a lot more new entrepreneurial ventures being started. many more than we saw a decade ago. caroline: what about the likes of spotify coming to the market and listing to the u.s.? -- you havenefit funding circles talking about a ipo. what about your own portfolio? davor: we do think the ipo is a good route, because oftentimes people don't sell into the ipo they are fundraising for continuing to grow the company. a healthy ipo market is good for all

ishave heard tencent considering a dual listing. are elicited hong kong, the stock exchange will do everything they can to attract these companies and become the global leaders here in hong kong. they have really fallen far behind in new york in terms of attracting these companies and they really want to get ahead of the game. do you have any thoughts about how the listings could play out this year? >> it is interesting, the big prize will be xiaomi. we have reported that they are leaning toward hong kong as their primary listing but if they do list in mainland china, they would tap into that consumer demand and give customers an opportunity to buy into the shares and it could help their valuation quite a bit. it would be interesting to see how that one plays out in particular. thanks to bloomberg's peter and selena. i have, we will send down with diane greene. how they are doubling down on innovation. all episodes of bloomberg technology are now live streaming on twitter. check us out at 5:00 p.m. in new york and 2:00 p.m. in san f

profits rolling in for china's tencent, but costs are also piling up. >> they are paying for a lot ofvideos or music to challenge, of course alibaba. ,mark: this is bloomberg. ♪ ♪ "bloomberg best." i'm mark barton. let's return to our global tour of the weeks top business stories would china's central banks. ♪ >> china has named its first new central bank governor in 15 years. the deputy governor will currently take over. this is really a continuity choice. >> it is. as you say, he has been the deputy governor for a decade, foris worked beneath him that period. he has been with the central bank since 1997. it is an interesting time to take over because the pboc is now in a stronger position as an institution. it is powers now to change and write regulations for the financial sector, but in many ways, it has lost some of betsy clouds because -- some of its clout because it will now have to report to the chief economic advisor who speaks directly to the president. so, less autonomy than the central bank even had previously. ♪ >> telecom titans, taking washington. you have ceos from at&t

tencent music is also considering a dual listing.k exchanges are to do everything they can to attract these companies and gain and become the global leaders here. hong kong has fallen far behind new york in terms of attracting these companies and they want to get ahead. emily: peter, do have any thoughts or inklings as to how the potential listings could play out this year? peter: it is interesting. .he big prize will be xiaomi they are leaning towards hong kong as the primary listing. if they list in mainland china, they would tap into the consumer demand to give customers of shopping -- showing -- shall xiaomi this year. if they do list in mainland china, it gives them an opportunity to buy into the shares that could help the valuation quite a bit. it will be interesting to see how that one plays out in particular. emily thanks to bloomberg's : peter and selena. still ahead, we sit down with diane greene. and a reminder that all episodes , of bloomberg technology are now live streaming on twitter. this is bloomberg. ♪ ♪ retail. und

david: tencent coming out this week. new zealand is the first one up and running.hen you look at futures in australia, we are getting that opening number. let's wait for the market to get warmed up. we are looking at the slightly more reasonable bid coming through the market. 2.7% is the pricing surrounding 10 year bonds in japan. australia might be different. politics still very much in play. support for shinzo abe's support is dropping. that is according to the newspaper. there are lots of things to consider. we will get a mixed start to markets here in the asia-pacific. ramy inocencio has your first word news. trump hasident donald launched is most correct attack on the justice department investigation into alleged russian meddling in the 2016 election. name for theer's first time, saying the probe should never have been started, and uses capital letters to call the investigation in which hunt. he also attacked former deputy director john mccain, who was fired on friday. a fourth putin has won term with more than 75% of the vote. that keeps them in the kremlin u

tencent is about 18%. on the way up, it is all fine.n the market sells off like a date in february, just a 3% move and tencent can wipe out some a points from the msci china. it is volatile when you compared to the small-cap index. this is important. rishaad: let's bring up the chart and have a look. this tells us about the volatility versus the small caps. >> looking at this chart, what we have here is the 30-day volatility -- historical volatility, the ratio between the small-cap index and the large-cap index. importantly, this is just offshore stuff. we are not looking at the domestic a share market. we see the race show. it is startling going back to 2007. it is the case that small caps are on average less volatile than large caps, 25%. you can see the average on, the green line shows the average ratio going back more than a decade. it's not a new phenomenon. is not something that is just happening now. to attentiont because it is not the case elsewhere in the world. rishaad: yes. i suppose it is one of these things where you look a

goldman sachs feeling optimistic about tencent raising its price target by 22% before tencent reports results on wednesday, but take a look at the damage report. snapping sliding .6%, a two-day advance. the likes of tsmc leading losses februarydex ahead of exports this afternoon. experts for taiwan expected to rise 3.5% compared to the 20% growth that we got in january. in the region, samsung. that is the biggest drag among tech shares. reductions for earnings estimates for the kospi in 2018, so the question is if the latest user in apple will have an earnings impact. that is years away, and apple will likely seek to outsource reduction anyhow to minimize hurting its bottom line. that is the lay of the land so far today. mpc wrapsocus as the up, and we are getting firmer's of discontent from the g20 gathering. the most contentious issue ahead of trump's tariffs taking effect on friday, and although jay powell is not in attendance, his presence is being felt as policy for the impact of higher u.s. borrowing costs. rishaad: that could be discerning to sterling. having its biggest gain i

this business owns around one third of tencent.cebook, this on the back of the live interview with mark zuckerberg yesterday, the stock .s trading down by 1.7% interesting times for mr. zuckerberg. michael: yes, it is indeed. let's get back to our top stories, jerome powell's dovish debut. rates as expected and maintained a projection for two more hikes this year, but investor attention shifting to another story in washington, hitident trump's plan to beijing with $50 million in tariffs. we are joined by kevin cirilli and and the current. -- enda curran. the question is not what trump's will do, it is what china will do in response. what are you hearing from the chinese? enda: that is the big question. they have been subdued and their response to mr. trump as he ratcheted up the trade tensions. in truth, we do not quite know how they are going to respond. we know a probe going to one of the agricultural imports from the u.s., sorghum, they have made noise, but a critical question is will they try to defuse these by giving the u.s.

goldman sachs updating its target on tencent by 22%.hat is giving the stock a little bit of a boost for the last part of trade. also seeing a surge come through in chinese health care players listed in hong kong. the gauge having its best gain and [inaudible] years. and also some upside in stocks in india. this is on the fact that a lot of investors are starting to bet the returns they are getting from the indian market which has been trading toward record highs is going to be better than any tax on equity gains they make that will be put into effect when the tax changes come into law on april 1. matt: thanks rematch, juliette saly in singapore with your news and markets. the chairman of saudi arabia's kingdom holding, the first .nterview erik schatzker started by asking him about the secret deal he struck to end his incarceration after 83 days. erik: why were you in the ritz-carlton for so long? guest: you have to ask the government. i do not believe i along their it all. imagelways in negative but not all the time. sometimes they list

and tencent revenue jumps, but

we were talking about the tencent earnings.erhaps is more related three threat in the other parts the world. less of a there is regulatory threat in other parts of the world. julian: as you had this selloff in aj makes them maybe a little bit more attractive. you have these giants that are considered unassailable but a lot of the asian companies have been holding off competing with them because of the anti-chinese rhetoric coming out of washington. at one point, maybe very long-term, it's a good turn -- time to buy. that could be a very interesting opportunity. nejra: we don't yet know exactly how gdp are the absence of that in the you could affect tech stocks globally. the trade story, does oppose any concern around tech specific when the u.s.? julian: the intellectual property issue and the blocking of the deal between qualcomm and broadcom though they are singaporean resin chinese, that summing to bear in mind. when interest me is the fact that asian tech is looking for percent cheaper today than it was yesterday. that could

tencent has been aggressive investing in startups in the united states.y question if the trade restrictions kid imposed, but that has been beneficial for them and you could continue to see them expand. we will see ipos from these startups in the future, and that will benefit the big guys financially. , the hottrade tariffs topic everywhere, not least among executives at the geneva motor show. chrysler saying that he is confident rational players will prevent a trade war. gettingt think we are emotional to perhaps something that has not been understood or articulated very well out of the u.s. administration. the only point president trump making is that he thinks a number of commercial relationships that have been dell of -- then developed over the past few years don't provide the right of for protection for u.s. interests. he has raised this issue. you can make whatever you want on the way he raised it, but there is a concern there. retaliating with a tit-for-tat strategy will not calm the issue. down with the sit u.s. administration and find a way out of

is selling its stake in ubisoft for around $2.5 billion to investors, including chinese tech titan tencentential takeover battle for the french video games maker. billionaire vincent bollore's vivendi, which had been raising its holding in ubisoft, has agreed to sell its 27.3% stake in the company. tesla shareholders have approved a $2.6 billion pay deal for boss elon musk — believed to be the biggest share—based deal in us corporate history. mr musk will only get the shares if the electric car—maker hits certain targets, including sales and share price. that is what you call an incentive pay scheme eggs! pay scheme —— that is what you call an incentive pay scheme —— pay scheme! let's turn to europe now where eu leaders are set to gather on thursday for a summit at which they are expected to approve the terms of a transition deal with the uk after brexit. the eu's donald tusk said on wednesday he had recommended a draft legal text on transition, citizens‘ rights and other withdrawal issues to its members. it followed spanish concerns over how the accord would affect its demands for a say o

tencent slighting 2.8% to this morning.arget to 520 hong kong dollars on a slower forecast for pc gaming revenue growth. let's switch it out to check in on the gainers in hong kong. jumping theperty most since april 2016 on news its rental income might be lifted based on plans to renovate its malls for 40 million hong kong dollars. let's check in on tesla suppliers in china, including two after tesla shares plunged on mounting doubts it will reach its production targets for the model three. regulators are conducting a second investigation into the tesla car crash. a mixed bag when it comes to tesla-related shares on the mainland. , maybe this could be a boon for. -- for the carmaker. byd not reflecting that. sophie: profits taking a beating, reporting a 20% in annual profit. let's check in on the share price as we saw declining demand for gas glovers amid -- gas guzzlers amid the ship to ev's. the shift in shenzhen by the daily limit. its first-quarter net income will fall to 92% from a year earlier, citing decreased govern